Understanding the Climate Change Challenges Facing Consumer Goods Companies

As an active investment manager with a firm commitment to integrating environmental, social and governance analysis into its investment processes, Franklin Templeton recognizes its responsibility to raise awareness of climate transition issues. Working alongside the Carbon Disclosure Project, Franklin Templeton recently co-hosted a roundtable event on consumer goods companies’ preparations for the low-carbon transition. Here, Julie Moret, Head of ESG at Franklin Templeton, reports back from the event.

Amid all the analysis of the recent European parliamentary elections, the strong support for the Green Party was an underappreciated development.

We think the Green Party’s success—it secured 69 seats and is the fourth-largest party in the parliament—is likely to bring further momentum to climate-focused initiatives and policy directions already underway in Europe and across the globe.

As active investment managers, we have a responsibility to understand the implications that these political and societal shifts mean in terms of risks and opportunities for our portfolios.

But equally important, we have a central role in raising awareness of climate transition issues, not only within the investment management industry and among our peers, but with corporates through our engagement activities to ensure the resiliency of the companies and issuers that we invest in.

As part of that responsibility, we play an active role participating in industry events and supporting initiatives. We recently hosted an investor roundtable on behalf of the Carbon Disclosure Project (CDP).

Investors, asset managers and bond issuers attended the event, which included speakers from Franklin Templeton as well as Heineken, the Ellen MacArthur Trust and the CDP, which unveiled its latest report: Fast Moving Consumers: Which Consumer Goods Companies Are Ready for the Low-Carbon Transition?