Sustainable Investing

Investing in companies improving our world

What is sustainable investing?

Sustainable investing aims to identify companies that offer potential for strong financial returns, sustainable business practices, and positive impact.

Sustainable Leaders Fund (PNOYX)

This fund received a Overall Morningstar Rating out of 1,232 funds in the Large Growth category based on total return as of 10/31/19

Sustainable Future Fund (PMVYX)

Investing in growing companies solving sustainability challenges

PMVYX pursues a growth investment style, and its benchmark is the Russell MidCap Growth Index.

About our sustainable funds

Sustainable investing aims to identify companies that are thriving by producing beneficial products in a responsible way. Learn more.

Sustainable investing is flourishing

Read our sustainability and impact report

In this inaugural assessment, the Sustainable Investing team provides multidimensional views of our portfolios’ sustainability metrics and social and environmental impact, including examples of portfolio holdings.

Dive into key metrics from our impact report

Portfolio ESG rankings vs. peers

Many investors want to see a snapshot view that shows a portfolio’s aggregate ESG ratings or rankings, and many value the independence of an assessment that is based on third-party data.

Carbon intensity

Carbon dioxide and other greenhouse gases (GHG) trap thermal radiation from the earth’s surface, sustaining natural life.

Women on boards of directors

Our portfolios do have a higher-than-market representation of companies where women comprise 30% or more of total board membership.

Investment team and research

Katherine Collins, CFA, MTS, Head of Sustainable Investing

Experienced as an equity analyst, portfolio manager, and head of research at Fidelity, Katherine founded and led Honeybee Capital, a sustainable research firm, before joining Putnam in 2017.

Katherine Collins, CFA Head of Sustainable Investing
Shep Perkins, CFA, Chief Investment Officer, Equities

As CIO of Equities, Shep is responsible for providing strategic direction to Putnam’s portfolio managers and equity analysts. He joined Putnam in 2011 and is Portfolio Manager of Putnam Sustainable Leaders Fund as well as Putnam Global Equity Fund.

Shep Perkins, CFA, Co-Head of Equities
Stephanie Dobson, Portfolio Manager, Analyst

Stephanie brings together experience in interpreting and applying ESG data with skills in fundamental analysis and valuation of companies.

Stephanie Dobson, Analyst
Alexander Rickson, CFA, Quantitative Analyst

Alex provides skills both in the interpretation of ESG data and its application to the processes of risk management and portfolio construction.

Alexander Rickson, CFA, Quantitative Analyst
Latest perspective:
Linking impact and performance

Linking impact and performance

Often, the same elements that create environmental and social benefits are driving positive financial performance.

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The Morningstar Rating™ for funds, or "star rating," is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and ten-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36 to 59 months of total returns, 60% five-year rating/40% three-year rating for 60 to 119 months of total returns, and 50% ten-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the ten-year overall star rating formula seems to give the most weight to the ten-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account the effects of sales charges and loads.