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