Putnam Investments is pleased to share our 2023 Sustainability and impact report published by Putnam's Sustainable Equity team. This is our fifth annual assessment of sustainability impact for the Putnam Sustainable Leaders Fund and Putnam Sustainable Future Fund.
Against the backdrop of the funds' goal of long-term capital appreciation, we aim to generate excellent financial performance that is fueled in part by the strategic sustainability focus of the companies in which we invest. We believe these characteristics can be mutually reinforcing, and that business-relevant sustainability leadership and solutions-focused innovation often also create compelling investment opportunities.
As active managers, we have the opportunity for direct dialogue, ongoing engagement, and improved understanding of the companies in which we invest. Beyond the figures on our spreadsheets, we continue to be encouraged by the candor, humility, courage, and humanity of our conversations with colleagues, clients, and corporate management teams over this past year.
Within our Sustainability and impact report, you will find:- A description of our investment process and our constructive engagement with the companies we own.
- An analysis of our portfolios and examples of certain ESG metrics and data that we use to inform our research process.
- A description of our investment themes and related company examples, and how this research translates to a more complete investment understanding. This year, we comment on management incentive pay trends and their value to fundamental research.
You can use the report to deepen your familiarity with sustainable investing and its potential benefits, as we research and invest in companies that thrive by improving our world.
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.
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