Corporate
Sustainability
Report: 2023

Contents
Introduction & PIMCO Overview

5

Sustainable Business

9

Commitment to Talent

13

Empowering Communities

18

Sustainable Investing26

UN Global Compact: Communication on Progress

33

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CORPORATE SUSTAINABILITY REPORT 2023

Messagefrom
Emmanuel
Roman

Introduction & Overview

Sustainable BusinessCommitment to Talent

Empowering Communities

We are pleased to present PIMCO’s Corporate Sustainability Report,

and philanthropic efforts,

covering our efforts, initiatives, and progress in 2023.

PIMCO supports a range ofThis report has been developed with a variety of stakeholders inmind—including clients, employees, business partners, civil leaders,and other interested parties.
For PIMCO, corporate sustainability represents a business philosophy
and a workplace imperative. We are all keenly aware of theenvironmental pressures and social imbalances harming our natural
world and undermining communities across the globe.
For business, sustainability is no longer optional or a nice-to-have. It
is a requirement, in both commercial and ethical terms. Increasingly,
throughout our industry, clients and end investors want the stewardsof their capital to “walk the talk” in terms of corporate sustainability
and responsible business practices. Indeed, more and more of ourclients are interested in learning about PIMCO’s commitments andfocus areas. These exciting discussions reflect the collaborative
aspect of corporate sustainability as we dialogue with clients andexchange ideas and approaches.

food security, gender equality,
and social justice.
In all of this, our corporate
sustainability initiatives arerooted in our commitment to
the UN Global Compact and its
Ten Principles covering humanrights, working conditions,environmental stewardship,
and anti-corruption.
The following pages detail the
many activities and our progress,
which we hope to continue tobuild upon in the years to come.
As ever, we invite your feedback and recommendations.

house in order— this means developing policies and practices that, firstand foremost, address our own workplace and the wellbeing of ouremployees—including a commitment to talent. This internal orientation
also includes the environmental aspect of corporate sustainability—
to support a low-carbon future. Through our community engagement

Communication on Progressorganizations working towards

Corporate sustainability, in our view, begins with getting one’s own

striving to minimize our negative impacts while developing practices

Sustainable Investing

Emmanuel Roman
Chief Executive Officer

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CORPORATE SUSTAINABILITY REPORT 2023

PIMCO
Overview
Pacific Investment Management Company LLC(“PIMCO”) was founded in Newport Beach, California,
in 1971 and is a global investment solutions
provider. PIMCO started as a subsidiary of PacificLife Insurance Company managing institutional
separately managed fixed income accounts. In 2000,
PIMCO was acquired by Allianz SE (“Allianz”), a large
global financial services company based in Germany,with the agreement that it would be able to operate
as a separate and autonomous subsidiary. While

Introduction & Overview

Sustainable BusinessCommitment to Talent

Empowering Communities

Sustainable Investing

Our Values
COLLABORATIONRESPONSIBILITY

WE BELIEVEWE PRIORITIZE

each of us is here to help others succeed

client needs and objectives ahead of our own

WE LEVERAGEWE NEVER STOP LEARNING

diverse perspectives to make better decisions

and building expertise, individually and within teams

WE SHAREWE ARE ACCOUNTABLE

ideas, information and intelligence

for the impact of our actions on clients, culture and community

OPENNESSEXCELLENCEWE SEEKWE PURSUE

challenges to our most closely held viewpoints

deep insight with humility

WE LISTENWE TRANSFORM

and engage with fairness and candor

individual solutions into institutional best practices

WE RECOGNIZE

WE ALL ACT AS LEADERS

the importance of a global mindset

and think as leaders

primarily known as one of the world’s largest fixedincome managers, PIMCO also manages a broad
range of strategies across different asset classes
including alternatives, equities, and real assets.

Communication on Progress

4

CORPORATE SUSTAINABILITY REPORT 2023

Introduction & Overview

Sustainable BusinessCommitment to Talent

Empowering Communities

Sustainable Investing

Communication on Progress

Global Offices

NEWPORT
BEACH
1971
SOLANA
BEACH
2019

TORONTO
2004
CHICAGO
2019

MONTREAL
2021
NEW YORK2001

AUSTIN
2018
MIAMI
2020

LONDONDUBLIN 1998 LUXEMBOURG
2020
2021
MUNICH
PARIS
2023 ZURICH 2000
2009 MILANMADRID
2012
2019

SHANGHAI2020
HONG KONG
2006

5

TOKYO
1997
TAIPEI2018

SINGAPORE
1996

SÃO PAULO
2018

As of 31 December 2023.

SYDNEY
1997

CORPORATE SUSTAINABILITY REPORT 2023

Introduction & Overview

Sustainable BusinessCommitment to Talent

Empowering Communities

Sustainable Investing

Communication on Progress

Snapshot as of 31 December 2023
$82 MILLION+

Total assets under management1

3,365+

Employees around the world

Donations since inceptionof global foundations4

Global diversity partnerships$559 BILLION

50+~14,500

8$1.86 TRILLION
Sustainable investment assets
under management2

OVER

75%

of PIMCO’s firmwide market value of corporate
assets were engaged on ESG topics in 20233

20+

Countries in which clients are based

Employee volunteer hours in 2023

Employee resource groups23

2016–2023

2017–2023

Global offices

1 PIMCO manages $1.86 trillion in assets, including $1.48 trillion in third-party client assets as of 31 December 2023. Assets include $82.2 billion(as of 30 September 2023) in assets managed by Prime Real Estate (formerly Allianz Real Estate), an affiliate and wholly-owned subsidiaryof PIMCO and PIMCO Europe GmbH, that includes PIMCO Prime Real Estate GmbH, PIMCO Prime Real Estate LLC and their subsidiaries andaffiliates. PIMCO Prime Real Estate LLC investment professionals provide investment management and other services as dual personnel
through Pacific Investment Management Company LLC. PIMCO Prime Real Estate GmbH operates separately from PIMCO.
2 PIMCO, as of 31 December 2023. The figure includes Third party and Allianz AUM with strategies that include (i) minimum standards that refine
the investment opportunity set based on client directed exclusions criteria (“exclusionary” portfolios); (ii) a focus on enhancing the sustainablecharacteristics of the portfolio in comparison to its investment universe (“enhanced” portfolios) or (iii) a focus on achieving a specificenvironmental/ social objective in addition to a financial objective (“thematic” portfolios).
3 About 75% of PIMCO’s firmwide market value of corporate issuers engaged on ESG topics from Jan 1 - Dec 31, 2023. Includes all engagements
conducted by ESG and credit analysts. Calculated as % by AUM as of 31 December 2023. Corporate issuers are credits covered by PIMCO’s
corporate analyst team.

The Civic 50 or Civic 50 OC Award recipient5

Top score Corporate Equality Index6

4 Since Inception date is 2000.
5 The Civic 50 recognizes the 50 most community-minded companies in the nation each year as determined by an annual survey. We also report
best practices each year to provide a framework for good corporate citizenship. The Civic 50 honorees are public and private companies with
U.S. operations and revenues of $1bn or more. They rank only their U.S. community engagement programs, as outlined on their website: https://www.pointsoflight.org/the-civic-50/. This award is open to all companies with $1B or more in revenue. This award was not paid for by PIMCO.
6 PIMCO is honored to earn the designation as a Best Place to Work for LGBT Equality in recognition for our continued commitment to foster an
inclusive and diverse work environment. The Human Rights Campaign (HRC) Corporate Equality Index (CEI). a national benchmarking survey
and report on corporate benefits, policies and practices pertinent to lesbian, gay, bisexual, and transgender (LGBT) equality and inclusion in theworkplace. PIMCO first received this designation 5 December 2017.

