Innovation

PIMCO was founded on a client-focused business model with the mission to provide the best possible service to customers by coming up with solutions centered around their goals and needs while ensuring positive outcomes. This mentality has nonetheless been carried over in their efforts involving sustainable investing, which is the investment process dedicated to incorporating the Environmental, Social, and Governance (ESG) factors with investing to seek positive outcomes while promoting sustainability and environmental goals as an investment company. The Environmental, Social, and Governance (ESG) factors include climate change, human capital and rights, inequality, pollution, and greenhouse gases. Incorporating ESG factors makes it easier for PIMCO to understand and analyze risks and issues involved with their client’s investments, allowing clients to be more satisfied with the service and outcome of their investment with PIMCO. Through sustainable investing, PIMCO manages almost six hundred billion dollars in assets, which has helped millions of clients meet their investment objectives and goals using more sustainable approaches that support a wide range of emerging and popular goals.

Inspiration

PIMCO's mentality has inspired their efforts to invest in sustainable investing along with the adaptability needed to deal with environmental, social, and governance issues. They strive to provide top-tier service to their clients, and these current issues have caused client needs to alter and for them to reconsider a more sustainable way of aiding their clients in investments. PIMCO also decided to incorporate Environmental, Social, and Governance (ESG) factors with their business to impact their long-term investment returns, as adopting it can allow the company to handle societal challenges and growth opportunities and improve investing risks and returns. Above all else, client needs changed as they became more aware of environmental, social, and governance issues, and they want their money to improve the world and not further harm it. This resulted in PIMCO coming up with sustainable investing to evolve their business as an approach adaptable to market trends while decreasing risk and improving return while ensuring the investment provides positive outcomes for the investor and society as a whole.

Overall impact

Sustainable investing and its ties with ESG factors have allowed PIMCO to be able to better understand and protect client portfolios against risks and issues not as transparent in traditional investing methods, including issues relating to environmental, social, and governance issues. It showed PIMCO's mentality and mission to provide the best service to their clients based on their needs. Sustainable investing adapts to client needs regarding investing for the greater good of society. Additionally, sustainable investing promotes greater emphasis on sustainability, and environmental goals ultimately drive positive change. Overall, PIMCO's sustainable investment approach is seen as a precedent for other companies in the finance industry to set forth on a similar path, as it is a successful method for integrating sustainability goals with investing.

Business benefit

Adapting sustainability and environmental goals has benefited PIMCO’s reputation as a company that is not only clientele-focused but also interested in the betterment of society as a whole. PIMCO has been able to differentiate itself in the investment industry with its sustainable investing approach catching the eye of many investors as sustainability and environmental-related issues have become an increasing concern for many people as many related problems are surfacing. In addition, preexisting clients are becoming more favorable towards PIMCO as sustainable investing allows their portfolios to be more protected and perform better. The fusion of sustainable investing has helped PIMCO better manage their millions of clients’ investments by enabling them to analyze and understand risks and issues more efficiently, resulting in better protection of client portfolios to ensure positive outcomes. It has also set new standards and frameworks for investing, as other companies can see this as a viable adoption for their business.

Social and environmental benefit

PIMCO’s social and environmental benefits align with UN sustainable development goals (SDG) two, five, and thirteen, zero hunger, gender equality, and climate action, respectively. Sustainable investing helps reach UN goal two, zero hunger, by decreasing hunger issues and food insecurity. It supports investments in food security, sustainable agricultural methods, improving food access, and development in impoverished communities. It also helps accomplish UN goal five, gender equality, by partaking in investments in companies that support gender equality, women’s empowerment, access to all services and places in society, especially the workplace, and the improvement of many other women-related struggles. Similarly, PIMCO also supports investments related to relieving environmental issues, including climate change, greenhouse gases, and pollution, that help achieve UN goal thirteen, climate action.

Interview

Brian Kyle, Senior Vice President - Advisor Solutions Lead

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