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Eurosif European SRI Transparency Code

Allianz GI - Eurosif European SRI Transparency Code Commitment - December 2021

Eurosif European SRI Transparency Code - Page 1

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 Statement of Commitment ................................................................................................................. p. 3 Compliance with Transparency Code ............................................................................................... p. 3 1) List of funds covered by the Code ............................................................................................... p. 3 2) General information about the fund management company ..................................................... p. 9 2.1) Name of the fund management company that manages the applicant funds p. 9 2.2) What are the company’s track record and principles when it comes to integrating SRI into its processes? p. 9 2.3) How does the company formalise its sustainable investment process? p. 9 2.4) How are ESG risks and opportunities – including those linked to climate change – understood/taken into account by company? p. 9 2.5) How many employees are directly involved in the company’s sustainable investment activity? p. 9 2.6) Is the company involved in any RI initiatives? p. 9 2.7) What is the total number of SRI assets under company’s management? p. 10 3) General information about the SRI funds that come under the scope of the Code .................. p. 10 3.1) What are the funds aiming to achieve by integrating ESG factors? p. 10 3.2) What internal or external resources are used for ESG evaluation of the issuers who make up the investment universe of the funds? p. 10 3.3) What ESG criteria are taken into account by the funds? p. 11 3.4) What principles and criteria linked to climate change are taken into account in the funds? p. 12 3.5) What is the ESG analysis and evaluation methodology of the fund manager/fund management company (how is the investment universe built, what rating scale is used, etc.)? p. 13 3.6) How often is the ESG evaluation of the issuers reviewed? How are any controversies managed? p. 13 4) Investment process ........................................................................................................................ p. 13 4.1) How are the results of the ESG research integrated into portfolio construction? p. 13 4.2) How are criteria specific to climate change integrated into portfolio construction? p. 27 4.3) How are the issuers that are present in the portfolio, but not subject to ESG analysis evaluated (not including mutual funds)? p. 32 4.4) Has the ESG evaluation or investment process changed in the last 12 months? p. 33 4.5) Is a part of the funds invested in entities pursuing strong social goals/social enterprises? p. 33 4.6) Do the funds engage in securities lending activities? p. 34 4.7) Do the funds use derivative instruments? p. 34 4.8) Do the funds invest in mutual funds? p. 35 2

Eurosif European SRI Transparency Code - Page 2

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 STATEMENT OF COMMITMENT Sustainable and Responsible Investing is an essential part January 2021 to December 2021. our full response to the of the strategic positioning and behavior of allianz Global European SRI Transparency code can be accessed below Investors (allianzGI). We have been involved in SRI since and is available in the annual report of the retail funds 2000 and welcome the European SRI Transparency code. and on our website. This is our statement of commitment covering the period COMPLIANCE WITH THE TRANSPARENCY CODE allianzGI is committed to transparency and we believe that which we operate. allianzGI meets the full recommenda- we are as transparent as possible given the regulatory tions of the European SRI Transparency code. and competitive environments that exist in the countries in 1) LIST OF FUNDS COVERED BY THE CODE Name Dominant/ Asset Exclusion Fund capital Other Links of the fund preferred class* standards as at 31 Dec labels SRI strategy and norms Allianz best-in-class, bonds and other - controversial weapons EuR https://de.allianzgi.com/de- Advanced Norms-based debt securities - Tobacco - arms - Human rights - 2,83 bn de/pro/unsere- Fixed Income Screening, Labour rights - co2 intensive fonds/fonds/list/allianz-advan- Euro Engagement (incl. coal) - uN Global compact ced-fixed-income-euro-a-eur & Voting, - oEcD Guidelines for mNcs Exclusions - ILo conventions Allianz best-in-class, - controversial weapons EuR Advanced Norms-based bonds - Tobacco - arms - Human rights 1,68 bn https://de.allianzgi.com/de- Fixed Income Screening, and other - Labour rights - co2 intensive de/pro/unsere- Short Engagement debt securities (incl. coal) - uN Global compact fonds/fonds/list/allianz-advan- Duration & Voting, - oEcD Guidelines for mNcs ced-fixed-income-short-dura- Exclusions - ILo conventions tion-a-eur Allianz best-in-class, International - controversial weapons - alcohol EuR Strategiefonds Norms-based shares - Tobacco - arms - Human rights 1,46 bn Wachstum Plus Screening, - Labour rights - Gambling https://de.allianzgi.com/de- Engagement - pornography - co2 intensive de/pro/unsere- & Voting, (incl. coal) - Genetic Engineering fonds/fonds/list/allianz-strate- Exclusions - uN Global compact - oEcD giefonds-wachstum-plus-a-eur Guidelines for mNcs - ILo conventions - other: artic drilling, Hydraulic fracturing, oil sands Allianz Euro best-in-class, bonds - controversial weapons EuR https://de.allianzgi.com/de- Rentenfonds Norms-based and other - Tobacco - arms - Human rights 1,17 bn de/pro/unsere- Screening, debt securities - Labour rights - co2 intensive fonds/fonds/list/allianz-euro- Engagement (incl. coal) - uN Global compact rentenfonds-a-eur & Voting, - oEcD Guidelines for mNcs Exclusions - ILo conventions Allianz Euro best-in-class, multi asset - controversial weapons EuR https://lu.allianzgi.com/en- Balanced Norms-based - Tobacco - arms - Human rights 1,11 bn gb/pro/our- Screening, - Labour rights - co2 intensive funds/funds/list/allianz-euro- Engagement (incl. coal) - uN Global compact balanced-i2-eur & Voting, - oEcD Guidelines for mNcs Exclusions - ILo conventions Allianz best-in-class, bonds - controversial weapons EuR https://de.allianzgi.com/de- Rentenfonds Norms-based and other - Tobacco - arms - Human rights 1,28 bn de/pro/unsere- Screening, debt securities - Labour rights - co2 intensive fonds/fonds/list/allianz-renten- Engagement (incl. coal) - uN Global compact fonds-a-eur & Voting, - oEcD Guidelines for mNcs Exclusions - ILo conventions * (all assets in scope are actively managed). 3

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 Name Dominant/ Asset Exclusion Fund capital Other Links of the fund preferred class* standards as at 31 Dec labels SRI strategy and norms Allianz best-in-class, International - controversial weapons - alcohol EuR https://uk.allianzgi.com/en- Best Styles Norms-based shares (uS) - Tobacco - arms - Human rights - 3,03 bn gb/institutional/our- US Equity Screening, Labour rights - Gambling funds/mutual-funds/allianz- Engagement - pornography - co2 intensitive best-styles-us-equity-a-eur & Voting, Exclusions (incl. coal) - Genetic Engineering - uN Global compact - oEcD Guidelines for mNcs - ILo conventions - other: artic drilling, Hydraulic fracturing, oil sands Allianz Best best-in-class, International - controversial weapons - alcohol EuR https://uk.allianzgi.com/en- Styles Global Norms-based shares - Tobacco - arms - Human rights 924,02 m gb/institutional/our- Equity SRI Screening, - Labour rights - Gambling funds/mutual-funds/allianz- Engagement - pornography - co2 intensitive best-styles-global-equity-a-eur & Voting, Exclusions (incl. coal) - Genetic Engineering - uN Global compact - oEcD Guidelines for mNcs - ILo conventions - other: artic drilling, Hydraulic fracturing, oil sands Allianz best-in-class, Shares - controversial weapons EuR https://fr.allianzgi.com/fr-fr/nos- NEO ISR Norms-based in a euro area - Tobacco - arms - Human rights 167,2 m opcvm/fonds/liste/allianz-neo- 2021 Screening, country - Labour rights - co2 intensive isr-2021-it7-eur Engagement (incl. coal) - uN Global compact & Voting, Exclusions - oEcD Guidelines for mNcs - ILo conventions Allianz best-in-class, actively - controversial weapons EuR https://de.allianzgi.com/de- Emerging Norms-based managed: - Tobacco - arms - Human rights 43,5 m de/pro/unsere- Markets Screening, International - Labour rights - co2 intensive fonds/fonds/list/allianz-emer- Equity SRI Engagement shares (incl. coal) - uN Global compact ging-markets-equity-sri-it-eur & Voting, Exclusions - oEcD Guidelines for mNcs - ILo conventions Allianz Green Sustainability International - controversial weapons EuR https://de.allianzgi.com/de- Transition themed bonds and - Tobacco - arms - Human rights 22,2 m de/pro/unsere- Bond (SDG-aligned), other debt - Labour rights - co2 intensive fonds/fonds/list/allianz-green- Norms-based securities (incl. coal) - uN Global compact transition-bond-at-h2-eur-eur Screening, - oEcD Guidlines for mNcs Engagement - ILo conventions & Voting, Exclusions - other: freedom House Index Allianz best-in-class, Shares - controversial weapons launched https://fr.allianzgi.com/fr-fr/nos- Climat 2021 Norms-based in a euro area - Tobacco - arms - Human rights 18 Jan 2022 opcvm/fonds/liste/allianz-cli- Screening, country - Labour rights - co2 intensive with EuR mat-2021-it7-eur Engagement (incl. coal) - uN Global compact 135 m & Voting, Exclusions - oEcD Guidelines for mNcs - ILo conventions Allianz Sustainability International - controversial weapons EuR https://fr.allianzgi.com/fr-fr/nos- Smart Themed shares - Tobacco - arms - Human rights 295,34 m opcvm/fonds/liste/allianz- Energy (SDG-aligned), - Labour rights - co2 intensive smart-energy-a-eur Norms-based Screening, (incl. coal) - uN Global compact Engagement - oEcD Guidelines for mNcs & Voting, Exclusions - ILo conventions Allianz Sustainability International - controversial weapons EuR https://fr.allianzgi.com/fr-fr/nos- Clean Themed shares - Tobacco - arms - Human rights 94,77 m opcvm/fonds/liste/allianz- Planet (SDG-aligned), - Labour rights - co2 intensive clean-planet-a-eur Norms-based Screening, (incl. coal) - uN Global compact Engagement - oEcD Guidelines for mNcs & Voting, Exclusions - ILo conventions Allianz Sustainability International - controversial weapons EuR https://fr.allianzgi.com/fr-fr/nos- Positive Themed shares - Tobacco - arms - Human rights 84,5 m opcvm/fonds/liste/allianz-posi- Change (SDG-aligned), - Labour rights - co2 intensive tive-change-a-eur Norms-based Screening, (incl. coal) - uN Global compact Engagement - oEcD Guidelines for mNcs & Voting, Exclusions - ILo conventions Allianz Sustainability multi asset - controversial weapons EuR https://fr.allianzgi.com/fr-fr/nos- Better World Themed - Tobacco - arms - Human rights 25,63 m opcvm/fonds/liste/allianz-bet- Defensive (SDG-aligned), - Labour rights - co2 intensive ter-world-defensive-at-eur Norms-based Screening, (incl. coal) - uN Global compact Engagement - oEcD Guidelines for mNcs & Voting, Exclusions - ILo conventions * (all assets in scope are actively managed). 4

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 Name Dominant/ Asset Exclusion Fund capital Other Links of the fund preferred class* standards as at 31 Dec labels SRI strategy and norms Allianz Sustainability multi asset - controversial weapons EuR https://de.allianzgi.com/de- Better Themed - Tobacco - arms - Human rights 29,44 m de/pro/unsere- World (SDG-aligned), - Labour rights - co2 intensive fonds/fonds/list/allianz-better- Dynamic Norms-based Screening, (incl. coal) - uN Global compact world-dynamic-at-eur Engagement - oEcD Guidelines for mNcs & Voting, Exclusions - ILo conventions Allianz Sustainability multi asset - controversial weapons EuR https://fr.allianzgi.com/fr-fr/nos- Better Themed - Tobacco - arms - Human rights 28,92 m opcvm/fonds/liste/allianz-bet- World (SDG-aligned), - Labour rights - co2 intensive ter-world-moderate-at-eur Moderate Norms-based Screening, (incl. coal) - uN Global compact Engagement - oEcD Guidelines for mNcs & Voting, Exclusions - ILo conventions Allianz Sustainability International - controversial weapons EuR https://fr.allianzgi.com/fr-fr/nos- Global Themed shares - Tobacco - arms - Human rights 1,02 bn opcvm/fonds/liste/allianz-glo- Water (SDG-aligned), - Labour rights - co2 intensive bal-water-a-eur Norms-based Screening, (incl. coal) - uN Global compact Engagement - oEcD Guidelines for mNcs & Voting, Exclusions - ILo conventions Allianz Sustainability International - controversial weapons EuR https://fr.allianzgi.com/fr-fr/nos- Food Themed shares - Tobacco - arms - Human rights 103,78 m opcvm/fonds/liste/allianz-food- Security (SDG-aligned), - Labour rights - co2 intensive security-a-eur Norms-based Screening, (incl. coal) - uN Global compact Engagement - oEcD Guidelines for mNcs & Voting, Exclusions - ILo conventions Allianz Sustainability International - controversial weapons EuR https://fr.allianzgi.com/fr-fr/nos- Sustainable Themed shares - Tobacco - arms - Human rights 56,78 m opcvm/fonds/liste/allianz-sus- Health (SDG-aligned), - Labour rights - co2 intensive tainable-health-evolution-a-eur Evolution Norms-based Screening, (incl. coal) - uN Global compact Engagement - oEcD Guidelines for mNcs & Voting, Exclusions - ILo conventions Allianz best-in-class, Shares - controversial weapons EuR - french https://fr.allianzgi.com/fr-fr/nos- Valeurs Norms-based in an Eu - Tobacco - arms - Human rights 787 m SRI Label opcvm/fonds/sri/allianz- Durables Screening, country - Labour rights - co2 intensive valeurs-durables-ic-eur Engagement (incl. coal) - uN Global compact & Voting, Exclusions - oEcD Guidelines for mNcs - ILo conventions Allianz best-in-class, Shares - controversial weapons EuR - Towards https://fr.allianzgi.com/fr-fr/nos- Europe Norms-based in an Eu - Tobacco - arms - Human rights 247 m Sustainability opcvm/fonds/sri/allianz- Equity Screening, country - Labour rights - co2 intensive Label europe-equity-sri-a-eur SRI Engagement (incl. coal) - uN Global compact & Voting, Exclusions - oEcD Guidelines for mNcs - ILo conventions Allianz best-in-class, Shares - controversial weapons EuR https://fr.allianzgi.com/fr-fr/nos- Epargne Norms-based in an Eu - Tobacco - arms - Human rights 54 m opcvm/fonds/liste/allianz- Actions Screening, country - Labour rights - co2 intensive epargne-actions-isr-solidaire-c- ISR Engagement (incl. coal) - uN Global compact eur Solidaire & Voting, Exclusions - oEcD Guidelines for mNcs - ILo conventions Allianz best-in-class, Shares - controversial weapons EuR https://de.allianzgi.com/de- Climate Norms-based in an Eu - Tobacco - arms - Human rights 241 m de/pro/unsere- Transition Screening, country - Labour rights - co2 intensive fonds/fonds/list/allianz-climate- Engagement (incl. coal) - uN Global compact transition-at-eur & Voting, Exclusions - oEcD Guidelines for mNcs - ILo conventions Allianz best-in-class, International - controversial weapons EuR https://de.allianzgi.com/de- Global Norms-based shares - Tobacco - arms - Human rights 2,43 bn de/pro/unsere- Sustainability Screening, - Labour rights - co2 intensive fonds/fonds/list/allianz-global- Engagement (incl. coal) - uN Global compact sustainability-a-eur & Voting, Exclusions - oEcD Guidelines for mNcs - ILo conventions * (all assets in scope are actively managed). 5

