Franklin Templeton Comments on ASCOR’s First Public Investor Framework To Assess Sovereign Bond Issuers on Climate Change
While investors are making commitments to significantly reduce the greenhouse gas emissions associated with their investment portfolios, ESG measurement and standardisation remains a problem. For instance, currently there is no universally coherent way to assess sovereign debt from a climate change perspective. This means investors do not have consistent data for their financial analysis; their ability to have informed engagement with and to support national climate action is constrained; and, subsequently, the climate-related investment case is unclear.
ASCOR (Assessing Sovereign Climate-related Opportunities and Risks) has been designed to address this gap. As the first tool of its kind, ASCOR can help investors assess sovereign exposure to climate risk and engender greater transparency between issuers, financial institutions, and relevant stakeholders.
As a member of the ASCOR Project Advisory Committee, David Zahn, Head of European Fixed Income and Co-Head of the Stewardship and Sustainability Council at Franklin Templeton said:
“Climate change analysis of sovereign bonds is a familiar and complex challenge for investors who seek to obtain consistent and reliable data across different countries and income levels. We believe the launch of ASCOR Project’s new assessment framework designed to assess sovereign bond issuers on climate change is a great step in the right direction for investors. This will enhance collaboration and improve investors’ knowledge of the climate-related risks impacting different countries which we believe will result in stronger engagement with countries to create favourable outcomes for portfolios as well as the world.”
For further information: ASCOR Consultation to Assess Sovereign Debt Issuers on Climate Change | News and press | PRI (unpri.org)
About Franklin Templeton
Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 155 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialization on a global scale, bringing extensive 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 over 75 years of investment experience and approximately $1.4 trillion in assets under management as of December 31, 2022. For more information, please visit franklinresources.com and follow us on LinkedIn, Twitter and Facebook.
