PIMCO ESG Bond Funds

We believe the size of bond markets and recurring nature of debt issuance make fixed income investors a meaningful force in driving sustainable change.

in-page

PIMCO ESG Funds

Find sustainable fixed income strategies with PIMCO's range of ESG investing funds.

Our Industry-Leading Approach

Time tested: Our active ESG investment process takes the same rigorous approach applied to all PIMCO portfolios a step further by also pursuing sustainability objectives.

A+ PRI Ratings (2018, 2019, and 2020): PIMCO is committed to the integration of ESG factors in our investment process and we scored A+ across all Fixed Income categories in our Annual UNPRI Assessment Report.

PIMCO’s ESG Capabilities

We Aim to Be a Leader in ESG Fixed Income Investing

$627B

Sustainable Investment Assets under management

Over 80%

of holdings of corporate bond issuers engaged on ESG

A+

PRI Assessment Score (2018, 2019, and 2020) across all Fixed Income categories

Source: PIMCO. As of 6/30/2021

Sustainable Impact

By investing in PIMCO's GIS Climate Bond Fund as compared to the Bloomberg Global Aggregate Credit Index (SGD Hedged), your potential impact could be:

commentary icon

80x

More green, social, and other impact bonds than the index

commentary icon

75%

Reduction in carbon intensity compared to the index

commentary icon

100%

Renewable energy-based utilities sector holdings

commentary icon

64%

Engagement with corporate issuers in the Fund

PIMCO GIS Climate Bond Fund is being compared to the Bloomberg Global Aggregate Credit Index (SGD Hedged) as a well-known broad based bond index, to illustrate the Funds positive Environmental impact over a non-ESG broad market. The PIMCO GIS Climate Bond Fund is benched to Bloomberg MSCI Green Bond Index. The index may materially vary from the composition of the portfolio. It is not possible to invest directly in an unmanaged index.

Source: PIMCO. As of 6/30/2021

ESG Report and Policy Statement

Annual ESG Investing Report

Case studies of engagement with bond issuers, industry groups, and clients

Download

ESG Investment Policy Statement

PIMCO’s approach to considering material ESG factors in bond markets

Download
More Resources

ESG Bonds 101

An educational overview of the ESG Bond market including green, social, and sustainability-linked bonds

Explore Now

Disclosures

Singapore
PIMCO Asia Pte Ltd
8 Marina View, #30-01 Asia Square Tower 1 Singapore 018960
65-6491-8000
Registration No. 199804652K

PIMCO Asia Pte Ltd is regulated by the Monetary Authority of Singapore as a holder of a capital markets services license and an exempt financial adviser. The asset management services and investment products are not available to persons where provision of such services and products is unauthorised.

* PIMCO is committed to the integration of Environmental, Social and Governance ("ESG") factors into our broad research process and engaging with issuers on sustainability factors and our climate change investment analysis. At PIMCO, we define ESG integration as the consistent consideration of material ESG factors into our investment research process, which may include, but are not limited to, climate change risks, diversity, inclusion and social equality, regulatory risks, human capital management, and others. Further information is available in PIMCO's Environmental, Social and Governance (ESG) Investment Policy Statement.

With respect to comingled funds with sustainability objectives ("ESG-dedicated funds"), we have built on PIMCO's 50-year core investment processes and utilize three guiding principles: Exclude, Evaluate and Engage. In this way, PIMCO's ESG-dedicated funds seek to deliver attractive returns while also pursuing strategies that PIMCO believes may help achieve positive ESG outcomes. Please see each ESG-dedicated fund's prospectus for more detailed information related to its investment objectives, investment strategies and approach to ESG.

1 Source: UNPRI. UNPRI assessment report limited to asset managers signed up to the Principles for Responsible Investment (PRI) and based on how well ESG metrics are incorporated into their investment processes. UNPRI Transparency Reports are available at https://stpublic.blob.core.windows.net/pri-ra/2020/Investor/Public-TR/(Merged)_Public_Transparency_Report_PIMCO_2020.pdf . Prior to 2021, PRI assessments were awarded scores based on A+ - E scale. A+ being highest score, while E being the lowest. PRI Assessments awarded from 2021 onward are based on a scale of 1-5 Stars. 1 star being the lowest score, 5 stars being the highest. For methodology prior to 2021, please refer to: https://www.unpri.org/reporting-and-assessment/how-to-access-reported-data/3073.article#downloads. For 2021 Methodology, please refer to https://dwtyzx6upklss.cloudfront.net/Uploads/v/g/y/2021_assessmentmethodology_jan_2021_403875.pdf.

2 Sustainable Investment AUM includes third party and Allianz Socially Responsible AUM (negative screened portfolios), ESG AUM (portfolios with ESG objectives) and thematic AUM. $ referenced above is in USD.

