01 Introduction and strategy 02 Measuring and managing sustainability 03 Climate change related disclosure 04 Strengthening our foundation 05 Our universal principles 02.6 Own operations 02.6.3 Sustainable procurement The Procurement function sources services and products for Allianz Group, delivering best value for money and embedding the Operations sustainability strategy across procurement activities. Allianz partners with thousands of vendors all around the world for activities such as IT, professional services and marketing. Our goal is to minimize the environmental impacts of our procurement and ensure all vendors uphold the highest standards of human rights and health and safety in line with SDG 8, Decent work and economic growth. Our procurement policy and processes are reviewed regularly. In 2022, they were updated to align with the Allianz Group sustainability strategy. Our target is to ensure that 100 percent of global framework vendors (vendors providing products and services for Allianz globally) will hold a public commitment to net-zero GHG emissions in line with a 1.5°C path by 2025. Our initial assessment indicates that around 65 percent of global framework vendors have an existing net-zero commitment 1 and we have started engaging with vendors that currently do not hold a commitment. To support the Operations and Group strategy, the Procurement function has made fundamental changes and enhanced its approach to sustainability. Sustainability training has been offered to all Procurement employees and procurement policies and processes have been updated and now ensure sustainability is considered throughout each aspect of the Procurement lifecycle. The Allianz Standard for Global Pr ocurement has been updated and all operating entities with a centralized Procurement function are required to embed sustainability in their own sourcing and vendor processes. We presented the updated Vendor Code of Conduct to Allianz vendors. It has been updated in line with Allianz’s sustainability strategy, ensuring vendors meet environmental, human rights, health and safety standards as well as applicable legislations such as Lieferkettensorgfaltspflichtengesetz/ Supply Chain Act in Germany and the Modern Slavery Act in the UK. In 2022 100 % of our global suppliers, representing a total spend of € 1.5 billion, have committed to the Allianz Vendor Code of Conduct, the same level as previous year. Our contractual terms have been updated to reflect the standards outlined in our procurement policies and we have created a Sustainability Charter to help our vendors understand our supply chain sustainability strategy. For details see Allianz Sustainable Procurement Charter. We are collaborating with industry leaders on IT infrastructure, products and services – such as Microsoft Azure and Amazon Web Services – encouraging them to switch our purchased services to low carbon energy sources and to establish circularity approaches. As well as the focus on environmental aspects, A llianz’s operating entities in the US and the UK have built Vendor Diversity programs providing access to diverse vendors that could be traditionally underrepresented or underserved. A diverse supplier is a business that is at least 51 per cent owned and operated by an individual or group providing access to vendors that could be traditionally underrepresented or underserved. 02.6.4 Embedding sustainability in our buildings Embedding sustainability in our buildings encompasses renewable energy, energy efficiency, waste and water management together with additional actions on areas such as food and infrastructure for green commuting and ensuring that the environmental management processes are in place. We have set up a Minimum Standards Catalo gue to harmonize Allianz’s approach to sustainability in buildings and to be able to collect internal and external data and best-practices on sustainable buildings. Our aim is to establish a state-of-the-art compr ehensive catalogue of minimum standards for our buildings including elements of governance/certifications, furnishings, construction/renovations, renewable energy, energy efficiency, water, waste, food and commuting. The catalogue also includes guidance on green lease selection criteria. A ll Allianz entities are currently creating their plans based on this harmonized list. 1 Data valid until 12.09.2022. Allianz Group Sustainability Report 2022 82