ESG integration in our investment group


Investment-relevant and material issues

Our commitment to clients is the foundation of all we do. Our ESG and sustainable investing strategies aim to provide long-term value through investment analysis and portfolio construction.

We believe that certain ESG issues are relevant and material to long-term business fundamentals and security values, and important to all investors. We integrate ESG considerations in our research across asset classes, noting that investment-relevant issues vary by sector, geography, asset class, and issuer context. Research that is tailored to these different settings has potential to add meaningful value.

"Thoughtful ESG analysis is part of thoughtful investing."

– Katherine Collins, Head of Sustainable Investing at Putnam

Engaged ownership, thought leadership, and collaboration

We recognize the field of sustainable investing is actively growing and evolving, and each organization in this community has an opportunity to contribute to the field's advancement. We are helping to advance the field. All engagement activity is undertaken with the goal of benefiting our clients and shareholders through long-term financial performance.

Engagement through our investment process

We believe that active managers have a particular role to play in engaging with company management teams, since our fundamental research process involves regular dialogue regarding corporate strategy and execution. As part of our investment process, engagement with companies and issuers spans a wide range of topics, including long-term strategy, capital allocation, and financially material ESG issues. This type of engagement is an integral part of our fundamental research process. It reflects our belief that the value we aim to provide for clients is linked to thorough research and understanding of long-term business fundamentals.

Read our Engagement and Stewardship Report (PDF)

Proxy voting

Proxy voting is a cornerstone of strong governance and effective engagement. At Putnam, the proxy guidelines and the voting process for our mutual funds are led and controlled by the independent Trustees of The Putnam Funds. For our institutional investment management clients and exchange-traded funds (ETFs), the same functions are managed by our internal Proxy Committee and Legal and Compliance Division. These functions are undertaken with the goal of promoting strong corporate governance, while acting in the best interests of our shareholders and clients.

Putnam and the Trustees of The Putnam Funds are committed to managing the Funds in the best interests of shareholders. The Trustees have long been active in voting the Funds' proxies on behalf of Fund shareholders, in the belief that the proxy-voting process is a significant means of addressing crucial corporate governance issues and encouraging corporate actions that enhance shareholder value.

The Putnam Funds have had detailed proxy-voting guidelines in place for many years. Each year, the Board Policy and Nominating Committee of the Board of Trustees reviews the proxy-voting guidelines and considers whether any changes are appropriate, recommending any changes to the guidelines to the Trustees for approval. The Trustees are mindful of emerging best practices in the areas of corporate governance, environmental stewardship and sustainability, and social responsibility. Recognizing that these matters may, in some instances, bear on investment performance, they may from time to time be considerations in the Funds' voting decisions.

Collaboration and partnership

The field of ESG investing is actively growing and evolving, and collaborations are essential to the field's advancement. We partner with a variety of organizations to support areas of critical importance to our clients, the industry, and the broader community. We are advocates for improved and relevant ESG disclosure and the development of thoughtful and effective taxonomies and assessment frameworks. Our partnerships include affiliations with several organizations that support similar goals.

We advance the field of ESG investing through partnerships

Santa Fe Institute:

Applied Complexity Network member since 2020; Katherine Collins, Putnam's Head of Sustainable Investing, serves as board chair

United Nations Principles for Responsible Investment (UN PRI):

Member since 2011, including involvement in UN PRI Global Policy Reference Group

CDP (formerly Carbon Disclosure Project):

Member since 2019; participant in non-disclosure campaign


Member since 2022

Boston Association of Institutional Investors:

Member since 2012; chaired the ESG working group 2018–2020