01 Introduction and strategy 02 Measuring and managing sustainability 03 Climate change related disclosure 04 Strengthening our foundation 05 Our universal principles 05.4 Our expanded sustainability governance With the importance of climate and SDG 13 we have established a dedicated governance around our climate activities. 05.4.2 Climate governance In 2021, we thoroughly reviewed our approach to identify and manage climate change risks and opportunities. This review concluded that a program to develop and implement continuously improved tools, processes and disclosures – including appropriate governance structures – should be implemented from 2022 onwards. The process is steered by a cross-functional group of senior executives at Group and OE levels. They include the Global Chief Risk Officer, Chief Sustainability Officer, Heads of Group Accounting and Reporting, Global Property-Casualty (P&C), Global Commercial, Center of Competence Life and Health and one of the Managing Directors of Allianz Investment Management. Progress is reported to the Group Sustainability Board. The governance described refers to the status in the reporting year 2022. Group functions Addressing sustainability matters requires cross-functional collaboration and support across our global operations. The Global Sustainability function includes a team dedicated to Climate Integration and is responsible for coordinating integration of sustainability and climate aspects into core investment, insurance and business operation activities. It also acts as the secretariat of the Sustainability Board and meets regularly with its Chair. Further functions such as Group Risk, Global P&C, Global Commercial, Allianz Investment Management and Group Accounting and Reporting report on climate-related matters and support operating entities in integrating the Group’s strategic approach and objectives. Additional bodies and functions, such as Allianz Research, monitor and analyze market, technological and regulatory trends and developments and share insights. Investment and insurance functions Our key insurance operating entities, two major investment businesses (Allianz Global Investors and PIMCO) and investment management function (Allianz Investment Management) have well-established climate and sustainability teams. At Allianz Investment Management (AIM), the Investment Management Board (IMB) oversees implementation of climate and sustainability strategy for our proprietary investment portfolio of € 701.1 billion. This includes regular updates, discussions and decisions on implementation, target-setting and compliance related to portfolio decarbonization targets and measures. Analyses of potential growth opportunities as well as asset stranding in climate scenarios and engagement on climate aspects are also regularly addressed. Within AIM, climate and sustainability are steered at the IMB level with a Managing Director in charge of the implementation. For our P&C insurance business, the ESG Business Services team located at Allianz Global Commercial & Specialty (AGCS) is responsible for developing, coordinating and supervising sustainability and climate-related governance. For more details, see section 02.2. For more details, see Allianz ESG Integration Framework. Climate competence In addition to the governance mechanisms described above, we apply a variety of instruments to foster sustainability and climate competency at Board, senior executive and employee levels. These include: • Extensive reports and briefings for top management, translating climate science into business implications. • Sustainability roundtables of investment functions. • Trainings for employees, investment- related functions, underwriters and sales agents. • Knowledge sharing with and upskilling of local sustainability colleagues. • Conferences on sustainability topics which include Board member presentations; in 2022 we held two internal Sustainability Forums open to all employees. Allianz Group Sustainability Report 2022 149