solar company or an electrified passenger rail transport company, rather than an explicit green project. 01 Introduction and strategy 02 Measuring and managing sustainability 03 Climate change r elated disclosure 04 Strengthening our f oundation 05 Our universal principles 02.3 Sustainability in asset management Influence change : Increase the exposure to issuers that PIMCO expects to engage with on net-zero strategies or targets. PIMCO expects that its engagement activities will focus on bolstering issuers’ alignment with the Paris Agreement targets, supporting companies to improve management of underlying credit risks by moving from awareness to readiness and ultimately commitment to be consistent with global climate goals (e.g. setting science-based GHG emissions reduction targets, with a focus on the most ambitious pathway). In terms of PIMCO’s engagement efforts, anal ysts engaged 1,371 (2021: 1,585) corporate bond issuers in 2022 across a range of industries and regions. More than 650 of those 1,371 issuers were engaged in depth, meaning that PIMCO held discussions with the issuer on ESG topics and provided specific recommendations for consideration. Specifically for the Allianz Real Estate business which PIMC O assumed in 2020, it has implemented a new ESG assessment for real estate fund investments. It has also expanded its ESG assessment c apabilities for direct real estate investments – for example by incorporating new physical climate risk analytics capabilities – and focused on meeting regulatory disclosure requirements in the context of SFDR and EU Taxonomy regulation. Among other steps taken, new acquisitions will b e assessed against 1.5°C GHG and energy pathways and the investment needed to meet related targets will be considered. Procurement of renewable energy and engagement to c onvince tenants to switch to green electricity will be a priority (e.g. via standard lease agreements). Where deep refurbishments are required, c ompleted buildings will be highly energy efficient to ensure long-term compliance with the 1.5°C GHG pathway. Read more in PIMCO’s ESG Investing report. Allianz Group Sustainability Report 2022 55