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 Name Dominant/ Asset Exclusion Fund capital Other Links of the fund preferred class* standards as at 31 Dec labels SRI strategy and norms Allianz best-in-class, multi asset - controversial weapons 192,8 m https://de.allianzgi.com/de- Stiftungsfonds Norms-based - Tobacco - arms - Human rights de/pro/unsere- Nachhaltigkeit Screening, - Labour rights - co2 intensive fonds/fonds/list/allianz-stif- Engagement (incl. coal) - uN Global compact tungsfonds-nachhaltigkeit-a- & Voting, Exclusions - oEcD Guidelines for mNcs eur - ILo conventions Allianz best-in-class, bonds - controversial weapons EuR https://de.allianzgi.com/de- Euro Norms-based and other debt - Tobacco - arms - Human rights 3,05 bn de/pro/unsere- Credit SRI Screening, securities - Labour rights - co2 intensive fonds/fonds/list/allianz-euro- Engagement denominated (incl. coal) - uN Global compact credit-sri-a-eur & Voting, Exclusions in euro - oEcD Guidelines for mNcs - ILo conventions Allianz best-in-class, bonds - controversial weapons EuR - Towards https://de.allianzgi.com/de- Euro Credit Norms-based and other debt - Tobacco - arms - Human rights 110 m Sustainability de/pro/unsere- SRI Plus Screening, securities - Labour rights - co2 intensive Label fonds/fonds/list/allianz-euro- Engagement denominated (incl. coal) - uN Global compact credit-sri-plus-p-eur & Voting, Exclusions in euro - oEcD Guidelines for mNcs - ILo conventions - other: unconventional o&G Allianz best-in-class, Short term - controversial weapons EuR - french https://de.allianzgi.com/de- Securicash Norms-based monetary - Tobacco - arms - Human rights 3,58 bn SRI Label de/pro/unsere- SRI Screening, assets - Labour rights - co2 intensive fonds/fonds/list/allianz-securi- Engagement (incl. coal) - uN Global compact cash-sri-ic-eur & Voting, Exclusions - oEcD Guidelines for mNcs - ILo conventions Allianz best-in-class, monetary - controversial weapons EuR - french SRI https://de.allianzgi.com/de- Euro Oblig Norms-based assets - Tobacco - arms - Human rights 1,57 bn Label de/pro/unsere- Court Terme Screening, - Labour rights - co2 intensive - Towards fonds/fonds/list/allianz-euro- ISR Engagement (incl. coal) - uN Global compact Sustainability oblig-court-terme-isr-rc-eur & Voting, Exclusions - oEcD Guidelines for mNcs Label - ILo conventions - other: unconventional o&G Allianz Impact Investing, International - controversial weapons - arms EuR - Greenfin https://uk.allianzgi.com/en- G reen Norms-based bonds and other - Human rights - uN Global 1,23 bn gb/institutional/our- Bond Screening, debt securities compact - ILo conventions funds/mutual-funds/allianz- Engagement - other: coal, alignment with green-bond-a-eur & Voting, Exclusions the Green bond principles AREF Impact Investing, Structured - controversial weapons EuR Fund Norms-based funds - Tobacco - arms - Human rights 1,24 bn Family Screening, - Labour rights - co2 intensive Engagement (incl. coal) - uN Global compact & Voting, Exclusions - oEcD Guidelines for mNcs - ILo conventions Allianz best-in-class, International - controversial weapons EuR https://uk.allianzgi.com/en- Global Norms-based bonds and other - alcohol - Tobacco - arms 61,12 m gb/institutional/our- Multi-Asset Screening, debt securities - Human rights - Labour rights funds/mutual-funds/allianz-glo- Credit SRI Engagement - Gambling - pornography bal-multi-asset-credit-sri-wt-usd & Voting, Exclusions - co2 intensive (incl. coal) - uN Global compact - oEcD Guidelines for mNcs - ILo conventions - other: unconventional o&G Allianz best-in-class, International - controversial weapons EuR https://de.allianzgi.com/de- Emerging Norms-based bonds and other - Tobacco - arms - Human rights 98,89 m de/unsere- Markets Screening, debt securities - Labour rights - co2 intensive fonds/fonds/list/allianz-emer- SRI Bond Engagement (incl. coal) - uN Global compact ging-markets-sri-bond-p2-usd & Voting, Exclusions - oEcD Guidelines for mNcs - ILo conventions - other: unconventional o&G * (all assets in scope are actively managed). 6

EEuuRRooSSIIff EEuuRRooppEEaaNN SSRRII TTRRaaNNSSppaaRREENNccyy ccooDDEE -- DDEEccEEmmbbEERR 22002211 Name Dominant/ Asset Exclusion Fund capital Other Links of the fund preferred class* standards as at 31 Dec labels SRI strategy and norms Allianz best-in-class, International - controversial weapons EuR https://de.allianzgi.com/de- Emerging Norms-based bonds and other - Tobacco - arms - Human rights 103,3 m de/unsere- Markets Screening, debt securities - Labour rights - co2 intensive fonds/fonds/list/allianz-emer- SRI Corporate Engagement (incl. coal) - uN Global compact ging-markets-sri-corporate- Bond & Voting, Exclusions - oEcD Guidelines for mNcs bond-amg-usd - ILo conventions Allianz best-in-class, multi asset - controversial weapons EuR https://de.allianzgi.com/de- Vermögenskonzept Norms- - Tobacco - arms - Human rights 138,88 m de/unsere- SRI Dynamisch based - Labour rights - co2 intensive fonds/fonds/list/allianz-ver- Screening, (incl. coal) - uN Global compact moegenskonzept-sri-dyna- Engagement - oEcD Guidelines for mNcs misch-a-eur & Voting, Exclusions - ILo conventions Allianz best-in-class, multi asset - controversial weapons EuR https://de.allianzgi.com/de- Vermögenskonzept Norms- - Tobacco - arms - Human rights 205,4 m de/unsere- SRI Ausgewogen based - Labour rights - co2 intensive fonds/fonds/list/allianz-ver- Screening, (incl. coal) - uN Global compact moegenskonzept-sri-ausgewo- Engagement - oEcD Guidelines for mNcs gen-a-eur & Voting, Exclusions - ILo conventions Allianz best-in-class, multi asset - controversial weapons EuR https://de.allianzgi.com/de- Vermögenskonzept Norms- - Tobacco - arms - Human rights 173,08 m de/unsere- SRI Defensiv based - Labour rights - co2 intensive fonds/fonds/list/allianz-ver- Screening, (incl. coal) - uN Global compact moegenskonzept-sri-defensiv-a- Engagement - oEcD Guidelines for mNcs eur & Voting, Exclusions - ILo conventions Allianz best-in-class, fund of funds - controversial weapons EuR - french https://fr.allianzgi.com/fr-fr/nos- Multi Norms-based - Tobacco - arms - Human rights 43,62 m SRI Label opcvm/fonds/liste/allianz-multi- Tempere Screening, - Labour rights - co2 intensive temp-r-isr-c-et-ou-d-eur ISR Engagement (incl. coal) - uN Global compact & Voting, Exclusions - oEcD Guidelines for mNcs - ILo conventions Allianz best-in-class, Shares - controversial weapons EuR https://fr.allianzgi.com/fr-fr/nos- Epargne Norms-based in a euro area - Tobacco - arms - Human rights 27 m opcvm/fonds/liste/allianz- Durable Screening, country - Labour rights - co2 intensive epargne-durable-c-eur Engagement (incl. coal) - uN Global compact & Voting, Exclusions - oEcD Guidelines for mNcs - ILo conventions Allianz best-in-class, Short term - controversial weapons EuR https://fr.allianzgi.com/fr-fr/nos- Epargne Norms-based monetary - Tobacco - arms - Human rights 109 m opcvm/fonds/liste/allianz- Monetaire Screening, assets - Labour rights - co2 intensive epargne-monetaire-isr-c-eur ISR Engagement (incl. coal) - uN Global compact & Voting, Exclusions - oEcD Guidelines for mNcs - ILo conventions Allianz best-in-class, Short term - controversial weapons EuR https://fr.allianzgi.com/fr-fr/nos- Pee Monetaire Norms-based monetary - Tobacco - arms - Human rights 54 m opcvm/fonds/liste/allianz-pee- ISR Screening, assets - Labour rights - co2 intensive monetaire-isr-c-eur Engagement (incl. coal) - uN Global compact & Voting, Exclusions - oEcD Guidelines for mNcs - ILo conventions Allianz best-in-class, Short term - controversial weapons EuR https://fr.allianzgi.com/fr-fr/nos- Monetaire Norms-based monetary - Tobacco - arms - Human rights 71 m opcvm/fonds/liste/allianz- (2C) Screening, assets - Labour rights - co2 intensive monetaire-c-eur Engagement (incl. coal) - uN Global compact & Voting, Exclusions - oEcD Guidelines for mNcs - ILo conventions Allianz best-in-class, Short term - controversial weapons EuR https://fr.allianzgi.com/fr- Euro Short Norms-based monetary - Tobacco - arms - Human rights 62 m fr/investisseursprofessionnels/n Term Screening, assets - Labour rights - co2 intensive os-produits/fonds/liste/allianz- Bonds SRI Engagement (incl. coal) - uN Global compact euro-short-term-bonds-sri-c-et- & Voting, Exclusions - oEcD Guidelines for mNcs ou-d-eur - ILo conventions * (all assets in scope are actively managed). 7

Name Dominant/ Asset Exclusion Fund capital Other Links of the fund preferred class* standards as at 31 Dec labels SRI strategy and norms Allianz best-in-class, multi asset - controversial weapons EuR https://de.allianzgi.com/de- Dynamic Norms-based - Tobacco - arms - Human rights 1,67 bn de/unsere- Multi Asset Screening, - Labour rights - co2 intensive fonds/fonds/list/allianz-dyna- Strategy Engagement (incl. coal) - uN Global compact mic-multi-asset-strategy-sri-15- SRI 15 & Voting, Exclusions - oEcD Guidelines for mNcs a-eur - ILo conventions Allianz best-in-class, International - controversial weapons EuR https://de.allianzgi.com/de- Global Norms-based bonds and other - alcohol - Tobacco - arms 59,26 m de/unsere- Credit Screening, debt securities - Human rights - Labour rights fonds/fonds/list/allianz-global- SRI Engagement - Gambling - pornography credit-sri-at-usd & Voting, Exclusions - co2 intensive (incl. coal) - uN Global compact - oEcD Guidelines for mNcs - ILo conventions - other: unconventional o&G Allianz best-in-class, Shares - controversial weapons EuR https://de.allianzgi.com/de- Best Styles Norms-based in a euro area - alcohol - Tobacco - arms 893,46 m de/unsere- Europe Screening, country - Human rights - Labour rights fonds/fonds/list/allianz-best- Equity SRI Engagement - Gambling - pornography styles-europe-equity-sri-a-eur & Voting, Exclusions - co2 intensive (incl. coal) - Genetic Engineering - uN Global compact - oEcD Guidelines for mNcs - ILo conventions - other: artic drilling, Hydraulic fracturing, oil sands Allianz best-in-class, Shares - controversial weapons EuR https://fr.allianzgi.com/fr-fr/nos- Neo ISR Norms-based in a euro area - Tobacco - arms - Human rights 191,2 m opcvm/fonds/sri/allianz-neo-isr- 2020 Screening, country - Labour rights - co2 intensive 2020-it7-eur Engagement (incl. coal) - uN Global compact & Voting, Exclusions - oEcD Guidelines for mNcs - ILo conventions Allianz best-in-class, multi asset - controversial weapons EuR https://de.allianzgi.com/de- Dynamic Norms-based - Tobacco - arms - Human rights 1,51 bn de/unsere- Multi Asset Screening, - Labour rights - co2 intensive fonds/fonds/list/allianz-dyna- Strategy Engagement (incl. coal) - uN Global compact mic-multi-asset-strategy-sri-50- SRI 50 & Voting, Exclusions - oEcD Guidelines for mNcs a-eur - ILo conventions Allianz best-in-class, multi asset - controversial weapons EuR https://de.allianzgi.com/de- Dynamic Norms-based - Tobacco - arms - Human rights 1,02 bn de/unsere- Multi Asset Screening, - Labour rights - co2 intensive fonds/fonds/list/allianz-dyna- Strategy Engagement (incl. coal) - uN Global compact mic-multi-asset-strategy-sri-75- SRI 75 & Voting, Exclusions - oEcD Guidelines for mNcs a-eur - ILo conventions Allianz best-in-class, Shares - controversial weapons EuR https://fr.allianzgi.com/fr-fr/nos- Actions Engagement in an Eu - Tobacco - arms - Human rights 522 m opcvm/fonds/liste/allianz- Euro & Voting, country - Labour rights - co2 intensive actions-euro-convictions-c-eur Convictions Norms-based (incl. coal) - uN Global compact Screening - oEcD Guidelines for mNcs - ILo conventions * (all assets in scope are actively managed). 8

