Sustainability Report 2021 02.2 Sustainability in proprietary investments 01 Introduction Our engagement community is evolving as Questions, requests and expectations related In 2021, we opened or continued direct engagement 5. Active ownership the need to magnify real-world impact on to identified sustainability risks or opportunities discussions with 61 investee companies, based on Voting rights are exercised by AllianzGI on the 02 Measuring and systemic issues such as climate change places are submitted to the company for a written reply. low ESG scoring. 21 of these engagements were Allianz Group’s behalf. Details on the AllianzGI’s managing sustainability new emphasis on investor-led collaborations. Based on the company’s response and backed-up considered successful and were closed, two were voting policy and voting records can be We have increased our collaborative engagement by official company documents, the engagement closed without success and the remaining 1 Sustainability in our business activities to amplify the positive impact of our efforts. team may conduct further engagement activities 38 are ongoing or continue to be monitored. found online. 02.1 Sustainability in insurance Progress in this area is also described below such as clarifying open points, requesting A comparison versus the previous year can be You can find Proxy Voting Records on the 02.2 Sustainability in under ‘Collaborative and climate engagements’. additional disclosures and conducting in-person found in Table ESG-9. AllianzGI ESG web page. proprietary investments 02.3 Sustainability in asset management Bilateral engagements (virtual) meetings with management. We request You can read more about this in our Asset Further information on AllianzGI’s proxy Sustainability in our organization that any commitments the company makes management section 02.3. voting activities can be found in section 02.3. 02.4 Human resources We would not contribute to driving positive change to address the sustainability issues raised are 02.5 Customer satisfaction if we automatically withdrew our investments when integrated into their annual reporting or other Collaborative and climate engagements 6. Excluding certain sectors, companies 02.6 Environmental management issues arose rather than engaging in a dialogue to published materials approved by management. and sovereigns address them. That is why proactive engagement is This level of transparency is an important Collaborative engagements can take the form of Our exclusion approach covers multiple aspects 03 Strengthening integral to our sustainability strategy. step to formalize commitments and hold the multiple investors addressing a single company with exclusion lists updated annually based our foundation company accountable. or addressing multiple companies and their on data from external service providers and The AIM Sustainability engagement team Each engagement is monitored to track value chain in a single sector at the same time. inhouse research. 04 Climate-related leads in-depth research using information from responsiveness of the company and progress Collaboration consolidates the efforts for the financial disclosure MSCI ESG Research, other sustainability data parties involved, allowing for more efficient and 1. Exclusion and restriction of certain sectors, and intelligence providers and the respective against identified sustainability issues. If the solution-oriented discussions at a greater level of such as companies producing or associated company shows significant action to improve 2 05 Our universal principles corporate disclosures or publications of each detail. In 2021, we continued to take an active role with controversial weapons and companies company. Wherever possible, we involve Allianz their sustainability risk management and/ in the Climate Action 100+ initiative by co-leading involved in coal and oil sand-based businesses. colleagues that are based in the same country or to solve and prevent further sustainability engagements (see section 02.2.3). 2. Restriction of investments in sovereign or region as the company we are addressing to issues, the engagement is closed as successful. bonds from countries associated with severe solidify our global and collaborative approach. Should a company’s answers continue to prove human rights violations and significant issues insufficient, show no willingness to improve managing sustainability concerns. sustainability performance, or fail to respond to our engagement communications, our team 3. Exclusion and restriction of issuers as a result of recommends the restriction of all investments the scoring and engagement process. in the company. This recommendation is received and reviewed by the Chairperson of the Group Sustainability Board who subsequently approves the restriction of the company from all proprietary portfolios. 1 Please note that this reporting covers Allianz’s proprietary insurance assets as well as assets from third-party clients on whose behalf AllianzGI exercises voting rights. 2 Weapons that fall under the scope of the following international conventions: Ottawa Convention (anti-personnel landmines); Convention on Cluster Munitions (cluster ammunition/bombs); Biological and Toxin Weapons Convention (biological weapons); and Chemical Weapons Convention (chemical weapons). 27