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CORPORATE SUSTAINABILITY REPORT 2023

Introduction & Overview

Sustainable BusinessCommitment to Talent

Empowering Communities

Sustainable Investing

Communication on Progress

Sustainable Business
At PIMCO, we take a comprehensive view of what it means to manage

Second, a sustainable business must encompass both environmental

Third, in our view, the concept of sustainable business must include an

and operate a successful sustainable business in an increasingly

and social priorities and considerations. Too often, sustainability isoutward-looking orientation. What is the role of business in society?

complex – and unpredictable – world. As a starting point, this begins

seen only through an environmental lens. Environmental management

How are expectations (and requirements) by employees, clients, andwith ethical conduct. Without an ethos of ethics, understood by all

and climate-related efforts within business operations are no doubt

stakeholders changing? What geopolitical forces and trends are altering

employees regardless of rank or region, a company will not have theessential, but so too are the human capital issues—encompassing thethe business and economic landscape, and what are the repercussions

moral compass to navigate its decision-making and, equally importantly,

workplace environment, wellness, and general human resource policies

for the private sector?

build trust within and beyond its four walls. PIMCO’s Code of Businessand practices. Our commitment to workplace and social issues is also

Conduct and Core Values represent our twin touchstones in this regard.

reflected in PIMCO’s Statement on Human Rights and the firm’s supportof the Modern Slavery Act.

We at PIMCO certainly do not pretend to know all the answers. Sustainablebusiness is an on-going process of discovery and self-examination.

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CORPORATE SUSTAINABILITY REPORT 2023

Introduction & Overview

Sustainable BusinessCommitment to Talent

Empowering Communities

CODE OF BUSINESS CONDUCTIn terms of specific projects, the implementation of LED lighting and

Our Code of Business Conduct sets out the standards of businessheadquarters has not only significantly reduced our energy consumption

conduct that we require of our employees in carrying out our fiduciary
obligations. The following general fiduciary principles govern our
activities:•

Know and comply with all relevant policies, procedures, laws
and regulations•

Act in the best interest of PIMCO’s clients•

Identify and manage actual or potential conflicts of interest•

Act with honesty and integrity in all aspects of PIMCO’sbusiness activities

but also underscored our commitment to environmental stewardship.
We achieved a reduction of 917,693 KWH in electricity consumption
compared to 2022, marking a 15 percent decrease.
The year 2023 set a new benchmark for energy efficiency within ourheadquarters, with electricity usage falling to the lowest levels since thebuilding’s inception. We observed a 24 percent reduction in electricity
consumption compared to the average KWH over the past 9 years. This
achievement highlights the success of our energy-saving measures. The
January 2024 levels were 488,736 KWH, representing the lowest level
for the month of January since moving into the building in 2014.

ENVIRONMENTAL SUSTAINABILITY

employees, PIMCO took a step forward in 2023 by installing 16 additional

PIMCO’s commitment to environmental sustainability is grounded

expansion supports our employees in making sustainable transportation

environmental principles, which are drawn from international
conventions and agreements.
Building on the momentum of our sustainability initiatives outlined in our2022 Corporate Responsibility Report, PIMCO is pleased to present thepositive outcomes of our environmental and energy conservation efforts.
Notably, in 2023, PIMCO undertook its first comprehensive inventory of firmwide greenhouse gas emissions, establishing a 2019 baseline. This inventory
included all offices and data centers – and covered Scope 1, Scope 2, andselect Scope 3 categories. This inventory and the related science-based
data will inform our environmental practices in the coming years.

Communication on Progress

the Load Based Optimization System (LOBOS) at our Newport BeachIn response to the growing adoption of electric vehicles (EVs) by ourin our endorsement of the UN Global Compact and its core

Sustainable Investing

EV charging stations in the headquarters parking structure. This
choices and also aligns with our broader environmental objectives.
By enhancing the EV charging infrastructure, we are facilitating a shift
towards cleaner, more sustainable modes of transportation, thereby
contributing to the reduction of greenhouse gas emissions.
As we reflect on the successes of our environmental initiatives, we areencouraged by the tangible impact of these efforts in reducing energy
consumption and promoting sustainability. Moving forward, PIMCO
remains dedicated to exploring and implementing innovative solutions tofurther improve our environmental performance.

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CORPORATE SUSTAINABILITY REPORT 2023

Introduction & Overview

Sustainable BusinessCommitment to Talent

WELLBEING OF EMPLOYEES

platform will be available to all offices in the Americas, with plans

As part of our ongoing commitment to enhancing the wellbeing andwide range of fitness and wellness resources at the fingertips of our

productivity of our employees, PIMCO has introduced a range ofinnovations in, and expansions of, our Fitness and Wellness Program.
These initiatives underscore our dedication to fostering a healthy
and collaborative work environment. Below, we detail the latest
developments designed to benefit our employees.

Enhanced Outdoor Seating Area
Recognizing the importance of a versatile and stimulating work
environment, we have introduced a new Outdoor Seating Area

In 2024 we will be unveiling our new Fitness Studio located in

productivity and creativity outside the traditional office setting. The

Exercise and Stretching Programs. These sessions are led bycertified professionals and are designed to cater to all fitness levels,
promoting physical health and mental wellbeing among our staff.
Understanding the importance of inclusivity and accessibility, the
new studio will be equipped with advanced technology which enables
us to broadcast training sessions live and allows employees in otherprovides a refreshing change of scenery for employees, encouraging
space is intentionally designed to foster collaboration and teambuilding activities. It serves as a perfect spot for informal meetings,
brainstorming sessions, or simply a place to unwind and connect
with colleagues.
At PIMCO, we believe that our employees are our most valuableasset, and their wellbeing is paramount to our success. The latest
expansions and innovations in our Fitness and Wellness Program

locations to participate in real-time.

are a reflection of our unwavering commitment to creating a

In addition, we are exploring partnerships with external organizations

confident that these initiatives will enhance the overall wellbeing

in order to extend wellness programs to our employees, reinforcing
our commitment to social responsibility and community wellbeing.
In our effort to embrace digital transformation in wellness, we arealso launching a comprehensive Digital Fitness App. This innovative

Communication on Progress

employees, including workout plans and nutritional information.

designed to promote alternative workspace options. This area

the health and wellness of our employees, offering weekly Group

Sustainable Investing

for a phased rollout to our global offices. The app aims to provide a

Fitness Program and Facility Expansion

Newport Beach. This facility represents a substantial investment in

Empowering Communities

supportive, healthy, and dynamic work environment. We areof our employees and contribute positively to our corporate
responsibility objectives. We look forward to the continued
development of programs that support our employees and set new
standards in corporate wellness.

