2. Tax Risk Management and Tax Governance At Allianz processes are in place to identify, assess, monitor, manage and report tax risks. Tax Risk Management # The Allianz approach to tax risk management is consistent with and embedded in Allianz’s general approach to risk management 8 : We actively and continuously identify, assess, monitor and manage tax risks to ensure that they remain in line with our business and strategic objective, taking into account Allianz‘s appetite towards tax risks. Effective tax risk management is ensured via the following means: • All tax-related topics are handled by tax experts that are highly qualified, with an in- depth tax and business expertise. • Allianz implemented a governance framework that ensures appropriate processes and organizational structures to identify, assess, monitor and manage tax risks at different levels of the Allianz Group. • Group uniform and well-established reporting processes ensure Group internal communication of any tax risks within different risk categories (strategic, financial, operational or reputational risk). • The efficiency of the tax risk management process is continuously monitored by the Group tax function via institutionalized oversight processes. Allianz’s appetite for tax risks is low and we therefore seek to minimize tax risks, especially through efficient control-based and IT-supported processes. If necessary, we seek external advice. Tax Governance # Corporate Management Under German corporate law, Allianz SE is subject to the two-tier system consisting of a Board of Management and a Supervisory Board. The Board of Management is responsible for the management of the company, in particular for setting business objectives and the strategic direction, for coordinating and supervising the operating entities, and for implementing and overseeing an efficient risk management system. The Supervisory Board oversees and advises the Board of Management on managing the business. It is also responsible for appointing the members of the Board of Management, determining their overall remuneration, succession planning for the Board of Management, and reviewing Allianz SE’s and the Allianz Group’s annual financial statements. With respect to sustainability-related matters, including Allianz as a responsible taxpayer, the ultimate responsibility resides with the Board of Management of Allianz SE as the Group’s parent company. To support the Board of Management in its respective decision making process, Allianz SE has established a dedicated Group Sustainability Board (known until January 2022 as the Group ESG Board) as an advisor on all matters around sustainability. The core responsibilities of the Group Sustainability Board are: Preparing the overall framework for sustainability for the Allianz Group, aligning sustainability (ESG) integration into Allianz Group’s business processes with Allianz 8 As published in our Group Annual Report 2021 (p. 59). as organization (operations and organization) and Allianz as financial institution (investment, insurance, asset management) as well as related internal and external communication. Besides, it takes over responsibility for the oversight and steering of overarching sustainability matters, such as climate-related topics, social-related topics, and governance-related topics. As a further measure to strengthen sustainability matters within the Allianz Group, the Supervisory Board of Allianz SE, in 2021, established an own Sustainability Committee to oversee ESG issues, to advise the Board of Management on ethical standards concerning the usage of data (Data Ethics) and to monitor the Board of Management’s sustainability strategy. As regards the Allianz Group’s tax strategy, the strategy has been approved by the Board of Management of Allianz SE as the ultimate decision taking body. The Tax Transparency Report 2021, including the Group’s current applicable tax strategy, was reviewed by members of the Group Sustainability Board and submitted to the Board of Management of Allianz SE. Subsequently, the Tax Transparency Report 2021 was presented to and discussed with the Supervisory Board’s Sustainability Committee. The Group tax function is embedded in the finance division and is therefore within the responsibility of the Chief Financial Officer of Allianz Group. The Chief Financial Officer regularly informs the Board of Management of Allianz SE on the Group’s tax situation, the tax risk assessment as well as key strategic tax topics, including updates on tax developments. Regular updates on all material tax topics and their current and future impact on Allianz Group’s financials are provided by the Group tax function to the Chief Financial Officer of Allianz Group via institutionalized tax committee meetings. Tax functions The local day-to-day responsibility for tax is upheld by our local tax functions that are hosted at the local finance functions. In key markets with business engagement of more than one Allianz entity, we install centralized local tax functions. Our Group tax function oversees compliance with the Group’s tax strategy, ensures coherence in the approach to tax matters across the Group, coordinates the local tax functions within the Group and focuses on tax matters that directly concern the Group as a whole. Interaction and coordination Regular country-specific and international tax-expert meetings facilitate the continuous interaction and coordination between the Group and our local tax functions. Together with standardized tax risk reporting procedures, this also ensures that local tax risks are assessed from a Group perspective and are appropriately reported to and overseen by the Group tax function. GRI 207–1, 207–2 Allianz Group Tax Transparency Report 2021 3