Global Citizenship

“When I became CEO in early 2020, I could not have imagined the year ahead. Yes, 2020 challenged us, but it also reminded us of our strengths and shared values. And this past year has confirmed that global citizenship is not only a business imperative, but essential to our collective role in building a better world.” – CEO Jenny Johnson

Please explore Franklin Templeton’s six dimensions of Corporate Social Responsibility (CSR) below to learn more about our approach to global citizenship and click here to read our full FY2020 CSR report.

CSR Report

ESG investing is one of the many ways we seek to deliver investment excellence by carefully managing risks and opportunities on behalf of our clients. We believe ESG considerations can enable stronger investment performance and better outcomes.

Wind Turbine

A key benefit of the acquisition of Legg Mason is that Franklin Templeton gained an accomplished global network of ESG experts through the expansion of its roster of specialist investment managers to include Brandywine Global, Clarion Partners, ClearBridge Investments, Royce Investment Partners, Martin Currie and Western Asset Management. This has been a catalyst in evolving our firm-level approach to stewardship and sustainable investing.

In March 2021, we formed the Stewardship and Sustainability Council, connecting the dedicated ESG leaders from across our 19 SIMs to guide the continued evolution of our ESG investing infrastructure and practices.

Franklin Templeton and the SIMs acquired through the Legg Mason transaction are signatories to the Principles for Responsible Investment (PRI), the leading global investor network that champions responsible investment.

To learn more about Franklin Templeton’s commitment to Responsible Investing, please click here. To read more about the ESG Investing dimension, visit our CSR report here.

Proxy Voting

With years of experience, Franklin Templeton’s investment managers understand that their proxy voting decisions may affect the value of shareholdings. Each investment manager is committed to fulfilling their fiduciary duty to vote proxies in the best interests of their fund shareholders. The proxy voting policies and procedures serve as a guideline for proxy voting decisions and detail the process by which such decisions are made. Both the proxy voting policies and voting records are publicly available to ensure transparency for fund shareholders. Learn more about Proxy Voting Policies and Voting Records.

Additional Resources:

Franklin Templeton Stewardship Report
Clarion Partners ESG Report
ClearBridge Investments Impact Report
Martin Currie Stewardship Report
Franklin Real Assets Advisors Impact Report

Fostering a diverse and inclusive culture is essential to our success. We believe that more perspectives enable better decisions and faster innovation, producing positive business results, as well as societal benefits. We take pride in our workforce made up of employees with diverse ethnicities, generations, capabilities, gender identities and cultural backgrounds. Mutual respect guides how we treat each other and work together to deliver better client outcomes.

Diversity

Our focus on D&I begins with committed leadership. In May 2020, we announced the appointment of our first Chief Diversity Officer, Regina Curry, who leads our approach to advancing diversity and inclusion across the firm.

We actively educate our leaders in managing in an inclusive way. Senior leaders from our D&I Executive Council serve as champions sponsoring diversity initiatives and advising on policy.

Internally, we seek to enhance our employees’ understanding and support of equity and inclusion. We have seven Business Resource Groups (BRG) and numerous initiatives to increase cultural awareness and inclusion in the workplace and the broader community. Our most recent CSR report highlights additional partnerships, initiatives and the work of the BRGs.

Our dedicated D&I intranet site provides employees information on promoting an inclusive culture, exploring unconscious bias, tips on how to be a D&I champion and a wide variety of learning resources.

We are proud that multiple organizations have recognized our efforts to promote D&I. Franklin Templeton is on the Disability Equality Index and Human Rights Campaign Best Places to Work List, winner in Citywire’s first every Gender Diversity Awards, and considered a Stonewall Diversity Champion. For more information, please visit the Diversity & Inclusion page on our website.

Our belief in embracing different ideas and perspectives is built into how we hire, develop, engage, and keep talented individuals. Our people drive Franklin Templeton forward with their innovative ideas and through their commitment to excellence. We support the engagement and development of all employees to allow each individual to bring their whole self to work. We provide a variety of opportunities to enhance their experiences and advance their careers.

