ESG Integration Framework 05.3 Allianz Real Estate As a responsible investor and manager of one of the world’s largest Allianz Real Estate, our dedicated real estate investment and asset real estate portfolios, Allianz Real Estate strives to incorporate manager, develops and executes tailored portfolios and investment ESG factors into its investment cycle for its real estate business. It strategies for Allianz insurance companies and pension funds is working towards reducing the GHG emissions of its real estate around the world, as well as for third-party clients with capabilities portfolio to net zero by 2050, in line with the Group’s commitment, that include direct and indirect investments and commercial real and increasing the share of properties that have an environmental estate loans. or sustainability certification. Allianz Real Estate’s ESG integration framework is designed to For additional details about the Allianz Real Estate ESG approach, improve the ESG performance and transparency of real estate please see www.allianz-realestate.com/en/Sustainability. assets and address issues such as physical climate risks, reducing the risks of obsolescence and depreciation. Alongside this, it looks at the 05.4 Allianz Global Investors social impact of the buildings on the community that uses them. The Allianz Global Investors (AllianzGI) is one of the investment framework is based on three key areas of activity: assess, engage management industry’s responsible investment pioneers, tracing and improve. its ESG credentials back over twenty years . It is the conviction of 1 Assess: Assets are screened for potential ESG issues, AllianzGI that ESG factors are important investment performance particularly during the acquisition phase. Every new equity drivers which can only be realized fully through a truly active investment undergoes a thorough due diligence process approach to asset management. Recognizing the value that ESG including technical and environmental due diligence and factors can add to portfolios and to its clients, AllianzGI aims at property-related ESG assessment. Any new office, retail or integrating ESG factors into all investment decisions, across all asset logistics investment (equity) must have an environmental or classes. sustainability certification that is either globally recognized AllianzGI’s dedicated Sustainability team works hand in hand with (such as LEED or BREEAM) or locally dominant (for example analysts and portfolio managers, providing ESG knowledge and HQE in France and DGNB in Germany). For new fund insights that support better investment decisions as they consider investments, fund managers are required to have an ESG ESG risks and opportunities that may not have been fully priced by policy or to be PRI signatory. the markets. The team offers specialist expertise across the entire 2 Engage: During the management phase, a collaborative spectrum of ESG-related requirements, including: ESG research engagement strategy seeks to influence business partners to (both company-specific and thematic), Proprietary ESG rating model strengthen ESG activities. This includes ensuring ESG topics are covering over 10,000 issuers, Research to support proxy voting as considered as part of performance review meetings with joint well as company and policy-level engagement. venture partners, supporting external property managers to improve ESG standards and performance, and engaging with AllianzGI’s research platform facilitates and systematically records tenants to influence their choice in fuel. its international network of investors debating and assessing ESG 3 Improve: We aim to measure and improve the ESG risks and opportunities on a global universe of corporate issuers, performance of our entire real estate portfolio. This includes sectors and themes. The platform allows AllianzGI to “crowdsource” seeking out pilot ‘lighthouse’ projects and group-wide insights from the entire firm, giving them a truly holistic view on each initiatives, such as procuring certified green energy and and every issuer. investing in onsite energy production and energy efficiency AllianzGI is committed to active stewardship of the assets it manages measures like installing LED lighting. for its clients, and strives to steer investee companies towards 45