Impact investing The Impact Investing approach is part of our Impact-focused categor y. Within our Impact-focused category, what distinguishes the Impact Investing approach from our SDG-aligned approach is that Impact Investing strategies must measure and show evidence of associated positive (net) outcomes – rather than simply relate to a social or environmental theme. We provide an increasingly broad range of impact investments, including green bonds for public markets and a variety of private market investments ranging from renewable infrastructure to development finance . Inclusive capitalism One of the firm’s three sustainability thematic pillars alongside climate change and planetary boundaries . Inclusive capitalism refers to the thematic concept about driving fairness and inclusion regarding access to life essentials, which are core to existence (eg, food, water, energy,...) and livelihood essentials, which are core to human development in our modern world (eg, decent work, education, financial services, digital tools,...). It is highly interlinked with the other two thematic pillars noticeably with the just transition to a net zero world. The objective is to create a more inclusive, fairer and sustainable world at the global, national, business and community levels. Integrated ESG (IESG) The integrated ESG (IESG) approach is part of our ESG risk-focused categor y. The main objectives of our integrated ESG approach are to analyse financially material ESG factors in our investments and develop a forward-looking ESG risk and opportunity assessment that is part of our judgement of the broader investment case. IESG: – applies our firm-wide exclusions – requires investment teams to monitor financially material ESG risks for each portfolio holding: if a (core) portfolio holding exhibits a risky ESG profile, the PM team needs to write a risk-reward trade-off comment before making any further trade – investment teams are expected to engage with poorly rated companies to improve their ESG performance, increase disclosure about ESG metrics or better understand how ESG tail risks could impact the long-term performance of the investment. AllianzGI concepts AllianzGI Sustainable Investing – Glossary 25