ESG Integration Framework Principles within the investment industry. Dedicated investments include carbon negative assets and 5 We will work together to enhance our effectiveness in optimizing the rest of the assets. Portfolio companies are contacted implementing the Principles. by Allianz and asked about the need for improvement. Through 6 We will each report on our activities and progress towards dialogue, a development path is created for changing planning implementing the Principles. toward climate neutrality for the company. 06.2.2 Transparency Report Investment opportunities that arise from the shift to a sustainable economy are also important for Allianz. These include, for example, As part of principle 6, Allianz Group publishes the PRI Transparency investments from the renewable energy sector, green or social Report on an annual basis. Allianz SE publishes a report as an asset bonds, green buildings and, in the future, investments in technologies owner (of Allianz proprietary investments), while AllianzGI and which remove emissions from the atmosphere. They provide further PIMCO (both signatories in their own right) publish a report each as diversification for our portfolio, help finance the transformation and, investment managers. in addition to minimizing risk, provide returns and further real world The reports describe in detail how Allianz, AllianzGI and PIMCO are impact. integrating ESG and responsible investment in its processes. Furthermore, the AOA is working with policy-makers to enable a supportive policy environment. This is crucial to ensure the viability 06.3 UN-convened Net Zero Asset Owner of a transition to climate resilience and net-zero emissions. Alliance For more details on our targets and implementation AOA commitments, please see the Group Sustainability Report or the The Net-Zero Asset Owner Alliance (AOA) is a United Nations- website www.allianz.com/sustainability. convened alliance of large institutional investors, established in 2019. 12 founding members, including Allianz, committed themselves to 06.4 UN-convened Global Investors For facilitate the decarbonization of the world economy, by making own Sustainable Development Alliance portfolios carbon-neutral by 2050. The AOA has developed a greenhouse gas emissions (GHG) In October 2019, Secretary-General of the United Nations, measurement for portfolios and an interim target-setting approach, António Guterres, announced the Global Investors for Sustainable called the AOA 2025 Target Setting Protocol. Based on this protocol, Development Alliance (GISD) initiative. It aims to leverage finance Allianz announced for the first time concrete interim targets for and investment know-how to foster the 2030 Development Agenda. reducing greenhouse gas emissions in our investment portfolio The initiative is co-chaired by Oliver Bäte, CEO of Allianz SE. of policyholder funds: By 2025, Allianz will reduce emissions for According to the U.N., achieving the U.N. SDGs requires substantial selected asset classes in the portfolio of customer funds by 25 percent financing in sectors such as health, education, transportation and compared to 2019. In addition, to traditional investment criteria, all climate change. Close collaboration of the private and public sectors equities as well as corporate bonds will in future be reviewed for in both developing and developed countries will be key to achieving their compatibility with the 1.5-degree target of the Paris climate the SDGs. agreement. In addition, by 2025, all real estate invested in by Allianz GISD members commit to actions such as establishing partnerships will be in line with scientifically based 1.5-degree pathways in terms to strengthen relations between investors, governments and of total emissions. These targets cover more than one third of the multilateral institutions that foster scalable investment opportunities insurance portfolios. Allianz will report on its progress annually, in developing countries. They will also roll out and promote the use creating transparency for its customers and the public. of innovative financing facilities and tools that enhance the risk- 49