Sustainable Investing | Stories of impact
- Our research uncovers companies that are creating products or services that can change the world for the better.
- Our investing focuses on positive social and environmental impact that is linked to positive financial performance.
- Our analysis involves partnership with external data providers, academic researchers, and governmental and nongovernmental organizations.
One of the most rewarding aspects of investment research and management is the potential to identify companies that are improving our world in a tangible and meaningful way. Often, the same elements that create environmental and social benefits are driving positive financial performance, whether in the form of innovative products, more efficient operations, or improved well-being for employees and community members.
Our success in this endeavor requires partnership and connection. Our research process involves collaboration with colleagues at Putnam, at other research and investment firms, and at the companies in which we invest.
Our analysis involves partnership with external data providers, academic researchers, and governmental and nongovernmental organizations. For example, we consider the United Nations Sustainable Development Goals (SDGs) in our research and analysis. Sustainable development describes an approach to economic activity that seeks to avoid degrading or depleting resources that can contribute to future growth.
SDGs: Addressing the world’s most vital opportunities
The UN SDGs are a set of global priorities developed by countries, nongovernmental organizations, businesses, scientific communities, and other stakeholders from around the world. The SDGs are a mandate to address the eminent challenges and opportunities facing our world. As the most comprehensive global map for sustainable development, the SDGs provide an important framework for assessing business and investor contributions to social and environmental impact.
The SDGs are organized as discrete goals, but they are intentionally interconnected. Per the United Nations, the SDGs “recognize that ending poverty must go hand-in-hand with strategies that build economic growth and address a range of social needs including education, health, social protection, and job opportunities, while tackling climate change and environmental protection.”
Providing a global blueprint for dignity, peace, and prosperity
The 17 SDGs are at the heart of the 2030 Agenda for Sustainable Development, which was adopted by all United Nations Member States in 2015. These goals “provide a global blueprint for dignity, peace, and prosperity for people and the planet, now and into the future.”
For investors, the SDGs are a useful way to organize planning, action, and analysis. This framework can also lead us to ask different and better questions. Not all food products contribute to the goal of ending hunger and improving nutrition, for example. And some companies can contribute the most by assessing how they operate, as opposed to what they produce, for example, by improving gender equity within their workforce or improving sustainable production techniques. At Putnam, our research-intensive investment process will help us to develop thoughtful impact assessments over time.
Learn more about our sustainable investing approach
Putnam offers two funds that are rooted in the recognition that strong sustainability performance often coincides with strong financial performance over the long term.
Learn more about the funds and our sustainable investing approach at putnam.com.
For informational purposes only. Not an investment recommendation.
This material is provided for limited purposes. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument, or any Putnam product or strategy. References to specific asset classes and financial markets are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations or investment advice. The opinions expressed in this article represent the current, good-faith views of the author(s) at the time of publication. The views are provided for informational purposes only and are subject to change. This material does not take into account any investor’s particular investment objectives, strategies, tax status, or investment horizon. Investors should consult a financial advisor for advice suited to their individual financial needs. Putnam Investments cannot guarantee the accuracy or completeness of any statements or data contained in the article. Predictions, opinions, and other information contained in this article are subject to change. Any forward-looking statements speak only as of the date they are made, and Putnam assumes no duty to update them. Forward-looking statements are subject to numerous assumptions, risks, and uncertainties. Actual results could differ materially from those anticipated. Past performance is not a guarantee of future results. As with any investment, there is a potential for profit as well as the possibility of loss.
Diversification does not guarantee a profit or ensure against loss. It is possible to lose money in a diversified portfolio.
Consider these risks before investing: International investing involves certain risks, such as currency fluctuations, economic instability, and political developments. Investments in small and/or midsize companies increase the risk of greater price fluctuations. Bond investments are subject to interest-rate risk, which means the prices of the fund’s bond investments are likely to fall if interest rates rise. Bond investments also are subject to credit risk, which is the risk that the issuer of the bond may default on payment of interest or principal. Interest-rate risk is generally greater for longer-term bonds, and credit risk is generally greater for below-investment-grade bonds, which may be considered speculative. Unlike bonds, funds that invest in bonds have ongoing fees and expenses. Lower-rated bonds may offer higher yields in return for more risk. Funds that invest in government securities are not guaranteed. Mortgage-backed securities are subject to prepayment risk. Commodities involve the risks of changes in market, political, regulatory, and natural conditions. You can lose money by investing in a mutual fund.
Putnam Retail Management.