Statement on principal adverse impacts of investment decisions on sustainability factors
Financial market participant PIMCO Europe GmbH, LEI: 549300KW6332H0XL8X85
Summary
PIMCO Europe GmbH, LEI: 549300KW6332H0XL8X85 (“PIMCO”) considers the principal adverse impacts of its investment decisions onsustainability factors. The present statement is the consolidated statement on principal adverse impacts on sustainability factors of PIMCO.
This statement on principal adverse impacts on sustainability factors covers the reference period from 1 January 2023 to 31 December 2023.
The principal adverse impacts considered during this period were as follows:

EN

1

GHG Emissions (scope 1, 2 and 3)

2

Carbon Footprint

3

GHG Intensity

4

Fossil Fuel Exposure

5

Non-Renewable Energy Consumption/Production

6

Energy Consumption Intensity per Impact High Climate Sector

7

Negative Impact on Biodiversity

8

Emission to Water

1

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9

Hazardous Waste

10

UNGC and OECD Violations

11

Processes to Monitor Compliance w.r.t the UNGC and OECD
Guidelines

12

Gender Pay Gap

13

Board Gender Diversity

14

Controversial Weapons Exposure

15

GHG Intensity(Sovereign)16

Investee countries subject to social violations

17 (Optional) Carbon Emissions Reduction Initiatives
18 (Optional) Lack of Anti-Corruption and Anti-Bribery Policies

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2

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Indicators applicable to investments in investee companies
Adverse sustainability
indicator

MetricScope 1 GHG
emissionsGreenhouse
1. GHGgasemissionsemissions

Scope 2 GHG
emissions

Scope 3 GHG
emissionsEN

Impact2023

Impact2022

Explanation

Actions taken, and actions
planned and targets set for the
next reference period

Climate and other environment-related indicators
Figures are based on the share of the AUM• As stewards of our client’s
stemming from issuers with data coverage for capital, we are obliged to manage
this indicator. Coverage may vary significantly portfolios in line with theby PAI and can affect Impact figures for a
guidelines that were agreed upon
4,508,597.8 3,803,070.2
given year. Data can be reported or estimated. with our clients. Some of our(tons CO2e) (tons CO2e)
PIMCO’s PAI data vendor uses breakdowns of clients have provided us with
proxy fields to differentiate between reported guidance if and how we should be
and estimated data.
incorporating PAIs within their
Reported data %: 84%; Estimated data: 16% portfolio, but that is currently not
Figures are based on the share of the AUM
the case for the majority of ourstemming from issuers with data coverage for clients contracted with PIMCO
this indicator. Coverage may vary significantly Europe GmbH. Additionally, we
by PAI and can affect Impact figures for aare working closely with clients
910,482.2 847,226.6 given year. Data can be reported or estimated. that are seeking advice on how to(tons CO2e) (tons CO2e) PIMCO’s PAI data vendor uses proxy fields to implement PAIs in their portfolios.
differentiate between reported and estimateddata.
• We have on boarded PAI-specific
Reported data %: 82%; Estimated data %:data from selected data providers
18%
and built the tools and capabilities
to track PAI exposure in our
Figures are based on the share of the AUM
stemming from issuers with data coverage for internal systems.
28,050,321.8 27,774,481.4 this indicator. Coverage may vary significantly• We have established a(tons CO2e) (tons CO2e) by PAI and can affect Impact figures for agiven year. Data can be reported or estimated. governance process that allows for
PIMCO’s PAI data vendor uses proxy fields to a regular review of the exposure to3EN2. Carbon
footprint

