AllianzGI concepts Sustainable investment (SFDR) We have developed a proprietary method for measuring sustainable investment (as defined in the SFDR ). For this, we assess the positive contribution of a company to environmental or social objectives (using the SDGs or the EU Taxonomy objectives as reference frameworks). We base this assessment on specific business activities. For the assessment we combine qualitative and quantitative elements using external data providers but also our own research. Moreover, we consider certain types of securities, which have been issued to finance specific projects contributing to environmental or social objectives (for instance Green Bonds). Once we have identified a positive contribution to an environmental or social objective, we assess the investee company in order to avoid overall violations – the so called “do no significant harm test”. For this we use the principal adverse impact indicators (PAI) . Furthermore, we ensure that the company complies with good corporate governance standards. Only when these three criteria are fulfilled, do we count the positive contribution into our sustainable investment share of the fund. This ensures that investors can expect a detailed analysis and a robust methodology. AllianzGI Sustainable Investing – Glossary 29