01 Our sustainability approach 02 Sustainable investing 03 Active stewardship 04 Corporate sustainability 05 Appendix 02.3 Sustainability methodologies and analytics Principle 4 Leveraging ESG data also supports the development of innovative sustainable investment approaches. Leveraging ESG data Our new KPI approach was rolled out Developing robust methodologies and over 2022. It considers and addresses analytics based on the overall ESG environmental and social challenges dataset to which we have access is one of within the portfolio construction process AllianzGI’s core competencies. This begins by defining sustainability as a KPI with methodologies to assess the ESG objective that must be met at portfolio characteristics of issuers, both corporates level. Targeted, measurable and reported and sovereigns. It includes climate outcomes on the carbon intensity KPI will analytics to monitor the impact of climate serve to strengthen our approach. In 2023, change and the Paris Agreement-aligned we will develop additional KPIs including, commitments of a specific corporate. but not limited to, sustainable investment share, net zero alignment share and Improved corporate disclosure biodiversity footprint. informs the design of innovative proprietary frameworks for evaluating sustainability risks and opportunities. Leveraging ESG data also supports the development of innovative sustainable investment approaches. Allianz Global Investors Sustainability and Stewardship Report 2022 40