3. GHG
intensity ofEN

differentiate between reported and estimated the PAIs for PIMCO Europe
data.
GmbH.
Reported data %: 0%; Estimated data %:100%• As one of the world’s largest
bond holders, we aim to have a
Figures are based on the share of the AUM
stemming from issuers with data coverage for market-leading engagement
this indicator. Coverage may vary significantly platform. The objective ofengagement at PIMCO is to
by PAI and can affect Impact figures for agiven year.. Data can be reported or estimated. influence change, with a view to
Total GHG
33,351,021.7 32,552,723.8 PIMCO’s PAI data vendor uses proxy fields to improving risk-adjusted returns foremissions(tons CO2e) (tons CO2e) differentiate between reported and estimated our clients.
data. Hybrid means that some emissions thato Environmental topics play
conform the figure are reported (e.g. Scope 1
animportantpart in ouror 2) and some are estimated (e.g. Scope 3).
Reported data %: 0%; Estimated data: 16%; engagement discussions with issuer
companies, including topics such as
Hybrid data %: 84%
GHG emissions, fossil fuelFigures are based on the share of the AUM
stemming from issuers with data coverage for exposure, water, waste, pollution,
this indicator. Coverage may vary significantly and biodiversity.
by PAI and can affect Impact figures for ao Depending on data
given year. Data can be reported or estimated.
347.4 (tons 395.8 (tons
PIMCO’s PAI data vendor uses proxy fields to availability and materiality, certain
Carbon footprint CO2e/$1m CO2e/$1m
differentiate between reported and estimated themes may play a more prominent
Investment) Investment)
data. Hybrid means that some emissions that role in our engagement interactions
conform the figure are reported (e.g. Scope 1 than others.
or 2) and some are estimated (e.g. Scope 3).
Reported data %: 0%; Estimated data: 16%;
Hybrid data %: 84%
GHG intensity of 1106.9 (tons 1,095.6 (tons Figures are based on the share of the AUM
investeeCO2e/$1m CO2e/$1m stemming from issuers with data coverage forcompanies
Revenue)
Revenue) this indicator. Coverage may vary significantly4ENinvesteecompanies

by PAI and can affect Impact figures for agiven year. Data can be reported or estimated.
PIMCO’s PAI data vendor uses proxy fields todifferentiate between reported and estimateddata. Hybrid means that some emissions that
conform the figure are reported (e.g. Scope 1or 2) and some are estimated (e.g. Scope 3).
Reported data %: 0%; Estimated data: 16%;
Hybrid data %: 84%
Figures are based on the share of the AUM
stemming from issuers with data coverage forthis indicator. Coverage may vary significantly
4. Exposure Share of
by PAI and can affect Impact figures for a
to companies investments ingiven year.Data can be reported or estimated.
active in the companies active 7% (%MV) 6.8 (%MV)
PIMCO’s PAI data vendor uses proxy fields tofossil fuelin the fossil fueldifferentiate between reported and estimatedsectorsectordata.
Reported data %: 100%
Estimated data %: 0%
Share of nonrenewable energy
Figures are based on the share of the AUM
consumption andstemming from issuers with data coverage for5. Share of
non-renewable
this indicator. Coverage may vary significantly
nonenergy production
by PAI and can affect Impact figures for arenewableof investee
1
1 given year. Data can be reported or estimated.
energy75.8 (%)
68.6 (%) PIMCO’s PAI data vendor uses proxy fields tocompanies fromconsumption
non-renewabledifferentiate between reported and estimatedandenergy sources
data.
production
compared toReported data %: 100%
renewable energy
Estimated data %: 0%sources, expressed

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as a percentage of
total energy
sourcesFigures are based on the share of the AUM
stemming from issuers with data coverage forEnergythis indicator. Coverage may vary significantly
consumption in
by PAI and can affect Impact figures for a
6. Energy
GWh per million
given year.Data can be reported or estimated.
consumption
1.4 (GWh / 2.0 (GWh /EUR of revenue
PIMCO’s PAI data vendor uses proxy fields tointensity per
EUR million EUR millionof investee
differentiate between reported and estimatedhigh impact
sales)
sales)
companies, perdata. This PAI relies on NACE codes.
climate sector
high impact
Reported data %: 100%
climate sector
Estimated data %: 0%
NACE Codes – Vendor provided. A further
breakdown is not available.
Share ofFigures are based on the share of the AUM
investments instemming from issuers with data coverage forinvesteethis indicator. Coverage may vary significantly
companies with
by PAI and can affect Impact figures for a
7. Activities sites/operations
given year. Data can be reported or estimated.
negatively
located in or near
PIMCO’s PAI data vendor uses proxy fields to
Biodiversity affecting
to biodiversity0.29 (%MV) 0.01 (%MV)
differentiate between reported and estimatedbiodiversity- sensitive areas
data.
sensitive areas where activities ofThis metric is 100% Estimated based on
those investee
reported and estimated data (ESG
companies
controversies model). A further breakdown isnegatively affect
not available
those areas
Tonnes of
Figures are based on the share of the AUM
8. Emissions
2 (metric 40.2 (metricWateremissions to water
stemming from issuers with data coverage forto watertons/ EUR tons/ EUR
generated bythis indicator. Coverage may vary significantly

