01 Our sustainability approach 02 Sustainable investing 03 Active stewardship 04 Corporate sustainability 05 Appendix 03.7 Exercising our voting rights Principles 7 11 12 In the US, we voted on 674 proposals 2. We supported a shareholder resolution think it was in shareholders’ interest Our engagement approach applies including 126 on corporate governance at a US transportation services to support this resolution for the to equity and fixed income holdings, (excluding director elections and director company. The resolution requested that particular company at the current time. in so far as the counter parties overlap. related) and 28 on compensation, 214 on the board oversee a third-party audit We considered that sector price setting We ensure flow of information through our various social themes and the remainder analysing the adverse impact of the dynamics could put the company at investment and collaboration platform, environmental resolutions or a blend of company’s policies and practices on the a disadvantage. The vote followed which both teams can access. In 2022, areas, demonstrating our comprehensive civil rights of company stakeholders. company engagement and internal we broadened and systemised work approach to voting on governance Concluding the additional insight discussion that involved relevant between the Sustainability teams and and sustainability-related shareholder would be helpful to assess those risks, investment teams who are familiar Fixed Income teams in several areas, resolutions. Globally, we supported we differentiated this from another with the sector. notably with respect to engagement 80% of all climate-related shareholder resolution on the same ballot where (see section 03.2.1). Fixed Income teams resolutions, 96% of human-rights related we thought the company made 03.7.5 Exercising our rights and have been trained on the use of internally resolutions, and 94% of resolutions with sufficient progress and therefore did responsibilities beyond equities developed tools and available resources respect to greater transparency on not support this separate shareholder Exercising voting rights is typically limited such as sector frameworks. political contributions and lobbying. resolution on political lobbying. to equity holdings. As debt investors, we This granular analysis was discussed seek to exercise rights at the fund level 1. We supported a climate lobbying with investment teams who are in where possible. Where bond issuers shareholder resolution at a US airline regular contact with the company and have outstanding equity, our debt company. Transparency on climate were able to add valuable insight on investors will benefit from the ability lobbying is in shareholders’ interest management responsiveness. to exercise rights formally through our given the importance of the sector equity holdings. However, where we view transition. Better transparency can 3. We abstained on a shareholder latitude in covenants or bond terms to help in mitigating climate transition resolution requesting a European be inappropriate, we seek to engage – risks and reputational risks by retailer to adopt minimum pay either bilaterally or through collaborative 15 16 ensuring the lobbying activities of the standard. While we acknowledge the engagement groups (eg, ELFA , EMIA ) – company are aligned with the Paris merits of adequate pay conditions, to secure better debt holder rights. Agreement. For this company, the including above legal minimum wage vote was in the context of a broader if appropriate, and support the sector climate engagement during the year, adopting such pay levels, we did not and we supported the request for greater transparency. 15 European Leveraged Finance Association. 16 Emerging Markets Investors Alliance (emia.org). Allianz Global Investors Sustainability and Stewardship Report 2022 93