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CORPORATE SUSTAINABILITY REPORT 2023

Introduction & Overview

Sustainable BusinessCommitment to Talent

Empowering Communities

Sustainable Investing

Communication on Progress

ANTI-CORRUPTIONPIMCO is committed to complying with all applicable statutory andregulatory requirements relating to bribery and corruption – consistent
with the UN Global Compact’s tenth principle on anti-corruption.
We prohibit bribery and corruption in all business activities and in
business activities of third parties acting on PIMCO’s behalf, and haveinstituted a robust program designed to detect and prevent the useof our services or personnel in such activities. PIMCO’s Legal andCompliance Department has a dedicated Anti-Financial Crimes Team
responsible for implementing and maintaining the firm’s Global AntiCorruption Program. This program is reasonably designed to comply
with applicable laws, regulations, and rules relating to bribery andcorruption and includes, but is not limited to: policies and procedures;risk assessments; risk-based due diligence on our clients, prospects,
and other third parties; ongoing monitoring; and anticorruption and antibribery training for all employees on an annual basis.

VENDOR MANAGEMENTPIMCO operates a Vendor Management Oversight Program which sets
out the requirements for the appointment and ongoing oversight of thefirm’s material service providers. As part of the onboarding and retention
processes, PIMCO requests material service providers to complete
extensive due diligence questionnaires. Practices related to inclusionand diversity, labor, cybersecurity, and environmental management are
key elements within the questionnaires and form part of the qualitative
assessment of our service providers.

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CORPORATE SUSTAINABILITY REPORT 2023

Introduction & Overview

Sustainable BusinessCommitment to Talent

Empowering Communities

Sustainable Investing

Communication on Progress

Commitment to Talent
We know that great ideas and innovative solutions for our clients emerge when teams look at opportunities
from every angle. This has been at the core of our approach for 50+ years, and we are confident this inclusive
approach will support our success going forward.

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CORPORATE SUSTAINABILITY REPORT 2023

Introduction & Overview

Sustainable BusinessCommitment to Talent

Empowering Communities

Sustainable Investing

Communication on Progress

INCLUSION AND DEVELOPMENT
We understand that encouraging different points of view is critical to our success and that of our employees, which is why
diversity, inclusion, personal and professional development, continue to be important at PIMCO.
This year, we continued to invest in new tools, skills, and partnerships to enhance our outreach and maintain bias mitigation in
our recruitment programs.
•

We partner with more than 10 recruiting organizations to attract top talent and raise awareness about career opportunities
in the finance industry.

•

We designed “Interviewing Best Practices,” providing training to help 115+ interviewers develop the skills to conduct effective,
structured, and compliant interviews.

We strive to create a workplace where all employees have an equal opportunity for development and advancement; we plan tocontinue investing in and refining technology-enabled tools for our employees going forward.

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In 2023, we launched Perry, a chat bot that uses AI and a deep knowledge of PIMCO’s performance expectations to support
employees through performance and career conversations. By providing all employees with access to Perry, we aim to ensure thateveryone has the support they need to effectively navigate their careers at PIMCO.
Inclusive leadership underpins our commitment to sustainable growth and a high-performance culture:•

In 2023 we delivered Inclusive Leadership Teach-Ins with 120+ senior leaders from across the globe, focused on advancing
I&D for our clients and colleagues.

•

We designed a new manager toolkit to provide new managers at PIMCO with the resources and guidance they need for
effective leadership. The toolkit covers essential topics and equips new managers with the skills to lead diverse teams, foster
an inclusive work environment, drive impactful leadership through inclusive goal-setting and open-mindedness, and provide
development opportunities.

•

PIMCO is dedicated to offering a comprehensive portfolio of employee benefits designed
to support the health and wellbeing of our employees and their families. Examples of ourofferings include the Grow Your Family program –providing financial support to ensurefamilies have the best access to adoption, surrogacy, fertility services and treatments,

In 2023, we launched the third PIMCO Elevate program in APAC; this is a six-month development program designed to

backup child care and elder care benefits coverage, – and the Lyra mental and emotional

enable and empower the next generation of women leaders in the APAC region advance their careers.

support program.

CORPORATE SUSTAINABILITY REPORT 2023

Introduction & Overview

Sustainable BusinessCommitment to Talent

Empowering Communities

Sustainable Investing

Communication on Progress

CULTIVATING CONNECTION
We invest in increasing employee connectivity to allow diverse thinking to thrive, so together we can identify
opportunities and seek out the best results for our teams, our clients and our communities. To this end,
we delivered:

150+

ROUNDTABLES

15+

SPEAKER EVENTS

150+

SOCIAL AND
NETWORKING EVENTS

Through our firm-wide employee engagement surveys, we have seen a continued increase in the sense ofaccomplishment employees get from their work, as well as an increase in the opportunities available for
employees to connect with one another.
In an effort to foster even greater connectivity across teams and offices, and more sharing of information andexperiences at PIMCO, we organized a number of roundtable sessions and speaker events throughout the year.
In addition, we have developed an Employee Engagement Resource Hub outlining best practices thathave been successfully implemented across PIMCO. This hub empowers employees to implement thesepractices in their own teams to enhance employee engagement.
PIMCO’s Employee Resource Groups (ERGs) play a pivotal role in fostering a supportive and inclusive
environment where every individual feels valued and connected. In 2023, we increased collaboration between
ERGs, including PIMCO Pride and Veterans, and PIMCO Black and Women, partnering together to host speaker
events during the year.
Throughout the year, we also celebrated key dates and heritage months to help raise awareness and bring agreater understanding of the diverse communities represented at PIMCO. Our second PIMCO Women Summit
was a virtual event, attended by more than 1,400 colleagues of all genders. The Summit seeks to inspire
conversation and disseminate tangible learnings.

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CORPORATE SUSTAINABILITY REPORT 2023

Introduction & Overview

Sustainable BusinessCommitment to Talent

Empowering Communities

Sustainable Investing

Communication on Progress

We are dedicated to investing in inclusion and diversity at PIMCO and across the investment management industry more broadly.

PARTNERING ACROSS THE INDUSTRY•

We participated, hosted and sponsored more than 45 I&D external engagements and thought leadership sessions in 2023. By
partnering with our clients, we are not only strengthening our individual organizations, but also setting a powerful example for

We partner with many important organizations to advance progress within

the industry.

our firm and across our industry.
•In the UK, we organized a series of Leaders of Influence events, specifically designed by women, for women in financial services.
These discussions served as an excellent platform for attendees to network and connect with like-minded professionals.

•

We are invested in building the next generation of diverse financial leaders. This year, the Future Leaders Scholarship awarded
73 scholarships.

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CORPORATE SUSTAINABILITY REPORT 2023

Introduction & Overview

Sustainable BusinessCommitment to Talent

Empowering Communities

Sustainable Investing

Communication on Progress

15

Empowering Communities
Our commitment to advancing meaningful social change is an integral part of PIMCO’s
DNA. We are dedicated to helping our nonprofit partners make sustainable progress
through giving, volunteering and thought leadership.

