01 Our vision of 02 Sustainable 03 Active 04 Strengthening sustainability 05 Appendices sustainability investing stewardship in our operations 02.6 Sustainable investing categories Principle 4 7 How impact investing strategy, due diligence, measurement and risk-return pro昀椀le for all stakeholders by on 昀椀nancing companies active in climate delivers change management. This enables co-creation blending public and development capital mitigation, climate adaptation and In developed markets, we direct 昀椀nancing across a speci昀椀c asset class, its portfolio together with commercial capital into risk- environmental sustainability-related towards companies and products whose managers and the Impact Investing team. tiered structures. sectors in Asia. core business is focused on providing Together with a third-party provider, Blended debt We are developing a pipeline of impact solutions to society’s most challenging we set up an impact data management During 2023, we announced a strategies in both private debt and equity, problems, while delivering targeted system to improve the collation, analysis USD 1.1 billion SDG Loan Fund. One of and across developed and emerging returns to investors. We leverage our and monitoring of the impact KPI data the largest blended funds in the market to markets. In 2024, we are launching an impact framework to identify, measure that we collect from underlying investees. date, it was jointly conceived by AllianzGI impact private credit strategy focused and manage impacts. The system helps inform engagement and FMO, the Dutch Development Bank. on developed markets, which will be In emerging markets, we use blended with underlying portfolio companies The fund bene昀椀ts from multiple layers of one of the few pureplay impact debt 昀椀nance to mobilise large-scale capital and fund managers in terms of impact de-risking, including a guarantee from the strategies. It will fully leverage our towards investments that are in line performance and enhances impact MacArthur Foundation, which enables us impact framework and we aim for it to be with the SDGs. This enables institutional reporting to clients. to mobilise large-scale institutional capital classi昀椀ed as EU SFDR Article 9. A result of investors to access emerging markets As investors are increasingly focused into the structure. the co-creation across our Private Credit through risk-tiered structures, many of on non-昀椀nancial returns and KPIs, our and Impact Investing teams, it will have which will have 昀椀rst loss protection to capabilities and strengths enable us to Blended equity both an environmental and social focus. deliver a potentially attractive risk-return embed impact considerations across The Emerging Market Climate Action Fund In addition, we are in the process and sustainability proposition. the investment cycle. (EMCAF) held its third closing at the end of developing an impact private equity We have progressed from being a 昀椀rst of 2023, with new commitments by the co-investment strategy that also focuses mover in blended 昀椀nance to delivering Increasing opportunity with German Federal Ministry for Economic on developed markets. a broader pipeline of credible impact blended 昀椀nance A昀昀airs and Climate Action represented We continue to build our blended 昀椀nance strategies across both emerging Blended 昀椀nance is a technique used to by German bank, KfW. A fourth closing o昀昀ering with a Paris-aligned debt fund and developed markets and across attract large-scale commercial capital is expected in March 2024, onboarding focused on emerging markets. We will asset classes. to emerging markets, with a focus on the UK government as an investor in the continue to engage with the broader sectors that contribute towards social and junior equity tranche of the fund and impact investing ecosystem, which Building our capability economic growth, such as infrastructure, bringing the EMCAF total commitment includes contributing to the development During 2023, we built up our impact energy and agribusiness. size to around EUR 385 million. We expect of the CFA UK Level 4 Certi昀椀cate in Impact investing personnel, adding private Blended 昀椀nance generally includes the 昀椀nal closing for this fund, which has Investing, alongside industry impact credit and private equity professionals a combination of commercial (or already made multiple investments, in convergence e昀昀orts. speci昀椀cally dedicated to impact private) capital in a senior position and Q4 2024. A recent investment is GEF strategies. We additionally have impact development (or public) capital in a junior South Asia Growth Fund III, a mid-market specialists with expertise in impact position. The goal is to achieve an attractive private equity growth strategy focused Allianz Global Investors Sustainability and Stewardship Report 2023 37