Team Meeting

We support the whole person. Our employees have access to a competitive and valuable set of total rewards – a mix of monetary and non-monetary rewards designed to recognize their time, talents, and results. These benefits and offerings include:

  • Fair, equitable and competitive compensation that rewards employees at all levels of the organization for performance and contributions to the company’s success.
  • Health, wellness and risk benefits to protect and restore health and wellness for employees and their families.
  • Retirement savings, stock purchase and other incentive programs to help employees plan for the future.
  • Holiday and time-off family friendly benefits, and employee programs that support work-life integration.
  • Ways to get involved in, and give back to, our communities, through the Involved global volunteer program and the volunteer paid time off benefit.
  • Business resource groups that promote inclusion, foster networking and collaboration, and support new employees.
  • Learning, development and career advancement opportunities.
  • Support for pursuing certifications, external education and tuition assistance program available to full-time employees.
  • Performance management that helps employees set personal performance objectives that are aligned with corporate goals.

Skills & Career Development

At Franklin Templeton, personal and professional development is essential. We believe it strengthens our company and helps our people meet any challenge. Our employee development approach centers around these three avenues—Experience, Exposure, and Education.

Experience – We strongly advocate the value of learning through on-the-job activities.

Exposure – We believe in exposing you to opportunities for networking, creating mentor relationships, and obtaining feedback from a variety of sources.

Education – You will take part in structured learning solutions for core and specific competency development in both web-based and instructor-led programs.

To learn more about Employee Experience and Talent Management, including our feedback culture, employee recognition programs, learning options and more, visit the most recent CSR report. To learn more about working at Franklin Templeton, visit the  Careers section.

Our collective future and well-being are dependent upon our ability to practice strong environmental stewardship. We recognize the importance of minimizing our corporate footprint and encouraging responsible behaviors across the company, which includes our ESG investing efforts.

Tree

Franklin Templeton is pleased to be a signatory for the Task Force on Climate-Related Financial Disclosures. We are an investor signatory and report annually to CDP, formerly known as the Carbon Disclosure Project. In 2020, CDP awarded Franklin Templeton a B rating, putting us among the top-tier out of 9,600 companies that reported through CDP that year. CDP is a globally renowned rating organization that evaluates companies for their efforts to measure and manage environmental impact on an A through D scale (or F for companies that do not respond). The firm’s current response is publicly available on the CDP website.

Our corporate Environmental Policy Statement outlines our core goal of limiting our negative impact on the environment. To accomplish emissions reductions, we have implemented environmentally conscious building features and business practices across our global footprint.

Environmentally Conscious Building Features

Our General Services team strives to provide a safe, comfortable and efficient environment to enable employees to work productively. They accomplish this while also utilizing building features and technology that limit the impact on the environment. Franklin Templeton is proud that a recent building project in Poznan, Poland was designed to LEED Standard (Leadership in Energy and Environmental Design) and certified as LEED Platinum, the highest rating available. Other examples of approaches we employ in the facilities we operate:

Our real estate development and renovation projects seek to minimize energy consumption.

  • Buildings utilize sensors and/or timers on lights, low voltage and LED lighting, high efficiency bulbs/tubes and electronic ballasts to limit energy use.
  • Our equipment replacement process includes evaluation of new products and features that improve energy and water efficiency.
  • In our two new data centers in California we utilized a new more energy-efficient approach to data center design and also invested in building improvements to increase energy efficiency.
  • Franklin Templeton obtains electricity from fuel cells installed at our San Mateo headquarters and Poznan, Poland buildings that powers all campus lighting.
  • Our buildings in Rancho Cordova, Stockton & San Mateo (two new buildings) in California, St. Petersburg, Florida and Poznan, Poland feature cool roof technology to reflect warming sunlight, which reduces the need for energy-intensive cooling.
  • Newly constructed buildings in San Mateo, California utilize solar panels.

We use environmental management systems to monitor air quality and energy usage.

  • Building management systems have off-peak settings that turn off/reduce lighting and HVAC outside of normal business hours.
  • Detailed energy usage data allows staff to audit buildings and make continuous improvements to reduce energy use.

We continually look for new ways to reduce the use of water in our daily operations.

  • Low flow water fixtures on plumbing systems and landscaping moisture sensors limit water use. New construction in San Mateo, California and Poznan, Poland also includes low flow water heaters and toilets.
  • Our St. Petersburg, Florida site uses reclaimed water for all landscaping.
  • Our water management system in India utilizes three on-site water wells for landscape irrigation and includes our own water reclamation facility to recycle all water used at the site. In addition, water collection systems channel rain and irrigation runoff water back into the ground. New construction in San Mateo, California and Poznan, Poland use sustainable landscape design including extensive drip irrigation for maximum water retention.

We recycle and encourage employees to extend recycling programs to offices, cafeterias and community activities.

