01 Our sustainability approach 02 Sustainable investing 03 Active stewardship 04 Corporate sustainability 05 Appendix 02.1 Evolving our approach to sustainable investing Principle 1 If 2022 was a year of uncertainty, • Climate action – taking a long-term 2023 will be a defining year for approach to climate and decarbonisation. sustainable investing. Our focus on • Transition to a more sustainable future creating pathways to change will guide and how to facilitate that with our investors on the journey from an ESG clients and industry stakeholders. risk focus towards broader sustainability • Increasing the scalability of our solutions and, ultimately, to generating meaningful to achieve greater real-word impact. impact through their investments. • Implementing our impact framework Our 2023 plans will see further from private to public markets and implementation of our conviction-led across different asset classes. approach including: • Building on the sustainability insights engine as a proprietary tool feeding • Guiding clients to better understand the into research, stock selection, investment risks and opportunities of reporting, and compliance. key sustainability themes. • Strengthening our firm-wide knowledge and capabilities around sustainable investing for integrated client service. 2022 Data Research Stewardship Private markets Regulation • Launch of new key • 16 sector frameworks developed as input for • Admitted as a • Continued success in • Successful implementation performance indicator stewardship activities and investment decisions signatory of the UK blended finance with of MiFID II and SFDR L2. (KPI) carbon approach to • >460 assessments on sustainable business activities Stewardship Code EMCAF endorsement by AllianzGI funds account for >40% enhance methodology set conducted as basis for MiFID II commitments • Externally recognised G7 alongside conversion/ of European market-wide Article focus on social and development of >10 8 and 9 funds committed to all • 11 thematic papers published climate voting Article 8 and 9 products 3 MiFID sustainability parameters Allianz Global Investors Sustainability and Stewardship Report 2022 33