01 01.6 Shaping sustainable investing with our clients continued Principles 2 6 Introduction 01.1 In conversation with Tobias Pross and Matt Christensen 01.2 About AllianzGI 01.3 What sustainable investing Shaping pathways for a sustainable future Shaping pathways for a sustainable future means to us 01.4 Acting on climate risks Building on our sustainable advisory Advising clients on a and opportunities capabilities with risklab strategy to reduce a 01.5 Sustainability governance 01.6 Shaping sustainable investing portfolio’s CO footprint with our clients 2 02 Sustainable investing In 2021, we expanded our offering by implementing and varying motivations, but all of them want to We performed a long-term strategic asset a dedicated expertise in sustainable investing within understand the impact of ESG on the risk and return allocation optimisation for the pensions team 03 risklab – AllianzGI’s unit offering customised analysis of their asset allocation. We aim to build on risklab’s of a global technology and optics manufacturer. Active stewardship and investment solutions – with a focus on asset longstanding expertise to provide transparency The company has committed to a carbon 04 allocation, risk management and private markets on the interaction of complex investment decisions neutrality goal. To contribute to this goal AllianzGI as a sustainable business implementation. We identified three pillars of and the long-term impact on traditional investment with the company’s pension assets, an equity this analysis: metrics while enhancing for sustainability metrics. investments sleeve was identified as a starting 05 • Sustainability transparency aims to help In 2022, we will continue to build out our institutional- point. We performed an analysis of available Appendix investors understand the sustainability quality grade sustainable investment advice that helps sustainable investment strategies and advised of their investment and best practices. investors view sustainability as a third dimension in the client on a choice that incorporated risk, addition to risk and return, by integrating ESG metrics return, ESG metrics and the carbon footprint of • Actionable advice focuses on establishing into our capital markets model. Our ambition is a the equity investment. The result was a change sustainability goals and implementing those goals level of transparency that allows for the display of bi- of the investment strategy and benchmark that through asset allocation changes, while keeping in directional implications of sustainability and financial will lead to a reduction of the carbon footprint mind the impact on risk and return characteristics metrics, ie, the implications of financial decisions on of the portfolio by 14,410 mtCO2e annually, of the portfolio. sustainability KPIs and the impact of a sustainability- as measured by financed Scope 1 and Scope • Customised solutions allows for a collaboration driven investment decision on traditional metrics such 2 emissions. between the client, risklab and AllianzGI with the as financial risk and return. reduction of the carbon footprint goal of developing investment strategies that To deliver on these ambitions, we plan to add further of the portfolio by meet specific client sustainability needs. resources and intensify the close collaboration 14,410 mtCO e To deliver on our ambition to offer outstanding between risklab and the rest of AllianzGI, in particular annually 2 sustainable investment advisory, we hired an the Sustainable and Impact Investing team. initial team of sustainability specialists and have started by expanding risklab’s tools and solutions in the first two pillars: transparency and actionable advice. We aim to help clients work within their own values framework rather than telling them what sustainability should mean to them. We support clients with different levels of experience