Fixed on ESG

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.

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 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.

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.

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.

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.

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.

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.