WHAT IS DRIVING SUSTAINABLE INVESTING FORWARD?
Investors today want to align their investments with their personal and social values. Whether it’s tackling marine or water pollution, addressing climate change, alleviating poverty or helping more women break the glass ceiling, we are witnessing a rising demand for sustainable investing incorporating Environmental, Social and Governance (ESG) factors.
The COVID-19 pandemic has also highlighted core sustainability issues, such as income inequality, insufficient medical care as well as disrupted global supply chains. As a result, sustainability is likely to be increasingly important for investors.
Traditional accounting based financial analysis is inadequate to cope with hidden risks and opportunities, which are very important to determine management quality and reputational risks. These ESG-related hidden risks and opportunities could create actual tangible impact on the performance of investment portfolios.
SO WHAT'S ESG?
At Allianz Global Investors (AllianzGI), we consider ESG – environmental, social and governance – factors alongside financial factors in our investment decision-making process.
Environmental
Environmental
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Climate
Change
Natural
Resources
Pollution
& Waste
Environmental
Opportunities
Social
Social
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Human
Capital
Health
& Safety
Supply
Chain
Social
Opportunities
Governance
Governance
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Risk
Management
Corporate
Leadership
Internal
Controls
Executive
Remuneration
Shareholder
Rights
SUSTAINABLE DEVELOPMENT IN INDONESIA
Indonesia ranks second among nations with the highest plastic waste contribution to the ocean. In order to reduce its plastic waste, Indonesia has implemented several regulations to minimize the use of plastic bags.
Indonesia has begun directing its people to convert to using electric vehicles through various programs and regulation. The use of electric vehicles is expected to help reduce fuel imports and support the target of net zero emissions by 2060.
In order to realize its target of reducing 29% of national greenhouse gas emissions by 2030, Indonesia has formulated a roadmap and strategies allocated to relevant sectors, including energy, industry, waste, agriculture, and forestry.
Source: Investor.id
By 2030, Indonesia hopes to achieve 100% universal access to clean sanitation.
As the largest ASEAN country, Indonesia accounts for nearly two-fifths of energy consumption in ASEAN. In order to minimize its reliance on domestic production of coals and imported fuel, Indonesia aims to achieve 31% use of renewable energy by 2050.
Reducing poverty has posed a tough challenge to this country of 275 million people, though its efforts to reduce poverty have produced positive results, with a 9.54% decline in poverty rate in 2022.
OUR DEFINITION OF SUSTAINABLE INVESTING
Recognising our clients’ needs, we offer a range of sustainable investing approaches.
With sustainable investing no longer seen as a trend but as an essential consideration in portfolio management, the investment industry is at a tipping point. Sustainable investing approaches can deliver positive outcomes, and active engagement with the companies in which we invest offers potential benefits.
Sustainable investing for AllianzGI includes three broad categories: ESG risk-focused, Sustainability-focused and Impact-focused.
WHY ALLIANZGI?
Sustainable investing is in our DNA
Allianz Global Investors manages a range of sustainable investing funds. We started this journey over 20 years ago with a belief that sustainable investing can generate positive performance not just for our clients, but for the community at large. As an active investor with a long-term outlook, we consider sustainability issues intuitively in our investment decisions and engagement. For colleagues across AllianzGI, this is part of our firm’s DNA.
AllianzGI receives highest possible ESG Strategy and Governance score from PRI
For the fourth consecutive year, AllianzGI has received an “A+”* from the PRI for its overarching approach to ESG Strategy and Governance. This category encompasses ESG policies, objectives and memberships, and considers how the firm promotes ESG efforts internally and externally.


*Source: PRI; August 2020.
EUR 277B
in ESG risk-focused and Sustainable products
Source: AllianzGI; as of 31 March 2022
20+ years
of sustainable investing
100+
dedicated professionals
4th year
in a row AllianzGI received an A+ from PRI
Collaborative ESG initiatives

As a leading asset manager in the development of sustainable investment, AllianzGI is committed to limiting global warming and ensuring a smooth transition to a low-carbon future. To bring greater visibility to the issue of climate change, the “Art on Climate” International Illustration Competition was first launched in Spain in 2019 and extended its footprint to the Asia-Pacific region in 2021, attracting over 1,300 artworks from more than 1,000 illustrators. In 2022, the competition’s footprint has been expanded to cover more regions, including various European countries, the US and more countries in the Asia-Pacific region. The competition provides a platform for illustrators and students to showcase their talents and skills.

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