Fixed on ESG

Investors are looking to the United Nations Sustainable Development Goals (SDGs) as one tool to help guide impactful investments. This episode of Fixed on ESG explores the role of the SDGs as a framework for identifying opportunities, SDG-related challenges (e.g. “SDG washing"), the financing gap, methodological issues in assessing contributions, and factors to consider when balancing operational performance with business model alignment. PGIM Fixed Income's Nuvneet Dhillon, CFA, ESG Specialist, hosts this discussion with Armelle de Vienne, Co-Head of ESG Research, and Yacine Rachid, ESG Specialist. Recorded on March 19, 2025.

Securitised credit is emerging as a key driver in financing the green transition, offering investors opportunities to support ESG initiatives without sacrificing return. This episode of Fixed on ESG navigates how securitisation helps fund green assets, the challenges of measuring financed emissions, and the evolving regulatory landscape in the U.S. and Europe. We break down the mechanics of green securitisation and discuss how investors can navigate this space. PGIM Fixed Income's Taylor Chatlos, ESG Specialist, hosts this discussion with David Klausner, ESG Specialist, and Edwin Wilches, CFA, Co-Head of Securitised Products. Recorded on March 12, 2025.

Can green bonds—intended to drive sustainability—complicate emissions reporting? This episode of Fixed on ESG explores the complexities of green bonds and their reported emissions. We examine a proposal by the Partnership for Carbon Accounting Financials (PCAF) and highlight issues like vanishing emissions, unallocated proceeds, increased reporting demands, and the need for a comprehensive approach to emissions assessment, while considering the broader implications for investors. PGIM Fixed Income's Taylor Chatlos, ESG Specialist hosts this discussion with John Ploeg, CFA, Co-Head of ESG Research. Recorded on January 23, 2025.

With COP29 in Baku, Azerbaijan now concluded, the conference ultimately delivered mixed results. In this episode of Fixed on ESG, we analyse the key takeaways from the event, including the geopolitical tensions, financial commitments, and growing Global North-South divide that influenced the outcomes. We also highlight under-the-radar wins, such as methane reduction pledges and the establishment of new carbon market rules, and finally, consider whether COP can continue to drive meaningful change. PGIM Fixed Income's John Ploeg, CFA, Co-Head of ESG Research, hosts this discussion with Nuvneet Dhillon, CFA, ESG Specialist. Recorded on December 17, 2024.

There are many top-down tools that attempt to model climate-related credit risks, but risks relating to the transition towards a low carbon economy often stem from complex regulation and hotly debated policy that are not easily captured in simplistic models. In this episode of Fixed on ESG, we focus on the EU autos sector as a means of exploring how we leverage our bottom-up research approach to analyse climate risks. We discuss the tightening of EU automobile manufacturer emissions targets, limitations of current climate value-at-risk (Climate VaR) models, and the research process we employ to integrate climate transition risks into our credit analysis. PGIM Fixed Income's Alistair Shepheard-Walwyn, CFA, ESG Specialist, hosts this discussion with Chris Roberts, European Investment Grade Credit Research Analyst. Recorded on November 26, 2024.

The past decade's explosive increase in digitalisation is forecast to continue exponentially in the coming years. This expansion of the digital economy is fueling the need for data centres. But data centre growth may see significant challenges given the large amounts of electricity they require. Uncertainty about how quickly their power demand will grow is also creating challenges for utilities that have to plan their generation capacity years in advance. Meanwhile, major tech companies claim to be fueling much of their electricity consumption with low carbon energy. But, the story may not be as simple as they make it appear. This episode of Fixed on ESG provides a comprehensive look at data centres' energy use, the implications of this for utilities, methods of renewable energy procurement, and how companies account for this in their emissions reporting. PGIM Fixed Income's Birgit Lundem Jakobsen, ESG Specialist, hosts this discussion with John Ploeg, CFA, Co-Head of ESG Research, and Patrick Myers, CFA, U.S. Leveraged Finance Credit Research Analyst. Recorded on October 25, 2024.