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6

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Wasteinvestee
1m
1m
by PAI and can affect Impact figures for acompanies per
Investment) Investment) given year.Data can be reported or estimated.
million EUR
PIMCO’s PAI data vendor uses proxy fields toinvested,
differentiate between reported and estimatedexpressed as adata.
weighted average
Reported data %: 100%
Estimated data %: 0%Tonnes of
Figures are based on the share of the AUM
hazardous waste
stemming from issuers with data coverage forand radioactive
this indicator. Coverage may vary significantly
9. Hazardous waste generated
3.1 (metric
112.3
by PAI and can affect Impact figures for awaste andby investee
tons/ EUR (metric tons/ given year.Data can be reported or estimated.
radioactive companies per
1m
EUR 1m PIMCO’s PAI data vendor uses proxy fields towaste ratio
million EUR
Investment) Investment) differentiate between reported and estimatedinvested,
data.
expressed as aReported data %: 100%weighted average
Estimated data %: 0%

Indicators for social and employee, respect for human rights, anti-corruption and anti-bribery matters
10.Violations
Share ofFigures are based on the share of the AUM
of UN Global• As stewards of our client’s
investments instemming from issuers with data coverage forCompact
capital, we are obliged to manage
investeethis indicator. Coverage may varyprinciples andportfolios in line with the guidelines
companies thatsignificantly by PAI and can affect Impact
Social and Organisationthat were agreed upon with ourhave been
figures for a given year. Data can be reported
employee for Economic
0.26 (%MV) 0.9 (%MV)
clients. Some of our clients have
involved inor estimated. PIMCO’s PAI data vendor uses
matters
Cooperation
provided us with guidance if andviolations of theproxy fields to differentiate between reported
and
how we should be incorporating
UNGC principles
and estimated data.
Development
PAIs within their portfolio but thator OECD
Reported data %: 0%(OECD)
is currently not the case for the
Guidelines for
Estimated data %: 100%
Guidelines for
majority of our clients contracted

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Multinational Multinational
Enterprises
Enterprises

with PIMCO Europe GmbH.
Additionally, we are working
closely with clients that are seeking
advice on how to implement PAIs
in their portfolios.

Share ofinvestments ininvestee• We have on boarded PAI-specificcompanies
data from selected data providers
11.Lack ofwithout policies
and built the tools and capabilities
processes and to monitor
to track PAI exposure in ourcompliance compliance with
Figures are based on the share of the AUM
internal systems.
mechanisms to the UNGC
stemming from issuers with data coverage formonitorprinciples orthis indicator. Coverage may vary
• We have established a governancecompliance OECD Guidelines
significantly by PAI and can affect Impact
process that allows for a regularwith UNfor Multinational
figures for a given year.Data can be reported review of the exposure to the PAIs
26.9 (%MV) 33.6 (%MV)
GlobalEnterprises oror estimated. PIMCO’s PAI data vendor uses for PIMCO Europe GmbH.
Compact
grievance
proxy fields to differentiate between reported
principles and /complaints
and estimated data.
• As one of the world’s largestOECDhandling
Reported data %: 100%bond holders, we aim to have a
Guidelines for mechanisms to
Estimated data %: 0%market-leading engagement
Multinational address violations
platform. The objective ofEnterprisesof the UNGC
engagement at PIMCO is toprinciples or
influence change with a view toOECD Guidelines
improving risk-adjusted returns forfor Multinational
our clients.
Enterprises
Figures are based on the share of the AUM
o Social and governanceAverage
stemming from issuers with data coverage for related topics play an important part
12.Unadjusted unadjusted gender
this indicator. Coverage may varyin our engagement discussions withgender pay
pay gap of
17.1 (Ratio) 19.4 (Ratio)
significantly by PAI and can affect Impact
issuer companies, including topics
gap
investeefigures for a given year.Data can be reported such the alignment with the UN
companies
or estimated. PIMCO’s PAI data vendor uses

