01 Our sustainability approach 02 Sustainable investing 03 Active stewardship 04 Corporate sustainability 05 Appendix 01.1 Evolving our strategic approach Principles 1 9 01.1.1 What sustainability Corporate sustainability at AllianzGI Allianz – and their trust is fundamental to means to us We are elevating the importance of our social licence to operate. This means Our commitment to shaping sustainable corporate sustainability as a driver for we must be transparent in how we pathways addresses client needs sustainable growth in the face of the communicate our successes and failures alongside the needs of society and our climate crisis and societal challenges. as we continue to learn and evolve planet. To be a sustainability shaper, In driving sustainable pathways towards our approach. we must take a holistic approach. change, we must go beyond our focus on of institutional investors say the resilience and long-term growth of Over the course of 2022, we continued they now subject ESG to the Sustainability and sustainable investing clients’ assets and aim for the same deep to enhance the sustainability function same scrutiny as operational are complex and wide-ranging. We are scrutiny and due diligence to our own with a dedicated focus on corporate and financial considerations. constantly learning and testing innovative impact as a company. This is how we will sustainability and a mandate from our approaches and forging partnerships. continue to embed trust in the AllianzGI Executive Committee to deliver long-term In May 2022, Allianz SE announced brand as a corporate citizen and a business value without compromising the resolution of US governmental Being a sustainable and resilient business responsible steward of assets. people, planet or profit. This means taking investigations concerning our Structured is an essential part of this journey, a balanced and forward-looking approach Alpha funds with a guilty plea by Allianz alongside driving sustainable growth Stakeholders are demanding increased that demonstrates social accountability Global Investors US. Following heavy losses through investing. Innovation is key corporate responsiveness on sustainability, and a commitment to transparent in the funds during the Covid-19 market and we constantly learn as we progress and complex legal and enterprise reporting, partnerships and engagement. turmoil, we fully cooperated with from an ESG focus to sustainability risk issues require a more defined and investigations by US authorities. It became and on towards real-world impact sophisticated approach. According to At the core of our approach is a apparent that three former employees 1 manipulated numerous bespoke client across our three strategic focus areas of the latest Edelman Trust Barometer , commitment to inclusive meritocracy – climate change, planetary boundaries, public trust in business is declining in building and enhancing a culture and communications to understate the risk of and inclusive capitalism. several countries, including Germany, working environment where people and portfolios. As soon as the misconduct was See visual on page 15. and 88% of institutional investors say they performance matter. We promote a established, we took quick and forceful now subject ESG to the same scrutiny as culture that is built on mutual trust and action. We continue to implement targeted operational and financial considerations. respect, empowerment and collaboration. enhancements to further strengthen We foster diversity and client satisfaction as oversight, investment analytics and client We are accountable to all our top priorities, along with the environmental communication controls. stakeholders – including clients, management of our operations and employees, societal partners, philanthropic engagement with local regulators and our parent company, communities and wider society. 1 https://www.edelman.com/trust/2021-trust-barometer/investor-trust. 13