Franklin Templeton
Sustainable Investing and Stewardship
At the heart of it, sustainability means meeting our generation's needs without compromising the ability of future generations to meet theirs. It's a lens we apply to our investment thinking to create repeatable risk-adjusted returns for millions of clients around the world, consistent with their long-term goals.
Beyond ESG
Finance is at the center of our approach
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.
Distinct Approaches
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.
Depth of Expertise
We harness a unique range of insights across asset classes and investment teams and supplement it with data, regulatory, training, and stewardship resources.
Dedicated to Solutions
We offer a full range of investment solutions to suit diverse client needs and preferences for various sustainability factors.
Global Scale and Resources
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.
Key Themes
Our key themes align with the United Nations Sustainable Development Goals and Targets for 2030: People, Planet, and Prosperity.
Sustainability of Human Capital
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.
Sustainability of Natural Capital
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.
Sustainability of Financial Capital
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.