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 2) GENERAL INFORMATION ABOUT THE FUND MANAGEMENT COMPANY 2.1) Name of the fund management company 2.3) How does the company formalise that manages the applicant funds its sustainable investment process? allianz Global Investors GmbH, www.allianzgi.com, an More information can be found on our website: investment company with limited liability, incorporated in https://www.allianzgi.com/en/our-firm/our-esg-approach Germany, with its registered office at bockenheimer In the section Key policy Documents various policy docu- Landstrasse 42-44, 60323 frankfurt/m, registered with the ments can be found, such as our Sustainability Risk mana- local court of frankfurt/m under number HRb 9340 and gement policy Statement, our Stewardship Statement and authorised by bundesanstalt für finanzdienstleistungsauf- our Global corporate Governance Guidelines. sicht (www.bafin.de). 2.2) What are the company’s track record 2.4) How are ESG risks and opportunities – and principles when it comes to integrating including those linked to climate change SRI into its processes? understood/taken into account by company? allianzGI's experience in sustainable investing spans more We recognize that understanding material ESG risks and than 20 years. Since the inception of our first sustainable early identification of long-term investment opportunities investment strategy in 1999, our number of sustainable could lead to lower risk profiles for our investments and products had increased to 150 by the end of 2021, up from couldbe a source of alpha to our clients. allianzGI believes 36 at the end of 2020. We made considerable progress in that ESG factors such as climate change risk may impact the 2021, developing new sustainable investment products and future performance of assets. furthermore, we are convinced that the value added from a sustainable investment can innovative analytical tools and methods to aggregate and only be fully capitalized through an active investment process data from third-party providers and alternative management approach. our approach comprises ESG risk data sources, informing our proprietary sustainability sco- assessment and active stewardship. ring system. To achieve all of this, we built out the resources and organisational structure of our Sustainable and Impact for more information we refer to allianzGI Sustainability Investing team to advance our strategy and support data, Risk management policy and allianzGI climate Risk State- research and stewardship activities. ment, which can be found in the Key policy Documents & Reports section of our website: our approach is applied across different asset classes (fixed https://www.allianzgi.com/en/ourfirm/esg/documents#k Income, equities and multi asset) and covers equities, eypolicydocumentsandreports bonds and sovereigns across the globe. at allianzGI, our Sustainable product categories aim to build sustainable portfolios using an assessment of E, S & G practices and 2.5) How many employees are directly values in the investment analysis and portfolio construc- involved in the company’s sustainable tion processes to deliver sustainable financial returns. The investment activity? Sustainability Research team is specialized on the specific ESG issues that impact businesses. This means they have There are 187 employees involved: 33 fTEs within the Sustai- the expertise necessary to identify and track key ESG nable and Impact Investment team. furthermore, there are issues impacting the issuers in their sectors. This approach additional 154 fTEs managing funds categorized as article ensures that we are not overly reliant on external research 8 or 9 according to the Eu SfDR. please not that these providers and sell-side ESG brokers, enabling us to gene- fTEs do not solely manage sustainable strategies but may rate independent and differentiated insights into ESG topics simultaneously also manage non-sustainable strategies. ahead of the market. We combine ESG analysis with robust stewardship to help 2.6) Is the company involved in any improve the risk profile of investments and steer companies RI initiatives? towards greater and more sustainable long-term profita- bility. This encourages investee companies to adopt better a full overview of allianzGI’s Sustainability Initiatives and business models and business behaviours. memberships can be found in the Key policy Documents More information can be found on our website: & Reports section of our website: https://www.allianzgi.com/en/our-firm/our-esg-approach https://www.allianzgi.com/en/ourfirm/esg/docu- ments#keypolicydocumentsandreports 9

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 2.7) What is the total number of SRI assets under company’s management? as of 31st December 2021, allianzGI is managing EuR 147 billion in sustainable product categories. Data as at 31 December 2021. Source: allianz Global Investors. any differences in totals are due to rounding. Impact comprises different strategies targe- ting climate transition, environmental projects and renewable energy. Environmental, social, governance (ESG); Sustainable & responsible investing (SRI). allianzGI product categories Sustainability-focused, SDG-aligned and Impact as sustainable according to Eu SfDR regulation. allianz Global Investors supports the uN Sustainable Development Goals (SDGs). 3) GENERAL INFORMATION ABOUT THE SRI FUNDS THAT COME UNDER THE SCOPE OF THE CODE 3.1) What are the funds aiming to achieve 3.2) What internal or external resources by integrating ESG factors? are used for ESG evaluation of the issuers allianz GI’s sustainable product categories target two who make up the investment universe objectives: of the funds? • a sustainability objective ensuring long-term financial per- allianzGI has dedicated internal resources performing sus- formance for our clients, tainability analysis since 2000. a fundamental role of the • a responsibility objective providing societal and environ- team is to share its expertise in the consideration of ESG mental added value to the broader society. factors alongside mainstream company analysis in order our strategy is to seek better risk/ return profiles through to identify risks and opportunities. the incorporation of material ESG risk considerations. The In 2021 we significantly expanded the Sustainable and Sustainability-focused approach (in line with SfDR article Impact investing team which now includes 38 team members 8) is geared towards providing improved risk-adjusted in a well-organised structure with clear lines of responsibility. returns and aims to reach sustainability objectives and Sub-teams cooperate closely and report directly to matt values. our Impact-focused approach (in line with SfDR christensen, Global Head of Sustainable and Impact article 9) is focused on enabling clients to invest with both Investing. The team is structured in the following sub-teams: their financial objectives and their sustainable goals in mind. Impact-focused products aim for measurable sustai- Sustainable Investment Office (SIO): shapes allianzGI’s nable outcomes. overall sustainable investment strategy and policies, sus- tainable product strategy and leads key initiatives. The team also plays a critical role in providing improved knowledge to clients and other stakeholders on allianzGI’s sustainable investment capabilities. 10

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 Sustainability Methodologies and Analytics (SMA): the Weapons team is responsible for driving innovation using state-of- the-art technology and ESG data. This includes employing allianzGI Sustainable product categories refrain from and new forms of data to support the Sustainability Research investing in: team, develop new methodologies across asset classes, • Securities issued by companies involved in controversial deliver innovative tools for our investment platforms and weapons (anti-personnel mines, duster munitions, chemi- shape elaborate client-oriented solutions for the future. cal weapons, biological weapons, depleted uranium, white The team oversees ESG integration and scoring approaches phosphorus and nuclear weapons); and develops the climate strategy dataset. • Securities issued by companies that derive more than Sustainability Research and Stewardship teams:manage 10% of their revenues from the involvement in military thematic research and engagement strategy and develop equipment and services. a thematic approach along the strategic topics of climate, Climate Change planetary boundaries and inclusive capitalism. The Stewards- hip Team leads allianzGI’s engagement and proxy-voting allianzGI Sustainable product categories refrain from inves- activities globally. ting in: Impact investing private markets: responsible for mana- • Securities issued by companies that derive more than ging private equity social and environmental impact port- 10% of their revenue from thermal coal extraction; folios and mobilising commercial capital to achieve the • Securities issued by utility companies that generate more united Nations’ Sustainable Development Goals (SDGs). than 20% of their revenues from coal. Team members have a diverse range of professional back- Tobacco grounds including finance, investment and legal, as well as environmental and sustainability expertise. allianzGI Sustainable product categories refrain from investing in: allianzGI recognizes that clients’ interest in sustainable • Securities issued by companies involved in the produc- investing stems from different perspectives, which require tion of tobacco; the application of different approaches and investment • Securities issued by companies involved in the distribution strategies. Having built expertise across a range of sustai- of tobacco in excess of 10% of their revenues. nable investment approaches over more than two decades, allianzGI continues to remain focused on categorizing allianzGI uses ISS-Ethix as the provider for ESG research these offerings in a way that will help clients identify data which is used for the above-mentioned exclusions. appropriate strategies for their needs. corporate issuer analysis and sovereign issuer analysis (to the extent relevant) are undertaken for all funds mentio- allianzGI’s Sustainability Research process makes use of ned in this document. data from Sustainalytics, Vigeo Eiris, ISS Ethix and mScI. The analysis covers 5 SRI Domains: 1- Human rights: for allianzGI SRI funds Human rights are 3.3) What ESG criteria are taken into account treated as an exclusion filter. The evaluation of securi- by the funds? ties is based on the issuer’s respect of human rights in its business conduct and their policies to evaluate how a allianzGI’s sustainable product categories apply allianzGI’s company integrates human rights in their activities and Sustainable and Responsible Investment Exclusion policy how they react in terms of controversy. for sovereign encompassing the following criteria: issuers, the signature of the 8 major International Labour United Nations Global Compact (UNGC) Principles organization conventions and the universal Declaration of Human Rights is taken into consideration in combina- allianzGI’s Sustainable product categories refrain from tion with an assessment of citizen political rights and civil investing in securities issued by companies with severe liberties (including freedom of association) and free- controversies regarding the principles of the uNGc. an dom of the press. internal engagement process is applied in case a company 2- Environment:includes an assessment of the company’s owned in our dedicated Sustainable product categories direct and indirect environmental impact and risks incur- should be involved in a severe controversy regarding the red. The analysis of sovereign issuers includes a global uNGc principles. This active engagement may extend over appraisal of government environmental policy. our some years. Should this engagement not be able to trigger methodology incorporates the analysis of the sector any change, our Sustainable product categories will divest specific environmental challenges a company faces; from the positions held. 11

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 the way in which a company undertakes its environ- lifetime of each fund to ensure that ESG considerations mental responsibility; and the development of environ- are integrated in the investment process of each asset and mental solutions. along the duration of each fund. 3- Social: includes the issuer’s extent of dialogue with employees, workplace health and safety considerations, 3.4) What principles and criteria linked career management and the relationship with suppliers. to climate change are taken into account General social policy is considered in the assessment of in the funds? government states with a particular focus on topics such as the healthcare system, education, the role allianzGI believes that it is crucial to be able to identify played by women in civil society and infrastructures and assess sustainability risks as they can impact the invest- providing citizens with access to basic needs. ment performance of portfolios negatively. more specifi- 4 - Corporate Governance: includes an analysis of the cally, the risks that can arise from climate change (physical issuer’s willingness and capacity to organize its internal and transition risks) may result in significant economic and structure to limit dysfunction risks. for corporate issuers, financial losses and even impact financial stability. this includes an evaluation of the management board Thus, climate change is a serious issue for all our stakeholders. or Supervisory board composition, the transparency of at allianz Global Investors, climate risks are an important remuneration systems, the existence of independent consideration when assessing potential investments. remuneration, nomination and audit committees, audit and internal controls. for sovereign issuers, includes an In 2021, we have been developing tools aiming at integra- evaluation of systems used in the prevention and fight ting climate change in our analysis. We are now performing against corruption, the stability of political structures and monitoring a quarterly test on most all of the funds and government capacity to introduce necessary reforms. managed by allianzGI, with an annual review of the metho- 5 - Business Behaviour: includes the analysis of the rela- dology. tionships between the issuer and other parties, (client climate-related risks are considered through allianzGI’s suppliers, local authorities, etc.). for companies, this cri- sustainability risk management strategy, which was laun- terion also includes an evaluation of the impact the ched in 2021 and addresses two dimensions: products or services have on society and their safety • analysis and management of sustainability risks; (mainly product safety) as well as the respect of market • analysis and consideration in the investment process of regulations and business practices and ethics (absence principal adverse impacts. of anticompetitive and corruption practices). This domain is not applicable for the Sovereign analysis. our dedicated and experienced Sustainability Research In parallel with this quantitative rating, an internal analysis team analyzes the material implications of climate change is carried out covering a series of issues considered rele- to the economy, sectors' drivers and business models of vant by the Sustainability Research team. This qualitative individual companies. We research the following: analysis may lead to a rating being modified upwards or • How and where global warming as well as increasing downwards by the Sustainability analyst. extreme weather events stress the food system and the potential economic and social repercussions across the We firmly believe in the separation of roles to avoid conflict value chain; of interest. Thus, the quantitative SRI analysis is run by our • What are the key measures and challenges of the auto- IT unit which owns this process. The process is based on a motive sector to address its scope 3 emissions (use of methodology set up by the Sustainability-methodologies products); analytics team in collaboration with the Sustainability • by reviewing an energy production or distribution player, Research team and is reviewed continuously. only Sustai- how its methane performance and related emissions reduc- nability analysts have the authority to override ratings. The tion targets aligned with the latest methane emissions interaction of portfolio managers managing funds within pathway set by the IEa and whether investment plans in Sustainable product categories, is exclusively related to methane leakage prevention systems are credible. identifying which issuers are a part of their investable uni- for more information we refer to two documents: allianzGI's verse. portfolio managers cannot override a rating. TcfD Report 2021 and allianzGI climate policy Statement, for its closed-ended funds (aREf funds) that invest into which can be found in the Key policy Documents section of Renewable Energies, the Investment Team has incorporated our website: a clearly structured and binding process along the entire https://www.allianzgi.com/en/our-firm/esg/documents 12