CORPORATE SUSTAINABILITY REPORT 2023

Introduction & Overview

Sustainable BusinessCommitment to Talent

Empowering Communities

Sustainable Investing

Communication on Progress

THROUGH PURPOSE AT PIMCO, EMPLOYEES AND CLIENTS ALIKE
ARE MAKING AN IMPACT IN OUR COMMUNITIES. IN 2023:

62%

OF EMPLOYEES AROUND THE GLOBE WORKED
TO EMPOWER THEIR LOCAL COMMUNITIES WITH:

14,500HOURS

IN 2023, THE PIMCO FOUNDATIONS(US AND EUROPE) DONATED:

$9.1
+
65
41
MILLION TO

CHARITIES IN

148
CHARITIESCOUNTRIES16CORPORATE SUSTAINABILITY REPORT 2023

Introduction & Overview

Sustainable BusinessCommitment to Talent

Empowering Communities

Sustainable Investing

Communication on Progress

PIMCO
GIVES
We donate to high performing nonprofit partners to support vital on-the-ground services and innovative
projects around the globe. Established in 2000, the PIMCO Foundation has funded a wide range of programs
that support and encourage nonprofit partners and employee giving efforts.
•

Employee Matching Program: Financial donations to qualified nonprofits are matched 1:1.

•

Global & Local Grants Program: We support local nonprofits in our communities.

•

Disaster Assistance: We respond to families and communities in need.

PIMCO
ACTS
We volunteer with nonprofit partners around the world to drive meaningful change in our local communities –and create meaningful opportunities for our people. Our culture empowers employees to volunteer their time,skills and expertise; 75% of employees report that they feel more satisfied at work when they volunteer.
•

Global Month of Volunteering: Employees volunteer throughout the year, and every July, we engage in a
firmwide, month-long effort to address both global and local challenges.

•

Feed Our Cities: Employees across the firm raise critical funds and awareness by helping their local foodbanks pack and distribute food at our annual event.

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CORPORATE SUSTAINABILITY REPORT 2023

PIMCO
ADVOCATES
We provide thought leadership and leverage our
voice on behalf of partner organizations to create
solutions and advocate for change. A total of 815
employees engaged in educational advocacy events.

Introduction & Overview

Sustainable BusinessCommitment to Talent

Empowering Communities

Sustainable Investing

Communication on Progress

PROGRAM SPOTLIGHT:
Our Pro Bono program builds awareness and enables multicompany collaboration to address hunger and gender equality issues. Employees
contribute their professional expertise to help nonprofit organizations overcome capacity-building challenges. In 2023, over 90 employees
worldwide donated more than 2,000 hours, resulting in nearly $400,000 in cost savings for nonprofits.

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CORPORATE SUSTAINABILITY REPORT 2023

Introduction & Overview

Sustainable BusinessCommitment to Talent

Empowering Communities

Sustainable Investing

Communication on Progress

AWARDS AND RECOGNITION
The Civic 50 National and Civic 50 OC
PIMCO was recognized again as oneof America’s most community-minded
companies in The Civic 50 – an annual
initiative from Points of Light – determinedthrough an annual survey administeredby True Impact and OneOC. PIMCO has
received the award seven times, making us one of only a small group ofcompanies that have consistently achieved such high marks throughout
the program’s 11-year history.
We were also honored with the Civic 50 OC award, which follows thesame framework for companies in Orange County, California.

Excellence in Leadership Development
Austin Gives: Generous Business AwardPIMCO Pro Bono Corps was recognized by

PIMCO Austin was selected as a winner

the Center for Leadership at California Stateof the Generous Business Award in the

University, Fullerton for its Excellence in Leadership

Community Leader category at the annual

Development, and specifically for its support ofAustin Gives Awards, celebrating theleadership development through volunteerism.

generosity and the charitable efforts of theAustin business community.

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CORPORATE SUSTAINABILITY REPORT 2023

Introduction & Overview

Sustainable BusinessCommitment to Talent

Empowering Communities

Sustainable Investing

Communication on Progress

USING DATA TO ENHANCE COMMUNITY ENGAGEMENTPIMCO’s community engagement program is a vital part of our culture and a cornerstone of our recruitment, retention, talent management, and well-

SPOTLIGHT:
Supporting Talent
Development
through Pro Bono
Proof is in the data: Pro Bono gives
employees an opportunity to progressin their professional objectives andbeing strategies. In 2023, more than 63% of employees contributed to the program, and 99% affirmed its alignment with PIMCO’s values.
To enhance the program for employees, we partnered with Chicago Booth’s Roman Family Center for Decision Research and True Impact, to measureand shape our volunteer events. We also established key performance indicators (KPIs) to drive our volunteering efforts and heighten their impact.
The results and insights gleaned have led firm leadership and department heads to institutionalize the KPIs and develop team-driven plans toenhance community engagement.
Surveys taken by employees throughout the year, show the impact of our community engagement program and enhancements:

development, while addressing thecritical needs of nonprofit partners.


ADVANCE EMPLOYEE EXPERIENCESUPPORT EMPLOYEE GROWTH

81% of participants agreed


20

that, “the pro bono program
developed or refined
their skills”.


100% of nonprofit participants

89%

93%

70%

Increased
communication skills

Deepenedteam relationships

Enhanced
problem-solving

agreed that it increased theiroverall effectiveness.
•

Recognizing the immense benefits
to employees, APAC leadership

80%

Deepened connections
with colleagues

added pro bono work to a

88%

81%

Influenced byleadership commitment

Enhanced professional skills

leadership development programthat targets rising women stars in18%

the region.
Source: Data points are based on 613 anonymous or confidential employee
responses to feedback surveys following Pro Bono Corps, Global Month ofVolunteering, and Feed Our Cities programs in 2023 (overall response rate =32%). Surveys facilitated by True Impact and Taproot Foundation.

Leveraged to develop
relationships with clients90%

Deepened collaboration and teamwork

CORPORATE SUSTAINABILITY REPORT 2023

Introduction & Overview

Sustainable BusinessCommitment to Talent

Empowering Communities

Sustainable Investing

Communication on Progress

FOCUS AREA: ZERO HUNGER
Our 2023 Zero Hunger investments resulted in:

IMPROVED FOOD
SECURITY FOR

1,287,000

POUNDS OF FOOD
RECOVEREDMEALS
DISTRIBUTED

1,210,000

1,463,000

MITIGATING 273
METRIC TONS OF

CO2eTo help economically vulnerable communities gain better access tofood, the PIMCO Foundation partners with the Global FoodBanking
Network (GFN). Currently in the third year of a five-year commitment, thePIMCO Foundation’s $10,000,000 partnership is focused on launching

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and accelerating emerging and start-up food banks in communities
with the highest needs worldwide, and scaling established food banks in
Colombia, Guatemala, and India.

This year, we are proud to mark the graduation of GFN’s initial Food Bank Accelerator cohort, which
launched in 2019 and targets regions where food insecurity is especially acute. Working with:
AFRICAN FOODBANK PARTICIPANTS

PARTNERSHIPBEGAN IN2018

PEOPLE OUR SUPPORT HAS ENABLED
IMPROVED FOOD ACCESS TO~8,000,000

ASIAN FOOD BANKPARTICIPANTS

6

7

FOOD ACCESS INCREASED FROM:

1,000,000

NEW PARTICIPANTS

TO

9,000,000

NEW PARTICIPANTS

CORPORATE SUSTAINABILITY REPORT 2023

Introduction & Overview

Sustainable BusinessCommitment to Talent

Empowering Communities

Sustainable Investing

Communication on Progress

SPOTLIGHT:
Technology Advancing Food Access:
Globally, only ~5% of redistributed foodgets to the end-user via virtual models(such as apps). FoodCloud, Dublin’s local bank partner,
has developed an innovative model, redistributing 30% of
all food through a mobile app, Foodiverse, funded by the
PIMCO Foundation.

