Fixed on ESG

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.