Asset manager Allianz Global Investors (AllianzGI) announced today the new exclusion policy, limiting the company’s investments in coal, and avoiding investments in businesses involved in controversial weapons.
Starting in December, AllianzGI will no longer invest in companies that obtain more than 30% of their annual revenue from coal mining, or in companies that generate more than 30% of their electricity production from coal. The company’s controversial weapons policy will apply to companies that are involved in the development, production, use, maintenance, offering for sale, distribution, import or export, storage or transportation of, anti-personnel mines, cluster munitions, biological weapons, chemical weapons, nuclear weapons outside of NPT (non-proliferation treaty), and weapons using depleted uranium.
The announcement follows the recent expansion by parent company Allianz Group of its sustainability guidelines regarding carbon-based businesses, including an acceleration of the company’s exit from providing insurance services to coal producers and coal-based energy companies who do not have credible transition strategies. Allianz Group plans to phase out coal-based business models from its investment and property and casualty insurance businesses by 2040.
Allianz GI has been actively ramping its sustainable investment focus in recent months. In March, the company shifted 74 of its funds, representing €70 billion of AUM, to its sustainable investment offering. increasing its focus on sustainable investing.
Deborah Zurkow, Allianz GI Global Head of Investments, said:
“With this new coal policy, our aspiration is to position our portfolios on a trajectory towards climate transition, and we are confident that this will match our clients’ expectations. AllianzGI, a committed member of the Net Zero Asset Manager Initiative, is completing its toolkit to support the goal of net zero greenhouse gas emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5°C. Our coal withdrawal strategy marks the next stage in our contribution to tackling climate challenges and further underscores our commitment to responsible investment”.