01 01.5 Sustainability governance continued Principles 1 2 5 Introduction 01.1 In conversation with Tobias Pross and Matt Christensen 01.2 About AllianzGI Linking sustainability with remuneration All review processes are based on the regulatory 01.3 What sustainable investing Our International Management Group – comprising requirements and developments in the jurisdictions in means to us senior functional heads from across the firm – has which we operate. To be at the forefront of sustainability 01.4 Acting on climate risks sustainability embedded into its goals through the regulation, we set up a separate global regulation and opportunities firmwide global solidarity goals. A specific sustainability workstream to implement sustainability-related 01.5 Sustainability governance goal was introduced in 2021 and will be implemented regulation into our investment approach. This has a 01.6 Shaping sustainable investing in 2022. This goal targets sustainability achievement focus on implementation projects to comply with the with our clients as measured by our delivery of above peer average EU Sustainable Finance Disclosure Regulation (SFDR) PRI results. Achievement of the global solidarity goals (see page 23) as well as Markets in Financial Instruments 02 influences the firmwide remuneration pool. Directive (MiFID) II sustainability preferences as part of Sustainable investing the suitability assessment. 03 AllianzGI functions are also embedding sustainability In 2021, we commissioned an audit to review our Active stewardship considerations into team and individual goals. For sustainability policies and processes for the first time. instance, the investment platform has implemented This was performed by an external audit firm with the 04 goals that specifically reflect the sustainability journey remit to identify potential weaknesses in our reporting AllianzGI as a sustainable business and focus areas of each team. and processes. The Sustainable Investing Working 05 Review and assurance Group discussed the key findings and recommended Appendix The credibility of our approach, as reflected in our actions to the Executive Committee. internal processes and external reporting, is crucial to AllianzGI’s Executive Committee reviewed and ensure trust in our company. We have sound processes approved this Sustainability and Stewardship Report in place to review ESG-related policies and procedures 2021. In doing so, they consider the report to provide a at least annually to ensure continuous improvement. fair and balanced view of our approach to sustainability In 2021, this included strengthening our exclusion policy investing and stewardship activities. Initial input was (see page 22), climate policy statement and proxy provided by the respective teams responsible for the voting policy (see page 51). We also reviewed our various activities, with overall review by the Sustainability processes to meet the requirements of sustainability and Impact Investing team given the changes in our labels for our funds when it comes to engagement. reporting structure. This review process was considered Review processes are led by our Sustainable Investment the most effective in consolidating our sustainability Office and Stewardship team. In 2021, we developed and stewardship reporting. our Global Sustainability Risk Policy and established a Reputational Risk Working Group to ensure that we analyse emerging sustainability-related reputational risks in a timely manner.