01 Our sustainability approach 02 Sustainable investing 03 Active stewardship 04 Corporate sustainability 05 Appendix 02.6 Sustainable investing categories Principle 7 Impact-focused investing in proceeds will be exclusively applied to public markets finance or re-finance, in part or in full, Shaping sustainable pathways towards change Green bonds new and/or existing eligible green projects Green bonds can support the pathway and which are aligned with the four core to a more sustainable future by components of the Green Bond Principles: Halma plc mobilising capital markets to deliver environmental benefits. On a worldwide • Use of Proceeds (identification of The Halma group of companies manufacture and market scale, green bonds have proven to “green” projects and assets). health and safety sensor technologies designed to save lives be a multifaceted model for success, • Evaluation and selection of eligible attracting a growing number of investors green projects. and provide science-based solutions to complex issues. seeking sustainable, low-carbon • Management of Proceeds (tracking, investment opportunities. allocation and spending of proceeds). With products focused on making the Halma’s water analysis and • Reporting (what information to disclose, world safer, cleaner and healthier, treatment technologies deliver over Our green bonds strategy follows a as well as the frequency of disclosure to many of Halma’s underlying 200 million water tests annually and sustainable investment objective to investors, including methodologies for businesses’ objectives are aligned monitor over 110,000km of water participate in the mobilisation of capital CO₂ emissions calculation). with the SDGs, supporting public and pipelines, increasing water safety, to support the transition to a low-carbon personal health, water management, conservation and efficiency. It has society, natural capital preservation and Our investment in green bonds unlocks hazard detection in buildings and also developed life-saving sensor adaptation to climate change. This favours key enablers of energy and climate industrial work environments, products technology to analyse drinking water the reallocation of investments through a transition. For example, AllianzGI invests such as medical optic devices, water for lead contamination in just three less carbon-intensive economy. in companies that develop large offshore quality test kits, fire and smoke minutes. The importance of this is wind farms, implement solutions to lower detectors, elevator safety sensors, brought into sharp focus by a recent As defined by the International Capital the impact of carbon-intensive freight 5 activity or promote the circular economy and more. UNICEF report which estimates that Markets Association , green bonds are one in three children, up to 800 million any type of bond instrument where the through recycling. globally, are reported to have blood levels with unsafe amounts of lead present. 5 https://www.icmagroup.org/assets/documents/Regulatory/Green-Bonds/Green-Bonds-Principles-June-2018-270520.pdf Allianz Global Investors Sustainability and Stewardship Report 2022 54