01 Our vision of 02 Sustainable 03 Active 04 Strengthening sustainability 05 Appendices sustainability investing stewardship in our operations 04.3 Ensuring responsible business conduct Principle 3 5 Our licence to operate is built on the trust The 昀椀rst line of defence is carried out Reinforcing the second line strategy, risk management and data that our investors, employees and other by business functions in their day-to- As part of Allianz Group, we are subject to frameworks. The SGC is responsible for the stakeholders place in our performance day activities. They are responsible for its governance requirements relating overall consistency of frameworks across and integrity. designing and implementing adequate to environmental, social and governance asset classes. It oversees sustainability/ A key component is the personal ethical controls to manage risks and returns (ESG) matters. corporate sustainability indicators as targets behaviour of all of our employees relating to their activities. To support Allianz has increased the importance for AllianzGI. It has reporting obligations to worldwide. Their actions are guided by employees in undertaking these of sustainability with the ambition to the Legal, Compliance and Risk Committee global policies and ethical standards, responsibilities, global compliance training fully integrate sustainability across the and the Executive Committee. as well as a robust and mature internal is made available and was successfully company. The Board of Management at Governance & Business Analytics control framework (Three Lines of completed by 100% of employees across Allianz SE is ultimately responsible for comprises a team that has moved from Defence) that ensures employees all locations in 2023. all matters relating to sustainability and our Sustainable Investing area. This new manage business ethically and in The second line of defence provides is supported by the Group Sustainability function reinforces our governance in compliance with internal procedures independent oversight of employees’ Board (formerly known as the ESG Board). relation to regulatory and reputational risk and regulatory requirements. adherence to the company’s regulatory In 2023, AllianzGI evolved its sustainability and strengthens the segregation of duties requirements and internal policies, as governance to improve operations in respect to the independent assurance 04.3.1 Three Lines of well as the risk-taking and controls and resilience and future-proof the of data quality, analytics and reporting. Defence framework conducted by the 昀椀rst line. It is carried out organisation in relation to the developing The team’s responsibilities include: Responsibility for ethical business conduct by the Legal and Compliance and Risk regulatory environment. To do this, creating a 昀椀rst-class independence model and risk management is an integral part Management teams, which oversee and we took two major steps forward, for sustainability; leading integration with of our business processes that spans the advise the 昀椀rst line of defence. establishing a dedicated Sustainability consistent and appropriate processes entire value chain, from client onboarding The third line of defence is performed Governance Committee (SGC) and across the 昀椀rm to meet good governance; and portfolio risk management to by Internal Audit, which independently introducing a new, independent function, and complying with sustainable 昀椀nance ensuring personal information is treated assesses the governance and internal Governance & Business Analytics. regulation requirements and oversight of with the utmost care. control systems and processes, as well sustainability disclosures. It also uses ESG as compliance with risk principles, The SGC is a cross-functional body data and advanced technology to develop Risks are addressed as part of an performs quality reviews of risk processes that streamlines decision-making and sustainable investing methodologies overarching reporting and controlling and tests adherence to business standards, decides on a range of sustainability and solutions. framework. This covers qualitative and including the internal control framework. topics, including corporate and quantitative risks for each function along product sustainability approaches and three lines of defence. The distinction sustainability frameworks relating to between the di昀昀erent lines of defence is principle-based and determined by activity: Allianz Global Investors Sustainability and Stewardship Report 2023 82