Select your geography
Americas
Back
ESG Investment
We recognize that environmental, social, and governance (ESG) issues may create both opportunities and risks for our clients’ portfolios. At PineBridge, we seek to address these factors through our investment process to gain a better understanding of their potential impact on current asset values and future performance. We have been doing this throughout our decades of experience managing equity, fixed income, multi-asset, and alternative investment portfolios.
Our Philosophy
By integrating ESG factors into our investment process, we believe we are able to better fulfill our mission of partnering with clients to achieve their specific investment objectives.
Business models that improve upon their sustainability create value not only for society, but for investors in those businesses.
As active managers, we advocate for, and strive to hasten, change in the select companies we invest in. We take an analytical approach that considers how companies are seeking to improve upon ESG issues.
Our approach considers ESG factors from both an investment return and risk mitigation perspective over the medium to long term.
Our Approach to Responsible Investing Is Guided by Three Main Principles
Implementation of ESG considerations
We believe ESG factors can and should be incorporated into the end-to-end due diligence, asset selection, and portfolio monitoring processes for all investments - not just those with explicit ESG mandates. We embrace a firmwide commitment to promoting sustainable investing, both within our company's own investment processes and in the industry at large.
A focus on improvement on ESG measures in key priority areas
We believe asset selection and monitoring should focus on a company's improvement on ESG metrics. Progress is what matters most, and what will truly drive change, and we seek to influence progress across our portfolios beyond negative screening alone.
Embracing active engagement
We frequently engage with senior management of the companies we are analyzing on how ESG issues could affect their business and investment performance. Making our voice heard is critical to ensuring that we are both effectively advocating on behalf of our clients and encouraging the greatest number of companies to improve on ESG metrics. Out investment teams employ a tailored approach according to their asset class, geography, and sector focus.
Reports From the Ground: Investment Case Studies
Urging a global consumer discretionary company to address greenhouse gas emissions
In December 2021, we began an engagement using our ERA framework that determined that the company’s greenhouse gas (GHG) intensity trend versus peers was relatively high and that their overall ESG disclosures needed improvement. Through a consistent dialogue with senior management, including the CEO, CFO, and Head of Sustainability for the company, we urged the company to focus on improving its GHG emissions trend and expanding ESG disclosures to align with peers.
Outcome: Since our engagement, the company has improved its disclosures and submitted its near-term net zero targets to the SBTi. We are seeing improvement in the company’s emissions performance, reporting, and the company itself acknowledged our insights led to its ESG rating being double upgraded by MSCI.
For illustrative purposes only. The selected case studies have been chosen by PineBridge to illustrate our ESG engagement process. They are not necessarily representative or indicative of all investments made in any existing strategy or fund. Information provided about a portfolio company is intended to be illustrative and should not be used as an indication of current or future engagements. Past performance is not indicative of future results.
Advancing on Our Commitments
In our third annual assessment of PineBridge’s corporate responsibility efforts, we take stock of the progress we’ve made as a firm and the work that lies ahead as we advance on our commitments.
Our goals for the year ahead are robust, and we plan to build on the progress made in 2023 to further advance our activities as a responsible investor and global stakeholder – including advocating for our views on long-term value creation through active stewardship and engagement.
