ESG Integration Framework 03.4.12 Allianz ESG Guideline on Oil and Gas Screening and assessment criteria The oil & gas sector continues to play the dominant role in supplying Following an assessment of company, sector and country-specific the energy needs of the global economy. Allianz aims to support ESG risk databases, oil and gas-related transactions are screened the sector as an insurer and investor as long as organizations on the following criteria: take measures to mitigate or avoid environmental and social risks. Naturally with new forms of energy production there can Biodiversity risks be increasing levels of risk which can be mitigated with the right • Absence of mitigation measures to reduce impacts on technical expertise. endangered species External Standards and Sources • Impact on endangered species listed in the IUCN Red List The Allianz screening approach criteria are informed by Environmental risks 1 the IFC Environmental and Social Performance Standards and • Absence of plans for decommissioning / end-of-life Guidance Notes, • Environmental and regulatory licensing and permitting 2 the GRI Oil & Gas Guidance, processes not started or incomplete 3 the Extractive Industries Transparency Initiative, • Environmental impact assessment not conducted or not 4 the IPIECA Oil and Gas Guidance and conducted in line with national or international standards and 5 international human rights standards (see also human rights the necessary public consultation (including all supporting sensitive business area). infrastructure, i.e. power lines, access roads) • No water reclamation/reuse from oil sands tailings ponds • Upstream/downstream impacts (incl. fisheries, pollution, flood risk changes, socio-economic impacts) Environmental risk management • Absence of spill management/response/remediation management plan Governance risks • Absence of anti-bribery and anti-corruption plans/systems/ procedures Risks to local communities • Absence of a benefit sharing agreement or compensation • Free, prior and informed consent (FPIC) of impacted parties not obtained • Incidents of harm to local populations and/or the environment from pollution related to the project 24