Environmental, Social and Governance (ESG) investing means different things to different people. Investors looking to diversify their portfolios with responsible and sustainable investments require more than one-size-fits-all strategies. Moreover, they should be able to choose ESG investments without tempering return expectations. While there is no “right way” to approach ESG investing, we actively manage for ESG opportunities and risks, positioning our clients for long-term success.
INTEGRATING ESG ACROSS ASSET CLASSES
We bring deep investment expertise across asset classes and provide our clients with investment solutions to their ESG and sustainability challenges.
PGIM FIXED INCOME
JENNISON ASSOCIATES
PGIM QUANTITATIVE SOLUTIONS
PGIM REAL ESTATE
IDENTIFYING SUSTAINABLE, LONG-TERM COMPETITIVE ADVANTAGES
PGIM Fixed Income recognises the importance of including ESG factors in its global investment process. ESG factors are integrated into fundamental analysis and reflected in a proprietary ESG impact ratings framework.
PRINCIPLE-BASED APPROACH
PGIM Fixed Income is aligned with the world’s leading proponents of responsible and sustainable investing, implementing the Principles of the UN Global Compact (UNGC) and the UN Sustainable Development Goals (SDGs). It also utilises its own proprietary climate-alignment tool.
This committee acts as the governing body for directing and overseeing all ESG-related activities. Among its duties are expanding policies and procedures that integrate ESG factors into the investment process and instituting and maintaining guidelines for ESG-related funds.
ESTABLISHED THE PGIM FIXED INCOME ESG COMMITTEE
PGIM Fixed Income operates a range of different fund structures where it has ESG variants, as well as broad-market variants.
MEETING CLIENT NEEDS
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Since 2020
Since 2020
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Policies and guidelines have been developed to address a variety of issues, including sustainability issues. Jennison Associates participates in all proxy votes in a manner consistent with its fiduciary responsibilities, seeking to vote in alignment with clients’ best economic interests over the long-term.
PROXY VOTING POLICIES AND GUIDELINES
During a typical year, Jennison’s investment professionals engage with thousands of company managements on a variety of topics, including material ESG issues. As active investors, Jennison seeks to build constructive long-term relationships with companies’ management teams and their boards.
ENGAGEMENT
Fundamental research is the cornerstone of Jennison’s investment process. To build financial estimates for individual companies, we consider the potential risks and opportunities of various factors, including sustainability factors, assessing their materiality in affecting a company’s financial prospects or business model.
fundamental research
At Jennison Associates, our primary objective is to generate superior long-term performance for our clients with integrity and in accordance with our fiduciary responsibility.
EVALUATING SUSTAINABILITY RISKS AND SUPPORTING CLIENT INTERESTS
JENNISON ASSOCIATES
PGIM FIXED INCOME
Since 2020
PQS advocates for accountability across the investment community, while its approach to ESG investing evolves via new data, insights and techniques.
ADVOCATE FOR ACCOUNTABILITY
PQS participates in the Council of Institutional Investors (CII), International Corporate Governance Network (ICGN), Sustainability Accounting Standards Board (SASB), and Investor Advisory Group (IAG). PQS also adheres to the Task Force on Climate-Related Financial Disclosures and Japan’s Stewardship Code.
COMMITMENT TO DELIVERING BETTER ESG OUTCOMES
The PQS ESG framework evaluates, expands and integrates ESG insights to solve a variety of problems facing investors with different risk budgets, sustainability objectives and interests. It can be applied to investment strategies across the active risk-return spectrum.
COMPREHENSIVE ESG FRAMEWORK
The PGIM Quantitative Solutions (PQS) “client-first” approach aims to address challenges facing the responsible investor without compromising long-term risk mitigation or expected returns. PQS employs various tools that enable it to seek alternatives for investments with potential ESG exposure issues.
ESG INVESTMENTS FOR EVERY RISK AND RETURN BUDGET
PGIM QUANTITATIVE SOLUTIONS
Since 2020
ESG issues are foundational to the investment analysis and due-diligence processes. These include a rigorous underwriting regimen, risk-management evaluation and approval procedures.
ESG POLICY GUIDES ESG-RELATED OBJECTIVES
In addition to corporate grants and charitable contributions, PGIM Real Estate empowers its employees to volunteer their time and skills to initiatives that align with their interests, while increasing human potential, self-sufficiency, and diversity and inclusion. PGIM Real Estate invested more than $5 billion of equity across 146 properties with impact components since 2010.
SOCIAL AWARENESS
PGIM Real Estate advocates for operating practices and construction methods that protect human health and preserve biodiversity, increase the use of sustainable materials and renewable energy, and reduce waste and CO₂ emissions.
FOCUS ON THE ENVIRONMENT
PGIM Real Estate strives to embed ESG best practices, embracing corporate responsibility, fairness and transparency as it works to meet the needs of its global clients.
BUILDING BETTER OUTCOMES
PGIM real estate