01 Our sustainability approach 02 Sustainable investing 03 Active stewardship 04 Corporate sustainability 05 Appendix 01.2 Strengthening sustainability governance Principles 1 2 Linking sustainability with remuneration clear lines of responsibility. Sub-teams Sustainability Research and is gender-balanced as part of our The International Management Group cooperate closely and report directly Stewardship teams: manage thematic commitment to diversity, which enables –comprising senior functional heads to Matt Christensen, Global Head of research and engagement strategy and us to create a holistic and interdisciplinary from across the firm – has sustainability Sustainable and Impact Investing. develop a thematic approach along view on all aspects of sustainable embedded in its goals through firm- the strategic topics of climate change, investment. We continuously assess the wide global solidarity goals. A specific Sustainable Investment Office (SIO) planetary boundaries and inclusive training needs of the team and several sustainability goal was introduced in team: shapes AllianzGI’s overall capitalism. The Stewardship team leads team members have participated in the 2021 and implemented in 2022. This goal sustainable investment strategy and AllianzGI’s engagement and proxy-voting CFA UK Level 4 Certificates for Climate targets sustainability achievement as policies and its sustainable product activities globally. and Investing and Investing in ESG, measured by delivery of above-median strategy, as well as leading key helping to develop this course which was signatories’ Principles for Responsible initiatives. The team plays a critical role in Strengthening our focus on in its pilot phase at the time. The outcome Investment (PRI) results. Achievement of providing knowledge to clients and other corporate sustainability of this was to widen the spread of climate the global solidarity goals5 influences stakeholders on AllianzGI’s sustainable In May 2022, we established the role of knowledge, which in turn means we can the firm-wide remuneration pool. investment capabilities. Corporate Sustainability Officer (CSO) to be more effective in deploying relevant AllianzGI functions are also embedding ensure AllianzGI’s organisational business expertise across our activities such sustainability considerations into team Sustainability Methodologies and practices are environmentally and socially as engagement. and individual goals. For instance, Analytics (SMA) team: responsible for sustainable. The CSO communicates the investment platform has implemented driving innovation using state-of-the-art and coordinates with management, Growing our impact investing expertise goals that specifically reflect the way technology and ESG data. This includes clients, employees and community Impact investing is an important and fast- sustainability is integrated into the fund employing artificial intelligence (AI), partners to address sustainability issues. growing asset class that facilitates positive and focus areas of each team. natural language processing (NLP) The role develops, manages and monitors change while resonating with growing and new forms of data to support the corporate sustainability strategy. interest from clients. Opportunities are 01.2.2 Investing in our team the Sustainability Research team, increasing fast, particularly in private With sustainability and impact being developing new methodologies across Widening our climate knowledge markets. Where investors previously a strategic growth area, AllianzGI has asset classes, delivering innovative tools The members of the Sustainable and thought only in terms of risk and reward, established a growing team dedicated for our investment platforms and shaping Impact Team have a diverse range of they can now add impact as a third to sustainable investment and shaping client-oriented solutions. The team professional backgrounds including dimension of oversight for their portfolios. sustainable pathways. It now includes oversees ESG integration and scoring finance, investment, legal, environmental close to 40 team members structured with approaches and develops the climate and sustainability expertise. The team strategy dataset. 5 Solidarity goals are corporate goals specific to Allianz Global investors which include, for example financial targets, client service metrics, employee engagement targets. 21