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.
*AuM as of 30 September 2022, includes EUR 111bn in ESG risk-focused strategies which are not considered sustainable according to the EU Sustainable Finance Disclosure Regulation.
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 ESG research is available to all investors across AllianzGI.
AllianzGI provides ESG risk-focused and a range of Sustainable product categories that cater for our client’s sustainability objectives and preferences.
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.
Within our ESG risk-focused category, we offer Integrated ESG* strategies which aim to incorporate material E, S, and G risk considerations into our investment process across asset classes, to seek a better risk/return profile.
Integrated ESG strategies apply our firm-wide exclusions but do not further restrict the investment universe, but portfolio managers are required to monitor financially material E, S, and G risks for each portfolio holding.
When the portfolio management team still sees a compelling opportunity to invest in a company, despite an acknowledged E, S, or G risk, they must document the company specific risk/return expectation in our collaborative system. Because our portfolio managers understand E, S and G risks we’re in a unique position to engage with those companies to address the risks 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.
* Integrated ESG is not considered sustainable according to EU Sustainable Finance Disclosure Regulation
Our Sustainability-focused strategies aim to create sustainable portfolios reflecting our clients’ values through minimum exclusions and second layer of sustainable investment approach. This second layer can consist of the Climate Engagement with Outcome or SRI best-in-class considerations.
- For our strategies that apply the CEWO approach, we combine minimum exclusions and aim to engage with companies on the climate transition pathway towards a CO2 net zero future. If the issuer does not respond to requests or does not show an improvement effort over time in their climate pathway, divestment will be considered in the escalation process.
- SRI best-in-class strategies focus on portfolio construction geared towards a superior ESG quality through minimum exclusions and positive screening. Both, financially material and non-material ESG factors are part of the analysis.
Our Impact-focused strategies aim to enable our clients to maximise their exposure to positive environmental and social outcomes by offering a suite of impact-focused approaches across public and private asset classes.
- Our SDG-aligned strategies invest in companies providing solutions that contribute to positive environmental and societal change in alignment with the UN’s Sustainable Development Goals.
- Our 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.
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 participation via questionnaires in the S&P Global Corporate Sustainability Assessment (CSA). 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.
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