ESG Integration Framework 03 ESG approach The objective of this section is to provide a transparent overview of 03.2 ESG in corporate standards and the key processes and guidelines Allianz applies to its insurance and governance investment business. The cornerstone of the overarching ESG approach at Allianz is the 03.1 NGO dialogue Allianz Standard for Reputational Risk Management (AS RRIM). It defines the ESG Sensitive Business Guidelines (SBG) (see section A key component of the Allianz ESG approach is direct 03.4), the Sensitive Countries List (SCL) (see section 03.5) alongside engagement and dialogue with various internationally recognized the ESG Referral Process (see section 03.3). non-governmental organizations (NGOs) to discuss ESG and Deeper integration into the business processes of Allianz is achieved sustainability topics. through reference of these AS RRIM and Sensitive Business The dialogue is a forum for direct exchange of ideas and points of Guidelines within the Allianz Standard for Underwriting (ASU) and view on such topics. Allianz listens to the concerns of its NGO partners the Allianz ESG Functional Rule for Investments (EFRI). Furthermore, and discusses potential solutions to address these concerns. The external business partners, such as external asset managers, are dialogue is a forum for Allianz to leverage NGOs expertise in ESG informed of the ESG Guidelines through the Allianz ESG Integration matters and receive input on the development and implementation Framework. of internal policies, programs and plans related to ESG. Various operating entities and global lines also publish specific The Dialogue takes various forms from roundtable sessions with all standards and rules regarding ESG integration for their given partners present to one-on-one exchanges with specific NGOs. organizational unit. For certain projects, such as for example the ESG Scoring Approach At working level, Global Sustainability and other functions project (see also section 03.6), Allianz also brings NGO partners on have defined processes and procedures to support the proper board to participate in the project team. This gives Allianz a critical implementation of the governance and requirements outlined in the and external viewpoint in the development process of such projects. Allianz Standards and Functional Rules. Many elements of the Allianz ESG Approach described in this The ESG Sensitive Business Guidelines and the AS RRIM ESG Referral chapter were developed in cooperation with or aligned with NGO Process (see section 03.3) apply across all insurance transactions as 1 dialogue partners. Through on-going dialogue, Allianz continuously well as to investments in non-listed asset classes . improves its approach based in part on input from internal and 2 For investments in listed asset classes , Allianz integrates ESG external stakeholders. factors through the requirements set out in the ESG Functional Rule 1 Investments in non-listed asset classes include for example: real estate, infrastruc- ture, renewable energy, private equity, private placements. 2 Investments in listed asset classes include for example: tradeable equity and debt 6 (e.g. stocks, bonds, ETFs, …).