RESPONSIBLE INVESTING

Greater Investment Insights

Responsible investing refers to an overarching approach that analyzes important aspects of environmental, social and governance (ESG) issues when investing to help assess future financial performance. The integration of ESG factors into the investment process fits under this umbrella term and is applicable across the entire suite of strategies at Franklin Templeton.

DELIVERING BETTER OUTCOMES

We integrate ESG considerations such as natural resource use and scarcity, corporate diversity, community relations and data security into our investment management processes — to assess investment risks and opportunities.

We believe this helps us to deliver better outcomes for our clients. Watch our short video to find out more.


MANAGING RISKS & IDENTIFYING OPPORTUNITIES

ESG analysis is not just about identifying and measuring risk, it is also about identifying investment opportunities. We consider ESG factors alongside traditional financial measurements to provide a comprehensive view of an investment and help identify those investments that have the potential to deliver sustainable returns.

“Understanding the economic impact from material ESG considerations helps us to make fully informed investment decisions on behalf of our clients.”

ESG: A KEY COMPONENT TO INVESTMENT KNOWLEDGE

Integrating ESG Best Practice

We embed ESG best practices and analytics in our investment processes, enhancing our traditional financial analysis – to open new investment opportunities, help manage risk and seek to enhance returns over the long term.


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  • Partnering with our team of ESG and risk management specialists, each investment group develops a framework to analyze ESG factors that are appropriate to their unique investment style and incorporates this framework into their research.

  • Utilizing cutting edge tools and combining traditional investment measures alongside ESG factors, potential investments are analyzed for their ability to deliver sustainable returns. Ongoing reviews with independent ESG and risk specialists ensure ESG insights are incorporated into investment decisions.


  • To ensure ESG analysis remains a key consideration, our ESG Investment Committee and asset-class working groups meet regularly to ensure best practice is shared and integrated in a way that still allows investment groups to innovate and incorporate ESG factors into their processes appropriately. Ongoing Risk & ESG assessments form part of the regular portfolio review process.


Who’s Responsible for Incorporating ESG?


Investment Professionals

Investment professionals around the world, tasked with including ESG considerations into research and stewardship activities

Risk Professionals

Independent risk professionals incorporating ESG in portfolio risk models and analytics

+ Dedicated Team of ESG Specialists

Dedicated Team of ESG Specialists, providing independent ESG analysis, insights & education

“Our embedded ESG approach is led by our portfolio teams, who work in partnership with a team of ESG specialists to integrate ESG considerations across our global platform.”

ACTIVE OWNERSHIP – PROTECTING AND UNLOCKING VALUE

Diligent stewardship helps us to safeguard clients’ investments and unlock value. Our portfolio managers and analysts engage with executives and board members of the organizations we invest in to review issues we believe are material to their firms’ long-term prospects.

We also meet and collaborate with industry bodies, non-governmental organizations, academics and other specialists that could provide valuable insights.

We take our proxy voting responsibility seriously and are committed to voting in the best interests of our clients.

CATERING TO CLIENTS’ NEEDS

We offer a diverse range of investment solutions aligned to the investment objectives of our clients.

INTEGRATED ANALYSIS
OF ENVIRONMENTAL, SOCIAL, GOVERNANCE (ESG) FACTORS

VALUES-DRIVEN

Excluding certain investments based on ethical or religious values.

ESG TILTED

Positioning towards companies with leading ESG practices or actively engaging with underperformers by these standards.

THEMATIC

Targeting companies that address social/environmental challenges via their products and services.

IMPACT FOCUSED

Investing with the explicit intention to generate positive and measurable social and environmental outcomes.

INDUSTRY RECOGNITION

Franklin Resources has been a signatory of the PRI since April 2013, ranking ahead of the peer median score in all categories in 2018.

PRI Grades1

Industry Awards

“Outstanding Achiever” award from Benchmark magazine in 2018 for the FTIF Templeton Global Climate Change Fund in the “Best in Risk Exposure” category.

“Highly Commended” award from Savvy Investor magazine for “Best Real Assets Paper 2018” titled, “Social Infrastructure in Europe: Private Investment Opportunities” by Franklin Real Assets Advisors

OUR RESPONSIBLE INVESTING COMMITMENTS

Our commitment to Responsible Investment is supported by collaborating with organizations that promote and establish best practice at an industry level. This includes the organizations listed below:


CORPORATE CITIZENSHIP GUIDES HOW WE WORK

Corporate citizenship is embedded in our corporate values and drives how we work and act.


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ESG RESOURCES & POLICIES

Learn more about our responsible investment approach and relevant guidelines adopted in various jurisdictions worldwide.



Franklin Templeton Responsible Investing Policy


Franklin Templeton Controversial Weapons Policy


Franklin Templeton PRI Transparency Report


RESPONSIBLE INVESTING AT FRANKLIN TEMPLETON

Responsible Investing For Better Client Outcomes

Our approach to responsible investing.

 

Responsible Investment Policy

Responsible investing incorporates environmental, social and governance (ESG) factors.

INSIGHTS

Global Macro Shifts

Environmental. Social and Governance Factors in Global Macro Investing with Michael Hasenstab, Ph.D.