01 Our sustainability approach 02 Sustainable investing 03 Active stewardship 04 Corporate sustainability 05 Appendix 02.2 Sustainability research Principle 7 02.2.2 Sector research In collaboration with the Sustainability Our approach to sector research Sustainability issues differ by sector and Methodologies and Analytics team, understanding this context is central indicators are selected considering their to our company assessments. We have relevance, availability and reliability. introduced frameworks for 24 broad sector segments resulting from the merger The second page provides a materiality GICS of adjacent Global Industry Classification map and key engagement themes sector based Standard (GICS) industries with similar for the sector. The materiality map is ESG issues. Frameworks are developed divided across four pillars – environment, exclusively for internal distribution as a social, business behaviour and corporate tool to empower the investment platform governance – which each have four to focus and engage on what is most underlying factors, examples of which material based on a better understanding include climate change, health and safety, Sector frameworks of the topical issues. business ethics, corporate/sustainability provide a view on leadership and disclosure. For each materiality issues We published sector frameworks for 16 sector the responsible analyst ranks sectors in 2022 with the remainder to be these factors on their materiality level finalised in 2023. Each sector framework over a scale ranging between relevant, sets out key material sustainability factors significantly relevant and moderately for the sector and how to integrate these relevant. The main topics of engagement into investment decisions and engagement. are developed in collaboration with the Presented in a concise two-page summary Stewardship team. format, each framework focuses on the most relevant issues to demonstrate a We also consolidate individual sector strong view for the given sector. materiality maps into an overarching 24 sector frameworks Overview data driven Sustainability Materiality Matrix to cover • 24 materiality maps • Climate indicators Five main The first page provides an overview the 24 sectors and 16 factors. This matrix • Four pillars • Sustainable KPIs engagement of the sector from a data perspective is a core input for our proprietary rating topics with KPIs related to GHG emissions, system with regards to setting the sector- • 16 factors • Controversies workforce safety, controversies and board specific weightings for the four pillars and structure in absolute and relative terms. the 16 factors. Allianz Global Investors Sustainability and Stewardship Report 2022 37