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 3.5) What is the ESG analysis and evaluation rating and 0 being the ‘worst-in-class’ rating. our SRI ratings methodology of the fund manager/fund cover a global universe comprised of equities, corporate management company (how is the investment bonds, sovereigns, agency and supranational bonds. These universe built, what rating scale is used, etc.)? SRI ratings are built based upon our proprietary model. The model identifies and weights ESG indicators for each SRI Analysis sector, recognizing that ESG issues and their materiality We use a variety of information sources to analyze issuers, will differ from sector to sector. our proprietary model allows including independent extra-financial ratings, agency us to create specific coverage giving us the flexibility to reports, broker reports, dialogue with company represen- meet our customer needs. tatives, cSR experts, NGos, as well as press and other media sources. all data feeds into a proprietary database which has been calibrated in-house and integrates all 3.6) How often is the ESG evaluation of the data, including results of dialogue with issuers or other sta- issuers reviewed? How are any controversies keholders, controversies analysis, SRI analysis of new issuers managed? and a review of profiles established by extra-financial ratings agencies. our SRI methodology is reviewed conti- SRI ratings are reviewed on a monthly basis. There is also an nuously, and the database is updated on a monthly basis. annual review of the methodology. If a security or an issuer The underlying combination of more than one source of is subject to a severe SRI controversy, the Sustainability data, the coherence in the approach across asset classes Research and Stewardship teams study the issues. further- and sectors, and the consistency in the way data is inte- more, the two teams engage with the issuers in question if grated have allowed allianzGI’s dedicated Sustainable deemed necessary. based on these actions a conclusion is product categories to generate performance and evolve drawn. If the judgment by the Sustainability Research Team over time. The main ESG Data providers that supply us is negative, the fund manager will liquidate the position with raw ESG Data are Vigeo Eiris and Sustainalytics. We within a reasonable timeframe allowing for market liqui- supplement these with ISS Ethix and mScI data. These dity. This is especially important for fixed income products sources are reviewed and updated, and we will incorporate where there might be an absence of market liquidity. The new sources, if this is deemed necessary. our quantitative portfolio manager will aim to sell this position as soon as SRI analysis takes the form of our proprietary SRI ratings. market liquidity allows for it to be sold. These are on a scale of 0 to 4, with 4 being the best-in-class 4) INVESTMENT PROCESS 4.1) How are the results of the ESG research four stages: SRI Ratings; Idea Generation, Team Stock integrated into portfolio construction? Selection and portfolio construction. I. SRI Ratings Allianz Global Multi-Asset Credit SRI, at the core of our approach is a proprietary SRI analysis Allianz Global Credit SRI (*) and rating methodology that was first developed in The funds exclude several industry sectors, including 2002 and has been evolving ever since. our analysis tobacco, alcohol, gambling, pornography, and coal pro- identifies best and worst practices, combining these ducers. additionally, they follow a best-in-class approach considerations with the qualitative assessment of our in- with at least 70% of the portfolio rated by the Sustainabi- house Sustainability team. lity Research and Stewardship team. our proprietary model is a tool that has enabled us to evolve and adapt as this sector grows and changes. It Allianz Global Sustainability (*) has made it possible for us to include long-term trends like climate change in our process. at the same time, it The allianz Global Sustainability strategy invests in a has also enabled us to meet and exceed the increasing diversified mix of companies on the global stock market market and regulatory requirements in this space, incor- that generate long-term financial outperformance and porating new forward-looking analysis and simulta- enable a transition to a more sustainable economy. The neously delivering financial performance. investment process is a collaborative effort, consisting of 13

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 In brief: • a minimum SRI rating threshold identifies the best-in- • allianzGI’s SRI investment strategies are built using our class universe. In addition, all allianzGI’s SRI strategies proprietary best-in-class SRI ratings model; implement a Human Rights filter. our analysis in this • This model covers over 10,000 issuers globally across area is based on the issuer’s respect of human rights in equities, corporate bonds, sovereigns, agency and supra- its business conduct, including integration of the uni- national bonds; versal Declaration of Human Rights principles, respect • our model starts by identifying over 200 ESG indicators of major International Labour organization conventions for each sector. These are then weighted according to and signature of the uN Global compact. how material our Sustainability team views each indi- II. Investment Process cator in the context of long-term share prices. Doing so recognises that an ESG issue’s relevance will differ from The allianz Global Sustainability strategy invests in a diver- sector to sector; sified mix of companies on the global stock market that • The model then maps raw ESG company data (obtained generate long-term outperformance and a positive, mea- from specialised external data providers) onto matrices surable impact on society. The investment process is a to form our sector-specific best-in-class ratings. These collaborative effort, consisting of four stages: SRI Ratings; range from 0.00 to 4.00; Idea Generation, Team Stock Selection and portfolio construction. 1- proprietary SRI Ratings on over 10,000 companies. This is for illustrative purposes only. 2- Global listed companies with a market cap over $1bn uSD and a $10mn average daily turnover. Step 1: SRI Ratings Step 2: Idea Generation Global Sustainability portfolios are built from stocks that for liquidity reasons, the strategy only considers listed have achieved a sufficiently high SRI rating. avoiding companies with a market capitalization (free-float) of at reputational risk in the portfolio is also a key component of least uSD 1 billion. In addition, local market practices must the strategy’s investment objective. as such, we start by be taken into account and daily traded volume considered. excluding from our investment universe companies with This narrows down the investable universe to c. 5,000 stocks. significant (5%) revenues from the following industries: The portfolio managers then use all of allianzGI’s research Tobacco, alcohol, pornography, gambling and/or weapons. capabilities to identify companies capable of fulfilling In addition, all allianzGI SRI funds apply minimum exclu- our Quality, Growth and Valuation investment philosophy sion criteria for united Nations Global compact Violators, criteria. This includes other portfolio management teams, companies that derive more than 10% of their revenue the Sustainability function, and Grassroots® Research, our from thermal coal extraction and utility companies that proprietary market research division. generate more than 20% of their revenues from coal. The rest of the screening process is dependent on the Global allianzGI’s equity capabilities Sustainability team’s proprietary SRI ratings model. Research is carried out in the portfolio management teams. In order for a stock to be included in the portfolio, it must Regular company interactions are also a core element of have an SRI Rating categorised as either ‘average’ or ‘best- the Idea Generation process, with the firm’s equity platform in-class’. No stocks rated ‘Worst-in-class’ can be included meeting over 1,000 businesses a year. within the portfolio. moreover, 75% of the portfolio must Every investment professional maintains and is accountable consist of stocks backed by a best-in-class SRI rating. The for a conviction list, which signals their views on stocks they fund has scope to invest up to 25% of the portfolio in stocks cover. There are three ratings for each stock – high, medium that demonstrate average, but improving ESG characteristics. and low – reflecting their stock preferences. Sorting stocks 14

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 by levels of conviction, a low conviction rating still means research effort allows allianzGI to obtain information there is some degree of conviction and a low-rated stock is more quickly and more accurately than the market by still a potential candidate for inclusion in a portfolio. Stocks going directly to the source. Grassroots Research® has been which attract a negative view can be vetoed to indicate credited with identifying numerous under-followed or pre- they should not be included in portfolios. viously und iscovered opportunities. Serving as a comple- conviction lists are shared globally. an advantage of this ment to traditional research, the Grassroots Research® approach is that we fully capture the stock preferences of field force conducts practical investigative fieldwork, high- the whole investment platform, making previously hidden lighting both risks and opportunities. research and investment ideas more widely available. Grassroots Research® produces research that is proactively conviction lists also highlight where opinions differ which requested by investment professionals. currently we com- also helps to promote debate and discussion of ideas. mission over 30 studies per month across the globe to sup- fundamental research activities are supported and com- port conviction in individual stocks and sectors. In-depth plemented by the proprietary Grassroots® Research® net- information is gathered on under-researched marketplace work. trends, the competitive environment and global business Grassroots Research® developments impacting current and potential investments. While Grassroots Research® does not work equally well in Grassroots Research®, a separate and proprietary research all sectors, since it is based on the premise of reaching the entity with over 350 market researchers and reporters, relevant stakeholders, it is particularly valuable in the provides an additional level of investigative fieldwork and consumer, retail, pharmaceutical, telecom services, IT and market research at the local level, across the globe. This leisure industries. Source: allianz Global Investors for illustrative purposes only. Idea generation is facilitated by our Global collaboration Step 3: Team Stock Selection System, an online resource which enables interactive com- once a working universe of stocks has been established munication across the firm. Regular company engagement through Idea Generation, the portfolio managers go is also a core element of the Idea Generation process, with through their own process of stock selection. This leve- the firm’s equity platform meeting over 1,000 businesses a rages in particular the stock selection of allianzGI’s Global year. Growth team. Here, Stock Sponsors present their ideas at all these inputs are cross-checked by the team to source the a weekly meeting, alongside a written investment case for best investment ideas that allianzGI’s global investment all team members to read in advance. platform can offer. 15

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 This investment case details the extent to which a stock Typically, a high conviction stock will have an active posi- meets the team’s quality, growth and valuation criteria, as tion size of between 200-300 basis points. If a stock goes well as its ESG performance. The investment case is pre- beyond a 300 basis point active position, it will be trimmed sented and discussed, with further research or company in order to mitigate any downside risk. Stocks with an meetings potentially required before the discussion is active position of 100 basis points are typically lower conclusive. conviction investments. These will either be recent, new Stocks which are approved by the team are then free to be additions to the fund or alternatively, positions due to be included in all team portfolios, subject to any respective exited that are sources of cash for new ideas. guidelines. once a stock has been approved, the Stock Each stock that is added or removed from the portfolio Sponsor is responsible for maintaining research coverage. is considered for its marginal contribution to risk at the The Stock Sponsor can be any portfolio manager within aggregate portfolio level which further controls the risk the investment team. Having a Sponsor for each stock is an profile of the strategy. The portfolio managers do not excellent tool for keeping the discipline of the investment make any active sector, country or market capitalization process and ensuring that all stocks adhere to a shared allocation decisions. factor risk is monitored and minimi- philosophy. Likewise, regular discussion and anonymous zed so that stock-specific risk is the largest driver of returns. voting ensures a collegiate approach to intellectual The primary risk model used to gauge the effect of new debate. position on the factors driving the portfolio’s ex-ante tracking error is apT. Given that our SRI ratings are sector-relative, at each weekly meeting, the investment Growth team also we are not forced to be structurally underweight certain reviews the structure and performance of its existing port- sectors in order to maintain the ESG integrity of the portfolio. folios, focusing on approved stocks and possible additions or replacements. Discussion centres on the most recent Allianz Securicash SRI, Allianz Euro Oblig Court periods of performance, highlighting those stocks which Terme ISR, Allianz Epargne Monetaire ISR, have added value but also any negative contributors and Allianz Pee Monetaire ISR, Allianz Monetaire (2C), the reasons behind this. This provides the Global Growth Allianz Euro Short Term Bonds SRI, team with a means of measuring stock selection success. Step 4: Portfolio Construction Allianz Rentenfonds (*) Gunnar miller and Robbie miles construct allianz Global our stock-picking strategy is based on the dual focus of Sustainability portfolios at a separate weekly meeting. financial and “Social Responsibility” criteria. The nonfinancial The strategy invests primarily (up to 75% of portfolios) in analysis of securities, based on attention to environmental, companies that are considered best-in-class according to human, sustainable development issues, and societal rela- allianzGI’s proprietary SRI ratings. It can also invest up to tions, allows us to assess the value of a security differently, 25% of the portfolio in ‘average’ rated stocks that have by identifying risks and potential value destructions asso- demonstrated a commitment to improving ESG perfor- ciated with a given issuer, which cannot be revealed by mance. financial analysis alone. This flexibility incentivises the portfolio managers to engage The investment process starts with top down analysis to with investee company managements in order to press for anticipate money market trends and rate changes based continued ESG improvements. We believe that superior on regular studies of the macroeconomic environment, on ESG performance will ultimately translate into share price forecasts of central bank policies and the assessment of appreciation. as a result, this mechanism is an important risk appetite in the market. In the second step, the portfolio source of alpha for the strategy, as well as positive, societal is constructed integrating the active strategies derived from impact. The strategy cannot hold any worst-in-class rated the top-down analysis with portfolio constraints and the names. bottom-up selection supported by our credit and ESG as per the investment philosophy, position sizes are decided research teams. according to the portfolio manager’s level of conviction in The interaction between financial criteria and ESG criteria a stock’s future financial and ESG performance. This may is a permanent aspect in our bottom-up selection process. be further supported by recent Grassroots® Research which The overall SRI rating is calculated for each company within substantiates our longer-term investment case, or clear posi- the investment universe, and these ratings are then used tive momentum in terms of the company’s ESG performance. to populate a proprietary database. This SRI ratings data- 16

