AllianzGI adds funds to ESG investments

AllianzGI has announced that 74 of its equity, fixed income and multi-asset funds will join its current sustainable investment offering.

AllianzGI says all portfolios will be constructed using the AllianzGI Sustainable Minimum Exclusions methodology and will adopt a stronger engagement approach or SRI Best-in-class considerations.

AllianzGI is also launching a dedicated climate engagement approach which aims to engage with companies on the climate transition pathway towards a low carbon economy. Fund managers will actively engage with the top 10 absolute carbon emitters (scope 1 and 2) within their portfolio as a proxy for climate impact. The top 10 emitters in each fund are chosen irrespective of their sector, allowing climate impact to be addressed at a fund level.

Engagement targets will include greenhouse gas emissions reduction targets or board level remuneration targets linked to climate change. If the issuer does not respond to requests or does not show an improvement effort in their climate pathway, divestment will be considered in the escalation process.

Matt Christensen, Global Head of Sustainable and Impact Investing at Allianz Global Investors, comments: “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. The Climate Engagement with Outcome approach represents further development in our proactive stewardship approach. Given our experience from engagement with companies so far, we are confident that companies are open to this dialogue and will share these views.”