Shaping US practice through shareholder resolutions Improving action on climate change is a key focus This year’s data suggests that the level of support for environmental and social (E&S) resolutions has been mixed. AllianzGI’s voting record in the first The number of resolutions receiving majority support has risen, yet, on average, the level of support has lowered half of 2022: (see Exhibit 2). Another trend has been the rising number AllianzGI supported 94% of the 17 resolutions of resolutions not voted on or withdrawn. This typically on human rights risk assessment. happened when a shareholder filed a proposal but, following an engagement process, decided to withdraw the And 96% of the 27 resolutions related to proposal and it was ultimately not put to any vote. While lobbying disclosure. this means there is no voting record for these cases, it may Source: Allianz Global Investors Global Proxy Voting indicate a rising willingness to engage by the company and Overview. Data as at 30 June, 2022. recognition that the withdrawn resolution would likely have received a high level of support. We maintained our strong support for climate-related resolutions in 2022. In the first half of 2022, we supported to align a decarbonisation strategy with a science-based 90% of the 20 resolutions related to greenhouse gas target. emissions and 63% of the 24 resolutions related to improved climate change reporting. Although this is a slight decline Support for human rights and transparency reforms from the 93% support of 15 resolutions in 2021, this reflects We are highly focused on the social performance of our our decline to support resolutions where the company’s investee companies, especially in the wake of the impact of current trajectory was already sufficiently aligned with our 12 the Covid-19 pandemic , and reflected this in our voting. expectations. We did not support some overly detailed and We supported 16 of 17 resolutions requesting human rights administratively burdensome resolutions. For example, we risk assessments and all 4 resolutions for improving human generally did not support resolutions for a complete stop rights standards and policies. Other focus areas were the of any funding of fossil fuels , instead focusing on efforts practices, especially transparency, on political contributions Exhibit 2: the number of shareholder proposals for environmental and social (E&S) resolutions rose in 2022, but the average level of support for them fell 350 40 37% 300 288 35 250 30% 30% 29% 30 ers 25% 25 200 154 20 % 150 149 146 149 osal numb 15 op pr100 10 50 36 41 5 9 13 19 0 0 2018 2019 2020 2021 2022 Proposals voted Proposals passed Average support Source: PwC Boardroom recap: The 2022 proxy season. Data as at August, 2022. 10. See: Unlocking the “S” in capitalism 3