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