Pioneer in sustainable investing

As Allianz Global Investors, 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.

ESG in action
Ms Eugenia Jackson, Global Head of ESG Research, shares with you AllianzGI's commitment in ESG and how ESG investing has helped us to address client's financial needs.
The potential of ESG
ESG is growing in significance
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%
71% of institutional investors globally plan to integrate ESG into their investment process by 20301
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ESG tail risk
management
ESG tail risk management may help mitigate losses thus contributing to a better risk-adjusted performance over a market cycle
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Impact investment
allocation
Impact investment allocation in the East and SE Asia jumped 28% over the last five years according to the Global Impact Investing Network2
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Over
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%
Over 60% of private millennial investors in Asia expect sustainable investments to outperform mainstream ones3
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In a world where businesses are much more exposed to externalities and intangible assets have become the most significant value drivers, it is increasingly important that active asset managers integrate Environmental, Social and Governance (ES&G) factors in order to create long-term value for clients. Active capital allocation is a driver of change and can accelerate the pace at which innovations are adopted in areas that need it most, such as climate transition.

In a world where businesses are much more exposed to externalities and intangible assets have become the most significant value drivers, it is increasingly important that active asset managers integrate Environmental, Social and Governance (ES&G) factors in order to create long-term value for clients. Active capital allocation is a driver of change and can accelerate the pace at which innovations are adopted in areas that need it most, such as climate transition.

Andreas Utermann
CEO, Allianz Global Investors

What is ESG?
ESG is defined as the consideration of environmental, social and governance factors alongside financial factors in the investment decision-making process.
Environment
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Climate change
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Natural resources
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Pollution & waste
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Environmental opportunities
Social
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Human capital
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Product liability
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Stakeholder opposition
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Social opportunities
Governance
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Corporate governance
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Corporate behaviour
Why AllianzGI?
AllianzGI is actively driving changes in all aspects of ESG
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Active
approach to investment
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Active
engagement with our client
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Active
stewards of the asset we own
A global leader in sustainable investing
PRI principles for
responsible investment
since 2007

received for the third year in a
row for Strategy & Governance

AllianzGI has scored
A or A+ in all categories4

AllianzGI
Best of the Best
2018/2019
Asia Asset Management5

Best Application of ESG Award

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Benchmark
Fund of the Year
Awards 20186
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Hong Kong
Outstanding Sustainable Investor Awards

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Singapore
Sustainable Investment Overall Leader

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Taiwan
Sustainable Investment Outstanding Achiever

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A pioneer in ESG investing
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2000 First global SRI equity strategy launched
2007 First SRI fixed income strategy launched
2010 AllianzGI becomes a signatory to Carbon Disclosure Project
2013 AllianzGI becomes member of the Asian Corporate Governance Association
2014 First multi asset SRI strategy launched
2016 AllianzGI joins the Institutional Investors Group on Climate Change
2019 Andreas Utermann becomes member of Climate Finance Leadership Initiative
Truly integrating ESG factors into all investment decisions and across all asset classes
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AUM
€535 Billion7
0
Billion7
ESG informed

ESG is in our DNA

ES&G factors are crucial investment performance drivers with proprietary ES&G and active stewardship approach research

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Billion7
Impact

Investing for impact

Generates intentional and identifiable environmental and social outcomes alongside financial returns

0
Billion7
SRI

Creating a sustainable portfolio

Uses ES&G practices and values assessment in investment analysis and portfolio construction

0
Billion7
Integrated ESG

Active ESG risk management

Integrates financially material ES&G factors into investment analysis and decision making in a systematic and disciplined way, without constraining universe

Active global stewardship enriches investment decision making
Making use of the right to vote at shareholder meetings is a key element in AllianzGI’s approach to active stewardship
Proxy voting activities
In 2017, voting in 7,961
shareholder meetings
In favour of management
Against management with at least one vote
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In 2017, voting cast by
proposal category
Capitalisation
Compensation
Preferred / Bondholder
Routine / Business
Anti-takeover related
Reorganisation and Mergers
Directors related
  • 7,567
  • 9,077
  • 76
  • 18,407
  • 753
  • 2,407
  • 43,070

These votes are cast based on the same criteria in each region... Consistent with our investment philosophy and approach, we routinely engage in dialogue with investee companies and seek proactively to present a viewpoint, usher change where necessary and monitor the results of our engagement.

These votes are cast based on the same criteria in each region... Consistent with our investment philosophy and approach, we routinely engage in dialogue with investee companies and seek proactively to present a viewpoint, usher change where necessary and monitor the results of our engagement.

