We have expanded the list of climate policies we assess company engagement with to incorporate land-use related policy, referring to legislative or regulatory measures to enhance and protect ecosystems and land where carbon is being stored. Assessments under this category are currently underweighted in terms of their contribution to the overall company metrics. This weighting will be progressively increased over the next 6 months.
We adjusted the terminology used to describe the queries running down the left-hand side of our scoring matrix and added additional explanatory text to the info-boxes. This has no impact on the scores and methodology. It has been done following user feedback to improve clarity.
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
Gregory Johnson is on the board of ICI
Gregory E. Johnson (Executive Chairman, Franklin Resources, Inc.)
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
Franklin Templeton is a member of ICI.
not specified
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
Gregory Johnson is on the board of ICI
Gregory E. Johnson (Executive Chairman, Franklin Resources, Inc.)
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
Franklin Templeton is a member of ICI.
not specified
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
Franklin Templeton Fund Management, Franklin Templeton Investment Management and Martin Currie are members of the Investment Association
not specified
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
Franklin Templeton Fund Management, Franklin Templeton Investment Management and Martin Currie are members of the Investment Association
not specified
In this section, we depict graphically the relationships the corporation has with trade associations, federations, advocacy groups and other third parties who may be acting on their behalf to influence climate change policy. Each of the columns above represents one relationship the corporation appears to have with such a third party. In these columns, the top, dark section represents the strength of the relationship the corporation has with the influencer. For example if a corporation's senior executive also held a key role in the trade association, we would deem this to be a strong relationship and it would be on the far left of the chart above, with the weaker ones to the right. Click on these grey shaded upper sections for details of these relationships. The middle section contains a link to the organization score details of the influencer concerned, so you can see the details of its climate change policy influence. Click on the middle sections for for details of the trade associations. The lower section contains the organization score of that influencer, the lower the more negatively it is influencing climate policy.
Open PDF file of Data Source
Sustainable Finance Lobbying Overview: Franklin Templeton appears to have had generally positive engagement on sustainable finance policies, supporting regulated corporate ESG disclosure and measures to incorporate ESG into investor duties.
Top-Line Messaging on Sustainable Finance Policy: Franklin Templeton has stated support for the role of finance in tackling climate change, advocating for action to achieve net zero emissions by 2050. In 2021, Franklin Templeton joined the Net Zero Asset Managers Initiative, supporting the goal of emissions reductions in order to limit warming to 1.5C. Franklin Templeton has called the EU Sustainable Action plan a “pivotal development” and mentioned engaging with regulators on sustainable finance, appearing supportive of regulations around the world. Martin Currie, an investment management subsidiary of Franklin Templeton, appeared to support regulatory action on sustainable finance in the EU and UK in its 2022 Stewardship Report, but emphasized that regulation is only one part of driving change to a more sustainable system.
Position on Regulated Corporate ESG Disclosure: Franklin Templeton appears supportive of regulated corporate ESG disclosure. In a March 2022 article, Franklin Templeton stated support for the Securities and Exchange Commission’s (SEC) proposed climate disclosure rule, calling it a “welcome blast of fresh air that can revitalise capital allocation for the benefit of all.” In an April 2022 article, Franklin Templeton called the efforts by the SEC and the International Financial Reporting Standards Board to mandate corporate climate disclosure a “necessary, but not sufficient” step to properly understand climate risk. In its comments on the SEC’s rule, Franklin Templeton expressed strong support for the proposal.
Position on Taxonomies and ESG Standards/Labels/Benchmarks: Franklin Templeton has articulated a mixed position on EU taxonomy regulation. In a 2019 insights paper, Franklin Templeton supported expansion of a taxonomy to cover wider geographic areas, and advocated for the inclusion of transitional activities to provide a more flexible framework, which would have an unclear impact on the stringency of the policy. In a 2020 news article, Franklin Templeton’s global head of ESG expressed concerns about the implementation and efficacy of the taxonomy.
In comments to the Department of Labor in 2020, Franklin Templeton expressed concerns about a lack of uniform ESG definitions and standards, and called for “greater regulatory oversight and guidance” to prevent greenwashing. In August 2022, Franklin Templeton supported the SEC’s proposed categories for ESG funds, suggesting that funds that only consider governance factors be removed from the ESG ‘Integration Fund’ category.
Position on Incorporating ESG Factors Into Investor Duties: Franklin Templeton appears to have supported the incorporation of ESG factors into investor duties. Franklin Templeton opposed a 2020 Department of Labor rule that sought to limit ESG investing, writing that ESG considerations are “fundamentally pecuniary,” and in its December 2020 Stewardship Report, Franklin Templeton welcomed the Biden administration’s review of this rule. In 2021, Franklin Templeton and subsidiary ClearBridge Investments supported the Department of Labor’s proposal to reverse previous rules limiting ESG investing. In a 2021 press release and a 2021 ESG panel, Franklin Templeton stated support for the EU Sustainable Finance Disclosure Regulation (SFDR), explaining that the regulation will help foster transparency and prevent greenwashing. Martin Currie’s 2022 Stewardship Report describes engagement with ESG stewardship regulations including the UK Sustainability Disclosure Requirements (SDR) but details of this engagement are unclear. In August 2022 comments to the SEC, Franklin Templeton supported but suggested narrowing proposed disclosure requirements for investors about their ESG practices.
In September 2022, a Clearbridge representative spoke out against a Texas law that seeks to limit ESG investing. In March 2023, Franklin Templeton signed onto a Freedom to Invest joint letter, directly advocating for policymakers to support integrating ESG into investor duties.
Industry Association Governance: Franklin Templeton has disclosed some, but not all of its trade association membership, and has not described the sustainable finance policy positions of these groups.