C _ Group Management Report Targets and achievements: Climate Change Strategy Topic Targets 2021 Achievements 2021 Targets 2022 and beyond Decarbonizing our investments Set long-term and intermediary climate We have set long-term and As an intermediary target, we aim to targets (by year-end 2024) for intermediary climate targets (see also reduce our emissions in listed equities proprietary investments in line with Targets 2022 and beyond). We are and tradeable corporate bonds by 25 % 1.5ºC, based on AOA framework for working towards our first intermediate by year-end 2024, compared to the 2019 target setting. year-end 2024 target as part of our baseline. The fully owned real estate “net-zero by 2050” commitment for our portfolio will be in line with scientifically proprietary investment portfolio. based 1.5-degree pathways by 2025. Unaudited 24.9 %1 emission reduction We also set emission reduction and (baseline 2019) engagement targets for our infrastructure portfolio in line with 1.5- degree pathways. Phase out of coal-based business − Fully phase out coal-based business In 2021, we tightened our coal − Fully phase out coal-based business models models across our proprietary approach in both proprietary models across our proprietary investments and P&C portfolios by investments and Property-Casualty investments and Property-Casualty 2040 at the latest, in line with the underwriting by also restricting portfolios by 2040 at the latest. 1.5ºC pathway. companies that plan new thermal coal − Reduce threshold for coal-based − Engage with companies in assets or still have a major coal business models for P&C insurance as proprietary investment as well as business in place (5 gigawatts of well as investment portfolios from P&C portfolios to move away from installed coal capacity or 10 million current 30 % to 25 % as of coal. tons mined annually). 31 December 2022. For further insights into our divestments, please refer to our Group Sustainability Report 2021, section 04. Net-Zero Asset Owner Alliance − Further increase the number of Together with our partners at the AOA, − Work across all dimensions of the members and assets under we achieved the following: Alliance commitment and Target- management. − Grew to 65 members across three Setting Protocol − Develop inaugural Target-Setting continents with > USD 10 tn AUM. − By 2023: Disclosure of quantitative Protocol. − Developed 2nd version of the Target- joint AOA report. − Engage with policy-makers, Setting Protocol. regulators, sectors and companies. − Conducted engagements with policy- makers, regulators, energy agencies, sectors and companies. − Published a number of position papers and statements. − Published first AOA progress report. Net-Zero Insurance Alliance We will actively contribute to the Allianz co-founded the UN-convened − Transitioning all operational and establishment of the UN-convened Net- Net-Zero Underwriting Alliance attributable GHG emissions from its Zero Underwriting Alliance alongside alongside other insurance firms around insurance and reinsurance other insurance firms around the world. the world. underwriting portfolios to net-zero GHG emissions by 2050, consistent with a maximum temperature rise of 1.5°C above pre-industrial levels. − Launch of the NZIA Target-Setting Protocol is expected at the latest in January 2023. First individual intermediate targets for 2030 are expected to be released by mid-2023 at the latest. 1_2021 carbon footprint figures impacted by COVID-19 and strong equity market performance; normalization expected in 2022. Figures have been restated due to a change in methodology, resulting in a lower baseline. 62 Annual Report 2021 − Allianz Group