01 Our sustainability approach 02 Sustainable investing 03 Active stewardship 04 Corporate sustainability 05 Appendix 01.3 Guiding clients on sustainable investment solutions Principle 6 01.3.4 Increasing transparency of For example, in our conversations with Regulators in Europe and Asia Pacific are by participating in major regulatory sustainable investments some large clients, we observed that introducing various sustainable finance consultations. For example, AllianzGI was With the growth in sustainable investing, they would like to receive more granular regulations to ensure policy objectives of a member of the former EU Technical demand is increasing among investors reporting of engagement conversations greener and more inclusive financial flows Expert Group, and has been a member of and regulators for greater transparency with companies held in portfolios. are delivered and to increase transparency the EU Platform for Sustainable Finance over the performance and impact of for investors. For example, the EU Action during its first term ending in 2022, investments. We support this shift and Navigating the shifting Plan on Financing Sustainable Growth continuing into its second term in 2023. have provided monthly reporting on regulatory landscape includes common classification of sustainable investments to our clients The redirection of capital flows to finance environmentally sustainable activities We have initiated an ESG Programme since 2020. Clients can view their sustainable growth is becoming an within the EU sustainable finance to implement the required processes sustainable investments compared to the ever-greater priority for policy makers as taxonomy, and enhanced disclosure and enhance our product offering product benchmark and see the carbon financial market participants represent requirements for financial markets with to ensure we are prepared to meet footprint of their portfolios in absolute an important catalyst for channelling the Sustainable Finance Disclosure regulatory obligations and client demand and relative terms, as well as an overview private investments to create a more Regulation (SFDR) and the Corporate for sustainability. of the engagement activities relevant to sustainable economy. Sustainability Reporting Directive (CSRD). the fund. Major activities in 2022 included: It also required that sustainability is We are constantly enhancing our integrated into the investment process and • Integration of sustainability risk reporting to meet evolving regulatory investment advice through amendments and principal adverse impact (PAI) requirements and client needs. Our goal of the funds, asset management and assessments into the investment process, is to make sustainable information We aim to help insurance regulations. In Asia Pacific, as of 1 August 2022. digitally accessible via a dedicated client initiatives are underway in various markets • A review of our product offering reporting portal for institutional clients shape the regulatory to increase sustainability disclosure to address investors’ sustainability and distributors. The application we requirements and integrate sustainability preferences according to MiFID II. are developing will allow continuous landscape by risk into the investment process. • Detailed disclosure to create enhancements as reporting requirements transparency on Article 8 and 9 products and client needs evolve. Our clients’ participating in AllianzGI is taking an active role in the and meet the SFDR Level 2 requirement, stewardship and investment principles major regulatory development and implementation of as of 1 January 2023. shape how we manage their portfolios, sustainable finance regulation in order and we evolve our processes and consultations. to ensure a sensible outcome. We aim reporting in line with their needs. to help shape the regulatory landscape 29