Global Corporate Governance Guidelines groups to monitor compliance. We expect Lobbying: AllianzGI generally supports companies to comply with international labour shareholder proposals that ask for transparency standards as outlined by the International on climate lobbying to ensure that a company’s Labour Organization’s Fundamental lobbying efforts are in line with their stated Conventions. AllianzGI supports shareholder decarbonisation targets. proposals to adopt labour standards for foreign and domestic suppliers to ensure that the Tax transparency: AllianzGI generally supports company will not do business with suppliers that shareholder proposals that ask for improved tax manufacture products using forced labour, child transparency and/or country by country labour, or that fail to comply with applicable reporting. We note regulatory developments on laws protecting employee’s wages and working tax transparency and are supportive of progress conditions. We will also vote for proposals towards more consistency between markets. requesting that a company conducts an assessment of the human rights risks in its operations or in its supply chain, or report on its human rights risk assessment process. AllianzGI votes case-by-case on resolutions requesting that a company reports on workplace safety and/or security risks taking into account compliance with applicable regulations, disclosure standards and controversies. Shareholder proposals related to governance issues AllianzGI uses its Corporate Governance Guidelines as the main reference point for considering corporate governance proposals put forward by other shareholders. Our duty is to act in the interest of our clients at all times, so we consider each proposal on merit and will support those deemed to be beneficial for the company and our investment. Executive remuneration: AllianzGI generally supports shareholder proposals related to executive remuneration that call for improved disclosure, greater link between pay and performance, increased accountability to shareholders and elimination of problematic practices identified under AllianzGI’s policy. Where proposals are prescriptive on quantum of pay and KPIs used under the incentive schemes, we take decisions on a case-by-case basis. Political donations: AllianzGI does not support using shareholder funds for political donations and supports disclosure and justification to shareholders of all substantial political expenditures. Where management puts forward a resolution to avoid a similar shareholder proposal, AllianzGI will only support the management proposal if it is more shareholder friendly than the original shareholder proposal. However, if the management proposal is less shareholder friendly, we will vote against the proposal and may vote against the re-election of the Governance Committee members. 21