Sustainable Investing: Looking Beyond the Scorecard

In this episode, Grover Burthey, Portfolio Manager and Vicki Gedge, Credit Research Analyst, discuss how sustainable investing has evolved and what that means for fixed income investors today. From This Episode: The conversation explores the shift from broad ESG frameworks and ratings towards a more pragmatic focus on business resilience, risk management and long-term value creation. Together, they discuss why active research and issuer engagement remain critical tools for investors, how bondholders approach sustainability differently from equity investors, and why understanding where a company is headed may be just as important as assessing where it stands today. They also examine the role of governance, emerging risks and opportunities, and key themes including AI, that are likely to shape the next phase of sustainable investing. Key Topics • The evolution of sustainable investing and the shift towards a more pragmatic approach • Why ESG scores and ratings are only one input into the investment process • The role of forward-looking research, fundamental analysis and issuer engagement in identifying investment opportunities • Why governance and management quality remain critical considerations for credit investors • How bondholders assess sustainability through the lens of risk, resilience and long-term value creation • The themes shaping the next phase of sustainable investing, including physical climate risk and AI. The discussion and content provided within this podcast is intended for informational purposes only and may not be appropriate for all investors. Reliance upon information provided in a podcast is at the sole responsibility of the listener. The information included herein is not based on any particularized financial situation, or need, and is not intended to be, and should not be construed as, a forecast, research, investment advice or a recommendation for any specific PIMCO or other security, strategy, product or service. Past performance is not a guarantee of future results. All investments contain risk and may lose value. Investors should speak to their financial advisors regarding the investment mix that may be right for them based on their financial situation and investment objective. Podcasts may involve discussions with non-PIMCO personnel and such content contain the current opinions of the speaker but not necessarily those of PIMCO. Other podcasts may consist of audio recording of an existing PIMCO article and such material contains the current opinions of the manager. The opinions expressed in all podcasts are subject to change without notice. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. PIMCO as a general matter provides services to qualified institutions, financial intermediaries and institutional investors. This is not an offer to any person in any jurisdiction where unlawful or unauthorized. For additional important information go to www.pimco.com/gbl/en/general/legal-pages/podcast-disclosures