01 Introduction Approach derived from TCFD principles Allianz Global Investors is an active investment Respondents to the 2022 World Economic Forum Global Alliance (AOA). In recent years, we have laid strong management firm and part of Allianz Group. Sustainable Risks Perception Survey ranked “failure of climate change foundations for our climate change strategy by supporting investing is a core part of our strategy to shape pathways mitigation and adaptation” as the number one risk with the TCFD recommendations and implementing them that secure the future – for our clients, for our business potentially the most severe impact over the next decade.2 and developing an enhanced systematic approach and for society as a whole. Climate risks are a major consideration in our assessment to investee engagement on climate noticeably with At AllianzGI, we manage EUR 673 billion (USD 765 of the value of any potential holding. Unlike traditional regard to disclosure. AllianzGI supports the climate billion) in assets for individuals, families, and institutions financial risk factors, such as market price risks, assessing approach of Allianz SE, which has been further 1 and quantifying climate change risks in investments is worldwide as at December 2021, of which EUR 303 billion more difficult and complex. As an active investor, we can strengthened to fully phase out coal-based business encompass our ESG and sustainable investment offering. models across the proprietary investments and property We began our sustainable investing journey over 20 help to find innovative ways to reallocate capital towards and casualty (P&C) insurance portfolios by 2040 due years ago and published our first Responsible Investing a climate transition that supports the Paris Agreement to climate risk. Allianz SE has also set climate targets Report in 2018. Our reporting incorporates our investment goals. We are a signatory of the NZAM initiative to act for specific asset classes in the insured portfolios and and stewardship activities as well as our business on climate issues, present and future, jointly with other committed as an investor to the Science Based Targets operations. As part of our commitment to transparency investment industry signatories. Our aim is to decarbonise initiative (SBTi) among many other efforts. and accessibility, we produced our first Task Force on investment portfolios and accelerate our contribution to Climate-Related Financial Disclosures (TCFD) report achieving net zero emissions and limiting global warming As an active asset manager, we not only embrace global last year to set out our climate-related risks and to 1.5 °C by 2050 or sooner. objectives of carbon neutrality, but also take actions to opportunities and how we integrate them into the This is alongside our parent company, who committed contribute to climate transition. Below are the key milestones business. We are pleased to issue our second TCFD to decarbonise its asset owner portfolio as a founding in AllianzGI’s commitment to climate leadership during report in response to the recommendations from TCFD. member of the UN Convened Net-Zero Asset Owner the reporting period (January – December 2021): 1. This figure includes EUR 156 billion of integrated ESG assets that are not considered sustainable according to EU Sustainable Finance Disclosure Regulation th 2. The Global Risks Report 2022 17 Edition Workd Economic Forum (Link) For more information see AllianzGI Climate Policy Statement and Exclusion Policy on our website 4 AllianzGI TCFD Report 2021