2. Our approach Governance AllianzGI has a Sustainable Investing Working Group with representatives from the Investment Executive Committee and relevant internal stakeholders. It advises the Executive Committee (ExCo), our central governance and decision- making body at AllianzGI, and other relevant committees on sustainability issues including climate change. The ExCo has responsibility for all sustainability-related topics, including climate change. The Investment Executive Committee and Global Head of Investments have responsibility for all sustainability-related topics, including climate change, within our investments. Investment process AllianzGI’s dedicated sustainable investment team, portfolio managers and analysts collectively monitor and assess the science, regulatory response and business implications of climate change closely, looking at implications for individual issuers and sectors. The teams analyse several ways in which climate change can be a driver of investment performance. For example, we research: 1 How the uptake of low-carbon transportation may impact commodity prices, such as the oil price. 2 How the growth in the deployment of renewable energy may impact the solar and wind value chain and utilisation rates for traditional thermal power plants. 3 How carbon prices, tax credits and subsidy schemes for fossil fuels and renewable energy affect clean technologies and to what extent they disrupt incumbent business models. 4 How new technologies may enable our investee companies to set ambitious targets and who is at the forefront of developing these new technologies For publicly listed asset classes , the teams look at extreme environmental risks on a corporate issuer level as part of their intrinsic ESG rating analysis, including possible tail risks from climate change transition risks. Research views and investment opinions are exchanged and documented on a global proprietary research platform, which can be accessed by all investment professionals. For private market asset classes , the teams similarly consider climate risk on an issuer level. However, the due diligence process for private market investing often requires a high degree of detailed information. Depending on the individual investment strategy, the investment teams review specialist reports commissioned by independent advisors, conduct in-depth discussions with the management and/or existing equity owners, and seek advice from specialist ESG research colleagues within AllianzGI or Allianz SE. The due diligence process is used to identify the relevant climate risks for each investment. A bespoke analysis is subsequently performed if necessary. This can include both qualitative analysis (eg, Q&A with the management or independent advisers) or quantitative analysis (eg, building a cash-flow operating model for a single company and sensitising the input s). With our ESG integration efforts, all AllianzGI portfolio managers are able to consider climate change risks in the investment strategies that they manage. Dedicated climate client solutions Beyond mainstream investment strategies, AllianzGI offers climate thematic and impact-driven funds such as green bonds, climate transition equity, and illiquid renewable energy equity. These “green” assets contribute positively to the alignment of an asset owner’s portfolio to a 1.5°C economy or well below, and the portfolio’s compatibility with climate and energy transition targets. AllianzGI Climate Policy Statement 5