ESG Principles: How Sustainable Investing Is Changing the World

Investors are increasingly turning to companies at the forefront of sustainability. Yet the simultaneous proliferation of ESG investment vehicles has left many unsure of the best direction in which to turn.

In the upcoming webcast, ESG Principles: How Sustainable Investing Is Changing the World, Katherine Collins, Head of Sustainable Investing, Putnam Investments, will focus on strategies that seek to invest in companies aligned with investors’ investment and sustainability goals.

Putnam Investments recently entered into the world of ETFs, launching two ESG-related strategies, including the Putnam Sustainable Future ETF (PFUT) and the Putnam Sustainable Leaders ETF (PLDR).

Both PLDR and PFUT are actively managed ETFs that utilize the semi-transparent Fidelity fund model. They also incorporate Putnam’s proprietary sustainability ratings system and criteria to invest in top ESG-rated companies. PLDR focuses on companies that are currently demonstrating leadership in sustainability efforts, while PFUT focuses on those finding solutions to sustainability challenges for the future via their products and services.

Specifically, Putnam Sustainable Leaders ETF invests in companies whose focus on ESG issues goes well beyond just basic compliance, and for whom ESG is an integral part of their long-term successes. These companies have transparent goals and provide consistent, measurable progress updates. PLDR invests larger percentages of its portfolio in fewer stocks, and the companies exhibit creative, proactive leadership in the sustainability issues that create long-term success, both for the company itself and their broader communities.

Additionally, the Putnam Sustainable Future ETF invests in companies that provide solutions to future sustainability challenges. It is a forward looking approach as these companies are helping to develop ESG and solve problems related to sustainability. PFUT focuses on impact companies as identified in its sustainability rating system, investing in companies driving economic development, as Putnam believes that strong sustainability practices equate to strong financial growth.

Financial advisors who are interested in learning more about sustainable investments can register for the Thursday, August 12 webcast here.