01 Our sustainability approach 02 Sustainable investing 03 Active stewardship 04 Corporate sustainability 05 Appendix 03.7 Exercising our voting rights Principles 7 11 12 In the US, we voted against almost 60% of Climate-related resolutions framework. As climate transition plans benefits of reduced emissions, we such resolutions. A frequent concern was 2022 marked our second year of voting on are specific in nature, we evaluated believe that having good visibility of around resolutions to increase authorised two types of climate-related resolutions. around 50 Say on Climate resolutions on supply chain emissions brings strategic common stock by over 10% where these The first type is put to vote by management, a case-by-case basis using these sector benefits to companies and their were not undertaken in exceptional the so-called Say on Climate, typically to specific frameworks. shareholders, as well as improving the circumstances and appropriately justified seek shareholder approval for climate quality and resilience of supply chains. by the company. strategy, GHG reduction targets and action 1. We voted against the approval of plans. The second type of resolution is put a climate report of an Australian oil Voting shareholder resolutions 1. We voted against a capital-related to vote by shareholders and varies in scope, and gas company. The company’s In 2022, we voted on 2,600 shareholder resolution at the AGM of a Chinese often requesting the company sets more commitment for net zero by 2050 only resolutions globally. There were record company. The company intended to ambitious climate commitments, enhances covered Scope 1 and 2 emissions. numbers of shareholder resolutions in provide full guarantees to several disclosure or takes specific action. There were no Scope 3 targets in the US in 2022; these resolutions were non-wholly owned subsidiaries and place and the reduction strategy was by far most prevalent in this market. external third parties, without giving We generally support shareholder vague. While the company considered Shareholder resolutions have the potential persuasive justifications or purchasing resolutions that ask companies, for its approach to be Paris-aligned, to play an important role in shaping counter guarantees. Regarding this example, to report on their climate we did not assess its strategy as companies’ sustainability and governance type of commonly observed practice, change strategy in alignment with the credible without inclusion of a Scope 3 practices. To explain our view and the disproportionate guarantee liabilities Paris Agreement or seek information reduction target. At the same annual approach, we published a paper on the would expose listed companies on climate-related financial, physical or meeting, shareholders filed three topic in our series Stewardship Principals. to excessive risks relative to their regulatory risks and how the company other proposals which we supported ownership interest. Therefore, we manages such risks. We evaluate these to encourage enhanced transparency We typically support longer-term focused opposed these proposals. This is part resolutions on a case-by-case basis as they and better alignment with a Paris- resolutions with a focus on improving of our engagement focus in the market are often specific to each company. aligned approach. corporate practice and transparency. and we observe an increasing number We tend not to support resolutions that of listed companies starting to purchase We continued to strengthen our voting 2. We supported a shareholder resolution are too granular, overly restrictive, likely to counter guarantees to mitigate guidelines around say on climate at a US retail company requesting the impose an unreasonable administrative investor concerns. resolutions, including director accountability. adoption of targets to reduce full value burden, or where we believe a We also refined our approach to assessing chain GHG emissions. Retailers can and company has already demonstrated companies’ climate transition plans, with our should influence Scope 3 emissions reasonable progress. stewardship analysts and Research team to progress along a science-based joining forces to establish an analytical trajectory to net zero. Beyond the Allianz Global Investors Sustainability and Stewardship Report 2022 92