Franklin Resources is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 155 countries. Through its specialist investment managers, the institution offers capabilities in fixed income, equity, alternatives, and multi-asset solutions. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has 75 years of investment experience and approximately USD 1.3 trillion in assets under management as of 2022.
Franklin Resources has a stewardship report where it describes its approach on sustainability themes and impact topics with clients and investees. The financial institution’s engagement policy includes a clear framework with success criteria and escalation points in the event that engagement with investees is unsuccessful. Moreover, the financial institution publishes a stewardship report describing how the engagement policy is applied in practice. The financial institution publishes case studies describing where it has engaged successfully withinvestees on sustainability themes and impact topics. Furthermore, Franklin Resources discloses a list of trade associations of which it is a member including sustainability- and non-sustainability-related organisations.
As a member of the Glasgow Financial Alliance for Net Zero, the financial institution has set a target of net-zero financed emissions by 2050. As a member of Climate Action 100+, Franklin Templeton discloses that it collectively engages with its clients on the topic of climate change.
Franklin Resources discloses the proportion of women in its total direct operations workforce for each employee category. The financial institution has a grievance mechanism accessible to all workers to raise human rights complaints or concerns. Furthermore, the financial institution has a policy prohibiting bribery and corruption. Franklin Resources provides a case study describing how it has acted on a salient human rights risk issue. The financial institution engages with stakeholders whose human rights have been or may be affected by its activities. In a public policy statement, the financial institution discloses its approach to lobbying and political engagement as well as its lobbying expenditures.
In terms of its approach to senior leadership accountability, there is no evidence that Franklin Resources links the remuneration of its executive or management teams to sustainability performance criteria. No evidence was found that the financial institution is committed to gender equality and women’s empowerment. Franklin Resources has an opportunity to disclose the proportion of women in senior leadership roles as well as how it addresses any gender pay gaps. The financial institutions has the opportunity to publish case studies describing where it has engaged unsuccessfully with investees on sustainability themes and impact topics.
The financial institution could disclose interim emissions reduction targets at the group level, such as a 45% reduction in financed emissions by 2030. Franklin Resources has an opportunity to disclose the key sectors and companies it has identified as priorities to engage with on climate change, specifically on the alignment with the Paris Agreement. There is no evidence that the financial institution discloses its financing activities devoted to climate solutions. Regarding nature and biodiversity, no evidence was found that the financial institution is committed to minimising its negative impacts or financing regenerative solutions.
There is no evidence tha Franklin Resources has a publicly available policy statement committing it to respect human rights laid out in the UNGPs and the ILO declaration on fundamental rights at work. The financial institution has an opportunity to describe a comprehensive process for identifying its human rights risks and impacts across all its activities, especially its financing activities. There is no evidence that the financial institution discloses the proportion of its total direct operations workforce for each employee category by age group. To provide transparency on financial inclusivity, the financial institution has an opportunity to disclose the amount of finance directed towards, for example, low-income developing countries.