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Franklin Templeton takes a sustainable step with new ESG fund launch

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By illuminem briefings

· 2 min read


illuminem summarizes for you the essential news of the day. Read the full piece on Fintech Global or enjoy below

🗞️ Driving the news: Franklin Templeton and ClearBridge Investments have unveiled the FTGF ClearBridge Global Sustainability Improvers Fund
• This innovative fund spotlights companies showing marked improvement in their Environmental, Social, and Governance (ESG) practices

🔭 The context: Rather than concentrating solely on businesses with established strong ESG profiles, this fund will cater to companies that are still evolving and refining their sustainability strategies
• The goal? To capture potential shareholder value and promote sustainable economic progression

🌍 Why it matters for the planet: The fund is not just about investing; it's about incentivizing businesses to enhance their sustainability initiatives
• By focusing even on sectors often overlooked by traditional ESG tactics, there's potential for reduced operational risks, spurring sustainable economic growth

⏭️ What's next: The company believes that by investing in companies enhancing their sustainability, especially in overlooked sectors, they will unlock shareholder value and promote sustainable growth in the future
• Additionally, the fund's focus on early-stage ESG companies allows investors to aid the transition to a greener economy while aiming for higher returns

💬 One quote: “We look for companies that are committed to improving their sustainability profiles over time... Companies that address material ESG weaknesses reduce their operating risk, which can be a catalyst for unlocking shareholder value,” (Grace Su, ClearBridge Investments)

📈 One stat: The fund will maintain a concentrated portfolio of around 30-40 equity securities, each chosen with an ESG improvement thesis and regularly assessed against sustainability objectives.

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