Franklin Templeton Issues Corporate Social Responsibility Report and Broadens Goals for 2022

Rhea-AI Summary

Franklin Templeton has published its annual Corporate Social Responsibility (CSR) Report, reaffirming commitments made in 2021 and outlining progress across six dimensions of CSR: stewardship and sustainable investing; diversity and inclusion; environment and climate; employee experience; community engagement; and responsible corporate practices. For 2022, the firm aims to enhance its sustainability reporting using the Global Reporting Initiative framework. Key achievements include a reduction in greenhouse gas emissions by 57% since 2007 and the integration of diverse hiring practices. The report emphasizes long-term risk management as a core business strategy.

Positive

• Reported a 57% reduction in greenhouse gas emissions since 2007.
• Joined the Net Zero Asset Managers initiative to reduce emissions to net zero by 2050.
• Expanded sustainability reporting to include Global Reporting Initiative (GRI) standards.

Negative

• None.

CSR Report Outlines Achievements and Expands Sustainability Disclosures

SAN MATEO, Calif.--(BUSINESS WIRE)-- Franklin Templeton has released its annual Corporate Social Responsibility (CSR) Report that addresses its commitment to responsible corporate citizenship and outlines its efforts to build a better future for clients, shareholders and employees as well as the communities it serves around the world.

In addition to announcing that the firm met its 2021 commitments, the 2022 report details Franklin Templeton’s progress on the firm’s six dimensions of CSR – stewardship and sustainable investing; diversity and inclusion (D&I); environment and climate; employee experience; community engagement; and responsible corporate practices – and outlines new priorities for the 2022 fiscal year. The firm also reported sustainability results using two widely used disclosure frameworks, the Sustainable Accounting Standards Board (SASB) and the Global Reporting Initiative (GRI). Franklin Templeton reported using SASB standards previously and has expanded its reporting to include the GRI Index in this latest report.

“Our CSR accomplishments are a testament to our commitment to progress, which is at the heart of everything we do at Franklin Templeton. As the firm celebrates its 75th anniversary in 2022, we will continue to build upon our CSR achievements while employing the highest standards in the way we operate our firm and invest on behalf of our clients,” said Jenny Johnson, President and CEO of Franklin Templeton. “Looking forward, our CSR commitments and expanded reporting affirm our promise to our stakeholders to continually improve and evolve.”

“Franklin Templeton’s CSR goals outline the firm’s commitment to sustainability, which addresses our responsibilities for taking care of people, the planet and prosperity. For investors, these are the key factors that foster long-term risk-adjusted returns: financial, human and natural. The tremendous challenges and opportunities these bring through issues like climate change, diversity, equity and inclusion, drive the strategic priorities for our organization and investment teams going forward,” said Anne Simpson, Global Head of Sustainability for Franklin Templeton. “We will be focused not only on our corporate sustainability efforts, which include reducing the organization’s greenhouse gas emissions and enhancing our reporting infrastructure, but also expanding our stewardship and sustainable investing practices across our global investment portfolios.”

Major 2021 CSR Achievements

• Stewardship & Sustainable Investing: In July 2021, Franklin Templeton, along with its specialist investment managers ClearBridge Investments, Brandywine Global and Martin Currie, joined the industry-leading Net Zero Asset Managers initiative in support of its goal to reduce carbon emissions to net zero by 2050 or sooner. Over the past year, the firm also launched its Stewardship and Sustainability Council and appointed Anne Simpson as its first Global Head of Sustainability.
• Diversity & Inclusion: In 2021, the firm published expanded gender and ethnicity representation data and developed a global D&I strategy to diversify talent at all levels. It partnered with organizations and educational institutions to recruit from underrepresented groups and contributed to the Financial Alliance for Racial Equity (FARE) CFP® (Certified Financial Planner) Board scholarship for aspiring CFP® professionals of color.
• Environment & Climate: The company’s energy reduction initiatives and remote work policies led to a reduction in emissions of approximately 57% since 2007, its baseline year, despite significant expansion of our business due to organic growth and acquisitions. In 2021, Franklin Templeton also expanded Scope 3 emissions reporting, set an emissions target and established an enterprise-level Environmental Committee to further advance green initiatives and drive innovation.

“At Franklin Templeton, we understand that CSR is not only good for our communities and our world, but it is also good business practice,” said Kristin Kosmides, Head of Global Citizenship. “Our firm made exceptional progress on our CSR goals in 2021, despite the challenging pandemic environment, and we have identified opportunities for making further strides in 2022. Going forward, we will execute on our expanded goals while continuing to closely engage with our key stakeholders to inform and evolve our work.”

