Philosophy
We believe that an effective, sustainable global economy is essential to the creation of potential long-term value. We believe that transparency and reliability of information regarding all types of financially material investment topics benefit our clients and shareholders, and that consideration of financially relevant environmental, social, and governance (ESG) information can help contribute to fulfillment of our fiduciary duty.
- ESG integration at Putnam
- Stewardship
- Policies and Reports
ESG integration at Putnam
Putnam incorporates consideration of financially material ESG issues in our investment research processes. As active managers, we are committed to conducting thorough research when pursuing investment opportunities for our clients. We consider ESG analysis as additive and complementary to the fundamental understanding that is at the center of our investment philosophy. When focused on issues that are financially relevant to a particular business or security type, it has potential to add to overall investment insight and to improve decision making.
The investment relevance, or financial materiality, of specific ESG issues varies by sector, geography, asset class, and company context. Putnam's internally developed materiality map, inspired by the work of the Sustainability Accounting Standards Board (SASB), which is now part of the International Sustainability Standards Board (ISSB), illustrates how relevance of ESG issues can vary across sectors.
ESG Integration policy
As asset managers, we believe that an effective, sustainable global economy is essential to the creation of potential long-term value.
Equity materiality map
Our internally developed materiality map, which shows the degree of financial relevance of ESG issues across industry sectors, guides our investment research.
Stewardship
As an asset manager, our investment stewardship aims to provide long-term value through active ownership, monitoring, and engagement with the issuers of the securities we hold in our clients’ portfolios. As active managers, we are committed to conducting thorough research and to incorporating fundamental insight into all of our activities and decisions, including corporate engagement. We believe all investors benefit from effective governance practices and appropriate transparency regarding financially material business issues, including relevant ESG issues.
Approach
Our stewardship strategy has four components, including issuer-specific engagement that occurs in our investment process, thematic engagement, proxy voting, and participation in collaborative initiatives. All stewardship activity is undertaken with the goal of benefiting our clients and shareholders through long-term financial performance.
Stewardship policy
Our investment stewardship aims to provide long-term value through active ownership, monitoring, and engagement with the issuers of the securities we hold in our clients’ portfolios.
Stewardship Report
Our report illustrates Putnam’s continued conviction in the power of investment-centric stewardship and its central role in contributing to long-term financial results for our clients, ongoing progress for issuers and their governance, and a healthy global financial system.
Proxy overview, policies and voting records
Through proxy voting, the Trustees seek to make company management accountable and to align the interests of management with those of shareholders of the Funds.
Many of Putnam’s investment management clients, including the Putnam Funds, have delegated to Putnam the authority to vote proxies for shares held in the client accounts Putnam manages. These functions are managed by our internal Proxy Committee and Legal and Compliance Division and are undertaken with the consistent goal of promoting strong corporate governance, acting in the best interests of our shareholders and clients. Putnam will vote proxies and maintain records of voting of shares for which Putnam has proxy-voting authority in accordance with its fiduciary obligations and applicable law.
Policies and Reports
ESG Integration policy
As asset managers, we believe that an effective, sustainable global economy is essential to the creation of potential long-term value.
Stewardship Report
Our report illustrates Putnam's continued conviction in the power of investment-led stewardship and its central role in contributing to long-term financial results for our clients, ongoing progress for issuers and their governance, and a healthy global financial system.
Stewardship policy
Our investment stewardship aims to provide long-term value through active ownership, monitoring, and engagement with the issuers of the securities we hold in our clients’ portfolios.
Climate-Related Risk and Opportunity Report
Climate risk and environmental management are key focus areas for Putnam as these issues present increasingly notable risks and important opportunities for businesses and investors.
This material is provided for general informational purposes only and should not be considered individualized investment advice, a recommendation or a solicitation to adopt any investment strategy. It does not constitute legal or tax advice. Franklin Templeton accepts no liability for losses arising from use of this material.
The views expressed are those of the investment manager as of the publication date and may change without notice. These opinions and analyses are based on certain assumptions, including market conditions that may change. They may differ from those of other portfolio managers or from the firm as a whole.
This material is not intended to provide a complete analysis of all material facts regarding any country, region or market. No assurance can be given that any forecast, projection or prediction regarding economies or financial markets will be realized. References to specific securities are for illustrative purposes only and should not be interpreted as recommendations or a solicitation to buy, sell, or hold any security.
Any research or analysis in this material has been prepared by Franklin Templeton for its own purposes and is provided incidentally. While the information included is believed to be reliable, its accuracy and completeness cannot be guaranteed, and it is subject to change without notice.
Past performance does not guarantee future results, or any profit or gain. All investments involve risks, including possible loss of principal.
Franklin Templeton offers environmental, social and governance (ESG) capabilities, though not all strategies or products incorporate ESG as part of the investment process.
Investment strategies and services may not be available in all jurisdictions. Please consult your financial professional or Franklin Templeton contact for further information.
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