Eugenia Unanyants-Jackson
Global Head of ESG Research,
Allianz Global Investors

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Our engagement in action
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Reducing supply chain risks in Bangladesh's garment sector

In 2013, AllianzGI signed the first investor statement calling on retailers to collectively pledge to implement the core labour standards of the International Labour Organisation.

A showcase for industry collaboration, particularly as regulations to combat modern slave labour are refined.

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Public policy engagement

AllianzGI responded to the public consultation for the annual revision of the German Code of Corporate Governance.

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Collaborative engagement efforts

Since October 2015, AllianzGI has been project lead on the Sustainable Stock Exchanges Initiative (SSE), which asks stock exchanges to produce voluntary guidance for issuers on reporting ESG information.

Co-signed a letter to 70 exchanges, encouraging them to create more transparent and efficient capital markets.

Successfully encouraged 30 exchanges to commit to producing ESG guidance.

As of December 2017, 18 exchanges have publicly released their guidance, with a further 12 committed to doing so in the future.

Sustainable investment strategies at AllianzGI
Integrated ESG
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Delivering potential financial returns and enhancing the investment process by assessment of material ES&G risks and their impact on Investment value

  • Fully incorporates ES&G into fundamental research - no ESG overlay

  • Builds on existing investment strategies and track record - unconstrained investment universe

  • Risk/reward analysis: ESG tail risk management aims to mitigate extreme losses contributing to a better risk-adjusted performance over a market cycle

Comply or explain approach when taking ESG risk

SRI
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Building sustainable portfolios with an aim to deliver sustainable financial returns based on the assessment of ESG practices

  • Targets offering both SRI and financial return through a number of different approaches

  • Focused investment universe

  • ESG quality often determines eligibility for portfolio and influences weightings

Established SRI portfolios based on evolutionary process

Impact
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Delivering intentional and identifiable impact

  • Intended use of proceeds to generate positive environmental and/or social impact

  • ES&G factors provide a framework to identify areas of social or environmental need, often via UN SDGs or other defined KPIs

Deep expertise across public and private markets

Leveraging global research and collaboration platform

Active stewardship

Source:

1.
AllianzGI; “Institutional Investor Survey”; April 2019
2.
Global Impact Investing Network; “2018 Annual Impact Investor Survey”; 2018
3.
Standard Chartered Private Bank; “Sustainable investments on the rise in Asia”; 31 May 2018
4.
AllianzGI; AllianzGI score 2018; 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.
5.
Asia Asset Management; 2019 Best of the Best Regional Awards - Best Application of ESG received in Mar 2019; The Regional awards are designed to identify Asia’s finest performers from financial services companies and institutional investors to service providers, whose influence and excellence expands beyond borders. These are firms that have boldly led the way in terms of innovation, service to clients, best practices and overall expertise in their field.
6.
BENCHMARK; Fund of the Year Awards 2018 received in Nov 2018; Outstanding Sustainable Investment Award assess the managers’ overall ESG quality and to measure the ability of their underlying holdings to manage key medium to long-term risks and opportunities arising from environmental, social, and governance factors.
7.
AllianzGI; 31 Mar 2019
Teaming up with The Sea Cleaners

Beyond investing, we are committed to helping reduce plastic pollution in the world. We are proud to partner with The Sea Cleaners to combat plastic pollution in the world’s oceans.

LEARN MORE
ESG
Allianz has been a 100% carbon-neutral business since 2012. Being part of Allianz group, AllianzGI offsets unavoidable carbon emissions by retiring carbon credits that were created via investments in sustainable forest protection projects.
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ESG
In an effort to encourage broader awareness of environmental sustainability, the US recently established a new Green Group to promote mindfulness through volunteerism and other initiatives that will reduce the firm’s environmental impact in the region.
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ESG
In an effort to encourage broader awareness of environmental sustainability, the US recently established a new Green Group to promote mindfulness through volunteerism and other initiatives that will help reduce the firm’s environmental impact in the region.
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ESG
Beyond our commitment to integrating ESG factors into all investment decisions and asset classes, AllianzGI also recognises the importance of preserving the natural environment in order to create a sustainable society for our future generation.
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ESG
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.
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ESG
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.
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ESG
However investors view the problem of climate change – perhaps as a threat to carbon-intensive industries or as an opportunity to contribute to the greater good – ignoring its effects on portfolios increasingly seems like a short-sighted option. Fortunately, there are many ways investors can incorporate this urgent issue into their strategies.
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ESG
The purpose of this report is to provide an update on: areas of ESG research we are focused on; our engagement with investee companies and how we are fulfilling our stewardship role; how we are integrating ESG across our investment strategies; and the ways we are innovating to meet clients’ evolving extra-financial demands.
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