03.2 Strategies 2. Development of sector policies to promote a swift and just transition including the development of more granular short-, medium- and long-term zero carbon infrastructure plans. 3. Stringent carbon pricing to internalize the external costs of pollution, including a phase-out of direct and indirect fossil fuel subsidies. 4. Protection of nature and support for regenerative forestry and agriculture. Support for and redirecting of fossil- fuel related subsidies to scale up new technologies that will provide solutions in hard to abate sectors, e.g. carbon capture and storage and green hydrogen. 5. Promotion of mandatory assured climate disclosure, including transition plans, GHG emissions, associated reduction targets and alignment with 1.5°C trajectories, ideally internationally aligned. 6. Sustainable finance regulation that provides a defined, science- based and reliable framework via a common taxonomy of sustainability, clarification of asset managers’ and investors’ duties, inclusion of sustainability in prudential regulation, and enhanced transparency of corporate reporting. 01 Introduction and strategy 02 Measuring and managing sustainability 03 Climate change related disclosure 04 Strengthening our foundation 05 Our universal principles Towards open source climate data, models and analytics More and more financial institutions are committing to align their portfolios with the Paris Agreement. One of the main barriers they face is accessing trusted data and transparent analytical tools to quantify and act decisively on climate-related risk and opportunities. Current regulation and methodologies are not standardized enough and the market for data and tools is highly fragmented. To improve this, Allianz is supporting and contributing to advancing climate disclosures in a number of ways: 1. We are a member of Open Source Climate (OS-C), an initiative hosted under the Linux Foundation to enable like-minded companies to build a ‘pre-competitive layer’ of modeling and data that is globally shared and accessible. OS-C links company data, climate analytics (scenarios and stress tests) and scientific climate models in one platform, allowing for global collaboration on this exceptional data challenge which will accelerate innovation. 2. Allianz led the development of the prototype of a Portfolio Alignment Implied Temperature Rating tool in line with the TCFD’s work on Portfolio Alignment, along with other large corporations like Amazon, Microsoft and Goldman Sachs. It will start with four sectors (Automotive, Oil and Gas, Steel and Utilities). Allianz Group Sustainability Report 2022 99