01 04.1 Building our approach to sustainable investing Principle 1 Introduction 02 Sustainable investing 03 Our company values – excellence, Promoting inclusive meritocracy – where Fit and proper standard Active stewardship integrity, respect and passion – describe people and performance matter To implement and safeguard a strong “fit and proper” how we want to conduct our business. We use the term inclusive meritocracy to describe standard, we must ensure senior management and 04 a culture and working environment where people key function members have the required knowledge, AllianzGI as a sustainable business They underpin our commitment to and performance matter. Inclusive meritocracy experience, professional qualifications, integrity and 04.1 B uilding our approach to being sustainable and our stewardship describes a corporate culture of mutual trust and soundness of judgement. The fitness and propriety sustainable investing approach. In practice, this means: respect, empowerment and collaboration, where of senior management and key function members is 04.2 Developing a shared vision for diversity is fostered and client satisfaction is a high assessed individually during recruitment or appointment inclusion and diversity • Excellence in operations drives us to optimise our priority. Performance and behaviour have an impact and on an ongoing basis as part of annual reviews. 04.3 P romoting employee health ways of working and reduce emissions. on rewards and are encouraged by clear dialogue If a person’s fitness and/or propriety is questioned, and wellbeing in a hybrid with leadership teams. we reassess the situation and take necessary actions work environment • Respect confirms our commitment to develop long- aligned to our policy. 04.4 Business conduct and term relations with clients, providers and colleagues. Inclusive meritocracy underpins a key index in the operational risk management annual Allianz Engagement Survey – the Inclusive Compliance as a key part of 04.5 Managing the environmental • Integrity means holding ourselves to standards over Meritocracy Index (IMIX) – which measures the progress performance appraisal impact of our operations and above compliance requirements. we are making across 10 aspects covering leadership, 04.6 Corporate citizenship • Through passion, we apply ourselves consistently, performance and corporate culture. We monitor any breaches or misconduct in employees’ through both success and adversity. behaviour and performance. Through the year-end 05 Ensuring compliance through harmonised appraisal process, the Compliance team and direct Appendix In addition, our culture principles support sustainable people processes managers are asked to detail any misconduct or behaviours and foster a working environment that Harmonised process documentation is important for breaches to ensure they are considered accordingly. supports our strategy of being the natural choice for making our organisation resilient and enabling us to Depending on the nature of a breach or misconduct savers and investors who care about sustainable returns. cope with the volatility of AllianzGI’s external business case, the range of possible outcomes may vary from a environment. This ensures compliance with established simple reprimand of the employee to formal disciplinary Our culture principles regulations and legislation, and provides greater action, including potential termination of employment. Be sustainable in everything we do context, visibility and transparency into our people processes. It also enables further simplification and Put the client first scalability and enhances process quality and efficiency. Be solution-oriented Be courageous and make tough choices Think out of the box and embrace failure as a learning opportunity Take ownership for the final outcome Win together as a team