Asset manager Pimco has been awarded ESG Investment of the Year for fixed income because the judges were impressed by its Climate Bond Strategy approach.

Launched in December 2019, the Climate Bond Strategy offers a multi-sector credit portfolio that aims to foster the transition to a net zero-carbon economy while seeking risk-adjusted returns comparable to an investment-grade credit portfolio.

The strategy invests in those issuers demonstrating global leadership on climate action through labeled and unlabelled green bonds targeting specific low-carbon investments, as well as the bonds of issuers demonstrating innovative approaches to environmental sustainability.

Pimco has also developed several proprietary tools to help uncover opportunities and manage climate risk in investment portfolios, such as the Climate Macro Tracker to monitor the broad momentum in climate change and measure the gap between real-world metrics and global climate goals.

The wide range of bonds in the Climate Bond Strategy may finance climate solution projects such as renewable energy, green buildings, more sustainable supply chains, bank lending to support a low-carbon economy, or even food companies focused on plant-based products.

Commenting on the win, Olivia Albrecht, head of ESG business strategy at Pimco, said: "Climate change will have a profound impact on all aspects of the global economy, and innovative ideas are needed to create opportunities for sustainable growth, for the benefit of all.

"The size and nature of the global bond market means fixed income investors can drive meaningful action to address climate change risks." EF