An update on our ESG scores
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In February 2018, Templeton Global Macro (TGM) published Global Macro Shifts issue 9—Environmental, Social and Governance Factors in Global Macro Investing [GMS-9]. The paper explored how we evaluate environmental, social and governance (ESG) factors in our macroeconomic research process, and described the process of codifying the team’s research discussions into quantifiable scores. GMS-9 formally introduced our proprietary ESG scoring system, the Templeton Global Macro ESG Index (TGM-ESGI). Going forward, we intend to publicly update our scores on a recurring basis. This paper is the first of these updates. It contains a brief background on our ESG philosophy and our scoring process, along with updated TGM-ESGI scores for 56 countries. We also include brief case studies for three countries that have improving projected scores and three countries with deteriorating projected scores