01 Our vision of 02 Sustainable 03 Active 04 Strengthening sustainability 05 Appendices sustainability investing stewardship in our operations 01.5 Our ambition for 2024 Principle 4 Many of our clients want their The political agenda risks delaying the targets set at the COP 15 biodiversity Furthermore, CSRD, which requires investments to bring a positive di昀昀erence the 昀椀nancing and implementation of conference will help put biodiversity at the large corporates to report as of 2025 to the world, in addition to seeking transition plans that could result in a top of the sustainability agenda. for the 昀椀scal year 2024, stipulates the attractive returns. This is why we expect higher probability of a “delayed transition” There are, however, obstacles to overcome. inclusion of information on biodiversity. to see even more sustainable investing scenario, as described by the Network for Many businesses lack a thorough AllianzGI welcomes the growing 8 alignment between the TNFD and in 2024 and onwards, with the future Greening the Financial System, where understanding of their dependencies on orienting towards impact investments. signi昀椀cant catch-up investment is needed ecosystems – in particular through their CSRD that will help accelerate the to limit warming to below 2°C. supply chains – and how to manage both integration of biodiversity into investment 01.5.1 Our view of the market The climate impacts of a 2°C world could the risks and opportunities. In addition, processes. We expect these trends to Sustainability is an increasingly dominant be volatile in both scale and location, companies that are more advanced and stimulate further client interest and new aspect of investing and it is constantly with implications for economic growth, wish to build their resilience remain restricted product development. evolving. We see three macro trends risk modelling and the 昀椀nance needed to by the lack of data to support standardised shaping the sustainability outlook for 9 metrics for conservation management. achieve a delayed transition. AllianzGI 2024 and beyond: is already providing advisory analysis on Frameworks and regulations will play a 1. The political agenda could pack the potential impact on client portfolios key role in overcoming these challenges a delayed punch in terms of the drag on returns under and helping to integrate biodiversity into With more than two billion voters di昀昀erent climate scenarios re昀氀ecting 昀椀nance. Therefore, AllianzGI joined the in 50 countries heading to the polls increased systemic risk. Task Force on Nature-related Financial – accounting for over 50% of global 2. Biodiversity takes centre stage Disclosures (TNFD) in 2023, endorsing its GDP6 – 2024 is expected to be a While biodiversity has typically attracted ambition to reduce nature-related risks to 7 business and 昀椀nance. signi昀椀cant year for elections. These less attention than climate change as an elections will take place during an environmental concern, 2024 could be the The TNFD framework aims to improve ongoing cost-of-living crisis, precarious year when it gets the attention it deserves. the assessment and data availability geopolitics, the politicisation of climate There is growing recognition of the for biodiversity and is set to become an or “green” agendas and potentially interconnectedness of the two issues, and integral part of the 昀椀nancial system, with record temperatures. the 昀椀rst companies due to report in 2024. 6 Source: Brunswick Group, Eight key elections to watch in 2024, September 2023. 7 Source: WEF, 2024 elections around the world, December 2023. 8 Source: Network for greening the 昀椀nancial system, NGFS Climate Scenarios for central banks and supervisors, June 2021. 9 Source: IMF, Further delaying climate policies will hurt economic growth, October 2022. Allianz Global Investors Sustainability and Stewardship Report 2023 12