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In the U.S., the PIMCO Foundation
partnered with Feeding America
to support 10 communities insouthern, rural states predominately
populated by historicallyunderserved minorities with lessaccess to food programs.
While Supplemental Nutrition Assistance Program (SNAP) is beneficial
for low-income families, there are significant participation gaps. To
ensure households aren’t left behind, the PIMCO Foundation also helped
the Orange County Food Bank take strategic measures to increaseenrollment rates by a minimum of 2,500 individuals. This will have an
estimated economic impact of $2,100,000 in savings.

CORPORATE SUSTAINABILITY REPORT 2023

Introduction & Overview

Sustainable BusinessCommitment to Talent

Empowering Communities

Sustainable Investing

Communication on Progress

FOCUS AREA: GENDER EQUALITY
The PIMCO Foundation partners with localorganizations to support the economic
empowerment of vulnerable women andgirls. Globally, the PIMCO Foundation works with Nomi Network, anorganization that helps highly vulnerable women and survivors of humantrafficking achieve financial independence. The Foundation’s most recent
3-year, $3,000,000 commitment supports the continued success ofNomi’s Workforce Development (WFD) Program initiative across India,
and expands the program in the U.S. This year, through the Foundation’s
support of Nomi Network we were able to see:

WOMEN ATTAIN,RETAIN, OR IMPROVEEMPLOYMENTWOMEN AND
GIRLS REACHED

Nomi Success Story
Aarti is from a region rife with trafficking
and high levels of pollution, and is also home to India’s
largest coal mining industry. Aarti and her siblings could
not afford to go to school, and she was almost married off
at a young age. Thanks to the partnership of the PIMCO
Foundation, Nomi was able to train Aarti and help her safely
migrate to the south of India to work at Shahi Industries,

683

12,272SPOTLIGHT:

India’s largest garment exporter. Aarti now earns $200 per
month and sends money home, enabling her mother toconvert their mud shack into a brick home. Aarti’s younger
siblings are also able to continue to attend school.

The PIMCO Foundation also supports local gender equality partners
around the globe, in the communities where we live and work, helping to876
WOMEN & GIRLS BECOME ADVOCATES OF GENDER EQUALITY
AND FINANCIAL STRENGTH IN THEIR OWN COMMUNITIES

empower women and girls to attain greater financial stability.

23

CORPORATE SUSTAINABILITY REPORT 2023

Introduction & Overview

Sustainable BusinessCommitment to Talent

Empowering Communities

Sustainable Investing

Communication on Progress

HIGHLIGHTING THE 2023 GRANTEES:GLOBAL
Nomi Network

Global FoodBanking Network

EMEA
DublinLondonFoodCloudAoibhneas

AMERICAS
Austin,Newport Beach,
New York

FareShare

Latinitas

MyBnk

Black Girl Ventures

The Passage

AustinHouse of St. Barnabas

Milan

Pane Quotidiano

MunichMuchner Tafel

APAC

Hong Kong

Families Forward
Girls Inc.
Newport Beach

Community Action Partnership of Orange County (OC Food Bank)
Futures & Options

Feeding Hong Kong Limited

Per Scholas
Covenant HouseNew York

TaiwanTaiwan People’s Food Bank Association

Safe Horizon
Figure Skating in Harlem
Hot Bread Kitchen

The Food Bank Singapore LTD.
Foodbank Australia Limited

Casa Teresa
Tiyya Foundation

EMpower Hong Kong

SydneyThe Wooden Floor
FreeFrom

Room to Read

Daughters of Tomorrow

Feeding South Florida Inc
Boys & Girls Clubs of Central Orange Coast

United Women Singapore
Singapore

Austin Community Foundation
Central Texas Food Bank Inc

Miami

AlsamaGirls Empowerment Network
JUST Community

Wonder Foundation

APAC

Rock the Street, Wall Street

New York Common Pantry
Solana Beach

Feeding San Diego

TorontoDaily Bread Food Bank

24

CORPORATE SUSTAINABILITY REPORT 2023

Introduction & Overview

Sustainable BusinessCommitment to Talent

Empowering Communities

Sustainable Investing

Communication on Progress

Sustainable Investing
We believe that leadership in sustainable investing is an important

We believe that for financial markets to prosper over the super-secularfactor in meeting our clients’ financial objectives as well as supporting

horizon, growth must be sustainable. In the past decade, PIMCO has

long-term, sustainable economic growth globally—for the benefit ofsignificantly expanded its approach to sustainability and our range ofour clients, markets, and societies.

dedicated ESG solutions. This reflects our belief that more and more clients

For PIMCO, sustainable investing represents an approach that seeks
to appropriately consider material issues in investment decision
making and portfolio construction. This includes issuers’ impact on

will seek strategies to address a range of environmental and social risks andopportunities – from climate change to social issues – many of which havebeen accentuated by the global pandemic and geopolitical disruption.

the environment and society more broadly—linked, for example, to the

Our approach to sustainable investing rests on two pillars. First,

Sustainable Development Goals and the Paris Climate Accord.

we integrate ESG analysis into the firm’s robust investment

For over 50 years, we have helped millions of clients pursue theirfinancial goals. A significant driver of our investment process is our
secular focus– which often includes sustainability issues and how
they impact long term valuations– as well as our rigorous approachto analysis and risk management. More recently, we’ve offeredprocess, recognizing that ESG factors can be material inputs in our
understanding of the risks inherent in global economies, markets,
industries, and business models. We integrate these factors into ourinvestment research and decision making when relevant and material,
an effort to effectively manage portfolio risk.

strategies that incorporate sustainability goals, and have reinforced

Second, for investors seeking a greater sustainability orientation in their

our commitment to integrating material environmental, social andportfolios, PIMCO offers a platform of dedicated solutions focused on

governance (ESG) factors in our investments when we endorsed thedelivering financial returns along with sustainability objectives, aligned

Principles of Responsible Investment (PRI) in 2011.

with fiduciary duty and investment objectives.

25

CORPORATE SUSTAINABILITY REPORT 2023

Introduction & Overview

Sustainable BusinessCommitment to Talent

Empowering Communities

Sustainable Investing

Communication on Progress

ESG INTEGRATION IN PIMCO’S INVESTMENT RESEARCH PROCESSAs outlined in PIMCO’s sustainability philosophy*, we believe the consideration of relevant ESG factors is part of a robust investment research
process. ESG factors may be important inputs when evaluating long-term investment opportunities and risks across asset classes in both public andprivate markets. ESG factors may include but are not limited to: climate change risks, resource efficiency, natural capital, human capital management,
human rights, regulatory risks, balance sheet management, and reputational risk at an issuer level, among others. We recognize that ESG factors may
be increasingly important inputs when evaluating global economies, markets, industries, and business models.
The relevance of ESG factors to PIMCO’s investment decisions may vary across asset classes, strategies, products, valuations, and investment
horizons. Integrating relevant ESG factors into the evaluation process does not mean that ESG-related information is the sole or primary consideration
for an investment decision; instead, PIMCO’s portfolio managers and analysts consider a variety of factors and their materiality when making
investment decisions. By increasing and diversifying the information available to the portfolio management team, we seek to provide a more holistic
view of an investment, which we believe will benefit our clients.
As illustrated below, PIMCO blends macro analysis with extensive bottom-up analysis.

