UN Sustainable Development Goals: Measuring Performance Through Impact

We believe that active engagement with issuers can help reduce credit risk, unlock value for investors, and influence positive impact on economies, societies and the environment. One important objective for PIMCO’s ESG (environmental, social and governance) initiative is to incorporate the UN Sustainable Development Goals (SDGs)into our engagement activity as a framework for focus, accountability and ultimately measuring impact.

Since their publication in 2015, the 17 SDGs – see graphic below – have taken on a significant role in mobilizing action and cooperation by governments, companies and the financial community in advancing sustainable development. In November 2017, the world’s first sustainable development SDG bond was also issued.

Status review of current SDG activity

In 2017, PIMCO undertook a targeted engagement effort to encourage issuers to assess and disclose the SDGs that are most relevant to their business. Of the issuers who provided detailed responses to our questions, 58% are reviewing how their business can contribute to the advancement of the SDGs. Next steps would include quantifiable metrics such as revenues from products and services that directly support SDGs.