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Janus Henderson Sus & Imp Cr Bd ETF JIB Sustainability

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Sustainability Analysis

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Sustainability Summary


Janus Henderson Sus& Imp Cr Bd ETF has a number of positive attributes that may appeal to sustainability-focused investors.

This strategy has an above-average Morningstar Sustainability Rating of 4 globes, indicating that the ESG risk of holdings in its portfolio is relatively low compared with those of its peers in the US Fixed Income category. ESG risk provides investors with a signal that reflects to what degree their investments are exposed to risks related to material ESG issues, such as climate change and inequalities, that are not sufficiently managed. ESG risk differs from impact, which is about seeking positive environmental and social outcomes.

Janus Henderson Sus & Imp Cr Bd ETF has a sustainability or ESG-focused mandate. Funds with an ESG-focused mandate are more likely to align with the expectations of an investor who cares about sustainability issues. One key area of strength for Janus Henderson Sus & Imp Cr Bd ETF is its low Morningstar Portfolio Carbon Risk Score of 2.52 and low fossil fuel exposure of 1.25% over the past 12 months, which earns it the Morningstar Low Carbon Designation. Thus, the companies held in the portfolio are in general alignment with the transition to a low-carbon economy.

The fund aims to avoid, or limit exposure to, companies in violation with international norms, such as the UN Global Compact or the Universal Declaration of Human Rights. The fund has little exposure (1.18%) to companies with high or severe controversies. From bribery and corruption to workplace discrimination and environmental incidents, controversies are incidents that may negatively affect stakeholders, the environment, or the company’s operations.

Carbon solutions compose 2.91% of Janus Henderson Sus & Imp Cr Bd Etf's assets. This percentage lags behind its average peer in the Intermediate Core Bond category, whose Carbon Solutions Involvement averages 3.60%. Carbon solutions include products and services related to renewable energy, energy efficiency, green buildings, green transportation, and so on.

By prospectus, the fund aims to avoid, or limit its exposure to, companies associated with controversial weapons, tobacco, thermal coal, and small arms. The fund mostly fulfills this goal; however, it does exhibit 0.51% exposure to companies involved in thermal coal. This compares with 1.58% for its average peer in the US Fixed Income category.

ESG Commitment Level Asset Manager