  • The firm facilitates recycling at all owned facilities in the United States, and works with building landlords to promote their recycling options at all leased locations.
  • In addition to standard recyclable items, some Franklin Templeton sites also facilitate recycling of used batteries, eyeglasses, mobile phones, and other items that are donated to community nonprofit organizations.

We promote the use of sustainable materials and supplies.

  • Interior renovations incorporate sustainable design and products with green labels or certification, including low VOC, low emission, renewable/recycled content, and locally sourced materials in construction. For example, our Stockton Data Center used recycled carpets and fabrics. New construction in San Mateo, California and Poznan, Poland used sustainable materials for windows, insulations, carpets, and fabrics.
  • For construction projects, we specify sustainable materials and source them locally where we can.
  • Cleaning processes incorporate green cleaning products and recycled content paper goods.

Environmentally Conscious Business Practices

Franklin Templeton also manages the firm’s environmental impact by supporting sustainable business practices across the various functional areas of the company. Examples include:

  • In addition to using recycled content paper whenever possible, our in-house Publishing Department uses soy-based inks and integrated computer-to-plate technology (reducing use of film and hard metals), recycles aluminum plates, keeps chemical logs to track use, and has eliminated or limited use of harmful chemicals wherever possible.
  • We encourage employees to limit the use of paper through use of copiers that print double-sided, scanners to send files electronically, email and online communications, and paperless technology solutions. In addition, a campaign by the Green Team reduced overall print volumed by 15% in 2019 compared to 2018.
  • The firm also promotes paperless options for mutual fund shareholders by offering electronic delivery of statements, fund prospectuses, annual reports, proxies and tax documents. Learn more or enroll. (U.S. Residents)
  • Franklin encourages employees to consider videoconferencing and teleconferencing as alternatives to travel.
  • Franklin Templeton contracts with a global vendor to provide environmentally responsible e-waste recycling for decommissioned computer equipment, phones, and other electronic equipment. The vendor has a zero-landfill policy where materials are reused or further refined for eventual re-use in manufacturing.

Investments

As we see societies evolve to respond to climate change, there are widespread changes to regulations and industries that impact the global investment community. From carbon trading markets to new green products, certain industries and geographies are seeing real financial costs and opportunities emerge. These issues are playing out in financial markets around the world and can impact the risk and return profile of an investment.

Our investment professionals employ a bottom-up approach and use fundamental analysis to assess all risk factors associated with each investment opportunity, which can include issues related to climate change and controlling environmental impact. This fundamental analysis allows our investment professionals to identify both risks and opportunities that are emerging due to climate change.

At Franklin Templeton, we take pride in being a collaborative partner in our communities. We support hundreds of organizations throughout the year through employee volunteerism and charitable giving, and we encourage our employees to use their talents to make a positive impact where they live and work. We take pride in being a collaborative partner in our communities. We support hundreds of organizations throughout the year through employee volunteerism and charitable giving.

Employee Volunteering

Franklin Templeton’s global volunteer program, Involved, empowers employees to use their time, talent and skills to make positive changes in our communities. Led by the passion and dedication of employees in our local offices, Franklin Templeton volunteers take part in hundreds of community service projects annually. If you represent a nonprofit organization located near a Franklin Templeton office and would like to discuss volunteer opportunities that may be of interest to our employees, please contact involved@franklintempleton.com. Due to the volume of inquiries we receive, we are only able to respond to those that have strong potential for partnership.

Volunteers

Involved Impact Days

Each June, Franklin Templeton celebrates Involved Impact Days, our global dedicated month of volunteering where employees around the world put in an extra effort to participate in community service projects. This annual tradition reflects the diverse interests of Franklin Templeton employees, and is a true demonstration of the inspiring partnerships that have been created with community organizations all over the world.

Involved Impact

Corporate Giving

As part of our commitment to enhancing the communities where our employees live and work, Franklin Templeton supports nonprofit organizations through a variety of programs, with an emphasis on supporting causes that our important to our employees.

We strive to make it easier for our staff to get involved in their communities by offering a volunteer paid time off (VPTO) policy, a global Matching Gifts and Donations for Doers program, as well as a community grants initiative. In addition, the company sponsors a select number of charitable events and activities, on a proactive basis and by invitation only. Please contact giving@franklintempleton.com with any questions.

Our culture of integrity is a core part of our business. For over 70 years, Franklin Templeton has been a trusted partner to our clients and our stakeholders. We build trust through our commitment to responsible corporate practices, firmly rooted in our principles of accountability, honesty, integrity and ethics.

