Allianz Global Investors, one of the world’s leading active asset managers, announced today the appointment of Matt Christensen as Global Head of Sustainable and Impact Investing. In this role, he will accelerate the growth of Impact Investing as part of the company’s growing private markets platform; lead the continued integration of ESG factors across AllianzGI’s existing range of public markets products, including stewardship activities; and support the development of new SRI products.
In the past two years, we have multiplied the assets we manage in sustainable investment strategies to EUR 165 billion. And, through collaboration, we work to ensure that material ESG risk considerations are top of mind for all our portfolio managers. Find out more in our latest Sustainability Report.
"While the coronavirus outbreak will likely weigh on the economic outlook for some time, we should draw hope from the unprecedented global solidarity shown during this crisis. A similar international effort will be critical in preventing global warming and facilitating the transition to a carbon-neutral economy."
In 2019, our engagement activities spanned 333 companies in 28 markets. In total, we conducted 448 engagements – up 31% on 2018 – and addressed climate and environmental risks with 82 companies. Read more in our latest Sustainability Report.
We started our sustainable investing journey 20 years ago and were early to sign the United Nations Principles for Responsible Investment (UN PRI) in 2007. We believe that sustainable investing can generate positive performance not just for our clients, but for the community at large.
We aim to integrate environmental, social and governance (ESG) factors throughout our entire investment value chain to better manage risk and generate sustainable, long-term returns. Given the diversity of investors’ objectives and requirements we provide sustainable investing processes with a broad range of approaches, adaptable to different levels of ESG incorporation and client preferences. These enhance our clients’ investment decisions while helping create benefits for society as a whole.
Sustainable investing is in our DNA
Data as at 31 December 2019, AuM as at 30 June 2020
As an active investor, research is core to our ability to generate returns. We have been able to demonstrate that ESG research can be an important indicator of future performance. We have an active programme of engagement and stewardship and our proprietary ESG research is available to all investors across AllianzGI.
Sustainable investing for AllianzGI includes four broad categories: Integrated ESG, Sustainable, SDG-aligned and Impact Investing.
Our approach to sustainable investing
As an active investor, research is core to our ability to generate returns. We have been able to demonstrate that ESG research can be an important indicator of future performance. We have an active programme of engagement and stewardship and our proprietary ESG research is available to all investors across AllianzGI. We can say that all our investments are ESG-informed.
Sustainable Investing for AllianzGI includes three broad strategies: Integrated ESG, SRI and Impact Investing.
Integrated ESG corresponds to active ESG risk management aimed at better financial returns. Within this approach we integrate financially material ESG factors into investment analysis and decision making in a systematic and disciplined way, without constraining the investment universe.
How it works: While many firms talk about integrating ESG, we have taken a rigorous approach in our “Integrated ESG” labelling. Each portfolio team is responsible for questioning any potential holdings with low ESG ratings and contributing to the firm’s “digital debate” about companies’ ESG risks. This internal crowdsourcing ensures that experienced portfolio managers and industry analysts contribute their views on ESG risk. We believe this approach is better than relying entirely on external ESG ratings and buying in to third party methodologies and judgements.
When a portfolio team still sees a compelling opportunity to invest in a company, despite an acknowledged ESG risk, they must document their risk/return thinking in our collaborative system. Because our portfolio managers understand ESG risk and also have the ability to own companies with high ESG risks, we’re in a unique position to engage with those companies that need it most, as we seek to reduce that risk through change. One of the strengths of Integrated ESG is that it builds an additional factor into existing investment processes: enhancing rather than changing the process. In this way, we are committed to, and in the process of, embedding ESG factors tangibly across all of our strategies regardless of asset class.
Our Sustainable strategies aim to create portfolios appealing to clients who want their investments to not only generate financial value but also to reflect their own values. We achieve this by combining financial and sustainability assessments in investment analysis and portfolio construction.
All portfolios within this offering apply minimum exclusion criteria in addition to either Climate Engagement with Outcome or SRI Best-in-Class considerations.
Portfolios applying Climate Engagement with Outcome combine exclusions and engagement with the aim to encourage companies on their climate pathway. Engagement targets are defined by peer comparison and realistic climate ambitions per sector and are tracked over time
Portfolios applying SRI Best-in-Class focus on portfolio construction geared towards a superior ESG quality through minimum exclusion criteria and positive screening. Both, financially material and non-material ESG factors are part of the analysis.
The 17 global SDGs were set by the UN General Assembly in 2015 as a way of achieving a better and more sustainable future by 2030. Large capital investments are crucial to meeting the targets detailed under SDGs.
Investors are beginning to realise that they have the power to make an impact by choosing where and how to invest their funds. Investing with sustainability goals in mind allows investors to influence the way the economy works or how a company behaves through the allocation of capital. It can drive innovation by channelling money towards new technologies, reinforce positive behaviour by rewarding good practices and impact the entire economic value chain. Furthermore, designated strategies can make investments with a specific goal in mind, such as addressing the need for clean water or curbing carbon emissions.
AllianzGI has developed a framework for SDG-aligned investing to provide a clearer proposition for clients who want their investments to contribute to a better world, in addition to generating financial returns.
