We are pleased to introduce The Investment Intelligence Podcast, where experts discuss all things investing, from recent market developments, to strategy, sustainable investing, asset allocation, risk management and more.
AllianzGI, one of the world’s largest active investment managers, has announced that 74 of its equity, fixed income and multi-asset funds will join its current sustainable investment offering.
74 additional funds to become sustainable (70 billion Euros Assets under management)
New stewardship strategy: Climate Engagement with Outcome approach
10 March 2021. AllianzGI, one of the world’s largest active investment managers, has announced that 74 of its equity, fixed income and multi-asset funds will join its current sustainable investment offering. This is part of its strategic ambition to be a sustainable investment shaper, continuously innovate and anticipate growing client demand. Portfolios will be constructed using ESG assessments reflecting clients’ values through AllianzGI Sustainable Minimum Exclusions* and will adopt a new strengthened engagement approach or SRI Best-in-class considerations.
AllianzGI is committed, as an active manager with a long-term outlook, to act as an active steward of its clients’ assets. For a number of funds, AllianzGI will set the bar even higher to support its ambitions on addressing change. Recognizing the urgency of this global challenge and the power of engagement to drive real world impact, AllianzGI is launching a dedicated climate engagement approach.
The Climate Engagement with Outcome approach aims to engage with companies on the climate transition pathway towards a low carbon economy. Fund managers will actively engage with the top 10 absolute carbon emitters (scope 1 and 2) within their portfolio as a proxy for climate impact. The top 10 emitters in each fund are chosen irrespective of their sector, allowing climate impact to be addressed at a fund level. The supporting analysis is based on a “Best Practices Sector Specific Engagement Map”, which analyses the company in the context of its sector and sets engagements based on their peer comparison and what this sector should achieve going forward. Examples of engagement targets include greenhouse gas emissions reduction targets or board level remuneration targets linked to climate change. If the issuer does not respond to requests or does not show an improvement effort in their climate pathway, divestment will be considered in the escalation process.
Matt Christensen, Global Head of Sustainable and Impact Investing at Allianz Global Investors, comments: “Climate change is one of our planet’s most pressing challenges, and AllianzGI believes that asset managers should take a more active role in shaping the future. The Climate Engagement with Outcome approach represents further development in our proactive stewardship approach. Given our experience from engagement with companies so far, we are confident that companies are open to this dialogue and will share these views."
“The COVID-19 crisis has renewed the focus both on climate change and social factors. Many policymakers and investors are viewing the crisis as a wake-up call that accelerates the need for sustainable investing. The increased demand for sustainable funds is a trend we have seen across the globe and we want to offer our clients sustainable products that are based on their preferred outcomes.”
Allianz Global Investors’ SRI approach uses proprietary ESG analysis that has been in place since 2002 and which has evolved as new information has become available and new types of issues have emerged. The SRI methodology is reviewed annually, and the central SRI database is updated continuously to ensure that analysis integrates all newly available information. Reporting to clients will be adapted to reflect the new strategy.
Allianz Global Investors is a global pioneer of sustainable investing with ESG credentials that date back two decades. It aims to provide a range of sustainable investing approaches that support clients in managing risk, addressing real-world problems and generating returns from these investments: sustainably managed assets across the categories Integrated ESG, Sustainable, SDG-aligned and Impact investing have reached 206 billion Euros at the end of December 2020.
*AllianzGI’s Sustainable Minimum Exclusion list includes not only companies with links to controversial weapons, but also companies that demonstrate severe controversies with respect to the United Nations Global Compact, as well as companies that earn a significant share of revenues from coal and tobacco or weapons. A total of around 900 companies are now being excluded on a global basis, of which some 130 are based in developed Europe (including the UK). Details on the exclusion criteria can be found online at: https://lu.allianzgi.com/en-gb/pro/sustainable-investing/sri-exclusion-policy
Allianz Global Investors is a leading active asset manager with over 700 investment professionals in 25 offices worldwide and managing EUR 582 billion in assets for individuals, families and institutions.
Recognizing the urgency to tackle climate change, AllianzGI announces its commitment to support the goal of net zero greenhouse gas emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5°C, by joining the Net Zero Asset Managers initiative.
Investing involves risk. The value of an investment and the income from it will fluctuate and investors may not get back the principal invested. Investing in the water-related resource sector may be significantly affected by events relating to international political and economic developments, water conservation, the success of exploration projects, commodity prices and tax and other government regulations. 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.