BEYOND ESG
We frame our approach as “Beyond ESG” because ESG is an acronym that references environmental, social, and governance issues but does not include an “F” for financial returns. By putting financial returns at the center of our model, we reflect the fullest sense of our fiduciary duty to manage investment risks.
Each of our investment teams has the autonomy to evaluate sustainability factors from multiple angles, varied by asset class, sub-asset class, regional focus, or individual mandates.
We harness a unique range of insights across asset classes and investment teams and supplement it with data, regulatory, training, and stewardship resources.
We offer a full range of investment solutions to suit diverse client needs and preferences for various sustainability factors.
While our strength lies in the autonomous investment processes of our individual investment teams, we deploy our global scale and resources to work together on universal sustainability issues to create value for our clients. Learn more about collaboration among our investment teams and within the industry.
Our key themes align with the United Nations Sustainable Development Goals and Targets for 2030: People, Planet, and Prosperity.
Human Capital is the knowledge, skills, and other characteristics embodied in people, communities, and countries — a critical ingredient in productivity and economic growth. As investors, we consider the opportunities afforded by diversity, equity and inclusion, health and safety, product safety and quality. We also consider how pandemic-related disruptions have had a dramatic effect on issues such as supply chain labor and access to healthcare.
We believe sustainability of Natural Capital — our resources and our climate — is vital to economies, markets, and therefore, our clients’ portfolios. Rising temperatures and sea levels, along with increased incidence of extreme weather events, pose a threat to the global economy. Biodiversity, public food supply, water scarcity, and surging demand for energy are just a few of the Natural Capital themes affecting investors today.
Financial Capital is the investment that companies need to grow and is conventionally considered to be the management of traditional investment risks, but in order to create long-term value, we believe that the risks to Human Capital and Natural Capital go hand in hand with Financial Capital. Data privacy and security, corporate governance, and business ethics are some of the Financial Capital themes affecting investors today.
Interested in sustainable investing? Browse this selection of products managed by our investment teams.
A nimble, all-weather global fixed income strategy that seeks attractive income generation and total return while guarding against downside risks.
A true differentiator for income-seeking investors
Long-term capital appreciation by investing primarily in equity securities of sustainable issuers outside Canada and the United States.
Franklin Templeton has certain environmental, social and governance (ESG) capabilities; however, not all strategies and funds consider “ESG” as part of their investment process. Franklin Templeton Canada offers certain mutual funds and exchange-traded-funds (ETFs) with ESG objectives and/or strategies. Please consult the Franklin Templeton mutual funds’ and Franklin ETFs’ prospectus for more details on the mutual funds and/or ETFs that have ESG objectives and/or strategies and which ESG strategies they use.
This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. It does not constitute legal or tax advice. The views expressed are those of the investment manager and the comments, opinions and analyses are rendered as at publication date and may change without notice. Franklin Templeton has certain environmental, social and governance (ESG) goals or capabilities; however, not all strategies are managed to “ESG” oriented objectives. Integrating ESG considerations into the investment process is not a guarantee that better performance will be achieved. All investments involve risks, including possible loss of principal. Data from third party sources may have been used in the preparation of this material and Franklin Templeton has not independently verified, validated or audited such data. Franklin Templeton accepts no liability whatsoever for any loss arising from use of this information and reliance upon the comments, opinions and analyses in the material is at the sole discretion of the user.
