01 Introduction and strategy 02 Measuring and managing sustainability 03 Climate change related disclosure 04 Strengthening our foundation 05 Our universal principles 01.7 Our sustainability integration approach Our commitment to tackling ESG topics – here referred to as sustainability – applies to our own operations and our insurance, investment and asset management activities. As a global insurer, investor and asset manager, understanding and managing sustainability issues allows us to reduce risks and capture opportunities in all areas of our business. As well as managing risks, sustainability integration directs us to create products and services that add value to society, collaborate with clients and investee companies to deliver real-world benefits, and direct capital flows towards sustainable outcomes for all stakeholders. 01.7.1 Sustainability opportunities and risks Holistic assessment of risk is important to Allianz as an insurance company that manages and carries risks ranging from single events to decades. In the Allianz Group Risk Policy, we define sustainability risks as events or conditions which, if they occur, could have significant negative impacts on the assets, profitability or reputation of Allianz Group or one of its companies. Examples include environmental and climate change risks, human rights violations, risks to local communities and workforce risks. If they are not identified and managed effectively, sustainability risks can have significant repercussions for Allianz and its customers, suppliers and investee companies. These span legal and reputational risks, supply chain and business disruption risks, quality and operational risks and financial risks. By scrutinizing insurance, investment and asset management projects from a sustainability perspective, Allianz extends its understanding of risks and seizes potential business opportunities to benefit shareholders, customers and other stakeholders. 01.7.2 Our group-wide rules and processes Our group-wide corporate rules and sustainability processes apply to all relevant underwriting, proprietary investment and operations activities. They require strong collaboration between relevant functions and business areas. Key processes include the internal Allianz Standard for Reputational Risk Management and other corporate rules such as the Allianz Standards for P&C Underwriting and Allianz ESG Functional Rule for Investments. The publicly available Allianz ESG Integration Framework provides transparency around our sustainability- related processes and guidelines. We published the fourth version of the Framework in 2021, available here. For more details, please see the Allianz ESG Integration Framework, version 4.0. Our asset management units have set up their own set of pr ocesses, rules and governance on sustainability integration in their investment activities. 18 Allianz Group Sustainability Report 2022 ~ I.... 0 s: OJ @ E I N 0 i:: .!!! I.... ~ LL [f)