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