Sustainability is integrated within our fundamental research process and applied consistently across all stages of investment evaluation, selection, and ownership.
Our proprietary ESG framework supports disciplined analysis and ongoing engagement with portfolio companies on material issues that may affect long-term shareholder value. This ESG lens is a core part of our research approach—helping us identify material risks and assess their potential impact on business performance and investment outcomes.
It also helps uncover opportunities where positive ESG dynamics can drive long-term growth. In doing so, it supports better-informed decisions and helps reduce risk for our clients.
UN Sustainable Development Goals
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UN Principles for Responsible Investment
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Sustainable Finance Disclosure Regulation (SFDR)
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UN Sustainable Development Goals
We reference the United Nations Sustainable Development Goals (UN SDGs) as a globally recognised framework for assessing how companies contribute to long-term sustainable outcomes. These principles guide our analysis of ESG risks and opportunities and help inform our approach to responsible investment. We consider whether portfolio companies are aligned with, or advancing progress toward, these objectives as part of our engagement process.
UN Principles for Responsible Investment
We are signatories to the UN Principles for Responsible Investment (UN PRI), reflecting our commitment to integrating ESG factors into investment decision-making and ownership practices. In line with this framework, we engage actively and collaboratively with companies and stakeholders to encourage transparency, accountability, and value-enhancing outcomes.
Sustainable Finance Disclosure Regulation (SFDR)
Our World Stars Global Equity Fund, Emerging Market Debt Stars Fund and US Stars Equity Fund are classified as Article 8 Funds under the EU Sustainable Finance Disclosure Regulation (SFDR), recognising its promotion of environmental and social characteristics. We have incorporated sustainability considerations into our investment process since the strategy’s inception and continue to enhance our framework in line with regulatory standards and investor expectations.
Stewardship
We view Stewardship as a core responsibility of long-term investment.
As active owners, we invest directly in companies based on fundamentals, quality, and sustainability — and hold those companies to account over multi-year time horizons.
Our role as stewards is grounded in rigorous research, disciplined engagement, and a focus on absolute performance. We prioritise direct ownership, avoid unnecessary complexity, and maintain clear alignment with our clients by investing with transparency and without the use of leverage, short selling, or derivatives.
We engage with management teams to support long-term value creation and assess business resilience, competitive strength, and governance. Where necessary, we escalate concerns to ensure our clients’ capital is both protected and positioned for sustainable growth.
We established our ESG Investment Framework in 2019
The framework sets out our approach to integrating responsible investment principles into our investment process, ensuring that ESG factors are considered in our decision-making process. As of December 2024, the framework covered 99% of J. Stern & Co.’s AUM.
Our 2024 TCFD Report details how our firm integrates climate-related risks and opportunities in its governance, strategy and risk management practices, and outlines key metrics related to our investee companies’ carbon footprint and progress towards net zero.