Sustainable Investing | How we engage
- Sustainability research and ESG analysis are core components of our fundamental research and investment process.
- Our team is an integral part of the equity investing organization, not a separate boutique within the firm.
- Our funds are rooted in the recognition that strong sustainability performance often coincides with strong financial performance over the long term.
The field of sustainable investing continues to develop at a rapid pace, and approaches can differ significantly. At Putnam, sustainability research and ESG analysis are core components of our fundamental research process. We view sustainability consideration as an essential investment function. Our team is an integral part of the equity investing organization, not a separate boutique within the firm.
“We believe an intense focus on sustainability has the potential to deliver strong returns to investors while also benefiting communities and the environment.”
All Putnam equity analysts and portfolio managers are colleagues and collaborators with the sustainable investing team. We are all investors. The sustainable investing team's responsibilities include:
- Managing Putnam Sustainable Leaders Fund and Putnam Sustainable Future Fund
- Participating in investment discussions, company meetings, investment conferences, and visits to companies
- Conducting ongoing thematic and company-specific research, often in collaboration with the broader equity team
- Meeting with early-stage companies (both public and private) that could present future opportunities for all Putnam funds
- Conducting ongoing due diligence on emerging businesses that have direct sustainability impacts, such as renewable energy, materials recycling, and plant-based foods
- Developing proprietary portfolio and sector level tools for ESG data analysis
- Introducing experts in sustainability and ESG research to colleagues across the Putnam organization
Our greatest priority is to extend Putnam’s long-standing strength in fundamental research to produce deeper insights in forward-looking and relevant ESG, sustainability, and impact analysis. We believe an intense focus on material sustainability issues has the potential to deliver strong returns to investors while also benefiting communities and the environment.
Putnam offers two funds that are rooted in the recognition that strong sustainability performance often coincides with strong financial performance over the long term.
Learn more about the funds and how we invest our sustainability principles 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.