Sustainability

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

 

 

 

 

 

Our approach to sustainable investing

ESG-informed
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.

Our approach to sustainable investing

ESG-informed
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 E, S & G 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’ E, S & G risks. This internal crowdsourcing ensures that experienced portfolio managers and industry analysts contribute their views on E, S & G 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 E, S & G risk, they must document their risk/return thinking in our collaborative system. Because our portfolio managers understand E, S & G risk and also have the ability to own companies with high ES&G 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 E, S & G factors tangibly across all of our strategies regardless of asset class.

Our SRI strategies aim to create a sustainable portfolio by combining financial and sustainability assessments in investment analysis and portfolio construction. The offering appeals to clients that want their investments to not only generate financial value but also to reflect their own values.

Through our experience in SRI, we are well equipped to provide investment solutions that address clients’ extra financial needs – whether through the application of negative screening, or increasingly through positive screening.

Impact investing, generating intentional and identifiable environmental and social outcomes alongside financial returns, is an area in which AllianzGI has been active since 2012. Demand from clients who want their investments to pursue an extra-financial mission is growing significantly.

We are committed to meeting growing client demand in this area through insights and innovation. AllianzGI offers public and private market impact investing strategies. Both have the clear intention of generating societal benefits, often aligned with the 17 UN Sustainable Development Goals (SDGs), and must provide evidence of the relevant positive outcome.

AUM data as at 31 December 2018. 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. Environmental, Social and Governance (ESG) strategies consider factors beyond traditional financial information to select securities or eliminate exposure which could result in relative investment performance deviating from other strategies or broad market benchmarks. There is no guarantee that actively managed investments will outperform the broader market. 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.

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