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