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 03.4.3 Thematic engagement: 1. Human rights policy: a clear 5. Communication and reporting: human rights commitment regarding the respect a full disclosure on human A combination of global crises, high-pro昀椀le of human rights at the company and rights due diligence, including worker rights violations and regulatory across the supply chain, with a clear results of audits and remediation change has put companies in the spotlight governance structure. measures implemented. in relation to ensuring workers are protected 2. Risk assessment: a detailed and For each of these 昀椀ve pillars, we throughout the supply chain. In 2023, quanti昀椀ed risk assessment by country, developed relevant questions that all we made human rights a particular focus organisation, activity and product. companies should be able to answer. topic of our engagement and will continue 3. Prevention, mitigation and remediation They create a framework through to prioritise it in 2024. measures: these measures should be which companies can demonstrate Our proprietary framework for engaging clearly identi昀椀ed in the risk assessment. the materiality of human rights in their with companies on human rights in supply 4. Performance tracking and monitoring: supply chains. chains draws from the OECD due diligence periodic audits of human rights guidance for responsible business performance using speci昀椀c KPIs. We summarised our engagement conduct and is based on the 昀椀ve pillars approach and expectations of of human rights action that we look for companies on human rights in companies: issues in supply chains in our thematic paper. Sample questions from our human rights engagement framework Human rights – the weakest link Human rights policy Risk assessment Prevention, Performance tracking Communication in supply chains? mitigation and and monitoring and reporting remediation measures What does the company Has the company Has the company Has the company To what extent is the say publicly about its identi昀椀ed and disclosed integrated human implemented company transparent commitment with respect its actual and potential rights issues into its risk mandatory audits regarding its human to human rights? human rights risks by management and within for all new suppliers? rights objectives type and correspondent suppliers’ contracts? and outcomes? risk level? Source: Allianz Global Investors, 2023. Allianz Global Investors Sustainability and Stewardship Report 2023 53