03.2 Strategy Renewable energy Emerging Markets Climate Action Fund (EMCAF) Allianz Capital Partners, our private equity business, has a In November 2021, the European Investment Bank (EIB) and dedicated renewable energy strategy which it manages AllianzGI launched the Emerging Market Climate Action for both Allianz and third party clients. The team invests in investment approach in a public-private partnership, with the energy infrastructure sector with a focus on renewable the governments of Germany and Luxembourg, the Nordic energy assets like wind and photovoltaic plants, and as a Development Fund, Allianz, Folksam and EIB as anchor result contributes to the generation of renewable energy and investors. EMCAF will invest in climate-focused investment avoidance of carbon emissions, both of which are actively funds and projects active in emerging markets and developing measured and monitored. The impact on carbon emissions countries. Its focus will be on climate mitigation, climate reduction of the acquired assets is compared to the regular adaptation, and access to electricity. This approach aspires country specific energy mixes, including traditional energy to become a European flagship impact investing initiative, sectors. In the calculation the annual production per asset is mobilising substantial amounts of private capital to get climate used to calculate the actual asset specific carbon emissions action projects off the ground in Africa, Asia, Latin America and and to compare these emissions to the theoretical emissions the Middle East. EMCAF are expected to support a significant assuming the amount of energy would have been produced amount of new clean energy capacity globally. in the country specific energy mix. EMCAF targets specialised investments to support projects For the European geographically focused capabilities, the like onshore windfarms and solar photovoltaic plants, or small- information on emissions per MWh for each country is based on and medium-sized hydropower plants. It could also support the “total supplier mix”, which is taken from the study European energy efficiency projects in housing or industry, or projects Residual Mixes. Results of the calculation of Residual Mixes for bringing environmental or resource efficiency benefits. To help the calendar year 2020 were published by the Association of emerging and developing countries to adapt to the impacts of Issuing Bodies on 31 May 2021 (Version 1.0). climate change, the approach could also finance projects that For the US geographically focused capabilities, equivalent support cities and their public transport. numbers were taken from the report “U.S. Energy-Related Managed Co-Lending Portfolio Program (MCPP) One Planet Carbon Dioxide Emissions, 2020” posted by the U.S Energy At the UN Climate Conference in Glasgow in November 2021, Information Administration in December 2021. As of AllianzGI, Allianz SE and International Finance Corporation today, our carbon and ESG reporting fulfil all regulatory (IFC), a member of the World Bank Group, announced they requirements stemming from the latest EU Taxonomy will provide USD 3 billion to private enterprises in developing regulations and are aligned with the French Energy economies through a Managed Co-Lending Portfolio Program Transition Law in its article 173, as well as the regulations (MCPP). The investors’ contributions will be combined with arising from our compliance with minimum social IFC’s own funds, to scale up climate-responsible financing in safeguards. The list of these regulations includes, but emerging markets which is aligned with the Paris agreement. is not limited to, OECD guidelines for multinational MCPP One Planet, is the world’s first cross-sectoral portfolio of enterprises, UN guiding Principles on Business and Human emerging-market loans aligned with the Paris Agreement, and Rights and the ILO declaration on fundamental principles will enable large institutional investors to increase the share of and rights at work. their portfolios aimed at climate-resilient development. AllianzGI TCFD Report 2021 13