01 Our vision of 02 Sustainable 03 Active 04 Strengthening sustainability 05 Appendices sustainability investing stewardship in our operations 03.4 Engagement outcomes Principle 7 9 Priority biodiversity issues and Biodiversity engagement framework relevant KPIs Priority Relevant sectors KPIs for assessment Biodiversity loss driver addressed The engagement framework illustrates issues our expectations of investees in 昀椀ve Regenerative Agriculture & food, food retailers • Target and capital allocation Habitat loss/land use change; areas: sound governance, thorough agriculture • Metrics to measure regenerative agriculture climate; pollution assessments and metrics, strong • Percentage of the supply chain/goods sourced from commitment, comprehensive actions and regenerative agriculture transparent disclosure. • Incentives for farmers to adopt regenerative agriculture We discussed biodiversity in engagements Deforestation Companies with agricultural • No-deforestation commitment Habitat loss/land use with over 50 companies in sectors that commodities sourcing • Percentage of sustainably sourced commodities change; climate have a high impact or dependency on (eg, wood, palm oil, soy, • Percentage of supply chain or commodities sourced cocoa, rubber, beef) that are covered by a traceability system biodiversity, including agrifood, paper and • Suppliers with no-deforestation commitment forestry, utilities, energy, chemicals, metals • Engagement with suppliers and mining. Water Food & beverage, metal & • Water risk assessment Resource depletion; pollution mining, textile, chemicals, • Percentage of operations in water stress areas water utility • Water consumption reduction targets • Speci昀椀c water management in water stress area Chemical Chemical, packaging, • Reporting pollutants Resource depletion; pollution and plastics construction, retail, • Reduction targets for pollutants pollution consumer goods • Recycling and reducing plastics with targets Land Metals & mining, energy, utilities, • Measure of biodiversity impact around land Habitat loss/land use change footprint construction engineering under operations • Location and areas of land disturbed • Resource depletion; pollution • Location and areas of land restored and conserved Source: Allianz Global Investors, 2023. Allianz Global Investors Sustainability and Stewardship Report 2023 52