Nowadays, people talk less about the weather and more about climate. Perhaps it’s a tribute to young climate activists and Greta Thunberg with her ‘Fridays for Future’ initiative, but the massive change in public awareness is also due to the growing frequency of extreme weather situations which highlight the dangers of global warming.
The important role that financial institutions play in the attainment of climate targets, on the other hand, is less well known. Allianz Global Investors was one of the first to place climate change and the environment at the forefront of investment decisions, and has gained a wealth of experience since our first sustainable focused investments in 2000.
Our Investment Forum took place in Frankfurt on June 12, 2019. Discussions focused on global themes such as sustainable investment and climate-related risks, as well as the economic and political outlook for Europe. Neil Dwane, Global Strategist at Allianz Global Investors, summarizes the key findings here.
Our chief economist Stefan Hofrichter goes a step further. In his article, he considers how much influence classical regulatory policy still has against the background of the continuing low interest rate environment.
Capital investment can be a decisive driver of change, especially with regard to social or environmental objectives. Martin Ewald explains what ‘impact investing’ is all about and how investors can actively use the UN Sustainable Development Goals (SDG) in their investment decisions.
‘Green & Sustainable Finance’ is a top priority at Allianz Global Investors. CEO Andreas Utermann explains in an interview why we believe sustainability is a strategic imperative for an active asset manager.
I hope you enjoy reading this issue.
Chief Sustainability Officer, Allianz Global Investors
Investment Themes & Strategy
How do ESG factors impact portfolio performance?
Our ESG team examines systematic evidence demonstrating that actively managing ESG tail risks may help to deliver sustainable investment performance over a market cycle.
Accelerating economic growth through sustainability
We stand at the crossroads of European Union’s (EU) sustainability strategy that is full of turning points with important implications for investors. In its recent reflection paper the European Commission (EC) highlights that it envisions strong future EU economic growth through sustainability transformation and business innovation.
Insights and actions from our Frankfurt 2019 Investment Forum
What does it mean to be a long-term investor? That was one of the main questions underpinning the discussions at our Investment Forum in Frankfurt. Topics included the importance of climate change and the future direction of Europe, as our investors and strategists shaped the convictions that inform our long-term investment strategies for clients.
Impact Investments – a new philosophy of investing
Investors are increasingly starting to realize that they have the power to make an impact by choosing where and how to invest their assets. Allocating capital with the intention to create impact allows investors to influence the way the economy works or how a company operates.
Are we running out of policy options for the next crisis?
The global economy will eventually face another downturn, which raises critical questions. With rates so low, what tools do central banks have left to spark a turnaround? What other monetary, fiscal or structural changes could head off problems? And what might happen if we don’t change our policy approach?
In an interview with the German newspaper Börsen-Zeitung, Andreas Utermann makes the case that an EU action plan has to establish a framework for attractive investment projects, while acknowledging that Green Bond and Social Bond Principles are internationally accepted norms.