01 Introduction and strategy 02 Measuring and managing sustainability 03 Climate change related disclosure 04 Strengthening our foundation 05 Our universal principles 02.2 Sustainability in proprietary investments 02.2.1 Integrating sustainability in proprietary investments Allianz Investment Management’s (AIM) approach for its proprietary investment portfolio of € 701.1 billion 1 is rooted in three fundamental convictions: • We invest long-term, driven by the profile of our liabilities; • We provide capital to sustainable business models because these will deliver better returns in the long run; and • Climate change is a material risk for the global economy and all asset classes which cannot be mitigated with available capital market instruments. Our sustainable investing approach is based on these three fundamentals. Our ambition is to transition our global proprietary investment portfolio to net-zero by 2050. This will contribute to SDG 13, Climate action and in particular 13.1, Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries. We strive to implement best practice across all asset classes, guided by recommendations of leading sustainable investor organizations like PRI 2 and The Institutional Investors Group on Climate Change (IIGCC). At the same time, the world is changing fast and our ambition is to shape the direction of travel through our contributions to partnerships, thereby fostering SDG 17, Partnerships. We focus in particular on 17.3, Mobilize additional financial resources for developing countries from multiple sources and 17.17, Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships. These include: • Founding member of the U.N.-Convened Net-Zero Asset Owner Alliance (NZAOA), co-leading the Engagement track and the Monitoring, Reporting and Verification (MRV) track. • Founding member and strong supporter of The Linux Foundation’s OS Climate (OS-C). • Serving on the board of the Institutional Investors Group on Climate Change (IIGCC). • Co-authoring fundamental position papers like ‘The Future of Investor Engagement.’ 3 • Providing our expertise to the EU regulator via membership in the EU Sustainable Finance Platform. • Providing our expertise to the German regulator via membership in the Sustainable Finance Advisory Committee of the German Federal Government. • Member of the EU High-Level Expert (HLEG) Group on Scaling up Sustainable Finance in Low and Middle Income Countries. • Member of the U.N. High-level Expert Group on the Net-Zero Emissions Commitments of Non-State Entities. Indirectly, we contribute to most other SDGs through our strong engagement on climate change like SDG 7, Affordable and clean energy, by investing in renewable energy ( see also 02.2.2 ). 1 Figures based on economic view. Compared to accounting view it reflects a volume increase due to switch from book to market values and changed asset scope (e.g. including For Valuation Only (FVO), trading and real estate own-use). 2 Allianz SE | Signatory profile | PRI (unpri.org) . 3 NZAOA_The-future-of-investor-engagement.pdf (unepfi.org) . A llianz Gr oup Sustainability R ep or t 2022 37