Our Approach to Sustainable Investing | Lord Abbett

 

Our Approach to Sustainable Investing

We invest for our clients with the intent of supporting their values, making a positive impact, and providing financial security for generations.

Our higher purpose—securing a sustainable future for our clients, our people, and our world—is an integral part of all our investment strategies and informs our approach to environmental, social, and governance (ESG) investing. We are driven by our responsibility as a global corporate citizen to ensure sustainable benefits for our stakeholders—seeking to secure long-term financial security for our clients, empowering our people, and advancing our communities—while doing our part to address global issues that affect our planet’s future.

One of the most profound ways we can create positive impact is by evaluating and engaging with companies regarding their actions to address and support ESG issues. We evaluate investee companies’ ethical commitments to creating beneficial and measurable impacts on society and the environment, which we believe are key factors in achieving superior long-term investment performance. Our ESG efforts to secure a sustainable future are guided by the principles of the United Nations 2030 Agenda for Sustainable Development, including those addressing climate change, diversity, human rights, labor standards, and poverty.

Our investment platform includes strategies beyond those that integrate ESG. In 2020, we launched our first sustainability-themed fund, the Lord Abbett Climate Focused Bond Fund. The strategy invests in securities of issuers that we believe have, or will have, a positive impact on the climate through their operations or the products and services they provide. It focuses on five major themes: 1) clean energy, 2) energy efficiency, 3) water-related issues, 4) low carbon transportation, and 5) other environmental issues such as waste management and recycling. The Climate Focused Bond Fund is available to U.S. investors as a mutual fund and to non-U.S. investors as a UCITS fund.

As we continue to advance our ESG investing efforts, we remain steadfast in our commitment to our mission as a global corporate citizen.

Overview of Our Approach

  • Our Executive Committee provides leadership and strategic direction to the firm.
  • Our Investment Committee empowers the investment team to operate at peak performance.
  • Our Global Corporate Citizenship Committee is responsible for ensuring that we deliver on our mission to secure a sustainable future for our clients, our people, and our world.

  • Investment teams across equities, fixed income, and municipal bonds conduct disciplined ESG analysis and engagement.
  • Our Investment Stewardship Council is comprised of leaders across the organization and ensures effective governance over all forms of ESG engagement.
  • Strategic partnerships strengthen our ESG focus.

 

  • Our Quantitative Research team works with our investment teams to develop proprietary models and analytics to enable instructive ESG analysis.
  • Our Risk Management team produces risk reports that inform our investment decisions.
  • Our Digital and Transformation team maintains a scalable and reliable platform that allows us to leverage risk analytics utilizing modern, interactive functionality, and proprietary content integration.

ESG Milestones

* As of 12/31/20

** PRI is Principles for Responsible Investment. The PRI assessment is not an overall organizational score.
Please refer to Impact Through Strategic Industry Partnerships for more information on the PRI Assessment Report.

*** 2019-2020 Proxy season (July 1, 2019 - June 30, 2020).

† Based on analysis of asset managers with at least $100 billion in assets under management and voting at least 50 proposals each year.

‡ Percentages are not an indication of how well each asset class scored in ESG Risk Ratings, but simply the  percentage of securities that have been assigned a risk rating. As of 12/31/20.

US Financial Advisors

We help advisors, plan sponsors, and committees meet the needs of clients.


 

US Institutions and Consultants

We offer a range of Institutional investment strategies—each supported by a dedicated service team committed to delivering an exceptional client experience.

arrow_forward

Global Strategies for non-US Clients

We offer a range of products that provide non-U.S. resident investors and non-U.S. institutions with access to select Lord Abbett investment strategies.