01 Our vision of 02 Sustainable 03 Active 04 Strengthening sustainability 05 Appendices sustainability investing stewardship in our operations 03.1 Developing our engagement strategy Principle 2 7 9 As part of our ambition to be a Thematic engagement: In 2023, we Collaborative engagement: 2023 highlights sustainability shaper, our engagement deepened and broadened our thematic During the year, we continued to work strategy takes an active ownership engagement approach aligned to our across our three sustainability themes and 481 active approach and follows an activist three sustainability themes – climate signi昀椀cantly stepped up our collaborative engagements sustainability orientation. In 2023, change, planetary boundaries and work. We joined or co-founded targeted (2022: 438) we signi昀椀cantly built out our thematic inclusive capitalism. The focus of our collaborative engagement initiatives that and collaborative engagement and thematic engagements was driven by resonate with our thematic focus and Engaged in 32 increased our engagement activity across topics where we observe particular expanded our activities within existing locations globally all listed asset classes, with a particular interest from our clients or increased initiatives. In 2023, Marie-Sybille Connan, focus on corporate credit. We also regulatory requirements, in particular Senior Stewardship Analyst, co-chaired (2022: 28) maintained our risk-based approach to net-zero alignment, biodiversity and the 30% Club Investor Group in France. 374 companies engagement for large holdings. human rights. We also co-founded the 30% Club Investor With our investee companies, we address For example, our climate change work Group Germany, which is co-chaired by engaged material topics of particular importance to included a sectoral net-zero focus on Antje Stobbe, Head of Stewardship, in its (2022: 355) us as a 昀椀rm. We de昀椀ne clear engagement large oil companies, utilities and inception year. We intensi昀椀ed our work objectives and then assess whether 昀椀nancials. Within the planetary with the Institutional Investors Group companies have implemented our boundaries theme, we developed our on Climate Change (IIGCC) Net Zero Source: Allianz Global Investors, as at requirements. When necessary, we escalate proprietary biodiversity engagement Engagement Initiative (NZEI), as well as 31 December 2023. the Principles for Responsible Investment concerns, for example by collaborating framework (BEF) and engaged with (PRI) Advance Coalition on Human Rights. with other investors, and now also by pre- 22 companies across di昀昀erent sectors. We are also a co-founding member of announcing votes and co-昀椀ling shareholder Under the umbrella of our inclusive Nature Action 100 (see page 58 for the resolutions at annual general meetings capitalism theme, our engagement focus complete list). (AGMs). We recognise the importance was on human rights in the supply chain, of co-昀椀ling to advance sustainability as well as gender diversity. Within these To scale our engagement and be more standards, despite declining levels of thematic focus areas, we prioritised e昀昀ective in the major markets in which support for shareholder resolutions in the engagements based on the size of our we have holdings, we introduced a tool US over the last two years. During the year, holdings per market or portfolio, and the to assess the legal framework for broader we therefore stepped up our activity and priorities of speci昀椀c clients or funds. collaborative engagement in 2023. have set out an internal process to facilitate See section 03.4 to read more about See section 03.5. co-昀椀ling. We expect to be able to report on our thematic engagements. concrete company engagement next year. Allianz Global Investors Sustainability and Stewardship Report 2023 40