01 01.3 What sustainable investing means to us continued Principles 1 4 6 Introduction 01.1 In conversation with Tobias Pross and Matt Christensen 01.2 About AllianzGI How active asset management supports • Advising on sustainability risks and engineering active 01.3 W hat sustainable investing the transition to a better future investment solutions that meet our clients’ individual means to us Our commitment to active asset management is objectives, powered by an innovative approach to 01.4 Acting on climate risks unequivocal. We think being an active asset manager allocation and a deep understanding of risk. With 60 and opportunities offers unique advantages in today’s investment investment advisers globally, risklab – an advisory team 01.5 Sustainability governance environment – whatever the asset class, geographic within AllianzGI – helps our clients to meet their 01.6 Shaping sustainable investing scope or investment style. Being active also allows us to investment goals through specialist advice and solutions. with our clients stay ahead of our clients’ future needs and to manage In 2021, we added sustainability-specific capabilities emerging and developing risks and opportunities when within risklab – (see case study on page 18). 02 Sustainable investing it comes to sustainable investing. • Financing the United Nations Sustainable In 2021, we implemented a number of sustainability- Development Goals (SDGs) by incorporating ESG 03 related initiatives in our investment and advisory considerations in our active investment decisions. Active stewardship We partner with our clients to mobilise capital to functions – and enhanced existing ones – as part of meet multiple sustainability-related goals, such 04 our active approach: as those set out in the UN SDGs. Our SDG-aligned AllianzGI as a sustainable business • Identifying our three key sustainability themes strategies specifically address the financing of the 05 – climate, planetary boundaries and inclusive SDGs. These strategies have grown to EUR 2.9 billion Appendix capitalism – that will shape our research and over the past year. engagement activities (see page 09). Capital allocation and company engagement are • Integrating ESG risk considerations into all our key drivers of positive change, and active stewardship investment processes and active stewardship continues to be a core action across our product approach (see page 39). strategies. In 2021, we engaged with 238 companies • Constructing portfolios designed for strong across 11 different sectors and 27 countries. We sustainability performance (see page 16). participated in 10,190 shareholder meetings in 2021, representing 95% of all votable meetings. We voted • Enhancing the ESG approach in private markets against, withheld, or abstained from at least one alongside creating an Impact Management agenda item at 68% of all meetings globally; and and Measurement team. This team has built the overall we opposed 21% of all resolutions globally AllianzGI Impact framework for private markets (see page 51). impact strategies to ensure investments generate material and measurable positive impact for our clients (see page 36).