03.2 Strategy – How and where global warming as well as Company increasing extreme weather events stress the research food system and the potential economic and total emissions for this activity are social repercussions across the value chain. disclosed and integrated in the emissions reduction targets. In terms – What are the key measures and challenges of of the concrete measures to deliver the automotive sector to address its scope 3 Differentiating on climate targets, we verify the emissions (use of products). insights investment budget allocated to – By reviewing an energy production or distribution Sector energy efficiency in the operations player, how its methane performance and related research including the value chain especially emissions reduction targets aligned with the Thematic the transport of the tyres. Another latest methane emissions pathway set by the research strong action lever on emissions IEA and whether investment plans in methane within scope 3 is the life cycle leakage prevention systems are credible. management of the tyres up to the end of life with recyclability AllianzGI Sustainability Research team conducts its improvement. The risk/opportunity proprietary research from 3 angles – themes, sectors assessment looks at the strategy to and companies. These three angles are closely Research examples stakeholders. A full selection of our adapt the product features to electric linked, and an iterative process ensures that analysis Thematic research: One example is thematic research is available on vehicles. Finally the actual GHG in one area informs the others, evolving the breadth our introductory paper on climate our website. performance is compared to peers and depth of our understanding of companies’ change, published in 2021, in which for the emission intensity reduction sustainability profiles – and how to measure and we discuss the different elements Sector research: When assessing pace. This assessment flows into engage them. of the notion of net zero that the impact of carbon emissions the final sustainability rating of the The derived impactful investment insights are are complex and, in some cases, at a global level, we identified oil company and can trigger our decision articulated in views, which are shared with the misunderstood. Its purpose was to and gas as one of the most exposed to initiate an engagement. investment platform via a collaboration platform, explore in detail the various terms sectors. As a result, we analysed AllianzGI offers climate-thematic and as well as through discussions and presentations, and definitions used by stakeholders and defined criteria which can be impact-focused funds such as climate empowering the investment professionals to inte- in relation to climate strategies, how used at company level to assess transition equity, smart energy grate these in the respective investment decisions. best to assess alignment with the energy transition strategy (e.g., equity, green bonds, as well as private AllianzGI Sustainability Research findings are also Paris Agreement and how to identify whether the company has a market investments in renewable shared externally over thematic papers, either areas on which to develop analysis decarbonisation policy). energy and blended finance solutions about specific climate issues within our sustainability and engagement. In 2021, we started Company research: For a company that tackle climate issues in emerging thematic pillar dedicated to Climate or about topics to produce research papers on in the tyre industry, our analysis markets. As these examples show, with strong interplay across one or more of the other specific issues to stimulate discussion, of climate related factors scrutinizes we integrate climate risk and AllianzGI thematic pillars: Planetary Boundaries and form our view and articulate it to our whether scope 3 emissions, opportunities into public and private Inclusive Capitalism. portfolio entities, clients and other representing more than 95% of markets offerings. AllianzGI TCFD Report 2021 11