Pioneer Fd has several promising attributes that may appeal to sustainability-focused investors.
The ESG risk of Pioneer Fd's holdings is comparable to its peers in the US Equity Large Cap Blend category, thus earning an average Morningstar Sustainability Rating of 3 globes. Funds in the same category rated 4 or 5 globes tend to hold securities less exposed to ESG risk. ESG risk provides investors with a signal that reflects to what degree their investments are exposed to risks related to material ESG issues, such as climate change and inequalities, that are not sufficiently managed. ESG risk differs from impact, which is about seeking positive environmental and social outcomes.
Based on its latest prospectus, sustainability or ESG factors are a focus in the investment process of Pioneer Fd. Funds with ESG-focused mandates are more likely to deliver positive sustainability outcomes. One key area of strength for Pioneer Fd is its low Morningstar Portfolio Carbon Risk Score of 6.75 and low fossil fuel exposure of 5.37% over the past 12 months, which earns it the Morningstar Low Carbon Designation. The fund is therefore well positioned to transition to a low-carbon economy.
By prospectus, the fund aims to avoid, or limit its exposure to, companies associated with controversial weapons, tobacco, and thermal coal. The fund fulfills this goal by having negligible investment exposure to each of these activities.
Carbon solutions compose 7.50% of Pioneer Fd's assets. This percentage lags behind its average peer in the Large Blend category, whose Carbon Solutions Involvement averages 10.65%. Carbon solutions include products and services related to renewable energy, energy efficiency, green buildings, green transportation, and so on. The fund exhibits high exposure (15.35%) to companies with severe controversies. From bribery and corruption to workplace discrimination and environmental incidents, controversies are incidents that may negatively affect stakeholders, the environment, or the company’s operations.