Kate’s 2021 appointment as global head of corporate responsibility reflects the growing importance of this issue to PineBridge and the seriousness of the firm’s commitment of resources to pursue corporate responsibility in its various forms.
Here she explains the firm’s objectives regarding corporate responsibility, how PineBridge approaches the issue with investee companies, and where ESG objectives fit in, along with a preview of what she sees coming over the next several years.
How would you describe your role, and the firm’s primary objectives, relating to corporate responsibility?
As global head of corporate responsibility, I partner with colleagues across the firm to set strategic corporate responsibility goals for PineBridge while also establishing best practices to measure advancement and uncover areas where we can make a positive impact to society on behalf of our clients and employees.
To do this, we have a robust framework set by our Corporate Responsibility Steering Committee, which includes senior representatives across functions and regions. Together, we strive for progress in four key areas: Diversity & Inclusion (D&I), Company Responsibility, ESG Investment, and Stewardship. Each area has its own subcommittee that meets regularly and engages every level, region, and business unit of the organization.
I view my appointment to this role as a commitment on behalf of the firm to focus dedicated resources on ensuring we live up to our potential as a global firm.
As an organization, one key focus area is environmental, social, and governance (ESG) investing, which has become increasingly relevant to the investment community. Its importance to our clients and our industry really cannot be overstated. Witness the evolving requirements from regulators and governing bodies to ensure that asset managers abide by ESG principles and reporting expectations.
Explain PineBridge’s approach to corporate responsibility. How does it differ from that of peers in the industry?
At PineBridge, our approach to corporate responsibility begins with striving to meet the expectations of our clients, employees, and communities. This can involve investigating and implementing policies that are thoughtful about our impact on society while meeting the regulatory requirements that apply to our business. Ultimately, we want to build on the confidence our clients have bestowed on us to make responsible investment decisions and nurture a corporate culture that makes those decisions possible.
Attention to these concerns is embedded in each of our functions, from the investment professionals who manage assets, to our client teams, to our IT and operations teams, to name a few. We believe this integration gives us an edge in that we can quickly make adjustments where they’re needed most, evolve, and implement whatever actions may be needed to deliver on our corporate responsibility.
What is PineBridge prioritizing with respect to corporate responsibility, and how did the onset of Covid-19 help or hurt those efforts?
Though our employees’ well-being and corporate culture have always been top of mind, the pandemic brought that to the forefront globally and expediently. Pandemic-related shutdowns and our firm’s shift to remote work pushed us to be more thoughtful about our employees’ needs beyond traditional requirements like office space or other corporate responsibility matters, such as our carbon footprint.
We understood that of utmost importance is how we support our staff. We engaged with all employees to learn about their challenges and areas of concern, including well-being, support, team engagement, and time management. The pandemic blurred the lines between work and home for many. Ensuring that our employees could express concerns and ideas was important to overcoming any obstacles that may arise. We reworked many corporate policies regarding vacation time, flex time, and support services. The pandemic taught us that asking the right questions is key and that listening is extremely valuable.
It was also important for us not to lose sight of other corporate responsibility goals, including initiatives related to D&I. We launched new initiatives that involved engaging in conversations that help reveal sentiment and will help advance our goals and approach to D&I.
How does PineBridge approach ESG investing across the firm? Is the approach standardized, or does it differ among the firm’s investment platforms?
At PineBridge our ESG investing capabilities date back more than a decade, with ESG issues serving as a framework for managing risk. Today’s investment landscape calls for much more than managing risk. It includes pushing for change and improving on all ESG issues as directed by our investors. This has opened the door to working with the companies we invest in and taking a “consultivist” approach that stresses cooperation, rather than an “activist” approach. We believe the consultivist approach is ultimately the most beneficial way to produce real change, be it on environmental impact, global and local social issues, or investigating a company’s governance practices.
As it pertains to the environment, this process involves engaging in a dialogue with companies to encourage them to adopt better practices related to climate change. That said, taking account of the risks attached to climate change requires extensive investment diligence, sustained engagement, escalation when engagement doesn’t appear to be working, voting against while always explaining why, and finally, if all else fails, divesting. This process is delegated across the firm’s investment teams, but our goals and policies are a consistent part of our corporate responsibility framework.