26

TOP-DOWN
Speakers include Nobel prize winners, heads of state, renowned
academics, global central bankers

Themes identified through annual Secular Forum process

Climate change

Geopolitics

Corporate
governance

Inequality

Cybersecurity

Understanding all material risks is critical to making soundinvestment decisions, for example:

Specialty desks, credit analysts, security selection
Environment
Employs resource efficiency, fromwaste to energy consumption

Demographics
trendsSocialEnsures sound product safety and quality
standards to protect end-users

GovernanceManagement’s capacity to
manage risk over the cycle

BOTTOM-UP
For Illustrative Purposes only.
*   PIMCO’s sustainability philosophy is comprised of four objectives: stewards of our client’s capital; client-centric approach to sustainability; fiduciary duty to consider relevant risks in our investment
process; and a platform to engage with issuers.

CORPORATE SUSTAINABILITY REPORT 2023

Introduction & Overview

Sustainable BusinessCommitment to Talent

Empowering Communities

Sustainable Investing

Communication on Progress

For additional information on our approach to sustainable investing, please see PIMCO’s Sustainable Investing Report.

PIMCO’S SUSTAINABLE INVESTMENT SOLUTIONS
We have developed a suite of sustainable investment solutions for clients seeking risk-adjusted returns and the inclusionof sustainability strategies7 and guidelines in the investment selection process. These may include actively managing theportfolio’s carbon footprint, achieving a meaningful green, social, sustainable or sustainability linked (GSS)8 bond allocation
and/or a tilt toward issuers with leading or improving, ESG characteristics. These investment solutions build on PIMCO’s nearly
50-year core investment processes, while actively incorporating our clients’ sustainability objectives.
For clients seeking greater sustainability orientation in their portfolio, PIMCO’s dedicated suite of mandates that follow sustainability
strategies and guidelines utilize three building blocks of our ESG portfolio construction process:1

Limit sectors and issuers with higher ESG risk factors.

2

Emphasize issuers with leading and improving ESG risk-mitigation strategies and those who seek to capitalize on
sustainable operations and business models.

3

Engage constructively with issuers to help influence ESG and sustainability practices over time.

27

7 Sustainable Strategies are strategies with client-driven sustainability requirements. For these strategies, PIMCO actively incorporates sustainability principles (i.e. excluding issuers fundamentally misaligned with sustainability factors, evaluating issuers using proprietary and independent ESG
scoring) consistent with those strategies and guidelines. Further information is available in PIMCO’s Sustainable Investment Policy Statement. For information about funds that follow sustainability strategies and guidelines, please refer to the fund’s prospectus for more detailed information related
to its investment objectives, investment strategies, and approach to sustainable investment.
8 Green Bonds: are a type of bond whose proceeds are used to finance or re-finance new and existing projects or activities with positive environmental impact. Eligible project categories include: renewable energy, energy efficiency, clean transportation, green buildings, wastewater management andclimate change adaptation.
Social Bonds: are a type of bond whose proceeds are used to finance or re-finance social projects or activities that aim to address or mitigate a specific social issue or seek to achieve positive social outcomes. Social project categories include providing and/or promoting: affordable basic
infrastructure, access to essential services, affordable housing, employment generation, food security, or socioeconomic advancement and empowerment.
Sustainability Bonds: are a type of bond whose proceeds are used to finance or re-finance a combination of green and social projects or activities. Sustainability bonds with strict accountability of the use of proceeds towards activities that advance the UN Sustainable Development Goals or SDGs
may be labeled as SDG Bonds.
Sustainability-linked Bonds: are bonds which are structurally linked to the issuer’s achievement of certain sustainability goals, such as through a covenant linking the coupon of a bond to specific environmental and/or social goals. Progress, or lack thereof, toward the aforementioned goals or
selected key performance indicators results in a decrease or increase in the instrument’s coupon. In contrast to the green, social and sustainability bonds described above, sustainability-linked bonds do not finance particular projects but rather finance the general functioning of an issuer that has
explicit sustainability targets that are linked to the financing conditions of the bond.

CORPORATE SUSTAINABILITY REPORT 2023

Introduction & Overview

Sustainable BusinessCommitment to Talent

Empowering Communities

Sustainable Investing

Communication on Progress

Clients around the world define their sustainability objectives differently and require a variety of tailoredsolutions to achieve their objectives. We are committed to helping clients pursue their investing goals andare well equipped to partner with clients to explore the possibility of implementing custom mandates withsustainability strategies and guidelines tailored to their needs, as well as their risk and return profiles. As
markets and investor demands continue to develop, PIMCO will actively engage with our clients to implement
thoughtful solutions that aim to deliver on their goals and objectives.

SHAPING MARKET CONVENTION: ENGAGEMENT WITH ISSUERS
AND COMPANIESAs one of the world’s largest bondholders, we use our platform to engage with issuers on factors we believe
are material to risk and return considerations, including ESG topics. We engage to uncover investment
insights, mitigate risk, and capitalize on prospective opportunities, with the potential to help influence
investment outcomes.
We believe that working with issuers to support enhancing their operational practices can have a moresignificant impact – especially for issuers with higher exposure to ESG related risks. We aim to create value
and influence positive momentum by engaging with companies at different stages of their sustainability
journey, particularly those in historically hard-to-abate sectors. Our engagement practices, spanning diverse
asset classes and types of issuers, are designed to help drive efficiencies, which may also benefit additional
stakeholders. The purpose and structure of our engagements are underpinned by creating value for our clients.

28

CORPORATE SUSTAINABILITY REPORT 2023

PIMCO SUSTAINABILITY GLOBAL
AND INDUSTRY LEADERSHIPAs a leading global investment manager, we partnerwith a number of key industry groups, including
those listed below, to help drive a coordinatedIntroduction & Overview

Sustainable Business

AFFILIATION

Commitment to Talent

Empowering Communities

Sustainable Investing

Communication on Progress

OVERVIEW• The UN-supported Principles for Responsible Investment (PRI) is the world’s largest investor initiative focusing on integrating
ESG factors into the investment processes.

Principles for Responsible Investment
PIMCO is a Signatory• PIMCO is an active signatory of the PRI and engaged in several workstreams, including Chairing the PRI Sustainable
Development Goals Advisory Committee (SDG), and as a member of the Advance Initiative’s Advisory Committee, working toadvance human rights action.

global approach.
• The UN Global Compact is a principles-based framework for businesses aimed at advancing sustainable and responsible
policies and practices.
UN Global Compact
PIMCO is a Member

UN Global Investors for Sustainable Development
Alliance (GISD)PIMCO is a Member• PIMCO supports the Ten Principles of the UN Global Compact with respect to human rights, labor, the environment, and anticorruption – and is committed to incorporating them into our strategy, culture, and day-to-day operations.
• PIMCO co-chairs the UN Global Compact’s CFO Coalition, an effort to create a movement of chief financial officers to address
SDG investment and financing.
• PIMCO is one of only 30 members of the UN Secretary-General’s GISD Alliance, which focuses on accelerating investment into
sustainable development. In partnership with investors, governments, and multilateral institutions, the GISD will drive investment
towards achieving the UN’s Sustainable Development Goals (SDGs).

