01 Our vision of 02 Sustainable 03 Active 04 Strengthening sustainability 05 Appendices sustainability investing stewardship in our operations 02.3 Sustainability methodologies and analytics Principle 4 5 8 Throughout 2023, we continued re昀椀ning 02.3.1 Leveraging ESG data our methodologies to better manage We believe ESG data is critical in achieving How we select and monitor data providers risks for our clients in a time of rapid strong conviction across all styles of change within the data, market and sustainable investing. Our selection process for third-party They might alert users to sudden regulatory landscape. Sustainability is a data providers highlights data capture, coverage drops or data inconsistencies complex topic; fortunately, proprietary We use multiple third-party providers raw data points, data coverage, data compared with expected values (eg, tools such as SusIE are helping our and complement this with internal transparency, and quantitative and where the carbon footprint data is clients to bene昀椀t from the ongoing information derived from our own qualitative methodologies. We also inconsistent with the actual reported enhancements in identifying and investment and sustainability research assess how the data is documented and data of the corporate). These issues can measuring portfolio risks. We recognise processes. The long-term plan is for our the resources available for client support. then be examined and resolved. change will continue to be a constant in proprietary tools and research to be sustainability, which is why we continue the primary driver of our ESG insights Selected data is sourced from providers With the support of our Data & our long-term commitment to invest in a and investment decision-making. directly into our internal cloud-based Technology team, we monitor how robust infrastructure to support clients in For instance, the materiality assessment “data lake” managed by our Data & the data quality evolves over time meeting their investment goals. from our sustainability research is a core Technology team. Each dataset has (eg, coverage, expected values, format Our Sustainability Methodologies & input for our proprietary sustainability an “identity card” and is subject to a of deliveries) to capture any potential Analytics (SMA) team is responsible rating system. mandatory quality control process prior integrity issues. for our sustainability data strategy, Another key challenge during the year to onboarding. We continuously monitor the quality the proprietary sustainability rating has been responding to highly tailored This information is collected by internal of key service providers through robust methodology used in the SRI Best-in- client requests, such as multi-provider stakeholders identi昀椀ed as data owners service level agreements or operating class approach (see page 34) and the sustainability exclusions or biodiversity risk and data stewards. They oversee, memoranda, as well as frequent development of the analytics dataset for exposure assessments. At the same time, implement and document the controls meetings. In addition, our independent climate change, planetary boundaries this is an opportunity to work with new applied on data 昀氀ows and deliveries. risk management function reviews and inclusive capitalism. They also providers, themes and methodologies. the monitoring procedures of these focus on KPI target-setting and SDG Indeed, we accelerated our work on key service provider relationships and measurement. Ultimately, the team biodiversity and are now working on ensures alignment with our key vendor empowers sustainable investment aligning with standards around natural and outsourcing provider policies. decisions through data-driven insights capital data availability, such as the with SusIE. Taskforce on Nature-related Financial Disclosures (TNFD). Allianz Global Investors Sustainability and Stewardship Report 2023 25