ESG Integration Framework publications of each company. The results of this in depth research, 03.7.1.6 Engagement reporting along with any supporting documents, are summarized and Allianz reports on its engagement approach, activities and outcomes documented for future reference. in the PRI Transparency Report and in the Group Sustainability The engagement team then contacts the investor relations, Report. sustainability, and/or other relevant corporate function by For further details, please see the Group Sustainability Report at e-mail with initial questions linked to the identified ESG risks and www.allianz.com/sustainability. engagement objectives for the given company. Based on the company’s response to these questions, Allianz conducts additional 03.7.2 Other engagement activities research and continues engagement activities through conference In addition to the ESG Scoring Engagement, Allianz has established calls and meetings as needed to clarify all open points and address processes for additional engagement triggers: any potential risks. 03.7.1.5 Engagement evaluation, monitoring and • Coal-based exclusion engagement: As part of the exclusion of exclusions coal-based business models, Allianz may engage companies to clarify their coal-related strategies and to encourage these Considering the information obtained through the dialogue, the companies to climate-proof their business activities. These engagement team discusses potential next steps regarding the engagements follow a simplified engagement procedure. invested company. • Collaborative engagement: Allianz works with other asset If the company’s answers have shown significant action or owners, asset managers and the Principles for Responsible willingness to improving their ESG risk management and/or solving Investment (PRI) initiative to identify and evaluate and avoiding further ESG issues and controversies in future, the opportunities for collaborative engagement. Participation company engagement will be closed. Allianz will then either in such engagement activities is based on a case-by-case assessment. 1 continue to monitor the company’s future performance, or • Engagement by internal asset managers: PIMCO and AllianzGI 2 remove the company from the future engagement list. both conduct engagements on behalf of Allianz as well as This is depending on the level of success of the engagement’s their third-party clients. The asset managers report on their outcome. engagement activities on their websites. Should answers be insufficient, the company shows no willingness to improve its ESG performance, or if the company has not responded to any of Allianz’s engagement communications over a given timeframe, the Chair of the ESG Board approves the restriction of that company from all proprietary portfolios based on the recommendation from AIM SE and Global Sustainability. Exclusions of companies based on the engagement approach are also described in section 03.9.3. These decisions are taken once per year. Companies are reviewed and reassessed annually. 31