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                      THE FUTURE
                                           ENCOURAGING SOLUTIONS FOR
                                           TOMORROW’S CLIMATE AND
                                           A MORE INCLUSIVE SOCIETY

Allianz Sustainability Report 2016                            Overview       Allianz in the world       Managing sustainability   Allianz's roles            About the report

Allianz is one of the strongest
financial communities in the world.
More than 86 million customers in
more than 70 markets rely on our
comprehensive range of insurance
products and funds. Allianz stands
for trust, based on the integrity,
resilience and dedication of our over
140,000 employees. Our customers
are at the heart of our business. We
strive for profitable and sustainable
growth and support our customers
to address tomorrow's challenges.

                                        We hope you enjoy reading our    IN THIS REPORT                                           The 'In focus' section takes an in-depth look at our
                                                                                                                                  key priorities of Climate Change and Social Inclusion
                                        Sustainability Report 2016.      This year, having completed a new Stakeholder
                                                                                                                                  – including the latest global trends, developments
                                                                         Expectation Survey, we have taken another step
                                                                                                                                  and our response.
                                                                         forward in evolving our sustainability strategy and
                                                                         our reporting approach.                                  'Managing Sustainability' provides further detail on
                                                                                                                                  our strategy and governance, and we outline the
                                                                         We begin by providing a high-level snapshot of our
                                                                                                                                  progress we have made over our five roles in 2016 in
                                                                         corporate strategy and our stakeholder engagement
                                                                                                                                  'Allianz's roles'.
                                                                         approach, before discussing the outcomes of our
                                                                         latest materiality assessment. We then go on to          You can find detailed data and further information
                                                                         look at what the results mean for our Corporate          on data assurance and GRI in 'About the report' at the
                                                                         Responsibility Strategy, priorities and roles.           end of the report.

Allianz Sustainability Report 2016                                                              Overview      Allianz in the world    Managing sustainability   Allianz's roles            About the report

CONTENTS                                                                                          ALLIANZ GROUP
                                                                                                  AT A GLANCE
                                     1 OVERVIEW                                           1
                                        – Allianz Group at a glance                        2
                                        – Sustainability Performance Highlights            3
                                        – Introduction from the CEO                        4
                                        – The Renewal Agenda                               5
                                        – Stakeholder Engagement                           6                                           Total revenues approx.

                                        –	Stakeholder survey and materiality
                                           assessment 2016                                 8
                                        – Our Corporate Responsibility Strategy           10
                                        – The Sustainable Development Goals               11
                                     2 ALLIANZ IN THE WORLD                               12
                                       –	In focus: A call to action on climate change    13
                                       – In focus: Breaking down barriers to                               Third-party assets of                                                         Over

                                                                                                           1,361bn                                                                140,000
                                     		 social inclusion                                  17

                                     3 MANAGING SUSTAINABILITY                            22
                                                                                                                     Euro                                                         employees worldwide
                                        – Our Corporate Responsibility Strategy           23
                                        –	Our Corporate Responsibility Governance        24
                                        – Sustainability in insurance and investment      26

                                     4 ALLIANZ’S ROLES                                    28
                                            Sustainable Insurer                           29                           Allianz Group serves                           in more than
                                            Responsible Investor                          34
                                            Trusted Company
                                            Attractive Employer
                                            Committed Corporate Citizen
                                                                                                                       86.3mn                                                70
                                                                                                                                customers                                 countries
                                     5 ABOUT THE REPORT                                   67
                                        –   Overview of Targets and Achievements          68
                                        –   Ratings, Recognition and Memberships          71
                                        –   Reporting Parameters, Scope and Materiality   72
                                        –   Key Sustainability Data                       73

Allianz Sustainability Report 2016                                             Overview                   Allianz in the world   Managing sustainability     Allianz's roles       About the report

SUSTAINABILITY                                                                                                       KPI                                   KPI                           KPI

PERFORMANCE                                                                                            1.9 billion                                   156                            100%
HIGHLIGHTS                                                                                              Euro new debt and equity
                                                                                                    investments in renewable energy
                                                                                                                                              Sustainable Solutions            score for ESG in insurance
                                                                                                                                                                                  integration by DJSI

                                                                                                     Revenues increased to 302.5 million
                                        SUSTAINABLE                                                  Euro in the emerging consumers market
                                                                                                                                                                                    See more on page
                                        INSURER                                                      1.1 billion Euro revenue generated                                                     29
                                                                                                     through Sustainable Solutions

                                                                                                     225 million Euro in equity divested
                                        RESPONSIBLE                                                  from coal-based business models                                                See more on page
                                        INVESTOR                                                     Launched new ESG Scoring approach                                                      34

                                                                                                     –25.3% CO2 emission reduction per
                                        TRUSTED                                                      employee since 2010                                                            See more on page
                                        COMPANY                                                      +2,200 leaders trained in Integrity                                                    42

                                                                                                     37.2% of Allianz managers
                                        ATTRACTIVE                                                   were women                                                                     See more on page
                                        EMPLOYER                                                     64% score in Work Well index                                                           52