The rising cost of housing has brought into full view the need for more affordable housing solutions. Fannie Mae's new Mission Index aims to assist the housing market by enhancing transparency and supporting disadvantaged borrowers. This episode of Fixed on ESG explores the Mission Index and Social Bond Framework for single-family RMBS pools, looking at pool composition, prepayment performance, the collaborative effort behind the launch, and more. David Klausner, ESG Specialist at PGIM Fixed Income, hosts this discussion with Nick Sapirie, Vice President of Single-Family Capital Markets at Fannie Mae, and Kaustub Samant, Head of Mortgage Credit Research at PGIM Fixed Income. Recorded on September 5, 2024.

Debt-for-nature swaps have come to the forefront as a unique solution for both environmental conservation and debt alleviation. In this episode of Fixed on ESG, we are joined by The Nature Conservancy, an organization that's aided in structuring several of these types of instruments. Together, we examine their role in alleviating the post-pandemic debt surge in developing economies, the environmental benefits of these instruments, and challenges for investors and measuring effectiveness. Yacine Rachid, ESG Research Analyst at PGIM Fixed Income, hosts this discussion with Slav Gatchev, Sustainable Debt Managing Director at The Nature Conservancy (TNC), and Armelle de Vienne, Co-Head of ESG Research at PGIM Fixed Income.  Recorded on August 1, 2024.

The aviation industry is under the sustainability microscope with recent estimates finding that it contributes to 6% of total global warming. This episode of Fixed on ESG explores the role of Sustainable Aviation Fuel (SAF) in mitigating aviation's environmental impact, the contrasting policy approaches in the U.S. and EU, and discusses the potential implications of SAF on airline credit profiles and decarbonisation strategies. This episode is hosted by PGIM Fixed Income's Taylor Chatlos, ESG Specialist, and features Jack Fitzsimmons, CFA, U.S. Leveraged Finance Credit Analyst, and Sean Goodier, CFA, European Investment Grade Credit Research Analyst. Recorded on June 18, 2024.

Tackling the intricacies of ESG investing in a warming world is a top challenge for today's investors. In the second half of this two-part series, we explore the practical application of temperature alignment in investment strategies, detail the limitations of third-party ESG data, and introduce PGIM Fixed Income's proprietary Temperature Alignment Tool, which offers a nuanced assessment of a company's climate impact. This episode features PGIM Fixed Income's Ruth Klavert, Client Manager, and James Malone, CFA, ESG Specialist. Recorded on June 3, 2024.

In the face of escalating climate challenges, temperature alignment is taking center stage and helping to reshape climate-conscious investment strategies. In the first of a two-part series, we delve deeper into this innovative tool and its role in the low carbon transition, understanding the shift from excluding to backing certain issuers critical to the low carbon transition, the reason for sector-specific decarbonization rates, and more. This episode features PGIM Fixed Income's Ruth Klavert, Client Manager, and James Malone, CFA, ESG Specialist. Recorded on April 26, 2024.

The vital role of biodiversity across social and economic dependencies has captured the attention of ESG investors. With biodiversity in focus and a surge of new datasets to inform investment considerations, we explore how biodiversity is measured, approaches to investing in nature, how we tackled some of the complexities in biodiversity data when redesigning PGIM Fixed Income's Sovereign ESG Impact Rating framework, and aspirations for the future of biodiversity investing. This episode features Filippo Grassi, Data Analyst for Planet Tracker, and host, Alistair Shepheard-Walwyn, ESG Specialist for PGIM Fixed Income. Recorded on March 8, 2024. The views of any of our guests on this podcast do not necessarily reflect the views of PGIM Fixed Income.

For fixed income ESG investors, gaining a deeper understanding of emerging markets is crucial as standard ESG assessments may neglect the complex economic and social dynamics that influence positive ESG impact as well as investment risks and opportunities in these regions. In this episode of Fixed on ESG, Nuvneet Dhillon, CFA, ESG Specialist, highlights our enhanced Sovereign ESG Impact Rating framework, and hosts Cathy Hepworth, CFA, Head of Emerging Markets Debt, and Magdalena Polan, Head of Emerging Market Macroeconomic Research, to discuss ESG for emerging market sovereigns and the challenges of assessing these credits. Recorded on February 21, 2024.

