01 Introduction and strategy 02 Measuring and managing sustainability 03 Climate change related disclosure 04 Strengthening our foundation 05 Our universal principles 02.3 Sustainability in asset management As a diversified player, sustainable investing is a core part of AllianzGI’s strategy. It manages € 139.6 billion of third party assets (2021: € 184.3 bn) across various ESG approaches. AllianzGI’s ambition is to grow its offering of sustainable and impact-focused investment products and customized solutions across public and private markets, demonstrating its commitment to shaping pathways to a more sustainable future. It has identified three themes – climate change, planetary boundaries and inclusive capitalism – which are critical to society, investors and AllianzGI as a business. These themes inform its research and stewardship activities, product development and industry commitments. A premium fixed-income player, PIMCO manages € 220.1 billion of third party assets (2021: € 203.1 bn) across ESG- themed strategies. PIMCO believes that the global bond market and its investors will be essential in meeting ambitious global goals on climate, achieving the SDGs and financing a sustainable future. Its sustainability philosophy centers on being a steward of clients’ capital with a fiduciary duty to manage risk and a responsibility to use its scale as a special platform to engage with issuers to lead industry wide change. The investment industry is in the early stages of its sustainability journey and will continue to evolve. It will take both policy formulation alongside capital markets to support this evolution. Specifically within the real estate business, the ESG integration framework is designed to improve sustainability performance and transparency of real estate assets as well as addressing issues such as physical climate to reduce the risks of obsolescence and depreciation. Targets and commitments As a member of the global Net-Zero Asset Managers initiative, AllianzGI is committed to supporting the goal of net- zero GHG emissions by 2050 or sooner. It is also a member of the One Planet Asset Managers Initiative which supports members of the One Planet Sovereign Wealth Funds (OPSWF) in the integration of climate-related risks and opportunities within long-term investment portfolios. As a private markets investor, AllianzGI can engage and steward the assets and funds it invests in through its levers of influence, specific to each strategy. The firm takes this role seriously and endeavors to keep pushing the markets towards higher standards, leveraging and inputting into industry initiatives that ensure high ESG standards across all markets, including private markets where we continue to play an active role in associations to shape the industry. For example, AllianzGI’s head of Sustainable and Impact investing was appointed to the board of the Global ESG Benchmark for Real Assets (GRESB) which continues to set standards for private markets to ensure they remain investor led and aligned with responsible investment principles. PIMCO is committed to providing the best advice and solutions for clients on a range of sustainability and ESG issues, including climate change. It manages significant assets on behalf of 34 of the 71 asset owners 1 who have committed to transition their portfolios to net-zero GHG emissions by 2050. PIMCO participates in global initiatives, such as the U.N. Global Compact’s CFO Coalition for the SDGs, where it is driving global sustainability efforts, defines ESG standards and encourages greater disclosure from issuers. It is also a part of the International Capital Markets Association (ICMA) Green Bond Principles (GBP) and Social Bond Principles (SBP) Executive Committee and collaborates with external experts such as Mark Carney, who became a member of PIMCO’s Global Advisory Board in 2020. PIMCO is committed to supporting the evolution of the ESG bond market. In establishing a leadership role in global capital markets, PIMCO has made clear that sustainable economic development is essential to its clients’ financial objective. 1 As of 31 December 2021. Allianz Group Sustainability Report 2022 52