• PIMCO is a signatory of the CDP, an organization that runs the disclosure system for stakeholders across the globe to
manage the environmental impact of greenhouse gas emissions. It is backed by approximately 680 investors totaling over$130 trillion in assets.
Carbon Disclosure Project (CDP)
PIMCO is a Signatory

29

CORPORATE SUSTAINABILITY REPORT 2023

Introduction & Overview

Sustainable Business

AFFILIATIONOVERVIEWISSB Investor Advisory Group (lIAG)
PIMCO is a Founding Member• Under the umbrella of the Value Reporting Framework, thiscomprises asset owners and managers who recognize theneed for consistent, comparable, and reliable disclosure of
ESG information. The group participates in the ongoingstandards development process and encourages companies
to participate in the development process.

Commitment to Talent

AFFILIATION

Sustainable Investing

Communication on Progress

OVERVIEW• CBI is a leading organization focused on fixed income andclimate change solutions.

Climate Bonds Initiative (CBI)PIMCO is a Partner• CBI has been instrumental in supporting more robust data
disclosure and standards to propel the green bond market
and remains heavily involved in shaping new green-bondregulations.

• The One Planet initiative was created following the 2015 Paris
Agreement to mitigate the effects of climate change.

• IIGCC is the leading investor coalition on climate change,
with more than 350 members across 23 countries, managing
over €50 trillion in assets.
Institutional Investors Group on Climate Change (IIGCC)
PIMCO is a Member

Empowering Communities• IIGCC drives investor collaboration to combat climate change
and takes action for a low-carbon future.
One Planet Framework
PIMCO is a Member• The framework aims to help sovereign wealth funds foster ashared understanding of climate change by identifying
climate-related risks and opportunities, and enhancing
decision-making to better inform their priorities as
responsible investors.

30

CORPORATE SUSTAINABILITY REPORT 2023

Introduction & Overview

Sustainable BusinessCommitment to Talent

Empowering Communities

Sustainable Investing

Communication on Progress

UN Global Compact:
Communication on Progress
In May 2017, PIMCO officially endorsed Ten Principles of the UN Global Compact with respect to human rights,
labor, environment, and anti-corruption.

31

CORPORATE SUSTAINABILITY REPORT 2023

Introduction & Overview

We recognize that a key requirement for participation in the Global

Sustainable BusinessCommitment to Talent

Empowering Communities

Sustainable Investing

Communication on Progress

Please see below for specific areas within this report where practical actions in relation to the Ten Principles are described.

Compact is the annual submission of a Communication on Progress (COP)
describing PIMCO’s efforts to implement the Ten Principles. We fulfill thisSustainable Business

requirement via this annual Corporate Sustainability Report and through the• Code of Business Conduct

Within this report and through the questionnaire, we have therefore
integrated the following content:•

A statement by our Chief Executive Officer emphasizing continued

Human Rights

new required questionnaire on the UN Global Compact website.

• UN Statement on Human Rights• Modern Slavery Act Statement

Commitment to Talent

Empowering Communities

Sustainable Investing• Partnerships to advance diversity
within PIMCO and acrossthe industry• PIMCO Foundation donations toward
SDGs 2 & 5. Establishment of clear
goals related to Zero Hunger,
Gender Equality.

• Integration of human rights andsocial factors in investment analysis,
where applicable.

• Transgender Inclusion training• NOMI Network partnershipon modern slavery

support for the Global Compact and renewing our ongoingcommitment to the initiative and its principles;A description of programs and practical actions that PIMCO
undertook in the year covered to implement the Global Compact
principles in each of the four issue areas (human rights, labor,• Vendor Management and related
due diligence questions
Labor

•

PIMCO is the Co-Chair of the UN Global Compact’s “CFO Coalition for
the SDGs”, as well as a member of the UN Secretary-General’s Global

Environment

Global Compact’s call-to-action on the Sustainable Development Goals.

• Employee Resource Groups• Between 60 percent and90 percent year-over-year
engagement by
employees: volunteerism• Incorporation of UNGC labor
principles in investment analysis
and engagement• Sustainable food production andfood security• Incorporation of UNGC
environmental principles ininvestment analysis
and engagement• Business-specific I&D goals

A measurement of outcomes, where feasible.

In addition to the core commitments, PIMCO is advancing the UN• Inclusion & Diversity• Comprehensive employee
benefits designed to support
health and wellbeing

environment, anti-corruption); and•• FoodCloud andFoodiverse Expansion

Anti-Corruption

Investors for Sustainable Development Alliance.

• Commitment to UNGC’s
environmental principles
in operations• Scientific approach to managing
PIMCO’s carbon footprint
by assessing global offices
and operations• Engagement with companies,
sovereigns and other investments onhuman rights and related
commitments and records• Incorporation of indicators thatassess human capital in investment
analysis and engagement• Incorporation of environmental
indicators in investment analysis
and engagement• Vendor Management and related
due diligence question• Commitment to TCFD

• Code of Conduct committing all
employees to carry out
fiduciary obligations• Incorporation of UNGC’s anticorruption principle in investment
analysis and engagement• Compliance with Anti-Corruption
laws and regulations, with regulartraining on corruption and bribery for
all employees• Incorporation of business ethics andconduct indicators in investment
analysis and engagement