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8

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13.Boardgenderdiversity

Average ratio of
female to maleboard members ininvesteecompanies,
expressed as apercentage of allboard members

35.6 (%)

34.9 (%)

proxy fields to differentiate between reported Global Compact principles, genderand estimated data.
pay gap, gender board diversity.
Reported data %: 100%
Estimated data %: 0%o Depending on data
availability
and materiality, certain
Figures are based on the share of the AUM
stemming from issuers with data coverage for themes may play a more prominentrole in our engagement interactions
this indicator. Coverage may varythan others.
significantly by PAI and can affect Impact
figures for a given year. Data can be reported
or estimated. PIMCO’s PAI data vendor uses
proxy fields to differentiate between reported
and estimated data.
Reported data %: 100%
Estimated data %: 0%

14.Exposure
Figures are based on the share of the AUM
toShare ofstemming from issuers with data coverage forcontroversial investments inthis indicator. Coverage may vary
weapons (anti- investee
significantly by PAI and can affect Impact
personnel
companies
0.01
2 figures for a given year. Data can be reported
mines, cluster involved in the
0.02 (%MV) or estimated. PIMCO’s PAI data vendor uses2(%MV)
munitions,manufacture orproxy fields to differentiate between reported
chemicalselling ofand estimated data.
weapons and controversial
Reported data %: 100%
biologicalweapons
Estimated data %: 0%
weapons)
Indicators applicable to investments in sovereigns and supranationals
Figures are based on the share of the AUM• As stewards of our client’s
427.6 (tons 347.4 (tons stemming from issuers with data coverage for capital, we are obliged to manage
Environme 15.GHG
GHG intensity ofCO2e/$1m CO2e/$1m this indicator. Coverage may vary by PAI.
portfolios in line with the guidelines
ntal
intensity
investee countries
GDP)
GDP)
Data can be reported or estimated. PIMCO’s that were agreed upon with our
PAI data vendor uses proxy fields toclients. Some of our clients have

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9

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differentiate between reported and estimateddata.
Reported data %: 100%
Estimated data %: 0%Social

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16.Investee
countries
subject tosocialviolations

Number ofinvestee countries
subject to social
violations(absolute number
and relative
number divided
by all investee
8 (Count),
countries), as
7.3 (%)
referred to ininternational
treaties andconventions,
United Nations
principles and,
where applicable,
national law

provided us with guidance if andhow we should be incorporating
PAIs within their portfolio, but thatis currently not the case for the
majority of our clients contractedwith PIMCO Europe GmbH.
Additionally, we are working
closely with clients that are seeking
advice on how to implement PAIs
in their portfolios.

• We have on boarded PAI-specificdata from selected data providers
Figures are based on the share of the AUM
stemming from issuers with data coverage for and built the tools and capabilities
to track PAI exposure in our
this indicator. Coverage may varyinternal systems.
significantly by PAI and can affect Impact
figures for a given year. Data can be reported
8 (Count),
or estimated. PIMCO’s PAI data vendor uses • We have established a governance
7.6 (%)
proxy fields to differentiate between reported process that allows for a regularreview of the exposure to the PAIs
and estimated data.
for PIMCO Europe GmbH.
Reported data %: 0%
Estimated data %: 100% (based on EU and• As one of the world’s largest
UN Sanction lists)bond holders, we aim to have amarket-leading engagement
platform. The objective ofengagement at PIMCO is toinfluence change with a view toimproving risk-adjusted returns forour clients.

