ESG & SUSTAINABILITY

IMPLEMENTATION AT PGIM

ESG INTEGRATION

At PGIM, we believe that leveraging our asset class expertise to develop asset class specific ESG frameworks represents a credible approach to ESG integration from both a fiduciary and a client perspective. As such, economically material ESG considerations are embedded throughout our investment processes as appropriate to deliver investment performance to our clients. As of year-end 2024, considerations of financially material ESG risks and opportunities have been integrated into the investment processes for 89% of PGIM’s total AUM.

ESG STRATEGIES & SOLUTIONS

PGIM seeks to offer a broad range of investment capabilities across public, private, and alternative asset classes. This includes a variety of ESG/sustainability and climate-focused options which are tailored to our clients preferences, objectives and needs.

Climate Risk/Impact Analysis

As climate risks get reflected in market prices over time, we must understand and seek to manage climate-related risks in our portfolios, as well as actively identify opportunities for alpha generation along the path to a low carbon economy.
 

We are committed to supporting our clients by addressing these climate-related risks, capturing climate-related opportunities and/or meeting clients’ specific decarbonization goals. We believe a longer-term perspective and robust investment analysis is important to develop the nimbleness and foresight to seize the opportunities and navigate the risks of changing climate.

Investment Stewardship

Active stewardship, aimed at preserving and enhancing the value of our clients’ investments, is a fundamental part of the investment processes of all our investment management businesses.
 

We believe that, when done well, the discussions we have with companies we invest in, our borrowers, and our tenants allow us to learn from each other and to share perspectives on key issues and debate of relevance to our investments.

PGIM Fixed Income ESG Engagement by Region as of December 2023

ESG INVESTING AT PGIM

As active investors, we strive to embed material ESG risk and opportunities into our investment processes.