Consider the environmentally intensive beef industry in Brazil, which is the world's largest beef exporter. As investors in this sector, understanding the environmental risks has been crucial to our investment decisions and our interactions with management. The three largest issuers, which represent 70% of Brazilian beef production, committed in 2009 to a policy of preventing deforestation, thanks to pressure applied from both the investor community and international organizations such as Greenpeace. Since then, our engagement has focused on the steps each company has taken to manage the environmental risks along its supply chains and the transparency of supply-chain management. Progress along those fronts has enhanced our ability to analyze environmental risk, with an expansion of quantitative data regarding each company's breadth of supply-chain coverage. This, in turn, has had a major impact on which positions we have added, held, and sold out of in the relevant portfolios.
For more information on PineBridge’s efforts, visit pinebridge.com/corporate responsibility
PineBridge Investments is a group of international companies that provides investment advice and markets asset management products and services to clients around the world. PineBridge Investments is a registered trademark proprietary to PineBridge Investments IP Holding Company Limited.
Readership: This document is intended solely for the addressee(s) and may not be redistributed without the prior permission of PineBridge Investments. Its content may be confidential, proprietary, and/or trade secret information. PineBridge Investments and its subsidiaries are not responsible for any unlawful distribution of this document to any third parties, in whole or in part./p>
Opinions: Any opinions expressed in this document represent the views of the manager, are valid only as of the date indicated, and are subject to change without notice. There can be no guarantee that any of the opinions expressed in this document or any underlying position will be maintained at the time of this presentation or thereafter. We are not soliciting or recommending any action based on this material.
Risk Warning: All investments involve risk, including possible loss of principal. If applicable, the offering document should be read for further details including the risk factors. Our investment management services relate to a variety of investments, each of which can fluctuate in value. The investment risks vary between different types of instruments. For example, for investments involving exposure to a currency other than that in which the portfolio is denominated, changes in the rate of exchange may cause the value of investments, and consequently the value of the portfolio, to go up or down. In the case of a higher volatility portfolio, the loss on realization or cancellation may be very high (including total loss of investment), as the value of such an investment may fall suddenly and substantially. In making an investment decision, prospective investors must rely on their own examination of the merits and risks involved.
Performance Notes: Past performance is not indicative of future results. There can be no assurance that any investment objective will be met. PineBridge Investments often uses benchmarks for the purpose of comparison of results. Benchmarks are used for illustrative purposes only, and any such references should not be understood to mean there would necessarily be a correlation between investment returns of any investment and any benchmark. Any referenced benchmark does not reflect fees and expenses associated with the active management of an investment. PineBridge Investments may, from time to time, show the efficacy of its strategies or communicate general industry views via modeling. Such methods are intended to show only an expected range of possible investment outcomes, and should not be viewed as a guide to future performance. There is no assurance that any returns can be achieved, that the strategy will be successful or profitable for any investor, or that any industry views will come to pass. Actual investors may experience different results.
Information is unaudited unless otherwise indicated, and any information from third-party sources is believed to be reliable, but PineBridge Investments cannot guarantee its accuracy or completeness.
This document and the information contained herein does not constitute and is not intended to constitute an offer of securities or provision of financial advice and accordingly should not be construed as such. The securities and any other products or services referenced in this document may not be licensed in all jurisdictions, and unless otherwise indicated, no regulator or government authority has reviewed this document or the merits of the products and services referenced herein. This document and the information contained herein has been made available in accordance with the restrictions and/or limitations implemented by any applicable laws and regulations. This document is directed at and intended for institutional and qualified investors (as such term is defined in each jurisdiction in which the security is marketed). This document is provided on a confidential basis for informational purposes only and may not be reproduced in any form. Before acting on any information in this document, prospective investors should inform themselves of and observe all applicable laws, rules and regulations of any relevant jurisdictions and obtain independent advice if required. This document is for the use of the named addressee only and should not be given, forwarded or shown to any other person (other than employees, agents or consultants in connection with the addressee’s consideration thereof).
