Franklin Templeton Investments

InfluenceMap Score
C+
Performance Band
71%
Organisation Score
51%
Relationship Score
Sector:
Financials
Head​quarters:
San Mateo, United States
Official Web Site:
Wikipedia:

Franklin Templeton Investments appears to have had limited and sometimes unclear engagement on sustainable finance policy, but, where it has engaged, Franklin Templeton appears to support regulated corporate ESG disclosure and some measures to incorporate ESG factors into investor duties.

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, a group 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, but the details of these engagements are unclear. 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.

Franklin Templeton appears to support regulated corporate ESG disclosure. In a March 2022 article, Franklin Templeton stated support for the SEC’s proposed climate disclosure rule, calling it a “welcome blast of fresh air that can revitalise capital allocation for the benefit of all.” Franklin Templeton signed on to the 2021 Global Investor Statement to Governments on the Climate Crisis, calling on governments to implement mandatory climate disclosure requirements aligned with TCFD recommendations. 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.

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.

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.

Franklin Templeton has disclosed positions and engagement on some sustainable finance policies around the globe. Franklin Templeton has listed some but not all of its trade association membership, and has not described how it engages with these associations.

QUERIES
DATA SOURCES
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Strength of Relationship
STRONG
 
 
 
 
 
 
 
WEAK
 
42%
 
42%
 
42%
 
42%
 
55%
 
55%
 
56%
 
56%
 
41%
 
41%
 
49%
 
49%
 
81%
 
81%

How to Read our Relationship Score Map

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.