01 Our sustainability approach 02 Sustainable investing 03 Active stewardship 04 Corporate sustainability 05 Appendix 03.1 Developing our engagement strategy Principles 7 9 We are pursuing an engagement approach with an activist sustainability orientation as part of our ambition to be a 2022 highlights sustainability shaper. We evolved our approach in 2022, focusing 438 on thematic and collaborative engagement as well as engagement active engagements across all listed asset classes. We also maintained our risk-based approach to engagement for large holdings. Thematic engagement: In 2022, not only to inform our “Say on Climate” No. of engagements we continued to refine our thematic votes. Regulatory requirements extend to increased by engagement approach aligned to our themes such as biodiversity and human 46% year-on-year three sustainability themes – climate rights. As these issues are a high priority change, planetary boundaries and for us, not least in our sustainable funds, inclusive capitalism – in addition to we have also launched thematic projects governance themes within specific for these topics in 2022 and will continue Engaged in markets and more broadly. We prioritise our work in 2023. 28 markets engagement projects based on the size globally of our holdings per market or portfolio Collaborative engagement: To scale our and the priorities of clients or certain engagement and be more effective in the funds. The many direct conversations with major markets we have holdings, in 2022, Voted at our clients provide us with insights into we laid the legal foundations for broader 10,200 their engagement priorities and thematic collaborative engagement. We are shareholder meetings focus areas which extends particularly partnering with high-profile initiatives, to climate, biodiversity and human rights focusing our efforts on climate transition, issues. Reflecting increased client interest diversity and select governance topics. Voted against in the transition to net zero as well as See section 03.5. 43% of remuneration regulatory commitments, we targeted proposals additional high-emitting sectors to expand Engagement across all listed asset our climate engagement programme in classes: While the bedrock of our 2022. We maintained our engagement engagement activities comes from our on the net zero transition of the fossil fuel heritage as an active equity manager, we sector as we consider this a high priority, are also now anchoring our engagement Allianz Global Investors Sustainability and Stewardship Report 2022 62