01 Our sustainability approach 02 Sustainable investing 03 Active stewardship 04 Corporate sustainability 05 Appendix 02.6 Sustainable investing categories Principle 7 Increasing transparency our commitment to offering investors a of SFDR Article 8 funds high standard of sustainable investment The Sustainable Finance Disclosure products. Investment strategies we Regulation (SFDR) is a fundamental classify as Article 8 will always have pillar of the EU Sustainable Finance two binding elements: our sustainable agenda. Its objectives include bringing minimum exclusion policy and one of our transparency to the market for investment sustainable investment approaches. products with sustainability-related claims, enhancing the comparability of products, Each binding element is measurable enabling investors to better understand and reportable, providing transparency the impact of their investment decisions, and clarity to our clients. We believe this and channelling capital towards more approach reduces the gap between what sustainable companies and activities. sustainable products can achieve and the Notable elements of SFDR include expectations of clients. Articles 6, 8 and 9. The first binding element enforces Article 8 is increasingly being used as exclusion criteria related to weapons, a market proxy to classify products as coal, international norms and standards sustainable. In some instances, it is being (including the UN Global Compact), used as a label in the marketing and and tobacco. distribution of funds, with implications for investors’ investment choices. The second binding element consists of one of our qualifying approaches for our With deviating perceptions among sustainability-focused or impact-focused asset managers and regulators as to product categories. what triggers classification of Article 8, See chart on page 48 on AllianzGI’s AllianzGI has determined to go beyond “Two binding elements” approach. the minimum regulatory requirements for our Article 8 classified product range in Allianz Global Investors Sustainability and Stewardship Report 2022 47