Sustainable investing – always looking ahead
Our commitment to sustainability hasn’t changed, but we have changed the way we think about it as the possibilities expand. Given the diversity of investors’ objectives and requirements, our sustainable investing products are built on a broad range of approaches, adaptable to different levels of ESG incorporation and client preferences. Our capabilities seek to enhance our clients’ investment decisions while helping create benefits for wider society. All part of our commitment to being a sustainability shaper.
20+
years of sustainable investing
298 billion
in ESG risk-focused, sustainability-focused and impact-focused product categories*
PRI 4-star
grade for Policy, Governance & Strategy**
45+
dedicated global sustainability-focused professionals†
95,500+
single proposals† at shareholder meetings
481
engagements with companies, covering over 1,000 topics†
*AUM as at 30 September 2024. ESG risk-focused is not considered sustainable according to the EU Sustainable Finance Disclosure Regulations. Note that “sustainability-focused” and “impact-focused” are Allianz GIobal Investors product categories. Reference to a fund being within them does not indicate that fund has a “Sustainability Focus” or “Sustainability Impact” label under the United Kingdom’s Sustainability Disclosure Requirements (SDR).
**Maximum possible rating is 5 stars
† As at 30 September 2024
Find out how our capabilities evolved to support the breadth of investor needs.
Our journey
Three sustainability themes
We identified three themes that we believe are critical to society, our investors and Allianz Global Investors as a business.
Our research and engagement activity is built around the most material risks and opportunities of these three themes – for our business, the businesses in which we invest, and our wider stakeholders.
Climate change
Climate change is one of our planet’s most pressing challenges, with potential consequences across all three environmental, social and governance (ESG) elements.
Planetary boundaries
It is important to define the environmental limits within which humanity can safely operate (including the impact on biodiversity) and avoid any unintended consequences of the fight against climate change.
Inclusive capitalism
We think inclusion will become the next big wave after climate change and requires innovative thinking and solutions that meet the demands of younger generations.
Product categories
Our clients’ sustainability objectives vary – that’s why we offer investment solutions with differing levels of sustainability incorporation, according to clients’ ultimate ambitions. Our Sustainability-focused and Impact-focused products require, as a minimum, application of our Sustainable Minimum Exclusion policy and one of our qualifying approaches.
For illustrative purposes only. Exclusions apply to direct investments. Sustainable or impact investing private markets strategies apply the Allianz ESG Integration Framework exclusions. Allianz Global Investors supports the UN Sustainable Development Goals (SDGs).
*According to EU SFDR regulation
ESG: Environmental, Social and Governance. SRI: Sustainable and Responsible Investing. KPI: Key Performance Indicator.
#AUM in Sustainability-focused and impact-focused strategies combined: EUR 209 bn. Note that “sustainability-focused” and “impact-focused” are Allianz GIobal Investors product categories. Reference to a fund being within them does not indicate that fund has a “Sustainability Focus” or “Sustainability Impact” label under the United Kingdom’s Sustainability Disclosure Requirements (SDR).
†ESG risk-focused category (also known as the integrated ESG investment approach) is not considered sustainable according to EU Sustainable Finance Disclosure Regulation.
Active stewardship
Our goal is to shape pathways towards real-world transition, and our responsibilities as the active steward of our clients’ assets is key to this ambition.
2023 highlights
We use two primary levers to motivate sustainable outcomes at investee companies:
Proxy voting enables us to vote during shareholder meetings on behalf of our investors. This allows us to have a say on important issues affecting companies in which we invest. Our voting decisions are informed by in-depth research and analysis and discussions with investee companies.
We have started making pre-AGM voting announcements on high-priority topics to ensure our intentions are transparent and to aim to persuade other investors to adopt a similar approach.
As part of our commitment to full transparency of our proxy voting activities, we publish the following:
- Detailed Global Corporate Governance Guidelines
- Engagement Policy Statement
- Real-time disclosure of all votes cast including commentary explaining votes against management and abstentions
Our engagement activities with investee companies help us to understand – and mitigate – the real risks of our holdings. In recent years, we have increased the number of our engagement activities in line with our priority themes – climate change, planetary boundaries and inclusive capitalism.
The number of engagement topics is also up – from corporate governance and business strategy topics to environmental and social impacts.
Engagement across asset classes While the bedrock of our engagement activities comes from our heritage as an active equity manager, we are expanding our engagement activity across fixed income and labelled debt and facilitating dedicated dialogues for our corporate credit strategies. We have also stepped up engagement activities dedicated to our investments in Asia.
Sometimes the most effective way to increase our impact and achieve engagement objectives for our clients is to engage collaboratively with other investors – particularly in cases where we have major concerns but only a limited investment in a company.
Examples of the investor groups we work alongside include Climate Action 100+, Ceres Food Emissions 50, the 30% Club France Investor Group and the PRI Advance Coalition on Human Rights. Topics for collaborative engagement have included climate change, gender diversity and human rights. We are also proud to have co-founded the 30% Club Germany Investor Group.
We provide extensive details of our stewardship activities and outcomes in our annual Sustainability and Stewardship Report.
-
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 for Qualified Domestic Institutional Investors scheme pursuant to applicable rules and regulations and is for information purpose only. 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 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; in HK, by Allianz Global Investors Asia Pacific Ltd., licensed by the Hong Kong Securities and Futures Commission; in Singapore, by Allianz Global Investors Singapore Ltd., regulated by the Monetary Authority of Singapore [Company Registration No. 199907169Z]; in Japan, by 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, the Investment Trust Association, Japan and Type II Financial Instruments Firms Association; in Taiwan, by Allianz Global Investors Taiwan Ltd., licensed by Financial Supervisory Commission in Taiwan; and in Indonesia, by PT. Allianz Global Investors Asset Management Indonesia licensed by Indonesia Financial Services Authority (OJK).
3379754