For more than 150 years Pacific Life has helped millions of individuals, families, businesses, and pension plans with their financial needs through a wide range of insurance and investment products. We are an independent company that focuses on financial strength and long-term strategies that benefit our policyholders and clients. The mission of Pacific Life’s investment team is to deliver solid risk-adjusted returns that provide flexible, scalable, and value-added solutions to Pacific Life’s General Account and in support of Pacific Life’s product portfolio.
In fulfilling this mission, it is important that we do so in a responsible manner. Investing responsibly is a key pillar of Pacific Life’s Corporate Social Responsibility program. It aligns with Pacific Life’s Core Values of Accountability for our actions, Financial Strength focused on investing with a long-term view, Integrity to do the right thing, and making a positive impact on our Communities.
As an enterprise, we believe that responsible investing is not only good for the environment and society, but also key to our long-term financial strength and our mission to help our clients and their families attain peace of mind and financial security. We continually evolve our investment processes and incorporate environmental, social, and governance (ESG) factors to better align our decision-making with our duty to invest responsibly.
As a long-term investor, we understand that the success of our investments is tied to the degree to which they reflect ESG principles. Integrating an ESG framework into our investment processes augments our ability to successfully accomplish our mission. By having actionable information available about potential investments, our investment team can make more holistic and informed decisions. We optimize our profitability, asset values, and creditworthiness by acting responsibly. In doing so, we will experience higher sustainable portfolio returns in line with our responsibilities to our employees, policyholders, community, and other stakeholders.
We integrate ESG factors into the analysis and decision-making process for our General Account and Guaranteed Separate Account investments in several ways. First, we collect ESG data for all investment opportunities. We score our holdings utilizing a variety of both third-party and proprietary inputs against a range of relevant ESG factors and monitor changes to these scores on an on-going basis. We exclude all new investments which do not meet our criteria. Second, due to the impact climate change continues to have on our world and the investment landscape, we actively assess and monitor the climate risk to both existing and proposed fixed income, equity, and real estate investments. Third, we review the responsible investment policies of our third-party asset managers as part of our due diligence process. Fourth, we engage with outside organizations to strengthen our integration efforts. We have adopted reporting standards in line with the Task Force on Climate-related Financial Disclosures (TCFD) framework, are in conversation with the United Nations Principles for Responsible Investment (UN PRI) initiative, and continue to evaluate other relationships.
Policy Scope and Oversight
We continuously focus on the overall ESG impact of our investments. This leads us to emphasize investments in areas including energy efficiency, renewable power, and low-income housing in support of our goals and objectives. To this end, we have invested billions of dollars in businesses and programs that make a positive impact on our environment and our communities. We encourage greater energy efficiencies in our real estate assets, and we are committed to making investments in support of the global clean energy transition towards more renewable sources of power. In addition, as founding members of both IMPACT Community Capital and 360 Community Capital, we provide financing to support new affordable housing opportunities in underserved communities.
This Responsible Investment Policy governs our General Account and Guaranteed Separate Account investments sourced internally and through third-party asset managers. It is intended to serve as a guide for our investment decisions. This policy is reviewed at least annually by Pacific Life’s Management Investment Committee and the Investment and Finance Committee of the Pacific Mutual Holding Company Board of Directors.
We believe that we can make a positive difference for our employees, our communities, and our environment while delivering solid investment results in support of our policyholders’ and clients’ financial security.
Last updated November 30, 2022