Sustainability Report 2021

Allianz Group Sustainability Report 2021 Building confidence in tomorrow

Sustainability Report 2021 Our internal purpose, ‘We secure your future’, expresses our reason for being. It guides our decisions and actions across the Allianz Group. This purpose drives us to shape a better tomorrow where people have more hope than fear through constant innovation and collaboration. This report brings together our strategy, ambition, commitments, and contributions to shape a more sustainable future and Building showcase how we are... confidence in tomorrow 01

Sustainability Report 2021 Contents 01 Introduction 03 Strengthening 05 Our universal principles 01.1 Message from the CEO 05 our foundation 05.1 Target and achievement tables 94 01.2 Company description and strategy 07 03.1 Corporate citizenship 57 05.2 How we report: transparent reporting, 99 01.3 Our sustainability approach 08 03.2 Cybersecurity 59 ratings and performance 01.4 Our social approach 09 03.2.1 Data privacy 59 05.3 Materiality 101 01.5 Our climate approach 10 03.2.2 Data ethics 59 05.4 Stakeholder engagement 103 01.6 Our sustainability integration approach 11 03.2.3 Information security 60 05.5 Sustainability governance 105 01.7 2021 Reporting highlights 13 03.2.4 Cyber risk 60 05.6 Our commitment to human rights 108 03.3 Regulatory and public affairs 61 05.7 Our impact on the U.N. Sustainable 109 03.4 Compliance 62 Development Goals 02 Measuring and 03.5 Tax transparency 64 05.8 Independent practitioner’s report on a 110 managing sustainability 03.6 Sustainable procurement 65 limited assurance engagement on sustainability information Sustainability in our business activities 02.1 Sustainability in insurance 16 04 Climate-related 02.1.1 Integrating sustainability in insurance 18 financial disclosure 02.1.2 Climate change and decarbonization 18 02.1.3 Natural disasters 20 04.1 Highlights 67 02.1.4 Emerging consumers 21 04.2 Governance 68 02.1.5 Sustainable solutions 22 04.3 Strategy 69 02.2 Sustainability in proprietary investments 24 04.4 Strategy resilience, stress-tests and climate 73 02.2.1 Integrating sustainability in proprietary investments 25 scenario analysis 02.2.2 Sustainable investments 28 04.5 Risk and opportunity management 82 02.2.3 Climate change and decarbonization 30 04.6 Targets and metrics 85 02.2.4 Sustainability in real estate investments 32 02.3 Sustainability in asset management 33 Sustainability in our organization 02.4 Human resources 37 02.4.1 Diversity and inclusion 42 02.4.2 Training and developing our people 44 02.4.3 Engaging our employees 45 Disclaimer regarding rounding 02.4.4 Health and well-being 47 02.5 Customer satisfaction 49 Due to rounding, numbers presented may not add up precisely to 02.6 Environmental management 51 the totals presented and percentages may not precisely reflect the absolute figures. 02

Sustainability Report 2021 GRI 102-14 About this report Allianz Group Accounting As part of this commitment, following the and Reporting Remit description of our sustainability approach and Our reporting ecosystem strategies, we have changed the structure of We place a premium on transparency and easy-to-find content. This report is part of a broader As of the reporting cycle 2021, in line with the main parts of our annual sustainability reporting ecosystem which covers sustainability topics relevant to Allianz Group. This year’s our sustainability integration approach, report to cover two main sections, both of publications include: responsibility for sustainability reporting which we consider equally important in terms shifted from Global Sustainability to of communicating our approach to material Non-financial Non-financial sustainability issues: Group Accounting and Reporting, Measuring and managing our Statement Supplement which collaborates closely with Global sustainability performance Based on European Non- Complete overview of Sustainability to produce this report. Financial Reporting Directive sustainability-related KPIs. Covering material topics and public targets and and non-binding guidelines for Published in Excel and Our reporting approach commitments that are integrated across Allianz non-financial reporting. Pdf format. and where we have established quantitative Reflecting our ambition to be the most trusted targets, KPIs and performance data. financial institution, we reflect our values of integrity, Strengthening our foundation competence and resilience in our reporting. The content of this report is focused on the Covering material topics and other topics related to requirements of our stakeholders, relevant ratings performance that are evolving towards fuller Analyst Presentation Sustainability Factbook regulations, and sustainability rating and integration across Allianz and where our targets, benchmarking providers. It focuses on the concepts KPIs and performance are continuing to evolve. Presentation of Group financial We also publish our and key performance indicators (KPIs) that reflect For further information about your results including non-financial Sustainability Fact Book our most material sustainability issues and has approach to reporting, please see section KPIs to analysts. outlining the key points of our been prepared in accordance with the Global 05.2 How we report: transparent reporting, strategy and achievements. Reporting Initiative (GRI) Standards – core option. ratings and performance We are also assessing the option of Integrated Reporting and, as a first step, include a highlights Communicating our performance People Factbook Tax Transparency KPI table which follows the International Integrated We simplify communication of our Key Human Resources facts Report Reporting Council (IIRC) logic. performance in several ways: and figures, achievements in For more details, please see section 01.7 2021 and an outlook for 2022. Find out more about our 2021 Reporting highlights Through tables and charts throughout approach to taxes and relevant the report; tax data on a country-by- We believe targets and performance information References to GRI standard disclosures country basis. are essential for enhancing the quality, reliability are tagged using this icon and comparability of sustainability reporting. We are committed to disclosing data more Data tables in the beginning of each You can find out further sustainability reports and publications in the download center on meaningfully to improve our sustainability major chapter, which are referenced using our website. disclosures for internal decision-making and for a circle icon (example: Table ESG–1). our external stakeholders. As an investor, we also Case study content is referenced using rely on this type of information to integrate the magnifying glass icon. sustainability into our core business activities. 03

Sustainability Report 2021 01 Introduction 01.1 Message from the CEO 01.2 Company description and strategy 01.3 Our sustainability approach 01.4 Our social approach 01.5 Our climate approach 01.6 Our sustainability integration approach 01.7 2021 Reporting highlights 02 Measuring and managing sustainability 03 Strengthening our foundation 04 Climate-related financial disclosure 05 Our universal principles 01 Introduction 04

Sustainability Report 2021 01.1 Message from the CEO 01 Introduction Every day, Allianz strives to earn the trust placed Allianz made good progress in us by our stakeholders and honor the role on climate ambition 01.1 Message from the CEO our company plays in society by truly living our 01.2 Company description and strategy purpose: Allianz is here to secure your future. 2021 was another year where the climate 01.3 Our sustainability approach predictions of science manifested in reality: 01.4 Our social approach Having stepped up to meet the challenges affecting the world is heating too fast and is becoming 01.5 Our climate approach the course of our planet, I am pleased to say less resilient to more extreme weather in the form 01.6 Our sustainability that the broad range of Allianz’s sustainability of storms, floods, heat waves and forest fires. integration approach efforts was recognized by highly respected Recent events have redoubled focus on renewable 01.7 2021 Reporting highlights external observers and through rigorous rating energy, on the importance of solving the climate methodologies. To name only one example, crisis and on the pursuit of a net-zero world 02 Measuring and we received the top rating in the 2021 Dow Jones to which Allianz has committed as part of the managing sustainability Sustainability Index. net-zero objective of Paris Climate Agreement. 03 Strengthening Over the course of 2021, a year once again But decarbonization alone is not enough – our foundation dominated by the COVID-19 pandemic and its we must address the social issues emerging from ensuing economic implications for individuals and the net-zero transition particularly in view of rising 04 Climate-related communities, Allianz stood reliably at the side of energy and food prices, further exacerbated from financial disclosure our clients, our employees, and our shareholders. the invasion of Ukraine. In February 2022, when Russia invaded the For our Allianz investments, climate was again 05 Our universal principles democratic and independent nation of Ukraine, on top of the agenda: COP26 brought together we made clear that Allianz stands with the free governments and the industry on climate world. We stand with all people who believe in and regulation is increasingly focusing on the open and free societies, with all our employees, issue. Allianz believes public-private and peer and with all people affected by these events. partnerships are key to battle the climate To underscore our support, we immediately challenges. We chair the U.N.-convened Net-Zero earmarked donation funds totaling € 10 million Asset Owner Alliance (AOA), by far the largest for humanitarian needs and promised an initiative in terms of true commitments towards additional € 2.5 million to match our employees’ a net-zero environment. The AOA was prominent and tied agents’ donations. As of March 31st 2022, at COP26 as it is the first public-private and peer our employees and tied agents have personally alliance setting short-term (2025) targets for donated over € 1 million. The generosity of our the decarbonization of investments. Within this Building people is only rivalled by their ingenuity, which is context, Allianz in January 2021 announced apparent in a range of business solutions to help concrete targets for 2025. humanitarian efforts in the affected region and confidence neighboring countries. in Allianz 05

Sustainability Report 2021 01.1 Message from the CEO 01 Introduction Broadening the net-zero commitments to insurance Caring for our people Our efforts to improve and simplify our products Please enjoy reading this report. And please and asset management is an important element The Allianz organization prizes its employees and processes also led to increased customer feel encouraged to make your own contribution 01.1 Message from the CEO of our strategy. Therefore, Allianz also became a and customers and cares for them accordingly: loyalty, with NPS improving to 84 % in 2021 from toward a more sustainable world. We are in 01.2 Company description and strategy founding member of the U.N.-convened Net-Zero Convinced that vaccination will help the previously 79 % of segments outperforming their this together. 01.3 Our sustainability approach Insurance Alliance (NZIA) and our asset manager return to normality happen sooner, Allianz has respective market. 01.4 Our social approach Allianz Global Investors became a member of conducted vaccination campaigns in 16 countries We also contributed to our local communities 01.5 Our climate approach the Net-Zero Asset Managers initiative during (e.g., Colombia, Germany, Ghana, Lebanon, in 2021: Allianz’s charitable donations totaled 01.6 Our sustainability 2021. Our insurance entities focus on climate risk Malaysia) in 2021. € 28.2 million, and our employees contributed integration approach management and aspire to use our insurance 01.7 2021 Reporting highlights expertise to support the transformation of We have highly motivated and highly loyal 72,580 hours in corporate volunteering. different sectors and customers towards net-zero. employees. Our Inclusive Meritocracy Index (IMIX) We will take sustainability to the heart of Chairman of the Board 02 Measuring and With natural catastrophes hitting communities which measures the progress of the organization of Management managing sustainability around the world, we stood by our customers, on its way towards inclusive meritocracy, stood at Allianz – together Allianz SE 03 Strengthening notably the major floods across Europe caused an excellent 78 % in 2021, exceeding our targets Allianz has the ambition, as well as the global our foundation by storm “Bernd”. We unbureaucratically covered by 5 %-p. scale and skills, to be the trusted partner of our more than 20,000 claims with an amount of more Our efforts around diversity and inclusion stakeholders, helping to solve society’s most 04 Climate-related than € 1 billion. pressing issues. Already today, we are taking financial disclosure The Allianz organization delivered on its climate are paying out: environmental, social and governance aspects to targets: in 2021, we reduced the greenhouse • Approximately 30 % of Allianz Group operating the heart of our business. Going forward, we are 05 Our universal principles gas emissions (GHG) per employee and profit is managed by women, we see that working to fully integrate sustainability into increased renewable energy, ahead of our targets. diversity and performance go hand in hand. how we run our organization and our business This was mainly driven by lower energy use alike, and to drive real world impact in societies, • Allianz is also in the top 5 of the Refinitiv economies, and the environment. To support the and more renewable electricity, as well as low Diversity & Inclusion Index 2021 globally and sustainability integration, Global Sustainability business travel emissions, including effects from the number 1 insurance company. was established as a Group Center as of January COVID-19 measures. • We also signed the ‘Valuable 500’ Charter and 2021, and the Sustainability Committee was Allianz is one of 14 Iconic Leaders, who are formed under our Supervisory Board in June 2021. co-creating solutions which will transform the In 2022, we will further integrate sustainability business system to be more inclusive of people into Allianz’s organization and business areas with disabilities. Together with London Stock and continue inspiring employees, customers, Exchange Group (LSEG), Allianz is committed investors, and society. to increase transparency on disability data disclosure in the corporate space across the globe. 06

Sustainability Report 2021 GRI 102-14 01.2 Company description and strategy 01 Introduction Allianz Group is one of the world’s • Outperform: We seek to move ahead of our leading insurers and asset managers competitors, both traditional businesses and 01.1 Message from the CEO disruptors, to drive profitable growth. 01.2 Company description and strategy with 126 million private and corporate Living our purpose: We secure your future 01.3 Our sustainability approach customers1 in more than 70 countries. • Transform: We seek to become simpler and 01.4 Our social approach deeply digital, and to put – in addition to the 01.5 Our climate approach Our customers benefit from a broad range of customer – scalability at the heart of our actions. 01.6 Our sustainability personal and corporate insurance services, • Rebalance: We seek to build leading positions in Business Activities integration approach ranging from property, life, and health insurance large, profitable, and fast-growing geographies Insurance operations Asset management Corporate and other 01.7 2021 Reporting highlights to assistance services to credit insurance and as well as in new areas of business. An increased Confidence in tomorrow Real world impact global business insurance. As one of the world’s focus will be placed on an organic rebalancing We offer insurance products that We responsibly invest assets We embed sustainability 02 Measuring and largest investors, Allianz is managing around of the business mix. protect our customers from that mitigate risks and to deliver value for all managing sustainability € 849 billion on behalf of its insurance customers. a wide range of risks. seize opportunities. of our stakeholders. Furthermore, our asset managers PIMCO To realize our growth ambition and accelerate our 03 Strengthening and Allianz Global Investors manage nearly value creation, we have identified five additional Property-Casualty Allianz GI Central holding functions our foundation € 2.0 trillion of third-party assets. Thanks to strategic areas of focus: 04 Climate-related our systematic integration of environmental, • Transforming the Life/Health and Asset Life/Health PIMCO Other business units financial disclosure social and governance (ESG) criteria in our Management franchise business processes and investment decisions, • Expanding our Property & Casualty 05 Our universal principles we hold the leading position for insurers in leadership position the Dow Jones Sustainability Index. In 2021, Sustainability Approach 2 employees achieved total revenues • Boosting growth through scalable platforms 155,411 3 Allianz as an organization of € 148.5 billion and an operating profit of • Deepening the global vertical integration and Climate approach 4 € 13.4 billion for the group. execution of agility Our purpose and strategy • Reinforcing capital productivity and resilience Social approach Allianz as a financial institution (insurance, proprietary investments, Our purpose is ‘We secure your future’. It is our Sustainability integration is an important element Governance integration approach asset management) reason for being and it guides our decisions and of the strategy implementation. We aim at carefully actions across the Allianz Group. balancing across stakeholders, at the same time Allianz has defined the following objectives for our as we deliver benchmark results at scale and build medium-term strategy, building on the success of strong resilience in a transforming world. the efforts to simplify the company, with the motto For further details about the group’s Purpose We secure your future ‘Simplicity at Scale’: Corporate Strategy, please see the Allianz Group Annual Report 2021, pages 97–98 and Aspiration The trusted partner for protecting and growing your most valuable assets the materials published as part of our Capital Markets Day 2021. Promise 1 Including non-consolidated entities with Allianz customers. 2 Total employees (core and non-core business). 3 Total revenues comprise Property-Casualty total revenues (gross premiums written, and fee and commission income), Life/Health statutory gross premiums written, operating revenues in Asset Management, and total revenues in Corporate and Other (Banking). Careful balance Delivery of benchmark Strong resilience in a 4 Earnings from ordinary activities before income taxes and non-controlling interests in earnings, excluding (if and as applicable for each business segment) all or some of the following items: income from financial assets and liabilities carried at fair value through income (net), realized gains/losses (net), impairments of across stakeholder results at scale transforming world investments (net), interest expenses from external debt, amortization of intangible assets, acquisition-related expenses, restructuring and integration expenses, and profit/loss of substantial subsidiaries held for sale, but not yet sold. 07

Sustainability Report 2021 01.3 Our sustainability approach 01 Introduction 01.3.1 Our ambition All three are closely interlinked, so we refer to Sustainability Board (formerly known as ESG Global Sustainability leads, coordinates and supports sustainability in general rather than to ESG. Board). During 2021, Allianz further established the functions and operating entities to effectively 01.1 Message from the CEO We support the transformation towards Please see our targets and commitments in the Group Center Global Sustainability, and the integrate the Group’s strategic sustainability approach 01.2 Company description and strategy sustainable economies and societies this means section 05.1 and 05.3. for a detailed overview. Sustainability Committee within the Supervisory and policies into their strategies and activities. 01.3 Our sustainability approach that we want our economy to provide the societal Board, to enable the sustainability strategy Sustainability-related performance is also integrated 01.4 Our social approach minimum for all while not breaking ecological 01.3.2 Enabling the integration integration and implementation. in our compensation systems through relevant 01.5 Our climate approach barriers, our ambition is to integrate sustainability of sustainability Equally important is the integration of sustainability targets incentivizing board members to act and 01.6 Our sustainability into everything that happens at Allianz, into our across Allianz as an organization (operations, decide according to E, S and G priorities. Information integration approach decision making, thereby driving real world impact Allianz increased the importance of sustainability 01.7 2021 Reporting highlights in societies, economies and the environment. on our agenda in 2021 with the ambition to fully HR, finance and risk, communication), and across about the board targets are shown below. We aspire to listen to our stakeholders, take care integrate sustainability across the company. all business areas (insurance, investments, For more details on the integration of 02 Measuring and to understand their concerns, and ensure that asset management). The different functions sustainability in our corporate governance, managing sustainability our actions meet their expectations. To be able The Board of Management at Allianz SE is are responsible for driving sustainability into please see section 05.5. to deliver impact, we believe in collaboration ultimately responsible for all matters related their strategies and actions. 03 Strengthening and partnerships, as many of the sustainability- to sustainability and is supported by the our foundation related matters require global action beyond 04 Climate-related company boundaries. Sustainability-related targets linked to the remuneration of the Board of Management financial disclosure We prioritize three U.N. Sustainable Development Goals (SDGs) to guide the Our targets 2021 2022 More details 05 Our universal principles integration of sustainability across Allianz. Ensure strong sustainability position (top ranks in DJSI, Ensure strong sustainability position (top ranks in DJSI, MSCI, Section 05.1; 05.2 With this sustainability focus, we plan to tackle MSCI, Sustainalytics). Sustainalytics). societal, environmental, and economic change: Define approach and KPIs for sustainable claims management Section 02.1.2 • Decent work and economic growth (SDG 8) is in Overarching in retail P&C. line with our aspiration to be a trusted partner Develop strategy for sustainability in asset management, leading to Section 02.3 for protecting and growing stakeholders most strong competitive positioning in sustainable product offering valuable assets; and ensuring strong sustainability reputation. • Climate action (SDG 13) is in line with our Operations: 14 % reduction of GHG (greenhouse gas) Operations: 18 % reduction of GHG (greenhouse gas) emissions per Section 02.6 commitments to net-zero by 2050 and the emissions per employee by 2021 (vs 2019) and 70 employee by 2022 (vs 2019) and 88 % renewable electricity as share Net-Zero Alliances; % renewable electricity as share of total electricity of total electricity consumption in 2022. Environ- Decarbon- consumption in 2021. 1 Scope 1 & 2 of investee companies according to • Partnerships for the goals (SDG 17) is mental isation Proprietary Investment: Develop operative implementation Proprietary Investment: Establish a quantitative roadmap to reach Sections GHG Protocol. GHG Protocol categorizes GHG plan to reach minus 25 % GHG emissions1 1 emissions into three broad scopes: Scope 1: in line with our belief that the public/ (absolute reduction minus 25 % GHG emissions (absolute reduction on public equity 02.2; 04.6 All Direct GHG emissions, which are emissions private and peers need to cooperate to on public equity and listed corporate debt by 2025 from and listed corporate debt by 2024 vs 2019). from sources that are owned or controlled by improve sustainability. a 2019 baseline). the reporting entity, Scope 2: Indirect GHG emissions, which are emissions from consumption • Environment (E) – Our climate approach / Customer Net Promoter Score (NPS) Digital Net Promoter Score (dNPS) Section 02.5 of purchased electricity, heat or steam, Scope 3: Loyalty Other indirect emissions, such as the extraction focus on SDG 13 Social and production of purchased materials and fuels, Employee Inclusive Meritocracy Index (IMIX) and Work Well Index+ Inclusive Meritocracy Index (IMIX) and Work Well Index+ (WWI+) Section 02.4 transport-related activities in vehicles not owned • Social (S) – Our social approach / Engagement (WWI+) or controlled by the reporting entity, electricity- focus on SDG 8 related activities (e.g. T&D losses) not covered in Leadership Contribution with particular focus on Allianz Leadership Contribution with particular focus on Allianz People Section 02.4 Scope 2, outsourced activities, waste disposal, etc. • Governance (G) – Our approach to Governance People Attributes (Customer & Market Excellence, Attributes (Customer & Market Excellence, Collaborative Reference for calculation to be found in Allianz Sustainability Report. Emission-related data is sustainability integration Collaborative Leadership, Entrepreneurship, and Trust) Leadership, Entrepreneurship, and Trust) provided by MSCI. 08

Sustainability Report 2021 01.4 Our social approach 01 Introduction 01.4.1 Our ambition • With our Corporate Citizenship Strategy, we help Our employees Civil society and non-governmental next generations to overcome economic and Delivering our purpose starts with our employees organizations (NGOs) 01.1 Message from the CEO Our social approach is based on the belief that social impacts; and we support in crisis situations who are part of our diverse and global workforce. 01.2 Company description and strategy business can only thrive as part of an equitable like the pandemic and the Ukraine humanitarian Together with civil society and NGOs, we are 01.3 Our sustainability approach society. Under our purpose ‘We secure your future’ situation. For the Ukraine humanitarian crisis This diverse workforce enables us to understand shaping change for good. Allianz brings its 01.4 Our social approach we aim to contribute by being the trusted partner Allianz committed to donate € 10 million and and fulfill the needs of our equally diverse commercial expertise and global scale to the 01.5 Our climate approach for protecting and growing our stakeholders’ most is committed to match employees’ and tied customer base. We take a strong stance regarding table and listens to the interests of civil society 01.6 Our sustainability valuable assets. agents’ donations up to € 2.5 million. employee engagement, diversity and inclusion and NGOs. We aim to be a trusted partner by integration approach With an added focus on SDG 8 – Decent and gender equality. We focus on managing talent, committing to jointly working on solutions. 01.7 2021 Reporting highlights work and economic growth – we integrate • By the date that this report is published, rewarding personal achievements and promoting To find out more about our engagement social considerations into our organization, Allianz confirms that we are neither insuring employee rights. The health, safety and well-being with stakeholders, please see section 05.3. 02 Measuring and our business areas, and our corporate citizenship new business nor making new investments on as well as the training and development of our managing sustainability behalf of its own investment portfolio in Russia employees is of utmost importance. Governments, regulators activities. We do this through our own initiatives or Belarus. Our operating entities are no longer For more details, please see section 02.4 and 03 Strengthening and – in line with our commitment to SDG 17, underwriting new insurance business in Russia, the Allianz People Factbook 2021. and policymakers our foundation Partnerships for the goals – through active and are decisively reducing exposure in an Allianz is committed to being a good corporate participation in various partnerships from global orderly manner. Our customers citizen, responsible taxpayer, and a trusted partner. 04 Climate-related U.N.-backed initiatives to collaborations with We strive to be in ongoing and constructive financial disclosure regional NGOs and local charities. 01.4.2 Our commitment to For customers, we aim to shape a better tomorrow exchange with policymakers and politicians With our global footprint, we have an opportunity together, under our purpose. We care about our with the goal to contribute to viable solutions 05 Our universal principles to create positive impact through the way we run human rights customers’ hopes and fears, providing security in for societal, environmental and economic issues. our organization and by using our expertise as an Respect for human rights is a minimum requirement the ups and downs of life, and particularly in crisis We particularly share our expertise as a leading investor, insurer and asset manager. We contribute for responsible business within and beyond our situations like the pandemic. We aim to deliver financial services provider, in areas like insurance, to our stakeholders and societies in different ways: direct operations. For Allianz, human rights are quality in a fair, simple and sustainable way, investment, and finance. relevant in our different roles – as an insurer, investor, listening to our customers to continually improve. • We distributed economic value of € 104 billion asset manager, employer and in the supply chain. To find out more on our approach to customer For more details, please see section 03.4. to our stakeholders, for example through satisfaction, please see section 02.5. To find out more about our approach to being claims payments, wages, and taxes. As a signatory of the United Nations Global a responsible taxpayer, please see section Through these payments, we are making a Compact (UNGC), Allianz has committed itself to Our investors 03.5 and the Tax Transparency Report 2021. meaningful contribution to the economic and upholding human rights. social development of the countries in which For more details, please see section 05.5 and We set important short- and long-term sustainability we operate. our UNGC Communication on Progress. targets and at the same time ensure their 01.4.4 Our Corporate • We developed our Diversity and Inclusion reasonable balance with our financial objectives. Citizenship Strategy strategy to cover gender, generations, LGBTQ+, We disclose our quantitative and qualitative nationalities, and disabilities. 01.4.3 Our commitments and sustainability performance to the market and are Next to our commitments to address the social contributions to our stakeholders open and transparent about our sustainability matters of our stakeholder groups, we have • Through our products and solutions, we can approach with our investors. a dedicated ‘Corporate Citizenship Strategy’, enable access to financial services which take Our social approach is an integral part of our To find out more, please see our Analyst which we renewed in 2021. It explicitly focuses on sustainability into consideration. core business, guided by our purpose ‘We secure Presentation 2021 as well as our Group the next generations and people with disabilities, your future’. To deliver on our strategic promises of Annual Report 2021. and it is grounded in our company purpose carefully balancing across our stakeholders and ‘We Secure Your Future’ and our commitment to shaping strong resilience in a transforming world, SDG 8 – Decent work and economic growth. we focus on contributing to all stakeholders. For more details, please see section 03.1. 09

Sustainability Report 2021 01.5 Our climate approach 2 01 Introduction 01.5.1 Our ambition Target Setting Protocol of the AOA , where we 01.5.3 Our Climate Furthermore, we are piloting new approaches that have taken on a shaping role. Also, our fully combine insurance offerings with measures that 01.1 Message from the CEO Our climate approach is grounded in the Allianz owned real estate portfolio is intended to be Change Strategy strengthen their resilience. These are, for instance, 01.2 Company description and strategy Group Climate Change Strategy. With a special in line with scientifically based 1.5°C pathways Allianz has had a Climate Change Strategy approaches to incentivize people to reduce 01.3 Our sustainability approach focus on SDG 13 – Climate action, we integrate with low/no overshoot by year-end 2024. in place since 2005. The current strategy was risk including dedicated training and advice. 01.4 Our social approach climate considerations in our organization and our • To define science-based climate targets in our approved by the Group Sustainability Board Also, we use climate risk-differentiated premium 01.5 Our climate approach business areas. We further strengthen our climate insurance portfolio, we – as a member of the in 2019. With the rapid development of the structures in our insurance. 01.6 Our sustainability action by collaborating with private and public Net-Zero Insurance Alliance – are currently state of knowledge on climate-related matters, Many people still do not have insurance at all. integration approach partners, in line with SDG 17 – Partnerships for the we continually review our Climate Change 01.7 2021 Reporting highlights goals. Examples for such partnerships include the working on the targets and methodologies. strategy, to secure that our action continues to To close this the protection gap in the most U.N.-Convened Net-Zero alliances. These methodologies are expected to be be in line with science. The strategy is built around vulnerable parts of society, we collaborate 02 Measuring and We have the ambition to be a partner for our published in January 2023. Subsequently, the three pillars, through which we can have an with our peers, governments, and civil society. managing sustainability Allianz and other members will be able to We support scientific research and innovation clients and investees, and for the different sectors, set their first near term net-zero insurance impact: Anticipate. Care. Enable. that improves society’s understanding of climate- 03 Strengthening in their transition towards net-zero. targets. All members have committed to report We anticipate the risks of a related risks. our foundation annually on their progress. 01.5.2 Our commitments • We will continue to gradually implement our changing climate We enable the low-carbon transition 04 Climate-related and contributions phaseout of coal-based business models across Our climate strategy aims to anticipate the risks of We aim to enable the journey to net-zero for our financial disclosure a changing climate. Therefore, we systematically own operations, for our investees and for our Our climate approach is an integral part of our our proprietary investments and P&C portfolios consider climate and sustainability criteria in insurance customers. Our ambition is to be an 05 Our universal principles core business. By committing to net-zero GHG by 2040 in line with 1.5°C pathways with low/no our insurance and investment business. In 2021, insurance and investment partner for the net- emissions by 2050, we are working on setting overshoot. This includes a stricter threshold for we reviewed our approach to identifying and zero transformation the different industries and long-term climate targets across our operations coal-based business models for P&C insurance managing climate change risks and opportunities customers need to make. 1 (25 percent as of 31 December 2022); for our and business lines in line with the 1.5°C ambition investment portfolios from current 30 percent to develop it further. of the Paris Climate Agreement. The Allianz SE Our business strategy aims to systematically Board of Management’s remuneration is tied in to 25 percent, as of 31 December 2022. We also systematically engage with investee enable a low-carbon and climate-resilient future. part to the attainment of these targets. • We also announced that we will no longer companies, which are exposed to high climate We strategically invest in low-carbon assets • On our overall goal to create positive change provide insurance for dedicated oil sands and sustainability risks. We offer advice and and are insuring low-carbon technologies. for societies and economies, we will continue projects and new oil sands pipelines, or to encourage them to define and pursue their Grounded in our belief in science-based decision to integrate climate action across all business companies deriving more than 20 percent of own climate strategies in line with the latest making, we intend to support our partners, areas and markets and deliver on our net- their revenue from oil sands. scientific findings. investees, and clients along the path to net-zero. zero targets. • We will publish an update of our Oil & Gas As part of our decarbonization strategy, we commit We also commit to pursing net-zero within our policy and a new target for our GHG emissions to fully withdrawing from coal-based business own operations. • For our proprietary investment portfolio, from own operations on 29 April 2022. models across our proprietary investment and Find out more about climate in our business we are on track to systematically reduce Find out more on our website. property-casualty portfolios by 2040 at the latest. activities in sections 02.1, 02.2, and 02.3 and GHG emissions to net-zero in line with the in our own operation in section 02.6 2050 pathway. Our intermediate target is to • In our operations, we will increase the use of We care for the climate vulnerable reduce our emissions from listed equities and renewable electricity to run our data centers We support our insurance customers so that they can Find our climate-related financial disclosure corporate bonds by 25 percent by year-end and offices to 100 percent by end of 2023 reduce climate-related risks. The target is to minimize in section 04. 2024 (vs. 2019). Our work is aligned with the and reduce GHG emission per employee by damage, and insure low-carbon developments. 30 percent in 2025 (vs 2019). 1 We are managing towards 1.5°C with low/no overshoot pathways. 2 U.N.-convened Net Zero Asset Owner Alliance. 10

Sustainability Report 2021 01.6 Our sustainability integration approach 01 Introduction Our commitment to tackling Examples include environmental and climate 01.6.2 Our group-wide rules The publicly available Allianz ESG Integration change risks, human rights violations, risks to Framework provides transparency around our 01.1 Message from the CEO environmental, social, and local communities and workforce risks. If they and processes sustainability-related processes and guidelines. 01.2 Company description and strategy governance (ESG, here are not identified and managed effectively, Our approach applies group-wide corporate We published the fourth version of the 01.3 Our sustainability approach sustainability risks can have significant rules and sustainability processes across all Framework in 2021. 01.4 Our social approach referred to as sustainability) repercussions for Allianz and our customers, relevant underwriting, proprietary investment, Our asset management units have set up their 01.5 Our climate approach topics ensures we embed suppliers and invested companies. These span and operations activities. This requires strong own set of processes, rules, and governance on 01.6 Our sustainability legal and reputational risks, supply chain and collaboration between relevant functions sustainability integration in their investment activities. integration approach sustainability everywhere, business disruption risks, quality and operational and business areas. Key processes include the 01.7 2021 Reporting highlights both in our own operations risks and financial risks. internal Allianz Standard for Reputational Risk 02 Measuring and Sustainability factors also present business Management and other corporate rules such as 01.6.3 Embedding sustainability managing sustainability and across our insurance, opportunities such as insuring and investing the Allianz Standards for P&C Underwriting and in insurance, proprietary proprietary investment, and in renewable energy and affordable housing Allianz ESG Functional Rule for Investments. investments and operations 03 Str engthening or supporting the energy transition through Consistent application of sustainability processes our foundation asset management activities. insurance and investments. in insurance and proprietary investment activities is 04 Climate-r elated As a global insurer, investor, and asset manager, By scrutinizing insurance and investments crucial to mitigate risks and capture opportunities financial disclosure understanding and managing sustainability issues projects from a sustainability perspective, arising from sustainability trends. allows us to reduce risks and capture opportunities Allianz extends its understanding of risks and We have put in place the processes outlined in the 05 Our universal principles in all areas of our business. As well as managing seizes potential business opportunities for the table below across our business. risks, sustainability integration directs us to create benefit of shareholders, customers, and other Further details on our sustainability integration sustainable products and services that add value stakeholders. Holistic assessment of risk is approach in insurance, proprietary investments, to society, collaborate with clients and investees to especially relevant to Allianz as an insurance and asset management can be found in section deliver real-world benefits and direct capital flows company that manages and carries risks ranging 02.1 to 02.3 as well as in the Allianz ESG towards sustainable outcomes for all stakeholders. from single events to decades. Integration Framework. 01.6.1 What is sustainability and why it is important? Sustainability integration processes Business areas Details Sustainability (or ESG) risks and opportunities P&C Ins. Investments Investments Organization, refer to the non-financial risks and opportunities (listed) (non-listed) Procurement which can be influenced by and/ or can influence ESG referral and assessment process (including Systematic integration of sustainability risks by conducting Allianz’s business activities and operations. In the sensitive business areas, sensitive countries) case-by-case due diligence of critical transactions. Allianz Group Risk Policy, we define sustainability ESG scoring process (including climate- Systematic integration of sustainability risks through risks as events or conditions which, if they occur, related data) sustainability ratings and climate-related data. could have significant negative impacts on the ESG exclusions process (including coal, oil sands, Exclusion of investment and insurance transactions in assets, profitability, or reputation of Allianz Group controversial weapons, human rights) critical business areas. or one of its companies. ESG engagement and risk dialogues (on Systematic engagement with investee companies and sustainability, climate and human rights topics) clients on sustainability-related matters. ESG in business partner selection (including asset Inclusion of sustainability-related criteria in the selection, managers, reinsurers, vendors, etc.) appointment and monitoring of business partners. 11

Sustainability Report 2021 01.6 Our sustainability integration approach 01 Introduction Reviewing and revising our sustainability ESG referral and assessment process 01.6.4 Regulation as a driver 01.1 Message from the CEO risk management framework Number of assessments by category of sustainability integration 01.2 Company description and strategy We continue to expand and strengthen our We believe regulation is necessary to drive 01.3 Our sustainability approach sustainability risk management approach. A key integration of sustainability considerations 01.4 Our social approach enabling factor is understanding the requirements 1,447 in business activities and we actively engage 01.5 Our climate approach and limitations of our operating entities to in supporting and influencing regulatory 01.6 Our sustainability develop global sustainability processes that can developments in these areas. For example, integration approach be integrated into local processes and systems. 526 we are a member of the E.U.’s Platform on 01.7 2021 Reporting highlights In 2021, we continued our project to further Sustainable Finance and European Financial 02 Measuring and strengthen sustainability risk management by Reporting Advisory Group (EFRAG) Project Task managing sustainability improving the way we identify sustainability- 71 Force on European Sustainability Reporting related risks in transactions (P&C insurance, Standards (PTF-ESRS). We are focused on several 03 Strengthening investment, procurement). While this project was 597 602 workstreams to address new regulatory and our foundation planned for completion in 2021 based on the 1 6 supervisory requirements. 101 58 original scope which included only P&C insurance, 850 65 64 See Regulatory and public affairs 04 Climate-related we have expanded the scope to cover insurance, (section 03.3). financial disclosure investments, procurement, and other business 430 474 areas. We also expanded the project scope to 05 Our universal principles consider human rights in more depth. As a result, we extended the deadline and work will continue 2021 2020 2019 into 2022. Insurance Investments 80.6 % Procurement Other of assessed transactions ESG referral and assessment results were proceeded and % of assessed transactions 14.0 % in 2021 Sustainability were approved subject to certain Proceed mitigation measures or conditions 5.4 14.0 Proceed with 5.4 % mitigation or additional were declined or not pursued (for details 1,447 80.6 conditions see Tables ESG1-3) Do not proceed 12

Sustainability Report 2021 As a next logical step on further integrating our sustainability activities we included a 01.7 2021 Reporting highlights highlights table which follows the International Integrated Reporting Council (IIRC) logic. 1 2 01 Introduction IIRC capital Outputs 2021 Outcomes 01.1 Message from the CEO categories 01.2 Company description and strategy Manufactured € 123.1 bn sustainable investments • In 2021, we reviewed our definition of proprietary sustainable investments to follow the rules set by E.U. Sustainable Finance Disclosure Regulation (SFDR). 01.3 Our sustainability approach (proprietary investments) The volume of sustainable investments decreased slightly if we would have applied the same definition for 2020. 01.4 Our social approach € 203.1 bn PIMCO ESG themed investments • We continue to expand dedicated sustainability products for our third party asset managers AGI and PIMCO. 01.5 Our climate approach • Our sustainable insurance solutions revenues remained fairly stable in 2021. We are currently reviewing the regulatory changes and assessing how we will assess 01.6 Our sustainability € 184.3 bn AGI ESG themed investments and disclose sustainable insurance solutions in the future. integration approach € 1,484.7 mn revenues from 01.7 2021 Reporting highlights sustainable solutions 02 Measuring and Financial € 13.4 bn operating profit • Operating profit jumped 24.6 percent to 13.4 billion euros. managing sustainability € 6.6 bn shareholder net income • Net income attributable to shareholders declined 2.9 percent to 6.6 billion euros as a result of a one-time pre-tax provision of 3.7 billion euros in anticipation of 03 Strengthening € 2.4 bn corporate tax paid settlements with major investors in the AllianzGI U.S. our foundation Structured Alpha funds and in light of current discussions with U.S. governmental authorities, lowering the group’s 2021 net income by 2.8 billion euros. • Corporate tax: Fair, effective and stable tax payments are beneficial for both government and companies. 04 Climate-related Intellectual Allianz Risk Barometer published • The Allianz Risk Barometer is our annual report identifying the top corporate risks for the next 12 months and beyond, based on the insight of more than 2,650 risk financial disclosure ESG Integration Framework published management experts from 89 countries and territories. 05 Our universal principles DJSI: Top rank (93 out of 100 points) • Our ESG Integration Framework allows NGOs, peers, customers, and other stakeholders to get an in-depth overview of the way in which we integrate sustainability- related risk and opportunities management across Allianz. USD 15 bn Brand value • After a drop to 6th rank in 2020 in DJSI we regained our top position in 2021, scoring 93 points out of 100. • Brand value up 17 % to more than USD 15bn (Source: Interbrand Best Global Brands Ranking 2021). Social and 62 mn Emerging Consumers reached • We aim to continue our expansion in Africa, Asia, and Latin America. Main driver for the increase is the inclusion of Indian government-sponsored health insurance relationship 84 % NPS (Customer loyalty) schemes in the reporting scope for the first time. € 28.2 mn Corporate Giving • Business segments with a net promoter score of above market average (incl. loyalty leaders). • In 2021 our Corporate Giving totaled € 28.2 mn. In 2020 our donations were higher due to COVID-19 emergency relief efforts. • Social Impact Fund is our program supporting strategic opportunities to deliver social impact. Human * • The 2021 Allianz Engagement Survey results are our second-best result in the Allianz history. 76 % Employee Engagement Index 78 % IMIX (Inclusive Meritocracy Index) • Our high standards in leadership, performance and corporate culture are reflected in the high rating in the IMIX. 38.6 % Female managers • The share of women has continuously increased since 2019 among managers (by +0.7 % p), executives (top management, by 1.7 % p) and in talent pools (+3.2 % p). 1 An integrated report identifies an organization’s Natural 77 % renewable electricity of operations • +20 %-p 77 % share of renewable electricity, up from 57 % in 2020. Increase vs. 2020 supported by changes in supplied electricity mix and the first time use of key products and services. There might be other outputs, such as by-products 0.9 t CO e per employee carbon footprint offset certificates. and waste (including emissions), that need to be 2 • -32 % Carbon footprint per employee from operations decreased from 1.4 tons CO e in 2020 to 0.9 in 2021. Both years are impacted by COVID-19-related drop, discussed within the business model disclosure of operations 2 depending on their materiality. 18.7 mn t CO e carbon footprint of primarily in business travel. On a normalized basis, emissions decrease from ~2.0 tons/employee in 2020 to ~1.8 tons/employee in 2021, mainly due to an increased 2 Outcomes are the internal and external 2 share of renewable electricity. consequences (positive and negative) for the proprietary investments • Carbon footprint of proprietary investments: -16 % Successful continuation of portfolio decarbonization. Improvement 2021 vs. 2020 supported by ~4–5 %-p from capitals as a result of an organization’s business activities and outputs. COVID-19 shutdowns. Score date: December 2021. 13

Sustainability Report 2021 01 Introduction 02 Measuring and managing sustainability Sustainability in our business activities 02.1 Sustainability in insurance 02.2 Sustainability in proprietary investments 02.3 Sustainability in asset management Sustainability in our organization 02.4 Human resources 02.5 Customer satisfaction 02.6 Environmental management 02 03 Strengthening our foundation 04 Climate-related Measuring financial disclosure 05 Our universal principles and managing sustainability In this section, we are covering material topics, public targets and commitments that are integrated across Allianz. In this year’s report – for the first time – we have combined all material topics for which we have established quantitative targets, KPIs and performance data, as well as the relevant managed approaches into one section. 14

Sustainability Report 2021 01 Introduction 02 Measuring and managing sustainability 02 Sustainability Sustainability in our business activities 02.1 Sustainability in insurance 02.2 Sustainability in proprietary investments 02.3 Sustainability in asset management Sustainability in our organization 02.4 Human resources in our business activities 02.5 Customer satisfaction 02.6 Environmental management 03 Strengthening We are committed to integrating sustainability in all our business Our performance towards our our foundation activities (insurance, proprietary investments, asset management). sustainability-related board targets 04 Climate-related In this part of the ‘Measuring and managing sustainability’ section, financial disclosure we focus on topics which we can quantify and then give an overview Proprietary investment of the key approaches. In addition, this part describes how we portfolio carbon footprint* 05 Our universal principles manage our business to drive forward sustainability. -24.9 % We have set quantitative targets for our Board of Management to work towards reducing the greenhouse gas emissions (GHG) (baseline 2019) of our proprietary investment portfolio by 25 percent by end of 2024. Also for our insurance and asset management activities, sustainability integration continues to be a priority; we are in the process of setting quantitative targets. For all areas, we have a long-standing set of indicators to disclose our sustainability performance across our business activities. The performance of our Board of Management regarding their sustainability targets is on track. For a detailed overview, please see sections 01.3. An overview of all further quantitative and qualitative targets and our performance related to these topics can be found in section 05.1. * Green checkmark indicates that target achievement is on track or target was achieved this year. 15

Sustainability Report 2021 02.1 Sustainability in insurance 01 Introduction Sustainability in insurance performance data 02 Measuring and Table ESG-1 Table ESG-2 managing sustainability ESG referrals and assessments: total numbers per sector ESG referrals and assessments: assessment outcomes Sustainability in our business activities % share of total referrals As of December 31 2021 2020 2019 02.1 Sustainability in insurance Insurance 850 430 474 As of December 31 2021 2020 2019 02.2 Sustainability in Proceed % 80.6 60.5 53.3 proprietary investments Investments 71 65 64 02.3 Sustainability in asset management Procurement 526 101 58 Proceed with mitigation or additional conditions % 14.0 31.8 38.7 Sustainability in our organization Other 0 1 6 Do not proceed % 5.4 7.7 8.0 02.4 Human resources Total 1,447 597 602 02.5 Customer satisfaction 02.6 Environmental management Table ESG-3 03 Strengthening ESG referrals and assessments: sensitive business areas our foundation As of December 31 2021 2020 2019 04 Climate-related Proceed Proceed Do Total Proceed Proceed Do Total Proceed Proceed Do Total financial disclosure with mitigation not proceed with mitigation not proceed with mitigation not proceed 05 Our universal principles Agriculture, Fisheries and Forestry 23 11 1 35 24 15 0 39 22 14 1 37 Animal Testing 1 0 0 1 1 0 0 1 1 0 2 3 Animal Welfare 3 0 1 4 0 0 0 0 0 0 0 0 Betting and Gambling 4 1 0 5 2 1 0 3 3 3 0 6 Clinical Trials 39 5 0 44 16 5 0 21 10 11 0 21 Defense 42 17 7 66 20 16 2 38 26 18 2 46 Human Rights 13 20 13 46 15 14 3 32 6 12 4 22 Hydro-Electric Power 10 12 1 23 10 7 1 18 11 7 3 21 Infrastructure 97 18 17 132 42 20 12 74 47 33 9 89 Mining 26 26 9 61 21 34 12 67 19 63 13 95 Nuclear Energy 8 1 0 9 9 6 0 15 2 3 2 7 Oil and Gas 48 53 13 114 23 41 6 70 24 39 4 67 Sex Industry 1 0 0 1 1 0 0 1 1 0 0 1 1 Procurement Transactions 521 3 1 525 101 0 0 101 58 0 0 58 Other Sustainability and Reputational Issues 331 35 15 381 76 31 10 117 91 30 8 129 Total 1,167 202 78 1,447 361 190 46 597 321 233 48 602 1 Increase of procurement referrals driven by a new set of ESG questions as part of our Vendor Integrity Screening process. 16

