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