ESG Integration Framework 03.7.3 Voting Convention on the Prohibition of the Use, Stockpiling, For equity investments managed by AllianzGI on behalf of Production and Transfer of Anti-Personnel Mines and on their Allianz Group insurance entities, AllianzGI exercises the voting Destruction (Ottawa Treaty) rights. AllianzGI conducts voting activities in line with their Global • Cluster munitions as defined in Article 2 of the Convention on Corporate Governance Guidelines, which include consideration of Cluster Munitions ESG concerns. AllianzGI makes records of voting decisions available • Biological and toxin weapons as defined in Article I of the publicly. Convention on the Prohibition of the Development, Production and Stockpiling of Bacteriological (Biological) and Toxin For further details please see the active stewardship section of the Weapons and on their Destruction (Biological Weapons AllianzGI ESG page at allianzgi.com/en/our-firm/esg/our-approach. Convention) Other asset managers managing equity investments on behalf of • Chemical weapons as defined in Article II of the Convention Allianz are encouraged to exercise voting rights. on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on their Destruction (Chemical Weapons Convention) 03.8 Risk dialogues 1 All investment transactions in issuers related to the development, Within the industrial insurance business unit, the client risk dialogue production, maintenance and trading of banned weapons under the is an established approach to address specific risks and provide above-listed international agreements are prohibited. expertise in managing those. This approach benefits both the Allianz reassesses the exclusion list at quarterly intervals, using client and Allianz. For insurance-related ESG risks, Allianz also inputs provided by an external ESG data provider to determine if may engage and perform a risk dialogue with insurance clients, businesses are potentially involved in controversial weapons. Should in case significant risks are identified. The goal of these dialogues specific risks arise outside the regular revision cycle of the exclusion is to address and better understand the risks identified, as well as list, the list may also be updated on an ad-hoc basis. mitigation measures in place. Since the establishment of the AGCS 03.9.1.2 Insurance exclusions ESG Business Services function (see also section 05.1) in 2014, many of these dialogues have taken place across various industries and For insurance restrictions regarding controversial weapons, please regions. see section 03.4.6. 03.9 Exclusion policies 2 03.9.2 Coal exclusions 03.9.2.1 Rationale 03.9.1 Controversial weapons exclusions While the global demand for reliable and affordable energy is 03.9.1.1 Investment exclusions expected to rise, there is widespread scientific consensus that Allianz enforces a Group-wide exclusion policy relating to banned energy generation needs to be decoupled from greenhouse weapons and investments of proprietary assets. 1 Allianz takes these exclusions very seriously. The ability to apply this exclusion pol- icy nevertheless varies for some types of investments, such as when for example, Banned or controversial weapons are those that fall under the scope restricted companies are listed on major stock exchange indices, or when they are of the following international conventions: part of an investment fund managed by other organizations, it is not feasible for the exclusion policy to be applied. • Anti-personnel landmines as defined in Article 2 of the 2 This section of the Allianz ESG Integration Framework integrates the Allianz State- 32 ment on Coal-based Business Models (April 2020)