Allianz Global Investors (Allianz GI is to divest from major coal-related companies as part of a new policy that will distance it from the world’s single largest source of carbon emissions.
The $703 billion asset manager – the sister company to fixed income giant PIMCO – also intends to act beyond its current restrictions on investments related to cluster munitions and anti-personnel mines, and focus on restrictions on other types of controversial weapons.
The new policy states that Allianz GI will no longer invest in companies that derive in excess of 30% of annual revenue from thermal coal extraction, nor companies that base more than 30% of their electricity production on coal.
The company also intends to expand its exclusion policy regarding cluster munitions and anti-personnel mines to include biological weapons, chemical weapons, nuclear weapons outside of non-proliferation treaties, and weapons using depleted uranium.
The enhanced policy, effective from December 2021 for all existing funds, will be attributed to all new funds after this date, subject to relevant jurisdictions and documentation.
With regard to institutional vehicles and segregated accounts, as well as subadvisory mandates, Allianz GI has said it will attempt to obtain consent from clients in order to apply the policy.
“With this coal policy, our aspiration is to position our portfolios on a trajectory towards climate transition, and we are confident this will meet our clients’ expectations,” said Deborah Zurkow, global head of investments at Allianz GI.
“Allianz GI, 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 global warming to 1.5 degrees [Celsius],” she added.
The policy announcement arrives amid an acceleration of net zero target concern among the asset management community. The Net Zero Asset Manager Initiative has just announced 41 additional signatories to its commitment – bringing its total assets under management to nearly half of all global investment assets.