01 Our sustainability approach 02 Sustainable investing 03 Active stewardship 04 Corporate sustainability 05 Appendix 01.1 Evolving our strategic approach Principles 1 4 9 Ensuring regulatory compliance and Our approach to sustainable investing We seek to inform, not prescribe, the ESG, extreme weather events as the second organisational resilience is key. We are We aim to simplify the complexities of sustainability and climate profile of greatest risk after the cost of living. developing harmonised, visible and sustainable investing by guiding investee companies. Our aim is to Over the next 10 years, the report transparent processes to simplify, and partnering with clients and motivate inclusive sustainable growth by identifies the top three risks as failure scale and enhance process quality other stakeholders to offer effective actively partnering for forward-looking to mitigate climate change, failure of and efficiency. It is essential that our solutions that address diverse solutions and creating real-life change climate change adaptation, and natural leaders have the right knowledge, investment objectives. through collective action. disasters and extreme weather events. experience, professional qualifications, In fourth position is biodiversity loss integrity and soundness of judgement. Our sustainable investing philosophy This includes responding to regulatory and ecosystem collapse. We see these We also need every employee to have the centres around an investee entity’s demands and challenging climate risks as closely interdependent and this understanding and capabilities to meet future “operating and financial and geopolitical events. The World view underpins our holistic approach to our standards. That is why compliance is resilience” in evolving economic and Economic Forum’s Global Risks Report sustainable investment. central to performance appraisal and we 3 ranks natural disasters and climate scenarios, and its positioning 2023 monitor for breaches and misconduct with in different investment strategies. a range of possible outcomes. Our investment in the sustainability function supports our culture principle of “being sustainable in everything that we do”. Bringing the Corporate Sustainability We aim to simplify Officer (CSO) function together with sustainable and impact investing cements the complexities AllianzGI’s commitment to operate as a sustainable business in a world in of sustainable which investors require a diverse range 2 investing by guiding of sustainable products and solutions. This will ensure that we operate as a good and partnering corporate citizen by positively contributing to communities and society, and delivering with clients and sustainable value for stakeholders. For more information, see section 04. other stakeholders. 2 For the avoidance of doubt, whenever using the term sustainable product/fund in this publication, AllianzGI refers to a product or fund classified as Article 8 or 9 under SFDR as a minimum criteria. 3 https://www3.weforum.org/docs/WEF_Global_Risks_Report_2023.pdf 14