01 Our sustainability approach 02 Sustainable investing 03 Active stewardship 04 Corporate sustainability 05 Appendix 03.6 Escalating engagement concerns Principles 7 11 Companies are not always We prefer to engage directly with responsive to our concerns companies but, where direct engagement raised through engagement or does not progress satisfactorily or their actions do not give due where our shareholding is insufficient for an effective escalation in our consideration to the interests own right, we consider other options. of minority shareholders. If we These may include: conclude that our concerns • Voting against resolutions at cannot be resolved through shareholder meetings. standard interactions with • Collaborating with other institutional investee companies, we may investors on single issues. consider escalation to achieve • Joining a collaborative engagement our engagement objectives. initiative co-ordinated by investors, trade associations and other Our engagement approach depends organisations where these seek on the circumstances and nature of to address market or industry- concerns. Escalation options are not wide concerns. mutually exclusive and can be combined • Expressing concerns through advisers to depending on the situation. Initially, the company, for example in merger and engagement is typically escalated through acquisition (M&A) situations. additional meetings with management • Co-filing/filing resolutions at and more intensive dialogue with non- shareholder meetings. executive directors or with the chairperson. • Reducing or exiting our investment We prefer to address issues directly with a position when appropriate (any decision non-executive board chairperson, lead or to exit an investment position is taken at senior independent director, or other non- a portfolio level). executive board members to gain senior input on the matters of concern. We consider We consider making public statements emphasising our position to the board in in respect of individual companies as a writing if we have the impression that direct last resort when all other channels of interaction has been unsuccessful. constructive dialogue have been exhausted. Allianz Global Investors Sustainability and Stewardship Report 2022 84