01 Introduction and strategy 02 Measuring and managing sustainability 03 Climate change related disclosure 04 Strengthening our foundation 05 Our universal principles Our climate commitments and contributions Our climate approach is an integral part of our core business. By committing to net- zero greenhouse gas (GHG) emissions by 2050, we are working to set long-term and intermediate targets across our operations and business lines in line with the 1.5°C ambition 1 of the Paris Climate Agreement. In view of our overall goal to create positive change for societies and economies, we will continue to integrate climate action across all business areas and markets to deliver on our net- zero commitments. • For our proprietary investment portfolio, we have committed to reduce GHG emissions to net-zero by 2050. Our intermediate 2025 targets initially covered listed equities, corporate bonds and real estate. We are constantly expanding the scope of targets in line with the Target Setting Protocol of the Net-Zero Asset Owner Alliance (NZAOA), of which Allianz was one of the founding organizations and holds the Chair. The initiative is led by the U.N. For full list of targets, please see section 02.2.2. 01.5 Our climate approach • For our insurance portfolio, we were one of the founding members of the Net-Zero Insurance Alliance (NZIA). We are working on the targets and methodologies within the NZIA. These methodologies were published in January 2023 and Allianz and other members will now set their first near- term targets. The initiative is led by the U.N. • In 2022, we published our new approach for the oil and gas sector, including targeted restrictions for oil and gas projects and unconventional practices, as well as expectations for companies in this sector. Find out more in section 03.2. Allianz statement on oil and gas business models. • We continue to gradually phase out coal-based business models across our proprietary investments and P&C portfolios, with a 2040 deadline at the latest. The milestones for this phase-out have been derived from leading climate scenarios which keep global warming by the end of this century to 1.5°C with limited temperature overshoot. The next step is the tightening of the exclusion threshold for coal-based business mo dels to 25 percent by December 31, 2022. For details see section 03.2. • For our own operations, we announced the acceleration of climate targets with reduction of GHG emissions by 50 % by 2025, versus 2019, and net-zero by 2030. We plan to achieve these targets by strengthening our environmental management and sourcing 100 % renewable electricity by 2023, shifting to electric corporate car fleet by 2030, and reducing GHG emissions from travel activities by 40 % by 2025. For details see section 02.6. • In addition, we advocate for strong climate policy. A supportive policy environment is crucial to ensure the viability of a socially-just transition to climate resilience and net-zero emissions. Without decisive action by governments, there will be insufficient frameworks and market incentives to bring down demand for emission- intensive products and to allocate capital in line with a 1.5°C trajectory. For details see section 03.2. • As part of our commitment to transparency, we apply the recommendations of the G20 Financial Stability Board’s Task Force on Climate- related Financial Disclosures (TCFD). We strive to continuously enhance our climate change-related reporting and business practices to drive best practice and we collaborate with and support others to do the same. For more information, see chapter 03. • In the fight against global warming, any additional unit of renewable energy is needed. Therefore, we are revising our thermal coal guideline to allow ring- fenced insurance of renewable energy projects not looking at legacy business of the utility. Find out more in our Energy guidelines. 1 We are managing towards 1.5°C in line with pathways which do not overshoot 1.5°C or only to a limited extent (so called low/no overshoot pathways). 13 Allianz Group Sustainability Report 2022 > > > > >