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 6 Our KPI-based approach and carbon and adaptation to climate, planetary and 26 Expanding our KPI-driven approach FMO and Skandia )and the framework While the last two decades were dominated intensity metrics covering climate change social risks. This is where the fast-emerging outlined in the white paper, we continue to by ESG scores, we now see clients seeking set out our direction of travel. The ability impact investing market can play a review how best to develop credible and transparent, measurable and tangible KPIs to o昀昀er more KPIs around biodiversity and signi昀椀cant role. robust public market impact strategies. for sustainability. inclusive capitalism will be critical in a new The rapid growth of impact investing 01.5.2.3 AllianzGI as a Increasingly this will mean addressing era of tailoring solutions to meet evolving re昀氀ects its importance in addressing the corporate citizen client requests for customised solutions. client needs. most important environmental and social Corporate sustainability is a cross- In addition to being easy to understand, The market push towards KPIs will allow challenges of our time, while delivering functional endeavour at AllianzGI. KPIs can align investor and portfolio asset managers to di昀昀erentiate on the on 昀椀nancial returns. Our focus is on It is embedded into functions as diverse manager objectives into a single metric. basis of their sustainability data strategy generating a positive impact through as real estate management, culture With distinctive expertise in sustainability as well as their research capabilities. direct and indirect investments across and engagement, HR, and legal data, we aim to lead the way in This will enable them to evolve data private equity and debt, including blended and compliance. developing and activating innovative capture independent of the current 昀椀nance vehicles. Empowering employees is key to sustainability metrics, for example: reliance on purchased data, drive real- Impact investing is well suited to private operating as a responsible business, • Climate change – launched in 2022. time insights supported by technology, markets, where smaller stakeholder and bringing positive impact to the KPIs may include net-zero transition, and apply a complete risk assessment to groups and project-based investments can communities around us and wider society. share of renewable energy used and an entity’s entire value chain. With this enable speci昀椀c and measurable outcomes. In 2023, we focused on encouraging and non-CO 2 GHG emissions. improved measure of sustainability risks, To contribute to the evolving industry supporting colleagues to become more managers will be able to better diversify debate, we published a white paper active in our sustainability journey through • Planetary boundaries – planned for them through investment. Looking ahead in 2023, re昀氀ecting on our own impact 2024. Thematic, biodiversity-focused to 2024, we think technology-led a corporate citizenship programme 25 KPIs may include deforestation, marine innovation, such as our SusIE digital investing in private markets. that is coordinated, systematic and biodiversity, waste reduction and recycling platform, will create new opportunities for We think some of the long-held concerns strategic. This provides local and global share, water efficiency, sustainable raw competitive advantage. about achieving a market rate of return opportunities to contribute to the material sourcing, and species abundance in impact investing are diminishing as the sustainability of our 昀椀rm in addition to and ecosystem services dependencies. Finding a solution with impact opportunities expand. However, a key the continuous progress achieved across • Inclusive capitalism – planned for 2024. At COP 28, it was encouraging to see the challenge to scaling up impact through our own operations. The consistency and Diversity and inclusion KPIs may include evident interest of many stakeholders in public markets lies in the measurement structure of this programme reinforces gender equality, female empowerment developing and scaling new technologies and evaluation of impact. Through our our commitment to being socially and employee satisfaction and wellbeing. and solutions to accelerate mitigation impact investing experience in private accountable to all stakeholders alongside markets (recently demonstrated through our ambition to be an environmentally 25 Source, Allianz Global Investors, Investing for meaningful impact in private markets, July 2023. the SDG Loan Fund collaboration with sustainable business. 26 Source, Allianz Global Investors, SDG Loan Fund mobilizes USD 1.1 billion of investor capital, November 2023. Allianz Global Investors Sustainability and Stewardship Report 2023 17