Impact Report 2026

Foreword

The global economy is navigating a period of heightened uncertainty, shaped by climate change, resource constraints, geopolitical tensions and rapid technological transformation. In this environment, resilience has become a defining characteristic of long-term economic stability and sustainable  value creation.

At Franklin Templeton Fixed Income (FTFI), we believe sustainable investing and resilience are intrinsically linked. By directing capital towards solutions that strengthen energy systems, infrastructure, ecosystems and communities, investors can support both sustainability objectives and the capacity of economies to adapt to an evolving risk landscape.

This report highlights how our sustainable investments contributed to resilience across environmental, social and economic dimensions. The outcomes demonstrate the role of capital in supporting renewable energy, sustainable infrastructure, biodiversity conservation, climate adaptation, health care, affordable housing, financial inclusion and employment generation, all of which help strengthen the foundations of long-term prosperity.

A key theme throughout the report is that resilience is multidimensional. Climate resilience depends not only on reducing emissions, but also on strengthening adaptation capabilities and safeguarding natural capital. Economic resilience relies on modern infrastructure, innovation and resource efficiency, while social resilience is built through access to employment, health care, education, housing and financial services. These interconnected challenges reinforce the importance of a holistic approach to sustainable investing.

The results presented reflect this perspective. Significant allocations supported the transition to a lower-carbon economy through renewable energy, clean transportation, energy efficiency and green buildings. At the same time, capital was channelled towards climate adaptation, water management, biodiversity protection and initiatives that expand economic opportunity and access to essential services.

For fixed income investors, resilience is an increasingly important lens through which to assess long-term risks and opportunities. Issuers that invest in resilient infrastructure, resource stewardship, human capital and environmental sustainability may be better positioned to navigate changing market conditions and create durable value over time.

As sustainability reporting continues to evolve, we remain committed to strengthening the quality, transparency and consistency of our analysis. Robust measurement is essential to understanding how capital contributes to real-world outcomes and to helping investors assess the broader implications of their investment decisions.

We hope this report demonstrates how sustainable finance can support more resilient communities, economies and natural systems. Through disciplined capital allocation and a focus on measurable outcomes, we believe investors can help build the foundations for long-term prosperity in an increasingly uncertain world.