01 Our sustainability approach 02 Sustainable investing 03 Active stewardship 04 Corporate sustainability 05 Appendix 03.4 Engagement outcomes Principles 7 9 Our engagements sought to explore Increasing transparency on Through the UK-based Investor Forum in require close attention by investors. how companies assess the materiality plastic pollution 2018, AllianzGI supported a project which Tackling climate change raises new of biodiversity and where they stand in Microplastic pollution poses a severe sought to develop standards for companies challenges when it comes to managing terms of integrating it. We encouraged threat to marine biodiversity and has to handle plastic pellets within their supply a just transition. Within the inclusive companies to act on reducing their negative environmental and social impacts. chains. We co-sponsored the creation of capitalism theme, human rights and biodiversity impact and will use the Pre-production pellets (nurdles), which form PAS 510 2021, a document that builds on labour rights as well as diversity were outcomes of discussions to shape our the building blocks of all plastic products, the groundwork laid by Operation Clean focal points of our engagement in 2022. biodiversity engagement approach are the second largest source of primary Sweep® to create a standardised and going forward. microplastic emissions to the environment. consistent approach to risk management We expect companies to adhere to and containment of pellets. This document relevant frameworks including the UN is a key component of a formal certification. Guiding Principles on Business and Human In 2022, we fulfilled our commitment Rights. Companies have a responsibility Shaping sustainable pathways towards change to engage with companies around the to protect human rights within their own issue and to encourage the adoption of operations (workforce) and at upstream the PAS. We held discussions with key (suppliers) and downstream (clients) Engaging a forest-product company producers of plastic resins with a focus on levels. This is especially important in European companies. Our first aim was countries where human rights standards on their biodiversity impact to develop a baseline understanding of are lower and where there are greater how relevant this issue was to the business risks of on-the-ground controversies. We engaged with a paper and forest- company remained conservative and what actions were taken to mitigate product company to understand in reporting progress and setting potential risks. In future, we plan to engage In 2022, we continued to engage with whether its biodiversity target and targets, it is committed to doing more with the value chain, including logistics/ companies on controversies, for example strategy are sufficiently ambitious and once it is more comfortable with transportation providers and end users. related to human rights and labour comprehensive. From the engagement, biodiversity measures and progress. rights, to seek more information, we understand that biodiversity is We encouraged the company to 03.4.3 Engagement topic: understand remedial actions and push for considered a key material topic in the demonstrate how biodiversity could Inclusive capitalism change. This engagement often related company’s sustainability strategy. help to achieve its climate goal as We are convinced that to names held in our sustainable funds to The company has a comprehensive the topics are closely interlinked inclusion will become the confirm whether certain companies were strategy in place to manage its impact –especially for forest-based next big topic of public focus in addition investable or not. on biodiversity, which it considers business models. to climate change. The many inequalities across the value chain. While the that exist and overlap globally are the centre piece of this theme and Allianz Global Investors Sustainability and Stewardship Report 2022 74