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 website.
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 45.
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 44 of the Annual Report);
- JTC Gateway – our global talent mobility programme (read more on page 44 of the Annual Report); and
- JTC Wellbeing – our employee wellness (physical and mental good health) programme (read more on page 44 of the Annual Report).
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 2019 was 9.7%. 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 27 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 Company 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. Read more on pages 45 – 47 of the Annual Report.
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
As a financial services firm our environmental impact is relatively small compared with other industries, but we recognise the importance of playing our part in transitioning to a low-carbon economy. None of the Company’s operations produce carbon emissions directly (Scope 1). However, we recognise that our operations produce carbon emissions indirectly (Scope 2 and 3 activities). We are committed to minimising any 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;
- 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;
- 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
We recognise that there are long-term risks and opportunities for JTC associated with climate change and the transition to a low-carbon economy. 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.
We are working to better measure our Scope 2 and 3 carbon emissions so that we can actively reduce them as far as possible and also seek to find ways to responsibly offset those emissions that we cannot currently eliminate from our operations. As part of this work we are exploring the requirements to achieve certain relevant environmental standards such as ISO 14001 and ESI Monitor.
In addition, we are actively examining a number of frameworks and standards as they might relate to our business and stakeholders, these include the UN’s Sustainable Development Goals (SDGs) and reporting frameworks developed by the Task Force on Climate-related Financial Disclosures (TCFD) and the Sustainability Accounting Standards Board (SASB).
NES Financial (NESF), which was acquired post period end, has expertise and technology 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 Principals’ that are intended to clearly define the Company’s cultural values and in turn drive ethical behaviours throughout the organisation. Read more on pages 6, 41 and 50 of the Annual Report.
BOARD COMPOSITION AND EFFECTIVENESS
Full details are provided on pages 54 – 65 of the Annual Report.
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 60 – 63 of the Annual Report.
Full details are provided in the report of the Remuneration Committee on pages 74 – 85 of the Annual Report.
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 2019 c. 23% of the issued share capital of the Group was owned by employees, either directly or through the JTC EBTs.
JTC’s shared ownership model also 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 pages 50 – 51 of the annual Report.
AUDIT & RISK, INCLUDING ETHICS RISKS
Full details are provided in the report of the Audit & Risk Committee on pages 70 – 73 and the Risk Management section of the Strategic Report on pages 28 to 35 of the Annual Report.
DATA MANAGEMENT AND SECURITY
JTC operates a robust framework and control environment with regards to data management and security, which governs its systems, processes and people.
JTC has defined policies in several related areas, details of which are provided in the Employee Handbook.
- Disclosure of client and Group information
- Data protection
- Intellectual property and ownership
- Information Technology
- Use of personal mobile communications devices
- Use of social media
- Clear desk policy
- Physical office security and access
The JTC privacy notice is publicly available on our website.
Data accuracy is ensured through a combination of:
- The hiring and promotion of experienced and qualified professionals into relevant roles within the business
- Ongoing training and performance management
- Well-defined and proven business processes
- Least privilege access model for systems
- Reporting and remediation protocols
- System (IT) design