Sustainability Report 2021 02.1 Sustainability in insurance 01 Introduction Table ESG-4 Table FIN-1 Revenues from sustainable solutions1 Economic value generated, distributed and retained 02 Measuring and € mn 2 2 managing sustainability As of December 31 2021 2020 2019 Sustainable Insurance Solutions € mn 1,022.0 1,025.2 965.3 As of December 31 2021 2020 Sustainability in our business activities 02.1 Sustainability in insurance Insurance solutions with a sustainability component € mn 417.6 367.6 366.7 Economic Value Generated € mn 122,238.9 100% 119,509.6 100% 02.2 Sustainability in Emerging Consumer Solutions € mn 45.2 56.1 40.7 Revenue from sale of ‘goods’ € mn 77,656.2 63.5 75,714.2 63.4 proprietary investments Total € mn 1,484.7 1,448.9 1,372.7 Revenue from rendering of services € mn 13,998.1 11.5 12,049.1 10.1 02.3 Sustainability in asset management Revenue from financial investments € mn 30,552.1 25.0 31,581.8 26.4 Sustainability in our organization Table ESG-5 3 Other operating income € mn 32.5 0.0 164.5 0.1 02.4 Human resources Number of sustainable solutions by solution category 02.5 Customer satisfaction Economic Value Distributed € mn 104,239.5 85.3 94,989.5 79.5 02.6 Environmental management As of December 31 2021 20202 2019 Sustainable Insurance Solutions 91 105 109 Operating expenses € mn 81,326.6 66.5 74,171.4 62.1 03 Strengthening Insurance solutions with a sustainability component4 41 39 39 thereof: Claims and € mn 54,873.0 44.9 53,793.2 45.0 our foundation insurance benefits Emerging Consumer Solutions 30 26 28 Claims P&C € mn 33,783.8 27.6 33,257.9 27.8 04 Climate-related Sustainable Asset Management Solutions 177 61 52 Claims L&H € mn 21,089.5 17.3 20,535.4 17.2 financial disclosure Total 339 231 228 Wages and other payments to employees € mn 13,339.8 10.9 12,509.3 10.5 05 Our universal principles Table ESG-6 Payments to providers of capital € mn 5,475.3 4.5 5,564.3 4.7 Emerging consumer business thereof: to shareholders € mn 4,705.6 3.8 4,702.3 3.9 thereof: payments to creditors € mn 769.7 0.6 862.0 0.7 As of December 31 2021 2020 2019 Payments to government € mn 3,985.9 3.3 2,608.8 2.2 5 7 Gross Written Premiums (GWP) € mn 510.2 452.2 413.9 thereof: income tax expense € mn 3,659.6 3.0 2,287.2 1.9 thereof from consolidated entities € mn 45.2 56.1 39.66 Community investments € mn 112.9 0.1 135.8 0.1 5 6 thereof from non-consolidated entities € mn 465.0 396.1 374.3 Economic Value Not Yet Distributed € mn 17,295.4 14.1 21,740.6 18.2 No. of in-force insured people 62,221,1105 46,138,372 55,402,075 thereof from consolidated entities 9,721,944 10,077,970 9,971,6376 Change in reserves € mn 13,716.2 11.2 12,975.8 10.9 5 6 Impairments € mn 1,331.0 1.1 5,467.3 4.6 thereof from non-consolidated entities 52,499,166 36,060,402 45,430,438 Change in provisions € mn 2,248.2 1.8 3,297.4 2.8 GWP per customer €/customer 8.20 9.80 7.47 Economic Value Retained € mn 704.0 0.6 2,779.5 2.3 1 Our current data collection process does not allow for a complete tracking of revenue data. Revenues are included subject to data availability. 2 Data was restated due to reclassification of certain products and minor corrections. 3 Our current data collection process does not allow for a complete tracking of the number of sustainable solutions. Number of solutions data is included subject to data availability. 4 Revenue data for insurance solutions with a sustainability component is only included when this component can be clearly separated from other parts of the revenue. 5 Includes Indian government-sponsored health schemes not reported in previous years (GWP € 88mn & 15.5mn insured). 6 Please see note 45 to the Consolidated Financial Statements of Allianz Group Annual Report 2020 (update based on AR 2021). 7 Includes income taxes paid, accrued income taxes and income taxes related incidental benefits/expenses. 17

Sustainability Report 2021 02.1 Sustainability in insurance 01 Introduction 02.1.1 Integrating sustainability In 2021, 850 insurance transactions were assessed Key developments in 2021 We anticipate the risks of a in insurance for sustainability risks, up from 430 transactions In 2021, our experts worked to further strengthen changing climate 02 Measuring and in 2020. our decarbonization approach. Our long-standing The Paris Agreement emphasizes the role of managing sustainability Embedding sustainability considerations This increase is in line with our expectations given coal phase-out approach was strengthened and insurance in managing the impacts of climate Sustainability in our business activities into our insurance business means we a decreasing risk appetite, new internal guidance expanded (see section 02.2.3 for further details). change. Insurance companies need to address 02.1 Sustainability in insurance are better placed to manage risks and on issues such as decarbonization and human We also announced that we will no longer provide climate change risks in both their insurance and 02.2 Sustainability in opportunities to support sustainable rights, and new technical criteria in underwriting. insurance for dedicated oil sands projects and their investment portfolios. These risks can result proprietary investments See Tables ESG-1 to 3 for additional details. new oil sands pipelines, or to companies deriving from developments in weather patterns (physical 02.3 Sustainability in asset management development. We add value through more than 20 percent of their revenue from risks) and the transformation of business models Sustainability in our organization dialogue with stakeholders and aim to Sustainability risks can be dynamic and complex. oil sands. towards net-zero emissions (transition risks). 02.4 Human resources share our expertise on risk mitigation Being responsible for a large underwriting In 2020, we initiated a pilot to enhance our due 02.5 Customer satisfaction portfolio requires significant resources to In parallel, insurers have a societal role to offer 02.6 Environmental management with the insurance sector. continuously screen and assess risks and engage diligence for Director & Officers (D&O) insurance. affordable insurance protection against extreme We are committed to the UNEP-FI Principles clients and brokers in risk dialogues. In 2021, this resulted in the addition of an ESG weather events such as floods, storms, heatwaves 03 Strengthening for Sustainable Insurance and work so that our D&O Risk Score and other significant ESG KPIs and droughts for their clients. With 1.5°C of global our foundation risk exposure is mostly indirect through the risks Further information about the Allianz to our underwriting due diligence for D&O warming being almost unavoidable according to sustainability approach and processes coverages. We have now launched a similar 1 Allianz carries for its insured clients. We embed relating to our insurance business the Intergovernmental Panel on Climate Change 04 Climate-related strong sustainability risk management throughout project for liability insurance. (IPCC), this is becoming a challenge. It is a key financial disclosure our underwriting processes to limit our exposure can be found in the Allianz ESG reason why Allianz is committed to playing its to indirect risks. Our sustainability referral and Integration Framework. 02.1.2 Climate change part in limiting global warming by the end of this 05 Our universal principles assessment process directs us to identify, assess and Adding value through research and decarbonization century to a maximum of 1.5°C. manage risks. The process is part of the risk and engagement Through our insurance business, With extreme weather events becoming more management framework that is applied to all common and intense, we research the actual and Allianz insurance business globally, whether we To maximize our positive influence and impact, we anticipate risks and protect and care future impacts of climate change to provide the are the lead insurer or part of a panel. we share our sustainability expertise with for people vulnerable to climate change. best possible risk advice to society and customers. When our insurance underwriters identify a our clients, brokers and business partners, We also target our insurance solutions For example, the Allianz Climate Change Risk sustainability risk, they refer the case for assessment and develop our own risk management and and expertise to support the transition Study (ACCRiS) provides inhouse climate risk by the Allianz Global Corporate & Specialty (AGCS) underwriting due diligence. to a low-carbon economy. scores and metrics. These hazard, risk and ESG Business Services and/or Global Sustainability We conduct in-depth research to stay ahead financial impact scores help to assess physical at Allianz SE. Our experts conduct in-depth of emerging issues and inform our evolving Our Climate Change Strategy is focused on climate change risk in investment and insurance assessments on a broad range of sustainability approach to risk identification and management. providing insurance solutions that help customers decisions. In 2021, we developed forward-looking risks. Based on the outcome of these assessments, This includes conducting research to understand respond to a changing climate and facilitate the metrics for river flood and tropical cyclone risk 2 for the time periods they decide whether a transaction may proceed the relevance of sustainability factors on claims development of the low-carbon economy with under two climate scenarios with or without conditions. Conditions may include and underwriting profitability. net-zero emissions in 2050 (see section 01.5). 2030 and 2050. In 2022, we aim to provide metrics monitoring the project/client or engaging in a on hail and coastal flood risk. risk dialogue. If severe, systemic or unmitigable sustainability issues are identified, the transaction may be declined. 1 Intergovernmental Panel on Climate Change Sixth Assessment Report (2021). 2 Representative Concentration Pathway (RCP) 4.5 and 8.5. 18

Sustainability Report 2021 02.1 Sustainability in insurance The winner of the fifth annual Allianz Climate Risk The overall project objective is to provide quick In September 2021, the NZIA announced that 01 Introduction Understanding of climate risks The future impact of climate change will depend Research Award for young PhD students working pay-outs from a parametric flood cover to it will collaborate with the Partnership for 02 Measuring and significantly on the political will to address the on innovative approaches to address climate enhance the response capacity of the National Carbon Accounting Financials (PCAF) to develop managing sustainability crisis and the speed at which it can be managed. risks was Dr. Nina Ridder. Her research focuses Disaster Management Organization (NADMO) a global standard to measure and disclose Sustainability in our business activities If emissions are reduced swiftly enough, warming on compound events – events during which two of Ghana in severe flood cases to re-establish greenhouse gas emissions associated with re-/ 02.1 Sustainability in insurance can be limited and the resulting risk might be kept weather or climate-related hazards co-occur – economic activity of low-income communities in insurance portfolios. Such a standard will help 02.2 Sustainability in at an affordable level for the insurance sector in which can have devastating effects. urban areas, starting with Greater Accra Region. re-/insurers obtain a deeper understanding of proprietary investments developed insurance markets. Find out more about the Allianz Climate Risk The project builds on the lessons learnt from the climate risks in the underwriting portfolios, 02.3 Sustainability in asset management Research Award online here. Allianz/GIZ Public-Private Partnership (PPP) help them to decarbonize their portfolios through Sustainability in our organization If climate-related risks like extreme weather project (2018–2021) in Ghana. target setting, scenario analysis, etc., and create 02.4 Human resources events become high, the public sector and the Caring for the climate vulnerable comparability for stakeholders. 02.5 Customer satisfaction insured may need to take more risk. This could The U.N.-convened Net-Zero 1 be in the form of investment in higher protection Closing the insurance gap Insurance Alliance See the full details of the collaboration here. 02.6 Environmental management standards such as flood defenses or higher risk retentions. The warmer it gets, the more likely We actively support the InsuResilience Global In July 2021, Allianz joined forces with seven 03 Strengthening challenges for insurability arise. This could burden Partnership (IGP)’s goal to provide climate risk other leading insurers to form the U.N.-convened our foundation clients and societies, especially in highly exposed insurance for up to 500 million people in the Net-Zero Insurance Alliance (NZIA). The first of 04 Climate-related regions such as low-lying coastal areas. most vulnerable developing countries by 2025. its kind net-zero network for the underwriting financial disclosure To promote this goal, the German Federal Ministry business was launched alongside the G20 summit, Managing this challenge requires constant for Economic Cooperation and Development underlining the importance of cooperation between 05 Our universal principles and open dialogue to foster understanding of (BMZ) set up the InsuResilience Solutions Fund leading governments and companies to mitigate the issues and better resilience to climate risks. (ISF) to fund product and solution development. the risks of climate change. Cross-industry and In November 2021, we held the second annual Delphine Traoré Maidou, Allianz Africa’s Chief international partnerships are seen as important Allianz Understanding Climate Risk Stakeholder Executive Officer, represents Allianz as one of two levers for tackling global challenges. Dialogue and Award. Stakeholders from Allianz private sector representatives on the IGP’s High- Members will set for themselves measurable and partner institutions came together virtually Level Consultative Group. and science-based targets. The first targets are to focus on building an understanding of climate In the context of the Tripartite Agreement expected to be released by July 2023 latest for the impacts, identifying threats and opportunities, between BMZ, the U.N. Development Program target year 2030. After 2030, they will be updated and charting a common path for action through and the Insurance Development Forum (IDF), every five years up to 2050. Once the first targets dialogue between academics, public sector Allianz and Swiss Re are co-leading a project are set, members are required to report on their and industry. to develop a sovereign disaster risk insurance progress on an annual basis. Having begun in solution for Ghana with support by the local 2021 and continuing throughout 2022, the group UNDP office. For this project we applied for will develop the respective methodologies and co-funding from ISF in 2021. At the end of the define the first intermediate target in the NZIA year, we received a conditional grant approval. target-setting protocol, which is expected to be In 2022, we will formally launch the project. launched in January 2023. 1 https://www.unepfi.org/psi/wp-content/uploads/2021/09/PCAF-NZIA-announcement.pdf 19

Sustainability Report 2021 02.1 Sustainability in insurance 01 Introduction 02.1.3 Natural disasters Read more about how we are managing Assessing natural catastrophe risk We also continue to enhance our geoinformation Natural disasters – including the risks of a changing climate in section Experts at Allianz Reinsurance (Allianz system (GIS) tools. This enables us to deepen our 02 Measuring and 02.1.2 under the heading ‘Caring for the Re) include meteorologists, hydrologists, understanding based on the exact geolocation managing sustainability earthquakes, fires, floods and storms – climate vulnerable’. geophysicists, geographers and mathematicians. of a customer’s house or a company’s production Sustainability in our business activities can devastate communities and recovery Together, they model around 50 natural site. For floods, a peril which is expected to be 02.1 Sustainability in insurance can take years. Allianz has expertise in Increasing resilience for our catastrophe (Nat Cat) Nat Cat scenarios for the impacted most by climate change, the difference 02.2 Sustainability in insuring both individuals and businesses customers and society Group using data captured according to best- of a few meters can have a big impact on the risk proprietary investments The primary role of the insurance sector is to in-class standards. Applying their risk expertise profile of a location. 02.3 Sustainability in asset management against these perils and risks. We are absorb strong financial impacts that would to the Allianz portfolio with its insured values, The latest developments add vital capabilities to Sustainability in our organization constantly improving our tools to identify otherwise overwhelm the capabilities of private our experts assess overall exposure to Nat Cat our applications, such as enabling underwriters 02.4 Human resources and manage risks and support our and commercial clients. In doing so, we provide risks. Vendor and in-house applications provide a to access detailed risk scores by individual Nat 02.5 Customer satisfaction customers when the worst happens. stability to societies and economies by ensuring comprehensive risk profile of any defined location Cat peril for every location globally. We have also 02.6 Environmental management businesses can be re-started quickly and people which can be used as the basis for effective risk generated a method to describe and evaluate Socio-economic shifts, global interdependencies can re-build their homes following a catastrophe. management measures. This is also used to climate change-driven adjustments in natural 03 Strengthening and climate change all play a role in the We also advise clients on risk preventive develop risk-based pricing for Nat Cat perils and hazard and flood risk. Our next step is to assess our foundation changing extent of weather-related insurance measures to minimize their risks – both to to provide portfolio managers with insight into risks from other perils and integrate these into our losses. According to the World Economic Forum’s reduce potential financial impacts and to keep local and regional accumulation of risks. decision-making processes (see section 4.5.2). 04 Climate-related 1, two of the top financial disclosure (WEF) Global Risk Report 2021 businesses operational. Allianz Re is constantly improving Cat Risk five global risks are linked to environmental To scale our positive impact, we research and Management at Group and local levels. In 2021, 05 Our universal principles disasters and extreme weather. In the short-term analyze the risk situation for all natural perils we made substantial progress in establishing the (0–2 years), extreme weather events rank third in all countries where we operate. We offer Catastrophe Target Architecture. This includes in the list of critical risks threatening the world. this knowledge to policymakers to support the Allianz Modelling Platform, which will host Climate action failure is identified as the most sustainable development and shape resilience all internally developed Nat Cat risk models. impactful and second most likely long-term risk. measures. Climate change is a critical factor we Through a standardized framework and process The losses associated with natural disasters must account for as an insurer and by sharing automation, the platform enables us to leverage 2 have increased 15-fold in recent decades, our expertise to support resilience. For example, our catastrophe claims history and our view of implying high risk and volatility for the insurance we develop projects under the umbrella of risk, for example to incorporate an estimation of 3 industry. The Allianz Risk Barometer 2021 InsuResilience on behalf of the Insurance potential climate change impacts. places natural catastrophes sixth in its ranking Development Forum (see section 02.1.2). of global business risks. Economic losses were Find out more in section 02.1.2 under the estimated to total around $80bn of global heading ‘Caring for the climate vulnerable’. insured losses in 2020, up more than 40 percent from 2019. 65 percent of losses caused by natural catastrophes over the past decade were 4 uninsured as the protection gap widened. 1 https://www3.weforum.org/docs/WEF_The_Global_Risks_Report_2021.pdf 2 Source: Swiss Re Sigma Explorer. 3 https://www.agcs.allianz.com/content/dam/onemarketing/agcs/agcs/reports/Allianz-Risk-Barometer-2021.pdf 4 Source: sigma 1/2021, Swiss Re Institute. 20

Sustainability Report 2021 02.1 Sustainability in insurance 01 Introduction 02.1.4 Emerging consumers Increasing the resilience of the most vulnerable channels are strategies to reach and service this Examples of our core emerging consumer against the risks they face is one way in which target segment. Products and processes must solutions include Credit Life Insurance, 02 Measuring and Our purpose – ‘We secure your future’ – we create positive social impact through our be simple and relatable and distribution models Funeral Insurance, Health insurance and managing sustainability includes providing emerging consumers core business. need to be cost-efficient to maximize client value. Crop insurance. Sustainability in our business activities with affordable and effective insurance Reaching underinsured customers Digitalization is unleashing opportunities, In 2021, we insured 62.2 million people2 in 02.1 Sustainability in insurance solutions. Allianz is committed to closing The emerging consumers market, defined as with affordable insurance and health services the emerging consumers segment (2020: 46.1 mn 02.2 Sustainability in the protection gap and providing access lower-income populations in Africa, Asia and increasingly delivered via mobile technology. insured). Revenues were at € 510.2 million proprietary investments This trend accelerated during the COVID-19 (2020: € 452.2 mn) – equivalent to around € 8.2 02.3 Sustainability in asset management to affordable insurance solutions to Latin America, consists of more than half of the 2 for this market. world’s population. Emerging consumers are pandemic. To leverage these opportunities, we are in annual revenue per insured Sustainability in our organization support lower income populations. expanding our partnerships with companies that Allianz consolidated entities served 9.7 million 02.4 Human resources usually first-time buyers of formal insurance provide digital technologies and go-to-market insured (2020: 10 mn) and contributed revenues 02.5 Customer satisfaction 1 products and often do not have a bank account. approaches to complement our core capabilities, of € 45.2 million. Additional data about our People insured in mn Developing non-traditional offerings, innovative 02.6 Environmental management distribution models and accessible payment tailored to the requirements of the emerging emerging consumer business can be found in consumers segment. Table ESG-6. 03 Strengthening 2 62.2 our foundation 0.01 55.4 Building confidence in tomorrow… 1.2 04 Climate-related 0.3 financial disclosure 46.1 1.7 …by building the next generation of healthcare and insurance solutions 0.3 In summer 2019, we teamed up with emerging ensure continuous customer engagement after customers indicating they can better manage 05 Our universal principles 1.5 market digital healthcare and insurance leader a human-touch sale. Core elements developed their health thanks to the offering. 61.0 BIMA and German development agency GIZ to within the project include 1) a customer-centric app This is evidence that it is possible to sustainably grow affordable digital healthcare subscription for sales agents, 2) customer experience centers, run direct-to-consumer healthcare subscription plans in a sustainable way. Our shared aim 3) digital onboarding journeys, 4) digital health and microinsurance models, which is a huge step 43.6 53.4 was to reach one hundred thousand additional programs providing advice on health needs. towards effectively addressing the protection customers in Ghana with new offerings supported Despite the COVID-19 pandemic, the number of needs of many undeserved population groups in by a new type of hybrid retail delivery model. insured grew from 80k in 2019 to 184k in 2021, emerging markets. A key endeavor was to smartly combine face-to- with 87 percent of active customers subscribing Watch the video here and read more in the face interaction with digital elements to to receive health programs and 40+ percent of GIZ report here. 2021 2020 2019 New customer journey developed within the public-private partnership Asia Africa Latin America Experience centers Agent app Digital onboarding Teledoctor Hospitalization Quick Personalized Healthy and 1 The number of insured people and revenue data includes figures from non- and health programs services support claims payout digital communication insured people consolidated entities outside the reporting boundaries (GRI 102-45). 2 Due to change in scope, additional 15.5mn insured reported from Indian government-sponsored health schemes. 21

Sustainability Report 2021 02.1 Sustainability in insurance 01 Introduction 02.1.5 Sustainable solutions We differentiate between three categories of sustainable solutions when we define and develop sustainable solutions: Through our sustainable insurance solutions, Sustainable solutions categories 02 Measuring and we enable customers to be more sustainable and Sustainable Sustainable insurance solutions are products and services that directly Examples include: managing sustainability create positive impacts for the environment and insurance address environmental and/or social risks and opportunities. • Insurance coverage for electric vehicles and development of batteries; Sustainability in our business activities society. We promote a more equitable society solutions 02.1 Sustainability in insurance through access to financial products and services • Life and health insurance products targeted at people with disabilities 02.2 Sustainability in for people on lower incomes. As part of our and designed to offer the necessary benefits. proprietary investments sustainable solutions approach, we also track Insurance solutions The inclusion of sustainability components in standard products is Examples include: 02.3 Sustainability in asset management such solutions from our asset managers. To learn with a sustainability becoming increasingly common. In 2018, we decided to differentiate • Add-ons to standard home insurance products offering environmental- Sustainability in our organization more about their approach (see section 02.3). component standard insurance products with additional environmental and/or friendly upgrades; 02.4 Human resources social benefits. • Premium insurance discount for electric vehicles. 02.5 Customer satisfaction Allianz local entities and global lines work Emerging Emerging consumer solutions include affordable microinsurance and Examples include: 02.6 Environmental management continuously to innovate and develop new consumer other insurance products that cater to customers entering financial • Life and health insurance products at affordable premiums; and existing sustainable products and services solutions services markets for the first time. • Third-party liability motorcycle cover at affordable premiums. 03 Strengthening for customers: our foundation • We are a partner in the transition to a low- carbon economy, delivering products and In 2021, we generated revenues totaling 1 04 Climate-related 1 3 Sustainable solutions Number of sustainable solutions services with a positive environmental or € 1,484.7 million from 162 sustainable solutions financial disclosure climate-related impact (see section 01.5). (2020: € 1,448.9 mn) through our Sustainable Revenues by sustainable solution category by solution category3 Solutions program. € mn 05 Our universal principles • Our insurance, risk management solutions They include: 1,484.7 339 and advice enable individuals, companies and 45.2 1,448.9 1,372.7 governments to implement renewable energy 56.1 40.7 projects and manage climate-related risks 91 (see section 02.1.2). 417.6 367.6 Sustainable insurance solutions 366.7 177 231 228 30 61 52 3 28 Emerging consumer solutions 30 26 1,022.0 1,025.2 965.3 39 39 41 41 Insurance solutions with a 91 105 109 sustainability component 4 4 4 2021 2020 2019 2021 2020 2019 Sustainable insurance solutions Emerging consumer solutions Sustainable Insurance Solutions Sustainable Insurance Solutions 1 Our current data collection process does not allow for a complete tracking of revenue data. Revenues are included subject to data availability. 2 2 Revenue data for insurance solutions with a sustainability component is only included when this component can be clearly separated from other parts of the revenue. Insurance solutions with a sustainability component Sustainable asset management solutions Insurance solutions with a Insurance solutions with a 3 Our current data collection process does not allow for a complete tracking of the number of sustainable solutions. Number of solutions data is included subject to data availability. sustainability component sustainability component 4 Data was restated due to reclassification of certain products and minor corrections. Emerging Consumer Solutions 22 Emerging Consumer Solutions Sustainable Asset Management Solutions

Sustainability Report 2021 02.1 Sustainability in insurance 01 Introduction Sustainable solutions evaluation Social criteria What do we mean by sustainable solutions? In order to be classified as a sustainable solution, 4. Facilitates activities to tackle social challenges 02 Measuring and a product or service must fulfil at least one of six and issues faced by socially disadvantaged Examples of Allianz products with an environmental or social added value managing sustainability environmental and social criteria, described in groups (e.g. insurance tailored to social value- Sustainability in our business activities further detail in section 03.11.1 of the Allianz ESG adding products/services that would otherwise 02.1 Sustainability in insurance Integration Framework. For products categorized not be insured). 02.2 Sustainability in as sustainable under this definition, we track and 5. Specifically tailored solutions for socially Insurance Sustainable proprietary investments publish key metrics such as revenue. disadvantaged groups (e.g. products aimed Sustainable solutions with asset Emerging 02.3 Sustainability in asset management As sustainability classification and product at reducing the risk of underserved groups insurance a sustainability management consumers Sustainability in our organization labeling regulation is increasing in many markets, by providing otherwise unavailable access solutions component solutions solutions 02.4 Human resources we have kicked-off projects to review our to finance). 02.5 Customer satisfaction definition in light of evolving regulation. This may 02.6 Environmental management lead to changes in our future disclosures. 6. Raises awareness to prevent and mitigate challenges faced by socially disadvantaged 03 Strengthening 1 Environmental criteria groups (e.g. products that include cause- our foundation related marketing or support schemes 1. Supports development of sustainable managing weather-related risks). 04 Climate-related technology and markets such as renewable financial disclosure energy, environmental goods and services, and/or green infrastructure. 05 Our universal principles 2. Conserves natural resources or biodiversity Agricultural Environmental Energy efficiency or helps to mitigate against climate change solutions liability solutions solutions (e.g. solutions that encourage or reward Crop insurance Pollution liability Green home energy environmentally responsible behavior). Forest insurance Impairment liability saving pack 3. Protects against environmental risks and Water pollution liability Energy performance supports adaptation to climate change services/certificate impacts (e.g. insurance or incentives to manage weather-related risks). Mobility Renewable solutions energy solutions Electric car insurance Photovoltaic insurance Bonus drive app Wind turbine insurance Electric bike insurance Home-based renewable energy insurance 1 Our emerging consumer solutions have reached over 9.7 million1 (2020: 10.1 mn) people living on low incomes in Asia, Africa and Latin America with affordable microinsurance and micro-savings solutions (see section 02.1.4). Socially disadvantaged groups are defined as populations that are excluded in their local society for reasons that may be tied to age, sex, disability, race, ethnicity, origin, religion, economic or other status. 23

Sustainability Report 2021 02.2 Sustainability in proprietary investments 01 Introduction Sustainability in proprietary investments performance data Table ESG-9 This section contains data related to the sustainability performance of Allianz Group. Sustainability engagement: overview 02 Measuring and Data in this section is part of the Managing Sustainability, Sustainable Insurer and Responsible Investor Chapters. 2021 2020 2019 managing sustainability Sustainability in our business activities Table ESG-7 Number of active engagements 61 68 49 02.1 Sustainability in insurance Proprietary sustainable investments Engagement outcomes 02.2 Sustainability in Proprietary Investments € bn Engagement closed successfully 21 3 4 proprietary investments Engagement closed with restrictions 2 8 1 02.3 Sustainability in asset management 1 2 As of December 31 2021 2020 2019 Engagement on-going 38 57 44 Sustainability in our organization 3 3 3 02.4 Human resources Global Portfolio ESG screened € bn 849.2 835.0 795.0 Table ESG-10 02.5 Customer satisfaction Sustainable investments € bn 123.1 127.0 n/a Sustainability engagement: region 02.6 Environmental management Thereof environmental objectives € bn 109.9 115.6 n/a Thereof social objectives € bn 12.0 10.8 n/a As of December 31 2021 2020 2019 03 Strengthening Thereof environmental and social objectives € bn 1.1 0.5 n/a Europe 15 17 18 our foundation Asset class breakdown Asia Pacific 22 25 12 04 Climate-related Thereof sustainable sovereigns € bn 84.1 92.7 n/a North America 17 20 15 financial disclosure Thereof sustainable corporates and others € bn 25.5 21.9 n/a Emerging Markets 7 6 4 Thereof renewables € bn 7.0 6.9 n/a 05 Our universal principles Thereof green buildings € bn 6.4 5.6 n/a Table ESG-11 Sustainability engagement: sector Table ESG-8 Divestment from coal-based business models As of December 31 2021 Proprietary Investments € mn Oil, Gas and Energy 34 As of December 31 2021 2020 2019 Metals and Mining 7 Cumulative divestment since November 2015 Steel and Cement 7 Fixed income investments to run-off or € mn 5,983.0 5,983.0 5,942.7 Chemicals 3 already disposed Construction and Engineering 5 Listed equities divested € mn 347.5 347.5 340.5 Other 5 Additional divestments Table ESG-12 4 5 Additional fixed income investments to run-off € mn 0.0 40.3 236.0 Sustainability engagement: topics 4 Additional listed equities divested € mn 0.0 7.0 14.0 As of December 31 2021 CO2 Emissions and Management 48 Health, Safety and Human Rights 17 Toxic Emissions and Waste 6 1 KPIs were not part of the audit engagement. Product Safety 2 2 Definition was newly introduced in financial year 2021, no comparison figures for 2019 disclosed. Biodiversity and Land Use 4 3 Based on economic view. Other 3 4 Given the extensive Freeze of positions that could breach new ambitious thresholds for coal based business models coming into effect in 2023, no additional divestments 24 are reported for 2021. 5 Multiple topics per engagement possible.

Sustainability Report 2021 02.2 Sustainability in proprietary investments 01 Introduction 02.2.1 Integrating sustainability Due to a change in the timings, the PRI results for in proprietary investments Our sustainability integration approach as an asset owner 2021 reporting are due in June 2022. Please see 02 Measuring and This is a simplified visualization of our sustainability integration approach across our proprietary investment our latest PRI assessment results from 2020 in the managing sustainability Sustainability integration and portfolio and asset classes (illustration not to scale). Allianz Sustainability Report 2020. Sustainability in our business activities engagement Our latest and past PRI Transparency 02.1 Sustainability in insurance Sustainability integration is fundamental to our € 212 bn Reports can be found on our profile on the 02.2 Sustainability in Non-listed investments PRI website. proprietary investments investment processes to ensure we consider risks 3 in 02.3 Sustainability in asset management and opportunities that extend beyond traditional € 12 bn We have invested more than € 849 billion Sustainability in our organization investment considerations. Integration of Sstainable a wide range of asset classes (2020: € 835 bn). sustainability across our proprietary investments is investments We systematically integrate sustainability 02.4 Human resources 2 considerations across our entire investment 02.5 Customer satisfaction steered by Allianz Investment Management (AIM) globally across all portfolios, regions and asset portfolio2 and enhance and deepen 02.6 Environmental management our approach, which is comprised of the classes. AIM is the main group-wide investment 03 Strengthening management function for proprietary assets. following elements: our foundation It works closely with Global Sustainability and Global AZ Portfolio € 11 bn 1. Asset manager selection, appointment with our internal asset managers, PIMCO and 89 ­nvestments €it‚ and monitoring 04 Climate-related Allianz Global Investors (AllianzGI), to develop 1  Environmental financial disclosure investment-related approaches such as € 849 bn obƒectives As an asset owner committed to the PRI and a the coal phase-out plan and sustainable ESG Screened founding member of the U.N.-convened Net- 05 Our universal principles investment strategies. Zero Asset Owner Alliance, our position on We are committed to the Principles for Responsible sustainability and our climate ambitions are clear; it is critical for the insurance industry to support Investment (PRI) and are part of a U.N.-supported 1  real world decarbonization in line with 1.5°C. international network of investors working together 1 € 12 bn to promote the incorporation of sustainability into  ­nvestments €it‚ Our portfolio goals cannot be achieved without Social obƒectives the close collaboration and support of asset investment decision-making. The PRI guide our € 1 bn managers. We select and appoint asset managers approach to responsible investment and drive ­nvestments €it‚ that align their activities with our long-term continuous improvement across our businesses. E„S obƒectives interest in limiting climate change. To support In addition to the disclosures contained in this this, we have defined minimum expectations and report, we report annually to the PRI as an € 6 bn asset owner.1 isted investments systematic engagement and monitoring practices for asset managers. 1 Allianz SE and Allianz Investment Management SE jointly prepare Allianz’s disclosure to the PRI as an asset owner, while AllianzGI and PIMCO each prepare a PRI Report as asset managers. 2 Sustainability integration processes and coverage vary by asset class and between the type of portfolio and mandate. Minimum standards for sustainability integration are in place for covering all investments through the Allianz sustainability Functional Rule for Investments. 3 Figures based on economic view. Compared to accounting view it reflects a volume increase due to switch from book to market values and changed asset scope (e.g. including For Valuation Only (FVO), trading and real estate own-use). 25

Sustainability Report 2021 02.2 Sustainability in proprietary investments 01 Introduction We require all asset managers investing on our process. We have published guidelines for ESG leading to a more holistic steering of our portfolio Our ESG scoring and engagement behalf to integrate sustainability considerations sensitive business areas (see the Allianz ESG and targeted management of sustainability risks 02 Measuring and into their investment and stewardship processes Integration Framework sections 03.3 and 03.4). and opportunities. approach systematically identifies and managing sustainability for both public and non-listed assets (see Table ESG screening is mandatory for all transactions We have set a clear sustainability performance manages risks in our listed proprietary Sustainability in our business activities ESG-14). Asset managers must meet the minimum within these areas. Initial ESG screening is carried threshold below which investments are deemed investment portfolio 02.1 Sustainability in insurance obligation of being a PRI signatory or having out by responsible investment professionals within ‘ESG critical’. The list of issuers in our portfolio 02.2 Sustainability in their own qualified sustainability, responsible the asset management unit. that score below the threshold is monitored proprietary investments investment, and/or ESG policy. More than 99 Detection of a sustainability risk triggers a referral by the AIM ESG team. An asset manager with Setting the 02.3 Sustainability in asset management percent of our assets are managed by asset process which leads to a detailed assessment investments on this list must ‘comply-or-explain’ sustainability managers that meet this minimum requirement. threshold Sustainability in our organization of the potential risk by Global Sustainability – meaning either reallocate to another issuer 02.4 Human resources AIM systematically reviews and evaluates the and the AIM ESG team. Based on the outcome or explain and provide reasons for holding these Long-term Applying 02.5 Customer satisfaction sustainability approaches of external asset of this assessment, a decision is made whether issuers. The reasoning and approach taken by the sustainability sustainability 02.6 Environmental management managers, including their climate change-related to proceed with a transaction, to proceed asset manager is discussed and assessed during performance threshold to strategies and decarbonization approach. and require mitigation and management of regular sustainability deep-dive meetings with asset improvements portfolio 03 Strengthening Engagement dialogues focus on governance sustainability risks, or to decline a transaction on managers. In cases where the reasoning provided is our foundation structures to ensure clear responsibilities for ESG grounds. From time to time, assessments may not sufficient to address the sustainability concerns, 04 Climate-related overseeing sustainability matters, systematic require additional discussion between the asset the AIM ESG team will ask for an escalation financial disclosure monitoring approaches for sustainability risks and manager, Global Sustainability, the AIM ESG team, approach to be applied to the issuer or will consider opportunities, stewardship activities to ensure Group Communications or Group Risk to better excluding the issuer from our investable universe. Systematic Operationalizing climate ambitions are aligned with our interests, understand the nuances of the transaction and engagement the scoring 05 Our universal principles and engagement approaches to improve effectively assess the sustainability-related risks. 4. Active engagement sustainability practices in investee companies. In 2021, 71 investment transactions were assessed The role of engagement as an effective and At the sourcing stage, we require all asset (2020: 65) (see Tables ESG-1 to 3). meaningful tool to address sustainability concerns managers in the public equity asset class to meet in investment portfolios has garnered widespread the expectations of the U.N. Net-Zero Asset Owner 3. Systematic integration of sustainability acceptance among the investment community. We continue to use our sustainability engagement 1 When we factors – ESG scoring Engagement is a cornerstone of active ownership program as an established, consistent way Alliance voting expectations document. to address sustainability issues and support engage with asset managers that are found to Our sustainability scoring and engagement as set out by our PRI commitment and it is the lag in one area of their approach but meet our approach systematically identifies and manages most direct way to represent our interests to sustainable programs among the companies overall expectations, we set expectations for risks in our listed proprietary investment portfolio. companies in our portfolios. in which we invest. It is also an effective way to improvement and we monitor their progress. We apply an ESG scoring process to all listed assets For Allianz, engaging on sustainability topics leverage the diversity of employees from business This is an important step towards our goal to including sovereign bonds, corporate bonds and with our portfolio companies has become an functions and geographies to participate in have a positive real-world impact and proactively public equity. The scoring process assesses the expectation of our customers and stakeholders. the sustainability efforts of Allianz globally. address climate change. sustainability performance of individual issuers It also makes clear business sense. When the Engagements involve the AIM ESG team who across 35 different key issues (e.g. carbon emissions, companies we invest in emphasize creating value represent Allianz’s broad interests and colleagues 2. Systematic integration of sustainability from the Allianz entity, which is close to the factors – sustainability referral and toxic emissions and waste, labor management, for all stakeholders, they are better positioned to business and responsible for developing our assessment process business ethics, etc.) using sustainability data generate sustainable, long-term business success expectations and objectives and representing For non-listed investments such as real estate, provided by external data provider, MSCI ESG and to deliver better results for our customers, them with the company’s management. infrastructure and private equity, we address Research. This information is used to consider whose premiums we invest. Our 2021 progress is described below under sustainability risks through a detailed referral sustainability criteria in investment selection, ‘Bilateral engagements’. 1 https://www.unepfi.org/wordpress/wp-content/uploads/2021/04/16-Elevating-Climate-Diligence-2.pdf 26

Sustainability Report 2021 02.2 Sustainability in proprietary investments 01 Introduction Our engagement community is evolving as Questions, requests and expectations related In 2021, we opened or continued direct engagement 5. Active ownership the need to magnify real-world impact on to identified sustainability risks or opportunities discussions with 61 investee companies, based on Voting rights are exercised by AllianzGI on the 02 Measuring and systemic issues such as climate change places are submitted to the company for a written reply. low ESG scoring. 21 of these engagements were Allianz Group’s behalf. Details on the AllianzGI’s managing sustainability new emphasis on investor-led collaborations. Based on the company’s response and backed-up considered successful and were closed, two were voting policy and voting records can be We have increased our collaborative engagement by official company documents, the engagement closed without success and the remaining 1 Sustainability in our business activities to amplify the positive impact of our efforts. team may conduct further engagement activities 38 are ongoing or continue to be monitored. found online. 02.1 Sustainability in insurance Progress in this area is also described below such as clarifying open points, requesting A comparison versus the previous year can be You can find Proxy Voting Records on the 02.2 Sustainability in under ‘Collaborative and climate engagements’. additional disclosures and conducting in-person found in Table ESG-9. AllianzGI ESG web page. proprietary investments 02.3 Sustainability in asset management Bilateral engagements (virtual) meetings with management. We request You can read more about this in our Asset Further information on AllianzGI’s proxy Sustainability in our organization that any commitments the company makes management section 02.3. voting activities can be found in section 02.3. 02.4 Human resources We would not contribute to driving positive change to address the sustainability issues raised are 02.5 Customer satisfaction if we automatically withdrew our investments when integrated into their annual reporting or other Collaborative and climate engagements 6. Excluding certain sectors, companies 02.6 Environmental management issues arose rather than engaging in a dialogue to published materials approved by management. and sovereigns address them. That is why proactive engagement is This level of transparency is an important Collaborative engagements can take the form of Our exclusion approach covers multiple aspects 03 Strengthening integral to our sustainability strategy. step to formalize commitments and hold the multiple investors addressing a single company with exclusion lists updated annually based our foundation company accountable. or addressing multiple companies and their on data from external service providers and The AIM Sustainability engagement team Each engagement is monitored to track value chain in a single sector at the same time. inhouse research. 04 Climate-related leads in-depth research using information from responsiveness of the company and progress Collaboration consolidates the efforts for the financial disclosure MSCI ESG Research, other sustainability data parties involved, allowing for more efficient and 1. Exclusion and restriction of certain sectors, and intelligence providers and the respective against identified sustainability issues. If the solution-oriented discussions at a greater level of such as companies producing or associated company shows significant action to improve 2 05 Our universal principles corporate disclosures or publications of each detail. In 2021, we continued to take an active role with controversial weapons and companies company. Wherever possible, we involve Allianz their sustainability risk management and/ in the Climate Action 100+ initiative by co-leading involved in coal and oil sand-based businesses. colleagues that are based in the same country or to solve and prevent further sustainability engagements (see section 02.2.3). 2. Restriction of investments in sovereign or region as the company we are addressing to issues, the engagement is closed as successful. bonds from countries associated with severe solidify our global and collaborative approach. Should a company’s answers continue to prove human rights violations and significant issues insufficient, show no willingness to improve managing sustainability concerns. sustainability performance, or fail to respond to our engagement communications, our team 3. Exclusion and restriction of issuers as a result of recommends the restriction of all investments the scoring and engagement process. in the company. This recommendation is received and reviewed by the Chairperson of the Group Sustainability Board who subsequently approves the restriction of the company from all proprietary portfolios. 1 Please note that this reporting covers Allianz’s proprietary insurance assets as well as assets from third-party clients on whose behalf AllianzGI exercises voting rights. 2 Weapons that fall under the scope of the following international conventions: Ottawa Convention (anti-personnel landmines); Convention on Cluster Munitions (cluster ammunition/bombs); Biological and Toxin Weapons Convention (biological weapons); and Chemical Weapons Convention (chemical weapons). 27

Sustainability Report 2021 02.2 Sustainability in proprietary investments 01 Introduction 02.2.2 Sustainable investments that such investments do not significantly harm any of review our assessment approach and data Sustainable investments Our strategy for sustainable investments those objectives and that good governance practices sources to develop a best-in-class sustainable Investments by asset class 02 Measuring and are respected. investments framework. € bn managing sustainability provides capital for financing the transition Under our revised definition, all investments Sustainable investments asset classes: Sustainability in our business activities to a low-carbon economy. We actively labeled as sustainable have to comply with all of 123.1 127.1 02.1 Sustainability in insurance pursue investment opportunities that the following three criteria: • Sustainable corporates and other (including 6.4 5.6 02.2 Sustainability in support solutions to environmental and 1. Positive contribution to an environmental and/ Green, Social and Sustainability Bonds) 7.0 6.9 proprietary investments societal challenges, aligned with the U.N. or social objective; • Sustainable sovereigns (including Green, 21.9 02.3 Sustainability in asset management Social and Sustainability Bonds) 25.5 Sustainability in our organization Sustainable Development Goals (SDGs), 2. Do no significant harm; and 02.4 Human resources and facilitate the timely transition to a 3. Follow good governance practices. • Renewables 02.5 Customer satisfaction net-zero world. With respect to the three criteria, we have • Green buildings 02.6 Environmental management developed an assessment approach to identify In 2021, we reviewed our definition of sustainable sustainable investments across a range of asset 03 Strengthening investments to follow the rules set by E.U. Sustainable classes. Our assessment is data-driven and based 84.1 92.7 our foundation Finance Disclosure Regulation (SFDR) Article 2(17). These define sustainable investments as on best available data from internationally 04 Climate-related investments in economic activities that contribute recognized data aggregators and our own financial disclosure to environmental and/or social objectives provided judgement, where applicable. We will periodically 05 Our universal principles Sustainable investments assessment approach: 2021 20202 Criteria Corporates Sovereigns Renewables Green buildings Sustainable sovereigns 1. Meet positive Percentage of revenues from identified Sovereigns that have net-zero Renewables are labelled as Buildings in compliance with Sustainable corporates and others environmental and/ positive environmental and/or social and/or climate neutral targets sustainable by default internal green label thresholds Renewables or social objective activities are labelled as sustainable are reviewed extensively are labeled as sustainable (target ambitions, ESG scores Green buildings etc.) and subsequently deemed as sustainable At the end of 2021, our sustainable investments 2. Do no Principle Adverse Impact Indicators (PAII) PAII screening, as set out by Internal sustainability due diligence PAII screening, as set out by EU totaled € 123.1 and were comprised of: significant harm screening, as set out by EU Sustainable EU SFDR, on a best effort process on a best effort, basis, SFDR, on a best effort basis • Sustainable investments contributing to Finance Disclosure Regulation (SFDR), basis, and exclusion of low using for example ESG sensitive environmental objectives € 109.9 bn on a best effort basis, and exclusion of ESG scoring sovereigns business guidelines, details of companies deriving any percentage of which can be found in Allianz ESG • Sustainable investments contributing to social revenues from non-sustainable business Integration Framework objectives € 12.0 bn 1 activities and/or with low ESG scoring • Sustainable investments contributing to 3. Good Assess for governance and labor Assess for human rights and Internal sustainability due Internal compliance screening environmental/social objectives € 1.1 bn governance practices rights controversies governance violations diligence process 1 Non-sustainable business activities include but are not limited to revenues generated from adult entertainment, alcohol, weapons, fossil fuels, tobacco, gambling etc. A zero tolerance approach is applied for companies generating revenues from these activities. Green bonds are exempted from fossil fuel activity screening due to climate friendly use of proceeds of these bonds. 2 Previous year numbers were not part of the audit engagement. 28

Sustainability Report 2021 02.2 Sustainability in proprietary investments 01 Introduction Exploring the difference between sustainable investments Investing in a net-zero economy By investing in the Allianz Impact Investment Fund, We have a growing global portfolio of climate which is managed by AllianzGI, we further promote 02 Measuring and and EU Taxonomy regulations. solutions including investing in renewable the generation of measurable environmental and managing sustainability Sustainable investments definition by the As Allianz is pre-dominantly a debt investor energy, energy innovations and fostering the / or social impacts in Europe through investments Sustainability in our business activities Sustainable Finance Disclosure Regulation (SFDR) with a globally diversified portfolio, large parts transition to a net-zero economy. Examples in private debt and equity opportunities across a 02.1 Sustainability in insurance is principle based; qualifying investments shall of our assets fall outside the application of the include investments in the AllianzGI Renewable range of sectors such as for example energy supply 02.2 Sustainability in have an environmental or social objective, do no EU Taxonomy. For example, sovereign debt is Energy Fund and financing measures that reduce and energy efficiency as well as health and care. proprietary investments significant harm to any of those objectives and not in scope of the EU Taxonomy. Also direct energy consumption, resource use and GHG 02.3 Sustainability in asset management have good governance practices. Based on these debt financing of renewable projects is emissions. We are committed to increasing our Sustainability in our organization principles and with respect to the detailed and outside the scope of EU Taxonomy reporting. exposure in renewables by 5.85 percent per year 02.4 Human resources still evolving framework set by the EU Taxonomy, Additionally, regulation foresees reporting in line with the International Renewable Energy 02.5 Customer satisfaction which is amending the SFDR, we developed based only on self-reported data of companies Agency projections. 02.6 Environmental management our own conservatively calibrated approach rather than estimations so our reporting will covering our main asset classes and all regions phase in over time as in-scope companies Investing in emerging economies 03 Strengthening globally. Through this approach, we identify will report for the first time in their full-year For the achievement of a global net-zero our foundation around 15 percent of our portfolio as sustainable 2022 disclosure. economy, it is pivotal to close the large financing 04 Climate-related investments, in line with the EU regulation. As EU Taxonomy alignment criteria are difficult gap prevailing in emerging economies. financial disclosure The EU Taxonomy is a tool to help investors to assess and takes time for companies and We actively pursue investment opportunities in understand whether an economic activity is investors to analyze, EU regulation foresees that these markets alongside development finance 05 Our universal principles environmentally sustainable and to navigate the investors will report this year only on Taxonomy institutions, donors and other impact investors. transition to a low-carbon economy. It follows eligibility and not alignment. This means that Utilizing blended finance structures allows us roughly the same structure as sustainable a business activity is eligible whenever it is to access new markets and tap into growth investment regulation (e.g., objective, do no covered by the Taxonomy. Only the second opportunities, such as for example our funding to significant harm and social safeguarding) step – assessment of alignment – will reflect innovative SMEs and start-ups in Africa through but it is very detailed and not principle based. how climate-friendly a business activity is. Allianz Global Investor’s AfricaGrow fund of funds. The Taxonomy defines qualifying criteria on For example, electricity generation is a business Another example includes our investment into a single business activity level. Only climate activity covered in the Taxonomy and all power responsAbility’s Global Climate Partnership Fund, adaptation and mitigation objectives are plants are eligible, but only assessment of which fosters energy efficiency and renewable currently in-scope objectives, with more alignment distinguishes between coal power energy investments for SMEs and private environmental and social objectives to come plants and renewables – and this assessment households in emerging countries and thus in the next years. will not take place until 2022. contributes to the reduction of GHG emissions. Through GAWA Capital’s Huruma Fund we also The data reporting universe for the EU The Taxonomy eligible assets for the actual support improving the access to financing for Taxonomy is regulated by the Non-Financial reporting period therefore only contain assets small or excluded farmers in rural areas of Latin Reporting Directive (NFRD), covering only where we are in a control position – namely America, the Caribbean, sub-Saharan Africa and investments into European companies with part of our Real Estate portfolio and equity Asia, thereby helping to improve the quality of life activities which are in scope of the EU Taxonomy investments into renewables – as well as our of farmers in the target regions. and assets where we are in a control position, exposure to mortgages. meaning in simplified terms that we are an Taxonomy-eligible investments in 2021 equity investor and fully consolidate the assets totaled € 76.9 billion. on our balance sheet. 29

