COMPONENTS OF OUR FRAMEWORK
The foundation of JTC’s culture is ‘shared ownership’ and this has been in place for over 20 years and is a key differentiator in attracting and retaining talent. Further details can be found in our IPO prospectus (pp37, 38, 51, 54, 114) and our 2018 Annual Report (pp11, 16, 17, 35 – 43).
In addition, the JTC shared ownership ‘story’ has recently been made the subject of a Harvard Business School (HBS) case study.
EMPLOYEE ENGAGEMENT | RECRUITMENT | EMPLOYEE COMMUNICATIONS | JTC ACADEMY | JTC GATEWAY | JTC WELLBEING
We understand that our people are a fundamental source of differentiation and employee engagement is afforded the highest priority within the Group.
Finding and attracting the best talent is managed through a structured approach to recruitment on a global basis through a strategic Human Resources team that is headquartered in Jersey, but has representatives in other JTC offices globally. This includes a dedicated role of Recruitment Manager. JTC conducts regular benchmarking of remuneration and benefits packages globally, in order to remain competitive within the labour markets where it operates. An overview of our approach can be found on the ‘Careers’ section of our
We use a wide variety of employee communication methods to share information about the business and the markets in which we operate. This includes communication of the Group’s purpose, cultural values, commercial goals and strategies, performance updates and market news. Read more on page 43 of our 2020 Annual Report.
JTC operates three specific global programmes as part of its wider employee engagement strategy and in support of both recruitment and retention goals. These are:
- JTC Academy – our global learning and development programme Read more on page 42;
- JTC Gateway – our global talent mobility programme Read more on page 42; and
- JTC Wellbeing – our employee wellness (physical and mental good health) programme Read more on page 42.
With the exception of JTC Gateway, which was necessarily curtailed due to global travel restrictions, all of these strategies and programmes were more valuable than ever during 2020 as our workforce transitioned rapidly to remote working in response to Covid-19. We are incredibly proud of the team spirit demonstrated by our colleagues around the world and the incredible output of our operations teams, in particular IT, HR and Marketing, in supporting our people.
EMPLOYEE TURNOVER RATE
Our employee turnover rate is one of eight key performance indicators (KPIs) used by the Board to measure the performance of the Group. We define staff turnover as the number of staff who leave each year that we did not want to leave and we target 10% or less per year. Staff turnover is important because we deliver a high touch service to clients and maintaining continuity of staff helps to ensure that we are able to meet client needs. Staff retention is also important for our meritocratic internal talent development programmes and succession planning. Staff turnover in 2020 was 5.7% (2019: 9.7%) and this low figure is testament to the secure and engaging employment provided by the Group. It is challenging to find benchmarks for a global business of our type, but we believe that turnover rates in the region of 15 – 20% are more typical. Read more on page 33 & 36 of the Annual Report.
HUMAN RIGHTS, DIVERSITY AND EQUAL OPPORTUNITY
JTC has defined policies covering:
- Modern anti-slavery and human trafficking;
- Equal opportunities;
- Dignity at work; and
- Social media (inappropriate use/content, business and personal).
HEALTH AND SAFETY
JTC has a defined Health and Safety Policy (and numerous related policies) that are detailed in the Employee Handbook and are introduced during a new employee’s induction to the Group as well as being reviewed and revised on a regular basis.
We value and respect the communities in which we operate around the world and understand the support they provide to our employees, clients and intermediary partners. We seek to create a positive impact wherever we operate, creating opportunities for employment and giving back through charitable donations of time, expertise and money.
In 2020 we felt it was more important than ever to give back to local communities and within the bounds of restrictions imposed by the pandemic, we were able to remain highly active, especially in fundraising for a wide range of local charities.
In addition, we were quick to recognise the significance of the pandemic and in April made a donation of £100,000 to three international charities to support their work in fighting Covid-19, these were the WHO Covid-19 Solidarity Response Fund, Médecins Sans Frontières and Comic Relief.
COMPONENTS OF OUR FRAMEWORK
- Carbon emissions
- Energy efficiency
- Waste management
Our strategies in these areas are focused on efforts to reduce energy usage, increase office efficiency and ensure compliance with environmental regulations.
