Contact Us United States | Institutional Investor Login Our Firm Strategies and Solutions Sustainable Investing Insights SEARCH What is Sustainable Investing? Why Sustainable Investing? Why AllianzGI? Sustainable Ideas Sustainability Day Sustainable Solutions What is Sustainable Investing? At Allianz Global Investors, we define Sustainable Investing as a broad investment category that incorporates Environmental, Social and Governance (ESG) factors into investment decisions as a means to better manage risk and potentially enhance long-term returns. With two decades of experience in Sustainable Investing, we believe that ESG factors represent a true evolution of the investment playbook and are now an indispensable tool for helping investors aim for both better financial and social outcomes. As a broad category, Sustainable Investing covers a number of investment strategies, each with distinct traits that affect how portfolios are constructed, the degree to which philosophical views are expressed, and the extent of social impact. We see Sustainable Investing as falling mainly into three wide-ranging groups: Integrated ESG, Sustainable and Responsible Investing (SRI), as well as Sustainable Development and Impact Investing. Integrated ESG: A smarter approach to managing risk that can help boost returns What is it? How does it work? What's the potential payoff? What is Integrated ESG? At AllianzGI, we believe environmental, social and governance factors are essential drivers of investment returns. Integrated ESG incorporates ESG factors into every aspect of our investment process, across all asset classes, in order to better manage risk and potentially improve investment returns. Sustainable and Responsible Investing (SRI): Reflecting your ideals What is it? How does it work? What's the potential payoff? What is Sustainable and Responsible Investing (SRI)? Investors today increasingly realize that they have the power to make a difference in the world by choosing where and how to invest their funds. Investors who want their portfolios to reflect their values—while still seeking positive financial outcomes—can express those goals by investing in Sustainable and Responsible Investing (SRI) strategies. Our SRI strategies assess corporate ESG practices to create both inclusionary and exclusionary portfolios designed to deliver sustainable returns, measured in both financial and social/environmental terms. Investing in these strategies goes beyond aligning with your philosophical views. In fact, in many instances, they represent unique growth investing opportunities. For example: Key long-term trends—such as an ongoing change in the energy mix, the need to address climate change, and large advances in technology—have now combined to create a strong engine of growth for both business and investment opportunities, especially in renewable energy. Sustainable Development and Impact: Investing for positive change What is it? How does it work? What's the potential payoff? What are Sustainable Development and Impact strategies? A growing number of investors want to use their funds to improve society or make a positive impact on the environment. Investors who want their portfolios to make a particular societal impact—while still seeking positive financial outcomes—can express those goals by investing in Sustainable Development and Impact strategies. Our Sustainable Development strategies invest in enablers of positive change, seeking to add societal and/or environmental value through these investments. These sustainability themed strategies hope to engender positive changes by being aligned with one or more of the United Nations' Sustainable Development Goals. Our Impact strategies aim for intentional and measurable positive societal and/or environmental benefits alongside financial returns, also aligned with one or more of the UN SDGs. Visit our Sustainable Ideas page for more insights about investing for financial and social outcomes. 1. How do ESG factors impact portfolio performance? Dr. Steffen Hörter, June 2019. 2. Investing responsibly. ESG in Equities. 3. How do ESG factors impact portfolio performance? Dr. Steffen Hörter, June 2019. 4. Ibid Investing involves risk. The value of an investment and the income from it will fluctuate and investors may not get back the principal invested. Past performance is not indicative of future performance. This is a marketing communication. It is for informational purposes only. This document does not constitute investment advice or a recommendation to buy, sell or hold any security and shall not be deemed an offer to sell or a solicitation of an offer to buy any security. The views and opinions expressed herein, which are subject to change without notice, are those of the issuer or its affiliate d companies at the time of publication. Certain data used are derived from various sources believed to be reliable, but the accuracy or completeness of the data is not guaranteed and no liability is assumed for any direct or consequential losses arising from their use. The duplication, publication, extraction or transmission of the contents, irrespective of the form, is not permitted. This material has not been reviewed by any regulatory authorities. In mainland China, it is used only as supporting material to the offshore investment products offered by commercial banks under the Qualified Domestic Institutional Investors scheme pursuant to applicable rules and regulations. This communication's sole purpose is to inform and does not under any circumstance constitute promotion or publicity of Allianz Global Investors products and/or services in Colombia or to Colombian residents pursuant to part 4 of Decree 2555 of 2010. This communication does not in any way aim to directly or indirectly initiate the purchase of a product or the provision of a service offered by Allianz Global Investors. Via reception of his document, each resident in Colombia acknowledges and accepts to have contacted Allianz Global Investors via their own initiative and that the communication under no circumstances does not arise from any promotional or marketing activities carried out by Allianz Global Investors. Colombian residents accept that accessing any type of social network page of Allianz Global Investors is done under their own responsibility and initiative and are aware that they may access specific information on the products and services of Allianz Global Investors. This communication is strictly private and confidential and may not be reproduced. This communication does not constitute a public offer of securities in Colombia pursuant to the public offer regulation set forth in Decree 2555 of 2010. This communication and the information provided herein should not be considered a solicitation or an offer by Allianz Global Investors or its affiliates to provide any financial products in Panama, Peru, and Uruguay. This document is being distributed by the following Allianz Global Investors companies: Allianz Global Investors U.S. LLC, an investment adviser registered with the U.S. Securities and Exchange Commission; Allianz Global Investors Distributors LLC, distributor registered with FINRA, is affiliated with Allianz Global Investors U.S. LLC; Allianz Global Investors GmbH, an investment company in Germany, authorized by the German Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin); Allianz Global Investors (Schweiz) AG, licensed by FINMA (www.finma.ch) for distribution and by OAKBV (Oberaufsichtskommission berufliche Vorsorge) for asset management related to occupational pensions in Switzerland; Allianz Global Investors Asia Pacific Ltd., licensed by the Hong Kong Securities and Futures Commission; Allianz Global Investors Singapore Ltd., regulated by the Monetary Authority of Singapore [Company Registration No. 199907169Z]; Allianz Global Investors Japan Co., Ltd., registered in Japan as a Financial Instruments Business Operator [Registered No. The Director of Kanto Local Finance Bureau (Financial Instruments Business Operator), No. 424, Member of Japan Investment Advisers Association and Investment Trust Association, Japan];and Allianz Global Investors Taiwan Ltd., licensed by Financial Supervisory Commission in Taiwan. 961006 With cookies, we are able to provide a user-friendly, safe and effective website. To activate the usage of all cookies on this website, please Accept Cookies below or use the Cookies Settings Tool to select which you'd like to allow. You can withdraw your consent at any time using this tool. For more information, please read our Privacy Policy. Privacy Policy ACCEPT ALL COOKIES Cookies settings