3 Calculated as % by par-adjusted Firm AUM. Corporate issuer is defined as a non-government legal entity that develops, registers and sells securities to finance its operations. The statistic relates solely to the in-depth engagement activities by PIMCO's ESG analysts.

4 Calculated as % AUM of green, social, and other impact bonds as compared to the index. Green bonds are defined as bonds with use-of-proceeds devoted to environmental projects. Social bonds are defined as bonds with use-of-proceeds devoted to social projects or activities that achieve positive social outcomes and/or address a social issue. Impact bonds are defined as bonds with use-of-proceeds used to finance or re-finance a combination of green and social projects or activities. Impact bonds also include sustainability-linked bonds, which are bonds structurally linked to the issuer's achievement of climate or broader goals.

5 Carbon intensity calculated using the weighted average of corporate holding in the portfolio, rather than total portfolio metrics. Carbon Intensity is defined as the weighted average Carbon emissions (Scope 1 + Scope 2 emissions in tCO2e)/Revenues in USD. Scope 1 emissions are direct emissions from a company while Scope 2 are in direct emissions from the generation of purchased energy. Green bonds from Utilities that have aligned their business models to meet the Paris Agreement targets are treated as zero carbon emissions and therefore, zero carbon intensity given their financing of renewable projects and issuer commitments. Green bonds from non Paris aligned Utilities receive 10% of the issuer's carbon metrics given the financing of renewable energy, while recognizing the issuer's more limited commitments. For all other green bonds, carbon metrics from the issuer are passed to the green bond. Source: MSCI. Reported by companies or estimated. Corporate bonds only. Carbon Intensity is defined as the weighted average Carbon emissions (Scope 1 + Scope 2 emissions in tCO2e)/Revenues in USDm. Scope 1 emissions are the direct emissions of a company. Scope 2 emissions are indirect carbon emissions. Absolute carbon emission analysis takes the total emission per issuer into consideration. Utilities' Green Bonds are given 10% of the parent company's CO2e intensity. Paris-Aligned green bonds are treated as zero carbon emissions and therefore, zero carbon intensity given their financing of 100% renewable projects and issuer commitments. Green bonds in the utilities sector receive 10% of the issuer's carbon metrics given the financing of 100% renewable energy, while recognizing the issuer's more limited commitments. For all other green bonds, carbon metrics from the issuer are passed to the green bond.

6 Universe is based on utilities sector holdings. 100% of the fund's utilities sector exposure is in renewable energy-based utilities, calculated as % by par-adjusted AUM.

7 Calculated as % by par-adjusted Fund AUM. The statistic relates solely to the in-depth engagement activities by PIMCO's ESG analysts.

All investments contain risk and may lose value. Investing in the bond market is subject to risks, including market, interest rate, issuer, credit, inflation risk, and liquidity risk. The value of most bonds and bond strategies are impacted by changes in interest rates. Bonds and bond strategies with longer durations tend to be more sensitive and volatile than those with shorter durations; bond prices generally fall as interest rates rise, and low interest rate environments increase this risk. Reductions in bond counterparty capacity may contribute to decreased market liquidity and increased price volatility. Bond investments may be worth more or less than the original cost when redeemed.

PIMCO is committed to the integration of Environmental, Social and Governance ("ESG") factors into our broad research process and engaging with issuers on sustainability factors and our climate change investment analysis. At PIMCO, we define ESG integration as the consistent consideration of material ESG factors into our investment research process, which may include, but are not limited to, climate change risks, diversity, inclusion and social equality, regulatory risks, human capital management, and others. Further information is available in PIMCO’s Environmental, Social and Governance (ESG) Investment Policy Statement.

ESG investing is qualitative and subjective by nature, and there is no guarantee that the factors utilized by PIMCO or any judgment exercised by PIMCO will reflect the opinions of any particular investor, and the factors utilized by PIMCO may differ from the factors that any particular investor considers relevant in evaluating an issuer’s ESG practices. In evaluating an issuer, PIMCO is dependent upon information and data obtained through voluntary or third-party reporting that may be incomplete, inaccurate or unavailable, or present conflicting information and data with respect to an issuer, which in each case could cause PIMCO to incorrectly assess an issuer’s business practices with respect to its ESG practices. Socially responsible norms differ by region, and an issuer’s ESG practices or PIMCO’s assessment of an issuer’s ESG practices may change over time. There is no assurance that the ESG investing strategy or techniques employed will be successful. Past performance is not a guarantee or reliable indicator of future results.

PIMCO as a general matter provides services to qualified institutions, financial intermediaries and institutional investors. Individual investors should contact their own financial professional to determine the most appropriate investment options for their financial situation. This material contains the opinions of the managers 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. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. PIMCO is a trademark of Allianz Asset Management of America L.P. in the United States and throughout the world. ©2021, PIMCO.

Subscribe
Please input a valid email address.

SG

unidentified

[change]