Indicator Type of indicator Dependent on Gateway to Disclosure Subsection PRI Principle ISP 32 PLUS N/A N/A PUBLIC Strategy General Describe the impact of climate-related risks and opportunities on your organization's investment strategy, products (where relevant) and financial planning. Our Response – Active company dialogue, joining forces and targeted engagement As a part of our support for TCFD, we recognise the necessity for a broader change and alignment in the investment industry around climate risks and opportunities. We believe that this can bring several long-term benefits to our investors: more attention and efforts from investees due to more aligned climate expectations, more precise measurement through clear requirements on climate scenarios that meet investor needs, and more refined climate investment frameworks. Concretely, Allianz Global Investors has been a very active member of the Paris Aligned Investment Initiative, which has been launched by the Institutional Investors Group on Climate Change (IIGCC) to bring together some of the world’s largest asset owners and asset managers for the development of a “Net Zero Investment Framework”. We are also joining forces with other asset owners in encouraging companies to implement such pathways. Our participation in the engagement platform Climate Action 100+, the Institutional Investor Group's on Climate Change, as well as the Principles for Responsible Investment (PRI) connects us with like-minded investors and offers platforms for collaborative engagement. Our Response – Climate scenarios We are committed to advancing on our climate journey, where we are taking the necessary steps and actions to further innovate and enhance our climate investment capabilities. To be able to account for climate change in our analysis, we are looking at technical ways how to enable access for climate scenario assessment by our portfolio managers and analysts to enhance their active research process with a quantitative climate perspective. While these efforts are only in an early iteration, it already allows us to obtain valuable insights to assess the potential climate risks of our investees and portfolio profiles surrounding climate change mitigation and adaptation but it is our aim to continously develop and enhance our climate capabilities further adjusting to the latest advancements in climate science investments. A key pillar in our philosophy surrounding climate investments today is that the public corporate disclosures on climate are not yet highly developed nor in-depth enough to be sufficient for simple rules-based strategies. For this reason, we believe that there exist market inefficiencies on climate risks and opportunities, for which active research and corporate engagement are necessary. That is why we do not aim to rely solely on the climate data used by us but rather have it inform our portfolio managers and analysts in their investment analysis and engagement efforts. For mainstream investment strategies, all AllianzGI portfolio managers have access to the ESG and climate risk research including intrinsic issuer ESG ratings. For many sectors, climate change already poses a material consideration for fundamental analysts and, as such, is reflected in the sector frameworks (capturing material ESG risks) and stock ratings used to inform investment decisions.. 63