Market terminology S Sustainable Investing Sustainable Investing (SI) is the broad framework which emphasizes incorporation of ESG factors into investment decisions, to better manage risk and generate sustainable, long-term returns. SI may embrace various investment strategies such as ethical investing, thematic investing, green investing, sustainable and responsible investing, norms-based investing and ESG integration. In general it sets the stage for richer and broader investment principles in addition to financial performance. Synonym: Responsible Investing. Sustainable investment (SFDR definition) The SFDR Article 2(17) definition of sustainable investment is summarised as follows: economic activities that contribute to environmental or social objectives, do no significant harm to any of these objectives, and follow good governance principles. At AllianzGI, we have developed a proprietary method for measuring sustainable investment . T Taxonomy (EU) The taxonomy is a European regulation that builds a common European classification system for environmentally sustainable activities. The taxonomy tries to answer the question: What can be considered an environmentally sustainable activity? The taxonomy defines six environmental objectives: 1. Climate change mitigation, 2. Climate change adaptation, 3. The sustainable use and protection of water and marine resources, AllianzGI Sustainable Investing – Glossary 19