01 Our vision of 02 Sustainable 03 Active 04 Strengthening sustainability 05 Appendices sustainability investing stewardship in our operations 02.4 Climate-related risks and opportunities Principle 4 Climate change is anticipated to have a Integrating climate risks and Climate strategy and clients 3. In addition, risklab’ s Climate Navigator signi昀椀cant impact on worldwide economies opportunities in investment processes As a member of the Net Zero Asset provides a forward-looking approach and the various areas in which AllianzGI We continue to build our expertise in Managers initiative (NZAMi), in managing for measuring the impact on expected operates. We have identi昀椀ed a wide identifying, de昀椀ning and measuring our clients’ assets, we are shaping the future asset class returns, based on range of transitional and physical risks these climate-related opportunities pathway towards net-zero GHG emissions macro as well as company-speci昀椀c and opportunities associated with and risks. This is critical to our ability to by 2050 in line with global e昀昀orts to limit changes across NGFS climate climate change across short, medium and help guide our clients on the possible warming to 1.5°C as outlined in the Paris change scenarios. long-term timeframes. We base our 30 outcomes of individual investments, Agreement. In so doing, we enable 4. W e develop tailored climate-related approach to climate-related risks and portfolios or even broader asset classes. our clients to re昀氀ect climate risks and investment solutions, answering opportunities on the understanding that A high level of connectivity between opportunities in their holdings: speci昀椀c institutional client needs to they could have signi昀椀cant 昀椀nancial policy, data, research and stewardship, 1. A longside mainstream strategies, align their portfolios while considering implications, thereby in昀氀uencing our and collaboration with Investments, we o昀昀er climate thematic and impact- coal exclusions, transition exposure corporate, operational and investment Distribution, Legal and Compliance and driven opportunities, such as green and/or emissions reduction. endeavours. We recognise that these other functions, provides the platform for: bonds, climate transition equity and climate-related factors may increasingly • Offering climate investment solutions to private markets renewable energy a昀昀ect the value of our portfolios as clients supported by thorough research investments. These specialised time progresses. and methodologies. assets can help to align an asset As an asset manager, we deeply integrate • Ensuring policies are robust and current, owner’s portfolio with climate sustainability considerations, especially such as our Coal Exclusion Policy. transition targets. concerning climate change, into every 2. Risklab o昀昀 ers comprehensive portfolio aspect of our investment approach, • Collaborating with investment analyses, which include GHG emissions, processes, product development and teams and asset owner clients to transition scores, physical risks, implied business operations. decarbonise portfolios. temperature rise and exposure to • Engaging with companies to establish fossil fuels. interim targets and facilitate progress towards driving real economy transition. For more information see: Climate Policy Framework and annual TCFD report on our website. 30 Source: United Nations Climate Change, The Paris Agreement, December 2015. Allianz Global Investors Sustainability and Stewardship Report 2023 28