ESG Integration Framework 03.11 ESG business opportunities Sustainable solutions definitions In addition to its ESG risk management approach, Allianz also sees Environmental criteria2 certain ESG-related trends as business opportunities. Allianz also capitalizes on specific growth opportunities linked to such ESG 1 Support the development of a technology/market developments. Examples include the transition to a low-carbon focusing on the environment and/or climate change (e.g. economy and the need for greater environmental protection and renewable energy, environmental goods and services, green social inclusion. infrastructure). Reduce the client’s exposure to financial (risk Year-on-year information on Allianz’s ESG business opportunities is reduction) and/or regulatory risks (e.g. CO2 regulations, published in the Group Sustainability Report. environmental pollution liability). 2 Conservation or mitigation of at least one of the following: natural resources, biodiversity, environment or climate change 03.11.1 Sustainable solutions (e.g. encouraging or rewarding environmentally responsible Across Allianz Group, local OEs and global lines offer a variety of behavior that improves energy efficiency or avoids pollution). 3 Protection from environmental risks and adaptation to climate 1 products and services with environmental or social benefits, or that change impacts through managing clients’ risks (e.g. weather address a societal issue. risks) and/or fostering risk awareness and/or providing Products fall into four product groups: incentives for reducing risk exposure. • Sustainable insurance solutions: Sustainable insurance Social criteria solutions are products and services that directly address environmental and/ or social risks and opportunities. 4 Enable and/or support those that tackle social challenges and 3 • Insurance solutions with a sustainability component: Standard issues faced by socially disadvantaged groups . These include insurance products with additional environmental and/or products that ‘help the helper’ (for e.g. travel insurance for social benefits (such as add-ons to home or car insurance charity workers, insurance solutions tailored for social value- products). adding products/services that would otherwise not be insured). • Emerging consumer solutions: Emerging consumer solutions 5 Fosters socially responsible behavior by offering specifically include affordable microinsurance and other insurance tailored solutions for socially disadvantaged groups (for e.g. products that cater to customers entering financial services reducing the risk of underserved groups by providing otherwise markets for the first time. unavailable access to financial services). A discount on such • Sustainable asset management solutions: Sustainable policies would partly apply. asset management solutions include the ESG and Socially 6 Raises awareness through various activities (e.g. cause-related Responsible Investment (SRI) products and strategies offered marketing or support schemes) to prevent and mitigate social to third-party asset management clients. challenges in relation to socially disadvantaged groups. In order to be classified as a sustainable solution, a product or For products categorized as sustainable under the definition, Allianz service must fulfil at least two of the six criteria in the sustainable tracks and publishes key metrics such as revenue. For further details solutions definition. 2 Initial environmental criteria were developed in conjunction with WWF and KPMG in 2011. 3 Socially disadvantaged groups are defined as populations that are excluded in their local society for reasons that may be tied to age, sex, disability, race, ethnicity, 37 1 Sustainable solutions can be insurance, assistance service solutions. origin, religion or economic or other status.