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 base reflects our critical evaluation of companies’ ESG • 10% of assets could have an SRI rating ≤ average or not positioning and helps in selecting stocks that may be rated; considered for inclusion in the portfolio. • Excluded issuers (violating the Human Rights criteria, and • at least 90% of portfolio assets must receive an internal issuers addressed by the allianzGI’s SRI exclusion policy) SRI rating ≥ sector average; are not allowed in the portfolio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ource: allianz Global Investors, for illustrative purposes only. Allianz Stiftungsfonds Nachhaltigkeit, lite investments), we try to select the best in their sector Allianz Vermögenskonzept SRI Dynamisch, and apply specific exclusion criteria. Sustainable investing Allianz Vermögenskonzept SRI Ausgewogen, aims to create added value for investors while improving the risk profile. Allianz Vermögenskonzept SRI Defensiv, ESG analysis and evaluation are included in the evaluation Allianz Dynamic Multi Asset Strategy SRI 15, methodology in the same way as traditional financial ana- Allianz Dynamic Multi Asset Strategy SRI 50, lysis, aiming to construct a portfolio with an optimum ESG Allianz Dynamic Multi Asset Strategy SRI 75, quality/financial quality profile. an issuer will therefore be Allianz Euro Balanced included in the portfolio if, and only if, the ESG profile and financial appraisal are both positive. Investment objective of the funds The multi asset portfolio manager is not directly involved The SRI approach, which underlies the selection of indivi- in the security selection within the underlying asset classes. dual securities, involves analysing investments according This is performed by the portfolio management teams res- to ESG criteria. When selecting the individual securities in ponsible for the specific asset classes. This way, we use the the core portfolio and within the scope of the global respective experts on all individual decision levels in the search for opportunities in interesting asset classes (satel- management of the fund. 17

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 az DmaS SRI 15 50 75: a maximum of 20% of the total ensure that this is the case, the certification organization fund may invest in non-SRI exposure in active or passive audits the candidate fund. The decision to award the SRI target funds and long derivatives positions. Short deriva- label is taken independently by the certification body on tives positions are not restricted with respect to SRI criteria. the basis of the audit report. The selected funds are the ESG research is used for risk management, it impacts the registered on an official list of the ministry of finance. The weights of the assets in the portfolio and it has a constrai- multiGestion process is the same as for the other funds of ning power. the team with additional restriction from the Label ISR list. for the fund we apply minimum exclusion criteria follo- The investment process starts with a quantitative analysis wing allianzGI’s Sustainable and Responsible Investment for idea generation. The vast universe of the 40,000 funds Exclusion policy. additionally, a best-in-class approach is is filtered into about 90 groups of assets on a monthly applied that excludes all securities issued by companies basis, with a behavioural approach that generates lists of belonging to the 20% with the weakest SRI Rating based investment ideas. The funds that have received the atten- on a region and sector neutral evaluation in the global tion of fund analysts will be included in a long list, and an equities and EuR bond segment of the fund. extensive qualitative analysis will be applied to certain The fund’s investment process includes top-down and bot- funds on this list. tom-up elements. In terms of ESG, first securities are excluded The fund selection committee meets monthly to decide the based on a best-in-class approach and then the described funds in the investment universe. The target fund universe minimum exclusions are applied. is usually represented by around 650 funds. Allianz Smart Energy, Allianz Clean Planet, The allocation is based on a predominantly quantitative Allianz Positive Change, Allianz Better World approach to market cycles and a fundamental approach Defensive, Allianz Better World Dynamic, (fmaIc). Allianz Better World Moderate, from this selection list restricted to the Label ISR criterion Allianz Global Water, Allianz Food Security, and allocation inputs for certain types of assets (equity funds, bond funds, money market funds, etc.), the manager Allianz Sustainable Health Evolution in charge of the aVIp multi Tempéré ISR fund builds the portfolio, monitoring of allocations and risks is then applied all funds listed above are SDG-aligned funds, which means throughout the life of the fund. that the funds aim to invest worldwide in companies and projects which aim at a positive change on the environ- Allianz Valeurs Durables, Allianz Actions Euro ment and society and fulfil SDGs. Convictions, Allianz Europe Equity SRI, The allianz better World funds are considered article 9 Allianz Epargne Actions ISR Solidaire, funds (products that have sustainable investment as their Allianz Epargne Durable (*) objective). for the SDG-aligned funds, sustainable investments linked There is full integration of the financial and ESG analysis of to SDGs seek both financial returns and positive change. the companies in our investment decision-making process. Thus, our ESG evaluation is incorporated in our company’s Investments do not significantly harm any of the sustai- fundamental evaluation in the same way as traditional nable investment objectives: for the funds, negative impact financial criteria, with the aim to construct a portfolio with should be avoided (do no significant harm principle), an optimal ESG and financial profile. for our SRI analysis, unless it is an acceptable trade-off for a positive change we rely on external research provided by several extra- (e.g. more copper is needed to produce more electric financial rating agencies, with whom we have establi- cars). shed long-term partnership. Nonetheless, far beyond data Allianz Multi Tempéré ISR (*) processing from external research providers, our SRI Research team conducts complementary, in-depth, quali- The fund is a fund of funds managed by the multiGestion tative analysis on the ESG profiles of the companies. for ma Team and invests in funds which comply with the french more information on the ESG analysis process please see Label. This leads to a limited list of target funds which must our answer to question 3.5). respect a series o f criteria divided into six themes defined In addition to our SRI analysis, our selection of stocks is by french decree in order to obtain the SRI label. To based on an in-depth analysis of each company from a financial perspective. 18

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 This analysis includes: all equities held by allianz Valeurs Durables & allianz • fundamentals (analysis of the business model and stra- Europe Equity SRI & allianz Epargne actions ISR Solidaire tegy, growth dynamics, market positioning, intangibles, must be eligible according to our SRI methodology (i.e., restructuring case when applicable); rating equal or above 2 on a scale of 0 to 4) and our finan- • financial analysis (analysis of economic returns, financial cial assessment must be positive. The process is illustrated risks); in the chart below. • valuation (fair value assessment using various valuation methodologies and taking into account long term risks). Source: allianz Global Investors, 2022. for illustrative purposes only Allianz Neo ISR 2020/ 2021, portfolio carbon footprint over time, without any a priori Allianz Climate 2021 (*) sector exclusion. The fund's investment strategy is based on the active and positive selection of stocks, which offer These funds are structured products. from the SRI-uni- solutions to climate change and are part of the transition verse of allianz Valeurs Durables, the limited amount of towards a low-carbon economy. stocks is selected based on the financial requirements for While not applying a priorisector exclusion, we do exclude coupon payments disclosed in their prospectus. climate worst practices on the basis of the following: Allianz Climate Transition (*) • absence of greenhouse gas reduction targets despite undeniable risks in specific sectors; The Europe climate Transition strategy was built upon our • serious environmental controversies; • very high-risk practices (e.g., arctic drilling, deforestation). SRI conviction investment process. Therefore, this process (notably, the financial and extra financial assessment des- after this first filter, our stock selection is based on a three- cribed above) fully applies. In addition, the fund applies a dimensional assessment: specific impact evaluation which looks into the risks and I. performance dimension (“best performers”): the "climate the opportunities associated with the climate transition. performance" of the issuer is assessed using industry- from a climate perspective, our approach seeks to control specific indicators (carbon intensity per GWh for utilities, the portfolio's exposure to carbon risk by monitoring the vehicle emissions in gco2/ km for the automobile indus- 19

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 try, etc.) or failing that, carbon intensity. based on these III. Solutions dimension (“best Solutions”): the product indicators, we select the best performing companies of solutions add value to companies from all sectors of their sector. activity, offering so-called "green" products and services II. progress dimension (“best Efforts“): progress is identi- such as energy efficiency gains, an energy mix that fied through the measuring of "climate performance" favors renewable energies, energy storage solutions, over time (calculation of the three-year change in sector- metal recycling solutions, waste collection and treat- specific indicators or carbon intensity) and several quan- ment solutions, and investments in so-called "green" titative and qualitative improvement indicators: Research and Development. We select companies • reduction of greenhouse gas emissions proven over time; representing “solutions” to the climate change chal- • clear and ambitious objectives; lenges outside of their own sector, which can help sup- • executive compensation linked to the achievement of pliers and/or clients reduce their carbon footprint. certain environmental objectives. Allianz Emerging Markets SRI Bond (*) based on these indicators, we select the companies which make the most efforts to reduce GHG emissions in their at the Sovereign level, our ESG proprietary sovereign fra- sector. mework ranks our universe of c.80 investable emerging countries on these 3 dimensions. Source: allianz Global Investors, 2022. This is for illustrative purposes only. NDc = Nationally Determined contributions to climate change, from the paris agreement. We identified 20 relevant indicators from various public sustainable growth over time. Given emerging markets’ sources (World bank, united Nations, think tanks and specificities and our assessment of relative importance of NGos) and calculated an average score across each of each indicator, we assigned different weights to each one the three pillars. for instance, the governance pillar includes of our three pillars: Environment (20%), Social (30%), indicators measuring the extent of corruption, the strength Governance (50%). The weighted average is our overall of the state, respect for obligations and fiscal transparency. ESG score. These are key factors which often lead to changes in sove- our analysis shows that the ESG score correlates closely reign creditworthiness. We also selected environmental with the markets perception of creditworthiness expressed and social factors, such as measures of inequality, health by the sovereign spread. We can extract useful signals and education, which signal a country’s ability to achieve where market pricing differs from what is implied by the 20

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 ESG score, i.e. where spreads are high despite a good ESG • Divergence of appreciation between the external research score or vice-versa. We recognise that some of the indicators providers, obsolescence or insufficiency of their analysis; used can be slow moving. Therefore, we also combine this • alert from the database on specific ESG criteria; analysis with our expectations of each country’s direction • media and stakeholder controversies (NGos, trade unions, of travel from an ESG perspective. for instance, changes in etc.); governments can lead to quick and radical social and • unrated issuers; environmental policy shifts and improvement or deteriora- • Integration of additional data from brokers, corporate tion in governance. frequent country visits or meetings held Social Responsibility (“cSR”) experts and from meetings with policymakers and local market participants help us to with sustainable development teams of companies. access political factors. The allianz Emerging markets SRI corporate bond strategy The analysis described above allows us to assess the direc- commits to having 100% of the portfolio invested in com- tion of travel at a country level. This analysis occurs for- panies with >1.50 SRI rating scores at the time of purchase mally during our weekly macro review meeting where an – promoting a worst-in-class exclusionary approach. While in-depth review of three to four countries is conducted, on for developed market companies we set higher thresholds, a rotational basis. the 1.50 minimum SRI score threshold considers the fact Each member of the team has responsibility for country that emerging markets companies are still on a transitio- research – usually countries from the same region. Each nary path of development in terms of ESG policies and team member is responsible for covering 10-12 countries. standards. for our dedicated Sustainable and Responsible Investing a 10% bucket exists for issuers that do not currently possess strategies (allianz Emerging markets SRI bond and allianz an SRI score. In such instances the team’s credit analysts Emerging markets SRI corporate bond funds) we use the assess ESG metrics in an integrated fashion within the credit outcome of our ESG framework to exclude countries falling research process, to ascertain whether the ESG credentials below the 10th percentile on each of the three pillars. The of the investment is aligned to the sustainability objectives idea is to insulate portfolios from the worst offenders on of the strategy. each ESG dimension, making sure that a country performing In addition to the SRI team screening, the fixed Income particularly badly on any single pillar is still picked up by team observes a number of exclusionary criteria for issuers. the filter even if it performs better on the other two pillars. The first is where management misleads. Secondly, earnings for instance, it ensures that Venezuela is excluded due to catastrophes are indicative of management who are either significant deficiencies on the governance front, even if it not in control of their companies or who have not been scores above average on the environment pillar. We update transparent in their guidance. The third is where the industry the framework twice a year (in June and December). is in secular (rather than cyclical) decline. finally, it is very Allianz Emerging Markets SRI Corporate Bond (*) difficult to quantify upfront the extent and duration of the financial impacts from product liability issues, so we prefer Specifically for our allianz Emerging markets SRI corporate to avoid companies facing such a situation. bond fund, in addition to the country exclusions at the on a financial level, we seek companies with strong com- sovereign level, we also apply exclusions at the corporate petitive positions within their industry, growth in revenue level based on our proprietary SRI corporate framework. and earnings, and positive cash flow. We also avoid indus- our proprietary corporate model allocates each issuer a tries which are opaque and/or prone to frequent defaults. rating of 0 to 4 in four domains: corporate Governance, once the most attractive sectors have been identified and Environment, Social Development and business behaviour. the universe of issuers has been screened, we look for the We also analyse human rights as a fifth distinct domain, most attractive companies by analysing their business applying this as an ex-ante filter. The weight of the 4 position (industry/ market position, management strategy, domains in the average rating is sector specific. The average track record, philosophy, operating efficiency and ownership rating determines whether it is possible or not to invest in structure). We also evaluate a company’s ability to service the issuer. This selection principle is also reinforced by a all of its debt obligations by reviewing its financial position “worst practice” exclusion rule. The aim of this rule is to (accounting policies, net worth, leverage, profitability, cash ensure that an issuer rating below the minimum require- flow and debt repayment profile). Historic spreads, liqui- ment in any one domain does not qualify as a result of a dity and factors such as maturity, ratings and features are satisfactory overall average rating due to high ratings in also analysed. We use research from moody’s, S&p and the other domains. Each rating could be re-evaluated or fitch, and we have direct access to their analysts. Sell-side modified by the SRI Research Team, who has the final research is also utilised by the research team but plays word, in the following cases: only a minor role in the process. 21