At AllianzGI, we aim to enable our clients to maximise their exposure to positive environmental and social outcomes by offering a choice of impact investing strategies across asset classes. AllianzGI offers listed (green bonds) and private market impact investing strategies. Both have the clear intention of generating societal benefits that are aligned with the UN Sustainable Development Goals (SDGs). In order to qualify for an impact investing strategy, an investment must focus on addressing pressing environmental and social issues, with the UN SDGs used as a recognised credible international framework.
AllianzGI’s Impact investment strategies are defined by three core beliefs:
Intention: The intention of a strategy and its investments is to generate incremental positive social and/or environmental value while delivering financial returns.
Association: There is a clear association between each investment and the positive output delivered.
Measurement & report: The impact will be measured on a best efforts basis and reported in order to validate each specific strategy.
AUM data as at 30 June 2020. Source: Allianz Global Investors. Any differences in totals are due to rounding. Impact comprises different strategies targeting climate transition, environmental projects and renewable energy. Environmental, social and governance (ESG); Sustainable & responsible investing (SRI); Dow Jones Sustainability Index (DJSI); Principles for responsible investing (PRI). Sustainability leadership and inclusion in the DJSI are based on the research of and an evaluation of questionnaires submitted to RobecoSAM. The PRI assessment report is based on
information reported directly by signatories. Moreover, the underlying information has not been audited by the PRI or any other party acting on its behalf.
Investing involves risk. The value of an investment and the income from it will fluctuate and investors may not get back the principal invested. Past performance is not indicative of future performance. This is a marketing communication. It is for informational purposes only. This document does not constitute investment advice or a recommendation to buy, sell or hold any security and shall not be deemed an offer to sell or a solicitation of an offer to buy any security.
The views and opinions expressed herein, which are subject to change without notice, are those of the issuer or its affiliated companies at the time of publication. Certain data used are derived from various sources believed to be reliable, but the accuracy or completeness of the data is not guaranteed and no liability is assumed for any direct or consequential losses arising from their use. The duplication, publication, extraction or transmission of the contents, irrespective of the form, is not permitted.
This material has not been reviewed by any regulatory authorities. In mainland China, it is used only as supporting material to the offshore investment products offered by commercial banks under the Qualified Domestic Institutional Investors scheme pursuant to applicable rules and regulations. This document does not constitute a public offer by virtue of Act Number 26.831 of the Argentine Republic and General Resolution No. 622/2013 of the NSC. This communication's sole purpose is to inform and does not under any circumstance constitute promotion or publicity of Allianz Global Investors products and/or services in Colombia or to Colombian residents pursuant to part 4 of Decree 2555 of 2010. This communication does not in any way aim to directly or indirectly initiate the purchase of a product or the provision of a service offered by Allianz Global Investors. Via reception of his document, each resident in Colombia acknowledges and accepts to have contacted Allianz Global Investors via their own initiative and that the communication under no circumstances does not arise from any promotional or marketing activities carried out by Allianz Global Investors. Colombian residents accept that accessing any type of social network page of Allianz Global Investors is done under their own responsibility and initiative and are aware that they may access specific information on the products and services of Allianz Global Investors. This communication is strictly private and confidential and may not be reproduced. This communication does not constitute a public offer of securities in Colombia pursuant to the public offer regulation set forth in Decree 2555 of 2010. This communication and the information provided herein should not be considered a solicitation or an offer by Allianz Global Investors or its affiliates to provide any financial products in Brazil, Panama, Peru, and Uruguay. In Australia, this material is presented by Allianz Global Investors Asia Pacific Limited (“AllianzGI AP”) and is intended for the use of investment consultants and other institutional/professional investors only, and is not directed to the public or individual retail investors. AllianzGI AP is not licensed to provide financial services to retail clients in Australia. AllianzGI AP (Australian Registered Body Number 160 464 200) is exempt from the requirement to hold an Australian Foreign Financial Service License under the Corporations Act 2001 (Cth) pursuant to ASIC Class Order (CO 03/1103) with respect to the provision of financial services to wholesale clients only. AllianzGI AP is licensed and regulated by Hong Kong Securities and Futures Commission under Hong Kong laws, which differ from Australian laws.
This document is being distributed by the following Allianz Global Investors companies: Allianz Global Investors U.S. LLC, an investment adviser registered with the U.S. Securities and Exchange Commission; Allianz Global Investors Distributors LLC, distributor registered with FINRA, is affiliated with Allianz Global Investors U.S. LLC; Allianz Global Investors GmbH, an investment company in Germany, authorized by the German Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin); Allianz Global Investors (Schweiz) AG; Allianz Global Investors Asia Pacific Ltd., licensed by the Hong Kong Securities and Futures Commission; Allianz Global Investors Singapore Ltd., regulated by the Monetary Authority of Singapore [Company Registration No. 199907169Z]; Allianz Global Investors Japan Co., Ltd., registered in Japan as a Financial Instruments Business Operator [Registered No. The Director of Kanto Local Finance Bureau (Financial Instruments Business Operator), No. 424, Member of Japan Investment Advisers Association and Investment Trust Association, Japan]; and Allianz Global Investors Taiwan Ltd., licensed by Financial Supervisory Commission in Taiwan.