Global Corporate Governance Guidelines AllianzGI is supportive of the introduction of Cyber risk has become a part of modern extended auditor reports in all jurisdictions as we business landscape with all companies facing find them insightful and useful for investors, as varying degree of exposure. AllianzGI expects well as being conducive to greater accountability company disclosures around cyber security from the auditor and the company’s oversight governance, including key roles within the bodies (ie, Audit Committee, Board of Statutory company responsible for cyber resilience of the Auditors or Fiscal Councils). In this context, we business, and the board’s approach to ensuring expect both the external auditor and the internal robust oversight. oversight bodies to comment on any major audit and accounting issues that came up during the Climate-related risks can have material impact year under review in their respective reports to on companies’ business model, operations and investors. performance. AllianzGI, therefore, expects boards and management of all companies, and particularly those in carbon intensive industries, Risk Management to develop a sustainability strategy, assess the impact of climate-related risks, and take steps AllianzGI believes that boards of companies with to minimize Scope 1, 2 and 3 GHG emissions high standards of corporate governance will be and address other risks to the business posed able to make sound strategic decisions, by climate change. We expect companies to determine an appropriate risk appetite for the report to investors on targets, measures and company and oversee its approach to risk achievements regularly and consistently, ideally management. The board has the responsibility using TCFD reporting framework. to ensure that the company has implemented an effective process to identify material risks to the Biodiversity-related risks such as risks that may business and to proactively manage those risks arise relating to water, waste, deforestation, and as appropriate. This includes risks arising from the use of natural resources including marine environmental and social impacts of business resources should be included in regular risk operations, and its governance structures and assessments. We expect companies to adopt practices. appropriate risk management strategies and report on targets and progress regularly. AllianzGI is supportive of proposals which require the board to conduct a review of the effectiveness of the company’s risk management, its internal control systems and its risk management plan at least annually. We support the establishment of a risk committee responsible for supervision of risks within the company. If necessary, the board or the risk committee should seek independent external support to supplement internal resources. We also encourage companies to consider appointing their Chief Risk Officer to the board. 11