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 02.3.1 Allianz Global Investors progress AllianzGI continues to grow its sustainability offering to reach its targets and commitments. Supported by an established team, it made significant progress in 2022, including: • Implementation of a proprietary, state- of-the-art sustainable data architecture supporting portfolio managers in their decision making. • Implementation of a dedicated private markets impact unit within the sustainable investment platform and continued drive in blended finance. In June, the G7 endorsed the Emerging Markets Climate Action Fund, recognizing it as a concrete innovative and market-led approach to mobilize private investments for climate relevant infrastructure and to enhance multilateral finance and collaboration. • Launching sustainable investing and taxonomy share commitments for all relevant sustainable- and impact- focused strategies, facilitated by an in-depth analysis of nearly 130 companies and over 460 business activities by AllianzGI’s dedicated sustainability research team. As part of its commitment to foster discussion with clients on net-zero investment approaches, AllianzGI has introduced a new investment approach focused on reducing the carbon footprint of portfolios. Funds managed according to this approach are either committed to reduce their GHG footprint along a set pathway by 5 percent per year or stay below their benchmark in terms of GHG intensity by 20 percent. AllianzGI is also working on a net-zero alignment share sustainable investment approach which it aims to launch in 2023. In 2022, AllianzGI increased the focus on social and environmental topics in its engagement activities. The share of engagements on environmental and social issues increased to 69 percent in 2022 from 42 percent in 2021. AllianzGI once again showcased its strong commitment to engagement in 2022 with 438 (2021: 299) company engagements covering 996 (2021: 482) topics in 355 (2021: 238) companies and 28 (2021: 27) markets. Active investment strategies benefitted from exercise of voting rights and proxy voting. Across the year, AllianzGI voted at 10,205 shareholder meetings. In about 70 percent of meetings they voted against management, withheld or abstained with at least one vote. These figures reflect AllianzGI’s highly active and globally consistent approach to stewardship and a willingness to vote against proposals that do not meet its expectations of investee companies as well as fulfilling its duty to act in the interests of clients by considering each proposal on merit. Specifically in the private markets – where AllianzGI has over 10 years of history in delivering sustainable outcome-led investment offerings – several of its private markets teams have set the target to grow the share of low-emitting assets for new strategies and investments. The firm is also one of the first movers in delivering blended finance vehicles where investment from both institutions and public funds are combined to create opportunities to create impact, especially in emerging markets, which are de-risked for commercial investors – for example the Emerging Market Climate Action Fund. Read more in AllianzGI’s Sustainability Report. Allianz Group Sustainability Report 2022 53