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AllianzGI Stewardship Statement Escalation of stewardship activities In our engagements, companies are not always – J oining collaborative engagement initiatives co- responsive to our concerns, or their actions do not give ordinated by investors, trade associations and other due consideration to the interests of minority shareholders. organisations where these seek to address market If we conclude that our concerns cannot be resolved or industry-wide concerns through standard interactions with investee companies, – E xpressing concerns through company advisers, for we may start a more focused engagement approach example in merger and acquisition (M&A) situations and consider escalation to achieve our engagement – C o-filing/filing resolutions at shareholder meetings objectives. The chosen engagement approach will – R educing or exiting our investment position as and depend on the circumstances and the nature of our when appropriate (any decision to reduce or exit an concerns. Escalation options are not mutually exclusive investment position will be taken at a portfolio level). and can be combined depending on the situation. AllianzGI will consider making public statements as a last Engagement is typically escalated through additional resort when all other channels of constructive dialogue meetings with management and a more intensive dialogue have been exhausted. with the board chairperson and non-executive directors. We prefer to address the issues of corporate governance For all public interventions, a clear internal escalation and succession planning, risk management and internal procedure is in place. Depending on the nature of concern controls, quality of audit, executive remuneration, and long- and preferred escalation action, our public interventions will term sustainability matters directly with a non-executive be reviewed following a dedicated reputational risk process board chairperson, lead/ senior independent director and involving senior management as appropriate. Our parent other non-executive board members – thereby gaining company, Allianz SE, will be notified as appropriate. senior input on the matters of concern. We also consider emphasising our position to the board in writing if we have the impression that direct interaction has been unsuccessful. AllianzGI prefers direct engagement with companies; but, where direct engagement does not progress as satisfactorily or where our shareholding is insufficient for an effective escalation in our own right, we consider other options, including, but not limited to: – Voting against resolutions at shareholder meetings – C ollaborating with other institutional investors on single issues 11

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