JP Morgan Unveils Fund With Strong ESG Metrics

In a major step toward changing sustainable investing, J.P. Morgan Mansart, the asset management division of J.P. Morgan, has introduced the J.P. Morgan Mansart iCubed Global Equity Select Fund. This new fund aims to provide institutional investors with a strong solution that offers significant improvements in sustainability metrics while keeping a low tracking error to its benchmark.

The fund follows the Solactive iCubed Global Sustainability Index, which has been developed by Solactive and Impact Cubed. This collaboration, along with J.P. Morgan Mansart’s asset management skills, represents a three-way effort to address a long-standing challenge in sustainable investing: the conflict between meaningful environmental, social, and governance (ESG) improvements and the ability to closely follow traditional equity benchmarks. By merging institutional-grade management, data-driven sustainability factors, and independent indexing capabilities, the three firms have created a product designed for long-term investors who want both impact and performance.

The underlying index includes large- and mid-cap stocks from developed markets and sets strict sustainability standards that greatly exceed traditional ESG benchmarks. The index aims for an 80% reduction in Scope 1 and 2 carbon emissions, a 50% reduction in Scope 3 emissions, and a 90% decrease in both water usage and waste generation intensity, all in relation to its parent index. These ambitious goals reflect a growing desire among investors for portfolios that genuinely contribute to climate change mitigation and responsible resource use.

The index’s impact extends beyond environmental performance. It also improves alignment with the United Nations Sustainable Development Goals (SDGs), focusing on how companies can aid or obstruct global progress across various sustainability areas. Enhanced governance indicators, like board independence and gender diversity, are incorporated into the methodology. Additionally, the index applies strict exclusion criteria to remove companies with poor sustainability records, further strengthening its credibility for long-term investors. Weighting methods are used to ensure adequate diversification and limit disproportionate exposure to certain factors, helping reduce unexpected portfolio risks.

What makes this fund unique is its ability to balance sustainability improvements with low active risk—a challenge that many sustainability indices have faced. During the increased market volatility seen in early 2025, the Solactive iCubed index stayed closely aligned with its parent benchmark, something that many existing climate and Paris-Aligned Benchmark (PAB) indices struggled to do.

Timo Pfeiffer, Chief Markets Officer at Solactive, commented on the collaboration, highlighting the strength of the fund’s design. “The strength of this collaboration lies in its balance: institutional-grade fund management from J.P. Morgan Mansart, factor-driven sustainability from Impact Cubed, and independent index expertise from Solactive—all working together to create a product that controls active risk while promoting sustainable equity investing,” he said.

Aston Chan, Chief Investment Officer and Head of Investment Solutions at Impact Cubed, echoed this view, emphasizing the fund’s ability to maintain benchmark alignment during challenging markets. “We have seen that many current sustainability indices do not meet the needs of institutional investors, offering a poor balance between sustainability and tracking error,” Chan said. “The Solactive iCubed index has effectively tracked its parent benchmark even amid the market volatility of early 2025 while climate and PAB indices from major providers fell behind. This confirms our factor-investing approach and strong risk controls.”

The J.P. Morgan Mansart iCubed Global Equity Select Fund aims to be a scalable solution for institutional investors seeking credible, high-impact sustainability strategies without sacrificing performance. It represents a significant step forward in ESG investing—prioritizing real-world sustainability outcomes while focusing on disciplined, performance-oriented portfolio construction. In a market where many so-called sustainable strategies still face criticism for greenwashing or poor performance, this fund provides a more trustworthy path forward.

As the global push for climate responsibility and social governance grows stronger, innovations like this collaboration may establish a new standard for sustainable investing—data-driven, performance-focused, and aligned with both environmental needs and long-term investor interests.