Capitalizing on the moment: Nine ways new ESG reporting rules can help investors
PGIM’s global head of ESG offers ideas for a regulatory framework to bring clarity to investors.
Environmental, Social and Governance (ESG) investing means different things to different people. As investors look to diversify their portfolios with responsible and sustainable investments, they require more than one-size-fits-all strategies to meet their evolving needs, and shouldn’t be faced with compromised returns. While there is no “right way” to approach ESG investing, we actively manage for ESG opportunities and risks, positioning our clients for success in the long term.
At PGIM, we believe that doing the right thing for our clients, our people and our communities leads to better results for all stakeholders. We approach responsible investing in a manner that is consistent with Prudential Financial Inc.'s (PFI's) long-term commitment to sustainability. And, as active investors, we strive to embed ESG best practices throughout our investment, risk and talent management processes, while delivering investment performance and staying true to our role as a fiduciary and risk manager.
From protecting real estate assets from rising tides, to intensive scrutiny of bond issuers’ risk management practices, PGIM’s ESG investing report provides a comprehensive view of how PGIM incorporates environmental, social and governance factors into our investment processes. Using real life examples drawn from our investment portfolios, the report demonstrates how each of our autonomous asset management businesses has developed asset-class specific ESG approaches, analytical frameworks and research capabilities to identify investment risks and opportunities arising from our rapidly changing world, with the goal of providing transparency around our actions as fiduciaries for our clients.
PGIM’s strong foundation was built on delivering financial returns and making a positive impact on the world, and began over 145 years ago. Our parent company, PFI, is committed to solving the financial challenges of our changing world and is a recognized leader in purpose-driven business, investing and ESG practices.