01 Our sustainability approach 02 Sustainable investing 03 Active stewardship 04 Corporate sustainability 05 Appendix 03.4 Engagement outcomes Principles 7 9 Shaping sustainable pathways towards change Shaping sustainable pathways towards change Investigating a human rights Engaging on labour rights issues controversy with a heavy We engaged an outsourcing company With respect to the content moderation over concerns with respect to labour business, the company held the view machinery producer practices in its content moderation of being compliant with the UN Global business. We investigated allegations Compact. Given the seriousness of the We engaged with a heavy machinery Countries are assessed for risk according of union busting and asked for allegations, we asked for information producer to understand how a severe to the ranking of a data provider and clarification on the way employees on the internal and external audits that human rights controversy – which this serves as an input for the business to were trained and equipped to perform were to be conducted. triggered a temporary exclusion for decide the level of due diligence to apply. their job, which could result in adverse investments in our SRI funds – resulted For higher-risk customers, they follow a health issues. We raised our severe Since then, the company has in a specific approach of human rights more thorough, centralised approach. concerns that the company is not announced its decision to exit the risk mitigation in sales, and whether We made recommendations to further managing the issues arising in this part highly egregious part of the content this was stringent enough to address strengthen the approach. We appreciate of the business properly. moderation business and a global the risk of repeated occurrence in other how the company has improved and agreement with an international countries where the company has will continue to monitor whether it With respect to allegations of union trade union. We consider this positive sales relationships. has integrated our suggestions into its busting, the company denied them action to be a result of heightened policies and processes. and stated that they were in discussion investor pressure. Since the controversy occurred, the with the trade union dedicated for their company has developed a robust industry. We strongly encouraged them approach centred around its human to come to a fair agreement with the rights policy. As a decentralised business, trade union to alleviate the situation. each business area is responsible for driving the responsible sales approach with the support of centralised experts. Allianz Global Investors Sustainability and Stewardship Report 2022 75