As part of its strategic ambition to be a sustainable investment shaper, and anticipate client demand, asset manager AllianzGI has announced that 74 of its equity, fixed-income and multi-asset funds will join its current sustainable investment offering.
As a result, the portfolios will be constructed using environmental, social and governance (ESG) assessments and adopt a socially responsible investing best-in-class considerations.
The company will also launch the Climate Engagement with Outcome approach, which aims to engage with companies on the climate transition pathway towards a low-carbon economy.
As part of this approach, fund managers will engage with the top 10 absolute carbon emitters (scope 1 and 2) within their portfolios 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.
The supporting analysis is 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 and what this sector should achieve going forward.
Examples of engagement include greenhouse gas emissions reduction 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.
“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,” says Matt Christensen, the company’s global head of sustainable and impact investing. “The Covid-19 crisis has renewed the focus both on climate change and social factors. Many policy-makers and investors are viewing the crisis as a wake-up call that accelerates the need for sustainable investing.”