01 Our sustainability approach 02 Sustainable investing 03 Active stewardship 04 Corporate sustainability 05 Appendix 02.6 Sustainable investing categories Principle 7 02.6.3 Impact-focused Intention: The intention of a strategy and Successive crises including Covid-19, Increasing numbers of investors no its investments is to generate incremental the war in Ukraine and the climate Looking ahead longer see environmental sustainability positive social and/or environmental value emergency are exacerbating inequalities Partnering with industry bodies and social equality as an add-on to while delivering financial returns. between and within countries and stifling looking to create clear ESG standards their investment strategy as they move progress to achieve the Sustainable in private markets will remain an beyond pure financial returns – and Association: There is a clear association Development Goals (SDGs) and the Paris area of focus in 2023. Convergence of 4 Meeting the UN SDGs by the standards will help increase the even beyond ESG risk management – between each investment and the positive Agreement. towards positive outcome-orientated output delivered. target year of 2030 will require substantial availability of relevant ESG data that investment approaches. investment from both the public and informs investment decisions and Measurement and reporting: private markets. ongoing engagement with our private We support investors who want to see The impact will be measured on a “best market investments. One challenge a positive change for the planet and effort basis” and reported in order to the market faces is the availability society while generating a financial validate each strategy. of data and transparency to fully return. Impact investing contributes to inform investors on ESG topics. material positive environmental and/or AllianzGI’s impact investments can While improving, we aim to enhance social outcomes that can be measured be accessed through private markets The intention of the transparency of our investments against specific goals and, in many cases, (eg, private equity impact fund of funds) which is becoming increasingly against the United Nations Sustainable or public markets (eg, green bonds). a strategy and its necessary from a regulatory point Development Goals (SDGs). Impact investing also extends to our of view. We will continue to consider blended finance approaches, where investments is to how best to tackle this by engaging Impact investing strategies capital from commercial investors with our assets and using technology Our Impact-focused strategies enable is combined with philanthropic and generate incremental to collect and leverage information in clients to maximise their exposure public sector funds to maximise impact, positive social and/ the investment process and report on to positive environmental and social especially in emerging markets where it to our clients. outcomes by offering impact-focused commercial investors benefit from or environmental approaches across public and private de-risking. This approach can mobilise asset classes. These strategies are defined large-scale private capital in developing value while delivering by three core beliefs: countries and contribute to closing the financial returns. United Nation’s Sustainable Development Goals financing gap in development countries, which grew in 2022. 4 https://www.oecd.org/finance/global-outlook-on-financing-for-sustainable-development-2023-fcbe6ce9-en.htm Allianz Global Investors Sustainability and Stewardship Report 2022 51