AllianzGI expands exclusion policy

Investee companies must have cap on revenues from coal and controversial weapons.

Active asset manager Allianz Global Investors (AllianzGI) has expanded its exclusion policy to restrict investments into companies exposed to thermal coal extraction as well as cluster munitions and anti-personnel mines.

The group said these restrictions will be effective from December 2021.

Looking at the policy in detail, AllianzGI will not invest in companies that derive more than 30% of their annual revenue from thermal coal extraction, and companies where more than 30% of their electricity production is based on coal.

Deborah Zurkow, global head of investments, explained: “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”.

In terms of controversial weapons, AllianzGI has expanded the existing exclusions on cluster munitions and anti-personnel mines to include other controversial weapons. Funds will avoid 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.

This will be applied to all existing funds and be the default policy for all new funds and mandates after this date, subject to authorisation of the relevant jurisdictions and completion of relevant documentation.

Where the group holds assets in institutional vehicles, segregated accounts, or sub-advisory mandates, AllianzGI will seek the consent of the respective clients for the application of the policy.

The policy will be reviewed annually or more frequently if material changes to the regulatory or market environment occur that may require adjustments.