Allianz Global Investors has unveiled a global exclusion policy that aims to tackle climate change by divesting from the single largest source of carbon emissions – coal. As part of the policy, the company will also go beyond its current restrictions on investments related to cluster munitions and anti-personnel mines and will include restrictions on other types of controversial weapons.
Under the enhanced policy, AllianzGI will refrain from investing 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.
The policy will become effective starting in December 2021 for all existing funds for which AllianzGI acts as management company and will be the default policy for all new funds and mandates after this date, subject to authorization of the relevant jurisdictions and completion of relevant documentation.
In cases other than these proprietary funds, including institutional vehicles and segregated accounts, as well as sub-advisory mandates, AllianzGI will seek the consent of relevant clients for the application of the policy.
Deborah Zurkow, global head of investments, says: “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.”
In addition, the policy will expand the existing exclusions on cluster munitions and anti-personnel mines to include other controversial weapons. AllianzGI will not invest in 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 company says it will review its exclusions policy at least annually or more frequently if material changes to the regulatory or market environment occur that may require adjustments.