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 The factors that we consider most important when analysing credit issuers are highlighted in the table below. our credit analysts distribute their research to the other members of the investment team on each individual issuer that we cover. Business position Financial position management errors are the primary reason for default, not our analysts assess each company’s credit fundamentals financial ratios. analysts conduct a large number of client to produce a credit opinion and financial model. for asset- meetings/visits and meet the management of every credit backed securities, a thorough examination of the security’s name that we own. If the analyst is happy with the mana- collateral is undertaken. for high yield issues, we analyse gement team and its business and financial strategy, the the covenant package in detail and have developed an next step is a full financial and non-financial analysis. Non- in-house scoring tool to provide a quick summary of any financial analysis will look at industry trends, the positioning limitations on the company or potential adverse impacts. of the business within the industry and its competitive posi- all these considerations are then combined with the market tioning. Where applicable there will be a full assessment technicals and valuations to arrive at the sector and issuer of any restructuring plan. The non-financial analysis will be selections. used for inputs into a financial model that will look at the company’s cash flow, liquidity, refinancing risk, margin trends The credit opinion is a view on the ratings over the next and capital structure. after this stage, if the business model 12-18 months: appears to make sense, the analyst will review any cove- • 5: multiple notch upgrade expected; nants and capital structure to help quantify downside risk. • 4: Single notch upgrade expected; The final stage is to assess the relative value of this com- • 3: No rating change expected; pany and its securities versus a peer group. This will lead to • 2: Single notch downgrade expected; a recommendation to the portfolio managers. • 1: multiple notch downgrade expected. 22

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 Event risk: indicator of potential risks (m&a, asset disposals, ESG factors are also analysed by our Sustainability team share buybacks, equity raise etc): in order to identify the issuers potentially exposed to contro- • positive; versies and the ones excluded from our investment universe • Negative; based on our minimum exclusion criteria on uN Global • Stable. compact violators, weapons, coal and tobacco. The sus- medium term opinion – indicator of default risk: tainability team also provides the investment team with a proprietary SRI rating score which is the basis for bond • Green; selection. • yellow; • Red. The allianz Euro credit SRI investment philosophy is based on a long-term conviction process relying on two pillars: Allianz Euro Credit SRI, extra-financial and financial fundamental analysis. Extra- Allianz Euro Credit SRI Plus (*) financial ESG criteria, and the respect of human rights pro- vide a more exhaustive evaluation of issuers’ long-term risk. ESG factors are incorporated at two distinct levels. on the for this reason, extra-financial analysis is as important as fundamental side, the credit Research Team integrates ESG fundamental analysis within the investment process. criteria in its analysis as credit analysts seek to evaluate any our investment process for allianz Euro credit SRI is based material risk which could result from those areas. on the dynamics illustrated in the chart below. This investment process featured in the chart above consists “worst practice” non-investable rule as a fundamental part on achieving key steps: of the investment process. During this step, the Sustaina- • market risk assessment setting a common foundation for bility research team uses internal & external analysis to outlook discussion, setting strategic corridors for credit beta set up our internal SRI rating; and duration across fixed income portfolios; • fundamental analysis which is based on quantitative ana- • portfolio structure to identify potential alpha sources; lysis, financial modelling, ESG integration and research • SRI analysis with SRI exclusions and Human Rights filter outputs; to avoid exposure to controversial issuers and our scoring • bond selection to assess whether we are being paid for model which is a combination of quantitative ESG analysis the risk embedded into a specific bond; based on a best-in-class approach and reinforced by a • Implementation to monitor and manage the portfolio. 23

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 Allianz Green Bond (*) of research on the “Green” aspects of the Green bond portfolios and notably the assessment of the compliance ESG factors are incorporated at two distinct levels. on the of the bonds with the Green bond principles, the analysis fundamental side, the credit Research Team integrates ESG of the projects financed and of the climate strategy of the criteria in its analysis as credit analysts seek to evaluate issuer. any material risk which could result from those areas. ESG Allianz Green Transition Bond (*) factors are also analysed by our Sustainability team in order to identify the issuers potentially exposed to contro- The results of the ESG research are integrated in the port- versies and the ones excluded from our investment universe folio construction through exclusions and filters described based on our minimum exclusion criteria on uN Global below. Exclusions are applied across the portfolio while compact violators, weapons, coal and tobacco. the filters depend on the type of instrument (corporate or The Green bonds portfolio management team is in charge government bond). for corporates, ESG factors are incorporated at two distinct Allianz Advanced Fixed Income Euro, levels. on the fundamental side for corporates, the credit Allianz Advanced Fixed Income Short Duration, Research Team integrates ESG criteria in its analysis as Allianz Euro Rentenfonds (*) credit analysts seek to evaluate any material risk which could result from those areas. ESG factors are also analysed allianzGI SRI ratings and sustainability research restrict by our Sustainability team in order to identify the issuers the investable universe: only stocks from companies that potentially exposed to controversies and the ones excluded (a) are rated and fulfil the best-in-class approach, (b) are from our investment universe based on our minimum exclu- not part of the allianzGI SRI Exclusion policy, (c) do not sion criteria on uN Global compact violators, weapons, have human rights controversies and (d) are not involved coal and tobacco. The sustainability team also provides in further controversial activities qualify for portfolio the investment team with a proprietary SRI rating score construction. which is the basis for bond selection. Indeed, a minimum SRI rating is required to filter out issuers which could be portfolio construction is based on the remaining eligible exposed to one of the four domains analyzed by our pro- universe by applying an active asset allocation method. prietary SRI model (ESG and business behaviour). Allianz Emerging Markets Equity SRI (*) for emerging market sovereign bonds, we apply a model designed to analyse the sustainable behaviour and per- The team seeks to exploit inefficiencies in emerging markets formance of governments in emerging markets, based on equities via the blending of a scientific investment process 20+ ESG factors. with a human overlay. The team employs a technology 24

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 platform powered by artificial intelligence in a quantitative, portfolio construction is based on the remaining eligible data-driven approach. The portfolio is constructed using a universe by optimizing the portfolio with respect to many best-in-class screening methodology, excluding the bottom constraints. Sustainability research enters in the way that 20% of the investment universe. additionally, ESG scores many indicators are controlled via constraints, for example are fully integrated into the team’s investment process on the overall SRI rating, and hence impact stock selection. and combined with their proprietary behavioral finance- AREF Fund Family (*) focused alpha and risk models. The team also implements a proprietary aI Environmental Sentiment score, which seeks The allianz ESG Integration framework is considered for to identify opportunities and risks through analyzing infor- each of the aREf fund family funds (aIf: alternative invest- mation via a sophisticated natural language processing ment funds) managed by the Infrastructure Equity (IEQ) (NLp) technique, across publicly available research and team. The Team follows the allianz ESG Guideline on company-related transcripts, with the goal or providing Infrastructure (section §3.4.9) when addressing ESG risks independent, internal data to potentially keep one step and opportunities in an investment, as well as allianz SE ahead of external ESG providers. Exclusion policy (§3.9). When looking at investment oppor- Allianz Strategiefonds Wachstum Plus, tunities linked to ESG topics, allianz’ key focus is to enable Allianz Best Styles US Equity (*) the transition to a low carbon economy, promote sustainable development, and to address environmental and/or climate- allianzGI SRI ratings and sustainability research restrict the related concerns. investable universe: only securities from issuers that (a) are Likewise, the IEQ team strives to invest sustainably across rated and fulfil the best-in-class approach and (b) are not green energy infrastructure projects. In order to keep up part of the allianzGI SRI Exclusion policy. with our ambition, we incorporate ESG factors into our portfolio construction is based on the remaining eligible investment processes. During the investment process, it is universe by optimizing the portfolio with respect to many ensured that ESG considerations are integrated into the constraints. Sustainability research enters in the way that portfolio construction. Therefore, the Transaction mana- many indicators are controlled via constraints, for example gement team screens each investment for potential ESG on the overall SRI rating, and hence impact stock selection. and reputational-related risks during the due diligence process. This includes the consideration of sensitive areas Allianz Best Styles Europe Equity SRI, as defined by allianz Group such as environmental conta- Allianz Best Styles Global Equity SRI (*) mination (ground, water – eg, from cleaning solar modules with prohibited chemical products - and air, including co2 allianzGI SRI ratings and sustainability research restrict the emissions), fauna protection (eg, bats), resettlement of investable universe: only securities from issuers that (a) are businesses/people, loss of rights (land and water) or H&S rated and fulfil the best-in-class approach, (b) are not part (health & safety) measures. of the allianzGI SRI Exclusion policy, and (c) are not invol- The due diligence process includes an ESG assessment as ved in further controversial activities qualify for portfolio reflected in the following graph. / / / / / / / construction. ?8(2$'3*-)2*55(55'(")2$52*"2$")(/%*+2 3*%)2&:2)8(2$"#(5)'(")23%&-(55 ! 1$:(5)2($)/;9#4(55 @"$)$*+2:$"*"-$*+2*"A2$'3*-)2*55(55'(")2 B%(A2:+*/2*"*+05$5C F$-("5(2)&274") =4(2=$+$/("-(2 !"#$%&"'(")*+ >&$*$4&*+ !"(%/0 @'3*-) 1$%2 6*)(% <(=*+ ,&-$*+ 3&++4)*")5 @"#(5)'(")2D('&%*"A4' 6*5)( ;$&< =$#(%5$)02 927*>$)*) G+&5$"/ 7(*+)8292 .%(("8&45(2 D*"*/('(")2*"A2E(3&%)$"/2 .&#(%"*"-( ,*:()0 .*52!'$55$&"5 / / / / / / Source: allianz Global Investors, 2020. 25

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 In addition, and applicable to all the aREf fund family the seller or commissioned by the IEQ team relating to vehicles, relevant aspects for equity investments in green ESG in order to define project specific key performance energy assets are reflected in the legal documentation. To indicators (KpIs), or this end, a tailored checklist based on the united Nations • additional information being required, or certain condi- Sustainable Development Goals (SDGs) was created by tions being determined prior to proceeding, or the IEQ team which is a major part of the ESG assessment. • a transaction being declined on ESG grounds. The SDGs checklist indicates whether the investment has a positive, neutral or negative impact on each of the SDGs. for the aREf fund family, the asset management team The checklist is used to assess all investments as part of the controls the day-to-day operations of the companies and due diligence process. The outcome of the assessment, which relationships with suppliers of the projects and therefore is included in the respective investment memorandum of directly manages potential ESG issues, if any, within our each associated investment opportunity, will lead to: assets. The steps of the IEQ team’s identification, analysis • a transaction proceeding in the regular investment pro- and monitoring during the lifetime of the invested assets cesses which will include scrutiny of reports provided by are detailed in the following graph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ource: allianz Global Investors, 2020. In all our aREf fund family products, we pursue the impro- of our assets, also monitored. See the following graph for vement of at least one SDG: the SDG 7 (ensure access to a definition on the mostly applicable SDGs. affordable, reliable, sustainable, and modern energy for Renewable energy assets have an inherent positive value all). In addition, the goals associated with SDG 8, SDG 9, on the achievement of ESG targets. SDG 11, SDG 12, SDG 13, SDG 15 and SDG 17 are, in most 26

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmb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ource: allianz Global Investors, 2020. 4.2) How are criteria specific to climate Allianz Climate Transition (*) change integrated into portfolio construction? The allianz climate Transition fund is managed under a dynamic low-carbon investment strategy in line with the for the general description of the process please see our objective of limiting global warming to 2°c. This approach answer to question 3.4) for funds which have a specific involves sustainable development, likely to impact the focus on climate, see below for a detailed description. business model and the growth and risk profile of compa- nies across various business sectors, and which also create Allianz Global Multi-Asset Credit SRI, potential medium and long-term investment opportunities. Allianz Global Credit SRI (*) our approach aims to limit portfolio exposure to carbon risk by ensuring the reduction of its impact on climate over None of the funds have specific climate change-related the recommended investment horizon, without applying objectives or constraints, other than the specific sector exclu- any sector exclusions targeting industries generating high sions on coal and unconventional oil & Gas. other consi- greenhouse gas emissions. Indeed, we consider sector exclu- derations such as carbon emissions and intensity are factored sion leads to ignoring the problem instead of tackling it. into the Sustainability team’s SRI score through a composite We believe consider it is our financial duty to actively engage of external data and proprietary qualitative analysis. with committed companies and push them towards a genuine Allianz Global Sustainability (*) energy transition. our stock-picking strategy targets two types of companies: allianz Global Sustainability takes a sector relevant approach I. companies demonstrating dynamic progress in terms of to ESG risk, relying on the weighting of our SRI Ratings. In climate impact performance by aligning their strategies the case of climate change, this means that stocks which with energy transition objectives and therefore reducing are exposed to material climate risk will have a greater risks incurred by implementing this type of transition weighting on Environmental factors in their overall SRI rating. (“best performers”, and/or “best Effort” profiles) at the same time, the portfolio managers consider stocks II. companies involved in businesses, products or services from a bottom-up perspective, factoring in their own assess- which reduce greenhouse gas emissions in the real eco- ment of climate change risk in each investment case. nomy and which, therefore, benefit from opportunities provided by energy transition (“best Solution” profiles). 27