Sustainability Report 2021 02.2 Sustainability in proprietary investments 01 Introduction 02.2.3 Climate change Allianz has set an intermediary target to reduce performance and how to set appropriate targets. gas downstream. Most of oil and gas companies and decarbonization GHG emissions by 25 percent by year-end 2024 Allianz is working with the U.N.-convened Net- have not yet set Scope 3 targets making it 02 Measuring and compared to a 2019 baseline for its equity and Zero AOA to finalize the methods for sovereign difficult to track progress. We are reviewing our managing sustainability The financial sector has a crucial role tradeable corporate bonds portfolio. In addition bonds as next asset class. We will set targets approach to engaging companies around Scope Sustainability in our business activities to play in enabling a low-carbon future. to traditional investment criteria, we assess for this asset class within 12 months after the 3 emissions. 02.1 Sustainability in insurance As asset owners, we are uniquely whether equities and corporate bonds are in recommended methodology is released by We also aim to increase our bilateral engagement 02.2 Sustainability in line with a 1.5°C pathway. In 2021, Allianz has the AOA. activities by at least 100 percent by end of 2024. proprietary investments positioned to help shape the global reached the -25 percent decarbonization target Engagement at the industry level In addition we will increase our participations in 02.3 Sustainability in asset management economy and financial systems. of its equity and corporate bonds portfolio. collaborative engagements such as CA100+ and Sustainability in our organization This includes driving the decarbonization Target achievement was supported by estimated To support the shift towards a low-carbon will drive sector and asset manager engagements 02.4 Human resources of investment portfolios and supporting four to five percent from COVID-19 shutdowns economy, we are also active at the industry sector activities as part of the AOA. 02.5 Customer satisfaction and estimated three percent from positive market level. Our interim targets for year-end 2024 02.6 Environmental management greenhouse gas (GHG) emission reductions developments. The normalized emission reduction focus on two of the highest emitting-industries: In 2021, Allianz released an update of its policy in the real economy. in 2021 is estimated at 16 percent and driven by Utilities, and Oil and Gas: on coal-based business models which defined 03 Strengthening active portfolio measures and emission reduction Utilities: Complementing our coal phase- in particular even more ambitious thresholds our foundation We strategically consider climate criteria in all our of investee companies. We also target that our from 2023 and a clear pathway to further reduce business lines. Our long-term commitment is to direct real estate portfolio will be aligned with out commitment by gradually increasing our thresholds in the future. In order to smooth the 04 Climate-related achieve net-zero GHG emissions in our proprietary science-based 1.5°C pathways by year-end 2024. investments in renewables and following at least transition to these stricter pathways, issuers which financial disclosure investment portfolio by 2050, in line with the the necessary annual growth rate of 5.85 percent are expected to potentially breach the new Target-Setting Protocol of the U.N.-convened Furthermore, in 2021 we have introduced as proposed by the International Renewable thresholds from 2023 were put on Freeze, which 05 Our universal principles Net-Zero Asset Owner Alliance (AOA). This means new targets for our equity and debt Energy Agency (IRENA). means, no exposure increase is allowed. This Freeze that, as asset owners, we will assist, incentivize infrastructure investments. Oil and Gas: Supporting the commitment set out affected € 0.2 billion public equity and € 3.4 billion and require our portfolio companies to embark These targets foresee: by the industry-led Oil and Gas Climate Initiative fixed-income exposure. Given this extensive Freeze, on decarbonization pathways consistent with the • Full transparency on financed emissions latest (OGCI) to limit the emissions intensity for Scope 1 there are no additional divestments reported 1.5°C objective of the Paris Agreement. As our by year-end 2023 for all investments. and 2 emissions of companies in their exploration for 2021. portfolio companies progress towards low-carbon and production business (‘upstream’) to less than For more information on our portfolio carbon business models, we will automatically see our • For direct equity investments an absolute 20 kg CO e per barrel of oil and aligning our Oil portfolio decarbonize. carbon reduction of 28 percent by year- 2 footprint, see our Climate-related financial end 2025. and Gas exposure on average listed equity and disclosure (section 04) and section 3.9.2 of the We use leading academic climate scenarios corporate bonds portfolio to this intensity level. Allianz ESG Integration Framework. like the ones used for the reports by the • New direct (equity and debt) investments Engaging with companies to set net-zero targets Intergovernmental Panel on Climate Change in high emitting assets only in case a 1.5°C on Scope 1 and 2 emissions by 2050. By 2025, (IPCC) to determine alignment with our goal. aligned decarbonization plan is in place. we aim for at least 50 percent of our assets under Targets are based on scenarios which foresee swift • Phase in of net-zero targets for new fund management in the oil and gas sector to have set emission reductions and project that the 1.5°C investments until year-end 2024. these targets. Similar to our own Scope 3 targets, goal is not, or is only slightly, overshot. They do the oil and gas industry also has a responsibility to not backload emissions reductions by assuming These portfolios make up around 36 percent reduce their Scope 3 emissions, which mainly are the world can massively remove carbon from of the global Allianz portfolio. For other asset the emissions resulting from the burning of oil and the atmosphere using technologies currently classes, the AOA is working to define methods unavailable or unproven at scale. on how to measure climate change-related 30

Sustainability Report 2021 02.2 Sustainability in proprietary investments 01 Introduction For further information, please see our climate-related financial disclosures and the Building confidence in tomorrow… Building confidence 02 Measuring and Allianz statement on coal-based business in tomorrow… managing sustainability models in section 4. Sustainability in our business activities …by driving net-zero emissions with the U.N.-convened …as a member of Climate 02.1 Sustainability in insurance Coal restrictions in place since 2015 Net-Zero Asset Owner Alliance Action 100+ 02.2 Sustainability in 201 By the end of 2021, the U.N.-convened Net- by being fully science-based in all that it does Allianz is an active member of Climate Action proprietary investments Zero AOA had grown to include 61 asset and by promoting the OECM model and the 100+ (CA100+) which aims to engage with 02.3 Sustainability in asset management ntrodced owners from around the globe, representing P1-P3 IPCC scenarios, no or low over-shoot. 167 of the world’s largest corporate GHG coal restriction Sustainability in our organization for in estments assets under management of over 10 trillion Beyond guiding and helping members to emitters to set GHG emission reduction 02.4 Human resources U.S. dollars. New members that joined during set targets, the initiative also helps members targets, strengthen climate-related financial 02.5 Customer satisfaction 2018 the year include Nippon Life Insurance achieve targets through a variety of outputs disclosures and improve governance on 02.6 Environmental management P&C restrictions Company, Sumitomo Life Insurance, African such as Alliance Positions on Thermal Coal, climate change. 03 Strengthening single site annonced Risk Capacity, Sparkassen Versicherung and Blended Finance, Carbon Pricing and Negative More than 600 investors, both asset owners compan eclsions Pensioenfonds Detailhandel, among others. Emissions Technologies (NETs). and asset managers have now signed up to our foundation First for 2023 The insurance associations of France, Germany engagements and Switzerland also became supporters to To achieve meaningful impact, members’ the initiative – representing over 60 trillion U.S. 04 Climate-related started 2021 portfolio transition to net-zero should primarily dollars in assets under management. Allianz financial disclosure Tightened criteria for encourage members to join and to support lead to emission reductions in the companies is a lead engager on two of the CA100+ whole approach in them in this process. in which they invest, in and not only in portfolios. target companies and we collaborate on 05 Our universal principles light of most recent Members of the Alliance commit to set To this end, members are engaging with portfolio a further three. Our effort has included climate science intermediary decarbonization targets every companies and asset managers, directly and introducing the CA100+ Net-Zero Company 2022 five years for their portfolios. 50 percent of through concerted sector roundtables, and Benchmark to the companies we engage with Year of members have set a 2025 science-based with governments and public policies. In 2021, and supporting the initiative’s broader role decision making target based on the Alliance’s Protocol with the Alliance published position papers on out of this measurement and tracking tool. the remaining 50 percent due to set targets governmental carbon pricing as well as on the The Benchmark covers critical indicators to in 2022. This is unparalleled anywhere in the role of atmospheric carbon removal in achieving measure company progress against a 1.5°C 2023 private sector and is captured in the Alliance’s net-zero emissions. aligned pathway, and to transparently report P&C restrictions first public report on progress, published in The Alliance published its first report on on their progress. for companies October.1 Allianz has set an intermediary target We have seen a significant increase in in effect of reducing GHG emissions by 25 percent by the progress in October 2021. end of 2024 compared to 2019. Find out more online: commitments from many CA100+ companies U.N. Environment’s AOA Website. and we continue to support cooperative 2026 The Alliance is driving the availability of dialogues with target companies in pursuit Criteria to operationalizable scenarios and pathways of increased climate ambition, transparency, tighten again governance and reporting. 1 https://www.unepfi.org/wordpress/wp-content/uploads/2021/10/AOA-Progress-Report-2021.pdf. 31

Sustainability Report 2021 02.2 Sustainability in proprietary investments 01 Introduction 02.2.4 Sustainability in real Embedding sustainability in real estate For more detail on Allianz Real Estate’s To meet our targets, we are working to address estate investments Allianz Real Estate’s ESG integration framework ESG integration approach, see the Allianz challenges posed by a lack of industry-wide 02 Measuring and is designed to improve the sustainability Real Estate website and the Allianz ESG standards and availability of high-quality data managing sustainability We are working to reduce the GHG performance and transparency of real estate Integration Framework. by providing detailed guidance and instructions Sustainability in our business activities emissions of our portfolio to net-zero assets and address issues such as physical for our external partners and embracing new 02.1 Sustainability in insurance by 2050 by embedding sustainability climate risks, reducing the risks of obsolescence Decarbonizing our real estate portfolio technologies such as smart meters to inform 02.2 Sustainability in and depreciation. In 2021, we further embedded our sustainability sustainability data-based decision-making. proprietary investments criteria and collaborating with others approach in the European Debt business by With the scope of our ambition including 02.3 Sustainability in asset management to strengthen sustainability activities Our framework is based on three key areas of increasing analysis and benchmarking of energy operational emissions from areas not under our Sustainability in our organization across real estate management activity: assess, engage and improve. and carbon-related data during technical due direct control, such as tenant areas, achieving it 02.4 Human resources and investment. 1. Assess diligence and energy performance data collection will require significant engagement and 02.5 Customer satisfaction Screening assets for sustainability issues is an during the term of the loan. We also amended collaboration. It is a challenge to implement KPIs 02.6 Environmental management Allianz Real Estate develops and executes integral part of our decision-making process. the environmental due diligence scope of work and disclose progress on decarbonization efforts tailored portfolios and investment strategies for Our primary focus is on carbon emissions for direct investments to consider decarbonization as appropriate evidence and robust controls 03 Strengthening Allianz insurance companies and pension funds and energy efficiency and we also look and required actions and investments in cannot easily be implemented to meet highest our foundation around the world, as well as for third-party clients. at governance and social and well-being more detail. assurance requirements. In 2021, Allianz Real Estate and other Allianz standards. Any equity investment must have We are working to reduce the GHG emissions of Among others, new acquisitions will be assessed 04 Climate-related operating entities invested proprietary assets an environmental or sustainability certification our real estate portfolio to net-zero by 2050 in line against 1.5°C GHG and energy pathways and the financial disclosure totaling € 6.4 billion (2020: € 5.6 bn) in green (e.g. BREEAM or LEED). with our Group commitment. investment needed to meet related targets will 05 Our universal principles buildings, including equity and debt investments. 2. Engage be considered. Procurement of renewable energy This equals a share of 11 percent of our total real We aim to influence our partners and tenants Our aim is to align with the 1.5°C decarbonization and engagement to convince tenants to switch to estate portfolio of € 59.5 billion. to follow our lead and take an active role to pathways for the global real estate sector green electricity will be a priority (e.g. via standard With the increasing focus on decarbonization, bring about change, for example by promoting published by the Carbon Risk Real Estate Monitor lease agreements). Where deep refurbishments real estate assets face significant costs in ‘green leases’ which include provisions (CRREM). This translates into a 25 percent carbon are required, completed buildings will be highly meeting higher energy efficiency standards and designed to reduce environmental impacts. emission reduction target for the global portfolio energy efficient to ensure long-term compliance 1. addressing demands from investors and tenants. by 2025 with the 1.5°C GHG pathway. Real estate is also highly exposed to physical 3. Improve climate risks and large-scale investment may Key to improving our portfolio is the be required to improve resilience – for example decarbonization of our direct investments through relocation of critical equipment to which equate to half of our investment reduce potential flood damage or upgrading air portfolio. By improving the energy efficiency conditioning systems to ensure reliability during and replacing traditional energy sources with extreme heat events. low-carbon alternatives we are transforming our buildings for the future. 1 Against the initial 2019 baseline covering the global direct equity real estate portfolio. 32

Sustainability Report 2021 02.3 Sustainability in asset management 01 Introduction Integration of sustainability AuM). PIMCO is a premium fixed income player To support this journey, there have been a number contribute to positive environmental and/or in asset management is managing € 1.5 trillion in 3rd party assets of of significant changes to the company: societal change. They include SDG-aligned 02 Measuring and which 203.1 billion are ESG themed investments • A newly created centralized Sustainable listed strategies as well as Private Markets managing sustainability an important industry or 13.4 % (in 2020: € 136.5 bn or 10.2 percent of Investment Office responsible for shaping Impact and Development Finance strategies. Sustainability in our business activities driver. As active investors total AuM). sustainable product strategy and Read AllianzGI’s report for more details on 02.1 Sustainability in insurance Embedding active investment sustainable policies. its approach. 02.2 Sustainability in with leading research management • A Sustainability Methodologies and Analytics proprietary investments capabilities, our investment team was set up to oversee AllianzGI’s ESG PIMCO’s strategic approach 02.3 Sustainability in asset management Our asset managers take an active stewardship integration efforts, further develop ESG data PIMCO has a long history of managing socially Sustainability in our organization management businesses role to maximize the sustainability value of client’s sets and leverage state-of-the-art-technology. responsible portfolios for clients and has invested 02.4 Human resources capital. Material ESG factors are important in talent, technology, infrastructure and solutions 02.5 Customer satisfaction innovate sustainable considerations while evaluating long-term • Sustainability Research and Stewardship teams to position itself as a leader in ESG Fixed Income. 02.6 Environmental management investment solutions. investment opportunities and risks for all asset have been refocused on developing thematic Over the last year, PIMCO added resources to its classes in public and private markets. research and engagement. broader ESG team and expertise including: 03 Strengthening Allianz Group’s asset management segment offers • Announcement of an Impact Measurement our foundation an increasing number of ESG and responsible AllianzGI’s strategic approach and Management team to develop an impact • A Global Head of Sustainability who will investment solutions. Our two major investment AllianzGI continues to grow its sustainability framework for due diligence, measurement oversee PIMCO’s ESG and Sustainability 04 Climate-related businesses – Allianz Global Investors (AllianzGI) offering demonstrating its commitment as an and management of private market initiatives, providing strategic direction, financial disclosure and PIMCO – cater to a wide range of investors active investor to shaping the world of tomorrow. Impact investments. governance and firm wide coordination of with bespoke ESG integration needs, from retail Since joining the company at the beginning of ESG efforts. 05 Our universal principles fund investors to institutional clients. 2021, the Global Head of Sustainable and Impact All of the assets managed by AllianzGI are • Eight dedicated ESG analysts to help identify As a diversified multi asset player AllianzGI is Investing, has set out to accelerate the growth of ESG risk assessed whereby sustainability risks opportunities and risks associated with ESG a global leader in active asset management Impact investing as part of a fast-growing private are identified and monitored throughout the related topics. managing € 456 billion in third party assets of markets offering and continued integration of ESG management of the portfolios. The firm’s in AllianzGI’s public and private market offerings. specific ESG approaches, which include its two • Collaboration with external experts such which € 184.3 billion are ESG themed investments sustainability strategies (sustainability-focused as Mark Carney, who became a member of or 40% (in 2020: € 95.4 bn or 25.5 percent of total and impact-focused), are defined in the following PIMCO’s Global Advisory Board in 2020. way and have been developed based on clients’ PIMCO evaluates ESG risk factors from a top Table ESG-13 preferred outcomes whether it be risk mitigation down (i.e. macro) and a bottom-up (i.e. issuer ESG-themed investments for third-party assets through to measurable impact: and security specific) perspective. Its first step is As of December 31 2021 2020 2019 1. ESG risk-focused strategies – integrate to identify the major long-term themes that will material ESG risk considerations into affect the global economy and financial markets. Allianz Global Investors € bn 184.3 95.4 56.1 investment analysis and decisions without The firm’s annual Secular Forums are devoted to 1 identifying and analyzing these trends. This year’s ESG Risk focused € bn 43.1 51.0 31.0 constraining the investment universe. 2 forum identified the transition to green energy Impact focused € bn 4.8 2.2 1.8 2. Sustainability-focused strategies – consider 3 as one of the three major trends over the secular Sustainability focused € bn 136.4 42.1 23.3 sustainability objectives and values as part horizon. PIMCO blends its macro analysis with PIMCO € bn 203.1 136.5 101.6 of their portfolio construction, in addition to bottom-up work carried out by the firm’s global financial returns. research teams and portfolio managers who AllianzGI changed the titles of its sustainability categories to reflect the developing nature of its investment approaches. 3. Impact-focused strategies – consider evaluate ESG-related issues as part of their 1 ESG Risk focused – previously labeled Integrated ESG. measurable sustainable outcomes and analysis processes. 2 Impact focused – previously labeled Impact. 3 Sustainability focused – previously labeled SRI and now includes newly developed sustainable strategies such as CEWO. 33 It should be noted that only the latter two categories are considered Sustainable under the SFDR.

Sustainability Report 2021 02.3 Sustainability in asset management 01 Introduction For investors seeking greater ESG orientation by the outcomes of engagements and are linked leverage and balance sheet management AllianzGI also continues to support global net- in their portfolios, PIMCO offers a suite of ESG- to the proxy voting process to form a consistent as well as ESG-related topics such as climate zero ambitions via its Private Markets platform. 02 Measuring and dedicated solutions. In 2021, PIMCO enhanced stewardship approach. change targets and ESG bonds, human capital In November, together with IFC and Hong Kong managing sustainability its ESG research frameworks and capabilities, With 299 company engagements covering management, and board qualifications and Monetary Authority, AllianzGI set up the world’s Sustainability in our business activities particularly for municipal bonds and securitized 482 topics in 238 companies and 27 markets, composition. Of the 1,585 corporate bond issuers first cross-sectoral portfolio of emerging-market 02.1 Sustainability in insurance assets. The platform builds on PIMCO’s core AllianzGI showcased its strong commitment engaged, more than 650 issuers were engaged loans aligned with the Paris Agreement called the 02.2 Sustainability in ESG process and sustainability-specific features to engagement in 2021 and voted at 10,190 in depth, with repeat discussions on specific Managed Co-Lending Portfolio Program (MCPP proprietary investments focused in three areas: exclusions, evaluation, shareholder meetings. In 68 percent of meetings topics and milestones monitored and tracked. One Planet). The strategy supports the IFC and 02.3 Sustainability in asset management and engagement. they voted against management, withheld or These issuers represent almost 60 percent of the Allianz Group to make 1.5°C-aligned investments Sustainability in our organization Engagement and stewardship abstained with at least one vote. These figures firm’s corporate holdings by market value. in emerging markets. AllianzGI also announced at 02.4 Human resources reflect AllianzGI’s willingness to vote against Read more in PIMCO’s ESG Investment report. the U.N. Climate Conference in Glasgow the launch 02.5 Customer satisfaction Our asset managers engage proactively proposals that do not meet its expectations as of the Emerging Market Climate Action strategy 02.6 Environmental management with investee companies to build sustainable well as fulfilling its duty to act in the interests of Climate engagement (EMCA), a public-private partnership, which will businesses. They engage in regular dialogue clients by considering each proposal on merit. Our asset managers have developed robust invest in climate-focused private equity funds and 03 Strengthening and seek to present a viewpoint, effect positive Read more in AllianzGI’s methods to incorporate climate considerations projects active in emerging markets and developing our foundation change and monitor results of engagement. stewardship statement. into our investment decisions and processes. countries with a focus on climate mitigation, By investing in corporates willing to improve Supporting the companies we invest in to develop climate adaptation, and access to electricity. 04 Climate-related their ESG practices, we believe we can drive PIMCO’s 80+ global credit research team engaged their transition pathways is one of the ways with AllianzGI has also enhanced its company-wide financial disclosure greater change than through exclusions alone. with 1,585 corporate bond issuers representing which we broaden our positive impact. exclusions policy, including a dedicated coal 05 Our universal principles Our goal is both to find the best opportunities in roughly 80 percent of PIMCO’s corporate holdings policy for the first time. This enhanced exclusion the market and also to create them by engaging by market value. Topics of discussion with company Last year, AllianzGI introduced a specific element policy effective from December 2021, further with issuers. Our investment views are influenced management related to corporate strategy, of climate engagement related to its ‘Climate underlines AllianzGI’s commitment to tackling Engagement with Outcome’ program. Under climate change by divesting from the single the program, in portfolios applying the program largest source of carbon emissions – coal. PIMCO integrates ESG factors from a top down and bottom up perspective the highest emitters are identified, their climate Read more about AllianzGI’s Climate Top profiles are fully scoped, and it seeks to engage Engagement with Outcome approach as well Themes identified through annual Secular Forum process down with these companies to understand their climate as the Private Market launches, MCPP One Speakers include Nobel Prize winners, heads of state, renowned academics, global central bankers transition pathway towards a Paris Agreement Planet and EMCA. aligned economy. It will actively engage with the Climate change Geopolitics Corporate governance highest emitters (Scopes 1 and 2) on ambitious PIMCO’s broad climate research evaluates climate ‘outcomes’ encompassing not only scale climate-related risks and opportunities within Inequality Demographic trends Cybersecurity of decarbonization, but also how this is being specific sectors and issuers, typically beginning achieved (and aligned with Just Transition). with two broad categories: These targets are considered within the context 1. Transition risks: for example tighter Specialty desks, credit analysts, security selection of sector and peers to ensure both credibility and Understanding all material risks is critical to making sound investment decisions, for example: ambition. The approach combines this with the regulations on carbon emissions. Social firm’s Sustainability Minimum Exclusions. 2. Physical risks: for example how the rising Environment Ensures sound product safety Governance intensity and frequency of extreme weather Employs resource efficiency from and quality standards to protect Management’s capacity to events affects critical assets and natural waste to energy consumption end-users manage risk over the cycle Bottom resources used or relied upon by the issuer. up 34

Sustainability Report 2021 02.3 Sustainability in asset management 01 Introduction PIMCO has developed a range of methodologies also participates on the Executive Committee of PIMCO aims to be a ‘trusted advisor’ to its practices, personal investment transactions, to help investors assess climate risks and climate International Capital Markets Association (ICMA) clients. This means going beyond understanding gifts and entertainment, proxy voting and 02 Measuring and impacts in their portfolio. For sustainability which oversees impact bond principles/guidelines investment portfolio objectives, risks and other matters. managing sustainability portfolio solutions, the insights these tools provide and endorses the TCFD; the CDP, Climate Action constraints by working with clients to understand Both AllianzGI and PIMCO have received Sustainability in our business activities include material information to support portfolio 100+ and major global platforms including the the investment objectives of their entire plan and excellent PRI ratings for consecutive 02.1 Sustainability in insurance managers in better managing and mitigating IIGCC Net-Zero Investment initiative where PIMCO how their objectives might best be achieved. climate-related credit risks. They enable them to co-authored the Net-Zero Investment Framework 1 02.2 Sustainability in PIMCO performs a range of client services to years in a row proprietary investments assess a portfolio’s alignment with targets from Implementation Guide. promote collaboration and engagement: 02.3 Sustainability in asset management the Paris Agreement to limit global temperature ‘European Investor Sustainability in our organization rise to 1.5°C to 2°C above preindustrial levels. Client communication and engagement • Separate client service and portfolio 02.4 Human resources Our ability to bring value to our clients goes management functions focus on delivering of the Year’ 02.5 Customer satisfaction Collaborating with industry groups beyond just delivering on stated investment higher levels of service and performance – this title was awarded to AllianzGI 02.6 Environmental management AllianzGI and PIMCO take an active role in outcomes. Client service and communication to clients. Infrastructure Debt team at the IJGlobal dialogue with industry and market initiatives. is an integral component of the investment • One or more account managers are assigned Award, recognizing the attention they place on 03 Strengthening As a member of the Net-Zero Asset Managers management service that our asset to each client. They aim to meet with clients sustainability and active engagement on critical our foundation Initiative, AllianzGI is committed to supporting managers provide. at least twice yearly and are available to ESG factors. the goal of net-zero GHG emissions by 2050 As a matter of course the development of respond to client requests as well as providing Sustainable asset 04 Climate-related or sooner. In October, AllianzGI joined the the ongoing proceedings in connection with customized educational sessions for clients. financial disclosure One Planet Asset Managers Initiative which the Allianz GI US LLC Structured Alpha funds • PIMCO strives to keep clients up-to-date management solutions 05 Our universal principles supports members of the One Planet Sovereign is monitored. Findings will be reflected in the through regular reports which may include Sustainable asset management solutions include Wealth Funds (OPSWF) to integrate climate- continuous improvement of processes. a review of past portfolio strategy and the ESG and Socially Responsible Investment (SRI) related risks and opportunities within long-term performance, discussion of current strategy, products and strategies offered to third-party investment portfolios. AllianzGI also supports Communication with clients is made via all economic outlook and market forecast. asset management clients (see section 02.3). AIM in its role as a member of the Platform for forms as defined by regulatory requirements. Examples include: Sustainable Finance. In addition, clients are furnished with all forms • In addition to robust in-person client servicing PIMCO focuses on established engagement of communication that the firm believes to and substantial web resources, PIMCO offers • Pension funds that make it possible to invest platforms to drive positive change in capital be relevant to the client. The frequency and clients the opportunity to build their investment in sustainable funds following specific ESG markets. In 2021, it became a member of the the content of said communications vary, knowledge through seminars and conferences. sustainability criteria; Sustainable Markets Initiative and an Advisory depending on the nature of the product and/ PIMCO has implemented policies and procedures • Solutions where the premium is invested in Board member of the Sustainable Bond or service. that are designed to identify, manage, mitigate certified green bonds to support in return Network (NASDAQ). Co-founded by PIMCO in AllianzGI aims to provide transparency by and/or resolve actual or potential conflicts of green projects. partnership with the UNGC and energy utility always at least meeting the regulatorily required interest including conflicts relating to, among Enel, the CFO Taskforce is co-chaired by Scott standard. It has policies and procedures in place other things, portfolio management and trading Mather, PIMCO’s Chief Investment Officer U.S. to ensure the content of communication to Core and Sustainable Investments. The taskforce investors is reliable. Table ESG-14 aims to engage global CFOs on sustainable General information on Allianz Global Asset Manager Selection development, leveraging the nearly 10,000 Investors products and services is available at companies participating in the UNGC. PIMCO www.allianzgi-regulatory.eu or upon request. As of December 31 2021 2020 2019 Share of asset managers being PRI signatories or having % 99 99 99 an ESG policy in place 1 Results for 2020 reporting are published in our Sustainability Report 2020. Results for 2021 reporting were not published yet and are due in the H2, 2022. 35

Sustainability Report 2021 01 Introduction 02 Measuring and managing sustainability 02 Sustainability Sustainability in our business activities 02.1 Sustainability in insurance 02.2 Sustainability in proprietary investments 02.3 Sustainability in asset management Sustainability in our organization 02.4 Human resources in our organization 02.5 Customer satisfaction 02.6 Environmental management 03 Strengthening We are committed to integrating sustainability across our organization. In the Our performance towards our our foundation following part of the ‘Measuring and managing sustainability’ section of this sustainability-related board targets 04 Climate-related report, we focus on topics which we can quantify and then give an overview of financial disclosure the key approaches. IMIX For our human resources activities, we have set quantitative targets for our Board 78 % 05 Our universal principles of Management to employee engagement (IMIX and WWi+) and we measure our leaders’ performance against the Allianz People Attributes. Furthermore, we have publicly committed to a set of diversity and inclusion targets. NPS To ensure customers are always put first, the targets of our Board of Management include a focus on customer loyalty, as measured through the net promoter 84 % score (NPS). As a global company, we have also committed to reducing our environmental Reduction of GHG footprint. For this we have set a board-level target regarding our organization’s emissions per employee GHG emissions reduction (30 percent based on 2019 by 2025) as well as our use of renewable electricity (100 percent by end of 2023). In addition to these, 60 % there are also targets to reduce our environmental footprint across other dimensions (such as water and waste). Renewable electricity For all areas, we have a long-standing set of indicators to disclose our sustainability performance across our organization. Furthermore, this section 77 % describes management approaches to integrate sustainability in these matters. The performance of our Board of Management regarding their Top sustainability sustainability targets is on track. For a detailed overview, please see rating results sections 01.3. An overview of all further quantitative and qualitative targets and our performance related to these topics can be found in section 05.1. 36

Sustainability Report 2021 02.4 Human resources 01 Introduction Human resources performance data This section contains data related to the sustainability performance of Allianz Group. 02 Measuring and Data in this section is part of the Attractive Employer Chapter. managing sustainability Sustainability in our business activities Table HR-1 Table HR-3 02.1 Sustainability in insurance Employee overview Employment relationships 02.2 Sustainability in proprietary investments As of December 31 2021 2020 2019 As of December 31 2021 2020 2019 02.3 Sustainability in asset management 1 2 Sustainability in our organization Total number of employees (core business) 148,708 148,929 143,642 Full-time employees 125,160 124,937 120,557 02.4 Human resources thereof: men % 48.4 48.7 48.7 % 87.1 86.9 86.8 02.5 Customer satisfaction thereof: women % 51.6 51.3 51.3 thereof: male 66,875 67,103 64,948 02.6 Environmental management Total number of employees (core and non-core) 155,411 150,269 147,268 % 53.4 53.7 53.9 Table HR-2 thereof: female 58,285 57,834 55,609 03 Strengthening Employees by region % 46.6 46.3 46.1 our foundation 2 18,460 18,768 18,376 Part-time employees 04 Climate-related As of December 31 2021 2020 2019 % 12.9 13.1 13.2 financial disclosure Australia 5,912 5,668 5,470 thereof: male 3,783 3,961 3,822 Austria 3,119 3,105 3,088 % 20.5 21.1 20.8 05 Our universal principles Brazil 3,886 4,291 2,720 thereof: female 14,677 14,807 14,554 France 13,325 13,538 13,888 % 79.5 78.9 79.2 3 % 2.0 2.1 2.3 Germany 39,720 39,768 38,412 Trainee ratio India 8,461 7,862 6,845 Italy 6,194 6,087 6,289 As of December 31 2021 2020 2019 Spain 4,485 4,308 4,488 Permanent employees 138,778 138,974 132,682 United Kingdom 10,752 10,936 9,956 % 93.3 93.3 92.4 United States 7,897 7,802 8,329 thereof: male % 48.8 49.1 49.2 Other 51,660 46,904 47,783 thereof: female % 51.2 50.9 50.8 Total 155,411 150,269 147,268 Temporary employees 9,930 9,955 10,960 % 6.7 6.7 7.6 thereof: male % 42.8 42.5 43.0 thereof: female % 57.2 57.5 57.0 1 Figures based on the number of employees in Allianz’s core business which includes all companies in and related to the insurance and asset management business, including our Banking activities in Germany, France, Italy and Central and Eastern Europe. The figures do not include fully consolidated companies that are considered as pure financial investments and companies classified as held-for-sale. 2 Based on active headcount, excluding e.g. employees on sabbatical leave, in military or civilian service or on parental leave. 3 Trainees are employees at the beginning of their career participating in a trainee program, i.e. undergoing practical training designed to facilitate their development of knowledge and skills, e.g. apprentices, trainees, interns and working students, and with a formal arrangement (e.g. employment contract or third-party agreement with a school or university). 37

Sustainability Report 2021 02.4 Human resources 01 Introduction Human resources performance data 02 Measuring and Table HR-3 Table HR-4 managing sustainability Employment relationships Age structure Sustainability in our business activities % of total employees (core business) As of December 31 2021 2020 2019 02.1 Sustainability in insurance Permanent employees 138,778 138,974 132,682 As of December 31 2021 2020 2019 02.2 Sustainability in All employees proprietary investments Asia Pacific 18,095 17,923 17,036 02.3 Sustainability in asset management Eastern Europe 7,414 7,897 8,223 % of 24 or under % 5.9 6.3 7.0 Sustainability in our organization Germany 42,557 41,821 40,027 % of 25–34 % 28.6 28.8 28.1 02.4 Human resources Middle East & Africa 4,564 4,336 4,659 % of 35–44 % 27.9 27.5 27.0 02.5 Customer satisfaction North America 8,385 8,451 8,702 % of 45–54 % 23.5 23.6 24.0 02.6 Environmental management Rest of Western Europe 54,149 54,579 51,588 % of 55–64 % 13.5 13.1 13.3 03 Strengthening South America 3,614 3,967 2,447 % of 65 or over % 0.6 0.7 0.6 our foundation Temporary employees 9,930 9,955 10,960 Average age years 40.7 40.6 40.6 Asia Pacific 1,774 1,668 1,652 Allianz SE Board of Management 04 Climate-related Eastern Europe 392 417 526 % of below 30 % 0.0 0.0 0.0 financial disclosure Germany 3,137 3,241 3,174 % of 30–50 % 40.0 30.0 30.0 05 Our universal principles Middle East & Africa 1,436 1,375 1,393 % of above 50 % 60.0 70.0 70.0 North America 34 44 37 Table HR-5 Rest of Western Europe 3,114 3,172 4,123 Employee turnover South America 43 38 55 % As of December 31 2021 2020 2019 Employee turnover rate % 15.3 12.9 16.5 Turnover rate (men) % 15.8 12.7 16.3 Turnover rate (women) % 14.9 12.9 16.4 Turnover rate by region Asia Pacific % 21.9 18.5 24.2 Eastern Europe % 15.6 15.6 19.9 Germany % 8.1 6.4 7.8 Middle East & Africa % 23.7 21.9 26.6 North America % 16.1 13.4 13.3 Rest of Europe % 17.6 14.5 19.5 South America % 16.8 13.9 15.8 38

Sustainability Report 2021 02.4 Human resources 01 Introduction Human resources performance data 02 Measuring and Table HR-6 Table HR-8 managing sustainability Employee recruitment Sickness-related absenteeism Sustainability in our business activities average days per employee As of December 31 2021 2020 2019 02.1 Sustainability in insurance Total recruitment (external and internal) 33,378 19,564 24,829 As of December 31 2021 2020 2019 02.2 Sustainability in Overall average days/empl 6.9 6.9 8.1 proprietary investments Total recruitment (share of men) % 46.2 49.6 49.7 02.3 Sustainability in asset management Total recruitment (share of women) % 53.8 50.4 50.3 Average days by region Sustainability in our organization Total recruitment by region Asia Pacific days/empl 3.0 3.0 3.9 02.4 Human resources Asia Pacific % 24.0 23.0 28.7 Germany days/empl 9.4 9.6 11.5 02.5 Customer satisfaction Eastern Europe % 11.0 10.4 12.7 Middle East and Africa days/empl 2.7 2.5 3.6 02.6 Environmental management Germany % 32.3 10.9 10.0 Eastern Europe days/empl 5.5 5.8 6.8 03 Strengthening Middle East & Africa % 23.6 18.1 33.0 North America days/empl 1.3 1.3 2.0 our foundation North America % 15.6 11.1 15.4 South America days/empl 1.7 2.2 3.0 Rest of Europe % 17.5 12.4 19.1 Rest of Europe days/empl 8.2 7.8 8.6 04 Climate-related South America % 8.1 6.0 14.4 Table HR-9 financial disclosure Total absenteeism Table HR-7 05 Our universal principles Diversity As of December 31 2021 2020 2019 As of December 31 2021 2020 2019 Total absenteeism lost days days 993,348 981,093 1,110,896 1 Absenteeism – coverage of employees (core business) % 100 100 100 Women in Allianz SE Supervisory Board % 33.3 33.3 n/a Target 30% by year-end 2021 Table HR-10 Women in Allianz SE Board of Management % 20.0 20.0 20.0 Health and safety Target 30% by 2021 2 Women in Executive Positions (Top Management) % 31.6 30.4 29.9 As of December 31 2021 2020 2019 3 Women in Allianz Global Executive (AGE) Positions % 24.5 n/a n/a Number of work related injuries during the cases 578 n/a n/a 3 Women in Allianz Senior Executive (ASE) Positions % 24.7 n/a n/a 3 Target 30% by year-end 2021 reporting period 3 3 Number of fatal occupational injuries during work persons 1 n/a n/a Women in Allianz Executive (AE) Positions % 32.8 n/a n/a 4 Numbers of hours worked on average of a full-time hours 7.7 7.7 n/a Female managers % 38.6 38.2 37.9 equivalent (core) Women in talent pools % 43.4 42.3 40.2 Target 40% by year-end 2021 Share of women in core business % 51.6 51.3 51.3 5 Number of nationalities represented in executive positions 67 59 64 1 Data disclosed since 2020. 2 Includes women in all executive positions below the Board of Management. 3 Data disclosed since 2021. 4 Includes women functionally responsible for other staff, regardless of level, e.g. division, department and team managers. 5 Figures calculated by including all executive positions below the Board of Management. 39

Sustainability Report 2021 02.4 Human resources 01 Introduction Human resources performance data 02 Measuring and Table HR-11 managing sustainability Employee training Sustainability in our business activities As of December 31 2021 2020 2019 02.1 Sustainability in insurance 1 02.2 Sustainability in Total expenses for employee training € mn 102.9 63.1 84.7 proprietary investments Training expenses per employee €/empl 716 442 613 02.3 Sustainability in asset management 2 Average training hours hours/empl 34.7 20.7 24.0 Sustainability in our organization Staff hours/empl 33.3 20.5 24.8 02.4 Human resources Managers hours/empl 43.5 21.6 26.6 02.5 Customer satisfaction 3 Employees undergoing at least one training session % 103.1 78.8 75.2 02.6 Environmental management 3 Staff % 102.9 78.0 73.5 3 03 Strengthening Managers % 104.5 83.7 84.8 our foundation Table HR-12 04 Climate-related Allianz Engagement Survey financial disclosure As of December 31 2021 2020 2019 05 Our universal principles Number of employees invited to participate in the 132,126 132,593 123,505 Allianz Engagement Survey (AES) Number of OEs invited to participate in the AES 64 67 62 AES Participation rate % 82 85 84 Work Well Index+ (WWi+) % 69 70 66 Employee Engagement Index % 76 78 72 Inclusive Meritocracy Index (IMIX) % 78 78 73 IMIX board target 75% by year-end 2024 1 Increase in training expenses driven by methodological adjustment towards industry practice to include overhead expenses. 2 Last year reported as training days per employee; definition adjusted to market practice in 2021. 3 The percentage of employees with at least one training can be higher than 100 percent due to the reporting period calculation methodology incl. employee in- and outflows. 40

Sustainability Report 2021 GRI 405-01 02.4 Human resources 01 Introduction Building confidence in our purpose, reaching over 50 operating entities Shaping how we work and do business: and innovation, resulting in simpler and prompter tomorrow must start with and 137,000 participating employees. Events our new Ways of Working (WOW) service offerings for our customers, resilience from 02 Measuring and sought to include real customer voices through In 2021, we introduced more flexible, collaborative the impacts of future crises and a faster and managing sustainability 148,7081 employees who are stories, podcasts and panel discussions to have and agile ways of working that empower flatter organization. COVID-19 required us to Sustainability in our business activities a positive impact on employee engagement and our employees, customers and organization. respond rapidly to unexpected situations and new 02.1 Sustainability in insurance part of our diverse global customer centricity. These new ways of working aim to enhance priorities. The challenges increased the pace of 02.2 Sustainability in workforce. Allianz fosters Inclusive Meritocracy – a culture where employee engagement, productivity change with respect to how we work together and proprietary investments engage with each other and our stakeholders. 02.3 Sustainability in asset management a culture and working people and performance matter Sustainability in our organization environment where people Inclusive Meritocracy is the term we use to The focus areas for our WOW standards 02.4 Human resources describe a culture and working environment 02.5 Customer satisfaction and performance matter and where people and performance matter. It was are centered across five categories: 02.6 Environmental management where everyone has a voice. developed under the umbrella of the Renewal 1. Flexible work and reduced travel Agenda in 2015 and resulted in the creation of see page 42 Customers 03 Strengthening We take a strong stance a key index in the Allianz Engagement Survey, our foundation regarding gender equality, the Inclusive Meritocracy Index (IMIX). 2. Digital tools Inclusive Meritocracy describes a corporate see page 42 04 Climate-related diversity and inclusion (D&I), culture of mutual trust and respect, empowerment 3. Health and well-being financial disclosure training and development, and collaboration where diversity is appreciated see page 47 05 Our universal principles and employee engagement. and customer satisfaction is a high priority. 4. Learning WOW– Performance has an impact on rewards and see page 44 Ways of The health, safety and well- is encouraged by clear two-way leadership 5. Organization and culture being of our employees is of communication. The IMIX measures the see page 41. working progress we are making in embedding Inclusive utmost importance. Meritocracy. It looks across ten aspects covering Employees Organization leadership, performance and corporate & Culture Our purpose, ‘We secure your future’ reminds culture. Performance against employee us why we exist as a company: to secure our engagement targets is among the sustainability customers’ future and give them confidence factors considered as part of the variable Resilience in tomorrow. This purpose anchors the Group component of Board member’s remuneration strategy, employee value proposition, brand (see section 02.4.3). promise and customer experience principles and The results of the 2021 IMIX can be found drives our decisions and actions. We held our along with other results of the AES on second global Purpose and Strategy Day in the page 46. autumn of 2021 to engage our employees in 1 Figure includes only employees in core business; total employees (core and non-core): 155,411. 41

Sustainability Report 2021 02.4 Human resources 01 Introduction Flexible working In 2021, we rolled out two new policies that Our workforce – diverse in many forms Our new global WOW standards have been 65 % underpin the Allianz Code of Conduct: Our global workforce consists of 155,411 02 Measuring and designed to provide an environment where our employee time was spent working from home • The Allianz Diversity and Inclusion Policy (2020: 150,269) people, including 52 percent managing sustainability employee needs are taken care of. Flexible work 1 2 describes our rationale for D&I and how (2020: 51 percent) women and spanning five in RACo entities by the end of 4Q 2021. Sustainability in our business activities comes in different forms and we have learned we foster diversity in all its forms generations.3 We have people from 67 (2020: 59) 02.1 Sustainability in insurance that hybrid teams help us build a more resilient • The Allianz Anti-Harassment Policy that nationalities among our executives, representing 02.2 Sustainability in organization. This will become our new normal. 99 % outlines our global zero tolerance standard the rich cultural diversity within Allianz Group. proprietary investments Employees are offered the opportunity to spend employees in RACo entities have been offered against sexual and other harassment 02.3 Sustainability in asset management a minimum of 40 percent of time working from a technical package to work from home with and discrimination. Sustainability in our organization home depending on their position e.g. mobile 40.7 02.4 Human resources worker, office worker etc. The shift has also connectivity to the Allianz server by the end Our commitment to D&I comes from our top Average age 02.5 Customer satisfaction significantly reduced business travel compared of 4Q 2021. management. More than 20 CEOs and Board (2020: 40.6) 02.6 Environmental management to 2019. Members from Allianz entities around the globe With the introduction of cross-border remote 02.4.1 Diversity and inclusion (D&I) are part of the Global Inclusion Council which 03 Strengthening work guidelines, our mobile work policy standard A diverse workforce enables us to has been in place since 2007. It oversees the 67 our foundation allows employees to work up to 25 days a year implementation of our D&I strategy. understand and fulfil the needs of We engage with employees through inclusion Nationalities represented 04 Climate-related abroad in accordance with local regulations. our equally diverse customer base. networks which aim to raise awareness, support in executive positions financial disclosure The flexibility of this standard offers the potential We believe in equality of opportunity employees, advocate for change and help shape (2020: 59) to enhance the employees’ work-life balance. the D&I agenda. They bring together colleagues 05 Our universal principles As part of our new WOW, we are enabling our and continue to create an inclusive who share an identity or experience and their 20+ teams to collaborate and work remotely by environment to equip our employees friends and allies. At the global level, three new investing in technical equipment (e.g. laptop, for the challenges of the future. global networks were established in 2021 Local LGBTQ+ networks mobile phone, screens, headset etc.) and D&I are important material issues for Allianz, bringing the total to five, each focused on a key collaboration tools (e.g., global roll-outs of O365). as identified in our 2021 materiality assessment. priority for D&I. The number of local employee Increasing the diversity of our In-office meeting spaces will be equipped with The topic covers commitments and activities to networks grew from 15 to more than 50. leadership and management technology to support hybrid meetings and create a fair and inclusive working environment Our target for December 2021 was to have promote an inclusive environment across hybrid where everyone can succeed regardless of Global employee networks 30 percent of women on the Allianz SE Board teams. In addition, new global workspace designs gender identity or expression, age, ability, • Allianz NEO – gender inclusion of Management and Supervisory Board and promote a culture of collaboration, sharing and sexual orientation, ethnicity or cultural 40 percent women in our talent pools. We are co-creation. background among others. • Allianz Pride – LGBTQ+ inclusion proud to have achieved 33.3 percent women • Allianz Engage – generations inclusion on the Allianz SE Supervisory Board and 43.4 Diversity and inclusion strategy • Allianz GRACE – ethnicity and percent of women in our talent pools. We have Our D&I strategy, is built around three pillars: cultural inclusion 27 percent of women on the Allianz SE Board of employees; customers; and brand and reputation. • Allianz Beyond – disability inclusion Management as of January 2022, beginning a It aims to embed D&I across the whole business, year of transition towards our target of 30 percent helping us to define our priorities and drive our women which we are confident we will reach. 1 Renewal Agenda Companies represent the largest flagship entities of Allianz Group. D&I ambitions. 2 Proportion of employee time spent working from home is regularly assessed on entity level and is only partially based on actual data. 3 Our five generations are Gen Z, Millennial, Gen X, Baby Boomer, Silent Generation. 42