OUR RESPONSE AND CAPABILITIES
We have committed to become a Carbon Neutral organisation by the end of 2021. INDOS, acquired post period end, is a service provider signatory to the UN Principles for Responsible Investment (UNPRI) and a Carbon Footprint Standard accredited Carbon Neutral Organisation. We intend to leverage the experience of INDOS across the wider Group in the near-term.
We are further committed to minimising other types of negative environmental impact wherever practicable and in the best interests of all stakeholders. Such measures include:
- a commitment to energy efficient office premises and measures including those that manage lighting, heating and IT/communications equipment;
- a commitment to digital document management to reduce paper consumption. New working practices and habits in this area have been accelerated by the need to adapt to remote working as part of our response to Covid-19;
- a commitment to minimise all non-essential travel, in particular air travel, and the use of alternative technologies, such as telephone and video conferencing for both internal and external applications. As a result of the pandemic, our use of travel in 2020 was dramatically reduced and our adoption of technology solutions vastly accelerated. While we do not believe it will be possible to alleviate all travel in the future, like many organisations, we have rapidly learnt how to be effective with vastly reduced travel;
- a commitment to minimise the use of disposable/single use plastics, including the Group-wide adoption of glass and ceramic glasses, bottles, cups, plates and bowls for food and beverage consumption; and
- a commitment to purchase all paper stationery from responsible suppliers that are committed to sustainable source materials i.e. those that adhere to the www.fsc.org ‘paper from responsible sources’ and the Rainforest Alliance standards.
- Climate risk
- Natural capital
- ESG integration for clients
OUR RESPONSE AND CAPABILITIES
Our strategies in this area include engagement with our value chain (including investors, clients and suppliers) and providing support to clients as they seek to adapt their own business models to become more sustainable.
As the climate change regulatory environment matures and becomes clearer, we understand the need to manage transition risk for our business and also recognise the service opportunities that will emerge for us to support our clients. We recognise the need for TCFD compliance and in the coming year will be working on preparation steps, including upskilling and governance development.
In addition to the capabilities added to the Group through the acquisition of INDOS, as noted above, the acquisition of NESF in 2020 brought expertise that can be leveraged in impact and socially responsible investing globally. These solutions have been designed for fund managers focused on impact investing and can help clients of our ICS Division globally to emphasise, and improve capital allocation towards and provide transparency of, investment impact and compliance. NESF’s solutions are closely integrated
with Howard W. Buffett, President of Global Impact, professor at Columbia University and creator of the impact rate of return (iRR®) algorithm. When combined with iRR® reporting, NESF technology helps organisations calculate how efficient their financial investments are in terms of accomplishing social, environmental and economic (including job creation) impact goals.
COMPONENTS OF OUR FRAMEWORK
PURPOSE, CULTURE AND ETHICS
JTC’s purpose and culture are based on shared ownership and supported by eight defined ‘Guiding Principles’ that are intended to clearly define the Company’s cultural values and in turn drive ethical behaviours throughout the organisation. Read more on page 40.
BOARD COMPOSITION AND EFFECTIVENESS
Full details are provided on pages 61-67.
Additional relevant detail, including the Terms of Reference of the various PLC Board Committees, are also available on our website.
We engage on an ongoing basis with a wide range of stakeholders, including: clients, employees, investors, intermediaries, regulators, government bodies, industry associations and charities.
Read more on pages 63-65.
Following feedback from investors, the Remuneration Committee conducted an extensive review of our reporting and disclosures on Executive Compensation and appointed Mercer as an expert third party to assist with that process. This has resulted in substantially revised and updated report of the Remuneration Committee, which can be found on pages 76-98.
In addition to executive compensation, JTC’s wider shared ownership culture and programmes are central to aligning the interests of our people with the interests of our stakeholders. As of 31 December 2020 c. 21.5% of the issued share capital of the Group was owned by employees, either directly or through the JTC EBTs.
In 2019 JTC’s shared ownership model became the subject of a Harvard Business School MBA case study.
The Board’s Executive Succession Plan is based on JTC’s shared ownership culture and places particular emphasis on meritocratic succession from within the business. Read more on page 57.
AUDIT & RISK, INCLUDING ETHICS RISKS
Full details are provided in the report of the Audit & Risk Committee on pages 72-75 and the Risk Management section of the Strategic Report on pages 46 to 53.