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Methodology

Our objective is to ensure that the policies and practices of public companies conform to established standards in the field of sustainable investing. Many of these norms are outlined in various international conventions and agreements such as the International Labor Organization (ILO) Principles of Labor and Human Rights, the OECD Business Guidelines, the UN’s Global Compact, the UN’s Principles for Responsible Investment (PRI) and the Enhanced Analytics Initiative (EAI).  

The Assessment Categories

The JMR Portfolio Intelligence research team evaluates companies in seven categories to determine whether they are acceptable for inclusion in a client’s portfolio. These broad categories include:

  • Human Rights
  • Labor Rights & Workplace Practices
  • Geographic Risk
  • Stakeholder Rights
  • Corruption & Litigation
  • Industry Risk
  • External Perceptions 

Assessment Process

The JMR Portfolio Intelligence portfolio monitoring approach consists of three phases. The first step involves analysis of each company contained in the international portfolios of our clients. Our research team performs extensive due diligence on each portfolio company across the seven assessment categories to produce a sub-score for each category in our evaluation methodology.

The second step involves summarizing our findings and weighing each of the seven category sub-scores to produce an overall “A” (compliant), “B” (neutral), or “C” (non-compliant) rating on each company.

The third and final step involves developing an engagement strategy to enhance shareholder value for those portfolio companies we designate as “C” or non-compliant.

Service Highlights

The JMR Portfolio Intelligence portfolio monitoring service includes the following: Global coverage of equities in Europe, the Americas, Asia, Africa, the Middle East, and the Pacific; designated “A” “B” or “C” rating for each company based on a weighted average of risk factors; development of engagement briefs for poorly rated companies for use by institutional investors; strategic consulting and sub-advisory services for clients involving communication with corporate boards and management teams; and cost effective portfolio compliance incorporating many of today’s best practice standards and policies in the field of sustainable investing.