ESG Integration Framework 03.3 ESG referral process in insurance and necessary. This avoids blanket exclusions and allows Allianz to investment mitigate potential ESG risks associated with each specific transaction. When an ESG risk related to a (potential) transaction is detected, 03.3.1 Background and principles for example by an underwriter, investment manager, in one of the 1 sensitive business areas during screening , a mandatory referral is The global Allianz ESG Referral Process and the ESG Sensitive triggered. The transaction then undergoes an OE, global line and/or Business Guidelines for both insurance and investment transactions Group-level ESG assessment (also see flowchart in Figure 1). in non-listed asset classes were developed in 2013, through dialogue The process differentiates between single and multiple site risks. with NGOs as well as an ongoing internal stakeholder engagement Single sites can undergo a more detailed ESG assessment while for process through the ESG Working Group. Proposed changes or multiple sites (for example a global liability cover for a multinational) additions to the Referral Process as well as the accompanying a more policy-based assessment is conducted. ESG Sensitive Business Guidelines (see section 03.4) are regularly reviewed by the ESG Working Group and approved at Board-level. The Referral Process consists of multiple levels of screening and assessments: 03.3.2 Referral process • ESG screenings are performed by local operating entities The ESG Referral Process identifies potentially critical transactions (OEs) and or global lines (GLs) to identify potentially sensitive in 13 sensitive business areas considered material by Allianz. All transactions (for example by underwriters or investment potentially sensitive business is screened on a transaction-by- 1 Screening is the first phase of the referral process. It leads to the identification of transaction basis and referred for a detailed ESG assessment, if potentially ESG-critical transaction at the underwriting or investment management level. Figure 1. ESG Referral Process flowchart Planned insurance Screening at entity or investment level using the Potential ESG No Proceed with transaction sensitive busisness risk identified transaction guidelines Yes Proceed with transaction ESG assessment by Proceed with responsible mitigation measures ESG function Decline transaction 8 on ESG grounds