Sustainable Investment Governance Committee (SIGC)
To implement our firm-wide approach, the SIGC, which reports to the Executive Committee, is a senior-level decision making body responsible for enterprise-wide governance and oversight for sustainable investing at Franklin Templeton. Responsibilities include ensuring appropriate sustainability-related resource allocation to meet the needs of the firm and our clients, and final determination on sustainability issues when opinions and approaches differ. It also provides a forum for consideration of initiatives, thought leadership and partnerships. The committee comprises senior representatives from across all parts of the business, including investments, distribution, legal, enterprise risk, the Executive Committee, communications and sustainability. The SIGC ensures integration, clarity and coordination among the teams responsible for integrating sustainability considerations within their respective processes.
Stewardship and Sustainability Council
Consideration of material sustainability factors is a common theme across many of our investment teams’ fundamental bottom-up research processes, and these research efforts are supported by thought leadership and sharing of best practices by our Stewardship and Sustainability Council. The council brings together leaders in stewardship and sustainable investing from across our investment teams, covering every asset class and strategy range. It is led by two co-chairs and comprises council members representing leaders of sustainability investing across our different investment teams.
Investment Sustainability Solutions Team
Our ISST is a multi-disciplined group of sustainable investment professionals with expertise in sustainability data, stewardship and engagement, and sustainability policy and reporting. The team supports a broad range of Franklin Templeton's stewardship and sustainable investing initiatives. This involves liaison with individual investment teams, the Stewardship and Sustainability Council and its working groups, the firm's Sustainable Investment Governance Committee, the firm's Public Policy Committee, the firm’s sustainable investment product team, as well as the firm’s corporate social responsibility team.
Some examples of the team's initiatives, projects, and leadership roles:
The ISST’s data professionals support our investment teams with a sustainability data hub, helping to source and integrate data from a variety of vendors. The team also supports best data integration practices across our investment teams. In addition, they support the development of research and analytical tools on thematic topics such as climate and nature. Our investment teams have access to this research to support informed decision-making, engagement and training.
Our principles-based approach to stewardship and proxy voting underscores the value that engagement on matters that are material to performance are integral to the exercise of our fiduciary duty to our clients. Decision-making authority for voting and engagement lies with each investment team, with support from the ISST’s stewardship professionals with thematic expertise on corporate governance, sustainability topics and other voting research. They also partner with investment teams to engage directly with issuers and indirectly as part of trade associations and investor networks.
The team supports firm-wide sustainability related reporting and ensures alignment with global regulations, emerging frameworks, and internal governance standards. They manage and update key sustainability policies, coordinate with public policy teams, and support thematic development related to human-capital and stewardship priorities. The team also serves as the secretariat for FT’s sustainability governance framework, providing regional support and linking local risk management with global frameworks. Additionally, they contribute to sustainability communications, strategic partnerships, and thought-leadership initiatives across the organization.
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Important Information
This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. It does not constitute legal or tax advice. The views expressed are those of the investment manager and the comments, opinions and analyses are rendered as at publication date and may change without notice. Franklin Templeton has certain environmental, social and governance (ESG) goals or capabilities; however, not all strategies are managed to “ESG” oriented objectives. Integrating ESG considerations into the investment process is not a guarantee that better performance will be achieved. All investments involve risks, including possible loss of principal. Data from third party sources may have been used in the preparation of this material and Franklin Templeton has not independently verified, validated or audited such data. Franklin Templeton accepts no liability whatsoever for any loss arising from use of this information and reliance upon the comments, opinions and analyses in the material is at the sole discretion of the user.