01 01.6 Shaping sustainable investing with our clients continued Principle 6 Introduction 01.1 In conversation with Tobias Pross and Matt Christensen 01.2 About AllianzGI Increasing transparency of 01.3 W hat sustainable investing Shaping pathways for a sustainable future sustainable investments means to us With the growth in sustainable investing, clients 01.4 Acting on climate risks Funding the world’s largest offshore windfarm understandably want increased transparency around and opportunities the performance and impact of these investments. 01.5 Sustainability governance Regulators are reinforcing this drive. 01.6 Shaping sustainable investing with our clients In December 2021, Allianz Capital Partners (ACP), “We are very pleased to be AllianzGI has provided a standard monthly reporting on behalf of Allianz Insurance Companies, signed partnering with BASF on this offering for sustainable investments to its clients since 02 an agreement to purchase a 25.2% stake in the 2020. Depending on the investment strategy, clients Sustainable investing Hollandse Kust Zuid (HKZ) windfarm. This was opportunity. BASF is providing can view their sustainable investments compared to 03 the first offshore wind and first equity renewables a long-term fixed-price power- the product benchmark. Our reporting contains carbon Active stewardship investment of Allianz in the Netherlands. Once purchasing agreement for the emissions information that enables investors to see fully operational, HKZ will be the largest offshore project which will ensure a strong the carbon footprint of their portfolios in absolute and 04 windfarm in the world with 140 wind turbines and relative terms as well as an overview of the engagement AllianzGI as a sustainable business a total installed capacity of 1.5GW. The project is contracted revenue stream for activities relevant to the fund. located in the North Sea and is expected to become many years to come.” 05 fully operational in 2023. As agreed in a long-term To respond to the rising client demand for sustainability Appendix fixed-price corporate power-purchasing agreement, Andrew Cox information and reporting, we are enhancing our German chemical company BASF will receive Co-Head of Infrastructure at reporting capabilities to support evolving regulatory most of the power originating from the overall Allianz Capital Partners. requirements. From the end of 2022, we will include 49.5% share of Allianz and BASF in HKZ. Allianz’s additional sustainability information such as ESG ratings equity investments in the renewable energy sector, as well as EU taxonomy considerations. With the revamp managed by ACP, currently amount to over 100 of our reporting infrastructure, institutional clients wind parks and solar farms across Europe and the and distributors will be able to access all relevant US, generating around 5TWh in clean energy for sustainable information digitally via a dedicated client more than two million people a year. reporting portal. The application will allow continuous enhancements as sustainability reporting requirements 5TWh and client needs evolve. clean energy generated for more than Our clients’ stewardship and investment principles are the basis for how we manage their portfolios, and we 2 million people evolve our processes and client reporting in line with per year their needs. For example, in our conversations with some of our large clients, we observed that they would like to receive more granular reporting of engagement conversations with companies held in portfolios. As of 2022, we will provide this detail during regular review meetings.