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