Sustainability Report 2021 GRI 404-2 02.4 Human resources 01 Introduction Allianz applies a Women in Leadership movement working to put disability on the Women in leadership forecasting model (based on people analytics) to agenda of business leadership. Allianz UK joined 02 Measuring and identify hiring needs and thus increase the ratio the Race at Work Charter and has committed managing sustainability of female executives. We have set new targets to the calls to action to ensure that ethnic Women in the workforce 51.6% Women in senior 30.0% Sustainability in our business activities and ambitions for December 2024 that extend minority employees feel included at all levels in 4 24.7% beyond gender representation and cover the the organization. (core business) executive positions 02.1 Sustainability in insurance dimensions generations, nationality and ethnicity, (2020: 25.8%) 02.2 Sustainability in LGBTQ+ and disability. As accountability is key, We continued to receive external recognition 51.6 % proprietary investments of our D&I efforts, for example: 02.3 Sustainability in asset management management has the target to drive development • We were listed in the Bloomberg Gender- (2020: 51.3%) Sustainability in our organization for all employees and ensure a robust succession Equality Index for the sixth consecutive year; 02.4 Human resources pipeline in line with our D&I targets and ambitions. 02.5 Customer satisfaction Read more about our D&I targets and • We achieved fifth place in the Global Refinitiv 02.6 Environmental management ambitions on our website. Diversity and Inclusion Index, two ranks up Female managers3 38.6% Women in talent pools 43.4% from 2020; and (2020: 42.3%) 40.0% 03 Strengthening Fair and transparent reward • We were placed second in the our foundation We emphasize equality and fairness by ensuring BeyondGenderAgenda German Diversity 38.6 % 04 Climate-related the same pay for equal work and work of equal Index (ranking the DAX30 companies). (2020: 38.2%) financial disclosure value for all employees. Allianz has committed In 2021, we embarked on the EDGE (Economic to the ambitious goal of achieving equal pay Dividends for Gender Equality) certification 05 Our universal principles globally by the end of 2021.1 To this end, we have 2 process. The process is designed to help us introduced an annual global pay review and measure, monitor and understand how we are best practices to monitor fair pay across the progressing on gender equality and equal pay Women in executive positions Women in Allianz SE Board 30.0% organization and prevent equal pay gaps from globally compared to external standards and 5 (Top Management) of Management arising in the future. In 2022, we will introduce benchmarks. We are now globally EDGE Assess (2020: 20.0%) 20.0% pay equality KPIs in line with the World Economic Certified for our Insurance Business segment and 31.6 % Forum (WEF) requirements. for the Global Business Lines Allianz Partners, External commitments and recognition Euler Hermes, Allianz Global Corporate & (2020: 30.4%) Specialty, Allianz Technology and Allianz Services. Complementing our commitment to the U.N. Further information about external Women’s Empowerment Principles and the U.N. recognition of our D&I efforts and EDGE LGBT Code of Conduct, Allianz became one of the please see People Fact Book 2021. Female full-time employees 14 Iconic Leaders of The Valuable 500, a global Women in Allianz SE 30.0% 33.3% 46.6 % Supervisory Board (2020: 33.3 %) 1 This involves pay adjustments in the year end cycle 2021/2022. Final data will be (2020: 46.3%) available in 2Q 2022. Accordingly, the target achievement will be reported in the next Sustainability Report. 2 https://edge-cert.org 3 Includes women functionally responsible for other staff, regardless of level, e.g. division, department and team managers. 4 (2024 target: 30 percent). 2021 Target Actual 5 From Jan 1 – Sep 30, 2021: 30 percent; from Oct 1 – Dec 31, 2021: 20 percent ; As of January 2022: 27 percent. 43

Sustainability Report 2021 02.4 Human resources 01 Introduction 02.4.2 Training and #lead Ignite is a global program designed to Our target was for 100 percent of leaders to attain developing our people 82 % equip the next generation of Allianz leaders with their Allianz Leadership Passport by the end of 02 Measuring and of the global Allianz workforce covered by the the knowledge, mindset and skills needed to lead 2021. As of the end of 2021, 11,850 (93 %) leaders managing sustainability Learning and development is a key SWP program by end of 2021 in Allianz’s inclusive, meritocratic environment. in scope have attained their #lead Allianz Sustainability in our business activities differentiator in the financial services (2020: 53 percent) In 2021, the program was completed by 99 Leadership Passport. 12,116 leaders in scope 02.1 Sustainability in insurance industry which is constantly changing participants, 47 percent of whom were women completed the digital learning journey on the 02.2 Sustainability in 1 (up from 27 % of 33 participants in 2020) across #lead Platform and 12,117 leaders completed proprietary investments in response to the evolving external 3,155 FTEs 13 operating entities. the #lead Experience virtual classroom. This 02.3 Sustainability in asset management context. Companies that develop #lead Empower is a group-wide program for equated to 339,264 hours of leadership training Sustainability in our organization skills for the long term will be best recruited and reskilled in strategically relevant experienced leaders that provides participants since the program launch. 02.4 Human resources prepared to respond to emerging trends talent segments in Allianz operating entities with development and coaching for their next The success of the #lead Allianz Leadership 02.5 Customer satisfaction and opportunities and to attract the in 2021 (2021 plan: 2,177). career step to a senior executive role as they Passport will be monitored in three key ways: 02.6 Environmental management We avoid ‘like-for-like’ recruiting and emphasize transition from leading teams to leading leaders Business impact – measured by engagement best talent. the acquisition of new and relevant strategic skills. and the business. In 2021, 34 of our high-potential survey progression and increase in learning hours; 03 Strengthening Supporting lifelong learning leaders started their #lead Empower journeys, our foundation Strategic workforce planning of whom 47 percent were women (vs. 39 percent Behavioral change – measured via assessment Understanding what the transition to a digital We focus on promoting lifelong learning in 2020). These leaders represented 15 countries tools (Allianz Multi Rater Assessment), 04 Climate-related future means for Allianz and its people is a through our global #learn initiative and offer and 21 entities. engagement survey and learning hours; and financial disclosure strategic priority. Digitalization and automation our employees one hour each week dedicated Satisfaction with program – based on the 05 Our universal principles will change the composition of the future to learning. We employ a wide range of learning The Allianz Leadership Passport Net Promoter Score (NPS) and evaluation workforce with some job profiles no longer and development approaches including on-the- We launched the Allianz Leadership Passport, form outcomes. existing, new profiles and capabilities emerging, job learning, mentoring and coaching, classroom a #lead program, in June 2020. The passport While it is still early to measure the business and considerable changes in existing profiles trainings, peer circles and digital/mobile learning. is the license to be a people leader at Allianz. impact and behavioral changes – given that the and skills. This will require major upskilling and Digital opportunities such as LinkedIn Learning Our people leaders follow a continuous learning program was launched in June 2020 – people reskilling initiatives to prepare the workforce for and our AllianzU Learning Platform (Degreed) are journey consisting of self-led gamified learning analytics has demonstrated that higher #Lead the future. Our main focus will be on developing available to all employees worldwide. on the #lead Platform and the #lead Experience, coverage goes along with higher employee digital, data and agile working skills. Skills like We have targeted programs in place for key an instructor-led virtual classroom. The passport engagement and well-being. In addition, IT security, communications and HR will also areas such as property and casualty, life and covers technology-focused Intelligence Quotient the current NPS is 74 and the average quality be essential. health, IT, strategy, finance, communications, (IQ) skills and people-focused Emotional Quotient rating is 84 percent. Our strategic workforce planning (SWP) approach market management and operations. (EQ) skills – from digital leadership to storytelling compares workforce supply by job profile against and resilience. After attaining their Leadership projected workforce demand over the next five Developing strong leaders Passport, leaders complete one hour per week of years to prepare our workforce for the future. As of Ensuring our leaders continue to develop their learning to ‘refresh’ their passport. 2021, strategic workforce planning is a structured leadership skills and mindsets to steer the annual process integrated with the annual transformation is critical for the success of the planning process. business and for empowering all employees to perform at their best. 1 Full-time equivalent. 44

Sustainability Report 2021 02.4 Human resources 01 Introduction Performance management Our approach promotes a continuous 1 02.4.3 Engaging our employees and transparent feedback performance and feedback culture that enables € 102.9 mn To deliver our purpose, drive long-term 02 Measuring and Performance management and transparent teams to exchange feedback on a regular invested in employee development managing sustainability feedback ensure progression for our employees basis. Feedback is most useful when it’s open, (2020: € 63.1 mn) business success and become a truly Sustainability in our business activities and Allianz as an organization. Our goal is to honest, constructive and forward-looking to help customer-centric organization, we must 02.1 Sustainability in insurance align individual priorities with Allianz’ strategic employees discover their potential. Three key 2 attract, retain and engage with talented 02.2 Sustainability in objectives and set the ideal framework for milestones for performance management 103 % candidates and employees around proprietary investments engagement and achievement at work. This way throughout the year cement this culture: 02.3 Sustainability in asset management our employees are in charge of their goals at any initial priority setting, mid-year check-in and employees took part in at least the world. Sustainability in our organization time and are able to pursue their personal best year-end review. We use Multi Rater as a tool to one targeted training session As candidates’ needs and values have changed, 02.4 Human resources with a clear vision in mind. gather multi-dimensional feedback at executive (2020: 79 percent) we have re-positioned Allianz’s employer brand. 02.5 Customer satisfaction levels to gain valuable insights into perceived We involved more than 80,000 employees and 02.6 Environmental management Recognizing that both people and performance strengths and development needs. In June 2021, 1 1,200 external candidates in co-creating and matter, we invest time and resources in developing 7,355 employees from 48 operating entities were € 716 re-shaping our global employer value proposition 03 Strengthening high performance at all levels. Our global rated and key performance and development investment per employee (EVP), resulting in the tag line ‘We care for our foundation performance management approach focuses actions based on the results were discussed at the in development and training tomorrow’ The new EVP addresses important on two key areas: ’What’ (outcome-oriented mid-year check-ins. In 2021, we piloted a flexible, (2020: € 442) job choice drivers such as career development, 04 Climate-related performance) and ‘How’ (behavior). It covers collaborative and continuous performance tool sustainability, employee well-being and D&I to financial disclosure nearly 60,000 employees with the goal of covering called Continuous Performance Management engage employees and encourage candidates to all Allianz’s employees worldwide by the end (CPM). The tool was successfully piloted by 34.7 join Allianz. 05 Our universal principles of 2022. the AZ SE Singapore Branch where it led to average hours of training simpler tracking of activities and more effective per employee The EVP was launched in March 2021 and rolled performance and talent check-ins. More pilots (2020: 20.7) out in all operating entities and on all offline/ will follow in 2022. online channels by Dec 2021. According to our 3 research, 73 percent of Allianz employees say 36,963 they would recommend Allianz as an employer to their family/friends and 73 percent of external LinkedIn Learning users logged in potential candidates would consider joining (2020: 38,613) Allianz because of the new EVP. Within people analytics projects on attrition, 199,932 we study reasons for leaving to develop target group oriented measures, improve the candidate viewed learning hours on journey (incl. onboarding activities) and increase LinkedIn Learning employee retention. (2020: 191,655) Attracting talent 33,378 1 Increase in training expenses driven by methodological adjustment towards industry practice to include overhead expenses. candidates recruited by Allianz in 2021 2 The percentage of employees with at least one training can be higher than 100 percent due to the reporting period calculation methodology incl. employee in- and outflows. (2020: 19,564) 3 A decrease in LinkedIn learning usage can be attributed to the increased engagement on AllianzU’s social learning platform, Degreed. 45

Sustainability Report 2021 02.4 Human resources 01 Introduction Aiming for true candidate-centricity Employee rights The Allianz Engagement Survey 2021 We expected a slight setback as uncertainty Applying for a job with Allianz has also never We ensure employee rights are protected The Allianz Engagement Survey (AES) is our after the initial phase of the COVID-19 pandemic 02 Measuring and been easier. In October 2021, we launched a new across all operating entities. Allianz was one formal employee platform for gathering reduced and these results are in line with general managing sustainability online application tool for internal and external of the first companies to create pan-European employee feedback and promoting a high- observed employee engagement trends. Sustainability in our business activities job seekers which requires only six fields to be worker participation standards and to establish performance culture. In 2021, 132,126 employees Survey dimensions showing the most improvement 02.1 Sustainability in insurance filled in to submit an application. We eliminated a European SE Works Council under the (2020: 132,593) from 64 entities (2020: 67) were Manager with 86 percent (2020: 85 %) and 02.2 Sustainability in certain application form fields, e.g. salutation, legislation for Societas Europaea (SE) companies. worldwide were invited to take part in AES.1 Collaboration and Communication with 80 percent proprietary investments and leveraged artificial intelligence when writing Local employee representation is widespread The response rate of 82 percent (2020: 85 %) is (2020: 79 %). 02.3 Sustainability in asset management job descriptions to reduce unconscious bias in the across Europe. The Allianz SE holding company considered very high among large, multi-national Based on the results, the overarching themes for Sustainability in our organization recruitment process. Continuing our path of true has a supervisory board made up of 50 percent organizations which typically reach 70 percent to creating impact on engagement in 2022 are: 02.4 Human resources candidate-centricity, we launched an online forum employee representatives. 80 percent. This reflects the continued interest of 02.5 Customer satisfaction on our global career website which connects our employees in having their say on the future • Reward and recognition, for example by 02.6 Environmental management users to Allianz employees where they can ask Social dialogue 2.0 development of Allianz. reviewing and fostering the Global Equal questions to foster transparency. We engage closely with employee representatives The 2021 results of AES were the second best Pay Initiative; 03 Strengthening to support change implementation, manage result in Allianz history. They showed a mainly • Implementing and monitoring the new WOW; our foundation Fostering the share ownership culture impacts on employees and promote opportunities. stable, partially consolidating trend in 2021 across Being simpler, faster and better for our customers Social dialogue 2.0 is our pan-European forum • Further engaging managers as the main 04 Climate-related means working together as one Allianz and, which has existed for over a decade. It supports the three key indices following a significant jump drivers of survey follow-up processes; financial disclosure as such, all our employees should benefit when the progress of the Renewal Agenda and our in 2020: • Continuously encouraging best-practice 05 Our universal principles we succeed. The Allianz Employee Share Purchase response to the increased pace of change of Inclusive Meritocracy Index (IMIX) – see definition sharing across teams and operating Plan (ESPP) is designed to enable our employees topics such as the digital revolution. The outcomes on page 41: 78 (stable compared with 2020). entities; and to share in the long-term performance of Allianz of the discussions in 2021 included among others Employee Engagement Index (EEI) – measures the • Extending the listening strategy to capture SE on the stock market as shareholders, owners the signing of the Equal opportunities, Diversity, degree of satisfaction, loyalty, advocacy and pride feedback and signals from our employees and employees. For every 3 Euro invested in and Inclusion Agreement. of Allianz‘ employees: 76 percent (2020: 78 %). through quarterly pulses. the share program, Allianz contributes 1 Euro. Work Well Index (WWi+) – measures the stress For further details about the Allianz Currently, more than 50 percent of employees level of employees for work-related strain Engagement Survey results, please across 42 countries (2020: 42 countries) are including the topics demands, rewards, control, see Table HR-12. Allianz shareholders. In 2021, the Allianz ESPP support, social capital and processes as well as was recognized externally by the Global Equity tool and resource availability. A higher index score Organization (GEO) winning the award for Best is associated with better employee health and Plan Communication. productivity: 69 percent (2020: 70 %). 1 The reduction of entities participating in the AES 2021 is based on two entities dissolved in 2021 and AZ China Life participating under AZ China Holding. 46

Sustainability Report 2021 02.4 Human resources 01 Introduction 02.4.4 Health and well-being Acting on employee feedback – four 3. Regular touch points to collect employee The health and mental well-being of Minimum Health Requirements feedback on their health and well-being 97 % 02 Measuring and our employees is a top priority. Our goal Based on the New Work Model pulse survey with We ask for direct employee feedback on health of Allianz’ operating entities successfully managing sustainability over 7,800 participants globally, we merged the and mental well-being initiatives on a quarterly implemented an EAP hotline. Sustainability in our business activities is to maintain and improve employee Work Well Program into four Minimum Health basis to identify needs and take appropriate 02.1 Sustainability in insurance health and well-being across our global Requirements to drive action. The four Minimum follow-up actions. The minimum requirement for 02.2 Sustainability in workforce by providing a consistent Health Requirements have been added to the operating entities is to collect feedback as part 95 % (12,117) proprietary investments 1 framework with minimum requirements pan-European agreement on work-related stress. of regular pulse surveys as of 2021. Our global of Allianz people leaders in scope have 02.3 Sustainability in asset management ambition is to gain more than 90 percent EAP completed the #lead experience, including a Sustainability in our organization for all Allianz entities to support our 1. Access to professional psychological awareness and 70 percent satisfaction with 02.4 Human resources new WOW. support for all employees worldwide feedback channels on health and well-being training module on personal resilience and 02.5 Customer satisfaction over the next two years. well-being to maintain and promote health 02.6 Environmental management Work Well We provide 24-hours anonymous, free-of- within their teams. charge professional psychological hotlines to all 4. Meeting Free Calendar Days @Allianz 03 Strengthening Our Work Well program, launched in 2015, employees to seek expert support and advice if our foundation aims to provide a healthy and productive needed. The implementation of such an Employee We aim to provide dedicated focus time for 39 workplace to enable our employees to reduce Assistance Program (EAP) is mandatory for all employees to simply concentrate on their operating entities participated in a pulse survey 04 Climate-related work-related stress. Ten minimum actions operating entities by 2022 as specified in the tasks and their health and mental well-being to assess employee awareness of EAPs and financial disclosure were rolled-out globally, including stress- global HR standard. to manage work-related stressors by regular satisfaction with feedback channels on health and awareness and leadership behavior trainings, Meeting Free Calendar Days @Allianz. Our well-being with a response rate of 49 percent. 05 Our universal principles flexible working arrangements and access 2. Training people leaders to maintain ambition is that more than 70 percent of to employee assistance programs. Efforts to health and well-being in their teams operating entities will have implemented 75 percent of employees were aware of the EAP implement the Work Well program globally Meeting Free Calendar Days by the end of hotlines and 64 percent were satisfied with the have paid off, demonstrated by feedback on We aim to train 100 percent of people leaders in 2022. As recognition of the contribution of our feedback options. implementation as measured through our AES. the first year of their leadership role to build up employees during the pandemic, the Allianz SE In 2021, the Work Well Index Plus (WWi+) score personal resilience and well-being among their Board of Management granted one additional was 69, one percentage point below the 2020 employees. The training is delivered through the day off for all employees globally in 2021 as 86 % result of 70 percent. This trajectory is in line with #lead module ‘Personal resilience and well-being’ special means of recognition. of operating entities rolled out the overall development of global absentee rates or other comparable training sessions, which all Meeting Free Calendar Days @Allianz. which were at 6.9 days (2020: 6.9) in 2021. people leaders globally are required to complete. You can find more details in our People Fact Book 2021. 1 EU-OSHA, Framework agreement on work-related stress. 47

Sustainability Report 2021 02.4 Human resources 01 Introduction Embedding health and well-being Looking after our people during Health and well-being managers at each the pandemic 02 Measuring and operating entity are responsible for driving We continue to closely monitor the impact of managing sustainability activities to implement the Minimum Health COVID-19 on our global workforce. The pandemic Sustainability in our business activities Requirements. They are required to do so cast a spotlight on the importance of health and 02.1 Sustainability in insurance in accordance with local requirements and mental well-being and we introduced various 02.2 Sustainability in regulations and the Allianz Operating Model measures to support employees and meet our proprietary investments to ensure each operating entity applies the business needs during the crisis. These included 02.3 Sustainability in asset management same high standard of local health and safety help/advisory lines for physical and mental Sustainability in our organization management. This includes activities to meet local health issues, preventative health measures 02.4 Human resources occupational health and safety standards. and special support for working parents such as 02.5 Customer satisfaction We also rolled out the Allianz health app ‘Well additional leave to enable parents to take care 02.6 Environmental management together’ The aim of this app is to combine the of unexpected childcare needs. 03 Strengthening topics of health and sustainability under one Convinced that vaccination will help to fight our foundation holistic platform to motivate our employees to the global pandemic, Allianz has conducted exercise more, live healthy and, at the same time, vaccination campaigns in 16 countries (Africa/ 04 Climate-related protect the environment. By the end of 2021, Ghana, Bulgaria, Germany, France, Japan, financial disclosure 24,000 users have registered on the app. Colombia, Croatia, India, Indonesia, Laos, Allianz is a signatory of the pan-European Lebanon, Malaysia, Austria, Poland, USA and 05 Our universal principles agreement on guidelines concerning work- Egypt) in 2021. In addition, booster shot related stress. We have placed great emphasis campaigns have started. on addressing the root causes of work-related stress, offering effective solutions and making changes to the work environment that enable employees to realize their full potential. Allianz SE’s management and the European SE Works Council have also signed a joint declaration on remote work. This guidance provides good practice principles for operating entities and employee representatives to use in the investigation and the deployment of remote work. The Allianz Group encourages Allianz operating entities and employee representatives to develop local applicable rules based on this guidance, adapted to local legislation and requirements. This serves as good practice guidance for Allianz’s companies deploying remote work and covers all aspects of flexible working arrangements outside Allianz premises. 48

Sustainability Report 2021 02.5 Customer satisfaction 01 Introduction At Allianz, we promise our touchpoints along five customer journeys. Table CS-1 customers confidence in If customers rate their experience with three stars Customer loyalty 02 Measuring and or less, we close the loop by following up with managing sustainability tomorrow. We deliver on them via a phone call to resolve the issue directly As of December 31 2021 2020 2019 Sustainability in our business activities this promise by earning their and gather more insights. Net Promoter Score (NPS) greater than local market % 84 79 70 02.1 Sustainability in insurance By the end of 2021, 41 operating entities and average or loyalty leadership in their market 02.2 Sustainability in trust through the quality of global lines had implemented the Voice of the Net Promoter Score (NPS) loyalty leadership in % 58 60 46 proprietary investments Customer program. This means we have rolled out their market 02.3 Sustainability in asset management our products, the level of our at least one of the five mandatory journeys at our Board target 50% by year-end 2024 Sustainability in our organization services and the expertise of major operating entities. 02.4 Human resources our employees. With Customer In 2022, we will switch to digital NPS tracking. Learnings gained through the Voice of the 02.5 Customer satisfaction Measuring customer loyalty Digital NPS allows us to measure customer loyalty Customer and NPS programs are also helping 02.6 Environmental management Centricity we strive to go above We use the globally recognized Net Promoter continuously, thereby eliminating seasonality us design the global Allianz experience for Score® (NPS) as the key metric for measuring and deepening our understanding of customers’ customers. In 2021, we rolled-out a set of global 03 Strengthening and beyond for our customers customer loyalty through customers’ willingness sentiment. Additionally, this new measurement guidelines to our operating entities to ensure our foundation and aim to outperform to recommend Allianz. Our target for 2021 was will set higher standards for our operating entities a consistent expression of our Allianz brand 04 Climate-related for over 75 percent of Allianz Group business (e.g.: broader set of competitors). Therefore we across markets. These cover how we interact financial disclosure the competition. segments to score above market or at Loyalty have adjusted our digital NPS targets accordingly. with customers over the phone, the visuals used, Leader position and 50 percent at Loyalty Our Group ambition is to reach 50 percent of communication tone and physical spaces. 05 Our universal principles Our customer experience strategy Leader position. We exceeded this by achieving loyalty leaders by 2024. Rather than selling individual insurance products, Customer satisfaction and loyalty lead to 84 percent outperforming (2020: 79 %) and Using data to create better our vision is to evolve our products into full profitable growth and are key elements in our 58 percent Loyalty Leaders (2020: 60 %). The main customer experiences ecosystems and offer customers relevant and strategy. Our ambition is to create meaningful drivers for our improvement were addressing trusted solutions. Through this we can give solutions and experiences that draw in customers. customer pain points to improve customer We use insights from Voice of the Customer and NPS customers confidence in tomorrow and live out We designed our customer experience framework service via the Voice of the Customer program, to improve our products, services, communications, our promise. In parallel, we are collaborating with to give customers a direct voice and enable product simplification, digital services, measures and processes. We combine and analyze sources of the Allianz Customer Model to systematically us to use their feedback in shaping local and in response to COVID-19 and targeted brand customer data in strict accordance with applicable analyze customer pain-points and together global experiences. communication campaigns. privacy laws (e.g. NPS, Voice of Customer ratings upgrade our customer journeys at the Group level. Listening to our customers and verbatim feedback) to prioritize and implement 75 % target structural improvements. At the local level, operating The closer we are to our customers, the more we entities use customer feedback to derive concrete can be there for them in moments that matter. for Allianz Group business segments to score actions. For example, we uncovered that many Listening to our customers is the starting point of above market or in a loyalty leader position complaints across customer journeys and markets our journey. Our Voice of the Customer program (by 2021) mention the speed of processes. This is something applies a holistic and standardized methodology we are working to improve at a global level with the to monitor and improve customer journeys by Allianz Customer Model. collecting real-time qualitative and quantitative 84 % feedback. After each touchpoint a customer of Allianz Group’s business segments scored has with Allianz, they are invited to state their above market or achieved a loyalty leader satisfaction on a five-star scale at predefined position in 2021 49

Sustainability Report 2021 02.5 Customer satisfaction 01 Introduction Transforming our business for customers Within this context, ACM was designed first for We have created 15 master products, which will Sales compliance We’ve listened to our customers and we know that Retail Property and Casualty lines and then reduce the number of products in most relevant Since 2011, Allianz has a global Sales Compliance 02 Measuring and they want us to sell simple products, use easy- extended to Health, Life, B2B2C, MidCorp, operating entities from more than 1200 in 2019 to Program in place, which describes standardized managing sustainability to-understand insurance language and provide Large Corporate and Reinsurance. It has been around 250 by 2024. processes and controls for communication, Sustainability in our business activities faster claims handling. They also want to be able continuously rolling out across Allianz operating We are scaling ACM via the Business Master monitoring, and review. 02.1 Sustainability in insurance to access their insurance details whenever and entities and, by end of 2021, was presented in more Platform (BMP). The BMP is a new global IT 02.2 Sustainability in however they choose. We have adapted our than 30 countries covering 95 percent of property solution for Allianz that digitalizes the business The program is managed by Group Compliance. proprietary investments business in response by simplifying and digitalizing and casualty retail gross written premium. requirements of ACM by integrating them with the In 2020, the Sales Compliance Framework 02.3 Sustainability in asset management our products, processes and platforms. As a result, A tangible example of how ACM is transforming IT Master Platform. It comprises a combination of was revised to reflect recent developments Sustainability in our organization our customers have a better understanding of our business is the new structure of our products. the scalable technological elements, systems and in regulatory standards and to condense its 02.4 Human resources what they are buying and greater access to advice We now focus on offering simple and intuitive services plus functionalities and configurations existing sales compliance requirements into 02.5 Customer satisfaction and support, while more efficient processes are products with a maximum of three variations defined by the ACM to better serve our customers, a new corporate rule, the Allianz Standard 02.6 Environmental management improving our customer service. and limited number of add-ons per product offer. intermediaries, partners and employees. for Sales Compliance. This Standard is now The Allianz Customer Model (ACM) is our end- Launched in Allianz Germany in January 2020, BMP also scales the ACM philosophy with one look the organization’s consolidated framework 03 Strengthening to-end global business model which puts the Privatschutz 2.0 was the first fully ACM-compliant and feel and one outstanding user experience for customer protection. It outlines rules and our foundation customer at the center of our business and product. After its introduction, Privatschutz 2.0 that gives our customer, agents and partners principles for compliant and ethical sales enables Allianz to be simple, digital and scalable. has generated 2–3 times more new business anywhere in the world the same experience and practices across the Allianz Group and specifies 04 Climate-related Simplifying and harmonizing our business globally compared to the previous product. It forms the satisfaction when easily interacting with Allianz. key principles to ensure appropriate fairness financial disclosure foundation for our global non-motor product. and transparency to customers, including in means transforming the whole value chain across For example, the claims tracker in BMP provides respect of the remuneration of distributors, 05 Our universal principles products, sales, claims and operations. This is full transparency to our customers throughout the and to address the sales compliance risks arising already providing real customer satisfaction. claims process. Customers can easily access the in its business segments. portal and navigate with just a few clicks to choose These responsible sales controls reflect Allianz’s the preferred settlement option and repair shop clear commitment to fairness and transparency Simplicity as a key driver when transforming our core and developing new models at scale. and receive confirmation of the repair appointment as formulated in Allianz’s Code of Conduct. The Allianz ACM facilitates the transformation in three main dimensions: with a rescheduling option. The BMP will be rolled This Code emphasizes that being fair and out for at least one retail line of business in five transparent with its customers about its products operating entities by the end of 2022. and services, including their limitations is the best guarantee to enjoy customers’ long-term trust. Simple Digital Scalable Trouble Fewer No Enhanced free Cost and Harmonized intuitive negative data processes revenue products and products surprises analytics without synergies processes legacy 50

Sustainability Report 2021 02.6 Environmental management 01 Introduction Environmental management performance data This section contains data related to the environmental performance of Allianz Group. 02 Measuring and managing sustainability Table ENV-1 Table ENV-4 Sustainability in our business activities EMS Coverage Energy sources 02.1 Sustainability in insurance As of December 31 2021 2020 2019 As of December 31 2021 2020 2019 02.2 Sustainability in proprietary investments Share of employees in scope of our environmental % 96 97 95 Electricity % 67.1 70.2 70.7 02.3 Sustainability in asset management management system (EMS) Fossil fuels % 11.5 11.0 14.0 Sustainability in our organization Long-distance heating % 19.8 17.6 14.9 02.4 Human resources Table ENV-2 02.5 Customer satisfaction Greenhouse gas emissions Other sources (incl. energy from own sources including % 1.6 1.2 0.3 02.6 Environmental management photovoltaic, internal waste heat) As of December 31 2021 2020 2019 Table ENV-5 03 Strengthening Scope 1 – Direct GHG emissions t CO₂ e 28,699 28,714 42,011 Renewable electricity our foundation Scope 2 – Indirect GHG emissions (market based) t CO₂ e 54,689 100,722 142,563 04 Climate-related Scope 2 – Indirect GHG emissions (location based) t CO₂ e 149,599 180,826 224,315 As of December 31 2021 2020 2019 financial disclosure Scope 3 – Other indirect GHG emissions t CO₂ e 55,359 73,916 149,459 Renewable electricity GJ 1,001,859 854,762 872,929 Scope 1–3, GHG emissions total t CO₂ e 138,746 203,352 334,033 Renewable electricity as a share of all electricity sources % 77 57 49 05 Our universal principles Board target 100% by 2023 Total GHG Emissions per employee t CO₂ e/empl 0.9 1.4 2.4 Table ENV-6 Overall GHG reduction per employee since 2019 % -60 -42 0 Business travel Board target -30% by year-end 2025 Table ENV-3 As of December 31 2021 2020 2019 1 Energy consumption Total travel km 226,377,786 356,560,721 918,693,524 As of December 31 2021 2020 2019 Road travel (incl. rental, fleet, and % 81.4 61.5 34.8 private cars) Energy consumption from our office buildings GJ 1,675,573 1,802,755 2,156,963 Air travel % 14.7 31.4 54.8 Energy consumption from our data centers GJ 267,675 317,533 379,351 Rail travel % 3.9 7.1 10.3 Total energy consumption GJ 1,943,248 2,120,288 2,536,314 Travel per employee km/empl 1,529 2,421 6,509 Energy consumption from office buildings GJ/empl 11.3 12.2 15.3 Total GHG emissions from business travel t CO₂ e 39,570 52,959 124,354 per employee GHG emissions from business travel per employee t CO₂ e/empl 0.3 0.4 0.9 Energy reduction from office buildings per employee % -26 -20 0 GHG reduction from business travel per employee % -70 -59 0 since 2019 since 2019 Target -20% by year-end 2025 Target -15% by year-end 2025 1 Energy consumption reported for data centers relates to our strategic data centers in Europe, the U.S, Singapore and Australia. At present, the energy consumption for some local data centers is included in the energy consumption reported for office buildings. 51

Sustainability Report 2021 02.6 Environmental management 01 Introduction Environmental management performance data 02 Measuring and Table ENV-7 Table ENV-9 managing sustainability Water consumption Paper consumption Sustainability in our business activities 1 As of December 31 2021 2020 2019 As of December 31 2021 2020 2019 02.1 Sustainability in insurance Total water consumption m³ 1,237,598 1,592,564 1,984,896 Total paper consumption t 8,466 10,139 10,859 02.2 Sustainability in proprietary investments Drinking water % 93.0 93.4 91.0 Paper sourced from certified % 76 73 67 02.3 Sustainability in asset management Rain water % 0.5 0.4 0.3 sustainable sources Sustainability in our organization Natural water % 6.4 6.3 8.6 Paper consumption per policy g/policy 54 70 81 02.4 Human resources Water consumption per employee m³/empl 8 11 14 Paper reduction per policy since 2019 % -33 -14 0 02.5 Customer satisfaction Water consumption reduction per employee since 2019 % -41 -23 0 Target -20% by year-end 2025 02.6 Environmental management Target -10% by year-end 2025 03 Strengthening Table ENV-8 our foundation Waste 04 Climate-related As of December 31 2021 2020 2019 financial disclosure Total waste t 12,064 14,395 19,396 05 Our universal principles Waste Incinerated % 36.2 36.2 39.8 Waste Recycled % 46.6 45.6 40.5 Waste to Landfills % 16.9 18.0 19.6 Special Waste Treatment % 0.3 0.2 0.1 Waste per employee kg/empl 81 98 137 Waste reduction per employee since 2019 % -41 -29 0 Target -10% by year-end 2025 1 Please note, that the water data (old absolute: 1,883,352 m³) have been restated for 2019, please see our explanatory notes. 52

Sustainability Report 2021 GRI 302-4 02.6 Environmental management 01 Introduction As part of our commitment Implementation of the EMS is monitored by GHG emissions Reducing energy consumption to a sustainable future, we the Group Environment Officer (part of Global 02 Measuring and Sustainability, see page 51) and supported by 60 % 26 % managing sustainability manage the most significant the Board of Management of Allianz SE. In 2021, 1 percent of employees were included under Sustainability in our business activities 96 reduction in GHG emissions per employee reduction in energy consumption in our office 02.1 Sustainability in insurance environmental impacts of the scope of the EMS (2020: 97 percent) achieved by year-end of 2021 buildings per employee during 2021 02.2 Sustainability in our operations and aim to (see Table ENV-1). against a target reduction of 30 percent per against a target reduction of 20 percent in proprietary investments continuously improve our Further information on our Group Environmental employee by year-end 2025 (2020: 42 percent office buildings per employee by year-end 02.3 Sustainability in asset management Guideline can be found here. reduction) against a 2019 baseline across Scopes 1, 2025 (2020: 20 percent reduction) against a Sustainability in our organization environmental performance. 2 and selected Scope 3 emissions (currently energy- 2019 baseline. 02.4 Human resources We strive to be a role model Raising standards through certification related emissions, business travel and paper use). This was mainly due to energy management and 02.5 Customer satisfaction We apply targeted environmental management This reduction is mainly the result of increasing local data center closures in remaining locations 02.6 Environmental management in delivering our own targets system (EMS) processes, certified to ISO14001 the share of renewable power in our energy as part of the Group’s data center consolidation 03 Strengthening on environmental protection standard, to improve environmental management mix, delivering a structured approach to energy combined with COVID-19 related measures. our foundation governance practices at our major locations. management and reduced business travel Details of Allianz’s energy consumption can and climate change in order to This began in 2017 with the certification of our SE resulting from COVID-19. We expect to include be found in Table ENV-3. 04 Climate-related influence others in our industry location in Munich. Mandatory requirements of GHG emissions from remote and hybrid working financial disclosure certification help strengthen our approach – for within scope of our future reporting to reflect Our operating entities are developing targeted and beyond to do the same. example, it is a requirement of ISO14001 to have upcoming infrastructure changes. approaches to reduce energy consumption. 05 Our universal principles a Board-level sponsor for our EMS. At Allianz Full details of our GHG emission disclosure, For example: Our carbon reduction strategy is designed to SE, this sponsor is our Chief Operations Officer. • Allianz SE has developed a holistic energy reduce greenhouse gas (GHG) emissions from Allianz Turkey became the latest entity to achieve including by Scopes 1, 2, and 3 emissions, material sources of Allianz Group operations ISO14001 certification of its Allianz Tower and are provided in Table ENV-2. concept to identify measures to reduce energy- emissions, namely energy use for office buildings campus locations in February 2021. Opportunities related GHG emissions and overall energy and IT, business travel and paper use. The strategy to secure environmental certification at other consumption at the Schwabing Campus. focuses on energy-efficient planning, construction locations will continue to be evaluated based on • Allianz Turkey is reducing its small regional and operation of buildings, sourcing green local context and operations. offices and moving to daily/hourly rent, thereby electricity and using carbon efficient vehicles. decreasing building energy consumption. The Allianz environmental management system • Allianz France is implementing the ISO 50001 (EMS) provides clear standards and controls, energy management standard to continuously supports environmental data collection, and improve energy efficiency of buildings with a promotes transparent reporting of environmental systematic approach for both premises and impacts across the Group. It guides the monitoring real estate portfolio. and management of our carbon footprint, use of energy and natural resources such as water and efforts to reduce waste. 1 To achieve 100 percent coverage of our global workforce, the indicators are extrapolated based on Group average figures. 53

Sustainability Report 2021 GRI 301-1 02.6 Environmental management 01 Introduction Renewable electricity for determining best-fit strategic renewable Green commuting Reducing water use energy solutions across the Group and engaging We have committed to develop Green 02 Measuring and 77 % with the unbundled renewable Energy Attribute Commuting Plans to limit emissions that arise 41 %1 managing sustainability Certificate (EAC) market in countries where the from our employees commuting to and from the Sustainability in our business activities of the electricity we used came from renewable energy market is less developed, as a workplace. Plans prioritize walking, using public water reduction achieved by year-end 2021 02.1 Sustainability in insurance renewable, low-carbon sources in 2021 temporary solution. transport and use of EVs with a range of actions against a target reduction of 10 percent per 02.2 Sustainability in against a target of 100 percent for 2023. Cutting GHG emissions from for operating entities to implement – from employee by year-end 2025 (2020: 23 percent proprietary investments (2020: 57 percent) (see Table ENV-5). business travel bike leasing to discounted public transport reduction) against a 2019 baseline. 02.3 Sustainability in asset management With this, we achieved our mid-term target of and EV charging stations. In 2021, 65 percent This reduction was achieved through water saving Sustainability in our organization 70 percent through a combination of strategic of employees (by headcount) across our measures applied across our locations combined 02.4 Human resources discussions with suppliers on ‘green tariffs’ 70 % operating entities were covered by a Green with COVID-19 related measures. For example, 02.5 Customer satisfaction (64 percent), expanding the use of on-site Commuting Plan. Allianz Turkey started to reuse rainwater for 02.6 Environmental management renewable technologies (0.04 percent) and first- reduction in GHG emissions from business travel cooling and landscape maintenance and Allianz time sourcing of ‘unbundled’ renewable Energy per employee achieved by year-end 2021 Reducing paper use Suisse is installing water-saving attachments 03 Strengthening Attribute Certificates (13 percent). against a target reduction of 15 percent per for taps. Water saving awareness campaigns our foundation employee by year-end 2025 (2020: 59 percent 33 % are also helping to address behavioral change As a signatory of the RE100 initiative, we have reduction) against a 2019 baseline. of employees. 04 Climate-related committed to source 100 percent renewable reduction in paper use achieved by year-end 2021 financial disclosure electricity (RE) for our group-wide operations Measures taken in response to COVID-19 played against a target reduction of 20 percent per policy Minimizing our water consumption is a key by 2023. With operations in more than 70 a material role in reducing business travel principle under our Group Environmental 05 Our universal principles countries, achieving this is complex and will emissions across 2020 and 2021. Managing by year-end 2025 (2020: 14percent reduction) Guidelines. Our office-based operations mostly require significant engagement and collaboration business travel post COVID-19 will be key for against a 2019 baseline. do not result in significant water use but we with electricity suppliers and landlords. In 2020, 2025 GHG target achievement. Our new Ways Our paper use is mainly linked to external reflect the increasing need to use water efficiently, we started to embed RE in the management of Working (see section 02.4) will capitalize on communications (e.g. marketing and customer especially considering the impacts of climate targets of our Board of Management and CEOs this shift to minimize emissions from business communications) with a smaller amount used change. This is especially important in areas at of Allianz entities. This includes annual targets travel by enabling more flexible and agile for internal office printing. Our efforts to reduce risk of water-stress such as India and Singapore. towards achieving 100 percent RE by 2023. working practices. paper consumption are underpinned by the Approximately two-thirds of Allianz employees In 2021, we made Energy Sourcing a strategic As part of our transition to low-carbon operations, increasing shift towards digital communication. are situated in countries with medium to extremely procurement category for the first time and we are shifting to hybrid and electric vehicles Looking ahead, we will also seek to maximize high water stress.2 established central governance and expertise (EVs) in our corporate fleet. For example, the share of paper used to come from certified within the Sustainable Operations office. This will AZ Technology has launched a new Mobility sustainable sources, which accounted for shift our energy procurement from locally-driven Policy for Allianz entities in Germany which will 76 percent of our paper in 2021. to globally-driven processes, increasing our see company cars with combustion engines impact and streamlining efforts. The new exchanged with plug-in hybrid or electric strategic energy procurement function will vehicles upon the termination of their lease. play a key role in our internal power-sourcing Further information about our fleet policies transformation journey. It lays the foundation can be found in section 03.6. 1 Please note that the 2019 baseline was restated and the restatement was not part of the audit engagement. Value before restatement: 1,883,352m³, value after restatement 1,984,896m³. 2 Based on analysis of World Resources Institute (WRI) 2019 water stress and Allianz Group 2017 headcount data. 54

Sustainability Report 2021 02.6 Environmental management 01 Introduction Driving down waste Action on plastic Allianz is also partnering with the international We have developed global guidelines on marine conservation organization, Sea Shepherd 02 Measuring and 41 % systematically working towards single use Global, to support cleaning the Mediterranean managing sustainability plastic free operations. We have introduced this Sea of plastic waste from abandoned fishing gear. Sustainability in our business activities waste reduction achieved by year-end 2021 topic in our reporting for the first time in 2021. Invested in forest protection since 2012 02.1 Sustainability in insurance against a target reduction of 10 percent per For example, AZ Technology has introduced 02.2 Sustainability in employee by year-end 2025 (2020: 29 percent plastic-free offices which aim to completely avoid Allianz has invested in projects to offset its proprietary investments reduction) against a 2019 baseline. single-use plastics within all Allianz Technology operational emissions since 2013, such as the 02.3 Sustainability in asset management We aim to minimize the waste we generate branches and subsidiaries. Allianz Partners also Rimba Raya project in Borneo, Indonesia. Sustainability in our organization and to re-use and recycle materials wherever launched a plastic reduction initiative to remove This area is rich in biodiversity including the 02.4 Human resources possible (see table ENV-8). Our office-based single-use plastic from all entities’ premises. endangered Bornean orangutan and was at 02.5 Customer satisfaction operations mostly generate household-type waste, We have defined ‘Action on plastic’ measures at risk of being converted into palm oil estates. 02.6 Environmental management in particular tackling waste from single use plastic three levels: By helping to prevent the deforestation of has come into focus. Waste reduction awareness nearly 65,000 hectares of peat swamp forest, 03 Strengthening campaigns are in place across Allianz entities to 1. Assessment of baseline usage of single use the project aims to avoid more than 130 million our foundation address behavioral change of employees. plastic across our operations. tons of carbon emissions in addition to protecting 2. Definition of targets and action plans per biodiversity and benefiting the local community 04 Climate-related operating entity, including allocation of through local revenues and construction of financial disclosure resources and launch of implementation. renewable energy plants, a health clinic and 05 Our universal principles two libraries. The Rimba Raya project meets 3. Progress assessed and reported to the project the requirement of standards under the UN’s management sponsor, action plan checked Reducing Emissions from Deforestation and and reviewed within reporting period. Forest Degradation Plus (REDD+) program. By the end of 2021, 67 percent of operating Emissions savings are independently measured entities (by headcount) had completed at least and certified once a year. As a result of our level one. investment, we retired carbon credits equivalent to 138,746 t CO e in 2021 (2020: 203,352 t CO e). 2 2 55

Sustainability Report 2021 01 Introduction 02 Measuring and managing sustainability 03 Strengthening our foundation 03 03.1 Corporate citizenship 03.2 Cybersecurity 03.3 Regulatory and public affairs Strengthening 03.4 Compliance 03.5 Tax transparency 03.6 Sustainable procurement 04 Climate-related financial disclosure our foundation 05 Our universal principles In this section, we continue the discussion of our approaches to integrate sustainability in the way we run our business in an ethical and responsible manner, and how we interact with our stakeholders. This covers topics that are important to them, as determined in our materiality assessment. Highlights include an overview of our Corporate Citizenship Strategy, our approach to protecting our customer’s and employee’s data and privacy, and how we manage cyber risks. It also includes our engagement with governments and regulators and how we ensure our behavior is compliant with ethical expectations. Finally, we touch on our approach to integrating sustainability in our procurement activities. An overview of the qualitative targets and achievements related to these topics can be found in section 05.1 56