Several major reports were released just ahead of this year's COP28 in the UAE on the state of climate action, the widening gap between actual progress and policies on decarbonization, and what would be needed to limit warming to well below 2°C. In this second of a two-part instalment of PGIM Fixed Income's Fixed on ESG, James Malone, CFA, ESG Research Specialist, and John Ploeg, CFA, Co-Head of ESG Research, examine the latest developments in global climate action. They provide an in-depth analysis of the UN's Emissions Gap Report along with other key reports, exploring the potential outcomes under existing climate policies, the impact of fully meeting Paris Agreement pledges, and how these scenarios measure up against what is necessary to limit warming to 1.5°C. Recorded on December 15, 2023.

COP28, which was hosted in the UAE, has come to a close. In the first of a two-part instalment of PGIM Fixed Income's Fixed on ESG, James Malone, CFA, ESG Research Specialist, and John Ploeg, CFA, Co-Head of ESG Research, analyse the key takeaways of the COP. The duo take a closer look at the results of the first-ever Global Stocktake, discuss the effectiveness of Nationally Determined Contributions (NDCs), weigh in on the debate around the new loss and damage fund, examine the criticism that shadowed the appointment of this year's host nation and president, assess the effectiveness of various COP initiatives, and consider the real-world impact of COP's voluntary pledge process. Recorded on December 15, 2023.

Climate finance has gained significant attention over the past decade due to the increase in extreme climate events around the world. While developed countries have been the largest contributors to climate change, it's developing countries that often feel the worst of the impacts as they struggle to finance resources to respond, rebuild, and protect themselves from extreme weather events. In this episode of Fixed on ESG, ESG Specialists, Nuvneet Dhillon, CFA, and Alistair Shepheard-Walwyn, examine the current state of international climate finance. The duo discuss how much climate finance is necessary, how we've integrated climate finance considerations into our sovereign ESG framework, how developed countries have kept up with providing the financing they've pledged, and more. Recorded on November 13, 2023.

With the use of plastic packaging on the rise, the issue of plastic waste looms large and complex. Plastic is a prevalent part of our lives, but this widespread use poses alarming consequences to the environment and to our health. In this episode of PGIM Fixed Income's Fixed on ESG, David Klausner, ESG Specialist, hosts guests James Malone, CFA, ESG Specialist, and Richard Kus, CFA, U.S. Leveraged Finance Credit Research Analyst, for a conversation on the multifaceted challenges posed by the plastic waste crisis and potential solutions that can lead towards a more sustainable future. The trio discuss our fundamental outlook for U.S. plastic packaging companies and what impact-oriented investors should consider when it comes to the plastic packaging sector. Recorded on October 17, 2023.

Cybersecurity impacts every industry and, for many issuers, the consequences of a breach could be disastrous—as we've seen in a number of recent high-profile cases. As investors analysing the current cybersecurity landscape from an ESG risk and ESG impact perspective, we believe that a lack of understanding or investment in cybersecurity is simply not an option. In this episode of Fixed on ESG, Birgit Lundem Jakobsen, Senior ESG Analyst for PGIM Fixed Income, and special guest, Limor Kessem, Principal Consultant with IBM X-Force Cyber Crisis Management, discuss the importance of cybersecurity to companies and investors, what investors should look for when assessing the state of a company's cybersecurity, and what's on the horizon for cybersecurity as rapid innovation paves a way into uncharted tech territory.

Damaged power lines are a leading cause of wildfires around the world and serve as a significant vulnerability to the service providers who operate them. The cost of upgrading and repairing transmission and distribution lines is high, but costs related to the legal liabilities faced by these entities in the face of a wildfire can be enormous and, therefore, can majorly impact the credit risk of utilities debt issuers. In this episode of Fixed on ESG, Taylor Chatlos, ESG Specialist, and Maxwell Hausle, U.S. Investment Grade Credit Research Analyst, provide an in depth look into how utilities providers balance the mitigation of wildfire risks with rate increases for customers, the litigation risks that providers could face if found liable for damages, and the consequential impact on credit quality for utilities issuers that are found culpable. Get our insights on what debt investors need to consider when it comes to these issuances and why deep credit research analysis and active, fixed-income strategies can help investors make more informed choices. Recorded on August 29, 2023.

