Today there is a greater awareness of how our investments impact the world around us, and that ESG underperformance is a myth. We believe that ESG best practices – such as environmental and product safety, workplace diversity and strong corporate governance – can contribute to long-term return while helping to manage risk.

 



LEGG MASON ESG APPROACHES – AS UNIQUE AS INVESTORS' NEEDS


Our family of expert independent investment affiliates provides strategies to help institutional and individual investors build portfolios that can incorporate ESG on many different levels, from specific products to ESG-aware processes. 

 

ESG Active Management

ESG Active Management

ClearBridge Investments offers ESG investment strategies across income, high active share and risk management, as well as customized portfolios.

ESG Factors Integrated into Investment Approach

ESG Environmental Factors

Martin Currie believes ESG is especially valuable in emerging markets where corporate governance standards are often more complicated.

 

Where appropriate, RARE incorporates environmental and other ESG factors into their cash flow forecasts and for revenues, expenses and capital expenditures.

Customized ESG Strategies

Customized ESG Strategies

Brandywine Global has managed customized equity and fixed income portfolios based on ESG and SRI criteria for more than 20 years.

Western Asset has offered customized portfolios since 1986. Today, portfolios include client-specified screening, sustainable bond portfolios and “Green” bond strategies.

ESG Awareness

ESG Awareness

Clarion Partners, a real estate specialist, fosters a culture of environmental responsibility and ensures that employees, tenants, partners and service providers have the tools and resources to make their properties more energy efficient.

EnTrustPermal asks its underlying managers to complete a pre-meeting questionnaire to determine if the manager complies with environmental, social and governance guidelines.


 

HOW WE PUT PRINCIPLES INTO PRACTICE

  • PRI (U.N. Principles for Responsible Investment). This year we have eight of our nine investment affiliates signed on to the initiative: Brandywine Global, Clarion Partners, ClearBridge Investments, EnTrustPermal, Martin Currie, RARE Infrastructure, Royce & Associates and Western Asset.
  • Dedicated and custom ESG products via managed accounts, custom portfolios or a traditional mutual fund structure. 
  • Affiliate-level ESG integration within investment process. Managers may use formal or informal ESG screening criteria.


EXPANDING CHOICE: STRATEGIES THAT ALIGN WITH STANDARDS


Interest in sustainable investing is on the rise as an increasing number of investors seek to blend their returns with their values. The specialized capabilities of our investment affiliates deliver strategies and solutions to help build a total ESG-aware portfolio – from equity to fixed income to alternatives. 

 

The investment process may change over time. The characteristics set forth above are intended as a general illustration of some of the criteria the strategy team considers in selecting securities for client portfolios. There is no guarantee investment objectives will be achieved.

Equity securities are subject to price fluctuation and possible loss of principal.

IMPORTANT INFORMATION: All investments involve risk, including loss of principal. Past performance is no guarantee of future results. Please see each product’s web page for specific details regarding investment objective, risks, performance and other important information. Review this information carefully before you make any investment decision.

Carefully consider a fund’s investment objectives, risks, charges and expenses before investing. Please view the prospectus or summary prospectus for this and other information. Read it carefully.

FINANCIAL ADVISORS: Please note that not all share classes may be available for sale at your firm. Please call the Legg Mason Sales Desk 1-800-822-5544 or your Legg Mason Sales contact for more information.

Separately Managed Accounts (SMAs) are investment services provided by Legg Mason Private Portfolio Group, LLC (LMPPG), a federally registered investment advisor. Client portfolios are managed based on investment instructions or advice provided by one or more of the following Legg Mason-affiliated sub-advisers: ClearBridge Investments, LLC and Western Asset Management Company. Management is implemented by LMPPG, the designated sub-advisor or, in the case of certain programs, the program sponsor or its designee.