03.2 Strategy 2. Impact of climate-related risks and opportunities Infrastructure equity – a 28% GHG reduction, scopes 1 on the organisation’s businesses, strategy, and and 2, by the end of 2025 (baseline year: 2020). financial planning Infrastructure debt – our target is to grow the share of A net-zero asset manager low-emitting and EU taxonomy-eligible assets. AllianzGI commits to supporting the goal of net-zero GHG emissions by 2050, in line with global efforts to limit As part of our commitment to a sustainable future, we warming to 1.5°C (“net zero emissions by 2050 or sooner”). manage the environmental impacts of our operations This is in line with the Paris Agreement which sets out a and aim to be a role model in delivering our own targets global framework to avoid dangerous climate change by on climate change and the environment. Our efforts limiting global warming to well below 2°C and pursuing contribute to Allianz Group goals, including working efforts to limit it to 1.5°C. It also aims to strengthen countries’ towards sourcing 100% renewable electricity for our ₂ ability to deal with the impacts of climate change and operations by 2023 and reducing CO emissions by 38% support them in their efforts. per employee by 2025 against a 2019 baseline. For more After joining the Net Zero Asset Managers The NZAM initiative is a step change. It requires those information, see section 5 Metrics and targets. initiative in 2021, we embarked on our net-zero actions, such as engagement, to be in line with the A targeted exclusion policy journey. One of our priorities was to partner with net-zero goal and anticipates increasing the scope of We acknowledge that thermal coal is the biggest Allianz, our largest client, to support its net-zero assets being managed in line with the net-zero goal until contributor to climate change. AllianzGI has a firm-wide ambitions across both public and private markets 1 100% is reached. AllianzGI was proud to join and become exclusion policy that includes a dedicated thermal coal investments. This is just a first step. I’m excited a committed member of the NZAM initiative in 2021. policy. For more information, see section 4.2. about the next steps, which will involve bringing After becoming a NZAM signatory in 2021, we submitted Steps taken to address the impact of climate-related third-party client assets into scope. We will continue first interim targets at the beginning of 2022. As the first risks and opportunities to engage actively with our institutional clients and step, these targets cover listed equity, corporate debt, A key pillar in our philosophy surrounding climate distributors on integrating net-zero objectives in infrastructure equity, and infrastructure debt and reflect investments today is that the public corporate disclosures their investments and into our mutual funds. the targets set in 2021 by Allianz Group for its proprietary on climate are not yet highly developed nor in-depth Deborah Zurkow assets based on its commitment as a member of the enough to be sufficient for simple rules-based strategies. UN-convened Net-Zero Asset Owner Alliance. For this reason, we believe that there exists market Global Head of Investments The assets in-scope for these targets represent 12% inefficiencies on climate risks and opportunities, for which of AllianzGI’s overall assets under management. The active research and corporate engagement are necessary. submitted targets include: Our dedicated and experienced Sustainability Research Listed equity and corporate bonds – a 25% GHG team analyzes the material implications of climate change reduction, scopes 1 and 2, by the end of 2024 (baseline to the economy, sectors' drivers and business models of year: 2019). individual companies. We research the following: 1.This Policy is applicable to mutual funds for which Allianz Global Investors is acting as management company. For institutional funds and mandates, application of the Policy including its implementation date is subject to the consent of the respective clients. For more information on the Net-Zero Asset Owner Alliance commitment of Allianz Group, please see the Allianz Group Sustainability Report 10 AllianzGI TCFD Report 2021