1. Allianz Global Investors
Klimatanpassning Sverige 2017
Stefan Hilton 7 september 2017

2. Allianz Global Investors - who we are!1
Allianz Global Investors - who we are!

3. Allianz Global Investors – who we are and what we do!
Source: Allianz Global Investors, For illustrative purposes only.

4. AllianzGI is a pioneer in ESG investing
First Allianz Impact strategies launched
2015
2002
2006
First Allianz Norms/ Values based strategy launched
2008
2011
First Allianz ESG Integrated Strategies to be launched
2017
First Allianz Global SRI Equity strategy launched
2000
First Allianz SRI Fixed Income strategy launched
2007
2010
First Multi Asset SRI strategy launched
2014
2016
2013
Source: Allianz Global Investors, For illustrative purposes only.

5. Deep commitment to proprietary research
Collaboration of portfolio managers, analysts and traders - facilitated via Chatter, our social enterprise network
One global investment platform linked by shared research and trading
Sharing insights globally creates an information advantage, helping to generate outperformance for our clients
GrassrootsSM Research is a division of Allianz Global Investors that commissions investigative market research for asset-management professionals.. Data used to generate GrassrootsSM Research recommendations is received from reporters and field force investigators who work as independent contractors for broker-dealers. Those broker-dealers supply research to AllianzGI and certain of its affiliates that is paid for by commissions generated by orders executed on behalf of AllianzGI’s clients.

6. Is there an environmental focus in the investment industry?2
Is there an environmental focus in the investment industry?

7. ESG risks moving to the top of the agenda Top 5 Global Risks in Terms of Impact according to World Economic Forum surveys 2007 – 2016
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
1st
Asset price collapse
Fiscal crises
Major syste-mic financial failure
Water crises
Failure of climate change mitigation and adaption
Weapons of mass destruction
2nd
Retrench-ment from globalisation
(developed)
Retrench-ment from globalization
Climate change
Water supply crises
Rapid and massive
spread of infectious diseases
Extreme weather events
3rd
Interstate and civil wars
Slowing Chinese economy (<5%)
Oil and gas price spike
Geopolitical conflict
Food shortage crises
Chronic fiscal imbalances
Water
crises
4th
Pandemics
Chronic disease
Diffusion of weapons of mass destruction
Unemploy-ment and under-employment
Interstate conflict with regional consequences
Large-scale
Involuntary migration
Major natural disasters
5th
Oil price shock
Pandemies
Extreme energy price volatility
Extreme volatility in energy and agriculture prices
Failure of climate change adaption
Critical information infrastructure breakdown
Severe energy price shock
Economic
Environmental
Geopolitical
Social
Technological
Source: World Economic Forum 2017, The Global Risks Report 2017, 12th edition, p.4. Global risks may not be strictly comparable across years, as definitions and the set of global risks have evolved with new issues emerging on the 10-year horizon. For example, cyberattacks, income disparity and unemployment entered the set of global risks in Some global risks were reclassified: water crises and rising income disparity were re-categorized first as societal risks and then as a trend in the 2015 and 2016 Global Risks Reports, respectively. The 2006 edition of the Global Risks Report did not have a risks landscape.

8. Green Bond issues boomed after corporates entered the market
Labelled green bond issuance (USD bn)
Corporate, muni, and commercial bank bonds make up a growing proportion of issuance
2017 : New Green Bond issuances to come, notably from governments
Increased standardization and regulation across the world
Incentives still needed, especially directed towards industrial activities
Source: Climate Bonds Initiative, data as of 19/06/2017
This is for guidance only and not indicative of future allocation.

9. Green Bond market Diversification of issuer type and use of proceeds
The weight of development banks is decreasing to the benefit of Corporates and Sovereign issuers
Source: Allianz Global Investors, Climate Bonds Initiative, data as of 19/06/2017

10. Global ESG ratings – The challenges and opportunities
Green bars = global average
Source: AllianzGI prop. ESG data, as at 30 June 2017.

11. 3
Global Sustainability - Risks, Opportunities, & Impact within investments

12. ESG analysis identifies risks and serves as early warning signal
Anticipation and assessment of material ESG risks: spot early, evaluate and monitor
Price t
Low
Medium
Critical
Tail risk
ESG risk:
Example: ESG tail risk analysis**
MSCI ESG risk scores for >6,000 corporate issuers*
Stock specific ESG risk signal
Research Platform
Intrinsic ESG Ratings
Intrinsic ESG override
Global Research
Platform
* Environmental Pillar Score , Social Pillar Score and Governance Pillar Score. Rating Scale 0-10 / 0-3 is considered high ESG-risk
** For illustration purposes only. Source: Allianz Global Investors, For illustrative purposes only.

13. Thematic Research
Identification of Long Term Environmental Risks and Opportunities
Example
Description
Investment Driver
Stranded Asset Risk
To prevent a potentially catastrophic rise in global temperatures, carbon emissions have been restricted to no more than 900 billion tonnes to ensure temperature rises remain below 2 degrees.
Coal and oil & gas companies are partially valued using the future reserves held on the balance sheet. These valuations may be impaired if restrictions are put in place to limit the use of these reserves. These reserves may become ‘stranded’ .
Source: Carbon Tracker Initiative / AllianzGI ESG Research 30 September 2015

14. Impact of portfolio on society – environment
Green House Gas intensity per sales
Metric tonnes of green house gas emissions per USD millions of sales
1,095.1
800.1
Data shown for Global Sustainability Fund vs DJSI and MSCI ACWI as of 30 June 2017.
Source: Bloomberg as of latest Fiscal year. 92% benchmark, 79% portfolio.

15. 4
Questions?

16. Disclaimer
Investing involves risk. The value of an investment and the income from it could fall as well as rise and investors might not get back the full amount invested.
Investing in fixed income instruments may expose investors to various risks, including but not limited to creditworthiness, interest rate, liquidity and restricted flexibility risks. Changes to the economic environment and market conditions may affect these risks, resulting in an adverse effect to the value of the investment. During periods of rising nominal interest rates, the values of fixed income instruments (including short positions with respect to fixed income instruments) are generally expected to decline. Conversely, during periods of declining interest rates, the values of these instruments are generally expected to rise. Liquidity risk may possibly delay or prevent account withdrawals or redemptions.
Past performance is not a reliable indicator of future results. If the currency in which the past performance is displayed differs from the currency of the country in which the investor resides, then the investor should be aware that due to the exchange rate fluctuations the performance shown may be higher or lower if converted into the investor’s local currency.
The views and opinions expressed herein, which are subject to change without notice, are those of the issuer companies at the time of publication. The data used is derived from various sources, and assumed to be correct and reliable, but it has not been independently verified; its accuracy or completeness is not guaranteed and no liability is assumed for any direct or consequential losses arising from its use, unless caused by gross negligence or wilful misconduct. The conditions of any underlying offer or contract that may have been, or will be, made or concluded, shall prevail.
This is a marketing communication issued by Allianz Global Investors GmbH, an investment company with limited liability, incorporated in Germany, with its registered office at Bockenheimer Landstrasse 42-44, Frankfurt/M, registered with the local court Frankfurt/M under HRB 9340, authorised by Bundesanstalt für Finanzdienstleistungsaufsicht ( The duplication, publication, or transmission of the contents, irrespective of the form, is not permitted.