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