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ESG Integration and Engagement: South Africa Sovereign Credit

By Advisor Perspectives
Capital Markets

Environmental, social and governance (ESG) indicators are integral to PIMCO’s sovereign credit assessments, which inform our investment decisions. But how exactly do we incorporate ESG considerations into our decisions?

In addition to rigorous analysis of ESG and other risk factors, in-country engagement is key for us to gain a holistic sense of broader developments, pinpoint country-specific risks, share in active dialogue with public officials and business leaders, and assess governments’ track records in meeting ESG objectives. We detail our approach in our recent Viewpoint, “Applying ESG Analysis to Sovereign Bonds,” and our experience in assessing South Africa’s sovereign credit, in particular, offers a concrete case study of how active engagement and thorough ESG analysis helps shape portfolio strategy.

Read more at Advisor Perspectives.

Photo: Olearys

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