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 34 • Measurement and management: a set of sustainable minimum exclusions, what we believe to be the most promising 02.6.3 Impact-focused Increasing numbers of investors are setting The impact will be measured and as well as the E, S and G factors of companies within a topic. SDG-aligned their sights beyond pure 昀椀nancial returns managed on a “best efforts basis” and investee companies being analysed. investing funnels capital towards – and even beyond ESG screening-based reported to validate each strategy. In addition, PAIs are analysed to avoid companies that we call “key enablers” – approaches, including risk management. AllianzGI’s impact investments can be companies with poor ESG practices and companies that are providing solutions We support investors who want to see a accessed through private markets (eg, those that cause signi昀椀cant harm. to the world’s greatest challenges. positive change for the planet and society private equity impact fund of funds) or AllianzGI applies a proprietary SDG In addition, we prefer to allocate to – measured against speci昀椀c goals, public markets (eg, green bonds). Impact- framework that maps company activities companies that provide goods or services such as the UN Sustainable Development focused strategies extend to our blended to speci昀椀c SDGs and checks for good that allow others to reduce or minimise Goals (UN SDGs) – while generating 昀椀nance approaches, where capital from governance and alignment with their footprint and therefore have a a 昀椀nancial return. commercial investors is combined with environmental and social objectives. multiplier e昀昀ect. They not only manage development capital and public sector AllianzGI’s SDG-aligned funds often follow their own footprints, but have a potentially Impact investing strategies funds to generate environmental and our thematic investment approach, built on much larger positive e昀昀ect on others. Our impact-focused strategies across social outcomes, especially in emerging a solid understanding of secular drivers and Green bonds public and private asset classes enable markets where commercial investors the ability to identify companies with long- As de昀椀ned by the International Capital clients to maximise their exposure bene昀椀t from de-risking. term potential. We believe these companies Markets Association, green bonds are to positive environmental and social have greater growth potential, are more any type of bond instrument where the outcomes de昀椀ned by three core beliefs: 02.6.3.1 Impact-focused resilient to macroeconomic and political proceeds will be exclusively applied to • Intentionality: The intention of a investing in public markets volatility and bene昀椀t from regulatory 昀椀nance or re-昀椀nance, in part or in full, new strategy and its investments is to UN SDGs tailwinds. In 2023, we launched our 昀椀rst and/or existing eligible green projects, contribute to measurable positive social UN SDG-aligned strategies often adopt a systematic SDG-aligned global equity which are aligned with the four core and/or environmental value while thematic investment approach. We invest strategy, which provides our investors with components of the Green Bond Principles. delivering financial returns. in companies that exhibit a certain level the bene昀椀ts of broad diversi昀椀cation while Green bonds can support the pathway to • Evidence-based: Impact investing of contribution towards one or more addressing multiple SDGs. a more sustainable future by mobilising needs to use evidence and data, where of the UN SDGs. Our assessment is Seeking out key enablers of the SDGs capital markets to deliver environmental available, to drive intelligent investment both quantitative and qualitative, and We actively select companies based on bene昀椀ts. On a worldwide scale, green design, thereby increasing confidence a quarterly report highlighting SDG a combination of fundamental research bonds have proven to be a multifaceted that the investment would contribute to contributions on an individual strategy and the analysis of the contribution of model for success, attracting a growing social and environmental benefits. level is available. Our approach applies each company to the SDGs, seeking out number of investors seeking sustainable, low carbon investment opportunities. 34 Note that “sustainability-focused” and “impact-focused” are Allianz GIobal Investors product categories. Reference to a fund being within them does not indicate that fund has a “Sustainability Focus” or “Sustainability Impact” label under the United Kingdom’s Sustainability Disclosure Requirements (SDR). Allianz Global Investors Sustainability and Stewardship Report 2023 35