Franklin Templeton established goals and key priorities for fiscal year 2022 within the following focus areas:

Key 2022 CSR Commitments

• Stewardship & Sustainable Investing: Franklin Templeton will disclose climate-related risks and opportunities in alignment with the Task Force on Climate-related Financial Disclosures, an industry best practice. The firm will also advance initiatives within our commitment to the Net Zero Asset Managers initiative (NZAMI).
• Diversity & Inclusion: Over the coming year, the firm will continue to integrate inclusive hiring practices, including putting forward diverse slates of candidates for senior positions. The firm will implement initiatives aimed at providing access and opportunities for underserved entrepreneurs, businesses and suppliers. Additionally, Franklin Templeton employees are setting individual diversity goals in 2022.
• Environment & Climate: The firm will complete third-party verification for scope 1 and 2 greenhouse gas (GHG) inventory, review and update its GHG inventory process and review building management systems globally for efficiency and emissions reduction opportunities.
• Employee Experience: The firm will complete development of its employee value proposition to reflect the employee experience and Franklin Templeton brand.
• Community Engagement: Franklin Templeton will work to further refine its charitable foundation focus areas with stakeholders and refresh the firm’s global volunteerism program, Involved.
• Responsible Corporate Practices: The firm will continue to expand and scale cybersecurity effectiveness testing.

To access the report and see all of Franklin Templeton’s CSR commitments, visit the Global Citizenship page on the Franklin Resources website.

About Franklin Templeton

Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 155 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers boutique specialization on a global scale, bringing extensive capabilities in equity, fixed income, multi-asset solutions and alternatives. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has 75 years of investment experience and approximately $1.5 trillion in assets under management as of March 31, 2022. For more information, please visit franklinresources.com and follow us on LinkedIn, Twitter and Facebook.

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. This material may not be reproduced, distributed or published without prior written permission from Franklin Templeton.

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. The underlying assumptions and these views are subject to change based on market and other conditions and may differ from other portfolio managers or of the firm as a whole. The information provided in this material is not intended as a complete analysis of every material fact regarding any country, region or market. There is no assurance that any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets will be realized. The value of investments and the income from them can go down as well as up and you may not get back the full amount that you invested. Past performance is not necessarily indicative nor a guarantee of future performance. All investments involve risks, including possible loss of principal.

Any research and analysis contained in this material has been procured by Franklin Templeton for its own purposes and may be acted upon in that connection and, as such, is provided to you incidentally. Data from third party sources may have been used in the preparation of this material and Franklin Templeton ("FT") has not independently verified, validated or audited such data. Although information has been obtained from sources that Franklin Templeton believes to be reliable, no guarantee can be given as to its accuracy and such information may be incomplete or condensed and may be subject to change at any time without notice. The mention of any individual securities should neither constitute nor be construed as a recommendation to purchase, hold or sell any securities, and the information provided regarding such individual securities (if any) is not a sufficient basis upon which to make an investment decision. FT 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.

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Franklin Templeton has certain environmental, sustainability and governance (ESG) goals or capabilities; however, not all strategies are managed to “ESG” oriented objectives.

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Offshore Americas: In the U.S., this publication is made available only to financial intermediaries by Franklin Distributors, LLC, member FINRA/SIPC, 100 Fountain Parkway, St. Petersburg, Florida 33716. Tel: (800) 239-3894 (USA Toll-Free), (877) 389-0076 (Canada Toll-Free), and Fax: (727) 299-8736. Investments are not FDIC insured; may lose value; and are not bank guaranteed. Distribution outside the U.S. may be made by Franklin Templeton International Services, S.à r.l. (FTIS) or other sub-distributors, intermediaries, dealers or professional investors that have been engaged by FTIS to distribute shares of Franklin Templeton funds in certain jurisdictions. This is not an offer to sell or a solicitation of an offer to purchase securities in any jurisdiction where it would be illegal to do so.

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Franklin Templeton Corporate Communications:

Vanessa Garcia, +1 (917) 562-5151, vanessa.garcia@franklintempleton.com

Lisa Tibbitts, +1 (917) 674-8060, lisa.tibbitts@franklintempleton.com

Source: Franklin Templeton

FAQ

What are Franklin Templeton's major CSR achievements in 2021?

Franklin Templeton achieved a 57% reduction in greenhouse gas emissions since 2007 and joined the Net Zero Asset Managers initiative.

How is Franklin Templeton enhancing its sustainability reporting?

The firm is expanding its sustainability reporting to include the Global Reporting Initiative framework along with SASB standards.

What are Franklin Templeton's key CSR commitments for 2022?

Key commitments include disclosing climate-related risks, enhancing diversity in hiring, and improving employee experience.

How does Franklin Templeton approach diversity and inclusion?

The firm has developed a global D&I strategy and is implementing inclusive hiring practices to diversify talent.

What is the impact of Franklin Templeton's CSR initiatives on investors?

The firm's CSR initiatives aim to foster long-term risk-adjusted returns by addressing financial, human, and natural capital.