Allianz Global Investors (AllianzGI) has set up a new unit focused on impact investing in private markets in an effort to create a sustainable investing drive.
With £647 billion in assets, AllianzGI is looking into private companies that are interested in solving environmental or social issues in a measurable way, it said in a statement.
ESG investing has seen unprecedented growth over the past two years, especially with the recent United Nations Climate Change Conference (COP26) in Glasgow, which generated a flood of climate pledges and promises as the world eyes a low-carbon economy.
However, impact investing takes it up a notch by actively choosing investments based on specific ethical guidelines instead of solely focusing on the financial returns it can bring. AllianzGI’s new team of 12 will be led by Matt Christensen, global head of sustainable and impact investing.
“Investors want to see a positive change for the planet while generating a return, and impact investing offers a solution to these twin goals,” Christensen said. “The future growth trajectory of impact investing depends on asset managers demonstrating how the impact can be measured and reported.”
Meanwhile, Diane Mark, who joined the asset manager in August, will oversee which particular investments to manage and monitor. The framework will assess both the impact of the investee enterprise or portfolio as well as the contribution that AllianzGI and other investors bring in supporting the investee.
AllianzGI said the approach “supports rigorous measurement and management of impact over the lifecycle of the investment to ensure that impact is being delivered.”