C _ Group Management Report NON-FINANCIAL STATEMENT About the report Corporate sustainability governance This section has been compiled in accordance with the Corporate Social and strategy Responsibility (CSR) Directive Implementation Act (E.U. Directive We create sustainable economic value by pursuing a long-term 2014/95/EU). It focuses on the concepts and key performance indicators approach to environmental stewardship, social responsibility and (KPIs) that reflect our most material sustainability issues. The KPIs corporate governance. This is critical to our business success as we included are: Net Promoter Score (NPS); Inclusive Meritocracy Index deliver on our promises to our stakeholders – in particular our (IMIX); environmental indicators – greenhouse gas (GHG) emissions customers, employees, investors and communities. We continually per employee and percentage of renewable electricity; the carbon adapt our business strategy and sustainability approach to address footprint of our proprietary investment portfolio for listed equities and evolving and emerging issues to deliver on our purpose “We secure corporate bonds; and the E.U. taxonomy eligibility indicators for our your future”. underwriting, proprietary investments and third-party assets. Emerging consumers is no longer considered to be one of the material topics and is not covered in this report. As the Group's parent company, the ultimate responsibility for all The concepts contained in this report are in line with the content matters relating to sustainability resides with the Board of of our Group Sustainability Report 2021, which is compiled in Management of Allianz SE. To support the Board of Management in accordance with the standards set out by the Global Reporting its respective decision-making process, Allianz SE has established a Initiative (GRI) and will be published on 29 April 2022. dedicated Group Sustainability Board (known until January 2022 as This non-financial section of our 2021 Annual Report covers the the Group ESG Board) as an advisor on all matters around entire Allianz Group and also includes the relevant non-financial sustainability. It is composed of members of the Board of information for Allianz SE. All measures, activities and key figures refer Management of Allianz SE and Group Center heads, and meets at to the 2021 financial year (1 January 2021 to 31 December 2021). least quarterly. The core responsibilities of the Group Sustainability Where appropriate, we compare our targets set in the previous year Board are: Preparing the overall framework for sustainability for the with the achievements from this year and define our targets for next Allianz Group, aligning sustainability (ESG) integration into the Allianz year. Unless otherwise stated, we use the control principle defined by Group’s business processes with Allianz as an organization (operations the International Financial Reporting Standards when determining and organization) and Allianz as a financial institution (investment, the scope of our reporting for the Allianz Group. insurance, asset management) as well as related internal and external This non-financial statement is an integral part of the communication. Furthermore, it assumes responsibility for the management report and, as such, is subject to the statutory audit of oversight and steering of overarching sustainability matters, such as PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft. topics concerning the climate, society and governance. Any references to information published outside the Group The work of the Group Sustainability Board is also supported by Management Report and Allianz SE's Management Report are corporate functions and operating entities, which implement supplementary, do not form an integral part of this non-financial sustainability matters in their activities. information, and are not subject to any assurance engagement (unless As a further measure to strengthen sustainability matters within specified in the respective document). the Allianz Group, in 2021, the Supervisory Board of Allianz SE established its Sustainability Committee to oversee ESG issues, to advise the Board of Management on ethical standards concerning the Company description usage of data (Data Ethics), and to monitor the Board of Management’s sustainability strategy. It supports with sustainability- We provide property-casualty and life/health insurance as well as related target setting and performance reviews for Board of asset management products and services to our customers around the Management remuneration. world. In our activities as a financial services provider, we take sustainability-related risks such as climate change into consideration Other Board of Management committees play an important role in and pursue opportunities from sustainability trends. We describe our decision-making processes: management approach to these matters in this section. For further information on our business model, see our − The Group Finance and Risk Committee oversees risk Business Operations chapter, and our Group Sustainability Report 2021, management and monitoring, including sustainability risk. section 01.2 https://www.allianz.com/en/sustainability.html. − The Group Underwriting Committee monitors the underwriting business and related risk management, including sustainability- related matters. − The Group Investment Committee focuses on fundamental investment-related topics, including sustainability-related matters Annual Report 2021 − Allianz Group 57