Market terminology E ESG rating or score ESG rating or score is an opinion on the strength of a corporate/sovereign issuer on a specific pillar (Environmental, Social or Governance) or the overall strength. Depending on the research provider’s methodology an ESG rating may express different things. Some providers aim to express a forward-looking opinion on material ESG risks and opportunities. The final rating typically informs portfolio managers about the potential material ESG risks they are exposed to by being invested in the underlying issuer. They can also reflect the level of responsibility of the company towards all its stakeholders (environment, employees, suppliers, clients, shareholders, public authorities). Ethical investing The concept of ethical investment varies between individuals because it is often based on a philosophy or certain moral principle which is underlying the investment strategy. It is often related to negative screening such as exclusion of arms, pornography, tobacco and gambling. G Green bonds Green bonds are bonds where the proceeds finance dedicated projects that have measurable environmental benefits, tackling issues such as: renewable energy, energy efficiency, clean buildings, clean transportation, water and waste management. The Green Bond Principles are voluntary process guidelines that recommend transparency and disclosure and promote integrity in the development of the Green Bond market by clarifying the approach for issuance of a Green Bond. AllianzGI Sustainable Investing – Glossary 9