AllianzGI Footprint and handprint MN MR Sep EN 26

Footprint and handprint: measuring both sides of a company’s impact Looking at a company’s footprint alone may not tell Exhibit 1: Differentiating footprint from handprint the whole story. Assessing both positive and negative Impact on planet, people and society impacts can help investors better identify risks, opportunities and sources of long-term value creation. Feature Footprint Handprint

negative impact/ positive impact/ Focus A company’s impact is not only about the harm it creates burden benefit or reduces. It is also about the positive change its products use/consume/ build/create/ Action and services can enable. That is the distinction between degrade recover footprint and handprint: footprint looks at negative unintentional/ intentional/ impacts across a company’s operations and value chain, Motive passive active while handprint captures the positive contribution of its problem/ solution/ business model (see Exhibit 1). Thinking downside upside

internal external (enable Perspective (own impact) others/solutions)

risk/ opportunity/ Business aspect compliance innovation

minimise maximise Goal harm good Marie Navarre Marie Rupp Head of Sustainability Senior Sustainability Source: Allianz Global Investors – Sustainability Research, 2026 Research Analyst

FOOTPRINT AND HANDPRINT:MEASURING BOTH SIDES OF A COMPANY’S IMPACT

Historically, sustainability assessments focused on a company’s negative environmental impacts, like emissions, pollution and resource depletion – ie, its “footprint”. The To enable informed investment decision-making in handprint concept arose to provide balance by recognising both public and private markets, it is important to when its activities – including products and services – assess both the positive and negative financially proactively benefit climate, nature and people. Handprint is material impacts of an investment opportunity. often associated with solutions that support environmental Identifying a company’s footprint and handprint and social goals, including the UN Sustainable helps us understand both the material risks we need Development Goals (SDGs) as shown in Exhibit 3. to anticipate and mitigate, as well as the potential opportunities that the company may be able to Footprint and handprint are two sides of the same coin – capture due to the sustainability-oriented solutions determining the overall impact of a business on the world. offered by its business model. Both are central to impact materiality assessments which underpin a growing number of regulatory frameworks.1 Both can be important drivers of resilience and long-term value creation. They also help investors understand how their portfolios contribute to Why this matters for investors environmental and social goals by distinguishing Investors should be considering impacts on investee between companies that reduce harm through their companies, particularly the effect of financial impact operations and those whose products and services on returns. This is where handprint and footprint create positive outcomes. come in – enabling assessment of financially material risks and opportunities. Footprint issues typically Diane Mak translate into risks, eg, regulatory, operational or Head of Sustainability & Impact – Private Markets reputational, while handprint is associated with growth and value creation , as shown below.

Exhibit 2: Double materiality = financial + impact materiality

Impact from the business Company

Source: Allianz Global Investors – Sustainability Research, 2026