Sustainability Issues and Shareholder Proposals AllianzGI expects companies to develop a sustainability strategy addressing material environmental and social issues including climate change, to set targets in line with the Paris Agreement and report on progress. AllianzGI anchors sustainability-related matters in various aspects of its Global Corporate Governance Guidelines. These comprise, but are not limited to: – clearly assigning sustainability-related responsibilities on the board; – the management of sustainability-related risks when assessing the board and electing directors; and – the inclusion of ESG KPIs into remuneration polic y. Please refer to the respective section of these Guidelines for policy application. AllianzGI encourages high-emitting companies to ask shareholders for support of their climate strategy. We support such proposals if the company provides a challenging climate strategy including clear targets and milestones that balances business and climate-related targets without unduly compromising the company’s medium-term business outlook. We would expect companies to define clear accountability on the board for climate-related matters to ensure reasonable oversight over climate-related strategies. Boards should commit to reporting annually following established reporting frameworks and thus allowing investors to judge progress. We may vote against the Chairperson or director in charge of sustainability matters on the board where shareholder concerns remain unaddressed despite significant shareholder dissent or where we remain unsatisfied with the company’s responsiveness to implementing a Say on Climate. Going forward, for certain high-emitting companies AllianzGI will hold directors accountable if the company does not have credible net zero targets in place. As of 2024, depending on the set-up of the board AllianzGI will vote against the Chairperson of the Sustainability Committee, the Strategy Committee or the Chairperson of the Board of certain high-emitting companies if it does not have net zero targets or GHG reductions targets and TCFD disclosure in place. If shareholders raise a resolution related to a Say on Climate resolution, AllianzGI evaluates these on a case-by-case basis. Where shareholder proposals are prescriptive in nature, requesting the board and management to take certain actions, AllianzGI will consider the rationale and feasibility of each proposal, the consistency of the wording of the proposal with its intent, the impact of the proposal on the company’s short- term and long-term value as well as other relevant background circumstances including the company’s performance in these areas, past responsiveness to shareholder engagement and risk evidenced by controversy. Global Corporate Governance Guidelines 19