ESG Integration Framework 03.4.1 Allianz ESG Guideline on Agriculture, Fisheries and Screening and assessment criteria Forestry Following an assessment of company, sector and country-specific Allianz assists clients in many areas of the agricultural, fisheries and ESG risk databases, agriculture-related transactions are screened forestry sectors. The industry performs an essential role for society, on the following criteria: which insurance and investment solutions can support. There are a wide range of opportunities for agriculture to operate Risks related to agricultural practices in a more environmentally or socially responsible manner, thus all • Application of monoculture techniques impacting the business activities should seek to incorporate methods or forms environment of sustainable practices in operations where feasible. In many • Conversion of food crops to energy crops cases, ESG-related risks can be mitigated and avoided through the • Inappropriate use of pesticides, fertilizers, insecticides or other application of specific measures. chemicals (including neonicotinoids) External Standards and Sources • Site clearing done using fire or located on marginal, fragile soils The Allianz screening approach criteria are informed by use of Biodiversity risks various multi-stakeholder initiatives such as: • Commodity specific initiatives including the Marine • Absence of mitigation measures to reduce impacts on Stewardship Council (MSC), the Roundtable on Sustainable endangered species Palm Oil (RSPO), the Forestry Stewardship Council (FSC), • Impact on endangered species listed in the IUCN Red List the Aquaculture Stewardship Council, and Greenpeace Environmental risks International Black List (fisheries), • Upstream/downstream impacts (incl. fisheries, pollution, flood • Global Reporting Initiative (GRI) Food Sector Disclosures risk changes, socio-economic impacts) guidance, • Risks related to fisheries practices • UN Food and Agriculture Organization (FAO) Guidelines, • Unconventional aquaculture practices (including use of wild • US Department of Labor and US Department of State List of caught juveniles, use of excessive amounts of medicine/ Products Produced by Forced or Indentured Child Labor chemicals, use of fish oil/meal feed or has a history of poor site • International human rights standards (for additional details selection (e.g. effluent discharge)) see the ESG guidelines on human rights) • Unconventional fisheries practices (including bottom trawling, beach seining, large-scale pelagic driftnets, poisons, explosives, muroami techniques, lack an approach to bycatch reduction) Risks related to forestry practices • Deforestation of primary forest • Illegal logging activity or unsustainable harvesting/use of rare species 10