01 Our sustainability approach 02 Sustainable investing 03 Active stewardship 04 Corporate sustainability 05 Appendix 02.6 Sustainable investing categories Principle 7 Shaping sustainable pathways towards change Impact Investing team The Impact Investing team at AllianzGI provides equity financing This climate adaptation-focused to generate positive environmental and social impact. transaction exemplifies EMCAF’s focus on financing innovative solutions for The team manages three fund-of-funds CCSF finances development and climate transition in the real asset space. strategies, two of which are emerging operation of first-of-its-kind energy This strategy operates at the nexus of market-focused blended finance vehicles efficient cold chain infrastructure in East climate change – spanning mitigation that bring together public investors to Africa. As climate change increases the and adaptation, food security and health de-risk the underlying investment universe frequency of extreme weather events, with strong positive impact expected for and mobilise large scale institutional including drought and torrential rain, agricultural producers, farmers and the capital to close the equity financing gap adequate cold storage facilities are broader population. in these markets. vital to hold food reserves and extend The first pilot facility in Nairobi, availability of agricultural produce to non- Kenya, should be operational in early We launched our latest vehicle – the harvest seasons. Without this capability, 2023 and other facilities are at various Emerging Market Climate Action Fund local communities are exposed to food stages of development throughout (EMCAF) – in late 2021 jointly with the insecurity associated with such weather the region. European Investment Bank (EIB). EMCAF is events. Cold chain infrastructure facilitates an innovative blended finance fund that a more resilient food supply stock and finances climate mitigation and adaptation supports climate adaptation for climate- as well as environmental projects in Africa, vulnerable communities. It also addresses Asia, Latin America, and the Middle East. high rates of food losses and associated GHG emissions in East Africa, with rotting In 2022, EMCAF closed its first transaction food a large source of methane emissions, –a USD 15 million investment in ARCH a GHG 25 times more powerful than CO . 2 Cold Chain Solutions Fund (CCSF). Allianz Global Investors Sustainability and Stewardship Report 2022 58