AGL approach to Sustainability
At Allianz Global Life (AGL) we believe that Sustainability must be taken into consideration when designing a product. We define Sustainability risk as comprises environmental, social or governance (ESG) events or conditions which, if they occur, may potentially have material negative impacts on the assets, profitability or reputation of the Allianz Group or one of its group companies.
AGL role on integrating the sustainability risk into the investment decision is as follows:
• Integrating sustainability risks into investment decisions is limited to selecting funds available to clients as the underlying of insurance products
• Involved in the process of selecting funds for unit-linked insurance products in which clients bear the investment risk, and with this also the sustainability risk of the funds or other units in which the insurance premium is invested
How we minimize Sustainability Risk
1. By selecting only Asset Managers who are signatories to the UN PRI or have their own ESG policy
2. By partnering with Asset Managers who consider ESG risks in investment analysis and reflecting them in investment decision-making processes.
3. Making sure our designated Asset Managers comply with the UN PRI this commitment in different ways, adopting exclusion strategies, systematically assessing the ESG rating of investments managed through the use of external providers or through the construction of proprietary ratings, identifying minimum ratings for new investments and portfolio investment
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