Although deep-sea mining has never occurred at commercial scale, the growing interest in the minerals and metals found on the seabed could prompt a shift in the status quo. As the world looks to address climate change, increased demand for required base metals and critical minerals that support large scale deployments of green technologies is a real concern. Against this backdrop, some point to deep-sea mining as a potential solve, but it's not that simple. The topic is also garnering further attention—and increased scrutiny—since the International Seabed Authority missed its July 9 deadline to adopt seabed mining regulation. As it stands, the organization is now required to review, and therefore could provisionally approve, applications for deep-sea exploitation without any governing framework in place. PGIM Fixed Income's Co-Head of ESG Research, Armelle de Vienne, and ESG Research Specialist, James Malone, CFA, discuss the many dimensions of this complex subject: its potential and criticality as it relates to the green transition, the pros and cons of deep-sea mining, and the countries and industries lobbying for and against deep-sea mining. Further, the duo explores the investment implications, including the near- and long-term implications of this highly capital-intensive business, if there's economic foundation to make the endeavor profitable, and the impact to corporate and sovereign issuers. Find all of this and more in this episode of Fixed on ESG, hosted by Client Manager, Ruth Klavert. Recorded on July 25, 2023.

Clean hydrogen has garnered considerable attention in recent years due to its potential to address hard-to-decarbonize sectors—or—as James Malone, CFA, ESG Specialist, and host of this month's podcast likes to refer to them, “hard-to-electrify sectors.” These are sectors where electrification has historically been—for a variety of reasons—less attractive, less commercial, or simply not viable. In this episode of PGIM Fixed Income's Fixed on ESG, James hosts special guest Catherine Klinger, Executive Director at the New Jersey Governor's Office of Climate Action and the Green Economy, for a conversation on hydrogen and the Northeastern Regional Clean Hydrogen Hub (“the Hub”), an ambitious proposal to scale the availability and transport of clean hydrogen. Learn about the intricacies of clean hydrogen production and transportation; some considerations for how projects were selected for inclusion under the Hub's funding opportunity; economic and employment benefits that the proposal is seeking to enable; and what's next for the Hub and how Catherine's team in New Jersey is thinking about future advancement for the clean hydrogen economy within the state. James also discusses some of the research he's done here at PGIM Fixed Income to understand the long-term demand for hydrogen and factors we take into account while considering future investment opportunities. Recorded on May 19, 2023.

In some areas, population explosion has exhausted freshwater supplies, and globally the impacts of a warming climate have caused the slow depletion of the freshwater resources available. The search for solutions to freshwater scarcity has intensified and led some municipalities to explore desalination, or the process of turning saltwater into freshwater, as one potential solution. PGIM Fixed Income's Taylor Chatlos, ESG Specialist, and Michael Slonim, Municipal Bond Credit Research Analyst, join this episode of Fixed on ESG to provide a complete look at desalination for investors: what it entails; the environmental and social costs and benefits; how we evaluate a desalination credit differently from a run-of-the-mill water utility; and how we integrate these considerations into our investment process when looking at municipal deals. Recorded on May 31, 2023.

The existing stock of affordable housing in the U.S. is becoming largely obsolete at the same time the development of replacement properties has lagged. As a result, the affordable housing supply in the U.S. is in crisis. In this episode of PGIM Fixed Income's Fixed on ESG, David Klausner, ESG Specialist, sits down with Ola Hixon, Executive Director and Portfolio Manager on PGIM Real Estate's U.S. Value-Add team, to discuss the state of affordable housing in the U.S. Ola describes the investment strategies that can be used to create more affordable housing and the role investors can have in addressing the crisis. Recorded on March 24, 2023.

