01 03.7 Industry engagement and commitments continued Principles 4 10 Introduction 02 Sustainable investing 03 Through HKIFA, we initiated dialogues with the We are committed to work in partnership with asset- “Partnering with clients to tackle Active stewardship Securities and Futures Commission of Hong Kong, owner clients on decarbonisation goals across all assets the most pressing sustainability providing feedback and suggestions regarding its under management. We will set an interim target for 03.1 Our engagement approach circular on ESG funds and the fund manager code the proportion of assets to be managed in line with the issues and create a better future 03.2 Engagement outcomes of conduct. In parallel, the Mandatory Provident attainment of net zero emissions by 2050 or sooner and for all is at the heart of what we do. by theme Fund Authority introduced ESG principles for trustees review clients’ interim target at least every five years, We are committed to advancing the 03.3 Collaborative engagements which will come into force in November 2022. We with a view to increasing the proportion of AuM covered 03.4 E scalation where initial actively contributed to discussions with trustees and until 100% of assets are included. For more information understanding of the implications engagement is not enough members of the Hong Kong Trustees Association to on our first interim target, please see page 12. of climate-related risks and 03.5 I nfluencing companies through shape how these principles should be interpreted proxy voting and implemented. In addition, we are an active member of the Paris opportunities within long-term 03.6 Conflicts of interest Aligned Investment Initiative which was launched by investment portfolios through the 03.7 Industry engagement Industry consultations the Institutional Investors Group on Climate Change sharing of investment practices. and commitments We responded to consultations from local and regional (IIGCC) to bring together some of the world’s largest authorities including the European Commission, asset owners and asset managers for the development AllianzGI looks forward to 04 US Securities and Exchange Commission, Financial of a “Net Zero Investment Framework”. We are also AllianzGI as a sustainable business joining forces with other institutional investors in contributing to the work of the Conduct Authority in the UK, Monetary Authority of encouraging companies to implement such pathways. One Planet initiatives, given our 05 Singapore and Securities and Futures Commission of Our participation in the engagement platform Climate Appendix Hong Kong. We also responded to a consultation by Action 100+ and the Institutional Investors Group on experience in climate finance – the International Organization of Securities Commissions Climate Change connects us with like-minded investors through our investment process, (IOSCO) on ESG ratings, setting out our views and and offers platforms for collaborative engagement. strong stewardship policy, and recommendations as an ESG data user. We responded to the EU consultation for an Initiative on Sustainable One Planet Asset Manager (OPAM) initiative investment solutions that contribute Corporate Governance, underlining that shareholder The One Planet Asset Manager (OPAM) initiative was positively to the alignment of an interests should not be compromised. first launched to support the members of the One asset owner’s portfolio to a low Commitment to the Net Zero Asset Managers Planet Sovereign Wealth Fund in their implementation carbon economy.” initiative and other climate-related initiatives of the One Planet Sovereign Wealth Framework Recognising the urgency with which we need to tackle (OPSWF). The goal is to accelerate the understanding Tobias Pross, climate change, in March 2021 AllianzGI joined the and integration of the implications of climate-related Chief Executive Officer, Net Zero Asset Managers initiative. The initiative brings risks and opportunities within long-term investment Allianz Global Investors together an international group of asset managers portfolios through sharing of investment practices committed to supporting the goal of net zero GHG and expertise. emissions by 2050 or sooner, in line with global efforts to The OPSWF network comprises 43 of the world’s largest limit warming to 1.5°C. As of December 2021, it included institutional investors with over USD 36 trillion in assets 220 signatories managing AuM of USD 57 trillion. under management and ownership. AllianzGI was the first German asset manager to join the initiative. We are committed to actively collaborating within the OPSWF Framework and to engaging with other key actors – including standard setters, regulators and the broader industry – to further the framework’s objectives.