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