10EN

o Where possible and relevant,
we look to engage with sovereignissuers on topics linked to climate
targets, social violations, andcountries’ green bond or
sustainability-linked bondframeworks.
o Depending on data
availability and materiality, certain
themes may play a more prominentrole in our engagement interactions
with sovereigns than others.
Other indicators for principal adverse impacts on sustainability factors• As stewards of our client’s
capital, we are obliged to manage
portfolios in line with the
Share ofFigures are based on the share of the AUM guidelines that were agreed upon
investments instemming from issuers with data coverage for with our clients. Some of ourinvestee
Investments inthis indicator. Coverage may varyclients have provided us withcompanies
companies
significantly by PAI and can affect Impact guidance if and how we should
without carbon
Environme without carbon
figures for a given year.Data can be reported be incorporating PAIs for theiremission29.2 (%MV) 31.5 (%MV)
ntalemissionor estimated. PIMCO’s PAI data vendor uses portfolio, but that is currently not
reduction
reduction
proxy fields to differentiate between reported the case for the majority of ourinitiatives aimed
initiatives
and estimated data. This metric is calculated clients contracted with PIMCOat aligning withbased on reported and estimated data. A
Europe GmbH. Additionally, we
the Paris
further breakdown is not available.
are working closely with clients
Agreementthat are seeking advice on how to
implement PAIs in theirportfolios.

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11

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• We have on boarded PAIspecific data from selected data
providers and built the tools andcapabilities to track PAI exposurein our internal systems.
• We have established agovernance process that allows
for a regular review of the
exposure to the PAIs for PIMCO
Europe GmbH.
• As one of the world’s largest
bond holders, we aim to have amarket-leading engagement
platform. The objective ofengagement at PIMCO is toinfluence change with a view toimproving risk-adjusted returns
for our clients.
oEnvironmental topics play
an important part in our
engagement discussions withissuer companies, including
topics such as GHG emissions,fossil fuel exposure, water,
waste, pollution, andbiodiversity.

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o Depending on data
availability and materiality,
certain themes may play a more
prominent role in our
engagement interactions thanothers.

SocialEN• As stewards of our client’s
capital, we are obliged to manage
portfolios in line with theguidelines that were agreed uponwith our clients. Some of ourclients
have provided us with
Share ofFigures
are
based
on
the
share
of
the
AUM
guidance if and how we should
investments instemmingfromissuers
withdata
coverageforbe incorporating PAIs for theirentities without
this
indicator.
Coveragemayvary
portfolio, but that is currently notpolicies on antisignificantly
by
PAI
and
can
affectImpactthe case for the majority of ourLack of Anti- corruption andfigures
for
a
given
year.
Data
can
be
reportedclients contracted with PIMCO
Corruption andanti-bribery
1.8 (%MV) 2.5 (%MV) or estimated. PIMCO’s PAI data vendor uses Europe GmbH. Additionally, we
Anti-Bribery consistent with
proxy fields to differentiate between reported are working closely with clients
Policies
the Unitedand estimated data.
that are seeking advice on how to
Nations
implement PAIs in their
Convention
Reported data %: 100%
portfolios.
againstEstimated data %: 0%
Corruption• We have on boarded PAIspecific data from selected data
providers and built the tools andcapabilities to track PAI exposurein our internal systems.

13EN• We have established agovernance process that allows
for a regular review of the
exposure to the PAIs for PIMCO
Europe GmbH.
• As one of the world’s largest
bond holders, we aim to have amarket-leading engagement
platform. The objective ofengagement at PIMCO is toinfluence change with a view toimproving risk-adjusted returns
for our clients.
o Social and governancerelated topics play an importantpart in our engagement
discussions with issuer
companies including topics suchas the alignment with the UN
Global Compact principles,
gender pay gap, and gender board
diversity.
o Depending on data
availability and materiality,
certain themes may play a more
prominent role in our
engagement interactions thanothers.

