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