01 Our sustainability approach 02 Sustainable investing 03 Active stewardship 04 Corporate sustainability 05 Appendix 02.6 Sustainable investing categories Principle 7 Shaping sustainable pathways towards change Debt financing in developing countries The Development Finance team at AllianzGI focuses on private debt capture any ESG-related items pending investment opportunities that mobilise scalable commercial capital completion. To ensure ongoing ESG in the direction of emerging markets to support the UN SDGs. compliance, the borrower will provide ongoing reporting on the ESAP progress and other ESG requirements during the We have raised more than EUR 3.1 billion connecting several cities across the life of the facility. across our Development Finance strategies, country. The road is part of the country’s including blended finance debt vehicles. national efforts to improve essential The financing is expected to generate Strategies are created through partnerships infrastructure. The financing includes a positive outcomes including reduced with public sector institutions that bring credit guarantee provided by a European transportation time between cities, together market knowledge, investment Export Credit Agency for the benefit of improved road safety and increased expertise and different types of capital. the investors. economic growth of the populations These partnerships result in investment along the road as a result of greater opportunities that aim to contribute to In addition to detailed credit analysis, trade within the country and with reducing the SDG funding gap in the we evaluated a number of ESG issues its neighbouring sovereign. countries that need capital the most. including a Human Rights Assessment, an evaluation of expected GHG For example, AllianzGI on behalf of emissions of the project as a result of the investors provided an East African road improvements, and the project’s sovereign with financing to support compliance with the IFC Performance the rehabilitation and construction Standards. An Environmental and Social of an approximately 90km-long road Action Plan (ESAP) was prepared to Allianz Global Investors Sustainability and Stewardship Report 2022 59