Sustainability Report 2021 04.3 Strategy 01 Introduction Active company dialogue, joining forces Addressing climate change in our own achieved when anthropogenic emissions of GHGs Through our additional memberships, including and targeted engagement business operations to the atmosphere are balanced by anthropogenic The B Team and World Economic Forum (WEF) 02 Measuring and We actively engage investee companies and We rate impacts from climate change risks on the removals over a specified period. We support Alliance of CEO Climate Leaders, we encourage managing sustainability insurance clients using a variety of channels operations of the Allianz Group to be of limited this understanding in the context of our net- companies within our sector and beyond to step and formats. A key forum for engaging the materiality. The exposure of Allianz offices and zero commitment. We expect to define our new up and improve their climate strategies and 03 Strengthening 167 most carbon-intensive companies is Climate data centers to locations at high risk of extreme strategy on this matter in 2022. climate disclosures, as well as develop our own. our foundation Action 100+ (CA100+), a collective engagement weather events is contained and managed Partnerships, memberships and Allianz partners with international organizations platform made up of more than 600 global through risk mitigation measures as well as financial industry engagement to drive climate-smart investment and insurance. 04 Climate-related investors responsible for more than $60 trillion business continuity and disaster recovery plans. One example is the Sustainable Development financial disclosure in assets under management across 33 markets. We actively contribute to specialized initiatives Investment Partnership (SDIP) which aims to 04.1 Highlights Our goals and actions in CA100+ are explained The low-carbon footprint of our operations makes that focus on decarbonization, including: scale the use of blended finance in sustainable 04.2 Governance in section 02.2.3. us less prone to carbon price risk and we have • The Glasgow Financial Alliance for infrastructure investments in developing countries, 04.3 Strategy committed to reduce it further (see section 02.6). Net-Zero (GFANZ), NZIA, AOA and Science an initiative coordinated by the WEF with support 04.4 Strategy resilience, stress-tests and AIM has a dedicated engagement function Forest protection to protect carbon sinks Based Targets initiative (SBTi) represent from the OECD. Another example is our three- climate scenario analysis for proprietary investments. AIM systematically year strategic alliance with GIZ aimed at ‘Closing 04.5 Risk and opportunity management engages with external asset managers on and biodiversity the commitment to decarbonize our the Protection Gap’ around climate risks in 04.6 Targets and metrics climate integration, climate risk management, In 2019, we committed to pursue efforts to limit operations, proprietary investments and P&C developing countries. proxy voting processes and public discourse. global warming to a maximum of 1.5°C by the insurance underwriting. 05 Our universal principles In addition, our internal asset managers, AllianzGI end of the century and aim for net-zero emissions • CA100+ coordinates the investor community We are an active member of climate-related and PIMCO, and our insurance entities are active by 2050. We have claimed our operations to engagement of 167 of the largest global industry associations and initiatives including the stewards on climate-related matters. be ‘carbon neutral’ since 2012. This has been corporates on climate matters and Allianz Munich Climate Insurance Initiative, Chief Risk achieved through investments in the protection leads engagements. Officer Forum, Climate Finance Lab, Accelerating For more details on our engagement of existing rainforests (Wildlife Works Carbon • The Transition Pathway Initiative (TPI) assesses Sustainable Finance initiative, Geneva Association, approach please see section 02.2 and 02.3. and Rimba Raya), maintaining significant the climate performance of corporates across a ClimateWise, RE100 and others. For voting records of AllianzGI, please refer carbon sinks and biodiversity while empowering variety of sectors. For more details on stakeholder engagement to their overview web page. the local population through job creation, • The G7 Investor Leadership Network (ILN) see section 05.3 in this report. We are joining forces with other asset owners provision of health care and education and and Institutional Investors Group on Climate in encouraging companies to implement preserving biodiversity. Change (IIGCC) serve as networks to share and transition pathways. Our participation in the Looking ahead, we believe the focus should be develop best practice. Allianz is represented on Transition Pathway Initiative (TPI), CA100+ and both on reducing emissions in line with science the board of both. the Principles for Responsible Investment (PRI) and protecting natural systems. We have set • Open Source Climate is a group of corporates connects us with like-minded investors and offers corresponding targets to reduce emissions in to jointly build a ‘pre-competitive layer’ of opportunities for collaborative engagement. our investments and operations. Science has modeling and data that is globally shared and On decarbonization matters, the AOA strives to made clear that the 1.5°C target will require accessible. Allianz is represented on the board. be the link between these existing engagement an upscaled removal of emissions from the platforms, asset owners, target verification atmosphere into technical and natural carbon initiatives and tools and policymakers. sinks. The IPCC defines carbon neutrality as 71