Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Governance
• Social

Climate Goals & Targets

Environmental Challenges

• ESG factors materializing mostly on portfolio downside risk.
• Passive, rules-based ESG index strategies can be challenged.
• External ESG ratings cannot be solely relied upon.
• The performance of ESG investment indices is often driven by unintended factor changes.

Mitigation Strategies

• Active Integrated ESG investment
• Active stewardship through corporate engagement and proxy voting
• Proprietary, intrinsic ESG risk/reward analysis

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Physical climate risks

Transition Risks

• Regulatory changes

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Rights
• Corporate Citizenship
• Data Privacy
• Demographic Change
• Employee Wellbeing
• Environmental Issues
• Innovation
• Market Volatility
• Regulatory Compliance

Environmental Achievements

• Reduced total GHG emissions per employee by 46% compared to 2019 (due in part to reduced business travel and office use from the COVID-19 pandemic).
• 92% of energy in Europe sourced from renewable sources.

Social Achievements

• Achieved gender parity in the Executive Committee.
• 71% of employees responded favorably on the Inclusive Meritocracy Index.
• 82% of employees said they are comfortable talking about their background, identity and their true self at work.

Governance Achievements

• A+ score from the PRI Association for Strategy and Governance for four consecutive years.
• Conversion of 74 investment strategies to meet sustainability criteria, affecting EUR 70 billion of assets under management in 2021.
• Launched a dedicated climate engagement approach for a number of funds.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic causing market volatility and resource constraints, impacting engagement activities.
• Need to improve employee perceptions around career development opportunities following corporate restructurings.

Mitigation Strategies

• Maintained close dialogue with clients, providing transparency on market impacts and opportunities.
• Implemented actions to drive improvements in career development and employee engagement (e.g., Opportunity Platform, #lead program, Livingroom sessions).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable procurement processes focusing on ESG requirements, recycled paper, renewable energy, and reduced packaging.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Policy and reputational risks (short-term)
• Market and technology risks (medium-term)
• Chronic physical risks (long-term)

Opportunities

• Initiatives enabling and benefiting from the climate transition (short-term)
• Competitive positioning and climate innovation (medium- and long-term)

Reporting Standards

Frameworks Used: PRI, TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 8 (Decent Work and Economic Growth)
• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 10 (Reduced Inequalities)
• SDG 13 (Climate Action)
• SDG 14 (Life Below Water)
• SDG 15 (Life on Land)

Contribution through investment activities, business operations, corporate citizenship, and targeted investment strategies.

Sustainable Products & Innovation

• Green bonds
• Climate transition equity
• Illiquid renewable energy equity
• SDG-aligned investments
• Impact investments (including development finance)

Awards & Recognition

• Greenwich Quality Leader in institutional investment management in Germany and Europe.
• Leading ESG Investment Manager for Institutional Clients in Continental Europe in 2020.

Environmental Metrics

ESG Focus Areas

• Climate change
• Planetary boundaries
• Inclusive capitalism

Environmental Achievements

• 77% reduction in GHG emissions per employee (2020: 46%), mainly due to increased renewable power use, improved energy management, and reduced business travel
• 22% reduction in energy consumption per employee (2020: 9%)
• 100% of electricity used came from renewable, low-carbon sources
• 66% reduction in paper use per employee (2020: 29%)

Social Achievements

• +6% improved Inclusive Meritocracy Index (IMIX) score in 2021 employee survey
• 50:50 male to female representation in the Executive Committee
• Introduction of Rungway, an online platform offering support to colleagues
• Revamped anti-harassment and anti-discrimination policy and training

Governance Achievements

• Joined Net Zero Asset Managers initiative and One Planet Asset Managers initiative
• Adopted firmwide controversial weapons and thermal coal exclusion policy for all mutual funds
• Improved ESG ratings model and produced proprietary research
• Supported all 31 climate-related resolutions raised by management of 30 companies

Climate Goals & Targets

Environmental Challenges

• Evolving regulatory landscape and client demand in sustainable investing
• Complexity of sustainable investing solutions
• Addressing climate change risks and opportunities across various asset classes

Mitigation Strategies

• Focus on being a resourceful partner providing education and thought leadership
• Offering a range of investment options and guidance
• Developing new sustainable investment funds and innovative analytical tools
• Enhanced climate engagement with high-emitting companies
• Transitioning engagement strategy towards thematic analysis aligned with three strategic sustainability themes

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Green bonds, climate transition equity and illiquid renewable energy equity

Reporting Standards

Frameworks Used: TCFD, UN PRI, EU SFDR

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change
• Planetary boundaries
• Inclusive capitalism

Environmental Achievements

• 59% reduction in GHG emissions per employee in 2022 against the 2019 baseline
• 60% reduction of travel emissions per employee against our baseline emissions in 2019
• 100% of the electricity used by AllianzGI in its offices and local data centres comes from renewable, low-carbon sources
• 45% reduction in waste generated per employee against the 2019 baseline

Social Achievements

• Over 700 corporate volunteering hours recorded in 2022
• 83% favourable score for the employee survey question: “Our company offers flexible work opportunities”
• 32% female managers in 2022
• More than EUR 2.7m invested in employee development

Governance Achievements

• 100% of employees participated in Global Compliance Training covering Anti-Money Laundering, Anti-Fraud and Economic Sanctions
• Established the role of Corporate Sustainability Officer (CSO)

Climate Goals & Targets

Environmental Challenges

• Higher inflation, rising interest rates, supply chain issues and challenging equity and bond markets
• Impacts of climate change (floods, heatwaves, drought)
• War in Ukraine impacting energy security, transition and affordability
• Market volatility

Mitigation Strategies

• Increased focus on climate crisis and biodiversity
• Ongoing thematic research papers to guide clients
• Addressing the diversity of client needs and driving sustainable growth through investing
• Further implementation of conviction-led approach, guiding clients on risks and opportunities of key sustainability themes
• Increasing the scalability of solutions to seek greater real-world impact
• Strengthening firm-wide knowledge and capabilities for sustainable investing through mandatory training

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Heatwaves
• Drought

Transition Risks

• Regulatory changes
• Market shifts
• Energy security challenges

Opportunities

• Renewable energy investments

Reporting Standards

Frameworks Used: UK Stewardship Code

UN Sustainable Development Goals

• SDG 8 – decent work and economic growth
• SDG 13 – climate action
• SDG 17 – partnerships for the goals