ESG at PIMCO

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

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Featured 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

$628B

Sustainable Investment Assets under management

Over 80%

of holdings of corporate bond issuers engaged on ESG (in 2021)

A+

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

Source: PIMCO. As of 12/31/2021

Sustainable Impact

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

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11x

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

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67%

Reduction in carbon intensity compared to the index

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100%

Renewable energy-based utilities sector holdings

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86%

Engagement with corporate issuers in the Fund

PIMCO Climate Bond Fund (Canada) is being compared to the Bloomberg Global Aggregate Credit Index (CAD Hedged) as a well-known broad based bond index, to illustrate the Funds positive Environmental impact over a non-ESG broad market. The PIMCO Climate Bond Fund (Canada) 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 9/30/2021

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

ESG Strategies Brochure (Canada)

An intro to ESG in bonds, our team’s approach, and the ESG strategies we offer

Download

Corporate Responsibility Report

Annual update on PIMCO’s progress in the critical areas of sustainability and corporate responsibility

Learn More

Guidance for Sustainable Bond Issuance

PIMCO’s ESG portfolio management team outlines best practices for issuers of green, social, sustainability or sustainability-linked bonds

Download

Disclosures

Toronto
PIMCO Canada Corp.
199 Bay Street, Suite 2050
Commerce Court Station
P.O. Box 363
Toronto, ON, M5L 1G2
416-368-3350

The products and services provided by PIMCO Canada Corp. may only be available in certain provinces or territories of Canada and only through dealers authorized for that purpose.

1 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 Source: Carbon intensity is intended to reflect how an issuer’s greenhouse gas (GHG) emissions (expressed as tonnes of CO2 equivalent (tCO2e)) compares to its overall revenues. The carbon intensity of the securities portfolio is defined as the weighted average carbon emissions (Scope 1 + Scope 2 emissions (tCO2e))/Revenues in USD of corporate bond holdings only in the portfolio (for issuers with available data). Absolute carbon emission analysis takes the total emission per issuer into consideration. As defined by the U.S. Environmental Protection Agency (EPA), Scope 1 emissions are direct GHG emissions that occur from sources owned or controlled by a company (for example, company vehicles and facilities), and Scope 2 emissions are indirect GHG emissions from the purchase of electricity, steam, heating or cooling. Data used by PIMCO to calculate carbon intensity is (i) sourced from MSCI based on data reported by companies, a company specific model, or an industry specific model (MSCI’s methodology is available here: https://www.msci.com/index-carbon-footprint-metrics), or (ii) estimated by PIMCO for “use of proceeds” bonds not covered by MSCI. PIMCO’s estimates generally apply absolute emissions of the issuer’s parent company/companies to its subsidiaries. Green bonds issued by utility companies, however, are generally assumed at 10% of the parent company's CO2e intensity. Green bonds from Paris-aligned utility issuers (i.e., issuers whose current and future carbon emissions targets are consistent with the global accord to limit the global temperature rise by year 2100 to 1.5°C – 2°C above pre-industrial levels, based on third-party sources) are treated as having zero carbon emissions and, therefore, zero carbon intensity.

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.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

No offering is being made by this material. Interested investors should obtain a copy of the prospectus, which is available from your Financial Advisor.

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. Investing in foreign denominated and/or domiciled securities may involve heightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. Mortgage and asset-backed securities may be sensitive to changes in interest rates, subject to early repayment risk, and their value may fluctuate in response to the market's perception of issuer creditworthiness; while generally supported by some form of government or private guarantee there is no assurance that private guarantors will meet their obligations. High-yield, lower-rated, securities involve greater risk than higher-rated securities; portfolios that invest in them may be subject to greater levels of credit and liquidity risk than portfolios that do not. Equities may decline in value due to both real and perceived general market, economic and industry conditions. Derivatives may involve certain costs and risks, such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. Diversification does not ensure against loss.

The Funds offer different series, which are subject to different fees and expenses (which may affect performance), having different minimum investment requirements and are entitled to different services.

The products and services provided by PIMCO Canada Corp. may only be available in certain provinces or territories of Canada and only through dealers authorized for that purpose. PIMCO Canada has retained PIMCO LLC as sub-adviser. PIMCO Canada will remain responsible for any loss that arises out of the failure of its sub-adviser.

PIMCO Canada Corp, 199 Bay Street, Suite 2050, Commerce Court Station, P.O. Box 363, Toronto, ON, M5L 1G2, 416-368-3350

CMR2021-0915-1831014