Corporate Governance

The Board of Directors of Franklin has adopted comprehensive corporate governance policies and processes designed to safeguard our business and protect the interests of our stockholders. Our Board of Directors is comprised of a diverse group of distinguished leaders.

Corporate Governance

The Corporate Governance Guidelines and committee charters adopted by our Board of Directors reflect regulatory requirements, New York Stock Exchange listing standards and applicable law. We are committed to ensuring a culture of compliance with our corporate governance standards and requirements. Learn more about the Franklin Resources Board of Directors and our commitment to Corporate Governance.

Code of Ethics and Business Conduct

Our Code of Ethics and Business Conduct is a roadmap for how we expect all Franklin Templeton employees to work with integrity and respect the trust that fund shareholders and company stockholders have placed in us. The code demands that all officers, directors and employees conduct themselves in a lawful, honest and ethical manner. It summarizes the values, principles and practices that guide how we conduct our business. Learn more about our Code of Ethics and Business Conduct.

The company provides a Compliance and Ethics Hotline for reporting legal or ethical violations and complaints regarding accounting, internal accounting controls or auditing matters. The hotline is maintained by an independent third-party company to ensure confidentiality and the firm has a policy in place to protect those who report any misconduct (commonly known as “whistleblower protection”).

In addition, the company has a corporate Ombudsman to whom all employees may convey concerns about business matters that they believe might involve matters of ethics or questionable practices.

Compliance

The culture of compliance at Franklin Templeton starts from the top, with support from senior management and oversight by the firm’s Head of Global Regulatory Compliance. Franklin Templeton’s Regulatory Compliance Group is responsible for ensuring that the firm has the appropriate processes and procedures in place to comply with the extensive and complex, overlapping and frequently changing rules and regulatory requirements applicable to the firm and the funds we manage around the world. The team works with business unit management to make sure that each business unit's compliance program has strong controls and is operating effectively.

Maintaining and developing a culture of compliance in a highly regulated and varied global environment is a complex task. The growth within Global Compliance has mirrored the company’s growth in countries around the world to ensure that local regulatory requirements are met. Less developed regulations in some markets have provided the firm with the opportunity to play a crucial role in working with local regulators to explore global best practices that can potentially influence and improve the development of future regulations in such markets.

Compliance Education and Training

The objective of compliance education at Franklin Templeton is to provide employees across the globe with learning opportunities and obligations that will enable them to act in the most ethical manner. It is intended to support their ability and enhance their understanding of various subject matters so that they can act in compliance with the Franklin Templeton standards of honesty and integrity, and with a strong commitment to adhering to our internal practices and policies. All employees (full-time and part-time) and contractors are required to regularly complete ethics training.

A cross-functional group of compliance and training experts within Franklin Templeton form the Compliance Education team. This team works with compliance entities globally to ensure that Franklin Templeton's regulatory training requirements are met each year. These regulatory requirements may be specific to an employee’s job duties, their access to certain system applications, or to the country in which they reside, or they may describe common standards and expectations that apply to all employees.

Privacy

When shareholders invest, they are entrusting us to protect their sensitive information while we help them achieve their financial goals. We place a high priority on maintaining information security to protect our customers and their investments.

To ensure that our shareholders understand our commitment to their privacy, our Privacy Notice is sent to all new shareholders and annually to existing shareholders. This document outlines our approach to safeguarding our shareholders’ confidential information including how our Transfer Agent manages “non-public personal” information, our disclosure policy, and employee confidentiality and system security.

Enterprise Risk Management

Risk management is a critical element of Franklin Templeton’s everyday business activities and takes place at all levels of our organization. The Enterprise Risk Management function is responsible for identifying key enterprise risks and related measures, controls monitoring programs and trends. All of the company’s risk functions report into our Chief Risk and Transformation Officer. The Chief Risk and Transformation Officer meets at a minimum four times annually with the Audit Committee or Board of Directors, providing for consistent and transparent communication and ongoing reporting on enterprise risk management processes, findings and trends. More detailed information on Franklin Templeton’s risk functions can be found in the current CSR report here.

Anti–Money Laundering Program

Franklin Templeton is firmly committed to international efforts to combat money laundering and the funding of terrorist and criminal activities, and as such it makes every effort to remain in full compliance with all applicable anti–money laundering (“AML”) and anti–terrorist financing (“ATF”) laws, rules and standards adopted in the jurisdictions in which it does business. Learn more about our Anti-Money Laundering & Sanctions Programs.

More information on Franklin Templeton’s Responsible Corporate Practices can be found in the CSR report here.