AllianzGI Sustainability Risk Management Policy Statement Page 5 principal adverse impact indicators. In addition, Allianz Global Investors performs a regular portfolio screening of Principal Adverse Impact along selected key performance indicators such as emission of greenhouse gases or breaches of Human Rights as defined by UN Guiding Principles on Business and Human Rights. - For private ma rket investments , Allianz Global Investors considers Principal Adverse Impact risks during the origination and structuring phases, often through project and fund - specific due diligence questionnaires. Additionally, many of Allianz Global Investors’ p rivate market assets are subject to the Allianz ESG Integration Framework , which sets out criteria to be considered and met when inves ting in particular sensitive business areas. Investments are actively monitored through the asset management process, responding to material adverse changes of the PAI risk profile th rough engagement with management and sponsors of companies or in the case of indirect strategies with G eneral P artner s (GP s ) , in which Allianz Global Investors invests on behalf of our clients. Further detail is given in Allianz Global Investors’ Principal Adverse Impact Statement . 3. Organizat ional framework of Sustainability Risk management The primary responsibility for Sustainability Risk management lies with the portfolio management function. As a second line of defense, the risk management function performs an independent oversight of Sustainability Risks. If needed, Sustainability Risks are escalated to committee level to decide risk mitigation and management actions including measures to reduce Sustainability Risk exposures such as sales of assets. The Allianz Global Inve stors’ board is responsible for approving the business and risk strategy, as well as its oversight of its communication and implementation within the entity (risk culture) and through established process structures. IV Statement updates and maintenance This Statement, will be publicly available on Allianz Global Investors’ website: Allianz Global Investors Sustainability Risk Management Poli cy statement . Allianz Global Investors reviews its Sustainability Risk management process and this Statement at least annually or more frequently if material changes to the regulatory or market environment occurs that may require adjustments. Material ev ents can be defined as any change in systems, processes or relationships which will impact our ability to properly identify, assess, monitor and manage risks. If a material event occurs, the Sustainability Risk management process and this Statement will be reviewed by the relevant portfolio management function at the earliest opportunity to ensure that they remain effective in ensuring Allianz Global Investors has the appropriate processes in place. Statement updates will be published on th e website.