P Positive screening Positive screening involves the active inclusion of companies within an investment universe because of the social or environmental benefits of their products and/or processes. It is a form of Sustainable and Responsible Investing (SRI) . Principal adverse impact Impacts of investment decisions that result in negative effects on sustainability factors, eg, environmental, social and employee matters, respect for human rights, anti-corruption and anti-bribery matters (as defined in the SFDR ). Since March 2021, asset managers need to disclose how they take into account Principal Adverse Impacts (PAI) in the investment process. A list of PAI indicators and metrics that are considered to have a negative impact has been defined and includes 14 indicators applicable to corporate issuers, and two applicable to sovereigns and supranationals. At AllianzGI, we have developed measures to consider PAIs in the investment process of our sustainable mutual funds. Proxy voting Proxy voting is where a vote is cast on behalf of a shareholder. By exercising their voting rights during Annual General Meetings (AGMs), investors can push for changes in the conduct and practice of investee companies. Allianz Global Investors’ Proxy Voting policy is available here . Market terminology AllianzGI Sustainable Investing – Glossary 14