ClearBridge Investments Extends Its Long History of ESG Integration

Annual stewardship report highlights ClearBridge's active ownership and philanthropic initiatives

NORTHAMPTON, MA / ACCESSWIRE / April 30, 2024 / ClearBridge Investments, a leading global equity manager with $188 billion in assets under management, released its seventh annual Stewardship Report for the 2023 year, detailing its approach to creating shareholder value through the incorporation of environmental, social and governance (ESG) factors into its investment process. ClearBridge, a Franklin Templeton company, has used ESG integration as a core part of its active management approach for more than 35 years.

"Harnessing innovation to advance sustainability priorities and partnering with portfolio companies to drive progress for shareholders remain central to what we do," said Terrence Murphy, Chief Executive Officer of ClearBridge Investments.

"It is important to reflect on how essential public companies are to the innovation that improves life on earth. Three-quarters of emission reductions needed for net zero will be from technology that is not yet commercial," said Mary Jane McQuillen, Head of ESG and Portfolio Manager. "ClearBridge is seeing the potential for potential for new investment opportunities addressing nature-related risks, with new business models reducing demand for high-impact commodities, responsibly managing land and sea ecosystems, reducing pollution or enabling decarbonization."

2023 Highlights

In 2023, ClearBridge earned top scores across all three categories of the U.N.-supported Principles for Responsible Investment (PRI) reporting assessment, scoring well above the median for the PRI universe. ClearBridge has been a PRI signatory since 2008.

In November 2023, ClearBridge joined a group of international investors representing $4.5 trillion in assets under management and advisement to sign the Interfaith Center on Corporate Responsibility's Living Wage Statement calling on U.S. companies to take steps toward paying a living wage to both direct and contract workers in line with international human rights standards.

ClearBridge also made updates to its ESG policy to increase its focus on several material topics and bolster ESG oversight of its portfolio companies. These updates included articulating a clear biodiversity policy and formally endorsing internationally recognized standards and frameworks on human rights, such as the U.N. Guiding Principles on Business and Human Rights (UNGPs), the OECD Guidelines for Multinational Enterprises and the U.N. Global Compact.