Franklin Templeton has released its annual corporate social responsibility report for 2022.
The report says the firm met its 2021 commitments and details FT’s progress on the firm’s six dimensions of CSR – stewardship and sustainable investing; diversity and inclusion (D&I); environment and climate; employee experience; community engagement; and responsible corporate practices – and outlines new priorities for the 2022 fiscal year.
The firm also reports sustainability results using the Sustainable Accounting Standards Board (SASB) and the Global Reporting Initiative (GRI).
Stewardship & Sustainable Investing: In July 2021, Franklin Templeton, along with its specialist investment managers ClearBridge Investments, Brandywine Global and Martin Currie, joined the industry-leading Net Zero Asset Managers initiative in support of its goal to reduce carbon emissions to net zero by 2050 or sooner. Over the past year, the firm also launched its Stewardship and Sustainability Council and appointed Anne Simpson as its first Global Head of Sustainability.
Diversity & Inclusion: In 2021, the firm published expanded gender and ethnicity representation data and developed a global D&I strategy to diversify talent at all levels. It partnered with organizations and educational institutions to recruit from underrepresented groups and contributed to the Financial Alliance for Racial Equity (FARE) CFP® (Certified Financial Planner) Board scholarship for aspiring CFP® professionals of color.
Environment & Climate: The company’s energy reduction initiatives and remote work policies led to a reduction in emissions of approximately 57% since 2007, its baseline year, despite significant expansion of our business due to organic growth and acquisitions. In 2021, Franklin Templeton also expanded Scope 3 emissions reporting, set an emissions target and established an enterprise-level Environmental Committee to further advance green initiatives and drive innovation.
Key 2022 CSR commitments:
Stewardship & Sustainable Investing: Franklin Templeton will disclose climate-related risks and opportunities in alignment with the Task Force on Climate-related Financial Disclosures, an industry best practice. The firm will also advance initiatives within our commitment to the Net Zero Asset Managers initiative (NZAMI).
Diversity & Inclusion: Over the coming year, the firm will continue to integrate inclusive hiring practices, including putting forward diverse slates of candidates for senior positions. The firm will implement initiatives aimed at providing access and opportunities for underserved entrepreneurs, businesses and suppliers. Additionally, Franklin Templeton employees are setting individual diversity goals in 2022.
Environment & Climate: The firm will complete third-party verification for scope 1 and 2 greenhouse gas (GHG) inventory, review and update its GHG inventory process and review building management systems globally for efficiency and emissions reduction opportunities.
Employee Experience: The firm will complete development of its employee value proposition to reflect the employee experience and Franklin Templeton brand.
Community Engagement: Franklin Templeton will work to further refine its charitable foundation focus areas with stakeholders and refresh the firm’s global volunteerism program, Involved.