Sustainability Report 2021 02.3 Sustainability in asset management 01 Introduction Integration of sustainability AuM). PIMCO is a premium fixed income player To support this journey, there have been a number contribute to positive environmental and/or in asset management is managing € 1.5 trillion in 3rd party assets of of significant changes to the company: societal change. They include SDG-aligned 02 Measuring and which 203.1 billion are ESG themed investments • A newly created centralized Sustainable listed strategies as well as Private Markets managing sustainability an important industry or 13.4 % (in 2020: € 136.5 bn or 10.2 percent of Investment Office responsible for shaping Impact and Development Finance strategies. Sustainability in our business activities driver. As active investors total AuM). sustainable product strategy and Read AllianzGI’s report for more details on 02.1 Sustainability in insurance Embedding active investment sustainable policies. its approach. 02.2 Sustainability in with leading research management • A Sustainability Methodologies and Analytics proprietary investments capabilities, our investment team was set up to oversee AllianzGI’s ESG PIMCO’s strategic approach 02.3 Sustainability in asset management Our asset managers take an active stewardship integration efforts, further develop ESG data PIMCO has a long history of managing socially Sustainability in our organization management businesses role to maximize the sustainability value of client’s sets and leverage state-of-the-art-technology. responsible portfolios for clients and has invested 02.4 Human resources capital. Material ESG factors are important in talent, technology, infrastructure and solutions 02.5 Customer satisfaction innovate sustainable considerations while evaluating long-term • Sustainability Research and Stewardship teams to position itself as a leader in ESG Fixed Income. 02.6 Environmental management investment solutions. investment opportunities and risks for all asset have been refocused on developing thematic Over the last year, PIMCO added resources to its classes in public and private markets. research and engagement. broader ESG team and expertise including: 03 Strengthening Allianz Group’s asset management segment offers • Announcement of an Impact Measurement our foundation an increasing number of ESG and responsible AllianzGI’s strategic approach and Management team to develop an impact • A Global Head of Sustainability who will investment solutions. Our two major investment AllianzGI continues to grow its sustainability framework for due diligence, measurement oversee PIMCO’s ESG and Sustainability 04 Climate-related businesses – Allianz Global Investors (AllianzGI) offering demonstrating its commitment as an and management of private market initiatives, providing strategic direction, financial disclosure and PIMCO – cater to a wide range of investors active investor to shaping the world of tomorrow. Impact investments. governance and firm wide coordination of with bespoke ESG integration needs, from retail Since joining the company at the beginning of ESG efforts. 05 Our universal principles fund investors to institutional clients. 2021, the Global Head of Sustainable and Impact All of the assets managed by AllianzGI are • Eight dedicated ESG analysts to help identify As a diversified multi asset player AllianzGI is Investing, has set out to accelerate the growth of ESG risk assessed whereby sustainability risks opportunities and risks associated with ESG a global leader in active asset management Impact investing as part of a fast-growing private are identified and monitored throughout the related topics. managing € 456 billion in third party assets of markets offering and continued integration of ESG management of the portfolios. The firm’s in AllianzGI’s public and private market offerings. specific ESG approaches, which include its two • Collaboration with external experts such which € 184.3 billion are ESG themed investments sustainability strategies (sustainability-focused as Mark Carney, who became a member of or 40% (in 2020: € 95.4 bn or 25.5 percent of total and impact-focused), are defined in the following PIMCO’s Global Advisory Board in 2020. way and have been developed based on clients’ PIMCO evaluates ESG risk factors from a top Table ESG-13 preferred outcomes whether it be risk mitigation down (i.e. macro) and a bottom-up (i.e. issuer ESG-themed investments for third-party assets through to measurable impact: and security specific) perspective. Its first step is As of December 31 2021 2020 2019 1. ESG risk-focused strategies – integrate to identify the major long-term themes that will material ESG risk considerations into affect the global economy and financial markets. Allianz Global Investors € bn 184.3 95.4 56.1 investment analysis and decisions without The firm’s annual Secular Forums are devoted to 1 identifying and analyzing these trends. This year’s ESG Risk focused € bn 43.1 51.0 31.0 constraining the investment universe. 2 forum identified the transition to green energy Impact focused € bn 4.8 2.2 1.8 2. Sustainability-focused strategies – consider 3 as one of the three major trends over the secular Sustainability focused € bn 136.4 42.1 23.3 sustainability objectives and values as part horizon. PIMCO blends its macro analysis with PIMCO € bn 203.1 136.5 101.6 of their portfolio construction, in addition to bottom-up work carried out by the firm’s global financial returns. research teams and portfolio managers who AllianzGI changed the titles of its sustainability categories to reflect the developing nature of its investment approaches. 3. Impact-focused strategies – consider evaluate ESG-related issues as part of their 1 ESG Risk focused – previously labeled Integrated ESG. measurable sustainable outcomes and analysis processes. 2 Impact focused – previously labeled Impact. 3 Sustainability focused – previously labeled SRI and now includes newly developed sustainable strategies such as CEWO. 33 It should be noted that only the latter two categories are considered Sustainable under the SFDR.