ESG Investments

Making a difference!

Sustainability means different things to different people. For us, it means investing in companies that place values as a priority. This generally means management are responsible, treat their employees well and look to minimize their carbon footprint, without compromising on the returns to shareholders.

In 2015, the UN developed 17 Sustainable Development Goals (SDGs) with the mission to lead the world to be better by 2030. Some governments developed regulation that guided public pension plans to invest according to the SDGs. In addition, we see more and more private clients from different age groups,  who demand their money managers take into account additional criteria when investing, not only returns .

As a result from the regulation and the rising demand, new investment solutions were developed to provide investors with exposure to ESG companies:

  • Environmental (E) – clean energy, recycling, water
  • Social (S) – work conditions, labor laws, supply chain
  • Governance (G) – diverse management team and board of director, company vision and ethics

It seems natural that companies that prioritize ESG factors are better-managed companies, and as a result achieve better growth for overall "less risk" . For example, companies that rate high on employee satisfaction have better access to human capital, can pay more, and will have employees that are more productive and loyal. Therefore, the company will be more profitable. In this case, everybody wins…

Pioneer has developed ESG investment portfolios based on the same "Top down" Asset Allocation principles used for years in our diversified global investment portfolios. Therefore, we can bring in our risk management expertise and experience into the new ESG offering. As an Independent firm, we can choose the best ESG based products to construct your portfolio without any conflicts of interest to use the house fund. Pioneer has invested tremendous time and resources in researching and understanding the various ESG criteria in order to allow clients to invest sustainably without compromising values for value.

Learn more about Sustainable Investments in the ESG Investments webinar we held on July 2020.