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 Source: allianz Global Investors, 2021. a performance of the strategy is not guaranteed and losses remain possible. Allianz Emerging Markets SRI Bond, gement of proceeds, and reporting) is a prerequisite for a Allianz Emerging Markets SRI Corporate Bond (*) bond to be considered green. Eligibility criteria under which bonds are considered as Indicators such as Greenhouse gas emissions, natural resour- “Green bonds” include: ces depletion, sovereign warming potential etc. which refer • a formal statement in the use of proceeds section of the to a country’s contribution to climate change are used to bond prospectus stating that the proceeds will be used calculate our proprietary sovereign E score. by excluding to finance “green” / climate projects; the bottom 10 percentile of countries on the E pillar, we • Internal process by the issuer to identify qualifying projects reduce our exposure to the highest contributors to climate based on sound methodology and clear criteria; change. additionally, for corporate issuers the SRI ratings • management of the proceeds to make sure that they will process described previously captures an Environmental be allocated to the identified projects and not to other pillar assessment. Where a significant environmental contro- general expenses / investments; versyor weakness exists, a zero E pillar score can be assigned • Reporting, at least annually, of the status of the use of to the issuer, which is then incorporated into the portfolio proceeds, the status of projects and the actual environ- construction process. for both funds there is also an ability mental impact. to measure aggregate carbon footprint versus benchmark, to produce an environmental “key performance indicator” The evaluation is followed by the analysis of the projects (KpI) for reporting environmental risk relative to benchmark. financed with the Green bond issuance proceeds. To be eligible, they have to be part of the Green projects list defined Allianz Green Bond (*) internally by allianzGI based on research from the climate bonds Initiative (cbI), a world-class reputation organisation, The strategy is essentially investing in green bonds and as which provides a science-based evaluation of the climate a consequence we consider it to be invested in assets pro- change mitigation impacts of the different types of projects. viding solutions to climate change or other sustainability allianzGI has been a partner of the cbI since 2015. challenges. criteria specific to climate change are constantly This analysis is completed by an evaluation of the ESG integrated into portfolio construction as our fundamental profile of the issuer in order to avoid controversial issuers. analysis starts by assessing whether a bond is green or not. In case an issuer is subject to an alert confirmed by our This analysis starts with checking whether the bond structure internal Sustainability team on one of the four domains is in line with the Green bond principles or not. The respect analysed (Environment, Social, business behaviour and of those principles (use of proceeds, internal process, mana- corporate Governance), the bonds from this issuer would not be eligible to the Green bond strategy. 28

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 Thus, the eligibility of an issuer is determined by the absence This model enables us to analyse more than 20+ ESG cri- of any alert on its overall profile and especially on Human teria for approximately 80 sovereigns. Rights. This investment rule enables the fund to avoid Allianz Strategiefonds Wachstum Plus, issuers under controversy on specific topics and to keep in its investment universe companies where we believe the Allianz Best Styles US Equity (*) ESG profile could have strong improvement potential, the aim being to be able to finance companies which have not climate change considerations enter by excluding securities proceeded yet to their energy transition to a business model from (a) issuers that derive more than 10% of their revenue aligned with the goal of the paris agreement. from thermal coal extraction and (b) utility companies that The last step of the analysis is focused on the credibility of the generate more than 20% of their revenues from coal in line issuer’s approach regarding its transition to a low carbon with the allianzGI SRI Exclusion policy. In addition, securities model. We want to favour Green bonds from issuers who from issuers where more than 30% of their electricity produc- really have set up a sound strategy to mitigate the nega- tion is based on coal are excluded according to allianzGI tive environmental impacts of their activities and we want firm-wide exclusions. In the portfolio construction based to avoid supporting issuers for which we think the use of on the remaining eligible universe, the portfolio’s carbon the Green bond market has been made more for commu- footprint is managed, and a reduction of greenhouse gas nication / marketing purpose without real ambition and emissions compared to the market index is targeted. commitment towards future generations. Allianz Best Styles Europe Equity SRI, Allianz Green Transition Bond Allianz Best Styles Global Equity SRI (*) The strategy invests notably in green bonds, in bonds from climate change considerations enter by excluding securities corporate issuers having committed to SbTi and in emerging from (a) issuers that derive more than 10% of their revenue market sovereign bonds with a preference for those showing from thermal coal extraction and (b) utility companies that a better environmental performance and a credible transi- generate more than 20% of their revenues from coal in line tion strategy. Specific criteria are integrated in the structure with the allianzGI SRI Exclusion policy. In addition, securities of the different buckets of the portfolio as describe below: from issuers where more than 30% of their electricity produc- tion is based on coal are excluded according to allianzGI Green Bond bucket firm-wide exclusions. moreover, securities from issuers are criteria specific to climate change are constantly integra- excluded which are involved in the production of arctic ted into portfolio construction as our fundamental analysis drilling, production and / or exploration of oil sands with starts by assessing whether a bond is green or not. This more than 5% of revenues, or which are involved in the assessment relies on three steps: the alignment of the bond production of hydraulic fracturing and/or which provide structure with the Green bond principles, the analysis of services in relation to hydraulic fracturing of more than 5% the projects financed to make sure that they are aligned of their revenues. In the portfolio construction based on the with our list of eligible projects, and the analysis of the remaining eligible universe, the portfolio’s carbon footprint issuer’s climate strategy. is managed, and a reduction of greenhouse gas emissions SBTi corporate bonds bucket compared to the market index is targeted. The fund also invests in bonds from issuers having commit- AREF Fund Family (*) ted to SbTi with the aim to identify companies with credible decarbonisation pathways, leaders in the way towards net In each of the aREf fund family products, the carbon emis- zero. The SbTi criteria is integrated as a basis of bond sions avoidance is measured and monitored. The impact selection for this bucket. on carbon emission reduction of the operational project is EM Sovereign bucket compared to a “business-as-usual” national scenario. The The fund seeks opportunities in emerging economies that information on emissions per mWh for each country is based are transforming themselves, by implementing a model on the “Total Supplier mix”, which is taken from the study for sustainable growth. It avoids those sovereigns that are “European Residual mixes. Results of the calculation of reluctant to change and the ones with a poor ESG perfor- Residual mixes for the calendar year 2018” published by mance. To identify the best sovereign bonds, we rely on the association of Issuing bodies on 28 may 2019 (Version a model designed to analyse the sustainable behaviour 1.1) as of today, our carbon reporting fulfils the require- and performance of governments in emerging markets. ments of all our investors and is aligned with the french Energy Transition Law in its article 173. 29

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 I. Investment policies – Disclosure of ESG criteria changes in the physical climate. However, as part of the • The general approach used by the Infrastructure Equity allianzGI Infrastructure Equity investment process, insu- Team rance standards for photovoltaic and wind parks were alongside the implementation of the new french legisla- developed in cooperation with alternative Green Insurance, tion, the portfolio management Team (hereafter the “Team”, a leading European renewable energy insurance team. “pmT”) incorporated, as of february 2017, a new process following the requirements of the established standards, to ensure that ESG considerations are integrated into the all projects have insurances which cover (among other investment process of the funds the Team manages. pmT things) natural hazards and business interruptions due to created a tailored checklist based on the Sustainable extreme weather events such as storms, earthquakes and Development Goals (“SDGs”). The SDGs were developed floods and accordingly protect the assets financially to a and published by the united Nations, and will be used to large extent against physical climate risks. accordingly, indicate whether the project has a positive, neutral or the exposure of the fund to physical climate risks can be negative impact on each of the SDGs. as of february 2017, considered as low. future investments have been assessed along the checklist • Legal climate risks in every investment process as part of the due diligence 2DII defines legal climate risks as risks related to a litigation and the result has been included in the respective invest- on liability risks associated with climate change. Invest- ment memorandum. assets should only be acquired if ments in renewable energy assets are generally regarded the contribution to each of the SDGs is either positive or as climate friendly. Thus, litigation on liability associated neutral. In case of a negative contribution, this will be dis- with climate change can be regarded as low. cussed in the acquisition committee of the fund. III. Substantial Contribution Analysis • Assessment for AREF and Physical Risk Assessment all of aREf’s investments were selected in accordance The activity has implemented physical and non-physical with the relevant ESG standards and were retroactively solutions ("adaptation solutions") that substantially reduce assessed in accordance with an ESG checklist as descri- the most important physical climate risks that are material bed above. Given the fact that the funds are exclusively to that activity. invested in onshore wind farms and photovoltaic plants, The physical climate risks that are material to the activity the analysis showed that all assets meet the criteria of the have been identified from those listed in the figure below ESG checklist and thus comply with the ESG criteria. performing a robust climate risk and vulnerability assess- all investments are in line with general ESG considerations, ment on a best effort basis given the data available. The as the fund’s purpose is to finance renewable energy climate risk and vulnerability assessment are proportionate assets instead of e.g. carbon intensive assets. to the scale of the activity and its expected lifespan. II. Disclosure of climate-related financial risks The climate projections and assessment of impacts are • Carbon risks based on best practice and available guidance and take carbon risks are defined as techno-economic risks linked into account state-of-the-art science for vulnerability and to the transition to a low-carbon economy. The fund’s risk analysis and related methodologies in line with the investment strategy is focused on zero-carbon emission most recent Intergovernmental panel on climate change renewable energy technologies. Due to this strategy, carbon reports (Ipcc.ch) scientific peer-reviewed publications and risks for the fund can be considered as low. open sources or paying models. • Physical climate risks - Do not adversely affect the adaption efforts or the level physical climate risks are defined as risks related to the of resilience to physical climate risks of other people, of physical impacts of climate change. as all other real nature, of cultural heritage, of assets and of other economic assets, renewable energy plants are also exposed to activities; 30

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 Figure: Classification of climate-related hazards - favour nature-based solutions or rely on blue or green upon the implementation of procedures to comply with infrastructure to the extent possible; new Eu regulations we have set up the usage of a physical - are consistent with local, sectoral, regional or national risk model to quantify climate risks across our portfolios. adaptation plans and strategies; This tool allows to determine what grade of risk each asset - are monitored and measured against pre-defined indi- corresponds to, for a given peril, at a given time period. cators and remedial action is considered where those additionally, to the risk grade, the tool provides an assess- indicators are not met; ment of average monetary loss for each case, as well as - complying with the DNSH technical screening for that a worst-case scenario financial analysis in case of a high activity as detailed in this report §.6. impact low probability event. • Physical Risk Assessment IV. Do no Significant Harm Policies 31

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 4.3) How are the issuers that are present in team’s credit analysts assess ESG metrics in an integrated the portfolio, but not subject to ESG analysis fashion within the credit research process, to ascertain evaluated (not including mutual funds)? whether the ESG credentials of the investment is aligned to the sustainability objectives of the strategy. Where an issuer is not formally rated by the Sustainability Allianz Advanced Fixed Income Euro, Research team, the credit research analysts and portfolio managers will still consider ESG factors in their appraisal; Allianz Advanced Fixed Income Short Duration, this includes considerations of corporate governance or Allianz Euro Rentenfonds (*) environmental risks for example. Even in securitized assets, the team will look at factors such as energy efficiency and Through research we are able to gain an information natural disaster risk for commercial mortgage-backed advantage by developing an in-depth understanding of issues, or sponsor governance practices in other asset- the risks embedded in a security. for the advanced fixed backed issues. Income strategy, the primary source of research is allianzGI’s Allianz Global Sustainability, advanced analytics. Allianz Valeurs Durables, allianzGI’s advanced analytics is based on advanced pro- Allianz Actions Euro Convictions, prietary quantitative models. These models allow us to understand the complex relationships between numerous Allianz Europe Equity SRI, economic variables and to reduce the complexity of these Allianz Epargne Actions ISR Solidaire, relationships to make them more palatable and concrete Allianz Epargne Durable, for the portfolio manager. Allianz Climate Transition (*) We also recognize that classic quantitative approaches can be poor in predicting structural breaks in economic all the stocks in the portfolio are subject to an ESG analysis. relationships, especially during severe crises. This is due to Allianz Stiftungsfonds Nachhaltigkeit, the fact that many models try to capture those factors that were particularly good at explaining past events and, the- Allianz Vermögenskonzept SRI Dynamisch, refore, ignore indicators that may be relevant for future Allianz Vermögenskonzept SRI Ausgewogen, crises. our response is to take different views on the markets Allianz Vermögenskonzept SRI Defensiv, and constantly challenge what we observe through inno- Allianz Dynamic Multi Asset Strategy SRI 15, vative models. Allianz Dynamic Multi Asset Strategy SRI 50, using advanced analytics, we consider: Allianz Dynamic Multi Asset Strategy SRI 75, • Global sovereign bonds: through our research we analyse the ability, and the willingness to pay, of 110 sovereign Allianz Euro Balanced (*) issuers. • Global covered bonds: our research covers the legal fra- ESG analysis is performed on all single securities in the mework, macroeconomic environment, standalone issuer fixed income and equity sleeve. strength and covered pool quality for covered bonds Allianz Smart Energy, Allianz Clean Planet, issuers globally. • Global corporate bonds (financials and non-financials): Allianz Positive Change, Allianz Better World We systematically analyse the fundamental strength of Defensive, Allianz Better World Dynamic, global corporate issuers to obtain risk clustered classes Allianz Better World Moderate, of corporate bonds. This feeds into our Rich/ cheap ana- Allianz Global Water, Allianz Food Security, lysis tool, which measures the attractiveness of individual Allianz Sustainable Health Evolution (*) bonds along the yield curve. • Global Securitized: we cover over 300 transactions of ESG analysis is performed on all single securities. securitized issuance, including abS/mbS in Europe and in the uSa. Allianz Emerging Markets SRI Bond, a condition sine qua non for inclusion in an advanced Allianz Emerging Markets SRI Corporate Bond (*) fixed Income managed portfolio is that the issue and/or issuer has been internally rated using an advanced fixed as mentioned above, a 10% bucket exists for issuers that Income credit Rating methodology. The advanced fixed do not currently possess an SRI score. In such instances the Income team has developed several rating methodologies, each suited to a specific fixed-income asset-class. 32

