RESPONSIBLE INVESTING

Responsible investing analyses important aspects of environmental,
social and governance (ESG) issues to assess future financial performance

COMMITMENT TO RESPONSIBLE INVESTING

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 more informed investment decisions on behalf of our clients.”

Responsible Investing at Franklin Templeton

PHILOSOPHY, PROCESS AND CAPABILITIES

“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.”

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.


Who’s Responsible for Incorporating ESG?


Investment Professionals

include ESG considerations in research and stewardship activities

Risk Professionals

incorporate ESG in portfolio risk models and analytics

Dedicated Team of ESG Specialists

provide independent analysis, insights and education

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 organisations 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 organisations, 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.

Diverse Range of Investment Capabilities – Aligned to Client Objectives

VALUES-DRIVEN

Including or excluding certain investments to meet specific criteria to suit clients' beliefs, such as religious or ethical values.

ESG TILTED

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

THEMATIC

Targeting issuers 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.

COLLABORATING WITH OTHERS

Our commitment to Responsible Investment is supported by collaborating with organisations that promote and establish best practice.

Industry Recognition

Franklin Resources has been a signatory of the Principles for Responsible Investment (PRI) since April 2013, ranking ahead of the peer median score in all categories in 2019.

PRI Report Card1

  • Franklin Templeton 2019
  • Peer average 2019

Corporate Citizenship Guides How We Work

Corporate citizenship and ESG considerations are embedded in our corporate values. This helps to both positively position Franklin Templeton for the future and help protect our clients. We take our fiduciary responsibility seriously and this underpins everything we do as a firm.


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