Introduction In conversation with our Global Head of Investments Principle 1 and Global Head of Sustainable and Impact Investing by staying ahead of where investors and classic example, whereby we develop a sustainability and financial performance We made research a key part of financing priorities are going. It means portfolio not just based on managing ESG in a portfolio. There’s a growing number of our team for a reason, starting with being innovative with how we create risk but on aiming to deliver outcomes different sources of sustainability data and defining what ESG factors are key for each and funnel investments. And it requires that support the pathway to net zero. it can be difficult to reconcile these sources sector in order to feed the development of strengthening our focus on corporate Beyond sustainability considerations, impact into meaningful insights. That is why we new data analytics software. The launch sustainability and ensuring all our goes further by targeting measurable social have invested heavily in creating an ESG of SusIE, our Sustainability Insights Engine, employees can contribute, while holding or environmental benefits as well as an data architecture and platform that can represents a significant milestone for ourselves to the high standard of investment return. This is the most ambitious service our own ratings and screening, and our journey to create our own dataset governance that our stakeholders expect. level to achieve. It requires a portfolio enable us to look at markets and portfolios and processes to drive our sustainable manager to have a strong impact conviction, to determine how to push forward on performance. Now that the heavy lifting Can you describe what you and the opportunities can span both sustainability outcomes while aiming to has been done in creating the tool, the mean by the journey from ESG public and private markets. AllianzGI has maintain financial outperformance. next steps will be the addition of modules to sustainability to impact? developed an impact scoring framework for of stewardship and engagement in 2023. Beyond the big events we’ve seen in private market investing and an emerging the headlines this year, we think the body of industry standards is enabling more move from ESG to sustainability to impact accurate measurement and reporting for will be the long-term trend of the decade. impact investing. Over time, expect to see To explain, ESG is the foundation from which more portfolios being developed to meet a we must develop our long-term approach. range of goals, which will be well-defined It’s a base level of risk management that for investors from the outset. clients expect of sustainable investments in terms of assessing and filtering out risks. How are you addressing data Building on that, sustainability shifts the needed to support the journey? purpose from risk management towards The importance of data cannot be developing purposeful solutions that are overstated, in terms of delivering created to deliver outcomes needed by impact, keeping pace with regulation, and society, like those targeted by the United delivering financial returns. To be robust Nations’ Sustainable Development Goals in our approach to Article 8 funds, as (SDGs). This requires a solution mindset defined under the EU’s Sustainable Finance that uses ESG intelligence to solve the Disclosure Regulation, we need our own key challenges. Decarbonisation is a ratings and screening process to reconcile Allianz Global Investors Sustainability and Stewardship Report 2022 07