01 Introduction and strategy 02 Measuring and managing sustainability 03 Climate change related disclosure 04 Strengthening our foundation 05 Our universal principles 02.1 Sustainability in insurance The U.N.-convened Net-Zero Insurance Alliance In 2021, Allianz joined forces with seven other leading insurers to form the U.N.-convened Net-Zero Insurance Alliance (NZIA). Members will set measurable and science-based decarbonization targets for themselves. The first targets are expected to b e released by July 2023 at the latest for the target year 2030. After 2030, they will be updated every five years up to 2050. Once the first targets are set, members are required to report annually on progress. Work started in 2021 and continued in 2022 to develop methodologies and define the first intermediate targets, with the goal of launching the inaugural NZIA target-setting protocol in Januar y 2023. NZIA members have collaborated with the Partnership for Carbon Accounting Financials (PCAF) on the development of the Global GHG Accounting and R eporting Standard for Insurance-Associated Emissions. This Standard was launched in November 2022 at the COP 27 in Egypt. It will help re-/insurers create transparency for stakeholders on the climate impact of their underwriting activities, manage climate-related transition risks, and ensure decarbonization strategies for underwriting portfolios are c ompatible with the Paris Agreement. This will support Allianz and other NZIA members to develop the NZIA target setting protocol and their own targets by mid-2023. See the full details of the PCAF standard here and the full details of the NZIA partnership here. See the full details of the collaboration here. Closing the climate insurance gap We continue to actively support the InsuResilience Global Partnership (IGP)’s goal to provide climate risk insurance for up to 500 million people in the most vulnerable developing countries by 2025. In the context of a Tripartite Agreement between BMZ, the U.N. Development Program (UNDP) and the Insuranc e Development Forum (IDF), Allianz and Swiss Re are co-leading a project to develop a flood risk insurance solution for Ghana with support by the local UNDP office and other public sector stakeholders such as the Ministry of Finance of Ghana. The project objective is to develop a parametric flood cover to provide financing for government’ s emer gency response and reconstruction efforts in severe flood cases to re-establish economic activity of low-income communities in the Greater Accra Region. Parametric approaches are novel to P&C insurance and require careful calibration, while having the focal benefit of allowing quick pay- outs based on an externally observable trigger without requiring a lengthy damage assessment procedure. The project, supported by a grant from the ISF, entered the product development phase in July 2022 and work is on-going into 2023 between the private and public sector par tners to build this insur ance solution concept. Decarbonizing insurance claims The Allianz sustainable claims initiative aims to decarbonize claims processes, including third parties’ activities, and find ways to make claims processes more sustainable. The first phase is focused on motor retail claims and includes engaging third parties involved in the claims process, such as repair shops. Pilot initiatives hav e been launched in different countries covering the key levers in motor retail claims such as repair vs replace, sustainable roadside assistance, green mobility replacement, repair shop scoring and remote assessment. A first CO 2 e baselining process for motor claims has also been started. And a sustainable approach for home retail claims has been kicked off. A llianz Gr oup Sustainability R ep or t 2022 33