01 Our vision of 02 Sustainable 03 Active 04 Strengthening sustainability 05 Appendices sustainability investing stewardship in our operations 03.3 Engagement in numbers Principle 7 9 Engagement by topic Our engagement priorities per topic Engagement activities in 2023 covered a broad range of topics. In 36% of Social risks & opportunities Environmental risks cases, we spoke to companies about • Employee engagement, 18% 31% & opportunities corporate governance, business conduct diversity & inclusion • Climate change & GHG emissions and transparency issues – a similar • Human rights & community relations • Physical impacts of climate change percentage to 2022. Our increased focus • Labour practices, gender/ethnic 1,055 Topics • Biodiversity, deforestation & on environmental and social topics in line pay gap 1,540 Sub-topics water management with our three guiding themes continued • Employee health & safety • Environmental incidents to be evident, with 73% of engagements touching on either topic (up from 69% in 2022). Where we did not see su昀케cient Corporate governance Strategy & business model progress, or wanted to follow up on • Executive compensation 29% 10% • Supply chain management recent developments, we engaged more • Board composition/independence • Corporate strategy/purpose than once. This occurred with 21% of the • Corporate governance practices 12% • Product design, lifecycle companies engaged, slightly up from management & circular economy 19% in 2022. Other • Materials sourcing & efficiency Outcomes recorded • Transparency and disclosure We registered 51 stewardship outcomes • Capital management where companies took steps that we had • Business ethics explicitly referenced during engagements (2022: 38). Some cases involved multi-year List of sub-topics is not comprehensive. engagement. Executive remuneration Source: Allianz Global Investors, as at 31 December 2023. and governance issues were the focus in around 70% of these cases. Allianz Global Investors Sustainability and Stewardship Report 2023 48