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