Sustainable Investing | How we collaborate
- In addition to our asset management responsibilities, we aim to contribute to the development of the field of sustainable investing.
- We collaborate with institutions that connect businesses and investors to better understand the financial, social, and environmental impacts of sustainability.
- We also support the field through research and speaking engagements, sharing our reflections on sustainable investment trends.
At Putnam, we recognize that the field of sustainable investing is actively growing and evolving, and each part of our community has an opportunity to contribute to the field’s advancement.
One way we contribute is by collaborating with institutions in the sustainability field:
United Nations Principles for Responsible Investing (UN PRI). This organization works to understand the investment implications of environmental, social, and governance (ESG) factors and to support its international network of investor signatories as they incorporate these factors into their investment and ownership decisions. Putnam has been a signatory to the UN PRI since 2011. This means we are committed to thoughtfully and appropriately integrating ESG issues into investment analysis, decision making, policies, and practices. Our research focuses on understanding how ESG factors may influence performance, generate alpha, and/or mitigate risk in client portfolios. I serve as chair of Putnam’s PRI committee, which also includes senior members of our firm’s operating committee.
Sustainable Accounting Standards Board (SASB). Putnam joined SASB as an alliance member in 2018, and we are also members of its Investor Advisory Group. SASB’s mission is to establish industry-specific disclosure standards for financial material, decision-useful ESG topics, which facilitates communications between companies and investors.
Ongoing pollination. We participate in a number of other ad hoc collaborations, focused on three main areas:
- Research on emerging issues
- Improving processes around disclosure and analysis of sustainable investing approaches
- Contributing to development and transparency of sustainable business practices
“Sustainable investing is an expanding field. Its roots are decades old, and its branches are extending in many directions.”Sustainable investing is an expanding field. Its roots are decades old, and its branches are extending in many directions. Right now, we are still in the early stages of exploring the insights it can yield and the value it can offer to investors. Putnam is active in nurturing this development by sharing insights with, as well as learning from, our many allies in different areas of the discipline. We value these diverse inputs, and we believe that engaging with this broader network deepens our understanding and leads us to better, more essential questions.
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.