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Sustainable investing is entering a new era. We believe that global bond markets and fixed income investors will be a meaningful force in driving sustainable change. Read our latest views in our ESG Report.
socially responsible and ESG Assets under managementFootnote2
of holdings of corporate bond issuers engaged on ESG (in 2021)Footnote3
scores across 4 out of the 5 relevant PRI 2021 ModulesFootnote1
Case studies of engagement with bond issuers, industry groups, and clients
PIMCO’s approach to considering material ESG factors in bond markets
An educational overview of the ESG Bond market including green, social, and sustainability-linked bonds
Annual update on PIMCO’s progress in the critical areas of sustainability and corporate responsibility
PIMCO’s ESG portfolio management team outlines best practices for green, social, sustainability or sustainability-linked bonds.
1 Results from PRI's 2021 reporting cycle. Reported as of September 2022. SOURCE: PIMCO, PRI.
PRI Assessment Reports are limited to signatories’ of the Principles for Responsible Investment (PRI), and consider a signatory’s responsible investment implementation across its overall investment process, among other factors. PRI Assessment scores are provided per module or asset class, with no overall organization score given. PIMCO’s scores reflect information and data reported by PIMCO to PRI in the 2021 reporting cycle (as of December 31, 2020). Please note that publication of the 2021 public transparency reports was delayed due to changes in PRI’s reporting and assessment process. PRI’s 2021 scoring methodology has changed to reflect the new Reporting Framework. Scores for the 2021 reporting cycle are not comparable to previous years. Prior to 2021, PRI assessments were awarded scores based on a scale from A+ to E, with A+ being highest score and E being the lowest. PRI Assessments awarded from 2021 onward are based on a scale of 1-5 Stars. 1 Star being the lowest score, 5 Stars being the highest. For 2021 Methodology and an overview of the PRI Reporting Framework, please refer to https://dwtyzx6upklss.cloudfront.net/Uploads/j/l/f/assessmentmethodology2021_302746.pdf. For additional information regarding how PRI assesses signatory reporting, please refer to https://www.unpri.org/reporting-and-assessment/how-investors-are-assessed-on-their-reporting/3066.article.
Median scores for modules are calculated as the 50th percentile module percentage score. The dataset and methodology of medians based on PRI signatories' scores can be referenced at https://ctp.unpri.org/dataportalv2/2021_AR_Medians.xlsx.
PIMCO’s 2021 PRI Transparency Report is available on PRI’s website at https://ctp.unpri.org/dataportalv2/transparency and includes PIMCO’s responses to all mandatory indicators, as well as responses to voluntary indicators that PIMCO has agreed to make public. PIMCO’s PRI Assessment Report is available upon request.
The PRI is an investor initiative in partnership with UNEP Finance Initiative and UN Global Compact. return to content↩
2 The figure includes 1) Third party ESG AUM with (i) specified ESG-linked objectives (“ESG” portfolios); or (ii) a focus on a sustainability-related theme (“thematic portfolios”). 2) third party Socially Responsible AUM (negative screened portfolios), which consists of PIMCO-sponsored funds and separate accounts with more than one client-driven values-based exclusion (“socially responsible portfolios”); and 3) Allianz ESG and Socially Responsible AUM. Source: PIMCO. As of 9/30/2022 return to content↩
3 Calculated as % by par-adjusted Firm AUM. Corporate issuer is defined as a non-government legal entity that develops, registers and sells securities to finance its operations. The statistic relates solely to the in-depth engagement activities by PIMCO's ESG analysts.return to content↩
All investments contain risk and may lose value. Investing in the bond market is subject to risks, including market, interest rate, issuer, credit, inflation risk, and liquidity risk. The value of most bonds and bond strategies are impacted by changes in interest rates. Bonds and bond strategies with longer durations tend to be more sensitive and volatile than those with shorter durations; bond prices generally fall as interest rates rise, and low interest rate environments increase this risk. Reductions in bond counterparty capacity may contribute to decreased market liquidity and increased price volatility. Bond investments may be worth more or less than the original cost when redeemed.
PIMCO is committed to the integration of Environmental, Social and Governance ("ESG") factors into our broad research process and engaging with issuers on sustainability factors and our climate change investment analysis. At PIMCO, we define ESG integration as the consistent consideration of material ESG factors into our investment research process, which may include, but are not limited to, climate change risks, diversity, inclusion and social equality, regulatory risks, human capital management, and others. Further information is available in PIMCO's Environmental, Social and Governance (ESG) Investment Policy Statement.
ESG investing is qualitative and subjective by nature, and there is no guarantee that the factors utilized by PIMCO or any judgment exercised by PIMCO will reflect the opinions of any particular investor, and the factors utilized by PIMCO may differ from the factors that any particular investor considers relevant in evaluating an issuer's ESG practices. In evaluating an issuer, PIMCO is dependent upon information and data obtained through voluntary or third-party reporting that may be incomplete, inaccurate or unavailable, or present conflicting information and data with respect to an issuer, which in each case could cause PIMCO to incorrectly assess an issuer's business practices with respect to its ESG practices. Socially responsible norms differ by region, and an issuer's ESG practices or PIMCO's assessment of an issuer's ESG practices may change over time. There is no assurance that the ESG investing strategy or techniques employed will be successful. Past performance is not a guarantee or reliable indicator of future results.
PIMCO as a general matter provides services to qualified institutions, financial intermediaries and institutional investors. Individual investors should contact their own financial professional to determine the most appropriate investment options for their financial situation. This material contains the opinions of the managers and such opinions are subject to change without notice. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. PIMCO is a trademark of Allianz Asset Management of America L.P. in the United States and throughout the world. ©2022, PIMCO.