<\/p>\n
PGIM\u2019s \u201cParis-aligned\u201d investments rose by 46 percent in just a year, according to its latest sustainability report.<\/p>\n
The\u00a0$1.4 trillion asset management arm of Prudential Financial revealed that its allocation to assets deemed to be aligned with the Paris climate agreement hit $25 billion<\/a> in 2025, up from the $17.2 billion\u00a0it reported for\u00a02024<\/a>.\u00a0\u00a0<\/p>\n The manager has not responded to a request for more information on what is behind the increase.\u00a0<\/p>\n PGIM\u2019s 2024 ESG Investing Report set out definitions under its proprietary ESG Taxonomy, in which Paris-aligned investing was defined as \u201cimplementing a decarbonisation strategy for a portfolio to achieve a temperature scenario of well below 2C\u201d.<\/p>\n This can be achieved using different approaches, the asset manager noted, including reducing financed emissions or emissions intensity, decreasing portfolio temperature or directing investments towards low-carbon technologies.\u00a0<\/p>\n The latest report refers to a Sustainability Taxonomy rather than an \u201cESG\u201d framework, but it uses the same categories.\u00a0<\/p>\n PGIM also revealed that its impact investments dropped by close to a third, down from $1.4 billion in 2024 to $1 billion last year. \u00a0<\/p>\n Strategies with a \u201cpositive alignment\u201d \u2013 where the portfolio or investable universe is \u201cconstructed or tilted based on positive ESG characteristics or performance of assets or investments\u201d \u2013 increased to $38 billion from $29.4 billion over the same period. \u00a0<\/p>\n Overall, PGIM revealed that around 36 percent of its total assets are in portfolios with \u201cbinding sustainability features\u201d, while nearly 90 percent ($1.3 trillion) have \u201cmaterial sustainability factors\u201d integrated into the investment process.\u00a0<\/p>\n Feasibility of 1.5C \u00a0<\/p>\n PGIM also revealed that it held round tables last year to discuss the feasibility of climate targets with clients in the UK, Australia and Canada \u2013 including \u201cwhether 1.5C remains a credible reference point for portfolio alignment and what alternative assumptions should inform investment decision-making\u201d.\u00a0 \u00a0<\/p>\n \u201cA clear point of consensus was the need for transparency about what investors can and cannot realistically influence, particularly on systems-level outcomes,\u201d it added.\u00a0<\/p>\n The manager joined several new initiatives in 2025, including the Partnership for Biodiversity Accounting Financials, the Methane Abatement Financing Taskforce and the Emerging Markets Investors Alliance. \u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"PGIM\u2019s \u201cParis-aligned\u201d investments rose by 46 percent in just a year, according to its latest sustainability report. The\u00a0$1.4…\n","protected":false},"author":2,"featured_media":62138,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[24242,824,38577,1788,30],"class_list":["post-62137","post","type-post","status-publish","format-standard","has-post-thumbnail","category-paris","tag-asset-managers","tag-climate-change","tag-impact-investing","tag-net-zero","tag-paris"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/posts\/62137","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/comments?post=62137"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/posts\/62137\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/media\/62138"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/media?parent=62137"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/categories?post=62137"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/tags?post=62137"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}