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 The success of this approach has meant that the advanced impacts the investments, including: fixed Income strategy has never suffered a default since • consideration of principal adverse Impact risks along its inception in 1999. selected key performance indicators such as carbon AREF Fund Family (*) emissions, exposure to sectors that are affecting climate change more than other sectors, human rights, and for the Equity funds in scope and the aREf family funds labour rights; all issuers are subject to ESG analysis. • analysis that companies do not significantly harm Sustai- nable Investment objectives in accordance with principle adverse impact indicators; 4.4) Has the ESG evaluation or investment • Review and analysis to ensure good governance prac- process changed in the last 12 months? tices and minimum social safeguards are followed; • Respect of an internal checklist based on SDGs to deter- mine within the investment process the nature of the Allianz Emerging Markets SRI Bond, impact on each SDG; Allianz Emerging Markets SRI Corporate Bond (*) • Respect of minimum exclusion criteria (SRI minimum exclusions); To increase the focus of our framework on the pressing glo- • as well as the integration of ESG considerations in the balclimate emergency, we have included a new indicator investment process of the managed fund. within the Environmental pillar that captures a sovereign’s warming potential, based on Nationally Determined contri- butions (NDcs). NDcs are non-binding national plans to 4.5) Is a part of the funds invested in entities tackle climate change, in order to achieve global targets, pursuing strong social goals/social enterprises? set by the paris agreement. We added this indicator to our Environmental pillar indicators’ set and removed the pre- Allianz Global Sustainability (*) viously utilized Environmental performance Index. our fra- mework remains otherwise unaltered. yes. many portfolio holdings are strongly aligned with Allianz Emerging Markets Equity SRI (*) social goals. for example, the health care companies astra Zeneca and Novo Nordisk actively target better access to yes. The Emerging markets Equity SRI fund was previously medicine across emerging markets and/or disadvantaged managed by the Systematic team in frankfurt, which was communities. Similarly, consumer goods businesses like transferred to the Systematic team in San Diego, in august Nestlé have firm commitments to improving supply chains 2021. The prior investment process combined a mix of and agricultural practices. Thus, while allianz Global Sustai- long-term successful investment styles such as value and nability does not have a specific remit to buy companies momentum, with a more diversified set of holdings and aligned with such objectives, our investment objective to lower tracking error. The current investment process uses a enable the transition to a more sustainable economy means proprietary set of factors, focused on behavioral finance there is natural overlap. and aI, with a greater conviction portfolio and higher Allianz Epargne Actions ISR Solidaire (*) tracking error. AREF Fund Family (*) The fund is a solidarity fund with strong social focus as reco- gnized by its french label finansol. although the ESG evaluation process has not changed in allianz Epargne actions ISR Solidaire is a solidarity fund the last 12 months, we have implemented additional dis- that meets the requirements of the french Law on the closures/reporting as per the new SfDR regulation in place. modernization of the Economy of august 4, 2008, which The fund invests in the energy infrastructure sector with a imposes on company Savings plans the obligation to offer focus on Renewable Energy assets like wind and photovol- at least one solidarity fund to its beneficiaries. Solidarity taic plants, on a long-term basis, through equity investments. finance connects savers who seek to give meaning to their The fund is fully invested as of the current fiscal period. money to companies and associations with strong social and environmental utility, typically dedicated to the fight The investment manager took several actions in the repor- against exclusion, the improvement of social cohesion or ting period to address, avoid or mitigate principal adverse sustainable development. 33

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 allianz Epargne actions ISR Solidaire is a fund targeting • In the aREf fund family, where an Rcp policy is incorpo- financial performance by selecting companies whose social rated for aREf III, social issues such as fair wage and qualities are deemed to be of superior quality. our social treatment are covered. strategy aims both to protect the portfolio against social • Employee diversity: in future European transactions, there risks, but also to take advantage of the most advanced might be a specific focus on the employment of refugees companies in this area. The social criteria we take into with a willingness to be integrated into the European account concern different levels of the value chain, from society; progress against targets to be monitored. the company's relationship with its suppliers to the life of the product and its impact on society, including the mana- gement of the company's human capital. 4.6) Do the funds engage in securities lending AREF Fund Family (*) activities? at this time, allianzGI have a number of clients who speci- our products aim to contribute to meet our clients’ targets fically request that we participate in securities lending in on environmental (“E”), but also social (“S”) goals. their segregated portfolios, and in these cases, we have The “S” for “social” is one of the components the IEQ team arranged an agency lending agreement with a third party measures when investing in Renewables. There are several provider. To facilitate timely return of holdings (e.g. to metrics to measure the “social” impact of a renewable accommodate sale, dividend, proxy Voting or corporate energy asset and one of them is the gender equality / per- action purposes), our current lending arrangements contain sonnel diversity. Diversity has been one of the aspects guarantees referring to this, allowing for securities on loan considered in aREf III, the aREf fund family’s latest vehicle to be recalled in a timely manner. The counterparty selec- which has a focus on investments in the uS. tion process does not formally integrate ESG criteria. In aREf III, the IEQ team adopted a Responsible contractor Allianz Global Multi-Asset Credit SRI, policy (“Rcp”) for investments in renewable energy projects. Allianz Global Credit SRI (*) Developed in partnership with the North america’s building Trades unions (“NabTu”), the Rcp policy aims at fostering from 15 December 2021, all funds listed above ceased to bidding by unions on construction and maintenance contracts have permission to engage in securities lending. prior to this, attached to the investment projects, requires performance securities lending was permitted but never implemented. reporting from contractors and promotes fair wages, benefits, gender equality and diversity as well as working conditions for those engaged in the invested projects. 4.7) Do the funds use derivative instruments? as another example of our invested assets improving the The funds may use derivatives, though in practice this does social acceptance of wind projects, it is worth recounting not happen frequently. The use and constraints are outlined the experience with our project “Windpark Köhlen”. one in the prospectus for each fund. Generally speaking, the and a half years ago, we started a re-labelling of our wind following derivatives can be used: interest-rate futures, energy turbines at the windfarm in order to reduce the equity index futures and interest-rate swaps. See below for light disturbances caused by the flashing of the rotors to more information per fund. the local communities. In general, and depending on the technology, project Allianz Global Multi-Asset Credit SRI, location and permitting, more and more social metrics are Allianz Global Credit SRI (*) assessed in our aREf fund family. below are some examples. • The impact of noise and vibration on residents and busi- The funds do use derivatives, primarily for hedging currency nesses from an asset under construction, which is to be and interest rate risk. The use and constraints are outlined measured by our Epc (engineering, procurement, construc- in the prospectus for each fund. The instruments used most tion) contractors and supervised within the construction frequently are forward fX and bond futures. The Global supervision tasks of our engineers. multi-asset credit SRI fund makes use of short positions in • Health and safety metrics such as accident rates, disability equity index futures to hedge credit risk (it may not own access, security, labour standards in procurement policy long positions). The Global credit SRI fund has also used (or similar), affordable workforce housing, social enterprise Index credit Default Swaps (cDS) to manage credit risk partnering, community development (and as to be compi- exposure. led in the Epc and/or o&m (operation and maintenance agreements). 34

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 Allianz Global Sustainability, Allianz Multi Tempere ISR (*) Allianz Valeurs Durables, Allianz Actions Euro Convictions, Derivatives are used to a limited extent for efficient portfo- lio allocation and especially for risk management purposes. Allianz Europe Equity SRI, futures are used in practice to hedge the equity and/or Allianz Epargne Actions ISR Solidaire, bond exposures. Allianz Epargne Durable, Allianz Climate Transition (*) Allianz Emerging Markets SRI Bond, although some derivative instruments are allowed in the Allianz Emerging Markets SRI Corporate Bond (*) prospectus these are not used in practice. both funds may use currency forwards or futures for hed- Allianz Neo ISR 2020/ 2021, Allianz Climate 2021 (*) ging purpose (interest rate or currency hedging). The funds use derivative instruments, being structured Allianz Euro Credit SRI, Allianz Euro Credit SRI Plus, products. Allianz Green Bond, Allianz Green Transition Bond (*) Allianz Securicash SRI, Allianz Epargne The strategies mainly use currency swaps, interest rate Monetaire ISR, Allianz Pee Monetaire ISR, futures and cDS on iTraxx indices for hedging or efficient Allianz Monetaire (2C), portfolio management purpose. Allianz Euro Short Term Bonds SRI (*) Allianz Advanced Fixed Income Euro, Interest-rate derivatives can be used, solely to hedge inte- Allianz Advanced Fixed Income Short Duration, rest rate risk. The fund does not enter Total Return Swaps. Allianz Euro Rentenfonds (*) Allianz Euro Oblig Court Terme ISR (*) yes, but for the advanced fixed Income strategy, deriva- tives are not an essential part of our approach. If they are both credit and investment rate derivatives can be used for used, typically it is to fine tune duration using futures or efficient portfolio management to hedge the portfolio and/ enter relative-value positions. or marginally add value but are not used as major perfor- mance contributors. The investment in cDS (selling protection) is mainly done 4.8) Do the funds invest in mutual funds? on an opportunistic basis at very short maturities. on the Allianz Global Multi-Asset Credit SRI, other hand, cDS (buying protection) can be used to hedge individual credit exposures. In no case will this type of Allianz Global Credit SRI (*) instrument be used for speculative purposes such as, for example, taking a short position on an issuer. both funds may invest up to 10% in other allianzGI mutual funds, subject to ucITS and prospectus rules and internal Allianz Stiftungsfonds Nachhaltigkeit, approvals. Allianz Vermögenskonzept SRI Dynamisch, Allianz Global Sustainability (*) Allianz Vermögenskonzept SRI Ausgewogen, Allianz Vermögenskonzept SRI Defensiv, for this fund it is permitted to invest up to 10% in other Allianz Dynamic Multi Asset Strategy SRI 15, allianzGI mutual funds, however not used by the portfolio Allianz Dynamic Multi Asset Strategy SRI 50, management team. Allianz Dynamic Multi Asset Strategy SRI 75, Allianz Securicash SRI, Allianz Epargne Monetaire ISR, Allianz Euro Balanced, Allianz Smart Energy, Allianz Pee Monetaire ISR, Allianz Monetaire (2C), Allianz Clean Planet, Allianz Positive Change, Allianz Euro Short Term Bonds SRI (*) Allianz Better World Defensive, Allianz Better World Dynamic, Allianz Better World Moderate, as a short-term money market fund, allianz Sécuricash SRI Allianz Global Water, Allianz Food Security, usually does not invest in other funds. However, it would be allowed to invest up to 10% of its assets in other short-term Allianz Sustainable Health Evolution(*) money market funds managed by allianz Group entities. yes. 35

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 Allianz Euro Oblig Court Terme ISR (*) Allianz Multi Tempere ISR (*) for these funds it is permitted, however not used by the yes, this is a fund of funds. portfolio management team. It might be used for cash Allianz Valeurs Durables, Allianz Actions Euro management purposes. In this case, we invest in allianz Securicash SRI which is an SRI fund. Convictions, Allianz Europe Equity SRI, Allianz Stiftungsfonds Nachhaltigkeit, Allianz Epargne Actions ISR Solidaire, Allianz Allianz Euro Balanced (*) Epargne Durable, Allianz Climate Transition (*) all these funds may invest up to 10% in other allianzGI for these funds it is permitted, however not used by the port- mutual funds, subject to ucITS and prospectus rules and folio management team. It might be used for cash manage- internal approvals. ment purposes. In this case, we invest in allianz Securicash SRI which is an SRI fund. Allianz Dynamic Multi Asset Strategy SRI 15, Allianz Euro Credit SRI, Allianz Euro Credit SRI Plus, Allianz Dynamic Multi Asset Strategy SRI 50, Allianz Green Bond (*) Allianz Dynamic Multi Asset Strategy SRI 75 (*) for these funds it is permitted, however not used by the all these funds may invest up to 20% in other allianzGI portfolio management team. It might be used for cash mana- mutual funds, subject to ucITS and prospectus rules and gement purposes. In this case, we could invest in allianz internal approvals. Securicash SRI which is an SRI fund. Allianz Vermögenskonzept SRI Dynamisch, Allianz Green Transition Bond (*) Allianz Vermögenskonzept SRI Ausgewogen, Allianz Vermögenskonzept SRI Defensiv (*) The fund can invest in mutual funds up to 10%, however this option has not been used by the portfolio management all these funds may invest up to 30% in other allianzGI team. It could be used for cash management purposes. mutual funds, subject to ucITS and prospectus rules and Allianz Advanced Fixed Income Euro, internal approvals. Allianz Advanced Fixed Income Short Duration, Allianz Smart Energy, Allianz Clean Planet, Allianz Euro Rentenfonds (*) Allianz Positive Change, Allianz Better World Defensive, Allianz Better World Dynamic, all 3 funds currently do not invest in target mutual funds Allianz Better World Moderate, Allianz Global but are allowed to do so according to the respective fund prospectus. Water, Allianz Food Security, Allianz Sustainable Health Evolution (*) The better World fund family can invest up to 10% in mutual funds. (*) all funds in the List of funds covered by the EuRoSIf code 2021 may not be available for sale in all jurisdictions or to certain categories of investors in Eu and apac Jurisdictions. These are named for illustrative purposes only under the rule of the EuRoSIf code 2021 Reporting, not a recommendation or solicitation to buy or sell any particular security. 36

EuRoSIf EuRopEaN SRI TRaNSpaRENcy coDE - DEcEmbER 2021 Investing involves risk. The value of an investment and the income from it will fluctuate and investors may not get back the principal invested. past performance is not indicative of future performance. This is a marketing communication. It is for informational purposes only. This document does not constitute investment advice or a recommendation to buy, sell or hold any security and shall not be deemed an offer to sell or a solici- tation of an offer to buy any security. The views and opinions expressed herein, which are subject to change without notice, are those of the issuer or its affiliated companies at the time of publication. certain data used are derived from various sources believed to be reliable, but the accuracy or completeness of the data is not guaranteed and no liability is assumed for any direct or consequential losses arising from their use. 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