Nuclear fusion is making headlines with the first ever demonstration of fusion ignition by the Lawrence Livermore National Laboratory. Why is this so groundbreaking? Nuclear fusion is a clean source of energy, and there are many benefits to fusion over its more controversial counterpart, nuclear fission. Some are even painting fusion as THE solution to the climate crisis. Those are the headlines. In this episode of PGIM Fixed Income's Fixed on ESG podcast, John Ploeg, CFA, Co-Head of ESG Research, and Peter Cody, CFA, U.S. Investment Grade Credit Research Analyst, provide the full picture. John and Peter compare fusion and fission; explain fusion ignition, its complexities, and its possibilities for commercial viability and climate impact; and try to answer, “is nuclear fusion where we should be focusing right now?” Perhaps not so fast. If fusion isn't the perfect solution at present, where should we focus? Recorded on February 24, 2023.

The long awaited 2022 United Nations Biodiversity Conference (COP15) was held this past December in Montreal. Biodiversity is hugely important to us all for our basic, everyday needs, but biodiversity loss is not just an ecological threat as half of global GDP is dependent on nature in some way. With hopes that COP15 would produce a Paris Agreement equivalent to biodiversity, stakes were high. Birgit Lundem Jakobsen, Senior ESG Analyst at PGIM Fixed Income, hosts two highly anticipated guests who attended COP15, Planet Tracker's Director of Research, John Willis, and Policy Officer, Arianna Manili. Headquartered in London, Planet Tracker is an award-winning, non-profit, financial think tank that aligns capital markets with planetary boundaries. In this episode, John, Arianna, and Birgit define biodiversity and its importance to the world and to investors; provide thoughts on the successes and misses of COP15; dissect some of the key targets of the newly adopted Kunming-Montreal Global Biodiversity Framework (GBF); highlight tools investors can access to better understand how their portfolios are impacting biodiversity; describe how investors can prepare for increased focus on biodiversity disclosure; and more. Recorded on January 19, 2023. The views of any of our guests on this podcast do not necessarily reflect the views of PGIM Fixed Income.

With the conclusion of COP27 this past November in Sharm El-Sheikh, Egypt, on this episode of Fixed on ESG, PGIM Fixed Income's John Ploeg, CFA, Co-Head of ESG Research, has invited Birgit Jakobsen, Senior ESG Analyst, to join him in highlighting the major takeaways from the conference. These include: updates to some of the nationally determined contributions (NDCs); this year's main communique, the Sharm El-Sheikh Implementation Plan; developments around adaptation and loss and damage discussions; “blended finance” as a possible solve for some climate financing needs; and a new idea called Climate Resilience Debt Clauses (CRDCs). John and Birgit close their discussion with some thoughts on the future of these climate change COPs and highlight another major COP listeners ought to know about. Recorded on December 14, 2022.

In this episode of Fixed on ESG, PGIM Fixed Income's Armelle de Vienne, Co-Head of ESG Research, and Kunal Patel, CFA, Head of Client Advisory for UK, Middle East and Africa, host a Q&A with special guest, Sarika Goel, Global Head of Sustainable Investment Research for Mercer. Listen for thoughts on: drivers of demand for ESG-labelled fixed income strategies; navigating differences in investor ESG objectives; considerations for investors looking to align their assets to net zero; stewardship and engagement in the context of fixed income; and more! Recorded on December 6, 2022. The views of any of our guests on this podcast do not necessarily reflect the views of PGIM Fixed Income.

With the 27th annual UN Climate Change Conference (COP27) underway in Egypt, what do investors need to know? In this episode of Fixed on ESG, Elizabeth Burgess, Client Manager, sits down with John Ploeg, CFA, Co-head of ESG Research, to set the scene for listeners and provide background on the big-ticket issues we all should be monitoring, including: updates to Nationally Determined Contributions (NDCs); new developments around Article 6 of the Paris Agreement; the state of the $100 billion climate finance pledge; the loss and damage compensation debate and its significance to this year's conference; and much more! Recorded on November 3, 2022.

What could electric vehicles and California's 2035 ban on the sale of gas-powered autos mean for autos manufacturers and what peripheral factors do fixed income investors need to consider? PGIM Fixed Income's own Alistair Shepheard-Walwyn, Investment Analyst and ESG Specialist, John Smigelsky, CFA, U.S. IG Credit Research Analyst, and Megi Leka, Sr. European IG Credit Research Analyst, have sorted through the details to provide a rundown of what they're watching for as 2035 inches closer. In this episode, our panel will examine: key attributes of the California ban; how the Inflation Reduction Act tax credits will impact consumers and manufacturers; how autos manufacturers around the world are positioned for this transition; the positive and negative ESG implications of electric vehicles; and much more! Recorded on September 23, 2022.

