01 02.3 Sustainability risk management Principles 4 7 Introduction 02 Sustainable investing 02.1 Building our approach to ESG risk-assessed In line with European regulation, AllianzGI considers sustainable investing AllianzGI ensures that we consider sustainability risks sustainability risks and PAIs of prospective and 02.2 Sustainability research and in our investment processes across all the assets we active investments. data and analytics – our strong manage globally. All our investment strategies are ESG foundation • For publicly listed asset classes we have implemented 02.3 Sustainability risk management risk-assessed. This enables investment teams to monitor a tool – the ESG Hub – to systematically monitor and 02.4 Sustainable investing categories ESG risks as part of the investment process, although assess sustainability risks (see page 30). they do not necessarily actively incorporate ESG risks • For private markets asset classes, ESG risks are 03 and opportunities into their investment decisions. considered throughout the investment process and Active stewardship Portfolio and individual security level analysis is applied ongoing asset management activities. In many cases, 04 across all assets, providing transparency on ESG risks they are specifically screened along sustainability-risk AllianzGI as a sustainable business and principal adverse impacts (PAIs). guidelines, or using minimum-exclusion lists as defined Sustainability risk factors may materialise along any by Allianz’s ESG Risk Framework. 05 of the three dimensions of ESG investing. We consider Further detail is given in our Sustainability Risk Appendix sustainability risks to be potential drivers of financial Management Policy Statement and Principal Adverse risk factors in investments, such as market price risk, Impact Statement. credit risk, liquidity risk and operational risk. We follow the EU SFDR definition of sustainability factors and Read more sustainability risks: • Sustainability factors: Environmental, social and employee matters, respect for human rights, anti- corruption and anti-bribery matters. • Sustainability risks: Environmental, social or governance risk factors that, if they occur, could cause an actual or a potential material negative impact on the value of the investment.