01 03.5 Influencing companies through proxy voting continued Principles 5 7 8 12 Introduction 02 Sustainable investing 03 Review of voting policies and of the Amendments to the Global Corporate Governance Active stewardship voting process Guidelines are approved by the Global Proxy Voting We review our Global Corporate Governance Guidelines Committee. The Committee considers proposals for 03.1 Our engagement approach change as raised by the Investment and Stewardship 03.2 Engagement outcomes and related policies at least annually, considering teams. In 2021, a notable change to our guidelines by theme changes in market developments, vote turnout, included voting rules on “Say on Climate” resolutions. 03.3 Collaborative engagements regulatory amendments and changes in expectation As this type of proposal gains traction in some markets, 03.4 E scalation where initial levels of our clients. We include feedback from our we decided to update our guidelines to be more engagement is not enough service provider on the applicability of our voting policy transparent and detailed about our approach. 03.5 Influencing companies through in the review process. All proposed amendments to proxy voting the guidelines and voting policy require consultation Securities lending 03.6 Conflicts of interest with our investment platform, involving equity portfolio Securities lending can play a role in enhancing returns 03.7 Industry engagement managers in all of our locations globally. Input from where it is deemed appropriate. We do not actively and commitments our investment teams enables us to create a nuanced engage in securities lending on behalf of either our approach that combines global best practice standards mutual funds or assets for institutional clients, whether 04 for corporate governance with the knowledge of via an in-house securities lending desk or a third-party AllianzGI as a sustainable business how these can be best applied and promoted in local markets. agency. However, where an individual institutional 05 client requests us to facilitate securities lending Appendix through external agency lending – for example via an independently selected custodian – we strive to support this activity within our operational process frameworks. Select changes to our Global Corporate Governance Guidelines in 2021 Issue New policy Reasons for the change Say on Climate Developed voting guidelines for Say on Climate resolutions and Management resolutions specified criteria to be able to support these resolutions on climate were tabled for the first time Diversity Included ethnic diversity aspect into our US voting policy when Developments in the US evaluating director elections in 2020 Remuneration Developed rules on remuneration policies whenever companies Covid-19 pandemic received substantial direct state aid, recorded substantial lay- offs, or cut dividends (not prescribed by regulators) as a result of the Covid-19 pandemic