Sustainability Report 2021 02.3 Sustainability in asset management 01 Introduction PIMCO has developed a range of methodologies also participates on the Executive Committee of PIMCO aims to be a ‘trusted advisor’ to its practices, personal investment transactions, to help investors assess climate risks and climate International Capital Markets Association (ICMA) clients. This means going beyond understanding gifts and entertainment, proxy voting and 02 Measuring and impacts in their portfolio. For sustainability which oversees impact bond principles/guidelines investment portfolio objectives, risks and other matters. managing sustainability portfolio solutions, the insights these tools provide and endorses the TCFD; the CDP, Climate Action constraints by working with clients to understand Both AllianzGI and PIMCO have received Sustainability in our business activities include material information to support portfolio 100+ and major global platforms including the the investment objectives of their entire plan and excellent PRI ratings for consecutive 02.1 Sustainability in insurance managers in better managing and mitigating IIGCC Net-Zero Investment initiative where PIMCO how their objectives might best be achieved. climate-related credit risks. They enable them to co-authored the Net-Zero Investment Framework 1 02.2 Sustainability in PIMCO performs a range of client services to years in a row proprietary investments assess a portfolio’s alignment with targets from Implementation Guide. promote collaboration and engagement: 02.3 Sustainability in asset management the Paris Agreement to limit global temperature ‘European Investor Sustainability in our organization rise to 1.5°C to 2°C above preindustrial levels. Client communication and engagement • Separate client service and portfolio 02.4 Human resources Our ability to bring value to our clients goes management functions focus on delivering of the Year’ 02.5 Customer satisfaction Collaborating with industry groups beyond just delivering on stated investment higher levels of service and performance – this title was awarded to AllianzGI 02.6 Environmental management AllianzGI and PIMCO take an active role in outcomes. Client service and communication to clients. Infrastructure Debt team at the IJGlobal dialogue with industry and market initiatives. is an integral component of the investment • One or more account managers are assigned Award, recognizing the attention they place on 03 Strengthening As a member of the Net-Zero Asset Managers management service that our asset to each client. They aim to meet with clients sustainability and active engagement on critical our foundation Initiative, AllianzGI is committed to supporting managers provide. at least twice yearly and are available to ESG factors. the goal of net-zero GHG emissions by 2050 As a matter of course the development of respond to client requests as well as providing Sustainable asset 04 Climate-related or sooner. In October, AllianzGI joined the the ongoing proceedings in connection with customized educational sessions for clients. financial disclosure One Planet Asset Managers Initiative which the Allianz GI US LLC Structured Alpha funds • PIMCO strives to keep clients up-to-date management solutions 05 Our universal principles supports members of the One Planet Sovereign is monitored. Findings will be reflected in the through regular reports which may include Sustainable asset management solutions include Wealth Funds (OPSWF) to integrate climate- continuous improvement of processes. a review of past portfolio strategy and the ESG and Socially Responsible Investment (SRI) related risks and opportunities within long-term performance, discussion of current strategy, products and strategies offered to third-party investment portfolios. AllianzGI also supports Communication with clients is made via all economic outlook and market forecast. asset management clients (see section 02.3). AIM in its role as a member of the Platform for forms as defined by regulatory requirements. Examples include: Sustainable Finance. In addition, clients are furnished with all forms • In addition to robust in-person client servicing PIMCO focuses on established engagement of communication that the firm believes to and substantial web resources, PIMCO offers • Pension funds that make it possible to invest platforms to drive positive change in capital be relevant to the client. The frequency and clients the opportunity to build their investment in sustainable funds following specific ESG markets. In 2021, it became a member of the the content of said communications vary, knowledge through seminars and conferences. sustainability criteria; Sustainable Markets Initiative and an Advisory depending on the nature of the product and/ PIMCO has implemented policies and procedures • Solutions where the premium is invested in Board member of the Sustainable Bond or service. that are designed to identify, manage, mitigate certified green bonds to support in return Network (NASDAQ). Co-founded by PIMCO in AllianzGI aims to provide transparency by and/or resolve actual or potential conflicts of green projects. partnership with the UNGC and energy utility always at least meeting the regulatorily required interest including conflicts relating to, among Enel, the CFO Taskforce is co-chaired by Scott standard. It has policies and procedures in place other things, portfolio management and trading Mather, PIMCO’s Chief Investment Officer U.S. to ensure the content of communication to Core and Sustainable Investments. The taskforce investors is reliable. Table ESG-14 aims to engage global CFOs on sustainable General information on Allianz Global Asset Manager Selection development, leveraging the nearly 10,000 Investors products and services is available at companies participating in the UNGC. PIMCO www.allianzgi-regulatory.eu or upon request. As of December 31 2021 2020 2019 Share of asset managers being PRI signatories or having % 99 99 99 an ESG policy in place 1 Results for 2020 reporting are published in our Sustainability Report 2020. Results for 2021 reporting were not published yet and are due in the H2, 2022. 35