Investing Sustainably

Newark Prudential Tower

Responsible Investing Statement

For more than 140 years, Prudential Financial, Inc. (“Prudential”) has committed to keeping its long-term promise of helping our customers achieve financial security and peace of mind by offering insurance and retirement products and services.

Our commitment requires that we invest the premiums and fees collected from our customers in high-quality assets that effectively hedge the products we sell. This approach is referred to as liability-driven investing. In constructing such portfolios, we take a long-term view of the risks and opportunities across assets and asset classes, a view that considers fundamental financial analysis as well as environmental, social and governance (“ESG”) factors.

Prudential’s Chief Investment Office Responsible Investing Policy governs Prudential’s investment activities as an asset owner across all General Account (GA) assets for the company’s wholly owned insurance company affiliates. This policy applies to all asset managers (internal or external) and the assets they manage on behalf of Prudential’s GA.

Renewable Energy Investments

Prudential invests its own and client assets in renewable power generation. Prudential remains an active renewables investor and continues to put new money to work in the space.

Renewable Energy Investments

FHA/Agency Multifamily Originations Green Program

From 2019 to 2020, PGIM Real Estate’s FHA/ agency multifamily loan production through the green programs increased by 107%. In 2020, 18% of PGIM Real Estate’s total FHA/ agency multifamily originations have been through green programs compared to 15% in 2019

  • 2020 was PGIM RE’s third consecutive year setting a new all-time high in multifamily lending, totaling $10.9B —led by $9.6 billion in agency financing, $3 billion in mission-driven, affordable housing, and $920 million in manufactured and senior housing.

  • Fannie Mae—through its Green Rewards program and PGIM Real Estate’s agency lending program —provided its first loan on a large solar portfolio in New York City outfitted with a new Photovoltaic (PV) System, state-of-the-art LG Solar Panels, and Enphase Inverters across the portfolio.

Green Bonds

“Green bonds” are debt instruments used to finance environmental initiatives such as renewable energy efficiency projects.

In 2020, Prudential issued the firm’s first green bond with a principal amount of $500 million.

Prudential’s Green Bonds issued by Prudential on or after February 2020, please see Green Bond Report that sets out the guidelines for Prudential’s Green Bond issuances in accordance with the 2018 ICMA Green Bond Principles.

Green Realestate

The focus of this statement is exclusive to the company’s proprietary assets – the scope of Responsible Investing at Prudential, however, is enterprise-wide. PGIM, Inc. and its individual asset management units have their own Responsible Investing initiatives. Prudential’s Board of Directors maintains direct oversight of all company investments through its committees, and provides transparency around related initiatives through the annual publication of the company’s “Sustainability Report.”

Providing such transparency is consistent with the overarching belief that how we do business is just as important as the business we do; from the products we sell to the assets we acquire to support them. Responsible Investing reflects this belief, as well as Prudential’s commitment to provide customers long-term financial security and peace of mind.

Although some countries mandate reporting in these areas, in most geographies understanding material ESG dimensions is helped by an organization’s extra-financial reporting. Starting with its first Sustainability Report, Prudential committed to improving transparency of its own performance by subscribing to Global Reporting Initiative guidelines and later by adapting the International Integrated Reporting Framework. ESG information is also included in traditional investor focused documents like the Proxy Statement and Annual Report.

This statement aligns with already established statements issued by divisions of Prudential that are signatories to the Principles for Responsible Investment, including PGIM’s QMA, Real Estate, and
Fixed Income.