Disclosures by location:
Australia: PineBridge Investments LLC is exempt from the requirement to hold an Australian financial services license under the Corporations Act 2001 (Cth) in respect of the financial services it provides to wholesale clients, and is not licensed to provide financial services to individual investors or retail clients. Nothing herein constitutes an offer or solicitation to anyone in or outside Australia where such offer or solicitation is not authorised or to whom it is unlawful. This information is not directed to any person to whom its publication or availability is restricted.
Brazil: PineBridge Investments is not accredited with the Brazilian Securities Commission - CVM to perform investment management services. The investment management services may not be publicly offered or sold to the public in Brazil. Documents relating to the investment management services as well as the information contained therein may not be supplied to the public in Brazil.
Chile: PineBridge Investments is not registered or licensed in Chile to provide managed account services and is not subject to the supervision of the Comisión para el Mercado Financiero of Chile (“CMF”). The managed account services may not be publicly offered or sold in Chile.
Colombia: This document does not have the purpose or the effect of initiating, directly or indirectly, the purchase of a product or the rendering of a service by PineBridge Investments ("investment adviser") to Colombian residents. The investment adviser’s products and/or services may not be promoted or marketed in Colombia or to Colombian residents unless such promotion and marketing is made in compliance with decree 2555 of 2010 and other applicable rules and regulations related to the promotion of foreign financial and/or securities related products or services in Colombia. The investment adviser has not received authorisation of licensing from The Financial Superintendency of Colombia or any other governmental authority in Colombia to market or sell its financial products or services in Colombia. By receiving this document, each recipient resident in Colombia acknowledges and agrees that such recipient has contacted the investment adviser at its own initiative and not as a result of any promotion or publicity by the investment adviser or any of its representatives. Colombian residents acknowledge and represent that (1) the receipt of this presentation does not constitute a solicitation from the investment adviser for its financial products and/or services, and (2) they are not receiving from the investment adviser any direct or indirect promotion or marketing of financial products and/or services. Marketing and offering of products and/or services of a foreign financial [or securities related] entity represented in Colombia.
Promoción y oferta de los negocios y servicios de la entidad del mercado de valores del exterior [o financiera, según sea el caso] representada en Colombia.
Dubai: PineBridge Investments Europe Limited is regulated by the Dubai Financial Services Authority as a Representative Office and is making this document available to you. This document is intended for sophisticated/professional investors only and no other Person should act upon it.
Germany: This material is issued by PineBridge Investments Deutschland GmbH, licensed and regulated by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin).
Hong Kong: The issuer of this document is PineBridge Investments Asia Limited, a company incorporated in Bermuda with limited liability, licensed and regulated by the Securities and Futures Commission (SFC). This document has not been reviewed by the SFC.
Ireland: When this document is issued in the EEA, unless stated otherwise, it is approved and issued by PineBridge Investments Ireland Limited, licensed and regulated by the Central Bank of Ireland.
Israel: PineBridge Investments is neither licensed nor insured under the Israeli Investment Advice Law.
Japan: This document is not, and under no circumstances is to be considered as, a public offering of securities in Japan. No registration pursuant to Article 4 paragraph 1 of Japan’s Financial Instruments and Exchange Act (“FIEA”) has been or will be made with respect to any solicitation of applications for acquisition of interests of any vehicle or any account that may be undertaken, on the grounds that any such solicitation would constitute a “solicitation for qualified institutional investors” as set forth in Article 23-13, paragraph 1 of the FIEA. In Japan, this document is directed at and intended for qualified institutional investors (as such term is defined in Article 2, paragraph 3, item 1 of the FIEA; “QIIs”). If any offering is to be made, that would be made on the condition that each investor enters into an agreement whereby the investor covenants not to transfer its interests (i) to persons other than QIIs, or (ii) without entering into an agreement whereby the transferee covenants not to transfer its interests to persons other than QIIs.
Kuwait: The offering of any security in any vehicle has not been approved or licensed by the Kuwait Capital Markets Authority or any other relevant licensing authorities in the State of Kuwait, and accordingly does not constitute a public offer in the State of Kuwait in accordance with Law no. 7 for 2010 regarding the Establishment of the Capital Markets Authority and the Regulating Securities Activities (“CMA Law”). This document is strictly private and confidential and is being issued to a limited number of professional investors: A) who meet the criteria of a Professional Client by Nature as defined in Article 2-6 of Module 8 of the Executive Regulations No. 72 of 2015 of the CMA Law; B) upon their request and confirmation that they understand that the securities have not been approved or licensed by or registered with the Kuwait Capital Markets Authority or any other relevant licensing authorities or governmental agencies in the State of Kuwait; and must not be provided to any person other than the original recipient, and may not be reproduced or used for any other purposes whatsoever.
