ESG Integration Framework 04.4 Integrating respect for human rights in our decisions about pay business operations • Review proposed pay awards prior to the compensation committee approval to ensure awards are fairly spread and to make any changes if required 04.4.1 Human resources • Carry out a bi-annual external audit/certification to examine As an employer Allianz respects international human rights existing and future pay practices standards for its own workforce. Allianz applies the Universal 04.4.1.2 Diversity and inclusion Declaration of Human Rights throughout its worldwide operations, Allianz believes in equality of opportunity and that diverse minds it is a participant in the United Nations Global Compact (UNGC) and abilities make the company more innovative, more resilient, and and has integrated its ten principles into the company’s globally better equipped for the future. Allianz is committed to providing a binding Code of Conduct. Allianz also respects the OECD Guidelines fair and inclusive working environment where everyone can succeed for Multinational Enterprises. To support employee rights, it was one regardless of gender, age, ability, religion, sexual orientation or of the first companies to create pan-European worker participation cultural background. standards and establish a European SE Works Council under the legislation for Societas Europaea (SE) companies. The diversity of our workforce enables Allianz to utterly understand Allianz also endorses the International Labor Organization’s the needs of its equally diverse customers. Fostering an inclusive (ILO) Declaration on Fundamental Rights and Principles at Work, culture benefits the business and ensures Allianz as a credible, including the ILO Declaration on the freedom of association and the trustworthy partner. Consistent with the Allianz Group Code right to collective bargaining. In countries where local law prohibits of Conduct, there is a zero tolerance with discrimination and formalized unions and works councils, Allianz respects local laws harassment in the workplace. but does not obstruct parallel means of association and bargaining, As part of the diversity and inclusion governance, the Global and strives to act in the spirit of the UNGC principles. Inclusion Council has been in place since 2007. It is chaired by an 04.4.1.1 Equal Remuneration Allianz SE Board Member and consists of senior executives from around Allianz Group. The Council played a key role in defining the To support the UN Sustainable Development Goals on achieving Diversity and Inclusion Strategy ‘Inclusive 21’ that is built around gender equality, Allianz is committed to striving for equal pay, three pillars: Employees, Customers, and Brand & Reputation. The equal work, and work of equal value for all employees regardless strategy aims to embed diversity and inclusion in the whole business. of gender, sexuality, ethnic background, family status or other To bring our strategy, ‘Inclusive 21’ to life we rely on a robust demographic factors, and to fostering a culture of inclusion and and global network of employee resource groups. Following the meritocracy. successful creation of the global employee networks Allianz NEO To put its commitment into practice, Allianz will: (focusing on gender inclusion) and Allianz Pride (focusing on LGBT • Close all unjustified pay gaps over the short term inclusion), further global network boards have been established • Conduct a periodic equal pay review and take actions where with focus on generations (Allianz ENGAGE), multi-cultural (Allianz necessary GRACE) and disability inclusion. These networks ensure that our • Analyze in-depth data, issues and relevant trends contributing employees have access to a community that makes them feel that to equal pay gap to provide a more granular understanding of they belong. the reasons behind Additionally, Allianz continuously trains its leaders and employees • Provide training and guidance to those directly involved in on the topic of inclusion to raise awareness and reduce the negative 41