01 Our sustainability approach 02 Sustainable investing 03 Active stewardship 04 Corporate sustainability 05 Appendix 03.4 Engagement outcomes Principles 7 9 In the following pages, we discuss engagement and related outcomes under the three strategic sustainability themes of climate change, planetary boundaries and inclusive Shaping sustainable pathways towards change capitalism – along with governance. 03.4.1 Engagement Engaging oil and gas companies Engaging on an oil spill incident topic: Climate change on the energy transition We have engaged one company The most recent engagement focused In 2022, we had 217 Our increasingly thematic and focused on its energy transition strategy, on an oil spill incident. Due to the nature direct conversations with approach to engagement targets climate targets and a more of the incident, we were concerned companies about climate change. organisations where the implications are comprehensive range of governance, with the response of the company and We approached many companies to most significant, such as oil companies. community and social due diligence questioned its sensitivity in dealing challenge their climate transition targets We continued our engagement with oil topics for several years. We scrutinised with ecological and social impacts. and pathways and understand how and gas majors and spoke with energy GHG emissions reduction targets, We challenged them on how they they intend to amend their business companies on 26 occasions. capital allocation to low-carbon tried to mitigate the effects of the spill model and employ new technologies to technologies and climate lobbying on the environment and its impact on progress to net zero. Many discussions policy. We also questioned challenges local communities who make a living also focused on climate risk assessments faced with respect to commitment to a from the sea and surrounding beaches. and how companies are reflecting climate In 2022, we had just energy transition. We were pleased to see prompt action risk in their strategies, operations and and continue to monitor progress and product pipelines. Our engagement financial implications closely. focus reflects the increasing importance clients place on decarbonisation targets of portfolio companies. Climate and other environmental issues continued to gain 217 relative importance in our engagement activities, increasing their share by three direct conversations with percentage points to account for 25% of companies about climate change. all engagements in the past year. Allianz Global Investors Sustainability and Stewardship Report 2022 72