"Now more than ever, we believe that sustainable companies could also prove to be more resilient and beneficial than others over the long term."— Katherine Collins, CFA, MTS, Head of Sustainable Investing
A letter from Katherine Collins, CFA, MTS
A year ago, in the spring of 2020, we thought we were in the middle of the Covid-19 crisis, but, viewed in retrospect, it was only the beginning. Difficult times reveal both shortcomings and strengths. Individuals, communities, companies, and societies have the chance to rediscover their most valuable assets. We are reminded daily of the power of good health, of social connection, and of effective systems of care. Likewise, for our team, many of the investments in time, energy, and resources we've made in past years have become meaningful assets that we can lean on in challenging times.
What is sustainable investing?
Sustainable investing aims to identify companies that offer potential for strong financial returns while also demonstrating a commitment to sustainable business practices and positive impact. Sustainability is typically evaluated through analysis of environmental, social, and governance (ESG) policies, practices, and performance.
We believe an intense focus on sustainability has the potential to deliver returns to investors while also benefiting communities and the environment.
Katherine Collins,CFA, MTS, Head of Sustainable Investing
Environmental practices might include improving water quality or reducing carbon emissions. Social impact could involve fair labor practices and improvements in workplace equality and diversity. Governance issues relate to a company's leadership structures, board composition, and management incentives. As with any strategy investors should consider how these approaches might affect their overall investment plan.
We have resources for investor education (select a starting point):
Putnam's integrated approach
Putnam's impact report
Examples of sustainable business practices
Two portfolio options connecting companies to global priorities
A research team with diverse skills
Our team has a unique, integrated process for understanding sustainability in the context of each company they research.
Katherine Collins, CFA, MTS, Head of Sustainable Investing
Experienced as an equity analyst, portfolio manager, and head of research at Fidelity, Katherine founded and led Honeybee Capital, a sustainable research firm, before joining Putnam in 2017.
Stephanie Dobson, Portfolio Manager
Stephanie brings together experience in interpreting and applying ESG data with skills in fundamental analysis and valuation of companies.
Shep Perkins, CFA, Chief Investment Officer, Equities
As CIO of Equities, Shep is responsible for providing strategic direction to Putnam's portfolio managers and equity analysts. He joined Putnam in 2011 and is Portfolio Manager of Putnam Sustainable Leaders Fund.
Alexander Rickson, CFA, Quantitative Analyst
Alex provides skills both in the interpretation of ESG data and its application to the processes of risk management and portfolio construction.
New medicines and digital tools target mental health
In recent years, there have been several developments for treating mental health. These innovations — which come after decades of slower-paced advances — include novel drugs and digital offerings.Read post
How we think about carbon, diversity, and research
Explore the 2021 Impact Report for examples of our distinctive views about important ESG topics such as carbon intensity, corporate diversity, and sector research.
An in-depth look at our investment process, including our integrated fundamental research and our approach to engagement.
Portfolio Analysis and ESG metrics
Analysis of our portfolios according to a number of ESG-related metrics.