K KPI-based approach The Key Performance Indicators-based approach has recently been rolled out with the first KPI being Greenhouse Gas (GHG) intensity. The main advantage of the KPI-based approach is the ability to quantify the sustainability feature of a portfolio and being able to report outcomes on a regular basis. The KPI-based approach allows to choose between two objectives: – To outperform a reference investment universe or benchmark on at least one environmental or social KPI, or – to achieve an ongoing year-on-year improvement on a chosen environmental or social KPI. M Multi Asset Sustainability Strategy Portfolios managed according to our Multi Asset Sustainability Strategy invest in accordance with one of the following investment approaches: – the SRI best-in-class approach, which focuses on issuers with positive environmental and social characteristics – the Climate Engagement with Outcome (CEWO) approach, which aims to engage with companies on the climate transition pathway towards a CO 2 net-zero future – the SDG-aligned approach, which invests in companies with solutions that contribute to positive environmental and societal change in alignment with the UN’s Sustainable Development Goals – or in green bonds financing environmentally friendly projects and having a positive environmental impact AllianzGI concepts AllianzGI Sustainable Investing – Glossary 26