Sustainability Report 2021 01.5 Our climate approach 2 01 Introduction 01.5.1 Our ambition Target Setting Protocol of the AOA , where we 01.5.3 Our Climate Furthermore, we are piloting new approaches that have taken on a shaping role. Also, our fully combine insurance offerings with measures that 01.1 Message from the CEO Our climate approach is grounded in the Allianz owned real estate portfolio is intended to be Change Strategy strengthen their resilience. These are, for instance, 01.2 Company description and strategy Group Climate Change Strategy. With a special in line with scientifically based 1.5°C pathways Allianz has had a Climate Change Strategy approaches to incentivize people to reduce 01.3 Our sustainability approach focus on SDG 13 – Climate action, we integrate with low/no overshoot by year-end 2024. in place since 2005. The current strategy was risk including dedicated training and advice. 01.4 Our social approach climate considerations in our organization and our • To define science-based climate targets in our approved by the Group Sustainability Board Also, we use climate risk-differentiated premium 01.5 Our climate approach business areas. We further strengthen our climate insurance portfolio, we – as a member of the in 2019. With the rapid development of the structures in our insurance. 01.6 Our sustainability action by collaborating with private and public Net-Zero Insurance Alliance – are currently state of knowledge on climate-related matters, Many people still do not have insurance at all. integration approach partners, in line with SDG 17 – Partnerships for the we continually review our Climate Change 01.7 2021 Reporting highlights goals. Examples for such partnerships include the working on the targets and methodologies. strategy, to secure that our action continues to To close this the protection gap in the most U.N.-Convened Net-Zero alliances. These methodologies are expected to be be in line with science. The strategy is built around vulnerable parts of society, we collaborate 02 Measuring and We have the ambition to be a partner for our published in January 2023. Subsequently, the three pillars, through which we can have an with our peers, governments, and civil society. managing sustainability Allianz and other members will be able to We support scientific research and innovation clients and investees, and for the different sectors, set their first near term net-zero insurance impact: Anticipate. Care. Enable. that improves society’s understanding of climate- 03 Strengthening in their transition towards net-zero. targets. All members have committed to report We anticipate the risks of a related risks. our foundation annually on their progress. 01.5.2 Our commitments • We will continue to gradually implement our changing climate We enable the low-carbon transition 04 Climate-related and contributions phaseout of coal-based business models across Our climate strategy aims to anticipate the risks of We aim to enable the journey to net-zero for our financial disclosure a changing climate. Therefore, we systematically own operations, for our investees and for our Our climate approach is an integral part of our our proprietary investments and P&C portfolios consider climate and sustainability criteria in insurance customers. Our ambition is to be an 05 Our universal principles core business. By committing to net-zero GHG by 2040 in line with 1.5°C pathways with low/no our insurance and investment business. In 2021, insurance and investment partner for the net- emissions by 2050, we are working on setting overshoot. This includes a stricter threshold for we reviewed our approach to identifying and zero transformation the different industries and long-term climate targets across our operations coal-based business models for P&C insurance managing climate change risks and opportunities customers need to make. 1 (25 percent as of 31 December 2022); for our and business lines in line with the 1.5°C ambition investment portfolios from current 30 percent to develop it further. of the Paris Climate Agreement. The Allianz SE Our business strategy aims to systematically Board of Management’s remuneration is tied in to 25 percent, as of 31 December 2022. We also systematically engage with investee enable a low-carbon and climate-resilient future. part to the attainment of these targets. • We also announced that we will no longer companies, which are exposed to high climate We strategically invest in low-carbon assets • On our overall goal to create positive change provide insurance for dedicated oil sands and sustainability risks. We offer advice and and are insuring low-carbon technologies. for societies and economies, we will continue projects and new oil sands pipelines, or to encourage them to define and pursue their Grounded in our belief in science-based decision to integrate climate action across all business companies deriving more than 20 percent of own climate strategies in line with the latest making, we intend to support our partners, areas and markets and deliver on our net- their revenue from oil sands. scientific findings. investees, and clients along the path to net-zero. zero targets. • We will publish an update of our Oil & Gas As part of our decarbonization strategy, we commit We also commit to pursing net-zero within our policy and a new target for our GHG emissions to fully withdrawing from coal-based business own operations. • For our proprietary investment portfolio, from own operations on 29 April 2022. models across our proprietary investment and Find out more about climate in our business we are on track to systematically reduce Find out more on our website. property-casualty portfolios by 2040 at the latest. activities in sections 02.1, 02.2, and 02.3 and GHG emissions to net-zero in line with the in our own operation in section 02.6 2050 pathway. Our intermediate target is to • In our operations, we will increase the use of We care for the climate vulnerable reduce our emissions from listed equities and renewable electricity to run our data centers We support our insurance customers so that they can Find our climate-related financial disclosure corporate bonds by 25 percent by year-end and offices to 100 percent by end of 2023 reduce climate-related risks. The target is to minimize in section 04. 2024 (vs. 2019). Our work is aligned with the and reduce GHG emission per employee by damage, and insure low-carbon developments. 30 percent in 2025 (vs 2019). 1 We are managing towards 1.5°C with low/no overshoot pathways. 2 U.N.-convened Net Zero Asset Owner Alliance. 10