ESG Investing
in Fixed Income

PIMCO is committed to the integration of Environmental, Social and Governance (ESG) factors in our investment process and developing innovative ESG solutions for clients.

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ESG Fixed Income Strategies

PIMCO manages a range of ESG-focused mutual funds and separate accounts founded on the belief that it’s possible to achieve both attractive financial returns and positive change. Our Climate Bond Strategy was awarded ESG investment of the year for fixed income in 2020.*

View all ESG Funds

Latest ESG Insights

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The New Sustainable Finance Principles
Sustainability in Bond Markets Amid COVID-19: ESG in Focus
Social at the Center of ESG
Public-Private Solutions to Safeguard Economies Everywhere

ESG Policy Statement & Updates

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PIMCO ESG Platform

In 2017 PIMCO launched a range of dedicated fixed income ESG strategies combining ESG-focused portfolio construction with active engagement and transparent reporting.

Targeting Performance and Positive Change

Exclude

Restrict investment in issuers fundamentally misaligned with sustainability practices

Examples of exclusions

  • Controversial weapons
  • Tobacco
  • Pornography
  • Coal

Evaluate

Emphasize best-in-class ESG issuers and prime ESG engagement candidates in portfolio construction

Attributes of best-in-class issuers

  • Good environmental practices
  • Strong corporate governance
  • Industry-leading social policies

Engage

Engage collaboratively with issuers to change ESG-related business practices

Sample engagement questions

  • Are you developing a framework for climate risk reporting?
  • What is your policy on parental leave?
  • Do you have a culture and conduct committee?

Engagement & Impact

Within PIMCO’s dedicated ESG strategies, we focus on identifying and engaging with companies that have the ability and willingness to improve ESG-related business practices. We believe that successful engagement has the potential to lower credit risk, unlock value and influence change.

HOW WE BRING ESG INTO ACTION AS BONDHOLDERS

 
 
 
 
 
 

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Disclosures

A word about riskAll investments contain risk and may lose value. There is no guarantee that socially responsible investing (SRI) products or strategies will produce returns similar to traditional investments. 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 the current low interest rate environment increases this risk. Current 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. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested.

Socially responsible investing is qualitative and subjective by nature, and there is no guarantee that the criteria utilized, or judgment exercised, by PIMCO will reflect the beliefs or values of any one particular investor.  Information regarding responsible practices is obtained through voluntary or third-party reporting, which may not be accurate or complete, and PIMCO is dependent on such information to evaluate a company’s commitment to, or implementation of, responsible practices.  Socially responsible norms differ by region.  There is no assurance that the socially responsible investing strategy and techniques employed will be successful.  Past performance is not a guarantee or reliable indicator of future results. 

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. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission.

*PIMCO Climate Bond Strategy was awarded ESG investment initiative of the year (fixed income) in Environmental Finance’s 2020 Sustainable Investment Awards. The Environmental Finance Sustainable Investment Awards seek to recognize and highlight the work of asset managers and key players incorporating ESG across all asset classes and winners are selected by an advisory panel consisting of industry experts chosen for their knowledge, objectivity and credibility along with the Environmental Finance editorial team, whom will review the submitted entry material. Judges score each entry individually and any conflict of interest will be removed, the judge’s score will be confidential.

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