Global Corporate Governance Guidelines Shareholder resolutions our vote direction, we take into account the company’s current state of policies and AllianzGI customarily reviews shareholder disclosure, the potential impact of non- proposals concerning corporate governance compliance as well as the nature and scope of and broader sustainability issues, including for the company’s operations. AllianzGI supports example proposals related to climate change proposals asking companies to report on action, reporting on climate change or emissions environmental damage of their operations in and increasingly proposals related to social protected regions. We also support resolutions issues such as gender and racial/ethnic diversity asking companies to adopt recycling strategies. and human rights-related topics. Given the AllianzGI votes for proposals requesting a variety and variability of shareholder proposals, company to report on or adopt a policy on it is often difficult to develop policy positions on water-related risks. the issues raised by shareholders; hence we prefer to review and vote on a case-by-case Product Safety and Toxic/Hazardous basis, taking account of factors such as the Materials: AllianzGI supports proposals nature of the proposal, whether it might be requesting that a company reports on its overly prescriptive in nature as well as the policies, initiatives, procedures, and oversight company’s policies and progress. Nevertheless, mechanisms related to toxic/hazardous the positions described below outline our materials or product safety in its supply chain, as general voting stance in particular areas. well as resolutions requesting that companies develop a feasibility assessment to phase out AllianzGI supports proposals that ask company certain toxic/hazardous materials, or evaluate boards and management to enhance and disclose the potential financial and legal transparency, adhere to internationally risks associated with utilizing certain materials. recognized standards and principles, and give greater consideration to sustainability issues Diversity and human capital management: deemed material to the long-term performance AllianzGI supports proposals seeking enhanced of the company or to key stakeholders (eg, reporting of the company’s efforts to enhance employees, local communities). diversity of boards, management and workforce. We will support shareholder proposals seeking Shareholder resolutions relating to enhanced reporting of human capital data, environmental and social issues including composition of the workforce, Climate change: AllianzGI supports shareholder employee turnover, absenteeism rates, gender proposal asking companies to report on their diversity, racial/ethnic diversity, and other useful climate change strategy in alignment with the indicators that help investors assess companies’ Paris Agreement and within the framework human capital management practices. AllianzGI described above as well as environmental supports resolutions seeking introduction of policies. We support shareholder proposals policies and statements that explicitly prohibit seeking information on climate-related financial, discrimination and promote equal opportunities physical or regulatory risks and how the at investee companies. We support resolutions company identifies, measures, and manages asking for improved reporting on gender and such risks. We support shareholder proposals racial/ethnic pay gaps taking into account the calling for the reduction of GHG emissions, company’s policies and disclosure as well as subject to our assessment of the company’s recent controversies. If required in our view, we efforts and improvements achieved. We also may support proposals requesting external vote for shareholder proposals requesting a audit of the issue. report/disclosure of a company’s goals on GHG emissions from operations and/or products as Human Rights and Labour Rights: AllianzGI well as progress against these goals. AllianzGI supports proposals requesting a report on the supports proposals requesting that a company company’s or its suppliers’ labour and/or human report on its energy efficiency policies and the rights standards and policies, as well as feasibility of developing/switching to renewable implementation of human rights standards and energy sources. workplace codes of conduct in general and in relation to countries in which there are Environmental impact: AllianzGI supports systematic violations of human rights. AllianzGI resolutions that ask companies to outline may support shareholder proposals that call for environmental policies and the community independent monitoring programs in impact of their operations. When determining conjunction with recognized human rights 20