Engagement strategy At AllianzGI, engaging in dialogues with investee companies is an integral part of the investment process. Our investment professionals interact with companies on a regular basis and use these interactions as an opportunity for engagement. All investment professionals are involved in engagement activities. Our engagement strategy rests on two pillars: Risk-based approach : Our risk-based approach focuses on the material ESG risks that we identify. Targeting is closely related to the size of our exposure, whether per market, fund or considering total value of investment. The focus of engagements is determined by considerations such as significant votes against company management at past general meetings and sustainability issues that we identify as below market practice. Engagements can also be triggered by controversies connected to sustainability or governance. Engagement activities typically relate to an investee company’s strategy, operational or financial performance, capital management, corporate governance and ESG risks and impacts. Thematic approach : We also lead themed engagement projects. These are either linked to our three strategic sustainability themes – climate change, planetary boundaries and inclusive capitalism – or related to governance themes within specific markets or more broadly. We identify thematic engagement projects based on topics that we deem to be important for our portfolio investments, for example energy transition or climate change. We prioritise them based on the size of our holdings per market or portfolio, and factor in the priorities of our clients. We observe on these particular topics – climate change and the energy transition – an increasing number of requests from clients for engagement. We believe this two-pronged approach will allow us to achieve better balance between ESG risk reductions in our portfolios and leading clients and companies on an inclusive transition pathway to a sustainable future. The approach also improves our ability to set out engagement objectives clearly at the outset. All direct engagements will be coordinated between AllianzGI’s internal stakeholders in a transparent and inclusive way using our global collaboration system. Our engagement activities include monitoring, providing feedback, challenging corporate practices and seeking change, and, in rare circumstances, public interventions. The most common engagements are around strategy, operational and financial performance, capital management, corporate governance and proxy voting issues, as well as environmental and social practices of investee companies. While our preference is to engage investee companies confidentially, we are prepared to escalate engagement activities publicly if we conclude that the confidential approach has gone as far as it can without delivering progress, and that our engagement objective would be best served by escalation. Engagement can take various forms, including: – Electronic correspondence – Face-to-face meetings and conference calls with investor relations, executive directors and senior management, board chairpersons and non-executive board members, company secretaries, as well as heads of operational, controls and sustainability functions – Formal letters to boards and management – Discussions with company advisers and other external stakeholders – Proxy voting and communication of voting decisions to investee companies – Dialogue and collaboration with other shareholders – Public interventions, through co-filing/filing shareholder resolutions, speaking at shareholder meetings, and commenting in the media. AllianzGI sees stewardship as an ongoing process, which is not limited to the circumstances where escalation is deemed necessary. For example, we would engage in dialogue with the chairperson or a non-executive director of our investee companies even if there are no material concerns to address. As an active investment manager, AllianzGI sees engagement as a way to reduce investment risk, help improve corporate performance and better assure long-term business prospects of investee companies. Consequently, while we keep records of our engagements and positive stewardship outcomes, we consider success of our engagements an integral part of our investment performance. All AllianzGI’s engagement notes and outcomes are available on our global collaboration system, thus allowing all portfolio managers and analysts to reflect these in their investment decisions. AllianzGI Stewardship Statement 10