Sustainable Investing

Investing in companies improving our world

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.

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ESG basics for my clients

What is sustainable investing?

Save this document for the fundamentals of what ESG is and is not.

Our approach?

Investing in companies improving our world

Use this client-approved brochure to understand Putnam's investment philosophy and the funds we offer.

Dig into Putnam's impact analysis

Sustainability and impact report

Use this client-approved brochure to understand Putnam's investment philosophy and the funds we offer.

Examples of sustainable business practices

Putnam's Sustainable funds

Sustainable Leaders Fund (PNOYX)

This fund received a Overall Morningstar Rating out of 1,235 funds in the Large Growth category based on total return as of 06/30/19

Sustainable Future Fund (PMVYX)

This fund received a Overall Morningstar Rating out of 363 funds in the Mid-Cap Value category based on total return as of 06/30/19

About our sustainable funds

Sustainable investing aims to identify companies that are thriving by producing beneficial products in a responsible way. Learn more.

Sustainable investing is flourishing

Investment team and 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.

Katherine Collins, CFA Head of Sustainable Investing
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 as well as Putnam Global Equity Fund.

Shep Perkins, CFA, Co-Head of Equities
Stephanie Dobson, Portfolio Manager, Analyst

Stephanie brings together experience in interpreting and applying ESG data with skills in fundamental analysis and valuation of companies.

Stephanie Dobson, Analyst
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.

Alexander Rickson, CFA, Quantitative Analyst
Latest perspective:
Engaging with allies to advance sustainable investing

Engaging with allies to advance sustainable investing

We collaborate with institutions to examine and understand the financial impacts of sustainability.

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Portfolio analysis and ESG metrics

Dive into key metrics from our impact report

In this inaugural assessment, the Sustainable Investing team provides multidimensional views of our portfolios' sustainability metrics and social and environmental impact, including examples of portfolio holdings.

Portfolio ESG rankings vs. peers

Many investors want to see a snapshot view that shows a portfolio's aggregate ESG ratings or rankings, and many value the independence of an assessment that is based on third-party data.

Carbon intensity

Carbon dioxide and other greenhouse gases (GHG) trap thermal radiation from the earth's surface, sustaining natural life.

Women on boards of directors

Our portfolios do have a higher-than-market representation of companies where women comprise 30% or more of total board membership.

The Morningstar Rating™ for funds, or "star rating," is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and ten-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36 to 59 months of total returns, 60% five-year rating/40% three-year rating for 60 to 119 months of total returns, and 50% ten-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the ten-year overall star rating formula seems to give the most weight to the ten-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account the effects of sales charges and loads.