ESG Integration Framework 01 Introduction As a global insurer, investor and asset manager, understanding Following an overview of ESG-related roles and responsibilities of environmental, social and governance (ESG) issues allows Allianz the key Group functions in section 02, the Statement gives a detailed to reduce risks and capture opportunities in underwriting, claims, overview of Allianz’s ESG approach (governance, policies, standards investment management and asset management. A focus on ESG and guidelines) in section 03. The goal of these sections is to provide issues supports Allianz’s core business and sustainability strategy and the reader with a detailed overview and understanding of how ensures living up to corporate values, demonstrating responsibility Allianz manages its ESG-related risks and opportunities through in decision-making and interactions with societal stakeholders. various governance processes. Section 04 provides our approach By scrutinizing investments and insurance projects from an ESG to managing human rights risks in our business and organization, perspective, Allianz extends its understanding of risks and seizes referencing specific ESG-related processes, where applicable. potential business opportunities for the benefit of its shareholders, Section 05 provides an overview of the ESG processes embedded its customers and other stakeholders. Holistic assessment of risk is within Allianz operating entities (OEs). This rounds-off the ESG especially relevant to Allianz as a manager and carrier of risks that integration description from previous sections, by describing how range from single events to decades as an insurance company. ESG is integrated at Allianz subsidiaries. ESG integration in insurance is carried out by all Allianz operating In the final part of the report (section 06), Allianz gives an overview entities and global lines, through group-wide ESG guidelines and of its membership in key external associations that promote the processes. Allianz integrates ESG factors into the investment of integration of ESG in the insurance and investment industries. 1 2 proprietary assets and the management of third-party assets . The investment of proprietary assets is steered by Allianz Investment Management SE (AIM), while third-party asset management is delivered by Allianz Asset Management (AAM) through its subsidiaries, Allianz Global Investors (AllianzGI) and the Pacific Investment Management Company (PIMCO). The updated version of Allianz ESG Integration Framework further increases transparency by outlining the Allianz approach to integrating environmental, social and corporate governance (ESG) considerations into the core business. Furthermore, this version of the Framework introduces our approach to managing human rights risks across our business and organization. 1 Proprietary assets include insurance investment portfolios, into which premiums collected from insurance customers flow. 2 Third-party assets on the other hand are invested on behalf of asset management 2 customers.