01 Introduction and strategy 02 Measuring and managing sustainability 03 Climate change related disclosure 04 Strengthening our foundation 05 Our universal principles 02.2 Sustainability in proprietary investments Target layer Measure Base year Current year (2022) Target year Driver for change Sector utilities • Coal phase out in line with 1.5 degree pathway • Increase direct and indirect exposure to renewable energy by 5.85% per year (IRENA 1 global pathway) Indirect: 2019: N/A N/A 2024: +5.85% p.a. N/A Direct-debt: 2019: € 2.9bn € 2.7bn 2024: € 3.9bn Driven by increase of interest rates in 2022 and selective investment approach Direct-equity: 2019: € 4.3bn € 4.2bn 2024: € 5.7bn Selective investment approach during uncertain market developments Sector oil & gas • Scope 1&2 20 kgCO 2 e/boe 2 in line with OGCI 3 • 50% of AuM to set net-zero 2050 targets for Scope 1+2 emissions 2019: N/A N/A 2024: 20 kgCO 2 e/boe N/A 2019: ~40% 43% 2024: 50% Engagements Engagement • Engagement coverage of at least Top 30 (non-aligned) emitters in portfolio • Full participation in all available AOA organized sector and asset manager engagements • Increase overall engagement activities by at least 100% Financing transition • Blended finance 4–5 new vehicles • Climate-positive solutions: Start investing into e.g., Forestry, Hydrogen and other In 2022 we committed additional EUR 3.2 bn in climate transition finance including: • Forestry: US commercial brownfield timberland assets • Dedicated Transition Finance Funds • Blended Finance: Co-investment alongside IFC in emerging market Paris-aligned infrastructure projects • Dedicated Clean Hydrogen Fund 1 IRENA: The International Renewables Energy Agency is an intergovernmental organization supporting countries in their transition to a sustainable energy future. 2 BOE: Barrel of oil equivalent. 3 OGCI: Oil and Gas Climate Initiative; a CEO-led consortium of industry leading oil and gas companies. Allianz Group Sustainability Report 2022 49