Sustainability

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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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.

Stewardship and Engagement Policy

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2023 Stewardship and Engagement Annual Report

As signatories of the UK’s Stewardship Code

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Engagement Activity
Summaries

Voting Activity Summaries

Engagement Activity
Summaries

Voting Activity Summaries

ESG Investment Framework

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.

ESG Investment Framework

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.

2024 TCFD Report

J Stern & Co. considers the principal adverse impacts (PAI) of our investment decisions on sustainability factors.

PAI statement

You can view our PAI statement which describes how we integrate these in our investment process for the year 2024 below.