B _ Corporate Governance Diversity concept for the Board of shortfall of the adequate proportion of women on the Management Management and succession planning Board, composed in accordance with the diversity concept. In accordance with the legislation on the implementation of the European guidelines as regards the disclosure of non-financial and Corporate governance practices diversity information (CSR Directive), the diversity concept for the Board of Management, its objectives, implementation, and results achieved are to be reported. The Allianz Group has an effective internal risk and control system for verifying and monitoring its operating activities and business The Supervisory Board adopted the following diversity concept for the processes, in particular financial reporting, as well as compliance with Board of Management of Allianz SE: regulatory requirements. The requirements placed on the internal control system are essential, not only for the resilience and franchise “For the composition of the Management Board, the Supervisory value of the company, but also to maintain the confidence of the Board aims for an adequate ‘Diversity of Minds’. This comprises broad capital market, our customers, and the public. An assessment of the diversity with regard to gender, internationality, and educational as adequacy and effectiveness of the internal control system as part of well as professional background. the System of Governance is conducted regularly in the course of the review of the business organization. For further information on our risk The Supervisory Board assesses the achievement of such target, inter organization and risk principles, please refer to the section “Risk alia, on the basis of the following specific indicators: governance system” in the Risk and Opportunity Report. For further information on our Integrated Risk and Control System for Financial − adequate proportion of women on the Management Board: at Reporting, please refer to the respective chapter. least 30 % by 31 December 2021; In addition, the quality of our internal control system is assessed − adequate share of members with an international background by the Allianz Group’s Internal Audit function. This function conducts (e.g., based on origin or extensive professional experience independent, objective assurance activities, analyzing the structure abroad), ideally with a connection to the regions in which the and efficiency of the internal control system as a whole. In addition, it Allianz Group is operating; also examines the potential for additional value and improvement of − adequate diversity with regard to educational and professional our organization’s operations. Fully compliant with all international background, taking into account the limitations for the Supervisory auditing principles and standards, Internal Audit contributes to the Board by regulatory requirements (fitness).” evaluation and improvement of the effectiveness of the risk management, control, and governance processes. Therefore, internal This diversity concept is implemented in the appointment procedure audit activities are geared towards helping the company to mitigate for members of the Board of Management by the Supervisory Board. risks, and further assist in strengthening its governance processes and For the purpose of long-term succession planning, a list of candidates structures. is prepared and updated on an ongoing basis by the Chairperson of the Board of Management in consultation with the Chairperson of the Supervisory Board. It is ensured that lists of successors will Integrity is at the core of our compliance programs and the basis for comprise appropriate percentages of female candidates as well as of the trust of our customers, shareholders, business partners, and candidates with international experience. The Personnel Committee employees. The Compliance function fosters a corporate culture of takes this into consideration especially in succession planning. The list individual and collective responsibility for ethical conduct and of candidates includes internal and external candidates who generally adherence to the rules by: meet the requirements for a mandate in the Board of Management. In the event of a vacancy on the Board of Management, the Personnel − advising the Board of Management, managers, and employees on Committee, after a thorough examination, recommends a suitable business conduct that is lawful and ethical; candidate to the Supervisory Board plenary session and reports on the − identifying and assessing material compliance risks and selection process and, if necessary, alternative candidates. Prior to an overseeing the implementation of adequate and effective internal appointment to the Board of Management, all members of the controls to mitigate them; Supervisory Board are given the opportunity to meet the candidate in − providing a speak-up facility that employees and third parties can use person. to confidentially report possible illegal or inappropriate behavior; As a result of the increase in the size of the Board of Management − communicating transparently and trustfully with supervisory to 11 members as of 1 January 2022, the three female members of the authorities. Board of Management account for 27.27 % of the total, which is slightly below the target value of 30 %. Since this shortfall is expected to be of The global compliance programs coordinated by Allianz SE’s central a temporary nature only, the Supervisory Board considers it Group Compliance function support our employees, managers, and acceptable. Five members of the Management Board have executive board members to act responsibly and with integrity in all international backgrounds. There is an adequate degree of variety as situations. regards educational and professional backgrounds. The Board of Management of Allianz SE is thus, with the exception of the temporary 18 Annual Report 2021 − Allianz Group