Sustainability Report 2021 03.1 Corporate citizenship 01 Introduction Underlying our overarching social approach 03.1.2 Shaping a positive exposed shortcomings, risks, and inequalities 4 (see section 01.4), we have further evolved its Building confidence future for next generations in education both within and across countries. 02 Measuring and Corporate Citizenship Strategy, to fully live our in tomorrow… We have provided opportunities for people with managing sustainability responsibility towards society. We are deeply Today’s children and youth are the leaders, disabilities for many years. Now, as a Worldwide aware that our actions have the potential to … through our commitment to the employees, customers, and investors of tomorrow Paralympic Partner, we became one of the 13 03 Strengthening influence the future living conditions and well- U.N. Sustainable Development Goals but they face significant barriers to inclusion in Iconic Leaders of The Valuable 500, a global our foundation being of next generations. Our decisions today A key objective of our strategy is our a world beset with inequality and the impacts movement working to put disability on the 03.1 Corporate citizenship play an integral part in determining this future. commitment to SDG 8 – Decent work and of climate change. A recent study by Allianz agenda of business leadership. We have made 03.2 Cybersecurity Allianz is committed to having a positive social economic growth. We harness the efforts Economic Research1 found that the impact of support for people with disabilities a main 03.3 Regulatory and public affairs impact. We understand social impact as the effect of our global entities and accelerate the COVID-19 on the future outcomes for Gen Z component of our Corporate Citizenship Strategy 03.4 Compliance our global organization has on the well-being implementation of our Corporate Citizenship (those born between 1995– 2010) are immense, to focus our efforts to unlock barriers for this 03.5 Tax transparency of the community – from global society to local Strategy, we will focus on specific aspects especially in four focus areas of SDG 8: education, group in a more strategic and impactful way. 03.6 Sustainable procurement communities where we live and work. of decent work: The overall goal of SDG 8 labor, inequality, and health. Particularly striking – Decent Work and Economic Growth is to was the increasing high number of youths not in 03.1.4 Measuring our 04 Climate-related 03.1.1 Renewing our Corporate promote sustained, inclusive, and sustainable employment, education, and training (NEET) with social impact financial disclosure Citizenship Strategy economic growth, full and productive knock-on impacts for the longer term. We have a employment, and decent work for all. role to play in ensuring that the next generations To drive our contribution towards creating 05 Our universal principles We continued to evolve our strategy in 2021. can overcome the economic and social impacts systemic change across our target SDGs, we must Our approach is grounded in our company The target 8.5 is about achieving full and of the pandemic and other systematic social understand and improve the impact we create. purpose, our group-wide business strategy, productive employment and decent work risks. Our long-term approach as an investor But measuring and managing impact is not and the local efforts of our operating entities. for all women and men, including for and insurer is an opportunity to offer measures without its challenges, as the long-term effects young people and persons with disabilities, that can mitigate future risks and shape societies of interventions involving multiple stakeholders In our renewed outlook for corporate citizenship, and equal pay for work of equal value. for generations, for example through pension and addressing complex issues can be difficult we centered next generations in our actions. Another target we focus on is 8.6 – systems, environmental and climate protection, to measure. Common frameworks can serve to Based on stakeholder feedback we received, Substantially reduce the proportion of youth education and more. improve social impact measurement. For this we included people with disabilities as a focused not in employment, education, or training. reason, we developed the Allianz Social Impact beneficiary group where we as an organization 03.1.3 Unlocking barriers for Measurement Framework to support local entities feel we can further take responsibility than we We act on target 8.10 (Strengthen the in setting their ambitions and measuring and addressed so far. capacity of domestic financial institutions to people with disabilities reporting on the impact of corporate citizenship Our renewed Corporate Citizenship Strategy will encourage and expand access to banking, People with disabilities make up 15 percent activities locally. We measure: be published in the first half of 2022 and will set insurance, and financial services for all, of the global population; one billion people through our emerging consumer business and experience some form of disability.2 On average • Input – what we contributed targets for 2022 and beyond, as well as defining InsuResilience partnership (see section 02.1). • Output – what happened guidance and criteria for activities under SDGs 8 as a group, people with disabilities are more likely and 13. Our actions around SDG 8 will be closely to experience adverse socioeconomic outcomes • Impact – what has changed linked to the other lighthouse SDGs we than persons without disabilities. As COVID-19 We developed separate guidance and tools on have, SDG 13 Climate Action, and SDG 17 continues to have wide-reaching impacts across impact measurement to create a robust data Partnerships for the Goals. the globe, people with disabilities have been process for corporate citizenship activities across uniquely impacted by the pandemic – including our operating entities with a clear set of indicators 3 For young 1 Source: Allianz Research. health, education, transport and more. for reporting impact. 2 Source: World Health Organization. people with disabilities, the pandemic has 3 Source: World Bank. 4 Source: UNESCO. 57

Sustainability Report 2021 03.1 Corporate citizenship 01 Introduction 03.1.5 Employee volunteering ‘Our company offers enough opportunities for it will provide resources for local partnerships and donations me to environmentally and socially support the that focus on SDG 8. The fund is our key program 02 Measuring and community that we operate in’ as an indicator which supports strategic opportunities to deliver managing sustainability Allianz’s workforce has around 150,000 of employee satisfaction around volunteering. social impact beyond charitable donations by employees globally and local social impact In 2021 we scored 76 % (2020: 78 %). focusing on creating measurable impact through 03 Strengthening programs, employee volunteering and intersectoral partnerships. our foundation initiatives run together with operating entities 03.1.6 Embedding our global to 03.1 Corporate citizenship and our twelve Allianz-affiliated foundations local approach 03.1.7 Being a good 03.2 Cybersecurity contribute to our global impact. While some neighbor and a responsible 03.3 Regulatory and public affairs of the in-person volunteering activities and Global Sustainability is responsible for developing corporate citizen 03.4 Compliance programs were able to take place in 2021, our strategic approach and providing guidance 03.5 Tax transparency due to the ongoing pandemic, many of the to operating entities that are responsible for In addition to our forward-looking Corporate 03.6 Sustainable procurement onsite volunteering had to be cancelled or local delivery. Citizenship Strategy, we want to step up and postponed. Our combined contributions totaled Within our entities, Corporate Citizenship Leads support our communities where we live and work 1 mn); and 73 thousand 04 Climate-related € 28.2 million (2020: € 43.5 are responsible for locally embedding the global during times of need. This means aligning our financial disclosure hours (2020: 57 thousand hours) in corporate approach. In November 2021, we published a new activities with local priorities and leveraging the volunteering. In 2020 our contribution in terms of Social Impact Guidance for Corporate Citizenship expertise, resources, and assets of our operating 05 Our universal principles donations and volunteering hours was influenced Activities for local entities. It is designed to build entities to support communities – for example, by the COVID-19 pandemic, especially with a consistent understanding of social impact, contributing to the emergency response and the need for additional donations as well as a strategically channel resources towards the rebuilding communities following natural reduction in volunteering opportunities due to SDGs, monitoring of outcomes and encourage disasters and providing donations and employee lockdown measures. In 2021, these contributions collaboration and best practice sharing. In 2021 volunteering during the pandemic and the are returning towards pre-COVID levels. We use we launched a Social Impact Fund to replace humanitarian crisis in Ukraine. the Allianz Engagement Survey question: the previous Social Innovation Fund. From 2022, Table CC-1 Corporate charitable donations As of December 31 2021 2020 2019 1 1 Corporate Giving total (cash contributions) € mn 28.2 43.5 21.5 1 Basis of calculation changed in 2021 – data from 2019 and 2020 have been adjusted to the same basis. 58

Sustainability Report 2021 GRI GRI 418 03.2 Cybersecurity 01 Introduction 03.2.1 Data privacy Our group-wide privacy program continues to Privacy risk management 03.2.2 Data ethics Protecting our customers and their data mature as we aim to provide services digitally We identify and manage privacy risks at the Allianz values data as a key asset and strives to 02 Measuring and through our Digital by Default approach. operational process level to ensure they are position itself as a leading player in leveraging managing sustainability and maintaining trust in our processes The program includes embedding robust privacy measured, monitored and mitigated across our data in the most compliant and ethical way, are high priorities. Our customers, controls – such as privacy impact assessments and core businesses. Privacy Impact Assessments both as insurer and investor. We set up the Allianz 03 Strengthening employees and other stakeholders data ethics assessments – monitoring activities by (PIAs) of high exposure processes that use Data Ethics Project in response to the increasing our foundation expect their personal information creating a privacy-focused culture and the Allianz personal data, such as customer health data and regulatory initiatives and public debate on data 03.1 Corporate citizenship Digital Privacy Guidelines. This builds on the employee data, enable the early identification of ethics and Artificial Intelligence (AI) worldwide to 03.2 Cybersecurity to be treated with the utmost care Allianz Privacy Framework which provides: risks to ensure they are managed appropriately. strengthen the internal governance framework for 03.3 Regulatory and public affairs and we take this responsibility • a global standard for data privacy (the APS); In 2021, we developed a global privacy ‘blueprint’ AI and position Allianz in the regulatory field. 03.4 Compliance extremely seriously. • a Privacy Impact Assessment and risk of risk scenarios and control to support local 03.5 Tax transparency management process; compliance efforts with the APS across the entire In 2021, we established a Data Advisory Board 03.6 Sustainable procurement We are committed to protecting customer privacy Allianz Group. The blueprint provides a tool for (DAB) which covers data ethics and selected and we cooperate closely with other stakeholders • integration with Information Security identifying data privacy risks in local business data-related topics on a more permanent 04 Climate-related involved in the update and modernization core functions; processes and addressing those risks by mapping basis. The DAB consists of representatives from financial disclosure of European privacy legislation including • data privacy and protection monitoring them to standard controls. This does not replace operating entities and functions including industry associations, members of parliament activities; and existing compliance requirements under the APS Data Analytics, Data Architecture, Privacy and 05 Our universal principles and authorities. to conduct PIAs, rather it is a tool to supplement Regulatory Affairs. Its objectives are to: • training for employees on the appropriate • elevate data ethics and selected data and Strengthening our global processing of personal data belonging to existing data privacy compliance efforts and analytics-related topics in the governance and privacy framework customers, employees and third-party partners. help operating entities analyze and identify data decision-making processes of Allianz Group; The Allianz Privacy Standard (APS) is our global We monitor privacy governance activities and privacy risks in their business processes. standard for data privacy. It defines rules and processes across our operating entities through a We also commit to ensuring that adequate and • position Allianz as a leading insurer and principles for collecting and processing personal robust process which includes site visits, reviews of effective controls are in place to address data investor in the ethical and effective usage of data. The standard sets out six privacy principles program documents, interviews and expert privacy risks associated with the processing of data and Artificial Intelligence/Analytics; and that all employees must respect wherever they challenge calls. During the pandemic, site visits personal data by external suppliers on behalf of • support the overall sustainability efforts and are in the world: due care; purpose specification; were replaced by virtual meetings without any Allianz. In 2021, we developed new controls across activities of Allianz Group. reasonable limitation; transparency and openness loss in efficacy. We are now conducting activities the supplier life-cycle along with guidelines for In addition, the newly developed Allianz Practical towards employees and customers on where in-person as conditions allow. Despite travel supplier management which supplement the APS Guidance for AI was rolled out in various personal data is stored and used; choice and restrictions, at least 14 reviews were undertaken and are a mandatory part of the Allianz Privacy operating entities, accompanied by a dedicated consent; and privacy by design. in 2021. For comparison, 11 and 10 reviews were Framework. These controls are embedded in the communication and training program for The APS is accepted by our data protection undertaken in 2020 and 2019 respectively. Allianz Group Integrated Risk and Control System relevant employees. Privacy and Ethics Impact authority as our Binding Corporate Rules (BCRs). catalogue and Protection and Resilience Control Assessments were introduced to identify and These BCRs allow Allianz Group companies to catalogue to ensure close alignment between the address AI-specific risks. With these measures, lawfully transfer personal data from within the data privacy, operations and risk functions. data scientists, business and control functions European Economic Area to other jurisdictions, dealing with AI solutions are supported to embed where it is required for business purposes. We also ‘Ethics by Design’ in our organization and oversee publish a Privacy Notice which clearly states the challenges and risks in the area of AI. type of information we collect. 59

Sustainability Report 2021 03.2 Cybersecurity 01 Introduction Engaging and training employees monitored by a dedicated Chief Information Security Specific measures to improve security controls Developing new insurance In 2021, we provided refresher data privacy Officer (CISO) function and the Allianz Group are continuously evaluated and developed with solutions to manage cyber risks 02 Measuring and training for all employees involved in processing Board of Management. An executive accountability priorities assigned on a global, risk-based view. Allianz Global Corporate & Specialty (AGCS) managing sustainability personal data, where legally required. New regime supports the enforcement of the governance Measures focus on five key risk areas: reducing protects organizations around the world against employees continue to be onboarded with the framework for all entities. the likelihood of incidents; increasing detection cybercrime and digital threats. The types of 03 Strengthening global data privacy training, launched in 2018. The Allianz Information Security governance likelihood; reducing damage from incidents; risks it covers include first-party losses (e.g. our foundation Together, these trainings ensure employees framework comprises multiple layers of corporate streamlining compliance; and training/educating the business interruption, restoration and crisis 03.1 Corporate citizenship across the organization have a suitable level rules and processes. An overall policy establishes organization to further improve security awareness. communications) and third-party losses (e.g. 03.2 Cybersecurity of knowledge concerning the principles of core principles, roles and responsibilities as well All employees are required to participate in data breaches, network interruption and 03.3 Regulatory and public affairs confidentiality and data privacy. as the organizational framework for Information at least quarterly cyber-awareness training. notification expenses). 03.4 Compliance In 2021, we hosted our sixth Allianz Privacy Technology and Information Security within These include activities like simulated phishing We are constantly evolving our solutions to enable 03.5 Tax transparency Summit to discuss supplier management best Allianz Group. e-mails, awareness campaigns or regularly more customers to manage the risks. Over the 03.6 Sustainable procurement practices, anonymization of personal data, Associated functional rules provide further offered dedicated Information Security trainings. past three years, we have reviewed and changed privacy governance monitoring and the impact details and specific implementation guidelines We also participate in industry and global/ where applicable cyber risk exposure coverage 04 Climate-related of new data privacy laws. for operating entities. The functional rules are regional initiatives to support the security of the across P&C policies spanning commercial, financial disclosure complemented by detailed descriptions of overall internet ecosystem. best practices to be followed across 14 defined corporate and specialty insurance segments. 05 Our universal principles 03.2.3 Information security topics to ensure the ‘security by design’ principle. Managing cyber risk for our customers This is never a ‘set and forget’ process and we 1 Ransomware has become an increasing risk for are always looking to improve on the situation. The Allianz Risk Barometer 2021 Information Security is regularly audited, The cyber underwriting strategy, which has ranks cyber risk as the top three risk both internally and externally, and is trained businesses across all sectors. With no easy remedy been implemented to address cyber exposures, of doing business globally with more regularly in dedicated exercises across all layers in sight, the onus is on individual companies to is reviewed regularly and we are continuing the respondents highlighting it as a top risk of the organization. invest in cyber security to make life harder for journey of ensuring relevant policies are updated gangs to launch ransomware attacks. The number and clarified in regard to cyber risks. than in 2020. We continuously adapt our 03.2.4 Cyber risk of ransomware attacks may continue to increase 2 Cyber insurance offers much more than just approach with a key focus on managing before the situation gets better. Those companies cyber risk for our own company and Managing cyber risk in our business that take steps now to prevent attacks and mitigate compensation for potential financial losses. the impact will be far less likely to fall victim It also includes valuable prevention and incident for our customers through targeted Cyber risk is assessed and tracked as one of the to ransomware and will find it easier to secure response services that enable companies to insurance solutions. top risks faced by Allianz and is closely managed required levels of cyber insurance. As insurers, improve their cyber resilience and mitigate along eight key risk indicators across the Allianz we must continue to work with our clients using negative impacts after an incident. AGCS’s expert Information Security is the application of technologies, Group. Performance against these indicators is a combination of policy, pricing and service consultants also support customers to recover processes and controls to protect systems, networks, reported quarterly to the Board of Management improvements to help businesses understand the from an incident and to ensure proper disclosure programs, devices and data from cyber-attacks. and Supervisory Board. Monitoring for cyber need to strengthen their controls. of a privacy incident to regulatory bodies As a core business discipline, information security incidents and measures to prevent them are and customers. is managed globally through a robust and mature implemented at a global level and supplemented governance framework aligned with international locally where required, together with the local Read more about our new approach to standard ISO 27001. Our approach is closely Information Security Officers (ISOs) that exist in insurance cyber risks on our website. all Allianz operating entities. 1 https://www.agcs.allianz.com/news-and-insights/reports/allianz-risk-barometer.html 2 https://www.agcs.allianz.com/news-and-insights/reports/cyber-risk-trends-2021.html 60

Sustainability Report 2021 03.3 Regulatory and public affairs 01 Introduction As a financial services company, To keep abreast with regulatory changes, Engagement topics in 2021 we operate in a highly regulated we maintain a robust fact base around potential Our engagement with regulators and 02 Measuring and environment. This requires us to stay policy actions and assess the likely outcomes. policymakers included the following managing sustainability current with changes in the regulatory GRPA advises management to ensure the impact topics in 2021: of regulatory and political developments is • Sustainable finance regulation: 03 Strengthening and political landscape, but also to accounted for in the Group’s strategy and business our foundation help shape effective regulation by activities. It also supports local Allianz companies environmental and social taxonomy; 03.1 Corporate citizenship contributing through our knowledge with regard to regulatory and political strategy international sustainability reporting standards; 03.2 Cybersecurity (e.g. the interpretation and handling of upcoming sustainability disclosure and digitalization of and expertise. EU regulations or by sharing best practices) and sustainability data. 03.3 Regulatory and public affairs oversees and coordinates regulatory and political 03.4 Compliance Group Regulatory and Public Affairs (GRPA) is the • Supporting public-private cooperation: 03.5 Tax transparency center of competence and central coordinator for topics within the Group. financing the green and digital transitions 03.6 Sustainable procurement all regulatory and political management activities In our engagement with regulators and and achieving the U.N. SDGs. across the Allianz Group. GRPA is based at policymakers, we adhere to the Allianz Code • Prudential regulation: Solvency II review; 04 Climate-related Allianz’s headquarters in Munich with field offices of Conduct. E.U. Recovery and Resolution directive; IFRS 17. financial disclosure in Berlin and Brussels. The department’s purpose • Digital regulation: artificial Intelligence; is to enable Allianz to navigate and help shape data access and use; cyber resilience. 05 Our universal principles the regulatory and political environment. Guiding principles of our regulatory work Embracing Shared Good input, Best results regulation effort better for all regulation We realize the benefits Good regulation Good regulation We provide industry of building our business requires shared is about delivering knowledge and real- with security, and effort by all those benefits for all world data that support acknowledge the involved in designing, stakeholders like solution finding. opportunity cost of implementing and citizens, businesses bad regulation. evaluating policy and society. within a structured and open process. 61

Sustainability Report 2021 GRI GRI 205 GRI 206 GRI 102-16 03.4 Compliance GRI 205-2 01 Introduction Our success is built on the trust Allianz Group Code of Conduct The new CoC was rolled out across the Group in Anti-money laundering of our customers, investors, The Allianz Group Code of Conduct (CoC) is 2021 along with training for operating entities to In accordance with applicable legal requirements, 02 Measuring and at the core of our corporate culture. It outlines raise awareness about the principles established Allianz Group operating entities establish risk- managing sustainability employees and the public the basic principles and values that guide the by the CoC, namely mutual respect, integrity, based policies and procedures to prevent the have in our performance and everyday decisions and conduct of all employees. transparency and responsibility. Operating entities risk of money laundering and terrorism financing 03 Strengthening Every new joiner to Allianz is informed of their are in the early stages of planning and delivering based on customer identification, verification and our foundation integrity. This depends on obligation to adhere to the CoC during their this training. monitoring, as well as suspicious activity reporting. 03.1 Corporate citizenship the personal ethical conduct welcome presentation. As part of a project led by Zero tolerance of fraud and corruption We employ screening and monitoring systems and 03.2 Cybersecurity Group Compliance, the CoC was fundamentally Allianz takes a zero-tolerance approach to fraud processes to manage risks and ensure compliance 03.3 Regulatory and public affairs and capability of all Allianz renewed in 2020 and approved by the Board and corruption. We are committed to complying with anti-money laundering requirements and 03.4 Compliance management and employees, of Management to replace the previous version fully with local and international anti-corruption economic sanctions restrictions. 03.5 Tax transparency from 2006. The updated CoC considers feedback and anti-bribery laws. Our aim is to go beyond Respecting economic sanctions 03.6 Sustainable procurement and their desire to create value collected from global employees on value complying with the minimum standards of the for all stakeholders. perception and includes an introductory message law, such that the Allianz Anti-Corruption Program and embargoes 04 Climate-related from the Group’s CEO, a clear link to the new We have global policies and procedures in place financial disclosure company purpose and relevant topics beyond sets standards for a consistent and comprehensive to ensure compliance with trade and financial Compliance mission traditional compliance including feedback culture, group-wide approach in every jurisdiction. sanctions. These include requirements for the 05 Our universal principles Our Compliance function fosters a corporate diversity, inclusion and sustainability. The program requires that employees and certain screening of customer and counterparty names culture of individual and collective responsibility The CoC expresses Allianz’s commitment to third parties with whom Allianz does business against the sanctions lists provided by the U.N., for ethical conduct and adherence to the rules by: respecting a wide range of international human are prohibited from offering, accepting, paying E.U. and the U.S. Office of Foreign Assets Control • enabling our employees to understand and rights standards including: or authorizing any bribe or any other form of (OFAC). Allianz’s global requirements also include live by the rules and oversee that adequate corruption, be it with the private sector or with an enhanced review requirement for high-risk and effective processes are in place to • the Universal Declaration of Human Rights; government officials. transactions related to countries, sectors or parties ensure adherence; • the U.N. Covenants on Human Rights; Anti-Corruption training is compulsory for all subject to sanctions restrictions. • supporting the business to identify, assess and • The Core Labor Standards of the employees with online and classroom training Due to the nature of our clients’ underlying mitigate compliance risks; International Labor Organization (ILO); delivered in multiple languages. To ensure business transactions, some of Allianz’s insurance online trainings achieve acceptable levels of coverage and other business can relate to • maintaining a confidential channel to report • OECD Guidelines for understanding and awareness, they include concerns, act on them and protect those who Multinational Enterprises; a mandatory test component that must be countries, sectors or parties subject to sanctions speak up in good faith; and • Guiding Principles for Business and Human completed and passed for the training to restrictions. For example, where permitted, Rights of the U.N.; and be deemed to have been completed by the we may issue insurance for humanitarian services • interacting transparently and truthfully employee. In 2022, we will introduce Anti- provided by our clients in sanctioned countries. with regulators. • The Ten Principles of the U.N. Corruption training KPIs in line with the World The Allianz Sanctions Compliance Program aims Global Compact. Economic Forum (WEF) requirements. to ensure we respect all applicable restrictions F or further information about our commitment and that these high-risk transactions undergo to human rights, see section 05.6. No material violations of corruption laws enhanced scrutiny. or corresponding official proceedings were reported to Group in 2021 which would have been required to be disclosed to Allianz Group’s Audit Committee. 62

Sustainability Report 2021 GRI GRI 206-1 03.4 Compliance 01 Introduction Fair competition compliance with global programs in addition to additional opportunities to monitor, guide We believe fair competition and access to the local specificities. The changes also reinforce a and, if necessary, enforce remedial activities. 02 Measuring and market drives innovation, stimulates growth compliance-by-default and by-design mindset An additional benefit is the ability to learn from managing sustainability and benefits the consumer. As a global player through an evaluation of the status (e.g. standing) local and group best practices, further bolstering and a leading provider in our sector, we have of a compliance function within the enterprise our overall Compliance Culture. 03 Strengthening a responsibility to act in compliance with (e.g. the compliance function has a role/voice in As a matter of course, the development in the our foundation competition law. major strategic and operational considerations). ongoing proceedings in connection with the 03.1 Corporate citizenship To meet this responsibility, the global Allianz This holistic approach was rolled out in the second Allianz GI U.S. LLC Structured Alpha funds would 03.2 Cybersecurity Antitrust Program consists of the Allianz Antitrust half of 2021 through the Compliance Assurance also be monitored by the compliance function and 03.3 Regulatory and public affairs Standard and the Antitrust Code. The Standard of Risks and Effectiveness (CARE) program. considered as part of the regular reassessment of 03.4 Compliance lays out core principles and measures to be While CARE is primarily a self-assessment compliance risks. Major findings will be reflected 03.5 Tax transparency adopted across the Group in order to ensure exercise, it is reinforced with compliance reviews in the continuous improvement of our Compliance 03.6 Sustainable procurement compliance with antitrust law. The Code provides of operating entities, completed and coordinated Management System and compliance processes. a set of core behavioral rules that employees by Group Compliance. Compliance reviews are Voicing concerns 04 Climate-related must observe when dealing with competitors, completed on a risk-based, five-yearly cycle. financial disclosure customers and business partners. We provide This program is aligned to the CARE program Allianz offers employees multiple channels for 05 Our universal principles regular classroom and online trainings to top so that operating entities are encouraged raising concerns. Employees are encouraged management and exposed employees to refresh to exercise better rigor in the assessment of to report breaches and misconduct and and develop their understanding of antitrust control effectiveness against the background given information on where and how to do rules and how they affect their daily business. of anticipated confirmation activities. Group so. These include via management, speaking Questions and feedback received on the Compliance is itself subject to external, directly with Group Compliance, by e-mail, application of training content show the positive independent evaluation by one of the ‘Big 4’ and anonymously via the inhouse SpeakUp@ impact and efficacy of the training. companies. It is evaluated based upon CARE Allianz service found on our Group Intranet. elaborated criteria which have been certified as Some operating entities provide employees Managing compliance being compliant with regulations which define with a dedicated telephone hotline. All reported In 2021, the Compliance Function underwent requirements for compliance organizations. incidents are assessed, documented and a transformation in the way it assesses Group Compliance Reviews are supplemented managed according to internal guidelines and local Compliance Departments. In the past, by Targeted Reviews. These assess the and confidentiality is strictly adhered to. Group the focus was primarily on local implementation implementation status and effectiveness Compliance runs an annual awareness campaign of global programs (e.g. Sanctions, Anti-Fraud, of individual programs such as Anti-Trust, to remind employees of the avenues for reporting. Anti-Corruption, Anti-Money Laundering, etc.) Sales Compliance, etc. The benefit of this to ascertain the Compliance Culture of our multi-faceted review and confirmation strategy Operating Entities. Review procedures have been is that operating entities are monitored more expanded to confirm adequate compliance frequently and are engaged in more holistic scope, assure adequate skills to ensure complete assurance activities. Additionally, the frequent and effective scope coverage and confirm interactions with operating entities provide 63

Sustainability Report 2021 GRI 207 03.5 Tax transparency 01 Introduction COVID-19 dramatically Strategy, we embed environmental (E), social (S) sustainable business practices, Allianz promotes In 2021, we reported € 2.4 billion income affected governments’ finances and governance (G) aspects in all our business the B Team Responsible Tax Principles.1 tax charge on our profits and our Total Tax 02 Measuring and and corporate citizenship activities; responsible They provide a common framework of core Contribution amounted to € 17.9 billion. managing sustainability and raised the topic of tax tax is a fundamental part of this. Our Code of principles and practical commitments for Conduct sets out our values and principles and companies to demonstrate responsibility and € 17.9 bn 03 Strengthening responsibility up the agenda. serves as a guide to our behavior. These values sustainability in their tax approach. our foundation We see the taxes we pay and principles are also reflected in our tax Our strong commitment to transparency Total Tax Contribution in 2021 03.1 Corporate citizenship strategy, which requires full compliance with tax is reflected in the publication of our Tax 03.2 Cybersecurity as an important part of our regulations and tax laws in all countries in which 2 we operate. Our tax strategy has been approved Transparency Report. This provides insight into 03.3 Regulatory and public affairs contribution to the sustainable by the Board of Management of Allianz SE and our approach to taxation which is in line with our 03.4 Compliance development of the countries in is reviewed on an annual basis. It comprises the tax strategy and discloses an expanded country 03.5 Tax transparency following strategic priorities: based reporting. 03.6 Sustainable procurement which we operate. We believe In compliance with the OECD Base Erosion and • Full compliance with tax regulations, accurate Profit Shifting (BEPS) Actions, we prepare a 04 Climate-related fair, effective and stable tax and timely reporting and effective tax Country-by-Country-Report for the Group and financial disclosure systems are beneficial for both risk management. submit it to the German tax authority which 05 Our universal principles government and companies. • Safeguarding of the Group’s reputation as a shares the data with countries which have signed You can find details of income tax charge per responsible taxpayer. agreements allowing for exchange. country in our Tax Transparency Report 2021 Allianz acts transparently and responsibly in • Existence of a sound organizational set-up for At this time of public debate around corporate tax in the Download Center on our website. all tax matters and works closely with the tax appropriate tax management. behavior, we aim to provide transparency over our authorities to ensure that we pay our fair share • Full compliance of tax planning and optimization approach to tax and we encourage and support of taxes. Our processes and internal governance activities with tax laws, supported by solid others to do the same. To facilitate the debate implemented in line with our tax strategy are business reasons to sustain a credible long- with relevant data, Allianz contributed to the Total set to ensure full compliance in every jurisdiction 3 commissioned by the where we operate. term reputation with tax authorities. Tax Contribution study 2021 European Business Tax Forum (EBTF). As regards the Allianz Group’s tax strategy, • Disclosure of meaningful tax information in a the strategy has been approved by the Board transparent way. of Management of Allianz SE as the ultimate • Continuous improvement and harmonization decision taking body. Our tax strategy is of tax processes through simplification and transparent and closely aligned to our business digital solutions. strategy and also to our sustainability goals – As a member of the B Team, a coalition of which focus on the relevant U.N. Sustainable business and civil society leaders advocating Development Goals. Guided by our Sustainability 1 Find more details about the B Team Responsible Tax Principles here. 2 The Allianz Tax Transparency Report 2021 contains disclosures related to GRI 207. 3 Total-Tax-Contribution-A-study-of-the-largest-companies-in-Europe-2021-Report. 64

Sustainability Report 2021 03.6 Sustainable procurement 01 Introduction Our procurement processes Developing our supplier due diligence • Electricity consumption of Allianz (project Smart travel and fleet aim to deliver best value For suppliers to comply with our sustainability RE100) and our suppliers (Data Centers Where travel cannot be avoided, we launched 02 Measuring and standards, they must pass a solid supplier and Clouds) a Travel Awareness Campaign to support managing sustainability for money for our activities, screening with newly updated supplier questions • Travel employees to make sustainable choices on products and services while and a new Vendor Code of Conduct reflecting • Claims sustainability supported by Global business trips. Our travel tools offer a sort and 03 Strengthening current and upcoming international requirements Insurance Procurement transparency function based on CO2 emissions our foundation towards human rights, for example modern for flight search and we have negotiated CO reflecting Allianz’s high In addition to our Group approach, our operating 2 03.1 Corporate citizenship sustainability standards. slavery acts (Australia, UK) and the new supply compensations for easyJet and Lufthansa flights 03.2 Cybersecurity chain laws (Germany). entities develop local approaches. For example, (European routes only). In 2021, we reduced the 03.3 Regulatory and public affairs The goal is to develop a in the UK we have developed a sustainability carbon footprint of our fleet and rolled out a new 03.4 Compliance charter, training modules for purchasers and mobility policy limiting ordering to hybrid and 03.5 Tax transparency responsible global supply 100 % a whistle-blowing channel for employees of electric cars only and providing both charging 03.6 Sustainable procurement chain by collaborating with of our global suppliers, representing a total our suppliers. cards for public parking slots and charging spend of € 1.6 billion, have committed to Changing electricity consumption infrastructure for employees at home. 04 Climate-related our suppliers to deliver the Allianz Vendor Code of Conduct in 2021, financial disclosure sustainability targets and the same level as in the previous year. to green electricity Sustainable claims 05 Our universal principles searching for more sustainable To support our RE100 commitment to have 100 We want to encourage and support our providers Focusing on categories that percent renewable electricity across our global to develop a network and supplier base that products and services. have the greatest impact corporate portfolio by 2023, we accelerated supports our sustainable procurement ambitions. We already include sustainability questions in discussions with local utilities and global energy To improve sustainability in the core insurance Our strategy and commitment to sustainability Requests for Proposal (RfP) and sustainability consultants. As a result, we achieved 77 percent business, Global Insurance Procurement has taken are supported by our Procurement, Travel and criteria in awarding matrices in some procurement electricity from renewable, low-carbon sources the lead on a Group initiative around sustainable Fleet Policies. events and categories and we are now in in 2021 (see section 02.6). Our strategic data claims. Its aim is to decarbonize claims processes To develop our supplier network with increased the process of extending this to all relevant centers used 100 percent certified renewable and find ways to make them more sustainable. emphasis on sustainability and human rights, procurement categories. electricity in 2021. We are also exploring the The first focus has been on motor retail claims we must constantly analyze the sustainability inclusion of electricity consumption from suppliers’ and engaging third parties involved in the claims performance of our supplier network. We must To identify the priority procurement categories, cloud services into our corporate carbon footprint. process, such as repair shops. also continue to find more sustainable we initiated a structured approach together with Where suppliers use electricity on our behalf, we products and services by setting up major our environmental experts and procurement aim to encourage them to move to green electricity framework agreements and emphasizing category experts. Our aim was to identify those or to compensate adequately for the electricity sustainable products in our ordering offers for categories with the greatest impact on Allianz’s they consume. We are collaborating with industry Allianz employees. sustainability performance and customers as leaders for the provision of cloud services, such as To drive progress on a global scale, we focus on well as the potential contribution of procurement Microsoft Azure and Amazon Web Services. synchronizing activities and sharing best practices to sustainability-related projects. Through this across our international procurement network. process, we identified three priority areas: In addition, we are defining global responsibilities and priority procurement categories – such as energy (see opposite) – to optimize demand and deliver projects which support our operating entities. 65

Sustainability Report 2021 01 Introduction 02 Measuring and managing sustainability 03 Strengthening our foundation Climate-related 04 04 Climate-related financial disclosure 04.1 Highlights 04.2 Governance 04.3 Strategy 04.4 Strategy resilience, stress-tests and climate scenario analysis financial disclosure 04.5 Risk and opportunity management 04.6 Targets and metrics 05 Our universal principles This section is our climate-related financial disclosure and covers our proprietary investments as well as our insurance underwriting. As part of our commitment to transparency, we apply the recommendations of the G20 Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD). We strive to continuously enhance our climate change-related reporting and business practices to drive best practice and we collaborate with and support others to do the same. 66

Sustainability Report 2021 04.1 Highlights 01 Introduction As part of our commitment to Noteworthy developments in 2021 transparency, we apply the 1. In July 2021, Allianz joined forces with seven 02 Measuring and other leading insurers to form the U.N.- managing sustainability recommendations of the G20 convened Net-Zero Insurance Alliance (NZIA). Financial Stability Board’s See section 02.1. 03 Strengthening 2. Allianz has set decarbonization targets for our foundation Task Force on Climate-related 2025 for its listed equity, corporate bonds and 04 Climate-related Financial Disclosures (TCFD). real estate portfolio. Overall emissions are to financial disclosure We strive to continuously be cut by 25 percent against a 2019 baseline. 04.1 Highlights Targets have also been set for our infrastructure 04.2 Governance enhance our climate change- portfolio. See section 04.6. 04.3 Strategy related reporting and business 3. In 2021, the Supervisory Board of Allianz SE 04.4 Strategy resilience, stress-tests and established a Sustainability Committee to climate scenario analysis practices to drive best practice oversee Environment Social and Governance 04.5 Risk and opportunity management and we collaborate with and (ESG) issues and monitor the Board of 04.6 Targets and metrics Management’s sustainability strategy. 05 Our universal principles support others to do the same. See section 05.4. This report covers the proprietary investments 4. In section 04.4, we disclose the results of as well as the insurance underwriting of Allianz comprehensive climate scenario analyses on Group. The climate-related disclosures of our both sides of our balance sheet. two asset managers Allianz Global Investors and 5. We are working to improve the ecosystem for PIMCO can be found on their respective websites. climate and sustainability disclosures by being The Allianz Group Climate Change Strategy active in Open Source Climate (a group of commits us to reach net-zero greenhouse gas corporates to jointly build a ‘pre-competitive (GHG) emissions by 2050 across our business. layer’ of modeling and data), the European This is in line with the ambitions of the Paris Financial Reporting Advisory Group and Agreement to limit global warming to a the EU Platform on Sustainable Finance. maximum of 1.5°C by the end of the century. See section 04.3.3. Our priorities include exiting coal-based business models by 2040 at the latest, enhancing our systematic approach to investee engagement and policy advocacy, and implementing the TCFD recommendations. 67

Sustainability Report 2021 04.2 Governance 01 Introduction Given the materiality of climate Group functions investment portfolio in a holistic way. Within AIM, change to our business, we Addressing sustainability matters requires cross- climate and sustainability are steered at the 02 Measuring and functional collaboration and support across our IMB level with a Managing Director in charge of managing sustainability govern it at the highest level global operations. The Global Sustainability the implementation. and cascade responsibility function includes a team dedicated to Climate For our P&C insurance business, the ESG 03 Strengthening Integration and is responsible for coordinating Business Services team located at Allianz Global our foundation through to management. integration of sustainability and climate Commercial & Specialty (AGCS) is responsible aspects into core investment, insurance and for developing, coordinating and supervising 04 Climate-related 04.2.1 Overarching and business operation activities. It also acts as the sustainability and climate-related governance. financial disclosure secretariat of the Sustainability Board and meets For more details, see section 02.2 as well as 04.1 Highlights board-level governance regularly with its Chair. Further functions such the Allianz ESG Integration Framework. 04.2 Governance Allianz’s climate ambition, strategy and targets as Group Risk, Global P&C, Global Commercial, 04.3 Strategy are decided at the Supervisory Board and Allianz Investment Management and Group 04.4 Strategy resilience, stress-tests and Board of Management level and cascaded to Accounting and Reporting report on climate- 04.2.3 Climate competence climate scenario analysis related matters and support operating entities In addition to the governance mechanisms 04.5 Risk and opportunity management relevant functions. We describe this governance in integrating the Group’s strategic approach 04.6 Targets and metrics approach and how remuneration is linked to described above, we apply a variety of climate performance in section 01.3 and 05.5 of and policies. Additional bodies and functions, instruments to foster sustainability and climate 05 Our universal principles this report. such as Allianz Research, monitor and analyze competency at Board, senior executive and market, technological and regulatory trends and employee levels. These include: 04.2.2 Business and developments and share insights. • Extensive reports and briefings for top management-level governance Investment and insurance functions management, translating climate science Our key insurance operating entities, two major into business implications. In 2021, we thoroughly reviewed our approach • Sustainability roundtables of to identify and manage climate change risks investment businesses (Allianz Global Investors and opportunities. This review concluded that a and PIMCO) and investment management investment functions. program to develop and implement continuously function (Allianz Investment Management) have • Trainings for employees, investment-related improved tools, processes and disclosures – well-established climate and sustainability teams. functions, underwriters and sales agents. including appropriate governance structures At Allianz Investment Management (AIM), • Knowledge sharing with and upskilling of – should be implemented from 2022 onwards. the Investment Management Board (IMB) oversees local sustainability colleagues. The process is steered by a cross-functional group implementation of climate and sustainability • Conferences on sustainability topics which of senior executives at Group and OE levels. They strategy for our proprietary investment portfolio include Board member presentations; in include the Chief Risk Officer, Chief Sustainability of € 849.2 billion. This includes regular updates, 2021 we held the conference ‘Understanding Officer, Heads of Group Accounting and discussions and decisions on implementation, Climate Risks’ and two internal Sustainability Reporting, Global Property-Casualty (P&C), target-setting and compliance related to portfolio Forums open to all employees. Global Commercial, Centre of Competence Life decarbonization targets and measures. Analyses of and Health and one of the Managing Directors potential growth opportunities as well as asset of Allianz Investment Management. Progress is stranding in climate scenarios and engagement reported to the Group Sustainability Board. on climate aspects are also regularly addressed. The governance described refers to the status in In 2021, The IMB held a dedicated session on the reporting year 2021. physical and transition risk covering the proprietary 68

Sustainability Report 2021 04.3 Strategy 01 Introduction Since 2005, the Allianz Group 04.3.1 Our Climate Risks and opportunities also result from the • As a large-scale institutional investor with Climate Change Strategy Change Strategy cross-sectoral structural change stemming significant stakes in various economies, 02 Measuring and from the transition to a low-carbon economy. companies, infrastructure and real estate that managing sustainability has encouraged solutions for The strategy focuses on three areas: Anticipating These transition risks include the impacts of might be affected by the physical impact of the risks of a changing climate; Caring for the changes in climate policy, technology and market climate change and the transition to a low- 03 Strengthening tomorrow’s climate. It steers climate-vulnerable; and Enabling the low-carbon sentiment, and impact thereof on the market carbon economy. our foundation the uptake of climate-related transition. These strategy pillars are described in value of financial assets, as well as impact The largest risks in our risk profile are market risks, risks and opportunities in our chapter 01.5.3 of this report. resulting from climate change litigation. especially equity risk, credit and credit spread 04 Climate-related Impact on our business and impact of risks driven by assets backing long-term liabilities. financial disclosure insurance and investment 04.3.2 Climate-related P&C premium and reserve risks, resulting from 04.1 Highlights risks and opportunities our business natural and man-made catastrophes and from 04.2 Governance business. Regularly updated, Allianz Group is exposed to risks that are claims, uncertainty must be considered. 04.3 Strategy it is overseen by the Climate change will materially affect global influenced by climate change in a multitude 04.4 Strategy resilience, stress-tests and economies and Allianz’s lines of business. The risks of ways. We are particularly impacted in two climate scenario analysis Sustainability Board. and opportunities emerging today will increase key ways through our core business activities, 04.5 Risk and opportunity management over the mid- and long-term. They include acute both of which can influence the ability of assets 04.6 Targets and metrics Our 2021 materiality assessment confirmed the and chronic physical impacts on property and to generate long-term value: results of 2019 in finding climate change to be human health such as warming temperatures, 05 Our universal principles Allianz’s top sustainability topic according to extreme weather events, rising sea levels, • As an insurer providing insurance policies, e.g. stakeholder views on the importance of topics to intensifying heatwaves, droughts and potential covering health impacts, property damage or our business and to society. See section 05.2 for changes in vector-borne diseases. litigation claims, and through changes in the more details on the materiality assessment. sectors and business models we underwrite. Risk category Climate-related changes Acute First-order hazard/risk Second-order risk Like extreme weather, heat stress, etc. Like soil moisture deficit, coastal erosion etc. Physical Chronic First-order hazard/risk Like changing temperature patterns or rising sea levels, etc. Policy and legal Transition Technology Market Reputation Litigation for (enabling) GHG/emissions/ Litigation failure to mitigate, etc. Litigation for insufficient disclosure, adaptation, etc. 69

Sustainability Report 2021 04.3 Strategy 01 Introduction Internal analysis shows that our proprietary Long-term ambition and the Managing transition risks Seizing on opportunities investment portfolio, especially the listed equity Net-Zero Alliances Fundamental to managing transition risks Our business strategy includes systematically 02 Measuring and and corporate bonds asset classes, is most After the release of the landmark Special is an understanding of the pathways along leveraging opportunities to finance a low-carbon managing sustainability sensitive to climate transition scenarios. This is Report on Global Warming of 1.5°C by the which companies can, and should, develop and climate-resilient future, e.g. by investing mainly because equity investments are directly Intergovernmental Panel on Climate Change their business models to align with 1.5°C. in renewable energy, energy efficiency in real 03 Strengthening affected by climate-related impacts and changing (IPCC) in October 2018, we thoroughly reviewed Allianz continuously conducts detailed analysis estate and electric vehicle infrastructure and by our foundation market expectations and resulting market the implications for our corporate response. As a of energy-intensive sectors’ emission profiles, providing insurance solutions to protect against valuation. In contrast, for a long-term investor like result, we increased our ambition from ‘well below prototypical decarbonization pathways and physical climate impacts and support low-carbon 04 Climate-related Allianz, impacts on debt investments would be 2°C’ and committed to pursuing efforts to limit necessary technology shifts within sectors business models. For proprietary investments, financial disclosure felt first by a changing of spreads and to a lesser global warming to a maximum of 1.5°C by the and companies. the Allianz ESG Functional Rule for Investments 04.1 Highlights extent by impairment of debt service of assets. end of the century. This is postulated as the upper provides the foundation for integrating 04.2 Governance In section 04.4 we disclose different quantitative As part of the Glasgow Financial Alliance for climate-related issues. It comprises asset 04.3 Strategy and qualitative assessments for physical and ambition level of the Paris Agreement and the Net-Zero (GFANZ) Allianz is leading the work on European Union’s long-term climate strategy. sectoral decarbonization pathways to enhance manager selection and systematic integration 04.4 Strategy resilience, stress-tests and transition risks. development, understanding and uptake. As part of climate and sustainability factors into our climate scenario analysis As a major outcome of incorporating the investment decisions. 04.5 Risk and opportunity management As well as being impacted by climate change, assessment of climate-related risks and of this, we are also engaging with top-down and 04.6 Targets and metrics the choices Allianz makes about how to conduct opportunities into our business strategy, we co- bottom-up modelers of those pathways. Read more in our ESG Integration Framework its business have an impact on climate change, founded the U.N.-convened Net-Zero Asset Owner We use the results for portfolio analysis, for risk We have strategically invested in low-carbon 05 Our universal principles e.g. by investing in or insuring activities which Alliance (AOA) and Net-Zero Insurance Alliance management and to inform our engagement assets for over a decade. This includes renewable either cause or reduce GHG emissions. To manage (NZIA), thereby committing to setting long-term process and management decisions. Emissions energy, certified green buildings and green bonds potentially detrimental impacts on both climate emissions reduction targets for our proprietary footprints are used as a proxy for transition (see section 02.2.2). Our Sustainable Solutions and our business, we have committed to align investment portfolio, insurance underwriting and risks and are therefore covered in our program provides products and services that our proprietary investment and insurance business operations. decarbonization targets. create shared value by improving people’s lives underwriting portfolios to 1.5°C climate scenarios. The AOA is explained in more detail in section and/or delivering a positive environmental Allianz started to restrict financing coal-based impact. Allianz is one of the leading insurers 04.3.3 Our response 02.2 and the NZIA is explained in section 02.1. business models in 2015. Equity stakes have been In 2020, Allianz set intermediate targets following divested, existing fixed income investments put of low-carbon technologies. As part of our We embed the management of risks and the guidance of the AOA for the asset classes listed in run-off and no new investments have been Sustainable Solutions approach, we provide opportunities resulting from climate change equity, corporate bonds and real estate. In 2021, allowed since 2015. We do not offer insurance standardized and tailor-made insurance products in our overall business strategy. Measures we also set targets for infrastructure investments. for individual coal power plants or mines and we and are insuring renewables in 70 countries. include: developing and adjusting financial Our targets cover all four dimensions as described require all companies across our P&C insurance We also aim to reduce the impacts of climate products and services; updating policies and in the U.N. AOA Target Setting Protocol and are and proprietary investment portfolio to fully risks and incentivize preventive measures to processes; setting targets and limits; managing explained in detail in section 04.6.1. phase out coal by 2040 at the latest. Our criteria increase customers’ resilience and compensate for our operational climate footprint; and engaging are continuously tightened as explained in more climate-related damages. Examples include risk with internal and external stakeholders. detail in our public Statement on Coal-based consulting services offered by AGCS, our active Business Models. A more detailed explanation of support of the InsuResilience Global Partnership our coal approach is included in section 02.2. and our work with the German Corporation for International Cooperation (GIZ) to pilot innovative insurance solutions in emerging and developing countries. 70

