To seek long-term investment growth, mainly through growth of capital, while contributing to climate change mitigation and adaptation. The Fund aims to contribute to the Paris Climate Agreement's long-term global warming target of 1.5 degrees primarily through investments in solutions to reduce greenhouse gas (GHG) emissions, and secondarily through investments in companies aligning their business with this low carbon scenario. The Fund mainly invests in equities of companies that provide solutions for the mitigation and/or adaptation of climate change risk and companies which are in the process of making their business models more resilient to long-term risks presented by climate change and resource depletion.

The Fund has a sustainable investment objective in accordance with Article 9 of the Sustainable Finance Disclosure Regulation (the “SFDR”).

In its implementation of the Fund’s environmental, social, governance (“ESG”) strategy, the Investment Manager pursues an environmental objective and invests in equity securities of global companies that provide solutions for the mitigation and/or adaption of climate change risk or which are in the process of making their business models more resilient to long-term risks presented by climate change and resource depletion.

The Fund measures the attainment of the sustainable investment objective by means of indicators and of its proprietary ESG ratings system and its research and engagement process further described in the website disclosure’s dedicated sections. The Fund also ensures that its sustainable investments do not cause significant harm to any environmental or social sustainable investment objective. As part of its investment decision making process, the Fund’s ESG strategy uses binding criteria for the selection of underlying assets and applies specific ESG exclusions.

Finally, amongst the portion of sustainable investments with an environmental objective, the Fund has a minimum allocation of 5% to sustainable investments aligned with the EU Taxonomy. The Fund ensures that this portion of the Fund’s portfolio meets the technical screening criteria of Commission Delegated Regulation (EU) 2021/2139^[1].

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^[1]Commission Delegated Regulation (EU) 2021/2139 regarding the technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to climate change mitigation or climate change adaptation.

• Seeking capital appreciation by investing in undervalued securities in a well-diversified global equity fund with the Euro as its base currency.
• Planning to hold their investment for the medium to long term.

The value of shares in the Fund and income received from it can go down as well as up and investors may not get back the full amount invested. Performance may also be affected by currency fluctuations. Currency fluctuations may affect the value of overseas investments.

• The Fund invests mainly in equity securities of companies throughout the world which recognize and adapt to the long-term financial risks and opportunities presented by climate change and resource depletion. Such securities have historically been subject to significant price movements that may occur suddenly due to market or company-specific factors. As a result, the performance of the Fund can fluctuate significantly over relatively short time periods.
• Other significant risks include: 
  Sustainability: The fund's integration of sustainability risks in the investment decision process may have the effect of excluding profitable investments from the investment universe of the fund and may also cause the fund to sell investments that will continue to perform well. A sustainability risk could materialise due to an environmental, social or governance event or condition which may impact the fund's investments and negatively affect the returns of the fund.
  Derivative Instruments risk: the risk of loss in an instrument where a small change in the value of the underlying investment may have a larger impact on the value of such instrument. Derivatives may involve additional liquidity, credit and counterparty risks.
  Emerging markets risk: the risk related to investing in countries that have less developed political, economic, legal and regulatory systems, and that may be impacted by political/economic instability, lack of liquidity or transparency, or safekeeping issues.
  Foreign Currency risk: the risk of loss arising from exchange-rate fluctuations or due to exchange control regulations.

For full details of all of the risks applicable to this Fund, please refer to the “Risk Considerations” section of the Fund in the current prospectus of Franklin Templeton Investment Funds.