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Introduction to Sustainable Investing

Sustainable investing is transforming how investors pursue long-term growth by aligning financial goals with positive environmental and social impact. As interest in responsible investing continues to rise, understanding the foundations of sustainable investing becomes increasingly important.

Sustainable investing is an approach that integrates environmental, social, and governance (ESG) factors into the investment decision-making process. Instead of focusing solely on returns, this approach evaluates how companies manage environmental impacts, treat their stakeholders, and maintain ethical governance practices.

Why Sustainable Investing Matters

  1. Better Risk Management
    Companies with weak ESG practices are more exposed to regulatory risks, reputational threats, and unexpected operational disruptions.
  2. Long-Term Value Creation
    Companies with strong ESG performance tend to be more innovative, efficient, and resilient over time.
  3. Strengthening Global Momentum
    Governments, regulators, and global investors increasingly prioritize sustainability, making ESG integration a new standard in modern investment practices.

Common Approaches to Sustainable Investing

  • ESG Integration: Incorporating ESG factors into financial analysis.
  • Exclusionary Screening: Avoiding sectors or companies that do not meet specific sustainability standards.
  • Thematic Investing: Focusing on themes such as clean energy, water security, or sustainable agriculture.
  • Impact Investing: Investing with the intention of generating measurable social or environmental impact.

Sustainable investing enables investors to pursue long-term financial growth while contributing to a more responsible global economy. As awareness and adoption continue to increase, sustainable strategies are becoming an essential component of building a resilient, future-ready investment portfolio.

Investment through mutual funds contains risk. Before decide to invest, prospective investors must read and understand the prospectus. Past performance does not guarantee/reflect an indication of future performance.

This is a marketing communication. It is for informational purposes only. This document does not constitute investment advice or a recommendation to buy, sell or hold any security and shall not be deemed an offer to sell or a solicitation of an offer to buy any security.

The views and opinions expressed herein, which are subject to change without notice, are those of the issuer or its affiliated companies at the time of publication. Certain data used are derived from various sources believed to be reliable, but the accuracy or completeness of the data is not guaranteed and no liability is assumed for any direct or consequential losses arising from their use. The duplication, publication, extraction or transmission of the contents, irrespective of the form, is not permitted.

This material has not been reviewed by any regulatory authorities in Indonesia. PT Allianz Global Investors Asset Management Indonesia is licensed and supervised by Indonesia Financial Service Authority (OJK).

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