01 Our vision of 02 Sustainable 03 Active 04 Strengthening sustainability 05 Appendices sustainability investing stewardship in our operations 01.4 A year of achievements Principle 2 4 The ambition to become a “sustainability Key 2023 developments Private markets under the spotlight. shaper” remains our guiding principle, include: Our new SDG Loan Fund successfully and we structure our work around Sustainable investment product range mobilised USD 1.1 billion in investor three pivotal themes – climate change, extension. Our focus on providing capital to advance the United As an active long-term planetary boundaries and guidance on sustainable investment Nations Sustainable Development investor, we believe inclusive capitalism. solutions is part of a wider commitment Goals (UN SDGs) in emerging and positioning sustainability In 2023, our speci昀椀c focus areas included to clients as we look to meet growing frontier markets, using an innovative net zero (climate change), biodiversity client demand and develop strong and “blended 昀椀nance” model. at the core of our (planetary boundaries) and human rights enduring relationships. We now have over Launch of our 昀椀rst social-focused equity business offers significant (inclusive capitalism) amid challenging 200 sustainable funds, classi昀椀ed as Article strategy. Contributing to our inclusive opportunities for our clients, regulations and a volatile market context. 8 or 9 according to the European Union capitalism theme, we have launched a supports the goals of our The “ESG backlash”, largely from the (EU) regulation, and accounting for 61% fund that targets companies with superior US, but also touching on Europe, was of our total mutual fund AUM. performance on social issues, such as other stakeholders and a response to the overpromising of New investment approaches. human capital, supply chain management puts us on a sustainable sustainability over a short-term horizon Capitalising on our successful key and employee rights. footing for the future. and the relative underperformance of performance indicator (KPI) approach Proprietary sustainable investing certain sustainable funds industry-wide. targeting decarbonisation, we introduced data platform. Our in-house digital This year, we have made Our approach is guided by pragmatism two new sustainable investment sustainability platform – the Sustainability progress on all fronts.” and we welcome a renewed focus on the approaches in 2023. Our ESG score Insights Engine (SusIE) – was launched in original function of ESG in identifying approach targets a higher weighted 2022 as an internal tool to enable ESG- Tobias Pross risk materiality. average ESG score in comparison to the informed investment decision-making. Chief Executive O昀케cer benchmark and is applied to emerging In 2023, SusIE added a new module to market strategies. Our KPI sustainable provide engagement activity updates investment share approach directly to our investment teams and highlight leverages our proprietary methodology targeted outcomes for investee holdings to identify sustainable investments, that can add important perspectives to according to the EU’s Sustainable Finance investment decision-making. Disclosure Regulation (SFDR), and meet See page 26 for more information increasing client demand. on SusIE. Allianz Global Investors Sustainability and Stewardship Report 2023 09