ESG Integration Framework 03.4.8 Allianz ESG Guideline on Hydro-Electric Power Governance risks Allianz is a supporter of sustainable methods of energy generation. • Absence of anti-bribery and anti-corruption plans/systems/ Every HEP installation is different and with the right planning, many procedures of the social and environmental risks can be mitigated. As an insurer • Risks to local communities Allianz is committed to working with clients to reduce risk in all • Absence of a benefit sharing agreement or compensation aspects of their project. • Free, prior and informed consent (FPIC) of impacted parties not External Standards and Sources obtained • Health impacts have not been assessed and/or taken into The Allianz screening approach criteria are informed by consideration • the World Commission on Dams report, Risks to protected areas • the International Hydropower Association Sustainability • Project located 30km or less from a site of environmental, Protocol and social and/or cultural significance (UNESCO World Heritage • international human rights standards (for additional details Sites, RAMSAR sites, IUCN Category I-VI Protected Areas, see the ESG guidelines on human rights). Natura 2000, Key Biodiversity Areas) Screening and assessment criteria Reputational risks • Negative reputational impacts on Allianz stakeholders Following an assessment of company, sector and country-specific (investors, customers, business partners, regulators, staff, ...) ESG risk databases, hydropower-related transactions are screened Resettlement risks on the following criteria: • Incidents of physical harm in relation to resettlement Biodiversity risks • Relocation of people and land/water/property rights (incl. • Absence of mitigation measures to reduce impacts on native peoples) endangered species • Resettled persons not duly consulted • Impact on endangered species listed in the IUCN Red List Workforce risks Environmental risks • Disregard for labor rights including collective bargaining and • Absence of plans for decommissioning / end-of-life unionization rights • Environmental and regulatory licensing and permitting • Involvement in child labor processes not started or incomplete • Involvement in forced labor or human trafficking • Environmental impact assessment not conducted or not • Sub-standard working conditions (e.g. health and safety conducted in line with national or international standards and standards, wages, etc.) the necessary public consultation (including all supporting infrastructure, i.e. power lines, access roads) • Upstream/downstream impacts (incl. fisheries, pollution, flood risk changes, socio-economic impacts) 18