Allianz response to allegations that its investments negatively impact land rights
and the right to food in developing countries
Business & Human Rights Resource Centre invited Allianz to respond to the following items:
- “New report: European banks fuelling food price volatility and hunger”, Friends of the Earth Europe, 12
Jan 2011:
http://www.foei.org/en/what-we-do/food-sovereignty/latest-news/european-banks-fuelling-food-pricevolatility-and-hunger
“Framing money: How European banks and private finance profit from food speculation and land grabs”,
Friends of the Earth Europe, Jan 2011:
http://www.foei.org/en/resources/publications/pdfs/2012/farming-money
In response, Allianz sent the following statement:
25 Jan 2012
“Food availability is important issue and one that Allianz takes seriously. Globalization, population growth
and increasing urbanization mean food production also has to grow to support these developments.
Investments in the sustainable production, processing and distribution of food are crucial if supply is to
meet future demand and, given the interconnectedness of global (food) markets, international investment
is required.
General remarks:

In our opinion, the main reason for the global food price increase is excess demand; that is a
mismatch between the rate of increase in global food demand and the pace of the increase in supply.

Economic studies (e.g. OECD 2010, Interagency Task Force on Commodities Markets 2008) did not
come to the conclusion that investing in commodities futures has a detrimental impact on commodity
spot prices or volatility.
On the funds managed by AllianzGI:

With its activities in the commodities’ segment, AllianzGI does not seek to produce or amplify any
scarcity. In contrast, our main products in this segment focus on stocks of companies which act in the
commodities sector and benefit from superior and resource-efficient business models. An example for
this is the fund Allianz RCM Global Agricultural Trends.

On behalf of our clients, the funds Allianz Commodities Strategy and Allianz RCM Commodities allow
for participation in the global commodities markets. The investment universe comprises energy,
industrial metals, precious metals and agricultural products. The funds serve to diversify portfolios
and do not aim for higher prices in particular – this all the more evident as short positions are also
possible. Therefore, neither the structure nor the steering of the funds aims at raising agricultural
prices.
On the funds managed by PIMCO:

The commodity index funds managed by PIMCO provide investors with broad, diversified exposure
to the commodities universe and are not intended as a vehicle for any investor to speculate in the
commodities markets. PIMCO believes that commodity index funds provide an important role in
maintaining liquidity in the commodities markets.
Allianz is already preparing for dialogue with selected NGOs and other stakeholders to discuss the need
for investments in food production whilst ensuring no negative impact. Allianz engages with relevant
stakeholders on key topics such as this to further the understanding of the issue itself as well as the
investment mechanism.
Additionally, Allianz directly invests in forest protection in developing and emerging countries. Allianz
Climate Solutions has acquired a 10 percent share in Wildlife Works Carbon LLC (WWC), a developer of
REDD projects (Reducing Emissions from Deforestation and Forest Degradation). The first project is a
208,000 hectare forest in South-East Kenya which acts as a corridor between two national parks and is
home to a number of high conservation mammal species. REDD projects as an attractive investment
option since they combine a high level of social and ecological responsibility with competitive returns for
investors. https://www.allianz.com/en/press/news/commitment_news/environment/news_2011-1010.html”