ESG Integration Framework 03.9.2.5 Criteria for our Property & Casualty insurance 03.9.2.6 Allianz Coal Phase-Out Plan 1 Allianz does not offer single-site/stand-alone insurance coverages The criteria and thresholds laid out above will be tightened over related to the construction and/or operation of thermal coal-fired time. As we are committed to fully phasing out coal-based business power plants and mines where coal is extracted, effective as of May models across our proprietary investment and our P&C insurance 2018. portfolios, we will reduce the thresholds from the current 30% to Exceptions to the above are only applicable for coal-fired power eventually 0% in 2040 at the latest. In a next step, we will reduce the plants based on a case-by-case assessment. Criteria for this thresholds to 25%, applicable as of December 31, 2022. We target a assessment include thermal efficiency, consideration of renewable further reduction to 15% by year-end 2025, subject to amendments and/or other low-carbon alternatives to a power plant and of criteria and alignment with developments in climate science and reasonable rejection of these alternatives, blackouts or load climate policy. shedding in the region due to a lack of generation capacities and the The reduction pathway for the Allianz Coal Phase-Out is based development status of the country (in line with the UN classification). on IPCC’s 1.5°C scenarios with most recent and frequent data and Based on the criteria outlined above and our practice so far, we only no or low overshoot of emissions. Our thresholds applicable to a 2 grant a very limited number of exceptions for compelling cases. company’s coal share align with the mean share of coal in the 1.5°C As of December 31 2022, Allianz will exclude companies from its scenarios’ global electricity composition. P&C insurance portfolios which fail to present a credible transition strategy away from coal and breach the following thresholds: Energy generation from coal: • deriving 25% or more of their generated electricity from thermal coal, and • having 5 GW or more installed thermal coal capacity Coal mining: • deriving 25% or more of their revenues from mining thermal coal, and • mining 50 million metric tonnes thermal coal or more annually Engagement with major coal companies provides an opportunity to support companies’ management of material risks related to climate change and to establish the transition pathway away from coal. 1 Single-site/stand-alone coverage means the covering of loss and damages for a single power plant and/or mine (green and brownfield) for an insured, as well as for offering guarantees (bonds) to a respective client. The exclusion is applicable 34 for new (first time) contracts and the renewal of contracts. 2 Coal without carbon capture and storage.