Our investment process
We believe a thematic approach to SDG-aligned investing can most effectively capture the opportunities that arise.
We have identified eight static SDG-based themes, which are built on the Sustainable Development Goals and underlying targets. Sitting under these themes are detailed and evolving SDG topics which represent concrete solutions – these topics will grow further as new technologies, or sometimes entire business segments, develop, evolve and mature into viable, effective and economical solutions that bring desired positive outcomes.
Overview SDG themes - Proprietary SDG themes with selested underlying topics and SDG-alignment1
Underlying SDG topics are an evolving pool of focused investable solutions
Why thematic investing?
All of our SDG funds follow our thematic investment approach, built on a solid understanding of secular drivers, and the ability to identify companies with long-term potential. These companies have greater growth potential, are more resilient to macroeconomic and political volatility, and benefit from regulatory tailwinds.
The team actively selects companies based on a combination of fundamental research and the analysis of the contribution of each company to the SDGs. We seek out the most promising companies within a topic. Companies engaged in controversial business practices or activities are excluded from the portfolio.2
We invest in the Key Enablers of the SDGs
SDG-aligned investment strategies invest in companies that we call key enablers of the SDGs. These companies enable others to act, as they provide goods or services that allow others to lower or minimise their footprint. These key enablers therefore have a multiplier effect: they not only manage their own footprint but have a potentially much larger effect through their impact on others.
How a company’s Handprint takes its Footprint one step further
A company’s footprint measures the impact on the environment and society that their activities produce. Frequently measured footprint categories include, for example, the carbon footprint (the amount of carbon dioxide emitted) or the water footprint (the fresh water consumed and/or polluted). Traditional sustainable investment strategies focus on the improvement or even minimisation of the footprint of invested companies.
SDG-aligned investment strategies go one step further by investing in companies that are key enablers of the SDGs. These companies enable others to act, as they provide goods or services that allow others to lower or minimise their footprint. The handprint describes this impact. These key enablers therefore have a multiplier effect: they not only manage their own footprint, but have a potentially much larger effect through their impact on others.
Explore our capabilities
Learn more about our strategies, process and gain further insights from our experts.
1Source: Allianz Global Investors.
Allianz Global Investors supports the UN Sustainable Development Goals (SDG)
2Allianz Global Investors, August 2020. A performance of a strategy is not guaranteed and losses remain possible. This is for illustrative purposes only and discussion on a new strategy idea.
ESG: Environmental, Social and Governance. SRI: Sustainable and Responsible Investing
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