Fixed On ESG, Ep. 5
Learn why an out-of-the-box approach to exclusions and Green Bonds could be inhibiting an investor’s success.
We believe in providing clients with an explicit choice of how to express their policies, views, and beliefs through their investments. When it comes to ESG investing, we recognize that there can be investor sensitivities that require our attention.
As a fundamental research-focused active manager, PGIM Fixed Income recognizes the importance of integrating environmental, social and governance factors in our global investment research, decision making and portfolio management. We consider relevant ESG factors in our investment process to work toward our ultimate fiduciary duty. The core tenets of our ESG philosophy and approach are as follows:
How do debt issuers impact the environment and society? How do we delineate what is good from what is bad for the planet and society? PGIM Fixed Income addresses these questions with our proprietary ESG Impact Ratings. Unlike credit ratings which are used to assess a company’s ability to repay debt, our ESG Impact Ratings assess how debt issuers impact the environment and society regardless of whether we feel those impacts are immediately credit material.
All investments involve risk, including the possible loss of capital. The value of investments can go down as well as up. For illustrative purposes only. There is no guarantee that these objectives will be met. The targeted excess returns are based on gross performance returns, unless otherwise noted, which do not reflect the deduction of investment advisory fees or other expenses. This information is delivered solely as reference material with respect to investment products that PGIM Fixed Income may offer in the future. PGIM Fixed Income is under no obligation to offer any such product. All strategy terms are subject to significant change without notice.