Allianz Global Investors (AllianzGI), one of the world’s largest active investment managers, has announced that 74 of its equity, fixed income and multi-asset funds representing a total of €70 billion will join its current sustainable investment offering.
The decision reflects a significant acceleration of the company’s sustainable investment strategy.
“Climate change is one of our planet’s most pressing challenges, and AllianzGI believes that asset managers should take a more active role in shaping the future,” said Matt Christensen, Global Head of Sustainable and Impact Investing at AllianzGI. “The Covid-19 crisis has renewed the focus both on climate change and social factors.”
The announcement reflects the company’s growing ambition to emerge as a leader in sustainable investment. According to the statement, the company’s portfolios will be constructed using ESG assessments that reflect clients’ values and will adopt a new engagement approach.
AllianzGI will also launch the Climate Engagement with Outcome approach, which aims to engage with companies on their transition towards a low-carbon economy and zero-emissions target.
Fund managers will engage with the top 10 absolute carbon emitters within their portfolios by promoting ESG initiatives, such as setting greenhouse gas emissions reduction targets. The list of emitters in each fund will be chosen irrespective of their sector, allowing climate impact to be addressed at a fund level.
The supporting analysis of company results will be based on a Best Practices Sector-Specific Engagement Map, which analyses the company in the context of its sector and sets engagements based on their peer comparison.
AllianzGI’s announcement reflects a growing shift towards ESG across the corporate world.
According to the latest US SIF Foundation report, investors held $11.6 trillion in assets chosen according to ESG criteria at the beginning of 2018, up from $8.1 trillion just two years earlier.
That number is likely to continue to grow as more funds like AllianzGI make ESG principles core to their business.