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PIMCO

PRI reporting framework 2020

Basic information [OO 01 - 09] Asset class implementation gateway indicators [OO 10 - 12] Peering questions [OO LE 01 - HF 01]

Strategy and Governance

Investment policy [SG 01 - 04] Objectives and strategies [SG 05 - 06] Governance and human resources [SG 07 - 08] Promoting responsible investment [SG 09 - 11] Outsourcing to fiduciary managers and investment consultants [SG 12] Asset class implementation not reported in other modules [SG 16 - 17] Innovation [SG 18] Communication [SG 19]

Direct - Fixed Income

Fixed income - Engagement [FI 14 - 16] Outputs and outcomes [FI 17 - 18]

Confidence building measures

Confidence building measures [CM1 01 - 07]

Export Public Responses

You are in Strategy and Governance » ESG issues in asset allocation

ESG issues in asset allocation

SG 13. ESG issues in strategic asset allocation

13.1. Indicate whether the organisation undertakes scenario analysis and/or modelling and provide a description of the scenario analysis (by asset class, sector, strategic asset allocation, etc.).

Yes, to assess future ESG factors

Yes, to assess future climate-related risks and opportunities

Describe At the portfolio level, we look at the average technology and energy mix compared with global energy scenarios modelled by the International Energy Agency or IEA, including the Sustainable Development Scenario (aligned with the UN Sustainable Development Goals and 1.5-2°C trajectory), for corporate and sovereign bonds. This primarily concerns the energy sector considering data availability and quality. We are exploring options to expand the coverage and get forward-looking company-level data based on developments and new tools such as PACTA.

No, not to assess future ESG/climate-related issues

13.2. Indicate if your organisation considers ESG issues in strategic asset allocation and/or allocation of assets between sectors or geographic markets.

We do the following

Allocation between asset classes

Determining fixed income duration

Allocation of assets between geographic markets

Sector weightings

Other, specify

          This analysis is carried out in the context of ESG assessments and ESG ratings that are incorporated firm-wide into our credit research.

We do not consider ESG issues in strategic asset allocation

13.3. Additional information. [OPTIONAL]

SG 13 CC.

SG 14. Long term investment risks and opportunity

14.1. Some investment risks and opportunities arise as a result of long term trends. Indicate which of the following are considered.

Changing demographics

Climate change

Resource scarcity

Technological developments

Other, specify(1)

other description (1)

          We endorse the SDGs as the holistic reference framework to assess other wide-ranging risks e.g. inequality.

Other, specify(2)

None of the above

14.2. Indicate which of the following activities you have undertaken to respond to climate change risk and opportunity

Established a climate change sensitive or climate change integrated asset allocation strategy

Targeted low carbon or climate resilient investments

Phase out your investments in your fossil fuel holdings

Reduced portfolio exposure to emissions intensive or fossil fuel holdings

Used emissions data or analysis to inform investment decision making

Sought climate change integration by companies

Sought climate supportive policy from governments

Other, specify

None of the above

14.3. Indicate which of the following tools the organisation uses to manage climate-related risks and opportunities.

Scenario analysis

Disclosures on emissions risks to clients/trustees/management/beneficiaries

Climate-related targets

Encouraging internal and/or external portfolio managers to monitor emissions risks

Emissions-risk monitoring and reporting are formalised into contracts when appointing managers

Weighted average carbon intensity

Carbon footprint (scope 1 and 2)

Portfolio carbon footprint

Total carbon emissions

Carbon intensity

Exposure to carbon-related assets

Other emissions metrics