Market terminology I Impact investing Impact investing is an investment strategy that seeks to generate positive, measurable environmental and/or social impact alongside a financial return. Impact investing is defined by the core characteristics below: – Intentionality: intent to contribute to material and measurable social and/or environmental benefit is clearly expressed and the investor identifies outcomes that will be pursued – Evidence-based: impact investing needs to use evidence and data where available to drive intelligent investment design, such that there is increased confidence that the investment would contribute to material social and environmental benefits – Measurement and management: impact measurement and management framework in place to enable assessment of the level of expected impact prior to investment, and to support the measurement, management and reporting of impact goals over the life of the investment J Just transition Just transition ensures processes are in place to ensure that those affected by the transition to a carbon-neutral economy are supported in a way that is fair and inclusive. AllianzGI Sustainable Investing – Glossary 10