01 Our sustainability approach 02 Sustainable investing 03 Active stewardship 04 Corporate sustainability 05 Appendix 04.3 Ensuring responsible business conduct Principles 3 5 As part of a continuous improvement Our tax strategy is closely aligned to our Responsible communication with clients programme, we collect and analyse business strategy and our sustainability AllianzGI has always been committed Looking ahead feedback to improve the effectiveness strategy, and requires full compliance to client communications that are fair, We are enhancing capabilities in of the business resilience framework. with tax regulations and tax laws in all not misleading, accurate and up-to- the independent Risk Management A recent major global crisis management countries in which we operate. Allianz is date in all material respects. We strive function that apply to all AllianzGI exercise demonstrated that our Global committed to acting transparently and to meet the highest standards for client entities. Examples include: Crisis Unit is capable of successfully responsibly in all tax matters and to communications in accordance with managing a ransomware attack and working closely with the tax authorities regulatory requirements under local laws. • Building out the function’s systems minimising potential damage to the to ensure we pay our fair share of taxes. infrastructure to enable more firm and its clients. Our processes and internal governance Furthermore, in 2022, we launched a flexible and specific coverage of are implemented in line with our tax group-wide project to improve processes investment risks. 04.3.6 Being transparent about tax strategy to ensure full compliance in every and controls related to the review of all • Enhanced market risk capabilities Our ambition is to support the fairness, jurisdiction where we operate. types of client communication. We have such as stress-testing, risk analytics, transparency, and balance of all tax See the Allianz Group Tax Transparency reviewed and strengthened our processes best-practices of modelling systems at national and international Report 2022 and AllianzGI’s UK tax for client communications where capabilities and review of market levels in dialogue with key stakeholders, strategy for more information. necessary to ensure information is subject risk models. and to transparently communicate our to rigorous quality, accuracy, consistency • A stronger governance framework tax positions. 04.3.7 Strengthening internal controls and governance checks before it is shared. for our private markets business, We continuously enhance our internal Clarifying roles and responsibilities for with Risk Management The taxes we pay are an important part control framework, processes and client communication is a key objective representation at investment of our contribution to the economic and procedures to ensure they remain robust of this initiative. committees and more involvement sustainable development of the countries and effective in sustaining clients’, in the valuation process. in which we operate. Fair, effective, employees’ and stakeholders’ trust. As part of the overall enhancements to • Refined management reporting and stable tax systems are beneficial Two important enhancements during 2022 our client communications review that includes investment risk- for governments, companies, and the were the strengthening of controls around process, a new and dedicated client oriented dashboards and provides wider society. client communication and a number of communications policy, together with an overview of ex-ante risks, based enhancements to the independent Risk online training and a detailed client on risk statistics for each asset class. Management function (implementation communications handbook was published of some of these measures continues at the beginning of 2023. into 2023). Allianz Global Investors Sustainability and Stewardship Report 2022 113