Navigating the ESG Bubble: The Deal with Data
Despite recent headlines and heightened regulatory scrutiny about greenwashing, ESG remains on the forefront of investors’ minds.
Philosophy
Each client has unique ESG needs. PGIM Quantitative Solutions offers specialized ESG investment options for every risk and return budget. Our Core ESG strategies can be combined with existing specialist ESG strategies to maintain desirable index characteristics, while our impact solutions are customizable for more complex ESG exposure.
Research and Implementation
ESG is a major focus of our firm-wide research effort at PGIM Quantitative Solutions. We are constantly looking for ways to improve our implementation processes without detracting from investment returns or contributing meaningfully to risk. PGIM Quantitative Solutions introduces a breadth of ESG insights into client portfolios with the same investment returns and risk return profile as the index. Our proprietary data completion methodology helps us identify additional, under-reported risks.
We can also implement client ESG divestment preferences. Our current ESG offerings came about in an effort to solve three major ESG challenges for our clients:
- How can we evaluate ESG?
- How can we expand ESG insights to overcome limited data?
- How can we integrate ESG into client portfolios?
PGIM Quantitative Solutions introduces a breadth of ESG insights into client portfolios with the same investment returns and risk return profile as the index. Our proprietary data completion methodology helps us identify additional, under-reported risks. We can also implement client ESG divestment preferences.
Latest Insights
ESG At A Crossroads: Time For A New Risk Direction
ESG investing is at a crossroads as regulators are demanding more transparency just as investors face inflation’s rising threat to portfolio performance.
ESG Indexing with Exclusions
Varied ESG needs of asset owners mean investment managers must offer tailored index solutions, like excluding certain sectors, without sacrificing returns.
PGIM Quantitative Solutions' ESG processes, rankings and factors may change over time, and differ across PGIM affiliates. ESG investing is qualitative and subjective by nature; there is no guarantee that the criteria used or judgment exercised by PGIM Quantitative Solutions will reflect the beliefs or values of any investor. Information regarding ESG practices is obtained through third-party reporting, which may not be accurate or complete, and PGIM Quantitative Solutions depends on this information to evaluate a company’s commitment to, or implementation of, ESG practices. ESG norms differ by region. There is no assurance that PGIM Quantitative Solutions' ESG investing techniques will be successful.