ESG investing has gained a lot of traction in recent years, but even with its growing popularity, many misconceptions still exist around how an ESG portfolio strategy should be structured to attain a dual mandate of making a positive impact and striving for solid performance. In this episode, John Ploeg, CFA, Co-head of ESG Research, and Anna de Jong, Head of Client Advisory Benelux and Nordics, shed some light on two of the most commonly misconstrued instruments of ESG-investing―exclusions and Green Bonds. Learn why an out-of-the-box approach to either could be inhibiting an investor's success in this eye-opening episode. Recorded on August 23, 2022.

In this episode, Armelle de Vienne, Co-head of ESG Research (and certified divemaster), invited Mark Spalding, President of The Ocean Foundation, to discuss the emergence of blue bonds in the ESG investing space. What defines a blue bond and why haven't investors heard more about them? Why might sovereign or corporate issuers issue a blue bond? What are the challenges and potential impacts of these types of offerings? We answer these questions, and more, on this episode of Fixed on ESG. Recorded on July 13, 2022.

PGIM Fixed Income's James Malone, CFA, ESG Research Specialist, and Beth Gunning, Credit Analyst for Emerging Markets Corporate Bond Research, join David Klausner, ESG Research Specialist, for a deep dive into the critical role that metals and mining companies have in enabling the low carbon transition. Our panel explores a range of topics, including the dramatic increase for minerals as countries reduce their high carbon energy reliance, the implications of Russia's ongoing invasion of Ukraine on the supply and demand of critical metals, and the risks miners face as a result of historically poor environmental and social performance as the global community tries to deliver on ambitious climate goals. Recorded on June 23, 2022.

Food prices have been rising globally for some time now. While the Russia/Ukraine conflict has exacerbated food instability, many other factors have also come into play including the COVID-19 pandemic, increases in demand from growing populations, extreme weather events, among others. The war in Ukraine has shown us how the world has become increasingly reliant on a few crops grown in a few countries and how vulnerable food supply chains are to external shocks. The implications are significant for ESG as net food importers face food insecurity which could lead to rising hunger, undernourishment, inflation, and an increase in global inequality and poverty as food security issues tend to have disproportionate impacts on the poor. Nuvneet Dhillon, PGIM Fixed Income ESG Specialist, digs into the economic and investment implications of this critical topic with guests, Giancarlo Perasso, Lead economist for the CEEMA region, focusing on Africa and the former Soviet Union, and Todd Petersen, Emerging Markets Debt portfolio manager.   Recorded on May 18, 2022.

Like most nuanced subjects, ESG is a highly intricate topic with many more complexities than most might initially consider. And incorporating ESG-factors into portfolio construction introduces additional challenges, even to the most seasoned investors. However, PGIM Fixed Income is dedicated to helping our clients navigate the ESG landscape. Our dedicated team of ESG research experts have extensive insight and experience into what it takes to be ESG-forward, which we're excited to share with you.   In this inaugural episode of Fixed on ESG, our Co-Heads of ESG Research, Armelle de Vienne and John Ploeg, CFA, take part in an illuminating Q&A session, which explains what ESG means to fixed income investors, details the difference between ESG risks and impacts, and provides their take on a common question posed to asset managers, “Does ESG have to come at a cost to returns?” John and Armelle walk us through the biggest concerns for investors looking to invest in ESG strategies and the market-impacting events that they've been focused on in the last year. This episode is hosted by ESG-advocate and PGIM Fixed Income's Head of EMEA, Sarah McMullen, CFA. Recorded on April 21, 2022.

PGIM Fixed Income is proud to bring you, Fixed On ESG, a monthly podcast series exploring the latest topics and trends of ESG investing. A rotating lineup of PGIM Fixed Income ESG-expert hosts will provide our take on the investment implications and value opportunities we see in this space and how changes in the market may directly affect our decision making. Subscribe to hear from PGIM Fixed Income thought leaders, as well as industry professionals and some of our clients.