Sustainability Report 2021 04.3 Strategy 01 Introduction Active company dialogue, joining forces Addressing climate change in our own achieved when anthropogenic emissions of GHGs Through our additional memberships, including and targeted engagement business operations to the atmosphere are balanced by anthropogenic The B Team and World Economic Forum (WEF) 02 Measuring and We actively engage investee companies and We rate impacts from climate change risks on the removals over a specified period. We support Alliance of CEO Climate Leaders, we encourage managing sustainability insurance clients using a variety of channels operations of the Allianz Group to be of limited this understanding in the context of our net- companies within our sector and beyond to step and formats. A key forum for engaging the materiality. The exposure of Allianz offices and zero commitment. We expect to define our new up and improve their climate strategies and 03 Strengthening 167 most carbon-intensive companies is Climate data centers to locations at high risk of extreme strategy on this matter in 2022. climate disclosures, as well as develop our own. our foundation Action 100+ (CA100+), a collective engagement weather events is contained and managed Partnerships, memberships and Allianz partners with international organizations platform made up of more than 600 global through risk mitigation measures as well as financial industry engagement to drive climate-smart investment and insurance. 04 Climate-related investors responsible for more than $60 trillion business continuity and disaster recovery plans. One example is the Sustainable Development financial disclosure in assets under management across 33 markets. We actively contribute to specialized initiatives Investment Partnership (SDIP) which aims to 04.1 Highlights Our goals and actions in CA100+ are explained The low-carbon footprint of our operations makes that focus on decarbonization, including: scale the use of blended finance in sustainable 04.2 Governance in section 02.2.3. us less prone to carbon price risk and we have • The Glasgow Financial Alliance for infrastructure investments in developing countries, 04.3 Strategy committed to reduce it further (see section 02.6). Net-Zero (GFANZ), NZIA, AOA and Science an initiative coordinated by the WEF with support 04.4 Strategy resilience, stress-tests and AIM has a dedicated engagement function Forest protection to protect carbon sinks Based Targets initiative (SBTi) represent from the OECD. Another example is our three- climate scenario analysis for proprietary investments. AIM systematically year strategic alliance with GIZ aimed at ‘Closing 04.5 Risk and opportunity management engages with external asset managers on and biodiversity the commitment to decarbonize our the Protection Gap’ around climate risks in 04.6 Targets and metrics climate integration, climate risk management, In 2019, we committed to pursue efforts to limit operations, proprietary investments and P&C developing countries. proxy voting processes and public discourse. global warming to a maximum of 1.5°C by the insurance underwriting. 05 Our universal principles In addition, our internal asset managers, AllianzGI end of the century and aim for net-zero emissions • CA100+ coordinates the investor community We are an active member of climate-related and PIMCO, and our insurance entities are active by 2050. We have claimed our operations to engagement of 167 of the largest global industry associations and initiatives including the stewards on climate-related matters. be ‘carbon neutral’ since 2012. This has been corporates on climate matters and Allianz Munich Climate Insurance Initiative, Chief Risk achieved through investments in the protection leads engagements. Officer Forum, Climate Finance Lab, Accelerating For more details on our engagement of existing rainforests (Wildlife Works Carbon • The Transition Pathway Initiative (TPI) assesses Sustainable Finance initiative, Geneva Association, approach please see section 02.2 and 02.3. and Rimba Raya), maintaining significant the climate performance of corporates across a ClimateWise, RE100 and others. For voting records of AllianzGI, please refer carbon sinks and biodiversity while empowering variety of sectors. For more details on stakeholder engagement to their overview web page. the local population through job creation, • The G7 Investor Leadership Network (ILN) see section 05.3 in this report. We are joining forces with other asset owners provision of health care and education and and Institutional Investors Group on Climate in encouraging companies to implement preserving biodiversity. Change (IIGCC) serve as networks to share and transition pathways. Our participation in the Looking ahead, we believe the focus should be develop best practice. Allianz is represented on Transition Pathway Initiative (TPI), CA100+ and both on reducing emissions in line with science the board of both. the Principles for Responsible Investment (PRI) and protecting natural systems. We have set • Open Source Climate is a group of corporates connects us with like-minded investors and offers corresponding targets to reduce emissions in to jointly build a ‘pre-competitive layer’ of opportunities for collaborative engagement. our investments and operations. Science has modeling and data that is globally shared and On decarbonization matters, the AOA strives to made clear that the 1.5°C target will require accessible. Allianz is represented on the board. be the link between these existing engagement an upscaled removal of emissions from the platforms, asset owners, target verification atmosphere into technical and natural carbon initiatives and tools and policymakers. sinks. The IPCC defines carbon neutrality as 71

Sustainability Report 2021 04.3 Strategy 01 Introduction Advocating for strong climate policy • The Investor Call for Ambitious Methane Towards open source climate data, models and analytics A supportive policy environment is crucial to Regulation for the Oil and Gas Industry; 02 Measuring and ensure the viability of a socially-just transition • We Mean Business letter to G20. More and more financial institutions are Allianz is heavily involved in the development managing sustainability to climate resilience and net-zero emissions. We also advocate for: committing to align their portfolios with the of the prototype along with other large Without decisive action by governments, • Embedding ‘net-zero by 2050’ in short- and Paris Agreement. One of the main barriers they corporations like Amazon, Microsoft and 03 Strengthening there will be insufficient frameworks and market face is accessing trusted data and transparent Goldman Sachs. OS-C also develops a our foundation incentives to bring down demand for emission- long-term governmental climate targets, analytical tools to quantify and act decisively prototype Implied Temperature Rating tool intensive products and to allocate capital in climate strategies and emissions reduction on climate-related risk and opportunities. in line with the TCFD’s work on Portfolio 04 Climate-related line with a 1.5°C trajectory. The private sector, plans, following latest climate science which Current regulation and methodologies are not Alignment. It will start with four sectors financial disclosure including insurers, can play an important role in requires at least halving emissions every standardized enough and the market for data (Automotive, Oil & Gas, Steel and Utilities). 04.1 Highlights raising government awareness and making the decade in line with pathways of no or low and tools is highly fragmented. To improve 04.2 Governance business case for getting on track to deliver the overshoot of a 1.5°C temperature rise. this, Allianz is supporting and contributing to 2. Allianz is a member of the Project Task Force 04.3 Strategy Paris Agreement. • Development of sector policies to promote a swift advancing climate disclosures in a number for non-Financial Reporting in the European 04.4 Strategy resilience, stress-tests and Asset owners like Allianz are in a unique position and just transition including the development of of ways: Financial Reporting Advisory Group (EFRAG) climate scenario analysis more granular short-, medium- and long-term which prepares the elaboration of possible 04.5 Risk and opportunity management in the financing value chain, especially those zero carbon infrastructure plans. 1. We are a member of Open Source Climate E.U. non-financial reporting standards 04.6 Targets and metrics setting themselves portfolio targets and therefore (OS-C), an initiative hosted under the in a revised Non-Financial Reporting being dependent on change in policy and the real • Stringent carbon pricing to internalize the Linux Foundation to enable like-minded Directive (NFRD). 05 Our universal principles economy to achieve them. external costs of pollution, including a phase- companies to build a ‘pre-competitive layer’ 3. We are the only insurer within the E.U. In 2021, we continued to advocate for a out of direct and indirect fossil fuel subsidies. of modeling and data that is globally shared Platform on Sustainable Finance which green recovery to build back better after the • Protection of nature and support for regenerative and accessible. OS-C links company data, acts as a permanent expert group of the COVID-19 pandemic. As part of the recovery, forestry and agriculture. climate analytics (scenarios and stress- European Commission to assist developing government spending and recovery packages are • Support for and potentially redirecting of tests) and scientific climate models in one the E.U.’s sustainable finance policies, playing a pivotal role in underpinning economies, subsidies to scale-up new technologies platform, allowing for global collaboration notably the further development of the infrastructures, jobs and livelihoods. Policy and that will provide solutions in hard to abate on this exceptional data challenge which will E.U. taxonomy. fiscal decisions taken now cut across numerous sectors, e.g. carbon capture and storage and accelerate innovation. policy areas and will either pave the way for green hydrogen. necessary structural changes – or delay action. Allianz has been vocal through engagement • Promotion of mandatory assured climate from Board-level to working-level interventions, reporting and transition plans like GHG joint calls to action and dedicated papers such as: emissions, associated reduction targets and alignment with 1.5°C trajectories. • The U.N. convened Net-Zero Asset Owner • Climate disclosure aligned with TCFD and the Alliance Discussion Paper on Governmental E.U. Sustainable Finance agenda, in particular Carbon Pricing; the E.U. sustainability taxonomy. • The WEF Alliance of CEO Climate Leaders’ • Sustainable finance regulation that provides a statement to G7; defined, science-based and reliable framework • German Business Statement for crisis via a common taxonomy of sustainability, management coordinated by Stiftung clarification of asset managers’ and investors’ Klimawirtschaft (formerly Stiftung 2 Grad); duties, inclusion of sustainability in prudential regulation, and enhanced transparency of 72 corporate reporting.

Sustainability Report 2021 04.4 Strategy resilience, stress-tests and climate scenario analysis 01 Introduction Climate change considerations from climate change, test our business strategy When we conduct analyses which assess 1.5°C Complementary bottom-up modeling for the most are an integral part of our and inform risk management and business scenario alignment, we adjust our scenario relevant exposures provides insights into climate 02 Measuring and decision making. selection using guidance developed by the AOA change risks at the level of individual investment managing sustainability insurance and investment We perform sensitivity and scenario analyses which is focused on 1.5°C scenarios with no or or underwriting projects and may support with time horizons up to 2050 and including low overshoot of 1.5°C of warming which limits contextualization of results from top-down 03 Strengthening strategy. scenarios ranging from 1.5°C to 4°C of average the need to remove GHG emissions from the analyses. This is showcased in the carbon price our foundation We apply various quantitative and qualitative warming by the end of the century. We make use atmosphere in the second half of the century. stress-test for listed equity and corporate bonds in approaches to carry out climate stress testing of internal models and external tools. While time When conducting outside-in impact scenario section 04.4.4, the inland flood risk case study for 04 Climate-related and scenario analysis in consideration of the long horizons naturally differ depending on the lines analysis, we use a broader range of scenarios real estate (see case study on page 80) and the financial disclosure time horizons over which climate change may of business under consideration, the range of in terms of temperature outcomes and analysis of inland flood and tropical cyclone risks 04.1 Highlights unfold and the high uncertainty over the direction scenarios we apply allows us to better assess the characteristics. Qualitative assessments are for property insurance liabilities in section 04.4.5. 04.2 Governance of future climate and economic developments. variety of risks and opportunities associated with conducted to explore to what extent and across Note that the analyses included in this report 04.3 Strategy Our objective is to foster risk awareness, build climate change. which channels climate change risks affect reflect our current approaches to climate change 04.4 Strategy resilience, stress-tests and expertise in the assessment of financial risks different aspects of our business, unconstrained risk assessments. Prevailing methodological and climate scenario analysis by the still limited availability of quantitative data limitations as well as the high degree of 04.5 Risk and opportunity management models. As an example, we report results from uncertainty inherent in any long-term analysis 04.6 Targets and metrics Aspects covered Scenarios used Scenario provider qualitative exposure screening for investments may still limit decision-usefulness of some results. 05 Our universal principles Transition and physical • Climate Biennial Exploratory Scenario Bank of England using a transition risk heat map in section 04.4.1 However, these approaches will change over time • General Insurance Stress-test 2019 and insights from a survey based assessment for as climate scenarios evolve in line with research, Transition and physical • Orderly Network for Greening the P&C retail business in section 04.4.2. developmental-stage methods improve further • Disorderly Financial System We deploy quantitative assessments for indicative and industry best-practices emerge. • Hot-house (for physical) sizing of our exposure to climate change risks. Transition • 53 scenarios used for Special Report Intergovernmental Panel on Climate A top-down approach is developed to assess risks on Global Warming of 1.5°C (no and Change (IPCC) (building on a multitude at the level of our balance sheet, in a first step low overshoot) of scenario providers) applying scenario data provided by the Bank Transition • Net-zero by 2050 International Energy Agency of England for the Climate Biennial Exploratory • Sustainable Development Scenario Scenario 2021 (CBES 2021) for the analysis of our investment portfolio presented in section 04.4.3. • Beyond 2˚ Scenario • Stated Policies Scenario Short-term Medium-term Long-term • 2° Scenario Transition • One Earth Climate Model University of Technology Sydney Up to three years Three – ten years Ten+ years Transition • RPS Inevitable Policy Response As defined, for instance, Needed for establishing As, for instance, required for • FPS in our standard Top Risk solvency considerations and strategic decisions and transactions Assessment process. capital adequacy. with investment horizons of Physical • RCP1 4.5 IPCC several decades like real estate • RCP1 8.5 and infrastructure. • RCP1 2.6 will be implemented in the course of 2022 1 Representative concentration pathway. 73

Sustainability Report 2021 04.4 Strategy resilience, stress-tests and climate scenario analysis 01 Introduction Overview of business-related climate risk analyses disclosed in this report Subject matter experts from across Allianz Technology and the Allianz Group assess 02 Measuring and Objective Name Scope Aspects covered Chapter each identified threat for relevance to Allianz, managing sustainability 1. Economic impacts (top-down) Qualitative risk Investments Transition 04.4.1 establish ratings for impact and probability of exposure screening occurrence, and define high-level mitigation 03 Strengthening 2. Economic impacts (top-down) Qualitative Insurance Transition 04.4.2 strategies. Climate-related issues considered in our foundation risk assessment the most recent assessment included adverse 3. Economic impacts (top-down) Quantitative climate Investments Transition, 04.4.3 impacts from increasing frequency and severity 04 Climate-related stress-test physical of extreme weather events on Allianz premises, financial disclosure 4. Economic impacts (bottom-up) Quantitative carbon Investments Transition 04.4.4 consequences of heatwaves on operations and 04.1 Highlights stress-test energy efficiency of data centers under rising 04.2 Governance 5. Economic impacts (bottom-up) Quantitative Insurance Physical 04.4.5 temperatures, and potential challenges with 04.3 Strategy risk assessment regard to the implementation of future energy 04.4 Strategy resilience, stress-tests and efficiency regulation. climate scenario analysis The threat of business disruptions and damaged 04.5 Risk and opportunity management Further examples of the application of scenario • For our business operations, threats as a or destroyed assets due to extreme weather 04.6 Targets and metrics analysis include: result of climate change and other extreme events already exists under current climate 05 Our universal principles • Prospective and existing infrastructure assets weather related events are assessed on conditions. Further increase of this threat due to undergo a thorough due diligence along a forward-looking basis via an emerging climate change is addressed through review and evaluation criteria, considering an asset’s GHG threat assessment that is conducted between update of risk mitigation measures and business emissions and potential impact on capital Allianz Technology and the Allianz Group. continuity and disaster recovery plans. Other expenditures and performance. Assets are This assessment aims to identify top emerging defined mitigation strategies targeted to mid- or required to have a clear and time-lined threats, including interdependencies, and the long-term issues range from developing solutions strategy showing how they will adapt to a definition of potential mitigation strategies, for managing data center load and cooling at decarbonizing world. following a multi-step process involving temperature peaks to designing implementation external market research, expert reviews concepts for regulatory requirements. • Allianz Real Estate regularly conducts an and surveys. energy and carbon performance overview of its direct real estate portfolio, including indicative decarbonization targets. Furthermore, Allianz Real Estate piloted the application of in-house climate scenario analysis for investment portfolios. This work builds on internal underwriting tools to assess location- based physical climate risks and paves the way to use them on the asset side as well. 74

Sustainability Report 2021 04.4 Strategy resilience, stress-tests and climate scenario analysis 01 Introduction 04.4.1 Top-down qualitative Methods According to report findings, the energy sector will We have used the findings of this macroeconomic transition risk exposure The analysis focused on the most important be hit hardest with an estimated cost of 900 billion analysis for internal analyses. For this year’s 02 Measuring and measures of climate policy currently enacted U.S. dollars. The steel sector follows with a cost of report, we introduce an overview of the exposure managing sustainability screening of investment portfolio or under discussion. These measures can be 300 billion U.S. dollars. The air and marine transport of our proprietary investment portfolios to the Allianz Research calculated the macroeconomic grouped into the following categories: carbon sector faces 55 billion U.S. dollars costs. Other sectors sub-sectoral risks shown above. We assume a 03 Strengthening negative impact of increasing regulatory intensity pricing; energy mix and efficiency mandates; at risk include automotive, chemicals, pulp and static portfolio where the sector allocation would our foundation on the global industry at nearly 2.5 trillion mobility regulations; and industry-specific taxes, paper, retail and machinery/manufacturing. remain the same and where risks are evenly U.S. dollars over the next decade, while also fines and levies. Costs for businesses depend on The report also presents a heat map showing spread within the sector. 04 Climate-related identifying opportunities for a variety of sectors. emissions’ costs, regulation and policy dynamics. transition risk severity for the next twenty Results financial disclosure The ultimate risk is a complete loss of value of years and drivers and mitigating factors for 04.1 Highlights certain assets or entire businesses. different sub-sectors. An extract of the results is Mapping listed investments to the heatmap 04.2 Governance shown below.1 provides a first indication in which sectors the 04.3 Strategy main exposures to transition risk are concentrated 04.4 Strategy resilience, stress-tests and in and how these exposures evolve over time on climate scenario analysis Assets and business impact under transition scenarios (source: Allianz, excerpt) the assumption of a static portfolio. Using this 04.5 Risk and opportunity management approach, less than 4 percent of our combined 04.6 Targets and metrics Global 2ºC 1.5ºC listed equity portfolio and listed corporate bond 05 Our universal principles 2020 2025 2030 2035 2040 2020 2025 2030 2035 2040 portfolio would fall in the category of being prone Energy Integrated oil and gas (M) (M) (M) T to high or very high climate change risk in a 1.5°C Oil and gas storage scenario considering the 2020 risk landscape. Energy and transportation This is mainly driven by the utilities exposure in Energy Coal and consumable fuels T, P T, P T, P T, P the corporate bonds portfolio. Over time this Fertilizers and share grows, led by exposures to energy intensive Materials agricultural chemicals (T) (T) (T) (T) (T) (T) (T) (T) P industries in the materials and industrials sectors. Materials Aluminum According to the heatmap, a step change in the Materials Steel exposures to high and very high climate change risk is to be expected after 2030 due to policy Industrials Industrial conglomerates tightening, particularly affecting the oil and gas Industrials Airlines (T) P (T) P related energy sectors. The share of sectors at Consumer discretionary Auto components high or very high risk would increase to around Consumer discretionary Automobiles P P, T T P P P, T P, T 18 percent by 2040. Utilities Electric utilities P (M) P P P (M) P P Naturally, our investment portfolio will not remain Utilities Renewable electricity T T T T static over this time horizon. Implementing our Risk enhancer: Risk mitigator: Risk: decarbonization strategy and the corresponding P = policy (P) = policy Low targets will also adapt both inter- and intra-sector T = substitution technology (T) = little substitution technology Medium allocation to provide effective mitigation against M = related market forces (M) = countering market forces High this exposure increase – our strategic response to identified risks is summarized in section 04.4.6. Very high 1 The heatmap was not updated in the last year. If it was updated, results might change. 75

Sustainability Report 2021 04.4 Strategy resilience, stress-tests and climate scenario analysis 01 Introduction 04.4.2 Top-down qualitative risk For the first round qualitative risk assessment, Result of analysis assessment for retail P&C we decided to keep the scope of the exercise 02 Measuring and straightforward with regards to lines of business Line of business Time horizon Divergent Net-Zero Current Policies managing sustainability Given their business focus and flexibility, and time horizons. Participants were asked to give Motor retail Short- to mid-term Negative Neutral we consider qualitative approaches as suitable their assessments for the retail motor and property 03 Strengthening tools to identify risks and opportunities as well lines of business and for two time horizons (2022 Long-term Negative Negative our foundation as response options from a strategic angle. to 2030 and 2031 to 2050). The survey was limited Property retail Short- to mid-term Positive Neutral They allow us to explore in principle a rich set of to Europe, our main market. Giving participants a Long-term Positive Positive 04 Climate-related transmission channels and interdependencies better understanding of how the scenarios might financial disclosure that do not have to be hardwired from the affect the business environment, we augmented 04.1 Highlights outset. Here, we report on a pilot survey- NGFS data with specific business drivers such Transition risks under the different scenarios can the transitions risks) which require corresponding 04.2 Governance based assessment covering our major P&C as the numbers of electric vehicles or targets for be further differentiated into three categories: insurance cover and offer new opportunities. 04.3 Strategy retail lines of business which we launched as retrofitting buildings. policy, technological and consumer preferences. Furthermore, increased NatCat risks are likely 04.4 Strategy resilience, stress-tests and part of our first iteration towards building a Risks and opportunities from climate change All three will weigh on future premium growth to lead to higher premiums. On the profitability climate scenario analysis comprehensive qualitative risks and opportunities were assessed on a four-point scale based on and profitability in retail motor. Higher carbon side, the picture is more nuanced. More extreme 04.5 Risk and opportunity management assessment framework. qualitative criteria such as shrinking markets, prices, for example, will translate into higher weather events will lead to rising claims, 04.6 Targets and metrics higher claims, dwindling reinsurance capacity or mobility costs. At the same time, expected high but pricing and portfolio steering should be Methods, assumptions and limitations changes that increase the market’s susceptibility public investments should make public transport able to neutralize the impact on the bottom line. 05 Our universal principles The Network for Greening the Financial System to disruption, also considering efforts that need to more attractive. Consumers will react to these Turning to the scenario ‘Current Policies (3.0˚C)’, (NGFS) provides six scenarios with differing levels be undertaken to adapt to a changing business shifts by reducing car ownership and individual assessments are similar, but transition impacts of physical and transition risks. For the qualitative environment. Ratings were established for volume mobility. These trends are likely to accelerate are seen generally as less severe; this is in risk assessment, we have chosen the two ‘extreme’ and profitability impacts as well as overall after 2030. For Allianz, technological change particular true for the short- to mid-term time scenarios of ‘Divergent Net-Zero’ and ‘Current consequences. The subsequent assessment of is the main driver for declining profits in motor horizon. As policies stay more or less unchanged, Policies’ to present two clearly distinguishable requirements towards risk mitigation considers retail, i.e., higher loss ratios. Although frequency the trends of less individual mobility and more development paths to the participants of the whether effective mitigation is provided by of claims might decline thanks to better climate efficient buildings will unfold more slowly. survey. ‘Divergent Net-Zero’ is characterized business-as-usual risk management practices, technologies, this is more than offset by severity, Therefore, the qualitative risk assessment expects by ambitious and immediate, but rather un- such as re-pricing or reinsurance, or whether i.e., higher costs for repairs and spare parts. almost no change in the business environment coordinated climate policies. The net-zero target extraordinary measures such as a business-line Over the long-term, this should be reflected in until 2030. Only after this the impact of these will be reached in 2050; physical risks will be low exit need to be taken, and whether a strategy on pricing and then technological impact turns trends will be felt, and in the same direction as in as compared to scenarios with more severe global how the business might respond to the risk has neutral. Physical risks like extreme weather events the ‘Divergent Net-Zero (1.5˚C)’ scenario (negative warming, but the lack of policy coordination already been elaborated. Ratings are commented are assessed to have only a minor impact on for retail motor due to declining premium volume across sectors results in rather high transition for proper contextualization of the survey claims in the motor business. and positive for retail property through rising costs, compounded by fast technological change. participants’ choices. While the ‘Divergent Net-Zero (1.5˚C)’ scenario premium volume). For the bottom line, profitability The scenario ‘Current Policies’, on the other is expected to have a clearly negative impact on impacts from more extreme weather events are hand, assumes that only currently implemented Results the retail motor business, the story is different for seen as rather neutral for both lines of business, policies are preserved, implying relatively slow We show a summary of results of the pilot retail property. Here, an overall positive impact even over the longer time horizon. This also technological change and low transition risks assessment, which was performed by the is expected, in particular for top-line growth, applies to the ‘Divergent Net-Zero (1.5˚C)’ but high physical risks; by end of the century, Allianz SE Global P&C leadership team, in the i.e. Gross Written Premium. The main drivers are scenario for the same reasons. global warming will exceed 3°C. following table. new standards for buildings (the policy aspect of 76

Sustainability Report 2021 04.4 Strategy resilience, stress-tests and climate scenario analysis 01 Introduction Outlook Methods, assumptions and limitations Market value loss in 2031 The first round of the survey-based qualitative The CBES 2021 provides three scenarios exploring % 02 Measuring and risk assessment for P&C retail business delivered different levels of transition and physical risks.1 -23 managing sustainability valuable insights. Moving forwards, qualitative The Early Action (EA) scenario assumes an risk assessments will be performed through early and orderly transition to net-zero by 2050, 03 Strengthening a step-by-step process for the most relevant with limited impact on economic growth. The -17 our foundation P&C business portfolios, expanding the scope late and disorderly transition to net-zero entails with regards to client segments and regions. a sudden contraction of the economy in the 04 Climate-related Further development of the approach is planned Late Action (LA) scenario in 2031, only slowly financial disclosure to make it fit for feeding into business strategy recovering to growth by 2050. Physical risks are -10 -10 04.1 Highlights and decision-making related to identified negligible in the EA and LA scenarios over the -8 04.2 Governance risks and also business opportunities (e.g., 2050 time horizon. Accounting only for climate 04.3 Strategy for product development, portfolio management policies that were in place before 2021, the No -4 04.4 Strategy resilience, stress-tests and and provision of risk consulting services). Additional Action (NAA) scenario is characterized -3 -3 climate scenario analysis Upon repeating the exercise in coming years, by limited transition risks and high physical risks -1 -2 04.5 Risk and opportunity management it will be interesting to see how these assessments which start to materialize over the second half of 04.6 Targets and metrics 2 change over time as climate policies and, the century. Fixed Alternatives Public Real Total 05 Our universal principles correspondingly, climate scenarios continue income /Other equity estate portfolio to evolve. EA2 A2 04.4.3 Top-down quantitative climate stress-test for investments Asset allocation based on market Market value loss in 2050 The initial assessment of financial risks from value as of December 31st 2021 % climate change on the Allianz investment % -15 portfolio we report here leverages on a rich set -13 -12 of climate scenario data developed by the Bank Fixed income -10 -10 of England for regulatory stress-test purposes 7% -9 in 2021 (Climate Biennial Exploratory Scenario, 6% Alternatives / other -8 5% Public equity -7 CBES), using input from NGFS reference scenarios -4 and various other sources. We may adopt other Real estate scenarios for similar top-down analysis going -2 forward, depending on analysis objectives. Fixed Alternatives Public Real Total 82% income /Other equity estate portfolio Early Action 2 ate Action 2 1 Please refer to https://www.bankofengland.co.uk/stress-testing/2021/key-elements-2021-biennial-exploratory-scenario-financial-risks-climate-change for a detailed description of the CBES 2021 scenarios. 2 Note that in the NAA scenario pathways provided by the BoE physical risks that are expected to materialize in 2050–2080 are mapped to 2020–2050, the time period used for the CBES 2021 exercise. We reverse this mapping for the purpose of our analysis, effectively moving the starting point of the NAA scenario pathways to 2050. 77

Sustainability Report 2021 04.4 Strategy resilience, stress-tests and climate scenario analysis 01 Introduction We use pathways for financial and rates in 2050 relative to 2031 drive losses from 04.4.4 Bottom-up quantitative Our starting point is the carbon footprint of macroeconomic risk variables extending fixed income investments above losses from real carbon stress-test for investments listed equity and corporate bonds portfolios, as 02 Measuring and from 2020 to 2050 as provided by the Bank assets, especially affecting valuations of long- disclosed in section 04.6 using Scopes 1 and 2 managing sustainability of England. These are expanded to adapt dated bonds held for liability matching purposes. This year, we publish the results of our second emission figures. On this foundation, we apply sectoral and regional coverage to the Allianz Real estate prices decline further, driven by costs assessment modeling carbon risks for our carbon price shocks derived from the climate 03 Strengthening investment portfolio. Simple proxy models are of energy efficiency improvements. investment portfolio using a bottom-up approach. scenarios developed by the Network for Greening our foundation applied for some asset classes where suitable The disruptive onset of climate policy In 2020, we started with listed equity and we have the Financial System (NGFS). Please note that we valuation factors are missing in the scenario implementation under the LA scenario in 2031 now also included corporate bonds. This stress- updated the scenarios applied for this analysis 04 Climate-related data. To separate the impact of climate change causes a contraction of the overall economy test complements top-down approaches such as according to the latest available reference financial disclosure risk from trend growth, stress levels are assessed entailing immediate market value losses those put forward by financial markets regulators. scenarios published by the NGFS in 2021. 04.1 Highlights relative to a baseline or counterfactual scenario of the investment portfolio of close to -10 We see merit in a model which gives us full Under the scenarios, prices materialize over the 04.2 Governance and hypothetical variable pathways that percent. Impacts are most pronounced for transparency on methods and parameters, is easy coming ten years and depend significantly on 04.3 Strategy would be expected in the absence of transition real assets, where a rise in risk premia adds to to implement and gives a first understanding of intensity of policy action and underlying scenario 04.4 Strategy resilience, stress-tests and or physical risk. Instantaneous stress on the direct consequences from transition policies on the evolution of potential climate impacts on our assumptions. The model assumes instantaneous climate scenario analysis static year end 2021 investment portfolio is emissions intensive sectors. Credit spreads rise portfolio. It also provides opportunities to cross- change of effective carbon prices applied to the 04.5 Risk and opportunity management assumed for the calculation of stress impacts, substantially for the same reason, driving losses check external methodologies and potentially portfolio, with no mitigation actions. 04.6 Targets and metrics without adaptation or mitigation actions. from fixed income investments. Economic recovery develop more elaborate models going forward. One major benefit of the CBES 2021 scenarios by 2050 and progress made in transitioning to To re-emphasize, this version of our assessment 05 Our universal principles is their comprehensiveness. This supports low-carbon production reduces market value Methods, assumptions and limitations focuses on listed equity and corporate bonds ease-of-use for stress testing as compared to losses for equity and alternative investments Our approach uses effective carbon prices as impacts only. It does not account for factors like other scenarios. The magnitude of outcomes, relative to 2031, whereas losses on real estate a proxy for policy intensity, e.g. actual carbon different physical asset bases and resulting lock- however, have to be taken with a pinch of salt investments increase above 2031 levels, pricing, energy-related subsidies and incentives, ins, cost pass-through abilities, price elasticities or accounting for the crucial role of assumptions similar to the EA scenario. While credit spreads standards for energy efficiency and emissions. regulatory relief. It also does not yet differentiate made in building the scenarios. This notably tighten by 2050, higher long-term interest rates between Scopes 1 and 2 emissions and, The fundamental idea is that an increase in importantly, it assumes companies do not respond includes assumptions for the counterfactual increase losses from fixed income investments emissions price entails a decrease in earnings to climate policy trends such as governmental net- scenario which have a critical impact on results. as compared to 2031, entailing about -12 at the level of individual investee companies. zero strategies by lowering their carbon exposure. Under the EA scenario, overall market value losses percent market value losses of the overall This decrease in earnings can be translated These factors will be incorporated in future more of the investment portfolio from gradual climate investment portfolio. into a stock market value loss based on price- elaborate versions of the assessment. The impacts policy implementation remain limited to below Under the NAA scenario, the investment portfolio to-earnings multiples. The model requires for corporate bonds rely on a high-level estimate -2 percent in 2031. This is largely determined experiences minor market value losses of assumptions, for example on cost pass-through, of the statistical relationship between the by muted impacts on fixed income investments, roughly -3 percent in 2050 resulting from a loss price elasticities and regulatory easing (either movements of a corporate bond‘s spread and by far the largest exposure in the portfolio. of economic production due to global warming. explicitly or implicitly via effective carbon prices). the respective issuer’s equity market value. In comparison, real assets suffer somewhat higher Substantially more severe consequences across all These are kept simple for this first version and will losses on a standalone basis but contribute less asset classes are predicted for late in the century. need to be further refined moving forwards. to overall market value losses due to a lower For our strategic response to identified risks share in the portfolio. This picture changes please see 04.4.6. when moving forward to 2050, where overall market value losses increase in the order of -10 percent. Substantially higher long-term interest 78

Sustainability Report 2021 04.4 Strategy resilience, stress-tests and climate scenario analysis 01 Introduction Results In addition to high emitting sectors and issuers, Carbon price sensitivity of the Allianz listed equity portfolio 2021 Absolute emissions are concentrated in duration is another main driver of the carbon price 02 Measuring and only a few sectors. At level 2 of NACE sector sensitivity of the listed corporate bonds portfolio. for effective carbon prices projected for 2031. 2020 managing sustainability classification, for the listed equity portfolio the The overall sensitivity is around two times lower 10 sectors with the highest absolute emissions as compared to listed equity, with market value Net-Zero 03 Strengthening contribute around 82 percent to absolute owned losses going up to 4.0 percent to 4.5 percent under 2050 our foundation emissions in the portfolio, but only 29 percent the most onerous disorderly ‘Divergent Net-Zero’ to AuM. Sector concentration is even a bit scenario. This is mainly owing to the limited Diverent 04 Climate-related more pronounced in the listed corporate bond co-movement of corporate bond spreads and Net-Zero financial disclosure portfolio where the 10 sectors with the highest equity returns observed in historical timeseries 04.1 Highlights absolute emissions contribute around 84 percent data which is used in the model to translate 04.2 Governance to absolute financed emissions in the portfolio, sensitivities for listed equity into sensitivities for eo 2°C 04.3 Strategy but only 26 percent to AuM. listed corporate bonds. 04.4 Strategy resilience, stress-tests and Consistent with analyses disclosed in previous From 2020 to 2021, the numbers substantially Deaye climate scenario analysis decreased as our equity and corporate bonds transition 04.5 Risk and opportunity management years and with the scoping of this approach, our portfolio carbon footprint reduced, see section 04.6 Targets and metrics listed equity and corporate bonds portfolios show 05.6. Looking ahead to 2050, in the absence 0% -2% -4% -6% -8% -10% -12% -14% -16% – within the current modeling framework and its of adaptation or mitigation actions maximum Carbon price sensitivity (EQ) 05 Our universal principles limitations – sensitivities in those sectors. carbon price sensitivities under the ‘Divergent Net- Over the 2031 time horizon, the overall sensitivity Zero’ scenario could almost triple as compared Figure 1 Carbon price sensitivity of the Allianz listed equity portfolio for effective carbon prices projected of the listed equity portfolio stays contained in to 2031. for 2031. the ‘Below 2°C’ scenario, with market value losses Being aware of the limitations of our approach, Carbon price sensitivity of the Allianz corporate bonds 2021 between 2.5 percent to 4 percent depending the results are still leading us to the right follow- on climate-economic model. The consequences up questions to understand how carbon price portfolio for effective carbon prices projected for 2031. 2020 of more stringent policy reaction and faster increases can affect different sectors and which technology change are reflected in higher sensitivities under the 1.5°C-aligned ‘Net-Zero parameters of individual investee companies will Net-Zero 2050’ and ‘Divergent Net-Zero’ scenarios, where lead to a non-uniform development inside a given 2050 market value losses go up to 9 percent to 11 sector as not all will be affected equally. This holds percent in the disorderly ‘Divergent Net-Zero’ especially true as major carbon emitters are often iverent scenario. The carbon price sensitivity in the exempted from carbon pricing schemes due to Net-Zero ‘Delayed transition’ scenario is still muted relative carbon leakage risks. to other scenarios due to delayed policy action Our strategic response to carbon risks is our long- eo 2°C setting in only after 2030. term commitment to our intermediary portfolio targets made as part of the U.N.-convened Net- eaye Zero AOA. See section 04.4.6 for further details. transition 0% -1% -2% -3% -4% -5% -6% -7% Carbon price sensitivity (FI) Figure 2 Carbon price sensitivity of the Allianz corporate bonds portfolio for effective carbon prices projected for 2031. 79

Sustainability Report 2021 04.4 Strategy resilience, stress-tests and climate scenario analysis 01 Introduction 04.4.5 Bottom-up quantitative Results Outlook 2022, additional perils and climate scenarios physical risk analysis for For inland flood, portfolios from 24 Allianz P&C Outcomes from this analysis are to inform a (including RCP 2.6) will be finalized and analyzed 02 Measuring and P&C insurance Insurance operating entities were analyzed. forward-looking view on the risk-adequate price for the insurance and investment portfolios to managing sustainability There is a clear trend that inland flood risk will for Allianz P&C insurance entities. By the end of ensure a truly Allianz view of physical climate To be able to assess physical climate risk exposure increase for the entire Allianz portfolio, with higher change risk. 03 Strengthening for investments and insurance, Allianz Reinsurance emissions scenarios having a larger impact. our foundation has initiated the Allianz Climate Change Risk Locations in Western Europe were identified Score (ACCRiS) project. The project will allow as driving the increasing risk. On an individual Allianz climate change risk scores applied to real estate 04 Climate-related Allianz to understand the physical climate change Allianz operating entity basis, the trends can For the proprietary investment portfolio, a pilot study was conducted applying the ACCRiS method introduced in financial disclosure risk at single location for a number of perils under differ, with entities in Mediterranean climates section 04.4.5 for the estimation of flood climate change risk to the Allianz Real Estate global direct portfolio. 04.1 Highlights 1 04.2 Governance a variety of climate scenarios and time horizons. exhibiting decreasing or stable flood risk due For every real estate location, the impact of all perils was analyzed under current climate. For the most relevant 04.3 Strategy Methods, assumptions and limitations to more extreme and prolonged droughts. peril – inland flood – an estimation of the impacts of climate change, including identification of risk clusters 04.4 Strategy resilience, stress-tests and However, there are large uncertainties in the level under the RCP 4.5 and RCP 8.5 scenarios in 2030 and 2050, was made. climate scenario analysis Integration of climate model data into the existing of increase of inland flood risk across the different The analysis found that most properties are not located in high-risk floodplains but there is a clear trend that 04.5 Risk and opportunity management Allianz global hazard layers provides the basis climate models. There are opportunities to reduce inland flood risk will increase with higher emissions scenarios for those investments most at risk of inland 04.6 Targets and metrics for the tool. The available outputs are hazard, flood risk under climate change, which are not flooding. Locations in Western Europe were identified as driving the increasing risk, where there is a noticeable risk and financial impact metrics for current and directly reflected in the analysis. For example, difference in frequency of flooding if we compare the current climate to 2030/2050. 05 Our universal principles future climate. For the estimation of risk under Allianz can educate customers to make them RCP 4.5 RCP 8.5 climate change, numerous climate model outputs more flood-resilient, governments can improve are used for each peril, climate change scenario flood defenses, and the construction industry can Risk Score Current Climate 2030 2050 2030 2050 and time horizon combination, allowing for the select the flood resilient building materials and Low 68% 68% 68% 68% 68% accounting of the uncertainty in the predictions. designs for high risk locations. Medium 4% 3% 3% 2% 2% Results of the first two perils provided to the For tropical cyclones, North America and Australia High 12% 10% 10% 10% 9% business were inland flood and tropical cyclone. were analyzed. In general, climate change is Very high 16% 20% 19% 20% 21% The climate change risk for the key insurance expected to amplify the tail risk due to an increase Table: Inland Flood Risk Score of Allianz Real Estate direct investments under influences of portfolios exposed to either peril was analyzed. in the frequency of high-intensity tropical cyclones. climate change An estimation of the impacts of climate Regions with historically low risk will see a higher change for inland flood and tropical cyclone, frequency of tropical cyclones (northern US Outcomes from the pilot project enable informed investment decision making processes, optimizing including identification of risk clusters, under the Atlantic coast and southern Australian east coast). future portfolio allocations accounting for climate change, and identification of asset locations where RCP 4.5 and RCP 8.5 scenarios in 2030 and 2050 While the difference between emission scenarios adaptation measures should be evaluated to ensure minimal impacts of flood events. By the end of was made for each individual policy for tens of is low in the short-term up to 2030, opposing 2022, we expect to add additional perils and analyze other kinds of investments (e.g. infrastructure). millions of insured objects. influences and limitations in the ability of climate models to simulate tropical cyclones makes projections in the second half of the century increasingly uncertain. 1 Two perils, inland flood and tropical cyclone are already implemented and assessment of physical climate change risk for every single global location can be provided. Next perils to be implemented are: hail and costal flood, additional perils to come in line with business requirements. Scenarios used are RCPs 2.6, 4.5, and 8.5. RCPs are scenarios that describe alternative trajectories for greenhouse gas emissions and the resulting atmospheric concentration from 2000 to 2100. The scenarios are based on different assumptions about population, economic growth, energy consumption and sources, and land use over this century. The scenarios are named after the level of ‘radiative forcing’ that each scenario produces (measured in Watts per square meter). 80

Sustainability Report 2021 04.4 Strategy resilience, stress-tests and climate scenario analysis 01 Introduction 04.4.6 Strategic response to As founding member to the U.N.-convened Net- identified carbon risks Zero (AOA), we have set intermediary investment 02 Measuring and portfolio targets. The work of the AOA is done managing sustainability The impacts of transition risk scenarios on the in collaboration and with a collective ambition, investment portfolio discussed in sections 04.4.1, bringing together global investors, leading civil 03 Strengthening 04.4.3, and 04.4.4 appear to be manageable society, academia, and the leadership of the our foundation considering both the magnitude of predicted U.N. The AOA remains the first and only group of losses and the time horizon over which they financial sector global players to set 2025 interim 04 Climate-related materialize. Extending this analysis to a full targets across four areas: sub-portfolio targets financial disclosure balance sheet view, including mitigating effects (at asset class level); sector targets; engagement 04.1 Highlights from insurance liabilities, would further support targets and financing targets. The purpose of 04.2 Governance this assessment – for example accounting for the these targets is to drive decarbonization of real 04.3 Strategy offsetting of fixed-income losses from increasing economy towards 1.5°C. (see section 04.6.1 04.4 Strategy resilience, stress-tests and long-term interest rates by lower long-term on investment portfolio targets). With regard climate scenario analysis liabilities from life insurance under the EA and to target implementation, both the top-down 04.5 Risk and opportunity management LA CBES scenarios. Moreover, the investment and bottom-up approaches for investments 04.6 Targets and metrics portfolio will not remain static. Instead inter- and included in this report support our view that 05 Our universal principles intra-sector asset allocation will be adapted sector pathways such as those being developed dynamically to limit the identified transition in the Glasgow Financial Alliance for Net-Zero risk exposure. Effective mitigation, however, and assessing companies transition plans along requires long-term action to align the portfolio these pathways is the way to go as we want to with policy targets. finance the transition and not divest from high Reports like the U.N. Emission Gap Report show emitting sectors. that the world is currently on a 2.7°C pathway While increasing the resilience of our portfolio meaning decisive and credible measures against the transition risks, for example as from all groups of actors are needed urgently. exemplified in the EA and LA CBES scenarios Our strategic response to carbon risks is our over the short- to mid-term in section 04.4.3, long-term commitment to decarbonize our our decarbonization strategy also contributes to investment and insurance portfolios to net- limiting the physical risks showcased in the NAA zero GHG emissions by 2050, consistent with a CBES scenario, which may materialize in our maximum temperature rise of 1.5˚C above pre- portfolio over the long-term. industrial temperatures. 81

Sustainability Report 2021 04.5 Risk and opportunity management 01 Introduction The risks and opportunities • Group Audit forms the ‘Third Line of Defense’, 04.5.2 Natural catastrophe We use special Nat Cat modeling techniques posed by climate change require independently and regularly reviewing risk risk governance which combine portfolio data (e.g. geographic 02 Measuring and governance implementation and compliance location, characteristics of insured objects and managing sustainability the use and regular review of with risk principles, performing quality reviews The Group-wide risk management framework is their values) with simulated natural disaster of risk processes, and testing adherence to applicable to Natural Catastrophes (Nat Cat). scenarios to estimate the magnitude and 03 Strengthening our comprehensive framework business standards, including the internal Very specific processes and rules apply to frequency of potential losses. Where such models our foundation to ensure it is properly addressed control framework. the management of Nat Cat risks due to the do not exist, we use deterministic, scenario-based and applied. Early warning indicators are monitored and significance of relevance and potential exposure. approaches to estimate potential losses. 04 Climate-related regularly reported to senior management through Main risk management processes covering Experts at Allianz Reinsurance – including financial disclosure risk dashboards, risk capital allocation and limit physical climate change adaptation include meteorologists, hydrologists, geophysicists, 04.1 Highlights 04.5.1 Overarching risk consumption reports to identify when climate pricing risks, portfolio management, exposure and geographers and mathematicians – model 04.2 Governance governance aspects become material. Supplemented by risk management, risk consulting, claims handling around 50 Nat Cat scenarios for Allianz Group. 04.3 Strategy quarterly updates, senior management decides and governance. Data is captured using best-in-class standards 04.4 Strategy resilience, stress-tests and Climate change risks and adaptation to the the risk management strategy and related actions. Each operating entity is responsible for controlling to map a range of perils and regions. In past climate scenario analysis resulting impacts have been integral to our risk years, these were used to conduct stress-tests 04.5 Risk and opportunity management management process for many years and our A key tool is the Allianz Risk Capital Model which its exposure to individual catastrophes and for for floods in Germany as well as wildfires in the 04.6 Targets and metrics approach continues to improve. All processes assesses natural catastrophe events for the defining local reinsurance requirements based U.S. and Australia. The results provide the basis and rules are codified in the Allianz Standards upcoming year on subsidiary and Group level. on local risk appetite and capital position. for group-wide risk monitoring, risk limits and 05 Our universal principles and Functional Rules. Compliance with these Another important instrument is the yearly Top The respective cover is provided by Allianz SE subsequent business decisions. The top three rules is mandatory. Our risk management Risk Assessment which helps to identify and or one of its subsidiaries. perils contributing to Nat Cat risk for Allianz Group and adaptation processes and rules cover all remediate significant threats to financial results, At Group level, the Board of Management reviews in the past four years were windstorms in Europe, insurance and underwriting-specific processes. operational viability, reputation and delivery of and approves the risk appetite. The reinsurance floods in Germany and earthquakes in Australia. strategic objectives, regardless of whether they division is responsible for designing and Climate risks are addressed as part of an can be quantified or not. This includes immediate implementing Group catastrophe protections We also conduct selected stress-scenario overarching qualitative and quantitative risk risks for the company and emerging risks which within given exposure limits. These covers take analysis on Nat Cat risks like hail or windstorms reporting and controlling framework: may arise from technological developments, various forms and aim to protect the Group to be used in risk steering. Nat Cat models are • As a general principle, responsibility for the new or changing environmental risks and socio- against excessive losses from major natural regularly updated according to the latest scientific ‘First Line of Defense’ rests with business demographic changes. Climate-related factors catastrophes. We measure, monitor and steer information. We are continuously improving the managers in the related Allianz Group are included in Top Risk Assessments which are risk based on an approved internal model which inclusion of global Nat Cat hazard information, undertaking. They are responsible for the risks conducted at both operating entity and Group quantifies the potential adverse development including climate, into underwriting decisions. taken and the returns from their decisions. level. Relevant emerging risks are discussed by of own funds. All relevant P&C insurance and • The ‘Second Line of Defense’ consists of the Group Finance and Risk Committee or the reinsurance portfolios are considered. independent global oversight functions Group Underwriting Committee. Following that, – Risk, Actuarial, Compliance and Legal. underwriting opportunities or mitigation measures These support the Group Board of are implemented where necessary. Management in defining the risk frameworks For more details on these risk management within which the business can operate. processes please see the Risk and Opportunity Report on pages 97 – 115 of the Allianz Group Annual Report 2021. 82

