C _ Group Management Report In 2021, the variable component of the board members´ remuneration (individual contribution factor) considered a range of sustainability- To make a positive impact on society, we must understand and related targets: respond to the changing context in which we operate. Our materiality assessment enables us to stay on top of trends, and to align our − Decarbonization of Allianz operations: 14 percent reduction of approach, reporting and strategy with the sustainability issues that are greenhouse gas (GHG) emissions per employee by 2021 from a most important to our stakeholders and our businesses. We have 2019 baseline. recognized six relevant stakeholder groups: customers, employees, − 70 percent of all electricity consumed in 2021 to be renewable. NGOs, media, rating agencies, and some of our peers performing the − Develop operative implementation plan to reach minus 25 best in terms of their materiality assessments, according to one leading percent CO2 emissions (Scope 1 & 2 of investee companies sustainability rating. according to GHG Protocol), absolute reduction on public equity We consider the outcomes of the materiality assessment in our and listed corporate debt by year-end 2024 from a 2019 baseline. sustainability approach, strategy and reporting. This drives us to focus − Strong sustainability positioning in three major sustainability on the risks, opportunities, issues and impacts that matter most to our ratings: DJSI/S&P Global, MSCI, Sustainalytics. key stakeholders and which we have the ability to influence. Our most recent assessment was carried out in 2021 in line with Targets and achievements: sustainability ratings the GRI standard. Our improved approach used an increasing number Rating Targets 2021 Achievements 2021 Targets 2022 of data sources as well as data points within these sources. DJSI/S&P Top 5 Top rank (2020: Top 5 Global 98th percentile) We identified 19 material issues which were prioritized as having either MSCI1 AA - AAA AAA (2020: AAA) AA - AAA high or medium importance. Topics are ranked and presented in a materiality matrix according to German Commercial Code Sustainalytics Top 5 diversified #7 diversified Top 5 diversified 2 insurance sub- insurance sub- insurance sub- (“Handelsgesetzbuch – HGB”) requirements and based on industry industry (2020: #2 industry stakeholder views on their importance to society and to our business. diversified sub- The highest rated topics for all stakeholders were: insurance industry) − climate change, − On top of these specific sustainability-related targets, other non- − ethics and responsible business, financial factors, such as customer satisfaction (NPS) and − cybersecurity. employee engagement (IMIX), also contribute to board members´ remuneration. For additional details on how the materiality analysis process was performed as well as how the most relevant topics are covered For further details about the targets and achievements, please refer to throughout our business activities, please refer to our Group the respective chapters. These KPIs are also used for steering local Sustainability Report 2021, section 05.3 entities. For further details about the remuneration system of the 3 Group Sustainability Report . Allianz Group, please refer to the ”Variable Remuneration System” in the Remuneration Report of the Group Annual Report 2021. In January 2021, responsibility for the sustainability agenda was Our 2025 ambition is to move Allianz from a leading company to a assigned by the Board of Management of Allianz SE to the new Global sustainability shaper of the financial services sector and beyond. Our Sustainability function. Global Sustainability leads, coordinates, sustainability strategy drives how we run our business with our supports, and/or orchestrates the Allianz’s Group Centers and employees, how we manage our portfolios, and how we target our operating entities to effectively integrate the Group’s strategic activities to have a positive influence on our industry to create real sustainability approach and policies into their business processes. world economic, social and environmental impact. As of the reporting cycle 2021, responsibility for sustainability reporting shifted from Global Sustainability to Group Accounting and We deliver our ambition by fully integrating three main themes in our Reporting, which collaborates closely with Global Sustainability to sustainability approach: produce this report. In June 2021, a Sustainable Operations function was established within Group Operations and IT. The new department − Environmental (E) – low-carbon economy, climate change and will strengthen the sustainability approach of operating entities with a decarbonization primary focus on IT infrastructure and applications, facility − Social (S) – social impact management, procurement, and business travel. − Governance (G) – sustainability business integration 1_The use by Allianz of any MSCI ESG research LLC or its affiliates (“MSCI”) data, and the use of MSCI logos, and/or its third-party suppliers (third-party data) and are provided for informational purposes only. It trademarks, service marks or index names herein, does not constitute a sponsorship, endorsement, does not constitute an endorsement of any product or project, nor investment advice and is not recommendation, or promotion of Allianz by MSCI. MSCI services and data are the property of MSCI or warranted to be complete, timely, accurate or suitable for a particular purpose. Its use is subject to its information providers, and are provided as-is and without warranty. MSCI names and logos are conditions available at https://www.sustainalytics.com/legal-disclaimers. Rating results amongst peers trademarks or service marks of MSCI. with similar market cap 2_Copyright ©2021 Sustainalytics. All rights reserved. This presentation contains information developed by 3_Group Sustainability Report will be available as of 29 April 2022 on www.allianz.com/sustainability. Sustainalytics (www.sustainalytics.com). Such information and data is proprietary of Sustainalytics 58 Annual Report 2021 − Allianz Group