1. Introduction Unlike traditional financial risk factors, such as market price risks, assessing and quantifying climate change risks in investments is much harder and more complex. Unlike traditional financial risk factors, such as market price risks, assessing and quantifying climate change risks in investments is much harder and more complex. The “failure of climate change mitigation and adaption” is a pressing long-term risk according to the World Economic Forum’s Global Risks Report 2021. The Intergovernmental Panel on Climate Change (IPCC) reports show that greenhouse gas (GHG) emissions need to be strictly limited by 2050 to keep climate change well below 2°C above pre-industrial levels. There has also been strong progress to curb global warming and climate change, notably at the 21st Conference of the Parties, where global government leaders signed the Paris Agreement that aims to pursue limiting the temperature increase to 1.5°C above pre-industrial levels. Nevertheless, without a sharp decline in GHG emissions by 2030, global warming will surpass 1.5°C in the following decades, given the current level of international climate ambition. Thus, climate change is a serious issue for all our stakeholders. At Allianz Global Investors, climate risks are an important consideration when assessing potential investments. As an active investor, we can help to find innovative ways to allocate new capital – and reallocate existing capital – towards a climate transition that meets the Paris Agreement goals. We are a member of the Net Zero Asset Manager Initiative to act on the present and future climate demands jointly with other investment industry members. This is alongside our parent company, Allianz SE, which committed to decarbonise its asset owner portfolio as a founding member of the Net Zero Asset Owner Alliance. In recent years, we have laid strong foundations for our climate change strategy by supporting and implementing the Task Force on Climate-related Financial Disclosures (TCFD) recommendations, as well as developing an enhanced systematic approach to investee engagement on climate. We are also supportive of climate efforts by Allianz SE, which has further strengthened its approach to exiting coal-based business models due to climate risks, and has committed as an investor to the Science Based Target initiative (SBTi) among many other efforts. 2