Sustainability Report 2021 04.5 Risk and opportunity management 01 Introduction 04.5.3 Climate and sustainability- activity around climate change and sustainable • Our partnership and memberships as 04.5.4 Risk management related risk governance finance, integration of sustainability and described in section 05.3 facilitate early processes 02 Measuring and climate considerations in business processes, risk detection as well as access to industry managing sustainability In addition to addressing climate-related risks and dedicated projects. Substantial topics are discussions and best practice. Methods of adaptation to climate change as part of our overarching qualitative and channeled to the Sustainability Board to inform • Our regular materiality assessment ranks risks form part of our overall risk management 03 Strengthening quantitative reporting and controlling framework, strategic decision-making. emerging sustainability and climate approach and apply to the whole value chain of our foundation a variety of comprehensive policies and processes Risk and opportunity considerations are issues and opportunities according to our insurance operations, covering all business foster integration of climate-related risks supplemented by additional processes including: their importance for our business and our segments, lines of business, new business and 04 Climate-related and opportunities. • The annual Allianz Risk Barometer produced stakeholders. See section 05.3. in-force business. Relevance of climate change financial disclosure The Allianz sustainability approach integrates by Allianz Global Corporate & Specialty. • Ongoing dialogue with internationally impact and need for adaptation vary across 04.1 Highlights climate- and sustainability-related considerations This is a survey of corporate clients, brokers, recognized non-governmental organizations our portfolios. 04.2 Governance by applying Group-wide corporate rules and industry trade organizations, risk consultants, (NGOs) provides ad hoc and scheduled Insurance-related processes 04.3 Strategy sustainability instruments across all underwriting underwriters, senior managers and claims exchanges on sustainability matters. The NGO 04.4 Strategy resilience, stress-tests and and investment activities. This includes the experts, in total collecting more than 2,650 dialogue is a forum for direct exchange of Product development, risk models and tariff climate scenario analysis Allianz ESG Functional Rule for Investments and calculations reflect expected claims from natural 04.5 Risk and opportunity management the Allianz Standard for Reputational Risk and responses from 89 countries and 22 industry ideas and points of view designed to leverage catastrophes, especially in Property, Engineering 04.6 Targets and metrics Issues Management which establish a core set of sectors. Climate change is ranked sixth. It is NGO’s expertise on climate and sustainability and Motor insurance. In risk segments and lines principles and processes for the management of also linked to Nat Cat risks in third position, matters to support the development of business where significant impact from climate 05 Our universal principles reputational risks and sustainability issues within as a key risk to property business, and gains and implementation of internal policies, change cannot yet be observed, risk patterns and the Group. increasing importance in shaping emission- programs and plans. Allianz listens to the their development are monitored closely (e.g. intensive industries in terms of transition risks. concerns of NGO partners and discusses liability). Coverages and terms and conditions All rules and standards are regularly updated Business interruption is ranked second highest, potential solutions to address these concerns. are designed with respect to changing risk to reflect newest insights and external behind cyber incidents, with potential triggers • Ongoing dialogues with policymakers, patterns, taking all relevant developments into developments. The publicly-available third found in climate-related events. regulators and academia on key economic, account. Terms and conditions and tariffs provide edition of the Allianz ESG Integration Framework You can access the full Risk Barometer here. governmental, environmental and societal incentives for customers to protect the insured increases transparency around internal processes issues, including climate change, to anticipate assets against natural hazards and other climate- and guidelines related to our sustainability • The Global Claims Review analyzes more arising developments and share opinions, related risks, where relevant. approach. We also rely on external providers than 470,000 claims in over 200 countries knowledge and best practice. for data related to climate, sustainability and and territories. The latest Review from In distribution, consulting and advising customers reputational risks. 2019 found windstorms as the only Nat Cat For proprietary investments, the ESG Functional on their risks, based on a thorough individual As an additional layer, the Climate Integration event to appear in the top 10 causes of loss. Rule for Investments provides the foundation for risk assessment, is an integral part of our sales team within Global Sustainability and the Natural catastrophes account for five percent integrating climate-related issues. strategy in retail and commercial business. For our sustainability Task Forces ensure the early of claims in number and 13 percent of total For more details on our activities as commercial business, the sales organization is identification, measurement and business value of all claims. It represents some of the a sustainable insurer and investors, supported by underwriters and risk engineers who integration of risks and opportunities arising largest exposures to energy as well as property see sections 02.1 and 02.2. provide specific advice to customers on protection from physical climate change and the low- and engineering segments. Environmental and and adaptation measures against all types of carbon transition. Examples include regulatory climate change-related liability issues are seen risk, especially Nat Cat and other climate change- to potentially increase in future. related risks. 83

Sustainability Report 2021 04.5 Risk and opportunity management 01 Introduction In underwriting, a thorough rules-based risk Investment-related processes Measures to manage our risks are based on two assessment is performed prior to any underwriting Comprehensive climate risk management major levers: 02 Measuring and decision, either automated (mostly in retail processes cover all major asset classes: 1. Adapt asset allocation: managing sustainability business) or individually (mostly in commercial business). Risk information is captured and stored • Climate scenarios are analyzed by inter- • Shift volumes towards zero carbon assets 03 Strengthening in our database and linked to all relevant business departmental teams under the joint lead of (mid-term). our foundation processes. For Nat Cats, our Group Global the AIM Risk and Investment Analytics and AIM • Increase exposure to companies leading the Geographic Information System (GIS) combines ESG teams. transition (all sectors). 04 Climate-related single risk information with global natural hazard • Both physical and transition risks are assessed • Increase of blended finance volumes. financial disclosure maps. This is key to managing risk exposure and based to a large extent on quantitative KPIs, 04.1 Highlights accumulation risk. We have established a limit making use of the climate stress-tests discussed. • Reduce exposure to climate laggards 04.2 Governance system for each Nat Cat loss type at all levels of • Risks are actively managed for the total per sector. 04.3 Strategy the organization, including Nat Cat limits at Group portfolio, supported by our ESG-scoring • Fossil fuel policy. 04.4 Strategy resilience, stress-tests and and operating entity levels. In the commercial approach (see section 02.2). 2. Enhance climate change readiness of climate scenario analysis business, underwriters and risk engineers consult 04.5 Risk and opportunity management and advise customers on prevention measures • On physical risks, we seek to identify potential existing assets: 04.6 Targets and metrics and support them in adapting to changing risk impacts on physical assets we own, as well • Broad engagement, bilateral dialogue and patterns. Our re-insurance structure protects our as impacts on client or investee level and participation in global initiatives like CA100+ 05 Our universal principles capital base against volatility and impact beyond associated portfolios (see section 04.4.5). or IIGCC. defined thresholds. • Maintaining active dialogue with asset • Real Estate: Steer and align real estate portfolio In portfolio management, regular performance managers and investee companies on with CRREM pathways (1.5˚C pathway). assessments are conducted by operating entities climate strategies integrates into risk • Reduce emissions in line with IPCC pathways and at least twice per year for all relevant management framework. for infrastructure portfolio. portfolios together with the responsible Group Center of Allianz SE. Any departure from • For physical assets with direct material projected plans – including claims frequency and ownership like real estate and infrastructure, severity – is identified and action immediately dedicated asset-level adaptation plans are taken. As our policies are renewed on a yearly implemented based on thorough location- basis, actions can be implemented annually if sharp physical risk assessments. necessary. Adaptation measures with regards to • The Allianz Climate Change Risk Score climate change risks comprise re-pricing actions, (ACCRiS) tool (see section 04.4.5) will deductibles, changes in terms and conditions and be used for new acquisitions and for even cancellation of policies where a sufficient portfolio assessment. premium for the risk cannot be obtained. • The energy sector is covered by the AOA- For further details, please refer to the Risk related sector targets for Utilities and Oil and Opportunity report page 97 to 115 of our and Gas. Group Annual Report 2021. • Dedicated asset manager engagement is in place. 84

Sustainability Report 2021 04.6 Targets and metrics 01 Introduction Our support for the low-carbon transition is steered by our commitment to set science-based emission reduction targets and reach net-zero emissions by 2050 in our business operations and proprietary investment portfolio in line with the Paris Agreement’s target of limiting global warming to 1.5°C. 02 Measuring and managing sustainability 04.6.1 Climate-related targets 03 Strengthening Allianz investment portfolio targets, as part of Asset Owner Alliance our foundation Target layer Measure Base year (2019) Current year (2021) Target year (2024) Description 04 Climate-related Sub-portfolio financial disclosure Listed Equity -25 % absolute owned GHG emissions, Scopes 1 and 2 24.9mn t of CO e1 18.7 mn t CO e 18.7mn t of CO e 04.1 Highlights Sub-portfolio 2 2 2 04.2 Governance Corporate Bonds 04.3 Strategy 2 Sub-portfolio • Fully owned real estate portfolio aligned with 1.5 degree pathways of CRREM 67.5 kgCO e/sqm n/a3* 52.2 kgCO e/sqm 04.4 Strategy resilience, stress-tests and Real Estate • Reach 52.2 kgCO e/sqm2 2 2 climate scenario analysis 2 04.5 Risk and opportunity management Sub-portfolio • Full transparency on financed emissions latest by 2023 for all investments 04.6 Targets and metrics Infrastructure • For direct equity investments an absolute carbon reduction of -28 % by year-end 2025 (base year 2020) • New direct (equity and debt) investments in high emitting assets only in case a 1.5°C aligned n/a* n/a* n/a* 05 Our universal principles decarbonization plans in place • Phase in of net-zero targets for new fund investments by year-end 2024 Sector • Coal phase out in line with 1.5°C pathway n/a n/a* increase by Indirect Utilities 4 5.85% annually • Increase direct and indirect exposure to renewable energy by 5.85 % per year (IRENA global pathway) € 2.9 bn € 3.14 bn € 3.9 bn Direct – debt renewables € 4.3 bn € 3.88 bn € 5.7 bn Direct – equity renewables Sector • Scopes 1 and 2 20 kgCO 5 6 2e/boe in line with OGCI n/a* n/a* 20 kgCO e/boe Scopes 1 and 2 upstream GHG Oil and Gas • 50 % of AuM to set net-zero by 2050 targets for Scope 1 and 2 greenhouse gas emissions 2 emissions intensity ~40 % n/a* ~50% Share of AuM with net-zero 2050 target for Scopes 1 and 2 emissions Engagement • Engagement coverage of at least Top 30 (non-aligned) emitters in portfolio. Top 30 means new engagement with 8 companies, others are covered by existing bilateral or collaborative engagements already • Full participation in all available AOA organized sector and asset manager engagements • Increase overall engagement activities by at least 100 % Financing • 4 to 5 new blended finance vehicles Blended Finance: Transition • Climate-positive solutions: Start investing into Forestry, Hydrogen and other 2020: Africa Grow 2021: Emerging Market Climate Action Fund Climate-positive solutions: 2021: Investment in BTG Core US Timberland Fund 1 CO2e refers to carbon dioxide equivalent, which includes CO2 and other greenhouse gases. 4 IRENA: The International Renewables Agency is an intergovernmental organization supporting countries in their transition to a sustainable energy future. 2 CRREM: Carbon Risk Real Estate Monitor. 5 BOE: barrel of oil equivalent. 3* Where n/a is displayed most recent and/or comprehensive data is not yet available. 6 OGCI: Oil & Gas Climate Initiative; a CEO-led consortium of industry leading O&G companies. 85

Sustainability Report 2021 04.6 Targets and metrics 01 Introduction 04.6.2 Climate-related metrics Methodology and Scope Absolute portfolio carbon footprint: We use a variety of indicators across different lines The portfolio carbon footprint for listed equity and 02 Measuring and of business to monitor, assess and steer climate- managing sustainability related aspects of the economy. A detailed list corporate bonds is calculated based on the following of sustainability-related KPIs can be found in measures for Scopes 1 and 2 emissions in line with 03 Strengthening section 05. the GHG Protocol. The required data is sourced from our foundation MSCI and Refinitiv. 04 Climate-related Investment portfolio composition Variables Relative portfolio carbon financial disclosure On the investment side, it is helpful to contextualize, footprint (i.e. portfolio carbon I Allianz’s investment in issuer i in Euro 04.1 Highlights for instance, our commitment to the AOA with i footprint per Euro invested): 04.2 Governance mainstream financial information like the spread Q Allianz’s total portfolio market value in Euro 04.3 Strategy across different asset classes, jurisdictions V Enterprise value incl. cash of issuer i in Euro and sectors. i 04.4 Strategy resilience, stress-tests and Y Sales/revenues of issuer i in Euro climate scenario analysis More information can be found in the 2021 i 04.5 Risk and opportunity management Annual Report financial supplement and the mi GHG emissions of issuer i in t CO₂e Weighted average carbon intensity 04.6 Targets and metrics corresponding analyst presentation here Absolute portfolio carbon footprint of Allianz’s (i.e. portfolio weighted average 05 Our universal principles listed equity and corporate bond portfolio in t carbon intensity per revenue): F CO₂e Carbon footprint methodology a We disclose carbon footprint information of Relative portfolio carbon footprint of Allianz’s our listed equity and corporate bonds portfolio. listed equity and corporate bond portfolio in t F CO₂e per Euro invested We provide both general portfolio indicators r and emission-related indicators. We expect to Portfolio weighted average carbon intensity F per revenue enhance this disclosure in upcoming reporting w w The emission data represents the latest data we have as of March of this year. cycles in light of the expansion of asset classes i Weight of issuer i in Allianz portfolio (Ii/Q) In case of this year’s report, this means that emission data is largely comprised covered by our AOA commitment, i.e. real estate, Enterprise value including cash (V) is defined as the of data from FY 2020, as FY 2021 data will only be made available by infrastructure and sovereign bonds. i investees in the first half of 2022. sum of the market capitalization of common stock at fiscal year-end, the market capitalization of preferred equity at fiscal year-end, and the book values of total debt and minorities’ interests without the deduction of cash and cash equivalents held by the enterprise. Due to regulatory requirements, we changed the calculation approach for our portfolio carbon footprint as of 2021. The new methodology is described above and 2019 and 2020 figures have been restated accordingly. 86

Sustainability Report 2021 04.6 Targets and metrics 01 Introduction Investment portfolio carbon footprint The past two years showed why we believe Both our listed equity and corporate bonds that both absolute and relative indicators are 02 Measuring and portfolio have undergone considerable changes necessary to measure the carbon performance managing sustainability in the two past years, characterized by the of portfolios. Relative indicators are sensitive economic impacts of the COVID-19 pandemic to changes in either direction in both company 03 Strengthening and the first impacts of our portfolio steering valuation and company sales, whereas absolute our foundation towards the climate targets. emissions are sensitive to strategic asset allocation shifts. 04 Climate-related Since 2019, we achieved a reduction of absolute It should also be noted that our current emission financial disclosure emissions of almost 25 percent. This was driven Scope is 1 and 2 and does not consider emissions 04.1 Highlights by four major factors: a COVID-19 effect on in the wider value chain of investees, which can 04.2 Governance emissions, change in company valuation which be significant for many sectors. While data quality 04.3 Strategy impacts the denominator, portfolio changes, for Scope 3 emissions is still low, there is merit 04.4 Strategy resilience, stress-tests and and structural emission reductions of our investee in sector-specific Scope 3 indicators and data climate scenario analysis companies. The latter is the real-economy change to determine if companies and their products 04.5 Risk and opportunity management we are seeking and it contributes significantly are on a pathway consistent with our 1.5°C 04.6 Targets and metrics to the emissions reductions we observed. ambition. We are working to develop these Our absolute carbon footprint may rebound next indicators also as part of our work with the AOA. 05 Our universal principles year to a certain extent, but what is important for We are also calling for harmonized carbon us is that the underlying structural trend is intact disclosure requirements across all three scopes and enables to achieve our target in 2025. of greenhouse gas emissions (see section 04.3.3). Sectorally, considerable shares of our equity and Please note that figures for financial year bond portfolios are invested in manufacturing 2020 have been restated due to a change companies. The absolute emissions of manufacturing in methodology. make up 45 percent of our emissions in both asset classes. Therefore, we also display NACE level 2 sectors for manufacturing to further disaggregate the sector figures. 87

Sustainability Report 2021 04.6 Targets and metrics 01 Introduction Table TCFD-1 Listed equity portfolio indicators 02 Measuring and Indicator Unit 2021 20201 Δ y-o-y managing sustainability Equities, Portfolio AuM € bn 40.8 32.5 25.6 % 03 Strengthening Equities, Share of total AuM % 5.0 4.0 -1.0 %-p our foundation Equities, Absolute emissions mn t CO₂ 2.3 2.2 3.2 % 04 Climate-related Equities, Relative emissions t CO₂ / mn 55.7 67.5 -17.5 % financial disclosure € invested Equities, Weighted average carbon intensity t CO₂ / mn 134.0 143.7 -6.7 % 04.1 Highlights € sales 04.2 Governance Equities, Emissions data coverage % 97.0 97.0 0.0 %-p 04.3 Strategy 04.4 Strategy resilience, stress-tests and Table TCFD-2 climate scenario analysis Sectoral listed equity portfolio indicators 04.5 Risk and opportunity management 1 04.6 Targets and metrics Indicator Unit 2021 2020 Δ y-o-y 05 Our universal principles Total AuM in 4 sectors with highest owned absolute emissions € bn 21.6 16.9 27.2 % Absolute Emissions of 4 sectors with highest owned absolute emissions mn t CO₂e 2.0 2.0 1.5 % Number of issuers in 4 sectors with highest owned absolute emissions 2,053 2,041 0.6 % Under Engagement by Climate Action 100+ 112 118 -6 2 1 Split of sectors with highest owned absolute emissions in equities portfolio Unit 2021 2020 Δ y-o-y Manufacturing sector total AuM € bn 19.3 14.8 30.2 % share of equity AuM % 47.0 46.0 -1.0 %-p absolute emissions mn t CO₂e 1.6 1.5 7.4 % relative emissions t CO₂e/€ mn invested 82.6 99.6 -17.0 % Weighted average carbon intensity t CO₂e/€ mn sales 74.7 78.2 -4.5 % Manufacture of other non-metallic mineral products Manufacture of other non-metallic mineral products sector total AuM € bn 0.7 0.5 39.1 % Manufacture of other non-metallic mineral products absolute emissions mn t CO₂e 0.2 0.4 -40.7 % Manufacture of other non-metallic mineral products relative emissions t CO₂e/€ mn invested 355.5 828.6 -57.1 % Manufacture of other non-metallic mineral products Weighted average carbon intensity t CO₂e/€ mn sales 22.7 38.5 -41.1 % Manufacture of basic metals Manufacture of basic metals sector total AuM € bn 0.2 0.1 56.1 % Manufacture of basic metals absolute emissions mn t CO₂e 0.5 0.3 53.7 % Manufacture of basic metals relative emissions t CO₂e/€ mn invested 2.7 2.8 -1.8 % Manufacture of basic metals Weighted average carbon intensity t CO₂e/€ mn sales 7.7 8.1 -4.4 % 1 The number of issuers in 5 sectors with highest owned absolute emissions in equities portfolio increased significantly compared to previous year reporting, mainly due to the generation of carbon footprint report using the NACE sector. Moreover, a considerable share of equity portfolio is invested in manufacturing sector, resulting in large numbers of issuers in scope. 2 These four NACE level 1 sectors comprise the majority of our listed equity absolute owned emissions. We decided to further break down the manufacturing sector to the most impacted NACE level 2 sectors as it alone accounts for a material part of the emissions. 88

Sustainability Report 2021 04.6 Targets and metrics 01 Introduction Table TCFD-2 Sectoral listed equity portfolio indicators continued 02 Measuring and 1 Indicator Unit 2021 2020 Δ y-o-y managing sustainability Manufacturing Manufacture of coke and refined petroleum products Manufacture of coke and refined petroleum products sector total AuM € bn 0.9 0.7 34.5 % 03 Strengthening Manufacture of coke and refined petroleum products absolute emissions mn t CO₂e 0.3 0.3 19.0 % our foundation Manufacture of coke and refined petroleum products relative emissions t CO₂e/€ mn invested 327.7 369.8 -11.4 % Manufacture of coke and refined petroleum products weighted average carbon intensity t CO₂e/€ mn sales 23.6 22.7 4.0 % 04 Climate-related Manufacture of chemicals and chemical products Manufacture of chemicals and chemical products sector total AuM € bn 1.9 1.5 23.4 % financial disclosure Manufacture of chemicals and chemical products absolute emissions mn t CO₂e 0.3 0.3 5.9 % 04.1 Highlights Manufacture of chemicals and chemical products relative emissions t CO₂e/€ mn invested 152.6 177.7 -14.1 % 04.2 Governance Manufacture of chemicals and chemical products Weighted average carbon intensity t CO₂e/€ mn sales 44.2 46.7 -5.3 % 04.3 Strategy Electricity, gas, steam and air conditioning supply Electricity, gas, steam and air conditioning supply sector total AuM € bn 0.9 1.0 5.9 % 04.4 Strategy resilience, stress-tests and climate scenario analysis Electricity, gas, steam and air conditioning supply sector share of equity AuM % 2.0 3.0 -1.0 %-p 04.5 Risk and opportunity management Electricity, gas, steam and air conditioning supply sector absolute emissions mn t CO₂e 0.2 0.2 -6.8 % 04.6 Targets and metrics Electricity, gas, steam and air conditioning supply sector relative emissions t CO₂e/€ mn invested 247.1 249.4 -0.9 % 05 Our universal principles Electricity, gas, steam and air conditioning supply weighted average carbon intensity t CO₂e/€ mn sales 17.8 23.2 -23.2 % Mining and quarrying Mining and quarrying sector total AuM € bn 0.7 0.7 0.0 %-p Mining and quarrying sector share of equity AuM % 2.0 2.0 0.0 %-p Mining and quarrying sector absolute emissions mn t CO₂e 0.2 0.2 -6.3 % Mining and quarrying sector relative emissions t CO₂e/€ mn invested 251.4 280.3 -10.3 % Mining and quarrying weighted average carbon intensity t CO₂e/€ mn sales 12.2 15.2 -20.0 % Transportation and storage Transportation and storage sector total AuM € bn 0.6 0.4 35.7 % Transportation and storage sector share of equity AuM % 1.0 1.0 0.0 %-p Transportation and storage sector absolute emissions mn t CO₂e 0.1 0.1 3.0 % Transportation and storage sector relative emissions t CO₂e/€ mn invested 115.0 150.9 -23.8 % Transportation and storage weighted average carbon intensity t CO₂e/€ mn sales 5.9 7.6 -22.4 % 1 The number of issuers in 5 sectors with highest owned absolute emissions in equities portfolio increased significantly compared to previous year reporting, mainly due to the generation of carbon footprint report using the NACE sector. Moreover, a considerable share of equity portfolio is invested in manufacturing sector, resulting in large numbers of issuers in scope. 89

Sustainability Report 2021 04.6 Targets and metrics 01 Introduction TCFD-3 Regional listed equity portfolio indicators 02 Measuring and Region Unit 2021 2020 Delta in % managing sustainability Europe Europe Region total AuM € bn 20.1 15.6 28.6 % 03 Strengthening Europe Region Absolute emissions mn t CO₂e 1.4 1.2 17.1 % our foundation Europe Region Relative emissions t CO₂e/€ mn invested 34.4 36.9 -6.8 % Europe Region weighted average carbon intensity t CO₂e/€ mn sales 62.7 69.4 -9.6 % 04 Climate-related North America North America total AuM € bn 9.5 7.5 27.2 % financial disclosure North America Absolute emissions mn t CO₂e 0.3 0.3 -2.5 % 04.1 Highlights North America Relative emissions t CO₂e/€ mn invested 6.6 8.4 -22.4 % 04.2 Governance North America weighted average carbon intensity t CO₂e/€ mn sales 35.8 26.4 35.4 % 04.3 Strategy Asia/Pacific Asia/Pacific Region total AuM € bn 6.5 5.6 15.5 % 04.4 Strategy resilience, stress-tests and climate scenario analysis Asia/Pacific Region Absolute emissions mn t CO₂e 0.3 0.4 -24.4 % 04.5 Risk and opportunity management Asia/Pacific Region Relative emissions t CO₂e/€ mn invested 6.7 11.1 -39.8 % 04.6 Targets and metrics Asia/Pacific Region weighted average carbon intensity t CO₂e/€ mn sales 16.4 25.2 -34.8 % 05 Our universal principles Emerging Markets Emerging Markets Region total AuM € bn 4.7 3.7 25.6 % Emerging Markets Region Absolute emissions mn t CO₂e 0.3 0.4 -8.9 % Emerging Markets Region Relative emissions t CO₂e/€ mn invested 8.0 11.1 -27.5 % Emerging Markets Region weighted average carbon intensity t CO₂e/€ mn sales 19.1 22.7 -15.6 % 90

Sustainability Report 2021 04.6 Targets and metrics 01 Introduction TCFD-4 Corporate bonds portfolio indicators 02 Measuring and Indicator Unit 2021 2020 Δ y-o-y managing sustainability Corporate bonds portfolio AuM € bn 197.6 192.2 2.8 % 03 Strengthening Corporate bonds share of total AuM % 31.0 31.0 0.0 %-p our foundation Corporate bonds absolute emissions mn t CO₂ 16.4 20.0 -17.6 % Corporate bonds relative emissions t CO₂ / mn € invested 83.2 103.8 -19.9 % 04 Climate-related Corporate bonds weighted average carbon intensity t CO₂ / mn € sales 190.4 208.2 -8.6 % financial disclosure Corporate bonds emissions data coverage % 73.0 74.0 -1.0 %-p 04.1 Highlights 04.2 Governance Sectoral corporate bonds portfolio indicators Unit 2021 2020 Δ y-o-y 04.3 Strategy Total AuM in 4 sectors with highest owned absolute emissions € bn 84.3 85.6 -1.6 % 04.4 Strategy resilience, stress-tests and Absolute Emissions of 4 sectors with highest owned absolute emissions mn t CO₂e 14.4 17.8 -18.8 % climate scenario analysis Number of issuers in 4 sectors with highest owned absolute emissions 1,138 1,068 6.6 % 04.5 Risk and opportunity management Under Engagement by Climate Action 100+ 111 111 0 04.6 Targets and metrics Split of sectors with highest owned absolute emissions in corporate bonds portfolio Unit 2021 2020 Δ y-o-y 05 Our universal principles Manufacturing Manufacturing sector total AuM € bn 47.2 48.4 -2.5 % Manufacturing sector share of corporate bonds AuM % 24.0 25.0 -1.0 %-p Manufacturing sector absolute emissions mn t CO₂e 6.5 8.4 -22.2 % Manufacturing sector relative emissions t CO₂e/€ mn invested 138.4 173.4 -20.2 % Manufacturing sector weighted average carbon intensity t CO₂e/€ mn sales 53.1 60.8 -12.6 % Manufacture of coke and refined petroleum products Manufacture of coke and refined petroleum products sector total AuM € bn 8.2 8.2 -0.2 % Manufacture of coke and refined petroleum products absolute emissions mn t CO₂e 3.1 3.7 -18.0 % Manufacture of coke and refined petroleum products relative emissions t CO₂e/€ mn invested 371.5 449.5 -17.3 % Manufacture of coke and refined petroleum products weighted average carbon intensity t CO₂e/€ mn sales 94.3 93.2 1.1 % Manufacture of other non-metallic mineral products Manufacture of other non-metallic mineral products sector total AuM € bn 0.9 1.1 -18.4 % Manufacture of other non-metallic mineral products absolute emissions mn t CO₂e 1.1 1.5 -29.1 % Manufacture of other non-metallic mineral products relative emissions t CO₂e/€ mn invested 1.1 1.3 -13.0 % Manufacture of other non-metallic mineral products weighted average carbon intensity t CO₂e/€ mn sales 40.0 48.2 -17.1 % Manufacture of chemicals and chemical products Manufacture of chemicals and chemical products sector total AuM € bn 3.0 3.4 -12.1 % Manufacture of chemicals and chemical products absolute emissions mn t CO₂e 1.0 1.5 -32.9 % Manufacture of chemicals and chemical products relative emissions t CO₂e/€ mn invested 343.0 452.3 -24.2 % Manufacture of chemicals and chemical products weighted average carbon intensity t CO₂e/€ mn sales 36.6 44.4 -17.6 % Manufacture of basic metals Manufacture of basic metals sector total AuM € bn 1.1 0.9 17.8 % Manufacture of basic metals absolute emissions mn t CO₂e 0.6 0.6 -9.3 % Manufacture of basic metals relative emissions t CO₂e/€ mn invested 541.5 701.7 -22.8 % Manufacture of basic metals weighted average carbon intensity t CO₂e/€ mn sales 16.7 16.7 0.3 % 91

Sustainability Report 2021 04.6 Targets and metrics 01 Introduction Corporate bonds portfolio indicators continued Split of sectors with highest owned absolute emissions in corporate bonds portfolio Unit 2021 2020 Δ y-o-y 02 Measuring and Electricity, gas, steam and air conditioning supply Electricity, gas, steam and air conditioning supply sector total AuM € bn 18.6 18.4 1.3 % managing sustainability Electricity, gas, steam and air conditioning supply sector share of corporate bonds AuM % 9.0 10.0 -1.0 %-p 03 Strengthening Electricity, gas, steam and air conditioning supply sector absolute emissions mn t CO₂e 5.4 6.4 -15.7 % our foundation Electricity, gas, steam and air conditioning supply sector relative emissions t CO₂e/€ mn invested 288.0 346.0 -16.8 % 04 Climate-related Electricity, gas, steam and air conditioning supply weighted average carbon intensity t CO₂e/€ mn sales 80.9 82.2 -1.5 % financial disclosure Transportation and storage Transportation and storage sector total AuM € bn 14.5 14.9 -3.1 % 04.1 Highlights Transportation and storage sector share of corporate bonds AuM mn t CO₂e 7.0 8.0 -12.5 % 04.2 Governance Transportation and storage sector absolute emissions t CO₂e/€ mn invested 1.6 1.8 -12.3 % 04.3 Strategy Transportation and storage sector relative emissions t CO₂e/€ mn sales 108.9 120.5 -9.6 % 04.4 Strategy resilience, stress-tests and Transportation and storage weighted average carbon intensity t CO₂e/€ mn sales 21.7 27.3 -20.4 % climate scenario analysis Mining and quarrying Mining and quarrying sector total AuM € bn 4.0 3.9 2.0 % 04.5 Risk and opportunity management Mining and quarrying sector share of corporate bonds AuM % 2.0 2.0 0.0 %-p 04.6 Targets and metrics Mining and quarrying sector absolute emissions mn t CO₂e 1.0 1.2 -20.3 % 05 Our universal principles Mining and quarrying sector relative emissions t CO₂e/€ mn invested 243.8 313.5 -22.2 % Mining and quarrying weighted average carbon intensity t CO₂e/€ mn sales 11.9 13.6 -12.6 % TCFD-5 Regional corporate bonds portfolio indicators Region Unit 2021 2020 Δ y-o-y Europe Europe Region total AuM € bn 87.6 93.5 -6.3 % Europe Region Absolute emissions mn t CO₂e 6.5 8.3 -22.0 % Europe Region Relative emissions t CO₂e/€ mn invested 32.7 43.2 -24.1 % Europe Region weighted average carbon intensity t CO₂e/€ mn sales 56.3 63.3 -11.1 % North America North America total AuM € bn 86.8 78.2 11.0 % North America Absolute emissions mn t CO₂e 6.2 7.9 -20.7 % North America Relative emissions t CO₂e/€ mn invested 31.6 41.0 -22.9 % North America weighted average carbon intensity t CO₂e/€ mn sales 107.7 118.2 -8.9 % Asia/Pacific Asia/Pacific Region total AuM € bn 7.1 7.3 -2.9 % Asia/Pacific Region Absolute emissions mn t CO₂e 0.7 0.8 -13.1 % Asia/Pacific Region Relative emissions t CO₂e/€ mn invested 3.4 4.0 -15.5 % Asia/Pacific Region weighted average carbon intensity t CO₂e/€ mn sales 5.2 7.2 -27.9 % Emerging Markets Emerging Markets Region total AuM € bn 16.1 13.2 22.2 % Emerging Markets Region Absolute emissions mn t CO₂e 3.0 3.0 1.3 % Emerging Markets Region Relative emissions t CO₂e/€ mn invested 15.4 15.6 -1.5 % Emerging Markets Region weighted average carbon intensity t CO₂e/€ mn sales 21.2 19.5 8.9 % 92

Sustainability Report 2021 01 Introduction 02 Measuring and managing sustainability 03 Strengthening our foundation 05 04 Climate-related Our universal financial disclosure 05 Our universal principles 05.1 Target and achievement tables In this chapter, we provide an overview of the key foundational 05.2 How we report: transparent principles of our approach to reporting and sustainability ratings. reporting, ratings and performance We discuss how topics that are most material to our business and our 05.3 Materiality principles stakeholders are identified and how we embed sustainability in our 05.4 Stakeholder engagement governance. We also provide an overview of our intended impact on 05.5 Sustainability governance the U.N. Sustainable Development Goals (SDGs). 05.6 Our commitment to human rights 05.7 Our impact on the U.N. Sustainable Finally, we close with a detailed overview of our sustainability- Development Goals related targets and achievements across Allianz Group. 05.8 Independent practitioner’s report on a limited assurance engagement on sustainability information 93

Sustainability Report 2021 05.1 Target and achievement tables 01 Introduction Sustainability in our business activities Topic Targets 2021 Progress and Achievements 2021 Targets 2022 and beyond Reference 02 Measuring and Sustainable Decreased our proprietary sustainable investments to Efforts to further decarbonize portfolios (e.g. compensate for For further insights into our managing sustainability investments € 123 bn from € 127 bn. increase of carbon footprint due to economic recovery after sustainable investments, please refer 03 Str engthening COVID-19) and to increase volume in sustainable investments to section 02.2.2 and table ESG-7. our foundation are top on the agenda for upcoming years. ESG-themed • Increased our third-party AGI ESG-themed investment We continue to collaborate with third party clients on finding For further insights into our ESG 04 Climate-r elated investments assets under management to € 184.3 bn from € 95.4 bn suitable bespoke sustainability solutions and expand our themed investments activities, financial disclosure in 2020. dedicated sustainability product offering. please refer to section 02.3 and • Increased our third-party PIMCO ESG-themed investment table ESG-13. 05 Our universal principles assets under management to € 203.1 bn from € 136.5 bn 05.1 Target and achievement tables in 2020. 05.2 How we report: transparent Sustainability in • Conduct further energy audits • Further embedded our sustainability approach in the • Work towards meeting regulatory reporting requirements For further insights into reporting, ratings and performance real estate • Extend efforts to reduce carbon emissions European Debt business. in the context of EU Taxonomy regulation (among others) sustainability in real estate, 05.3 Materiality (e.g. revise the technical/ environmental • Amended the environmental due diligence scope of work • Efforts to further decarbonize the real estate portfolio please refer to section 02.2.4. 05.4 Stakeholder engagement due diligence scope or sustainability for direct investments to consider decarbonization in (our aim is to align with the 1.5°C decarbonization 05.5 Sustainability governance analysis in investment documentation) more detail. pathways for the global real estate sector published by 05.6 Our commitment to human rights • Further energy audits were performed. CRREM by year-end 2024). 05.7 Our impact on the U.N. Sustainable Sustainable Continue to increase our sustainable solutions • Offered 339 sustainable insurance and asset management Continue to increase our sustainable solutions For further insights into our Development Goals 05.8 Independent practitioner’s report solutions offer worldwide. solutions (2020: 231). offer worldwide. Automize data collection process. sustainable insurance solutions, on a limited assurance engagement • € 1,484.7 mn revenue generated through Sustainable please refer to section 02.1.5 and on sustainability information Solutions (2020: € 1,448.9 mn). table ESG-4 and ESG-5. Emerging We aim to continue our expansion in Africa, • Despite the continued negative social and economic We aim to continue our expansion in Africa, Asia, and Latin For further insights into our emerging consumers Asia, and Latin America and to support a impact of the COVID-19 pandemic, we were able to America and to support a growing number of Emerging consumers business, please refer to growing number of Emerging Consumers – maintain or even increase our outreach to emerging Consumers – especially with digital products and services section 02.1.4 and table ESG-6. especially with digital products and services consumers in a number of target countries, and the – by partnering with insurtechs, mobile network operators, – by partnering with insurtechs, mobile reported total number of insured increased from 46.1mn mobility platforms, and other digitally operating partners. network operators, mobility platforms, and in 2020 to 62mn1 in 2021. other digitally operating partners. Following • We also continued to intensify our strategic partnership the extension of our footprint in East Africa, with the microinsurance and health services specialist we will also seek to expand our outreach to BIMA: Following our initial investment in 2017, aimed emerging consumers in this region in 2021. at providing emerging consumers with easier access to insurance, we have further supported BIMA’s transformation from an insurtech to a comprehensive HealthTech with an insurance backbone. 1 Due to change in scope, additional 15.5mn insured reported from Indian government-sponsored health schemes. 94

Sustainability Report 2021 05.1 Target and achievement tables 01 Introduction Sustainability in our business activities Topic Targets 2021 Progress and Achievements 2021 Targets 2022 and beyond Reference 02 Measuring and Board target • DJSI/S&P Global: Top 5 • DSJI/ S&P Global: Top rank (2020: 98th percentile) • DJSI/S&P Global: Top 5 For further insights into our environmental managing sustainability management targets, please refer to section 1 2 2 Sustainability • MSCI : AA-AAA • MSCI : AAA (2020: AAA) • MSCI : AA-AAA 03 Str engthening ratings • Sustainalytics3: Top 5 diversified insurance • Sustainalytics3: #7 diversified insurance sub-industry (2020: • Sustainalytics2: Top 5 diversified insurance 02.6 and table ENV-1. our foundation sub-industry #2 diversified sub-insurance industry) sub-industry 04 Climate-r elated Board target Reduce GHG emissions by 30 % per employee In 2021, our carbon footprint per employee was 0.9 tons Reduce GHG emissions by 30 % per employee by For further insights into our GHG emissions, by year-end 2025, against a 2019 baseline. CO₂e (2020: 1.4 tons CO e). This represents a 60 % reduction year-end 2025, against a 2019 baseline. please refer to section 02.6 and table ENV- financial disclosure Greenhouse gas 2 (GHG) emissions (2020: 42 %), against a 2019 baseline. 2. Also refer to our Non-Financial Statement, 05 Our universal principles per employee section Environmental matters, p. 59–63. 05.1 Target and achievement tables Board target Achieve 100 % renewable electricity for our Achieved a share of 77 % renewable electricity of total Achieve 100 % renewable electricity for our For further insights into our renewable 05.2 How we report: transparent Renewable operations by 2023 within Allianz Group. electricity used (2020: 57 %) within Allianz Group. operations by 2023 within Allianz Group. electricity, please refer to section 02.6 and reporting, ratings and performance electricity table ENV-5. 05.3 Materiality Energy Reduce energy consumption from office Achieved a reduction of 26 % in 2021 (2020: 20 %) compared Reduce energy consumption from office buildings per For further insights into our energy 05.4 Stakeholder engagement 3 to 2019 within Allianz Group. employee by 20 % by year-end 2025 compared to consumption, please refer to section 02.6 and consumption buildings per employee by 20 % by year-end 05.5 Sustainability governance 2025 compared to 2019 within Allianz Group. 2019 within Allianz Group. table ENV-3. 05.6 Our commitment to human rights Paper consumption Reduce paper consumption by 20 % per Achieved a reduction of 33 % in 2021 (2020: 14 %) compared Reduce paper consumption by 20 % per policy For further insights into our paper 05.7 Our impact on the U.N. Sustainable policy compared to 2019 by year-end 2025 to 2019 within Allianz Group. compared to 2019 by year-end 2025 within consumption, please refer to section 02.6 and Development Goals within Allianz Group. Allianz Group. table ENV-9. 05.8 Independent practitioner’s report on a limited assurance engagement Water consumption Reduce water consumption by 10 % per Achieved a reduction of 41 % in 2021 (2020: 23 %) compared Reduce water consumption by 10 % per employee For further insights into our water on sustainability information employee compared to 2019 by year-end to 2019 within Allianz Group. compared to 2019 by year-end 2025 within consumption, please refer to section 02.6 and 2025 within Allianz Group. Allianz Group. table ENV-7. Waste Reduce waste generation by 10 % per Achieved a reduction of 41 % in 2021 (2020: 29 %) compared Reduce waste generation by 10 % per employee For further insights into our waste generation, employee compared to 2019 by year-end to 2019 within Allianz Group. compared to 2019 by year-end 2025 within please refer to section 02.6 and table within Allianz Group. Allianz Group. ENV-8. Business travel Reduce GHG emissions from business travel Achieved a reduction of 70 % in 2021 (2020: 59 %) compared Reduce GHG emissions from business travel by 15 % For further insights into our GHG emissions by 15 % per employee compared to 2019 by to 2019 within Allianz Group. per employee compared to 2019 by year-end 2025 from business travel, please refer to section year-end 2025 within Allianz Group. within Allianz Group. 02.6 and table ENV-6. Board target 73 % IMIX score in 2021 within Allianz Group. 78 % IMIX score in 2021 within Allianz Group (2020: 78 %). 75 % IMIX score within Allianz Group. For further insights into our inclusive Inclusive meritocracy, please refer to section 02.4 and meritocracy table HR-12. Also refer to our Non-Financial Statement, section Employee matters, p. 69–70. 1 The use by Allianz of any MSCI ESG research LLC or its affiliates (‘MSCI’) data, and the use of MSCI logos, trademarks, service marks or index names herein, does not constitute a sponsorship, endorsement, recommendation, or promotion of Allianz by MSCI. MSCI services and data are the property of MSCI or its information providers, and are provided as-is and without warranty. MSCI names and logos are trademarks or service marks of MSCI. 2 Copyright ©2021 Sustainalytics. All rights reserved. This presentation contains information developed by Sustainalytics (www.sustainalytics.com). Such information and data is proprietary of Sustainalytics and/or its third-party suppliers (third-party data) and are provided for informational purposes only. It does not constitute an endorsement of any product or project, nor investment advice and is not warranted to be complete, timely, accurate or suitable for a particular purpose. Its use is subject to conditions available at https://www.sustainalytics.com/legal-disclaimers. Rating results amongst peers with similar market cap. 3 Energy consumption reported for data centers relates to our strategic data centers in Europe, the U.S, Singapore and Australia. At present, the energy consumption for some local data centers is included in the energy consumption reported for office buildings. 95

Sustainability Report 2021 05.1 Target and achievement tables 01 Introduction Sustainability in our business activities continued Topic Targets 2021 Progress and Achievements 2021 Targets 2022 and beyond Reference 02 Measuring and Balanced gender • 40 % women in Allianz talent pool. • 43.4% (2020: 42.3 %) women in Allianz talent pool. • 50 % women in Allianz talent pool by 2024. For further insights into our gender managing sustainability representation representation, please refer to section 02.4 • 30 % women in senior executive positions. • 24.7 % (2020: 25.8 %) women in senior executive positions. 03 Str engthening and table HR-6. Also refer to our Non- our foundation Financial Statement, section Employee matters, p. 69–70. 04 Climate-r elated Board target • For over 75 % of Allianz Group business We achieved the highest ever measured NPS results • Digital NPS tracking. For further insights into our global customer financial disclosure Global customer segments to outperform their local market for Allianz: • Our Group ambition is to reach 50 % loyalty leaders satisfaction, please refer to section 02.5 and satisfaction (NPS (meaning either above market or Loyalty • 48 out of 57 measured segments have been either above by 20241. table CS-1. Also refer to our Non-Financial 05 Our universal principles performance) Leader position). local market or Loyalty Leaders resulting in a share of 84 % Statement, section Social matters, p. 64–67. 05.1 Target and achievement tables (2020: 79 %). 05.2 How we report: transparent • 33 out of 57 measured segments have been Loyalty reporting, ratings and performance Leaders resulting in a share of 58 % (2020: 60 %). 05.3 Materiality 05.4 Stakeholder engagement Strengthening our foundation 05.5 Sustainability governance 05.6 Our commitment to human rights Topic Targets 2021 Progress and Achievements 2021 Targets 2022 and beyond Reference 05.7 Our impact on the U.N. Sustainable Corporate Continue with the implementation of the In 2021, we continued to evolve our Corporate Citizenship Continue with the implementation of the new strategy For further insights into our Corporate Development Goals citizenship new strategy. Strategy and approach. We published our Guidance on and roll out of the impact measurement framework. Citizenship Strategy, please refer to sections 05.8 Independent practitioner’s report strategy Corporate Citizenship Activities and Guidance on Social 01.4 and 03.1. on a limited assurance engagement Impact Measurement for Corporate Citizenship Activities. on sustainability information Long-term global Increase the resilience and equal In 2021, our partnership with SOS CVI with a focus Continued review of our global partnership and For further insights into our long-term global partnerships opportunities of children and young people on Emergency Preparedness & Response and Youth development of a partnership framework for local partnerships , please refer to sections in 2021 by focusing specifically on Emergency Employability programs (e.g. YouthCan!) continued. Corporate Citizenship activities. 01.4 and 03.1. Preparedness & Response and Youth As planned, the partnership came to an end after six years Employability programs. at the end of 2021. Corporate Continue to contribute to communities and In 2021, the Allianz Group contributed through Corporate • Continue to contribute to society through corporate For further insights into our corporate citizenship societies through corporate giving and Giving and employee volunteering as well as activities giving and employee volunteering in alignment citizenship activities, please refer to sections activities employee volunteering in alignment with through its twelve corporate foundations. We had corporate with our strategy. 01.4 and 03.1. our strategy. citizenship activities benefiting communities worldwide. • Identify and launch activities that would be We launched the Allianz Social Impact Fund to foster OEs supported through the Allianz Social Impact Fund. to carry out local activities in line with our strategy. 1 Digital NPS tracking allows us to measure customer loyalty continuously and against a broader set of competitors. This new measurement will set higher standards therefore we have adjusted our digital NPS targets accordingly. 96

