A key focus of our impact investments is on the “what”. We target companies making a significant positive contribution to environmental and social outcomes through the goods and services that are core to their business models, whilst seeking to generate attractive financial return.

Our due diligence process for impact investing strategies includes a proprietary impact scoring system. This system is aligned with the Impact Management Project’s five dimensions of impact considering both enterprise impact and investor contribution. The objective is to assess an investment’s impact significance in terms of both degree (how much impact it makes) and contribution (how an investment contributes to desired outcomes which might not otherwise have occurred), using best available data and evidence. We also focus also on how we, as investors, can contribute towards positive impact, e.g. via active engagement.

We believe in appropriate alignment of employee performance management and/or incentive systems with impact outcomes. At AllianzGI, we believe the roll-out of such systems will be critical in the coming years and we increasingly discuss the potential for independently verifiable impact-linked performance incentive structures.