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