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Description of policies to identify and prioritise principal adverse impacts on sustainability factors
This document summarises our investment research policy in respect of principal adverse impacts, and may be updated from time to time.
PIMCO has implemented a principal adverse impact policy (“PAI Policy”) as from 30 June 2021, to set out how we identify and take into
consideration adverse sustainability impacts and indicators, in our investment research processes, and apply these to our sustainable investment
offerings. This section of the document summarises certain key provisions of the PAI Policy.
The PAI Policy approaches sustainability from the perspective of the harm that investment positions might do externally to “sustainability factors”,
defined in the SFDR as meaning environmental, social and employee matters, respect of human rights, and corruption and anti- bribery matters, andthe steps that PIMCO may take to mitigate any such harm.
At the firm level, as part of our ESG Integration, we incorporate consistent consideration of material ESG factors into our investment research
process to enhance our clients’ risk-adjusted returns. Material ESG factors may include but are not limited to: climate change risks, social inequality,
shifting consumer preferences, regulatory risks, talent management or misconduct at an issuer, among others.
Our portfolio managers and analysts have responsibility for deploying this across the in-scope strategies.
The indicators set out in the section entitled “Other indicators for principal adverse impact” above were selected by us because we consider that they
are material to our evaluation of issuers and our engagement approach. Additionally, data coverage for these indicators is relatively good and they
are sector neutral and mature.
Date coverage is a function of our data source (MSCI) who, in turn, is generally reliant on the quality of an issuer’s disclosure on a particular
indicator. The materiality of these indicators is linked to our internal and external materiality assessment and our experience of dealing with issuers’
ESG evaluation and engagement.

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Engagement policies
PIMCO has implemented a shareholder engagement policy, for the purposes of SRD II. Our engagement policy sets out how we integrate shareholder
engagement in our investment strategy.
Where we manage accounts which include shares with a listing on an EEA market or on a comparable market outside the EEA, the level ofshareholder engagement will depend on a number of factors. While we may, in certain limited circumstances, actively engage with management on
strategy, financial and non-financial performance and risk, capital structure, corporate governance or other issues, typically the level of ourshareholder engagement is limited to the responsible exercise of voting rights in accordance with PIMCO’s Global Proxy Voting Policy.
As one of the world’s largest bond holders, we aim to have a market-leading engagement platform. The objective of engagement at PIMCO is toinfluence change with a view to improving returns and reducing risks for our clients. Environmental topics play an important part in our engagement
discussions with issuer companies including topics such as GHG emissions, fossil fuel exposure, water, waste, pollution and biodiversity. Depending
on data availability and materiality, certain themes may play a more prominent role in our engagement interactions than others.
References to international standards
Our commitment to sustainability has led PIMCO to endorse numerous codes of conduct and best practices, including through various memberships
and affiliations, including:EN•

Becoming a signatory to the UN Principles of Responsible Investment (PRI)•

Being a participant of the United Nations Global Compact•

Using the standards of the Sustainability Account Standards Board (SASB)•

Becoming a signatory to the Task Force on Climate-related Financial Disclosures (TCFD)•

Being a member of the Institutional Investors Group on Climate Change (IIGCC)

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These industry groups do not impose quantitative limits or thresholds in order to demonstrate adherence or alignment with their standards. However,
PAIs are relevant to them as follows:
TCFD and IIGCC concern the measurement, optimization, reporting and engagement relating to carbon emissions and fossil fuels usage. As such
PAIs 1-6 and 15 in Table 1 are relevant to these standards.
As a participant in the UNGC, PIMCO will evaluate, engage with and (where appropriate) exclude issuers based on their compliance with UNGC.
PAIs 10 and 11 will be relevant to this.
All PAIs are potentially relevant to our participation of PRI and SASB since they form part of our research and investment processes.
Historical comparison
2023 is the second year of reporting so a comparison of PAIs for all years of reporting is available above. As stated above, we manage client assets
in line with guidelines agreed with our clients. Some clients have provided us with guidance as to if and when we should be incorporating PAIs
within their portfolio, but that is currently not the case for the majority of clients contracted with PIMCO Europe GmbH.

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