01 Our sustainability approach 02 Sustainable investing 03 Active stewardship 04 Corporate sustainability 05 Appendix 02.2 Sustainability research Principle 7 02.2.3 Company research Proxy voting continued to be a Putting collaboration at the heart of our research approach Company analysis combines a proprietary collaboration track for aligning voting rating system and qualitative research decisions with research views and using the outcomes of thematic and sector capturing the implications of annual research to focus on the most relevant, general meeting (AGM) outcomes in and possibly controversial, aspects of company, sectoral or thematic analysis. an entity’s profile. This approach has For example, our updated climate guided us to develop a new format for materiality analysis in the sector sustainability company profiles. We focus framework for financials instructed our on the most impactful, controversial or proxy voting decision for the high profile divisive investee companies. say-on-climate proposals at several banks in 2022. For each company, we review human rights and the four pillars of environmental, Research and Stewardship at AllianzGI social, business behaviour and corporate We are pursuing an engagement governance. We provide insights into both approach with an activist sustainability absolute and relative scores. In addition orientation as part of our ambition to be a to the dedicated research focus list, sustainability shaper. In 2022 we evolved the Research team provides ad-hoc our engagement strategy, focusing among reviews based on emerging developments, others on thematic engagement. controversies or where data providers See section 3.1. diverge on assessments. In 2022, we completed in-depth sustainability Thematic research projects run by our analysis of over 250 entities. Research team, for example on biodiversity, are a cornerstone of these engagement Company reviews often trigger active follow- activities and the discussion between the up actions and engagements. These are Research and Stewardship analysts help framed together with the Stewardship to form a joint view on the objectives when team to combine research findings with engaging our target companies. engagement experience. We strengthened collaboration between teams in 2022. Allianz Global Investors Sustainability and Stewardship Report 2022 38