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.

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Latest ESG Insights

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Public-Private Solutions to Safeguard Economies Everywhere
PIMCO Enhanced Short Maturity Active ESG ETF (EMNT): Focusing on Sustainability in Short-Term Bonds
Strategy Spotlight

PIMCO Enhanced Short Maturity Active ESG ETF (EMNT): Focusing on Sustainability in Short-Term Bonds

PIMCO Enhanced Short Maturity Active ESG ETF (EMNT): Focusing on Sustainability in Short-Term Bonds

Investors seeking to influence positive change with their short-term assets may find an attractive option in the EMNT ETF, an ultra-short active bond strategy.

Dispatch From Davos: Sustainability in Sharp Focus
PIMCO Climate Bond Strategy: Investing in Sustainable Solutions

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.

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