01 01.1 In conversation with Tobias Pross and Matt Christensen continued Principle 1 Introduction 01.1 I n conversation with Tobias Pross and Matt Christensen 01.2 About AllianzGI TP I agree that 2021 was a year that truly shone At the UN Climate Conference in Glasgow, MC When looking at how we frame those goals 01.3 What sustainable investing a light on the challenges facing the planet and we launched a strategy, built around a public- and solutions, we have identified three key means to us the urgency with which we must face them. private partnership that will invest in climate- themes that we see as the most urgent 01.4 Acting on climate risks Collaborative action will be vital to develop the focused private equity funds and projects active challenges globally and which will be integral and opportunities right solutions and I am pleased we played a in emerging markets and developing countries. to sustainable businesses in the future – climate 01.5 Sustainability governance part in some major initiatives and cross-industry Our clients will benefit from this commitment change, planetary boundaries and inclusive 01.6 Shaping sustainable investing collaborations. With our parent company, through the co-investment opportunities that capitalism. These themes guide targeted with our clients Allianz, we have committed to measurably exist with Allianz. Through these and other research and engagement to identify the most reduce the carbon footprint of our real assets initiatives, we are partnering with clients to tackle material risks and opportunities for our business 02 portfolio by growing our share in low greenhouse the most pressing sustainability issues and create and our clients. Sustainable investing gas (GHG)-emitting assets and engaging on a better future for all. Our participation in these decarbonisation with the companies in which we organisations and programmes complements We also see impact investing as a core area 03 are invested. In March 2021, we joined the Net the various industry bodies in which we play an of opportunity, aligned with client motivation. Active stewardship When constructing investment products and Zero Asset Managers initiative which supports active role. portfolios, impact will eventually become a 04 the goal of net zero emissions by 2050, in line What do you see as the most significant third dimension for measuring investment AllianzGI as a sustainable business with global efforts to limit warming to 1.5°C. Q This aligns us with the commitments made by future trends around sustainability? performance, next to risk and return. Therefore, 05 Allianz as a founding member of the Net Zero Sustainability is a fast-evolving space and it it becomes increasingly important that we are Appendix Asset Owner Alliance in 2019. TP is vital we keep pace with our clients’ thinking able to measure impact – of private markets as and major advances in understanding around well as public markets investments – and we are With Allianz, we are also co-developing both the challenges and opportunities. We are developing a framework for this. dedicated impact investment strategies that proud of our long track record in sustainable How do you define AllianzGI’s role in foster the energy transition in both developed investing, launching our first SRI fund in 1999. Q shaping the future? and developing markets, often partnering with We plan to expand our sustainable investment global development banks and organisations. offering, from innovative impact-focused funds We want to provide our clients with access For example in November 2021, together with TP to the growth opportunities of a sustainable the International Finance Corporation and Hong to tailored solutions for our clients, including future. US Special Presidential Envoy for Kong Monetary Authority, we set up the world’s through our risklab team (an advisory service Climate John Kerry said that 50% of the carbon first cross-sectoral portfolio of emerging-market within AllianzGI) where we added a dedicated reductions needed to get to net zero will come loans aligned with the Paris Agreement. The sustainable investment advisory offering in 2021. from technologies that have not yet been strategy supports the IFC and Allianz in making While being excited by these initiatives and invented. With our clients, we will be investing 1.5°C-aligned investments in emerging markets. confident in our expertise, we aim to be modest at the cutting edge to enable the development and pragmatic in our approach. We do not claim of these technologies. Our approach is both to have all of the answers, but we are committed optimistic and realistic. This can be clearly to making progress in pursuit of the goals that seen in our engagements, as we seek to work our clients – and society – seek. with the companies we invest in to shape their transition pathways to a more sustainable future. Generating these improvements and progress needs to be a collective endeavour.