ESG Integration Framework 05 ESG integration in Allianz operating entities emerging ESG issues that might become relevant for Allianz clients This section 0gives an overview of the ESG integration approaches and business. This includes conducting research to understand the and processes in selected operating entities of Allianz Group. relevance of ESG factors on claims and underwriting profitability. Our research shows that this extra-financial information provides signals that are relevant for our underwriting decisions. 05.1 Allianz Global Corporate & Specialty SE For additional details, please see the article on the AGCS website. Additionally, AGCS ESG Business Services publish external ESG 05.1.1 AGCS ESG Business Services Risk Briefings on current and emerging ESG topics on a quarterly AGCS ESG Business Services acts as a center of competence for ESG basis. ESG Risk Briefings can be found online at the AGCS website and central contact point for Allianz Group’s Property & Casualty (agcs.allianz.com) in the section Expert Risk Articles. (P&C) underwriters globally. As part of the ESG Referral Process (section 03.3), the AGCS ESG Business Services team ensures all 05.2 Allianz Investment Management SE potentially ESG critical business transactions are screened and assessed in-detail to allow informed decision making. If ESG risks Investment management is an integral part of the insurance cannot be mitigated or reputational impacts are likely to affect business, as the premiums of Allianz clients are invested and Allianz Group, a transaction is escalated for a Group-level ESG converted into investment returns. Allianz Investment Management assessment to determine, if and if so, under which conditions, the SE (AIM) pools and manages all proprietary assets on behalf of local underwriting can proceed. An example for a condition is an insurance operating entities across a range of asset classes, sectors ESG Risk Dialogue with clients. ESG Risk dialogues are an important and countries to meet long-term liabilities. As a result, Allianz is both tool to engage with clients and directly address issues of concern. directly and indirectly connected with other businesses, sectors and This engagement is beneficial for both sides. It improves the economies. AIM SE systematically integrates ESG considerations understanding of the risk in focus and increases expertise on both across the entire investment portfolio1. sides to manage and mitigate the risks accordingly. A systematic approach concerning communication to and training for underwriters globally ensures awareness and understanding of critical topics and sectors, as well as applicable processes to follow. A related ESG training module has been already available via the “Underwriting Academy” for AGCS underwriters, a similar module for all other underwriters in the Allianz Group have been made available since 2018. 1 ESG integration processes and coverage vary by asset class and between the type In addition, the unit is responsible to develop guidance on new and of portfolio and mandate. Minimum standards for ESG integration are in place for 44 covering all investments through the Allianz ESG Functional Rule for Investments.