Sustainability Report 2021 05.1 Target and achievement tables 01 Introduction Strengthening our foundation continued Topic Targets 2021 Progress and Achievements 2021 Targets 2022 and beyond Reference 02 Measuring and Data privacy • Privacy Champions will be appointed in • Privacy Champions were appointed across Allianz Group • Deploying new data privacy controls for supplier For further insights into data privacy and managing sustainability and data ethics all business units that process personal companies and are now dedicating a portion of their time management concerning the pre-selection, data ethics, please refer to sections 03.2.1 03 Str engthening data across Allianz Group companies. to deal with privacy-related topics. contracting, ongoing monitoring, and off-boarding and 03.2.2. Also refer to our Non-Financial our foundation Privacy Champions are employees who • We developed a global privacy risk and controls ‘blueprint’ of data processors. Statement, section Social matters, p. 64–67. dedicate a portion of their time to dealing to support local compliance efforts with the APS across • Deploying a rigorous new training program for 04 Climate-r elated with privacy-related topics, including the entire Allianz Group. The blueprint provides a privacy professionals and privacy champions. financial disclosure PIAs, records of processing activities, data tool for identifying data privacy risks in local business • Rollout of the AI Practical Guidance to all incidents, and data access requests. processes and addressing those risks by mapping them to EU Renewal Agenda Committee (RACo) 05 Our universal principles standard controls. Operating Entities. 05.1 Target and achievement tables Information Define and include information security Target objectives for all OEs included key information security Further upgrade targets and risk indicator monitoring, For further insights into our information 05.2 How we report: transparent security executive targets for all responsible board members, risk indicators in addition to targets for strategic programs linking them to quantified risk exposure and roll-out security executive accountability, please refer reporting, ratings and performance accountability including local Operating Entities (OEs) to related to information security. Additionally, a mechanism of global cyber-risk management strategy. to section 03.2.3. 05.3 Materiality ensure appropriate focus on securing Allianz. was devised to ensure a direct link between information 05.4 Stakeholder engagement security standing and reward. 05.5 Sustainability governance Compliance • Complete the fifth cycle of the integrated • Roll-out of CARE program. • Complete the fifth cycle of the integrated For further insights into our compliance, 05.6 Our commitment to human rights compliance risk scoping and assessment • Completed the fourth cycle of our integrated compliance compliance risk scoping and assessment activities please refer to section 03.4. Also refer to 05.7 Our impact on the U.N. Sustainable activities as part of the company’s IRCS risk scoping and assessment activities as part of the as part of the company’s IRCS process in 2021. our Non-Financial Statement, section Development Goals process in 2021. Compliance/Anti-Corruption and Bribery 05.8 Independent practitioner’s report company’s IRCS. • Continue to enhance the effectiveness of on a limited assurance engagement • Continue to enhance the effectiveness local compliance organizations by enriching Matters, p. 70–71. on sustainability information of local compliance organizations by our compliance reviews, to bolster further enriching our compliance reviews, to the governance and processes of underlying bolster further the governance and compliance organizations across our processes of underlying compliance Operating Entities. organizations across our Operating Entities. 97

Sustainability Report 2021 05.1 Target and achievement tables 01 Introduction Climate-related targets Topic Targets 2021 Progress and Achievements 2021 Targets 2022 and beyond Reference 02 Measuring and Board target Set long-term and intermediary climate We have set long-term and intermediary climate targets As intermediary target, we aim to reduce our emissions managing sustainability targets (2025) for proprietary investments in (see also Targets 2022 and beyond). We are working towards in listed equities and corporate bonds by 25 % by Decarbonizing line with 1.5ºC based on AOA framework for our first intermediate 2025 target as part of our ‘Net-Zero by year-end 2024 compared to 2019 baseline. The fully 03 Str engthening our investments target setting. 2050’ commitment for our proprietary investment portfolio. owned real estate portfolio will be in line with our foundation scientifically based 1.5˚C pathways by year-end 2024. 04 Climate-r elated We also set emission reduction and engagement financial disclosure targets for our infrastructure portfolio in line with 1.5˚C pathways. 05 Our universal principles Phase out of • Fully phase out coal-based business In 2021, we tightened our coal approach in both proprietary • Fully phase out coal-based business models across For further insights into our divestments, 05.1 Target and achievement tables coal-based models across our proprietary investments investments and Property-Casualty underwriting by also our proprietary investments and P&C portfolios by please refer to section 02.2. 05.2 How we report: transparent business models and P&C portfolios by 2040 at the latest restricting companies that plan new thermal coal assets 2040 at the latest. reporting, ratings and performance along 1.5ºC pathway. or have still a major coal business in place (5 gigawatts of • Reduce threshold for coal-based business models 05.3 Materiality • Engage with companies in proprietary installed coal capacity or 10 million tons mined annually). for P&C insurance as well as investment portfolios 05.4 Stakeholder engagement investment as well as P&C portfolios to from current 30 % to 25 % as of 31 December 2022. 05.5 Sustainability governance move away from coal. 05.6 Our commitment to human rights Net-Zero Asset • Further increase the number of members Together with our partners at the AOA we achieved Work across all dimensions of the Alliance 05.7 Our impact on the U.N. Sustainable Owner Alliance and assets under management. the following: commitment and target-setting protocol. Development Goals • Develop inaugural Target-Setting Protocol. • Grew to 65 members across three continents with > USD 10 By 2023: Disclosure of quantitative joint 05.8 Independent practitioner’s report tn AUM. Alliance report. on a limited assurance engagement • Engage with policymakers, regulators, on sustainability information sectors and companies. • Developed 2nd version of the Target-Setting Protocol. • Conducted engagements with policymakers, regulators, energy agencies, sectors and companies. • Number of position papers and statements published. • Published first Alliance progress report. Net-Zero Actively contribute to the establishment of the Allianz co-founded the U.N.-convened Net-Zero Insurance • Transitioning all operational and attributable Insurance Alliance U.N.-convened Net-Zero Insurance Alliance Alliance alongside other insurance firms around the world. GHG emissions from its insurance and reinsurance alongside other insurance firms around underwriting portfolios to net-zero GHG emissions the world. 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. 98

Sustainability Report 2021 GRI GRI 102-46 GRI 102-54 05.2 How we report: transparent reporting, ratings and performance 01 Introduction To increase trust and Details on our reporting standards, scope and Non-Financial Statement An increasing number of Allianz subsidiaries now transparency in our activities, materiality can be found in section 05.2. In compliance with the German implementation publish their own sustainability reports. These are 02 Measuring and Our annual U.N. Global Compact (UNGC) of the E.U. Non-Financial Reporting Directive available for download on local Allianz websites. managing sustainability we aim to reflect our values Communication on Progress can be found on (2014/95/EU), we publish relevant non-financial Reporting parameters of integrity, competence and our website and the UNGC website. information within our Group Annual Report. The content of this report is focused on the 03 Str engthening Our GRI Content Index is available on This so-called Non-Financial Statement our foundation resilience in our sustainability is approved by the Supervisory Board of key requirements of our stakeholders and reporting. We actively promote our website. Allianz SE and assured with reasonable sustainability rating and benchmarking providers. 04 Climate-r elated World Economic Forum Stakeholder assurance by PricewaterhouseCoopers GmbH The primary target audience are rating providers, financial disclosure the development of global Wirtschaftsprüfungsgesellschaft (PwC). analysts, investors and NGOs. Our report also Capitalism Metrics For further details please see our Group contains key insights for other stakeholder groups, 05 Our universal principles sustainability reporting In January 2021, Allianz became one of the initial Annual Report 2021. such as customers and employees and makes 05.1 Target and achievement tables standards to simplify the endorsing companies of the (WEF) Stakeholder links to other documents which disclose our 05.2 How we report: transparent Capitalism Metrics. Drawn from existing Data and assurance approach and report on progress. reporting, ratings and performance reporting landscape and standards, the Stakeholder Capitalism Metrics 05.3 Materiality are a set of metrics that can be reported on by To enhance the quality and reliability of our Material topics and aspects 05.4 Stakeholder engagement drive transparency and all companies, regardless of industry or region. reporting, PricewaterhouseCoopers GmbH Key topics included in this Sustainability Report 05.5 Sustainability governance comparability of corporate We actively encourage our stakeholders and Wirtschaftsprüfungsgesellschaft (PwC) has were shaped by our 2021 materiality analysis 05.6 Our commitment to human rights business partners to consider adopting the WEF conducted limited assurance reviews of our which satisfies the GRI Principles for defining 05.7 Our impact on the U.N. Sustainable reporting and performance. metrics in their own reporting. sustainability reports, processes and data report content (sustainability context, materiality, Development Goals since the 2016 reporting year. PwC regularly completeness and stakeholder inclusiveness). 05.8 Independent practitioner’s report Allianz bases its management approach and As part of our commitment to transparent undertakes onsite reviews of a sample of on a limited assurance engagement reporting on voluntary international standards and comparable reporting, we have included operating entities of Allianz SE, selected based on For further details about our 2021 materiality on sustainability information and guidelines such as the Global Reporting assessment process and outcomes, Initiative (GRI) and recognized sustainability an overview of our disclosures based on the their impact on the Group’s sustainability activities. see section 05.3. indices. We continually monitor developments in Stakeholder Capitalism Metrics in this report. The implementation of recommendations is reporting standards and regulations including We have included additional indicators on direct monitored by the Global Sustainability and Group Scope of reporting initiatives by the World Economic Forum (WEF), economic value generated and distributed. Accounting and Reporting functions. st the European Commission (EC), the Sustainability The remaining indicators will be published in our Please see the 2021 Independent This is our 21 annual Sustainability Report. Accounting Standards Board (SASB) and the 2022 report. We do not consider some metrics Practitioner’s Report on a Limited Assurance Our Sustainability Report 2021 relates to the International Sustainability Standards Board to be material for us as a financial services Engagement on Sustainability Information entire Allianz Group. Unless otherwise stated, (ISSB). Our engagement aims to support the company and explanations for these omissions (section 05.8). all measures, activities and key figures refer to the development of a high-quality and globally are provided. 2021 fiscal year (01 January 2021 to 31 December consistent reporting system that adequately Our WEF Content Index available as an Our reporting ecosystem 2021) and we take operational control as the meets stakeholders’ information demands in a appendix to this report, is accessible through boundary for reporting. timely manner. For example, we are a member our website. We focus on reporting online, cross-linking to the of the European Financial Reporting Advisory sustainability section of our website, People Fact Group (EFRAG) Project Task Force on European For further details on the Stakeholder Book, Tax Transparency Report and Analyst’s Sustainability Reporting Standards (PTF-ESRS). Capitalism Metrics, please see the Presentation and Non-Financial Supplement, WEF website. which offers further extra financial information. An overview of our reporting ecosystem can be found on page 03. 99

Sustainability Report 2021 05.2 How we report: transparent reporting, ratings and performance 01 Introduction Sustainability ratings and performance Sustainability Rating Our performance (as of 31 December 2020) Our performance (as of 31 December 2021) Sustainability ratings promote transparency DJSI/S&P Global We are one of the longstanding members of the Dow Jones We are one of the longstanding members of the Dow Jones Sustainability Index 02 Measuring and and trust among our customers, Key Rating Sustainability Index and we were ranked as number six in our and we achieved the top position, scoring 93 points out of 100 in 2021, up from managing sustainability investors and other stakeholders. sector in 2020, scoring 85 out of 100 points (Silver Class). 85 points in 2020. MSCI1 Allianz once again received a rating of AAA (on a scale of AAA-CCC) in 2021 03 Str engthening We strive to be a sustainability leader in our ESG In 2020, Allianz once again received a rating of AAA (on a our foundation Key Rating scale of AAA-CCC) and is one of the top performers in the and is one of the top performers in the insurance sector. sector. Taking part in sustainability ratings and insurance sector. industry benchmarks supports us to improve our 2 04 Climate-r elated performance and transparency. Sustainalytics We received an ESG Risk Rating of 16.2 and were assessed to We received an ESG Risk Rating of 15.9 and were assessed to be at low risk financial disclosure Key Rating be at low risk of experiencing material financial impacts from of experiencing material financial impacts from sustainability factors. Our risk 3 sustainability factors. Our risk rating places us at rank 2 in the rating places us at rank #7 in the diversified insurance industry and 2nd diversified insurance industry and 2nd amongst peers of similar market cap, as assessed by Sustainalytics. Our ESG 05 Our universal principles amongst peers of similar market cap, assessed by Sustainalytics.4 Risk Rating was revised over the course of the year in association with the 05.1 Target and achievement tables development of the Structured Alpha Funds controversy, resulting in a year-on- 05.2 How we report: transparent year deterioration in sub-industry rank from #2 in 2020. reporting, ratings and performance 05.3 Materiality ISS ESG We received Prime status in 2020, which ranks us among the We received Prime status in 2021. This ranks us among the world’s most 05.4 Stakeholder engagement world’s most sustainable companies in our industry. sustainable companies in our industry and we achieved a first decile rank. 05.5 Sustainability governance ISS quality score We received the highest rating in the ISS Quality Score for the We received the highest possible rating in the ISS Quality Score for the 05.6 Our commitment to human rights environment and social pillars in 2020. environment and social pillars in 2021 with ratings of first decile in both pillars. 05.7 Our impact on the U.N. Sustainable Vigeo Eiris We were in the top 5 percent in the insurance sector in 2020 We were ranked third in the insurance sector in 2021 with an overall ESG score Development Goals with an overall ESG score of 62 out of 100 points. of 63 out of 100 points. 05.8 Independent practitioner’s report FTSE4Good We are one of the longstanding members and we were ranked We are one of the longstanding members and were ranked among the top five on a limited assurance engagement among the top 8 percent of our sector in 2020. percent of our sector in 2021. on sustainability information PRI In 2020, we achieved the highest rating (A+) in eight out of nine Results for 2021 are due to be published in June 2022. In 2020, we achieved the categories. We were included in the 2020 Leaders’ Group for highest rating (A+) in eight out of nine categories and were included in the 2020 our climate reporting. Leaders’ Group for our climate reporting. CDP We have participated with our climate change CDP submission We have participated with our climate change CDP submission since 2011. since 2011. In 2020, we achieved an A- rating. In 2021, we achieved a B rating. Bloomberg Gender Equality For the fifth year running, we were included in the list of 325 For the sixth year running, we were included in the list of 380 companies from 1 The use by Allianz of any MSCI ESG research LLC or its affiliates (‘MSCI’) Index (listing) companies from 42 counties and regions across 50 industry 44 countries and regions across multiple industry sectors in 2021. data, and the use of MSCI logos, trademarks, service marks or index names sectors in 2020. herein, does not constitute a sponsorship, endorsement, recommendation, or promotion of Allianz by MSCI. MSCI services and data are the property of Refinitiv diversity and Allianz was ranked 7th in 2020 (up one since 2019) among Allianz was ranked fifth globally in 2021 (up two places since 2020) among MSCI or its information providers, and are provided as-is and without warranty. inclusion index (ranking) companies leading the way in embedding diversity and companies leading the way in embedding diversity and inclusion in their MSCI names and logos are trademarks or service marks of MSCI. inclusion in their business strategy and practices. business strategy and practices. Allianz was ranked first in the country 2 Copyright 2021 Sustainalytics. All rights reserved. This presentation contains information developed by Sustainalytics (www.sustainalytics.com). Such (German-headquartered) and sector (insurance) categories. information and data are proprietary of Sustainalytics and/or its third party BeyondGenderAgenda We were placed second in the BeyondGenderAgenda German Diversity Index suppliers (Third Party Data) and are provided for informational purposes only. They do not constitute an endorsement of any product or project, nor an German Diversity (ranking the DAX30 companies). investment advice and are not warranted to be complete, timely, accurate or Index (ranking the suitable for a particular purpose. Their use is subject to conditions available at DAX30 companies) https://www.sustainalytics.com/legal-disclaimers. 3 Please note that the 2020 figure has been updated by Sustainalytics. 4 Ranks as of December 31, 2020. Our rating performance is updated regularly over the course of the year. For our most recent results, please see our website. 100

Sustainability Report 2021 GRI 102-12, 102-40, 102-42, 102-43, 102-44, 102-46, 05.3 Materiality 102-47 01 Introduction To make a positive impact on Operating entities – including PIMCO, AIM, Allianz Peer companies: We conducted a peer society, we need to understand Technology, AGCS, AllianzGI – were involved in assessment of the nine best performing 02 Measuring and providing feedback on the most material issues companies in terms of materiality analysis in the managing sustainability and respond to the changing from their expert perspectives. latest Dow Jones Sustainability Index assessment. Materiality assessment process: This helped us understand the material issues 03 Str engthening context in which we operate. defined by these insurance companies in their our foundation Our materiality assessment 1. Identification: We identified a list of sustainability reports. enables us to stay on top of sustainability topics tailored to our business Media: We used the HLG Brand Pressure 04 Climate-r elated through a desk-based review of sourcing Index and RepRisk data to identify the most financial disclosure trends and align our approach, including our own prior material topics, relevant topics for the financial sector from a peers’ materiality matrices, a media review media perspective. 05 Our universal principles reporting and strategy with using the HLG Brand Pressure Index and NGOs: We performed external stakeholder 05.1 Target and achievement tables the sustainability issues that RepRisk data and independent expert opinion interviews with NGOs and complemented it by 05.2 How we report: transparent from a specialist consultancy. using SigWatch data to identify the most relevant reporting, ratings and performance are most important to our 2. Prioritization: We engaged with stakeholders 05.3 Materiality including NGOs, employees and customers topics for NGOs. 05.4 Stakeholder engagement stakeholders and our business. through interviews, surveys and workshops to Employees: We conducted a series of semi- 05.5 Sustainability governance Our materiality assessment helps to ensure that prioritize the list of material topics. structured interviews with 36 internal leaders 05.6 Our commitment to human rights we focus on the risks, opportunities and issues that and a workshop with subject matter experts to 05.7 Our impact on the U.N. Sustainable matter most to our key stakeholders, and which 3. Analysis and validation: We aggregated gather insights on Allianz’s key business drivers, Development Goals and analyzed data, integrating the results objectives and priorities. Through our internal 05.8 Independent practitioner’s report we have the ability to influence. Our most recent into a materiality map, and presented results on a limited assurance engagement assessment was carried out in 2021 in line with the to the internal expert pool of representatives. communications, we conducted a survey of Allianz on sustainability information 2020 GRI Standard requirements. Our assessment employees worldwide to gather their perspectives approach used a variety of data sources and we This group also provided the final judgment on the most relevant topics. improved our methodology in 2021 by increasing of outcomes. Customers: We analyzed multiple reports based the number of data sources and the number of Understanding stakeholder views on customer surveys and engagements from data points within these sources. The views of stakeholders were collected during various lines of business including property and We created an internal expert pool with the identification and prioritization phases casualty, life & health, and investment. representatives from Group functions including on two aspects: the importance of topics to Sustainability rating agencies: We carried out Group Risk, Communications, Group Compliance, society (encompassing economic, societal and a review of internal documents from selected Group Legal, Group Accounting and Reporting, environmental aspects) and the importance of key ratings for Allianz to identify the most as well as Global Sustainability. This pool was topics to the Allianz business (including potential relevant issues. formed at an early stage to discuss the overall impact on our business). The data was integrated approach, preliminary results and feedback. into an independent, third-party analysis model Final results were presented and agreed to by the which weighs different inputs and maps the Group centers which had also been part of the results. The result is an overall prioritization expert pool. outcome along the two axes of importance to society and to Allianz as a business. Input was collected from the following stakeholders: 101

Sustainability Report 2021 05.3 Materiality 01 Introduction Materiality matrix Our material issues Our assessment identified 19 material issues 02 Measuring and which were prioritized as either having high or managing sustainability Highest medium importance. Topics are ranked and Climate change presented in a materiality matrix along two 03 Str engthening axes according to stakeholder views on their our foundation Ethics and responsible business importance to society and to our business. 04 Climate-r elated All topics in the materiality matrix relate to financial disclosure ciety Human rights sustainability and several are linked to our Cybersecurity sustainability strategy pillars, including: 05 Our universal principles e to so Sustainability integration into products Data privacy E: Our climate approach – climate change, 05.1 Target and achievement tables environmental footprint in our operations. 05.2 How we report: transparent tanc Responsible tax Diversity and Inclusion S: Our social approach – financial inclusion, reporting, ratings and performance or local community engagement, human rights, D&I. 05.3 Materiality Customer and product safety Financial Talent Health and 05.4 Stakeholder engagement High inclusion attraction healthcare access G: Our approach to sustainability integration 05.5 Sustainability governance Environmental footprint in operation and retention – ethics and responsible business, data and AI 05.6 Our commitment to human rights ethics, data privacy, cybersecurity, sustainability 05.7 Our impact on the U.N. Sustainable Customer innovation integration into products. Development Goals The top three most material issues for all our key 05.8 Independent practitioner’s report Local community engagement on a limited assurance engagement stakeholders and our business are: on sustainability information eholder view on imp 1. Climate change Natural disasters Stak 2. Ethics and responsible business Demographic change Data and AI Ethics 3. Cybersecurity Social and political unrest Medium High Highest Stakeholder view on importance to Allianz’s Business Environmental Social Governance New topics in 2021 102

Sustainability Report 2021 GRI GRI 102-12 GRI 102-40 GRI 102-42 05.4 Stakeholder engagement GRI 102-43 GRI 102-44 Stakeholder engagement 1 01 Introduction Key stakeholder groups Why engagement is important How we engage 02 Measuring and and collaboration is crucial Investors We engage with investors to communicate our sustainability strategy Annual General Meeting managing sustainability to understand our impacts and performance, to enable them to make informed decisions about Dialogs and roadshows their investments, and to understand their expectations of our business. and drive progress across our Ratings (e.g. S&P Global CSA, MSCI ESG) and benchmarks 03 Str engthening Website, Sustainability Report, Non-financial supplement, our foundation sustainability challenges and Analyst Presentation 04 Climate-r elated opportunities. Understanding Customers Feedback from customers helps improve our products, services, Customer surveys:/learning from and sharing customer insights financial disclosure stakeholder needs enables and processes and ensures we offer easy and adaptable solutions. Review of financial services sector developments 05 Our universal principles us to design products and Research and development to support product innovations 05.1 Target and achievement tables services that scale our positive Net Promoter Score (NPS) 05.2 How we report: transparent Allianz Risk Barometer Survey reporting, ratings and performance contribution to tackling 05.3 Materiality Sustainability Factbook 05.4 Stakeholder engagement social, environmental, Society Engaging with civil society, governments and institutions helps us to Partnerships for civic engagement 05.5 Sustainability governance and economic issues. drive positive change and contribute to effective regulation and multi- Thought leadership on global issues 05.6 Our commitment to human rights stakeholder partnerships. 05.7 Our impact on the U.N. Sustainable We use our materiality analysis, customer surveys Panel discussions and roundtables Development Goals and direct engagement with a diverse range of Foundations, donations and volunteering 05.8 Independent practitioner’s report stakeholders to shape our strategy, activities and Formal dialogs with NGOs and sustainability professionals on a limited assurance engagement reporting. Besides engagement with international on sustainability information Employees Listening and responding to our employees’ views, ideas and concerns The Allianz Engagement Survey (AES) and national sustainability bodies and initiatives, shapes our strategy, values and workplace while enabling Allianz to Employee dialogs and networks we focus on four key stakeholder groups which generate long-term value. are most impacted by our business. Corporate volunteering programs Events for employees (including the Allianz Sustainability Forum and the Allianz World Run) 1 Due to COVID-19 restrictions, some of the events and engagements took place in a virtual form. 103

Sustainability Report 2021 GRI GRI 102-12 05.4 Stakeholder engagement GRI 102-13 01 Introduction Partnerships for change Memberships We believe collaboration and long-term Founding member, The U.N. Convened Net-Zero Asset Owner Alliance (AOA) 02 Measuring and partnerships are instrumental in delivering Founding member, The U.N. Convened Net-Zero Insurance Alliance (NZIA) managing sustainability positive change. Addressing global challenges Member, Net-Zero Asset Managers Initiative (NZAM) like climate change and human rights requires 03 Str engthening collective action involving business, governments Member, Glasgow Financial Alliance for Net-Zero (GFANZ) our foundation and civil society. Allianz’s businesses are members Member and co-chair, U.N. Convened Global Investors for Sustainable Development (GISD) Alliance of a wide range of sustainability-related initiatives Signatory, Principles for Responsible Investment (PRI) 04 Climate-r elated and principles. Signatory, Principles for Sustainable Insurance (PSI) financial disclosure Founders Circle, The B Team 05 Our universal principles Building confidence Member, RE100 05.1 Target and achievement tables in tomorrow… Member, Investor Agenda 05.2 How we report: transparent Member, UNEP Finance Initiative (UNEP FI) reporting, ratings and performance …in partnership with the Olympic Signatory, U.N. Global Compact (UNGC) 05.3 Materiality and Paralympic Movements Member, World Economic Forum Alliance of CEO Climate Leaders 05.4 Stakeholder engagement Signatory, World Economic Forum initiative for Stakeholder Capitalism 05.5 Sustainability governance Allianz officially began its eight-year Investor signatory, ClimateAction100+ (CA100+) 05.6 Our commitment to human rights Worldwide Insurance Partnership with the 05.7 Our impact on the U.N. Sustainable Olympic and Paralympic Movements on Founding Member, Climate Leadership Council (CLC) Development Goals 1 January 2021, building on a collaboration Member, ClimateWise 05.8 Independent practitioner’s report with the Paralympic Movement since 2006. Member, The Global Innovation Lab for Climate Finance on a limited assurance engagement Through the partnership, Allianz is supporting Member, Institutional Investors Group on Climate Change (IIGCC) on sustainability information athletes as ambassadors, mentors and Member, Insurance Development Forum (IDF) employees and is supporting the Olympic Member, InsuResilience Partnership and Paralympic Movements with insurance Member, Investment Leaders Group (ILG) solutions and services. Our partnership will Member, Investor Leadership Network – A G7 initiative (ILN) engage youth with the spirit and values of Member, Munich Climate Insurance Initiative (MCII) the Movements at Allianz Sports Camps. Plus, we have introduced a podcast that will Member, Science Based Target Initiative (SBTi) put a spotlight on those supporting athletes’ Member, Stifterverband der Deutschen Wissenschaft mental health. Unlocking barriers for people Supporter, Transition Pathway Initiative (TPI) with disabilities is one of the foundations of Supporter, Task Force on Climate-related Financial Disclosure (TCFD) our Corporate Citizenship Strategy. We are Member and Guardian, Vatican Council for Inclusive Capitalism (membership ended 31.12.2021) committed to being an inclusive employer and have launched a special focus on hiring Partnerships current and former Para athletes. In 2021, five athletes joined Allianz. Partnership with the German Corporation for International Cooperation (GIZ) Find out more here Local partnership with SOS Children’s Villages International Supporter World Clean Up Day 104

Sustainability Report 2021 05.5 Sustainability governance 01 Introduction We believe in responsible Group Sustainability Board Allianz SE Supervisory Board Linking sustainability performance and transparent governance As the Group’s parent company, the ultimate Sustainability Committee with Board remuneration 02 Measuring and responsibility for all matters relating to As a measure to strengthen sustainability In 2020, the Supervisory Board linked Allianz managing sustainability to enable the creation of sustainability resides with the Board of matters within the Allianz Group, in 2021, the SE Board of Management remuneration to sustainable value for all Management of Allianz SE. To support the Board Supervisory Board of Allianz SE established its specific sustainability targets. Board members’ 03 Str engthening of Management in its respective decision-making Sustainability Committee to oversee sustainability individual contribution factor looked at progress our foundation stakeholders. This extends process, Allianz SE has established a dedicated issues, to advise the Board of Management towards environmental and net-zero targets to our governance of Group Sustainability Board (known until January on ethical standards concerning the usage of for proprietary investments and Allianz Group 04 Climate-r elated 2022 as the Group ESG Board) as an advisor on data (Data Ethics), and to monitor the Board operations. In 2021, the variable component financial disclosure sustainability issues as we work all matters around sustainability. It is composed of of Management’s sustainability strategy. of Board member’s remuneration (individual 05 Our universal principles to embed sustainability and members of the Board of Management of Allianz It supports with sustainability-related target contribution factor) considered a range of SE and Group Center heads, and meets at least setting and performance reviews for Board of sustainability-related targets: 05.1 Target and achievement tables deliver sustainable outcomes quarterly. The core responsibilities of the Group Management remuneration. 05.2 How we report: transparent Sustainability Board are: On top of these specific sustainability-related reporting, ratings and performance across our global business Read more about the Sustainability targets, other non-financial factors such as 05.3 Materiality • Preparing the overall framework for Committee and its member here. customer satisfaction (NPS) and employee 05.4 Stakeholder engagement and organization. sustainability for the Allianz Group. engagement (IMIX) also contribute to Board 05.5 Sustainability governance • Aligning sustainability (ESG) integration Other Committees member’s remuneration. 05.6 Our commitment to human rights into the Allianz Group’s business processes In addition to the Sustainability Committee and For further details about the remuneration 05.7 Our impact on the U.N. Sustainable with Allianz as an organization (operations Sustainability Board, several other committees system of Allianz Group, please see the Group Development Goals and organization) and Allianz as a play an important role in Allianz’s decision- 05.8 Independent practitioner’s report Annual Report 2021, Remuneration Report, on a limited assurance engagement financial institution (investment, insurance, making processes: pages 27–52. on sustainability information asset management). • The Group Finance and Risk Committee • Related internal and external communication. oversees risk management and monitoring, Furthermore, it assumes responsibility for including sustainability risk. the oversight and steering of overarching • The Group Underwriting Committee monitors sustainability matters, such as topics concerning the underwriting business, its risk management the climate, society and governance. and development of underwriting policies The work of the Group Sustainability Board is also and strategies. This includes the integration supported by corporate functions and operating of sustainability into these processes. entities, which implement sustainability matters in • The Group Investment Committee focuses their activities. on fundamental investment-related topics, including sustainability-related matters. 105

Sustainability Report 2021 05.5 Sustainability governance 01 Introduction Sustainability governance at Allianz Allianz SE Board members represented on the Group Sustainability Board Dr. Günther Thallinger Lauren Day 02 Measuring and Supervisory Board Chairperson of the Group Sustainability Board Head of Group Communications and Reputation managing sustainability (incl. Sustainability Committee) Member of the Board of Management of Allianz 03 Str engthening Regular exchange and 1 Regular exchange and SE, responsible for Investment Management, Hervé Gloaguen our foundation alignment with Heads Board of Management GFRC / GUC / GIC alignment with representatives Sustainability of Group functions on from operating entities on Group Chief Compliance Officer 04 Climate-r elated sustainability matters Group Sustainability Board sustainability matters financial disclosure Dr. Barbara Karuth-Zelle Line Hestvik Group Regulatory and Composition Tasks Allianz Investment Member of the Board of Management of Allianz Group Chief Sustainability Officer 05 Our universal principles Public Affairs Voting Regular reporting to SE Management SE, responsible for Operations and IT (COO) 05.1 Target and achievement tables Five BoM members2 Board of Management 05.2 How we report: transparent Functional Heads of Advising and aligning Aylin Somersan-Coqui reporting, ratings and performance Group Risk on all relevant Group Dr. Klaus-Peter Röhler Chief Risk Officer of Allianz SE 05.3 Materiality Group Accounting 3 sustainability matters Allianz Asset Member of the Board of Management of Allianz and Reporting GCORE Management SE, responsible for Insurance German Speaking 05.4 Stakeholder engagement Global Sustainability Further elevate 05.5 Sustainability governance Group Compliance sustainability topics Countries and Central and Eastern Europe 05.6 Our commitment to human rights (see list of Group in governance and 05.7 Our impact on the U.N. Sustainable Group Operations Sustainability Board decision-making Allianz Global Corporate Development Goals and Performance members on the right) processes of the Group and Specialty Christopher Townsend 05.8 Independent practitioner’s report Member of the Board of Management of Allianz on a limited assurance engagement SE, responsible for Global Insurance Lines and on sustainability information Global P&C Retail, And others ad hoc Anglo Markets, Reinsurance, Middle East, Africa Global P&C Commercial, Center of competence Life & Health Global Sustainability Full-time support to Sustainability Board Dr. Andreas Wimmer BoM Member for HR, Sustainability integration into business Member of the Board of Management of Legal, Compliance, M&A Allianz SE, responsible for Asset Management, US Life Insurance And others ad hoc 1 Group Finance and Risk Committee (GFRC), Group Underwriting Committee (GUC), Group Investment Committee (GIC). 2 Responsible for i) Investment Management, Sustainability (Chair); ii) Asset Management, US Life Insurance; iii) Operations, Allianz Services iv) Global Insurance Lines & Anglo Markets, Reinsurance, Middle East, Africa, v) Insurance German Speaking Countries and Central & Eastern Europe. 3 Group Communications and Reputation (GCORE). 106

Sustainability Report 2021 05.5 Sustainability governance 01 Introduction Sustainability management In June 2021, Allianz created a Sustainable The network includes: On 01 January 2021, responsibility for Allianz’s Operations function within Group Operations • Sustainability Leads responsible for 02 Measuring and sustainability agenda shifted to a new Global and IT. The ambition of the new function is coordinating and leading sustainability managing sustainability Sustainability function, headed by the Chief to strengthen the sustainability approach of integration in our operating entities; Sustainability Officer (CSO) who reports to the Allianz’s operating entities with a primary focus 03 Str engthening Chairperson of the Group Sustainability Board. on IT infrastructure and applications, facility • Local Environment Officers responsible for our foundation Global Sustainability supports Allianz’s group management, procurement and business travel. managing the environmental footprint of centers and operating entities to effectively Sustainable Operations monitors and promotes our operations; 04 Climate-r elated integrate the Group’s strategic sustainability the progress of Allianz’s sustainability activities • Non-Financial Data Coordinators responsible financial disclosure approach and policies into their business in these areas. It also steers and coordinates for sustainability reporting; processes. The function drives the integration of sustainable operations initiatives and enables • Corporate Citizenship Leads who drive CSR 05 Our universal principles sustainability-related matters in the organization best practice sharing across Allianz entities. activities and partnerships; and 05.1 Target and achievement tables and business, aiming at Allianz taking a shaping Embedding sustainability 05.2 How we report: transparent role on sustainability in the societies and • Sustainability/ESG experts and centers reporting, ratings and performance economies Allianz operates in. Responsibility across our global organization of competence in our business functions 05.3 Materiality for sustainability reporting shifted to Group We strive towards integration of sustainability in at group-level (P&C, L&H, investments, 05.4 Stakeholder engagement Accounting and Reporting which collaborates every decision made at Allianz. This means that asset management) as well as in our group 05.5 Sustainability governance closely with Global Sustainability to produce all business and support functions, should embed centers (procurement, operations, etc.). 05.6 Our commitment to human rights this report. sustainability in their strategies and approaches. 05.7 Our impact on the U.N. Sustainable Development Goals To support this ambition, Group Sustainability 05.8 Independent practitioner’s report works with an expansive network of sustainability on a limited assurance engagement experts located across Allianz’s operating entities on sustainability information globally. They support the implementation of the group-wide sustainability approach and helps share best practice and scale positive impacts across the organization. 107

Sustainability Report 2021 05.6 Our commitment to human rights 01 Introduction Respect for human rights We continue to apply ESG and Human Rights In terms of our investments, if we identify an We continuously engage with the B Team and is a minimum standard Guidelines for sensitive countries across all issuer in our listed investment portfolio that is business across industries to exchange and better 02 Measuring and business lines and core processes dealing with flagged for human rights issues by our external understand human rights topics. managing sustainability for responsible business insurance, investment, and procurement decisions. sustainability data provider, we prioritize For more details on employee rights, In 2021, we collaborated with a third-party this issuer for a systematic engagement gender equality and diversity initiatives, 03 Str engthening within and beyond our consulting company to perform a Human (see section 02.2). see section 02.4. our foundation direct operations. This is an Rights Impact Assessment based on UNGP’s Read the Allianz Group Code of Conduct. expectation that is reflected methodology to identify gaps in our approach 46 04 Climate-r elated and continue to improve human rights integration Respecting human rights in financial disclosure by expanding legislation in our core business and organization. We will ESG referrals were assessed under the continue to work on improvement points based on human rights guideline in 2021. our operations 05 Our universal principles and applied across our the findings of this assessment. Human rights due diligence in our operations is 05.1 Target and achievement tables global operations. Read the Allianz Group ESG Respecting human rights as an employer part of our ESG referral and assessment process 05.2 How we report: transparent Integration Framework. (see section 01.6). For procurement activities, reporting, ratings and performance We are committed to respecting various human We apply the Universal Declaration of Human a negative answer to human rights-related 05.3 Materiality rights standards and have been a participant Rights as an employer throughout our worldwide screening questions in the vendor integrity 05.4 Stakeholder engagement in the U.N. Global Compact (UNGC) since 2002. Integrating human rights operations. We have integrated the 10 principles of screening triggers sustainability assessment at 05.5 Sustainability governance We annually communicate our progress against into our core business the UNGC into our globally binding Allianz Group Group level. In 2021, we revised this screening 05.6 Our commitment to human rights these principles. As a corporate insurer and investor, our human Code of Conduct and we respect the Organization questionnaire with additional questions. These are 05.7 Our impact on the U.N. Sustainable rights due diligence process forms part of our for Economic Co-operation and Development published in the annex of the Allianz Group Development Goals We aim to identify, prevent, or mitigate adverse overall sustainability approach which is integrated (OECD) Guidelines for Multinational Enterprises. 05.8 Independent practitioner’s report human rights impacts linked to our business Vendor Code of Conduct. on a limited assurance engagement activities and operations including our supply into our broader risk management system (see Allianz endorses the Declaration on Fundamental We extend our commitment to international on sustainability information chain. The U.N. Guiding Principles on Business and Table ESG-3). We use a combination of sector Principles and Rights at Work, including the ILO human rights standards to the workforce of our Human Rights (UNGP) provide a framework for and country-specific approaches to identify declaration on the freedom of association and suppliers and those impacted by our supply chain. responsible business operations and activities. human rights risks. the right to collective bargaining. In countries Our Global Sourcing and Procurement function Read our UNGC Communication on Progress. Human rights-related due diligence has been where local law prohibits formalized unions assesses current and potential suppliers to ensure integrated into all 13 sensitive business areas and works councils, we respect local law but do they abide by the ESG guidelines outlined in the In the German context, Allianz commits to the where relevant, to ensure that human rights not obstruct parallel means of association and Allianz Vendor Code of Conduct (CoC), which is National Action Plan for Business and Human are part of the overall risk assessment for bargaining, and we strive to act in the spirit of the aligned with ILO standards, UNGP and UNGC Rights which is based on the U.N. Guiding insurance and investments in non-listed asset UNGC principles. (see section 03.6). Allianz is also committed to Principles on Business and Human Rights. classes. We maintain a mandatory referral list Our commitment to foster workplace and gender compliance with the Modern Slavery Act in the To manage our human rights impacts, we must for sensitive countries where systematic human equality goes to the core of our commitment as U.K., both from the perspective of our U.K. business look across each of our roles as an insurer and rights violations occur. For business transactions an employer. Allianz is a supporter of the U.N. and the interactions of our wider Group. No issues investor, as an employer, as a company including located in these countries, we carry out explicit Women’s Empowerment Principles and the B were raised regarding human rights issues in our supply chain and as a corporate citizen. For due diligence in accordance with our Human Team’s Principles for Equality which aim to ensure accordance with the Modern Slavery Act in 2021. each of these roles, we have embedded different Rights Guideline that covers various human rights equitable, safe, and dignified workplaces that Read the Allianz Group Vendor Code processes to manage human rights risks and act violations. Additional details on these human respect human rights and allow people to thrive. of Conduct. on opportunities to drive positive change. In 2021, rights assessments can be found in Table ESG-3. we strengthened our approach by publishing our Read the Allianz Group 2021 Statement Human Rights Approach embedded in the Allianz on Modern Slavery. Group ESG Integration Framework. Access our grievance mechanism. 108

Sustainability Report 2021 05.7 Our impact on the U.N. Sustainable Development Goals 01 Introduction Allianz is putting an emphasis on SDGs 8, 13, and 17. 02 Measuring and 01 Introduction managing sustainability 01.1 Message from the CEO, page 05 03 Str engthening 01.4 Our social approach, page 09 our foundation 01.5 Our climate approach, page 10 01.6 Our sustainability integration approach, page 11 04 Climate-r elated 02 Measuring and managing our sustainability financial disclosure 02.1.1 Integrating sustainability in insurance, page 18 05 Our universal principles 02.1.2 Climate change and decarbonization, page 18 02.1.3 Natural disasters, page 20 05.1 Target and achievement tables 02.1.4 Emerging consumers, page 21 05.2 How we report: transparent 02.1.5 Sustainable solutions, page 22 reporting, ratings and performance 05.3 Materiality 02.2.1 Integrating sustainability in proprietary investments, page 25 05.4 Stakeholder engagement 02.2.2 Sustainable investments, page 28 05.5 Sustainability governance 02.2.3 Sustainability in real estate investments, page 32 05.6 Our commitment to human rights 02.3 Sustainability in asset management, page 33 05.7 Our impact on the U.N. Sustainable 02.4 Human resources, page 37 Development Goals 05.8 Independent practitioner’s report 02.4.1 Diversity and inclusion, page 42 on a limited assurance engagement 02.4.2 Training and developing our people, page 44 on sustainability information 02.4.3 Engaging our employees, page 45 02.4.4 Health and well-being, page 47 02.5 Customer satisfaction, page 49 02.6 Environmental management, page 51 03 Strengthening our foundation 03.1 Corporate citizenship, page 57 03.2.1 Data privacy, page 59 03.2.4 Cyber risk, page 60 03.3 Regulatory and public affairs, page 61 03.4 Compliance, page 62 03.5 Tax transparency, page 64 03.6 Sustainable procurement, page 65 04 Climate-related financial disclosure 04 Climate-related financial disclosure, page 66 05 Our universal principles 05.2 How we report: transparent reporting, ratings and performance, p. 94-95 05.4 Stakeholder engagement, page 98 109

Sustainability Report 2021 05.8 Independent practitioner’s report on a limited assurance engagement on sustainability information 01 Introduction 02 Measuring and To Allianz SE, Munich, well as the Standard on Quality Control 1 1 January to 31 December 2021 have not been • Evaluation of the description of the processes managing sustainability We have performed a limited assurance published by the Institut der Wirtschaftsprüfer prepared, in all material aspects, in accordance in place and activities undertaken to apply the 03 Str engthening engagement on the disclosures in the Sustainability (Institute of Public Auditors in Germany; IDW): with the relevant GRI-Criteria. TCFD Recommendations. our foundation Report of Allianz SE, Munich (hereinafter: Requirements to quality control for audit In a limited assurance engagement the assurance Assurance Conclusion ‘the Company’), for the period from 1 January to firms (IDW Qualitätssicherungsstandard 1: procedures are less in extent than for a reasonable 04 Climate-r elated 31 December 2021 (hereinafter: ‘Report’). Anforderungen an die Qualitätssicherung in assurance engagement and therefore a substantially Based on the assurance procedures performed financial disclosure der Wirtschaftsprüferpraxis - IDW QS 1) – and lower level of assurance is obtained. and assurance evidence obtained, nothing has Responsibilities of the accordingly maintains a comprehensive system come to our attention that causes us to believe 05 Our universal principles Executive Directors of quality control including documented policies The assurance procedures selected depend on the that the disclosures in the Company’s Report for and procedures regarding compliance with practitioner’s judgment. the period from 1 January to 31 December 2021 05.1 Target and achievement tables The executive directors of the Company are ethical requirements, professional standards and 05.2 How we report: transparent responsible for the preparation of the Report Within the scope of our assurance engagement, have not been prepared, in all material aspects, reporting, ratings and performance in accordance with the principles stated in the applicable legal and regulatory requirements. we performed amongst others the following in accordance with the relevant GRI-Criteria. 05.3 Materiality Sustainability Reporting Standards of the Global Practitioner’s Responsibility assurance procedures and further activities: Intended Use of the Assurance Report 05.4 Stakeholder engagement Reporting Initiative (hereinafter: ‘GRI-Criteria’). • Obtaining an understanding of the structure 05.5 Sustainability governance Our responsibility is to express a limited assurance of the sustainability organization and of the We issue this report on the basis of the 05.6 Our commitment to human rights This responsibility of Company’s executive conclusion on the disclosures in the Report based stakeholder engagement. engagement agreed with the Company. 05.7 Our impact on the U.N. Sustainable directors includes the selection and application of on the assurance engagement we have performed. The assurance engagement has been performed Development Goals appropriate methods of sustainability reporting as Within the scope of our engagement we did not • Inquiries of personnel involved in the preparation for purposes of the Company and the report is 05.8 Independent practitioner’s report well as making assumptions and estimates related perform any procedures on external sources of of the Report regarding the preparation process, solely intended to inform the Company as to the on a limited assurance engagement to individual sustainability disclosures, which are the internal control system relating to this process results of the assurance engagement. The report is on sustainability information information or expert opinions, referred to in the and selected disclosures in the Report. reasonable in the circumstances. Furthermore, Report. Furthermore, we did not perform any not intended to provide third parties with support the executive directors are responsible for such procedures on any forward-looking statements • Inspection of processes for collecting, controlling, in making (financial) decisions. Our responsibility internal control as they have considered necessary such as projections and forecasts or on the analyzing and aggregating selected data at lies solely toward the Company. We do not to enable the preparation of a Report that is free suitability of design or operating effectiveness specific sites of the Company. assume any responsibility towards third parties. from material misstatement whether due to fraud of the processes and activities described in • Identification of the likely risks of material or error. chapter ‘Climate-related financial disclosure’ misstatement of the Report under consideration of the Report. of the GRI-Criteria. Munich, 28 April 2022 Independence and Quality Control of PricewaterhouseCoopers GmbH the Audit Firm We conducted our assurance engagement in • Analytical evaluation of selected disclosures Wirtschaftsprüfungsgesellschaft We have complied with the German professional accordance with the International Standard on in the Report. provisions regarding independence as well as Assurance Engagements (ISAE) 3000 (Revised): • Comparison of selected disclosures with other ethical requirements. Assurance Engagements other than Audits or corresponding data in the consolidated financial Richard Burger Hendrik Fink Reviews of Historical Financial Information, statements and in the management report. Wirtschaftsprüfer Wirtschaftsprüfer Our audit firm applies the national legal issued by the IAASB. This Standard requires that (German Public Auditor) (German Public Auditor) requirements and professional standards – in we plan and perform the assurance engagement • Evaluation of the presentation of the selected particular the Professional Code for German to allow us to conclude with limited assurance that disclosures regarding sustainability performance. Public Auditors and German Chartered nothing has come to our attention that causes us Auditors (‘Berufssatzung für Wirtschaftsprüfer to believe that the disclosures in the Company’s und vereidigte Buchprüfer’: ‘BS WP/vBP’ as Report for the period from 110

Sustainability Report 2021 Imprint Photo credits Cautionary note regarding forward- Supporting Sustainability Copyright © Allianz SE 2022 Allianz internal images looking statements Report documents Publisher Unsplash The statements contained herein may include Click here to view the GRI Content Index. Getty Images statements of future expectations and other Click here to view the Explanatory Notes. Allianz SE Net Promoter Score® forward-looking statements that are based on Group Accounting and Reporting management’s current views and assumptions Global Sustainability ‘Net Promoter®, NPS®, NPS Prism®, and the NPS- and involve known and unknown risks and Königinstraße 28 related emoticons are registered trademarks uncertainties that could cause actual results, 80802 Munich of Bain & Company, Inc., Satmetrix Systems, performance or events to differ materially from Germany Inc., and Fred Reichheld. Net Promoter Score® those expressed or implied in such statements. www.allianz.com and Net Promoter System® are service marks of The company assumes no obligation to update [email protected] Bain & Company, Inc., Satmetrix Systems, Inc., any forward-looking statement. and Fred Reichheld.’ Project responsibility We welcome your views Moritz Ehrenfeld We warmly invite all our stakeholders to Group Accounting and Reporting provide feedback and comments on our Allianz SE Sustainability Report: Design, concept and production [email protected] Radley Yeldar, London, U.K. ry.com We would like to thank all our colleagues and partners who have supported and contributed to the creation of this report. Date of publication: 29 April 2022 Click here to view the SASB Click here to view the WEF Content Index. Metrics Index. 111

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