Climate change is one of our planet’s most pressing challenges. We at Allianz- GI believe that asset managers should take a more active role in shaping the future. Since 1999 we meet this responsibility with commitment, dedication and far-sighted actions.
We are happy to announce that 74 equity, fixed income and multi-asset funds will join our current sustainable investment offering.
What is the actual significance of the European Sustainable Finance Disclosure Regulation?
On 10 March 2020, the Sustainable Finance Disclosure Regulation (SFDR) came into force 1 to:
- Redirect capital flows towards sustainable investments Favouring a sustainable and inclusive growth.
- Integrate sustainability into risk management.
- Promote transparency and long-term nature of financial and economic activities.
The basis: The United Nations’ 17 Sustainable Development Goals (SDGs)
The regulation is based on the 17 SDGs formulated by the United Nations in 2015 2. These goals also include the key conventions of the Paris Agreement aiming at counteracting the dangerous change in climate conditions.
On the basis of these targets the European Union adopted the Green Deal comprising several climate and energy goals including:
- The reduction of greenhouse gas emissions by 40% by 2030, compared to 1999.
- An increase of the share of renewable energy by 27%.
Sustainable investments: Various strategies and a common goal
More and more people want to integrate sustainable criteria into their investment decisions. Sustainable investments can pursue different objectives – the reduction of risks, the exploration of alpha-generation-potentials or the unfolding of beneficial social and environmental effects.
Following the SFDR there are in principle three distinguishable product categories:
- Products that do not promote environmental or social characteristics and that do not pursue any sustainable goal (article 6 of the SFDR)
- Products that promote environmental or social characteristics (ESG criteria like the exclusion of producers of controversial weapons, fair working conditions and workers’ protection measures) (article 8 of the SFDR)
- Products that pursue a measurable sustainable goal and provide a financial added value (article 9 of the SFDR).
Sustainable investments pay off
Allianz Global Investors is committed, as an active manager with a long-term outlook, to actively safeguard the clients’ interests. For a number of funds, Allianz Global Investors will set the bar even higher to support the company’s and clients’ ambitions on addressing change. Al- lianz Global Investors recognizes the urgency of this global challenge and the power of the so-called engagement approach (active perception of investors’ interests in a critical dialogue with companies).
With the newly established approach “Climate Engagement with Outcome” (result-oriented climate engagement) Allianz Global Investors therefore demands and fosters the transition pathway towards a low carbon economy.
From now on, the company will engage in a critical dialogue with the 10 largest CO2 emitters in each portfolio (Scope 1 and 2) to work together, for example, towards a reduction in greenhouse gas emissions.
Sustainable investments in future-orientated companies that use their high innovation potential to make the energy and the soils we use and the air we breathe cleaner or that make water and other vital resources available for all, are investments in a world we all love to live in. Now and in the future.
Allianz Global Investors integrates environmental and social engagement and its responsibility for finances in its sustainable investments. The overall goal is to achieve a full climate neutrality of the EU by 2050. Achieving these objectives re- quires joint actions and efforts. The financial sector plays a central and crucial role here and bears a special responsibility: after all, financing is a decisive factor in ensuring a quick and consistent incorporation of sustainability criteria into economic, operational and company decisions.
Learn more at – allianzgi.co.uk
Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in the financial services sector.
1) The implementation status of the sustainable finance disclosure regulation is based on the current understanding of the regulation and is subject to change as the level 2 requi- rements are not published yet and feedback from European Supervisory Authorities (ESAs) on product classification is outstanding.
2) Allianz Global Investors supports the United Nations Sustainable Development Goals (SDGs) The UN Sustainable Development Goals, established in 2015, are 17 global goals aiming to guide the path of sustainable development in the world. The Paris Agreement is a legally binding international treaty on climate change. It was adopted by 196 Parties at COP 21 in Paris, on 12 December 2015 and entered into force on 4 November 2016.
This is a marketing communication issued by Allianz Global Investors GmbH, www.allianzgi.com, an investment company with limited liability, incorporated in Germany, with its registered office at Bockenheimer Landstrasse 42-44, 60323 Frankfurt/M, registered with the local court Frankfurt/M under HRB 9340, authorised by Bundesanstalt für Finanz- dienstleistungsaufsicht (www.bafin.de). Allianz Global Investors GmbH has established a branch in the United Kingdom, Allianz Global Investors GmbH, UK branch, 199 Bi- shopsgate, London, EC2M 3TY, www.allianzglobalinvestors.co.uk, deemed authorised and regulated by the Financial Conduct Authority. Details of the Temporary Permissions Regime, which allows EEA-based firms to operate in the UK for a limited period while seeking full authorisation, are available on the Financial Conduct Authority’s website (www. fca.org.uk). Details about the extent of our regulation by the Financial Conduct Authority are available from us on request. Admaster: 1575312