At PIMCO, we firmly believe that including material ESG factors into our fixed income investment process provides a well-rounded perspective.
Our analysts build two separate scores for our portfolios managers’ consideration.
First, analysts build a traditional credit score based on financially relevant factors. These factors include material ESG criteria and are integrated into our firm-wide investment process, as credit research is a cornerstone of our portfolio construction.
Second, and unique to ESG-dedicated strategies, our analysts build an ESG score. This score helps compare issuers on non-financial factors that may affect their long-term credit worthiness.
To construct our ESG-dedicated strategies, this second score evaluates the three pillars – environmental, social and governance –
and rates ‘E’, ‘S’ and ‘G’ according to a specific proprietary framework.
This step also takes peer assessment and trend analysis into consideration, which results in a quantifiable, comparable and actionable ESG score.
As an industry leader, we’re committed to keeping the momentum of ESG investing moving forward. We do it by keeping score.
Want to know more about how we do ESG? Visit us at pimco.com.
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 contains the opinions of the manager and such opinions are subject to change without notice. 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. Investors should consult their investment professional prior to making an investment decision. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed.
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