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