32

The information contained herein is as of December 31, 2023 unless otherwise noted.
Environmental (“E”) factors can include matters such as climate change, pollution, waste, and how an issuer protects and/or conserves natural resources. Social (“S”) factors can include how an issuer manages its relationships with individuals, such as its employees, stakeholders,customers and its community. Governance (“G”) factors can include how an issuer operates, such as its leadership, pay and incentive structures, internal controls, and the rights of equity and debt holders.
Sustainable Strategies are strategies with client-driven sustainability requirements. For these strategies, PIMCO actively incorporates sustainability principles (i.e. excluding issuers fundamentally misaligned with sustainability factors, evaluating issuers using proprietary and independent
ESG scoring) consistent with those strategies and guidelines. Further information is available in PIMCO’s Sustainable Investment Policy Statement. For information about funds that follow sustainability strategies and guidelines, please refer to the fund’s prospectus for more detailed
information related to its investment objectives, investment strategies, and approach to sustainable investment.
There is no assurance that the socially responsible investing strategy and techniques employed will be successful.
PIMCO’s credit research analysts assess the Environmental, Social, and Governance (“ESG”) profile of corporate, municipal, and sovereign issuers relative to peer issuers with a goal of separating leaders from laggards. Using industry-specific ESG frameworks, analysts review issuers’ ESG
performance based on information available in public filings, recent ESG news and controversies, as well as through engagement with company management teams. Analysts assign three separate numerical scores from 1 to 5 (with 5 being the highest) to their environmental, social andgovernance-based business practices. The score in each category is related to an issuer’s rank relative to industry peers, and the relative weights of the E, S, and G scores in the composite score vary based on industries, as each industry is assigned a different factor weight. For example,
the environmental category has the greatest weight for issuers in extractive industries (e.g., oil, gas, and mining), the social category has the greatest weight for pharmaceutical issuers, and the governance category has the greatest weight for financial issuers. Analysts also include a
forward-looking ESG trend assessment, which recognizes companies whose ESG performance is significantly improving or deteriorating. These factors are combined to create a proprietary composite ESG issuer score.
PIMCO’s credit research analysts also assess green, social, sustainability, and sustainability-linked bonds (collectively “ESG bonds”) at an issuance level, including prior to and after issuance. Utilizing PIMCO’s proprietary ESG Bond Framework assessment, credit analysts evaluate such
instruments starting with the strategic fit, assessing the alignment of the issuers’ ESG-related strategies with the bond’s objectives and use of proceeds, key performance indicators (KPIs), and the evidence of significant positive impact of the activities compared to “business as usual”. We
continuously screen for “red flags” and controversies through this process and also assess the degree of reporting by the issuer to analyze misalignment with key market standards, such as the Green Bond Principles. These factors result in a proprietary ESG bond score ranging from 1 to
5 (with 5 being the highest). PIMCO does not score all ESG bonds. Unassessed ESG bonds receive a default score of 3. ESG bonds holdings in PIMCO portfolios are then assigned a score that combines the issuer’s ESG score and the ESG bond score. Specifically, an ESG bond holdingreceives the ESG issuer score plus an adjustment ranging from 0 up to 1.0 point, depending on the type of ESG bond (use of proceeds or sustainability-linked) and the quality of the ESG bond according to PIMCO’s proprietary assessment. Holdings of securitized ESG bond issuances(asset-backed securities, collateralized loan obligations, collateralized mortgage obligations, collateralized debt obligations, and mortgage pass through securities) receive the ESG issuer score and are not adjusted.
We use MSCI and other third-party ratings for reference but make our own assessment based on our own, independent analysis of the industry and relevant ESG factors. PIMCO’s resulting assessments are proprietary and distinct from those provided by ESG rating providers. Inclusion of a
proprietary PIMCO ESG rating creates a conflict of interest because PIMCO and its affiliates benefit when PIMCO assigns a particular security a high score, or assigns a benchmark index or security a low score.
All investments contain risk and may lose value. ESG investing is qualitative and subjective by nature, and there is no guarantee that the factors utilized by PIMCO or any judgment exercised by PIMCO will reflect the opinions of any particular investor, and the factors utilized by PIMCO
may differ from the factors that any particular investor considers relevant in evaluating an issuer’s ESG practices. In evaluating an issuer, PIMCO is dependent upon information and data obtained through voluntary or third-party reporting that may be incomplete, inaccurate or unavailable,or present conflicting information and data with respect to an issuer, which in each case could cause PIMCO to incorrectly assess an issuer’s business practices with respect to its ESG practices. Socially responsible norms differ by region, and an issuer’s ESG practices or PIMCO’s
assessment of an issuer’s ESG practices may change over time. There is no standardized industry definition or certification for certain ESG categories, for example “green bonds”; as such, the inclusion of securities in these statistics involves PIMCO’s subjectivity and discretion. There is no
assurance that the ESG investing strategy or techniques employed will be successful. Past performance is not a guarantee or reliable indicator of future results.
Statements concerning financial market trends or portfolio strategies are based on current market conditions, which will fluctuate. There is no guarantee that these investment strategies will work under all market conditions or are appropriate for all investors and each investor should
evaluate their ability to invest for the long term, especially during periods of downturn in the market. Outlook and strategies are subject to change without notice.
Carbon Footprint refers to the calculation of the total GHG emissions (scope 1 and scope 2) of corporates in the portfolio normalized by the bond exposure of corporates in the portfolio and expressed as a carbon dioxide equivalent.

This material contains the current opinions of the manager and such opinions are subject to change without notice.  This material is distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy orinvestment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed.
PIMCO as a general matter provides services to qualified institutions, financial intermediaries and institutional investors. Individual investors should contact their own financial professional to determine the most appropriate investment options for their financial situation. This is not an offer
to any person in any jurisdiction where unlawful or unauthorized. | Pacific Investment Management Company LLC, 650 Newport Center Drive, Newport Beach, CA 92660 is regulated by the United States Securities and Exchange Commission. | PIMCO Europe Ltd (Company No. 2604517,
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AFSL 246862. This publication has been prepared without taking into account the objectives, financial situation or needs of investors. Before making an investment decision, investors should obtain professional advice and consider whether the information contained herein is appropriate
having regard to their objectives, financial situation and needs. To the extent it involves Pacific Investment Management Co LLC (PIMCO LLC) providing financial services to wholesale clients, PIMCO LLC is exempt from the requirement to hold an Australian financial services licence inrespect of financial services provided to wholesale clients in Australia. PIMCO LLC is regulated by the Securities and Exchange Commission under US laws, which differ from Australian laws. | PIMCO Japan Ltd, Financial Instruments Business Registration Number is Director of Kanto
Local Finance Bureau (Financial Instruments Firm) No. 382. PIMCO Japan Ltd is a member of Japan Investment Advisers Association, The Investment Trusts Association, Japan and Type II Financial Instruments Firms Association. All investments contain risk. There is no guarantee thatthe principal amount of the investment will be preserved, or that a certain return will be realized; the investment could suffer a loss. All profits and losses incur to the investor. The amounts, maximum amounts and calculation methodologies of each type of fee and expense and their total
amounts will vary depending on the investment strategy, the status of investment performance, period of management and outstanding balance of assets and thus such fees and expenses cannot be set forth herein. | PIMCO Taiwan Limited is an independently operated and managed
company. The reference number of business license of the company approved by the competent authority is (112) Jin Guan Tou Gu Xin Zi No. 015 . The registered address of the company is 40F., No.68, Sec. 5, Zhongxiao East Rd., Xinyi District, Taipei City 110, Taiwan (R.O.C.), and thetelephone number is +886 2 8729-5500. | PIMCO Canada Corp. (199 Bay Street, Suite 2050, Commerce Court Station, P.O. Box 363, Toronto, ON, M5L 1G2) services and products may only be available in certain provinces or territories of Canada and only through dealers authorized for that
purpose. | Note to Readers in Colombia: This document is provided through the representative office of Pacific Investment Management Company LLC located at Carrera 7 No. 71-52 TB Piso 9, Bogota D.C. (Promoción y oferta de los negocios y servicios del mercado de valores por partede Pacific Investment Management Company LLC, representada en Colombia.). Note to Readers in Brazil: PIMCO Latin America Administradora de Carteiras Ltda.Av. Brg. Faria Lima, 3477 Itaim Bibi, São Paulo - SP 04538-132 Brazil. Note to Readers in Argentina: This document may beprovided through the representative office of PIMCO Global Advisors LLC AVENIDA CORRIENTES, 299, Buenos Aires, Argentina. | No part of this publication may be reproduced in any form, or referred to in any other publication, without express written permission. PIMCO is a trademark ofAllianz Asset Management of America LLC in the United States and throughout the world. ©2024, PIMCO.
NOTE TO READERS BASED IN CANADA: This material is for institutional investor use only - not for public distribution. The materials contained herein are provided for informational purposes only and are not “sales communications”, as defined in NI 81-102. They may not, under
any circumstances, be used in relation to, or in connection with, the promotion of any NI 81-102 fund in Canada.

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