SUSTAINABILITY

IMPLEMENTATION AT PGIM

Purpose

Integration of financially material sustainability-related 
factors into investment process

  • Analyzing sustainability-related factors to manage
    investment risk and identify attractive investment
    opportunities

Sustainability Solutions Based on Client Objectives:

  • Using a sustainability lens to invest in line with
    clients’ values, environmental and/or social preferences,
    or real-world impact objectives based on client choices

Implementation

  • Embedded in the core investment process, with financially material sustainability-related factors incorporated into data collection, investment analysis and due diligence.
  • Approach varies by business/ asset class and may involve fundamental and quantitative research, real estate, private equity and debt teams who are supported by sustainability teams.
  • Reflects unique features of respective asset classes, investment platforms and investment processes.
  • Applied where appropriate at the investment strategy, mandate or product level to help clients achieve their pre-defined sustainability goals or impact objectives.
  • Client driven and implemented by investment and ESG teams using a range of capabilities and tools (e.g., screening, analytical frameworks, research and assessment methodologies, investment products, etc.).
  • Reflects unique features of respective asset classes, investment platforms and investment processes. 

Consideration of Financially Material Sustainability Factors

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

SUSTAINABILITY 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.

EXPLORE ESG CAPABILITIES

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.

Download The PGIM annual Sustainability REPORT

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.

Sustainability-related engagements undertaken by Region, by the Fixed Income team, as of December 2023.

SUSTAINABILITY AT PGIM

As active investors, we strive to embed material sustainability-related risks and opportunities into our investment processes.

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