Malaysia: PineBridge Investments Malaysia Sdn Bhd is licensed and regulated by Securities Commission of Malaysia (SC). This material is not reviewed or endorsed by the SC.
Netherlands: PineBridge Investment Ireland Limited, Netherlands Branch is licensed and regulated by The Dutch Authority for the Financial Markets (AFM). This is a branch office of PineBridge Investments Ireland Limited, licensed and regulated by the Central Bank of Ireland.
Peru: Specifically, the Interests will not be subject to a public offering in Peru. The Interests described herein have not been and will not be approved by or registered with the Peruvian Superintendency of Capital Markets (Superintendencia del Mercado de Valores, or the “SMV”) or the Lima Stock Exchange (Bolsa de Valores de Lima). Accordingly, the Interests may not be offered or sold in Peru except, among others, if such offering is considered a private offer under the securities laws and regulations of Peru. The Interests cannot be offered or sold in Peru or in any other jurisdiction except in compliance with the securities laws thereof. In making an investment decision, institutional investors (as defined by Peruvian law) must rely on their own examination of the terms of the offering of the Interests to determine their ability to invest in the Interests. All content in this document is for information or general use only. The information contained in this document is referential and may not be construed as an offer, invitation or recommendation, nor should be taken as a basis to take (or stop taking) any decision. This document has been prepared on the basis of public information that is subject to change. This information may not be construed as services provided by PineBridge Investments within Peru without having the corresponding banking or similar license according to the applicable regulation.
Singapore: PineBridge Investments Singapore Limited is licensed and regulated by the Monetary Authority of Singapore (MAS). In Singapore, this material may not be suitable to a retail investor. This advertisement or publication has not been reviewed by the MAS.
Sweden: PineBridge Investments Ireland Limited Sweden filial is licensed and regulated by Finansinspektionen. This is a branch office of PineBridge Investments Ireland Limited, licensed and regulated by the Central Bank of Ireland.
Switzerland: This material is issued by PineBridge Investments Switzerland GmbH and classes this communication as a financial promotion which is intended for Institutional and Professional clients as defined by the Swiss Federal Financial Services Act ("FinSA") and its implementing ordinance, the Federal Financial Services Ordinance ("FinSO"). PineBridge Investments Switzerland GmbH is affiliated with the Swiss Chambers’ Arbitration Institution (SCAI), 4, boulevard du Théâtre, P.O. Box 5039, 1211 Geneva 11, Switzerland, Tel: +41 (0)22 819 91 57.
Taiwan: PineBridge Investments Management Taiwan Ltd. Is licensed and regulated by Securities and Futures Bureau of Taiwan (SFB). In Taiwan, this material may not be suitable to investors and is not reviewed or endorsed by the SFB.
United Kingdom: This material is issued by PineBridge Investments Europe Limited, licensed and regulated by the Financial Conduct Authority. In the UK this communication is a financial promotion solely intended for professional clients as defined in the FCA Handbook and has been approved by PineBridge Investments Europe Limited. Should you like to request a different classification, please contact your PineBridge representative.
In the UK, this material may also be issued by PineBridge Benson Elliot LLP, registered in England (company number OC317119) with its registered address at 50 Hans Crescent, London, SW1X 0NA. PineBridge Benson Elliot LLP is authorised and regulated by the Financial Conduct Authority.
Uruguay: The sale of the securities qualifies as a private placement pursuant to section 2 of Uruguayan law 18.627. The issuer represents and agrees that it has not offered or sold, and will not offer or sell, any securities to the public in Uruguay, except in circumstances which do not constitute a public offering or distribution under Uruguayan laws and regulations. The securities are not and will not be registered with the Central Bank of Uruguay to be publicly offered in Uruguay. The securities correspond to investment funds that are not investment funds regulated by Uruguayan law 16,774 dated 27 September 1996, as amended.
Last updated 3 June 2021