Sustainability Report 2021 01.6 Our sustainability integration approach 01 Introduction Our commitment to tackling Examples include environmental and climate 01.6.2 Our group-wide rules The publicly available Allianz ESG Integration change risks, human rights violations, risks to Framework provides transparency around our 01.1 Message from the CEO environmental, social, and local communities and workforce risks. If they and processes sustainability-related processes and guidelines. 01.2 Company description and strategy governance (ESG, here are not identified and managed effectively, Our approach applies group-wide corporate We published the fourth version of the 01.3 Our sustainability approach sustainability risks can have significant rules and sustainability processes across all Framework in 2021. 01.4 Our social approach referred to as sustainability) repercussions for Allianz and our customers, relevant underwriting, proprietary investment, Our asset management units have set up their 01.5 Our climate approach topics ensures we embed suppliers and invested companies. These span and operations activities. This requires strong own set of processes, rules, and governance on 01.6 Our sustainability legal and reputational risks, supply chain and collaboration between relevant functions sustainability integration in their investment activities. integration approach sustainability everywhere, business disruption risks, quality and operational and business areas. Key processes include the 01.7 2021 Reporting highlights both in our own operations risks and financial risks. internal Allianz Standard for Reputational Risk 02 Measuring and Sustainability factors also present business Management and other corporate rules such as 01.6.3 Embedding sustainability managing sustainability and across our insurance, opportunities such as insuring and investing the Allianz Standards for P&C Underwriting and in insurance, proprietary proprietary investment, and in renewable energy and affordable housing Allianz ESG Functional Rule for Investments. investments and operations 03 Str engthening or supporting the energy transition through Consistent application of sustainability processes our foundation asset management activities. insurance and investments. in insurance and proprietary investment activities is 04 Climate-r elated As a global insurer, investor, and asset manager, By scrutinizing insurance and investments crucial to mitigate risks and capture opportunities financial disclosure understanding and managing sustainability issues projects from a sustainability perspective, arising from sustainability trends. allows us to reduce risks and capture opportunities Allianz extends its understanding of risks and We have put in place the processes outlined in the 05 Our universal principles in all areas of our business. As well as managing seizes potential business opportunities for the table below across our business. risks, sustainability integration directs us to create benefit of shareholders, customers, and other Further details on our sustainability integration sustainable products and services that add value stakeholders. Holistic assessment of risk is approach in insurance, proprietary investments, to society, collaborate with clients and investees to especially relevant to Allianz as an insurance and asset management can be found in section deliver real-world benefits and direct capital flows company that manages and carries risks ranging 02.1 to 02.3 as well as in the Allianz ESG towards sustainable outcomes for all stakeholders. from single events to decades. Integration Framework. 01.6.1 What is sustainability and why it is important? Sustainability integration processes Business areas Details Sustainability (or ESG) risks and opportunities P&C Ins. Investments Investments Organization, refer to the non-financial risks and opportunities (listed) (non-listed) Procurement which can be influenced by and/ or can influence ESG referral and assessment process (including Systematic integration of sustainability risks by conducting Allianz’s business activities and operations. In the sensitive business areas, sensitive countries) case-by-case due diligence of critical transactions. Allianz Group Risk Policy, we define sustainability ESG scoring process (including climate- Systematic integration of sustainability risks through risks as events or conditions which, if they occur, related data) sustainability ratings and climate-related data. could have significant negative impacts on the ESG exclusions process (including coal, oil sands, Exclusion of investment and insurance transactions in assets, profitability, or reputation of Allianz Group controversial weapons, human rights) critical business areas. or one of its companies. ESG engagement and risk dialogues (on Systematic engagement with investee companies and sustainability, climate and human rights topics) clients on sustainability-related matters. ESG in business partner selection (including asset Inclusion of sustainability-related criteria in the selection, managers, reinsurers, vendors, etc.) appointment and monitoring of business partners. 11