Delivering near- and long-term value for Prudential’s shareholders and customers requires the company to invest in and achieve sustainable financial and operating performance annually. In particular, managing the risks of climate change and strengthening environmental resilience is both a challenge and an opportunity for Prudential and its customers.
PGIM, the company global investment management business, is a member of the Ceres Investor Network on Climate Risk and Sustainability. This network comprises more than 150 institutional investors, collectively representing more than $24 trillion in assets, advancing leading investment practices, corporate engagement strategies and policy solutions to build an equitable, sustainable global economy and planet.
As an investment fiduciary, PGIM follows client guidelines for their portfolios. As part of investment due diligence reviews, PGIM considers environmental, social and governance risks, as they may be material in an asset class or in a particular deal. In addition to managing risks, PGIM also has found opportunity in a variety of “green” businesses.
Alternative Energy Investments
Prudential invests its own and client assets in renewable power generation. During 2017, the market value of that portfolio increased nearly 12.9% percent over 2016, with more than $4.3 billion invested in a range of renewable power projects at year end 2017.
Green Real Estate
PGIM Real Estate is a global real estate investor with institutional assets in the Americas, Europe, and Asia Pacific. The business’s objectives are to improve investment returns for clients, become a landlord of choice and practice good global citizenship starting with the communities served. As of December 31, 2017, PGIM Real Estate managed 26.7 million square feet of LEED certified U.S. real estate totaling $13.9 billion. Global certifications totaled $17.1 billion covering 33.4 million square feet.
In 2017, 36 percent of PGIM Real Estate Finance’s total FHA/agency multifamily originations have been through green programs, up from a handful of deals in 2016.
Click here to read PGIM Real Estate’s most recent Sustainability Report.
Prudential Fixed Income- a PGIM business- began investing in green bonds in 2013. “Green bonds” are debt instruments used to finance environmental initiatives like energy efficiency or renewable energy projects. The market value of Prudential’s green bonds totaled more than $157.3 million at the end of 2017.