                                                                                                     Launched Encouraging Future Generations
                                        COMMITTED                                                    Program including a three-year partnership
                                        CORPORATE                                                    with SOS Children's Villages                                                   See more on page

                                        CITIZEN                                                      19.4 million Euro corporate giving

                                     See pages 68–70 for a full overview of our sustainability targets and achievements.
Allianz Sustainability Report 2016                                                        Overview                 Allianz in the world       Managing sustainability     Allianz's roles               About the report

                                           INTRODUCTION                                                                               70%                                                             55%
                                           FROM THE CEO
                                                                                                                               score in the Inclusive                       of the business segments measuring NPS*,
                                                                                                                                Meritocracy Index                       significantly performed above the market average

                                                                                                                              Employee Engagement
                                                                                                                                                                                        Gold Class
                                                                                                                                                                                             Sustainability Award by
                                                                                                                                   Index score                                                 RobecoSAM (DJSI)

WHY IS SUSTAINABILITY IMPORTANT                         And we integrate Environmental, Social, and            WHAT MADE 2016 SPECIAL FOR YOU?                           But we can still do better. We need to continually
FOR ALLIANZ?                                            Governance (ESG) principles throughout our
                                                                                                               Perhaps the greatest moment was launching
                                                                                                                                                                         improve our reporting and transparency practices.
                                                        investment and insurance business by holding                                                                     This is why we introduced external auditing for
Insurers are tied by the nature of their business to                                                           our new Social Inclusion program, Encouraging
                                                        business decisions up to the light and asking                                                                    our sustainability data and information in 2016 to
healthy and sustainable developments in society.                                                               Future Generations, and our partnership with SOS
                                                        ourselves, ‘Will this benefit society and our                                                                    underscore the accuracy of our Sustainability Report.
We can and must be a force for good. We help our                                                               Children’s Villages. I know we can support young
                                                        customers in the long term?’
customers to cope with challenges such as climate                                                              people worldwide and Allianz is deeply committed          Allianz is leading this global transformation from the
change and natural catastrophes, personal safety        HOW DO YOU APPLY SUSTAINABILITY                        to promoting equality and social inclusion. I want        front. That’s what our customers expect from us and
and data security risks and momentous changes           PRINCIPLES?                                            Allianz to lead a transition in culture worldwide         that’s what I expect from the people at Allianz who
sweeping society. As a global insurer and long-term                                                            where sustainable, responsible business becomes           serve them. Our own self interests are inseparable
investor, sustainability is part of our DNA. We think   We apply sustainability principles across our entire   the norm.                                                 from those of a healthy, sustainable society. We will
in long-term outcomes and how we can make the           business. We promote strong, sustainable portfolios                                                              use our position of strength to help make the
world a more resilient place.                           using ESG considerations and our customers’            WHAT KEEPS YOU UP AT NIGHT?                               idea of a better, healthier, and cleaner tomorrow
                                                        long-term interests. This benefits our business                                                                  become real.
                                                                                                               What I worry about is climate change, which poses
WHAT IS THE FOCUS OF YOUR CORPORATE                     for sure – like I said, we take the long-term view
                                                                                                               the biggest threat. This is one reason why we no
RESPONSIBILITY STRATEGY?                                – but it also has a huge positive impact on our
                                                                                                               longer finance coal-intense business models and will
                                                        employees, our stakeholders, and society at large.
The newly adapted Corporate Responsibility Strategy                                                            double our equity investments in renewable energy.
                                                        In 2016, for example, we introduced the Allianz ESG
is built on three pillars: Low-Carbon Economy,
                                                        Scoring approach for investments, which allows         Embedding sustainability in all parts of our
Social Inclusion, and Business Integration. And we’re
                                                        us to manage our portfolio taking sustainability       business doesn’t happen overnight. It is an ongoing
already putting this into practice. We strongly
                                                        into consideration.                                    process. We have already made great strides and
support the renewable energy transition and
                                                                                                               are recognized as best-in-class, as the Dow Jones         Chairman of the Board of Management, Allianz SE
decarbonization of the economy through sustainable
                                                                                                               Sustainability Index rating shows. We rose six
investments in things like wind parks. We have,
                                                                                                               percentage points on the scale and climbed to Gold
as a company, shrunk our own carbon footprint.
                                                                                                               from Bronze in the rating in 2016, making Allianz the
We support children and youth through our
                                                                                                               highest placed primary insurer.
Encouraging Future Generations Program, which
empowers young people to grow with confidence
and shape resilient, more inclusive societies.

                                                                                                                                                                         * Focus on retail business
Allianz Sustainability Report 2016                                                           Overview              Allianz in the world   Managing sustainability   Allianz's roles          About the report

AGENDA                                                                                                                                                        5
                                                                                                                                                                                         Digital by
                                                                                                                                                        Meritocracy                       Default

At Allianz, we aim to create sustainable economic         • Technical Excellence: our customers expect us                                                                True
value through a long-term approach to corporate             to understand the risks they face throughout their                                                         Customer
governance, social responsibility and environmental         lives. They also expect us to prevent and manage                                                           Centricity
stewardship. During our 126-year history, we have
developed the culture, systems and processes that
                                                            these risks for them. For this, we need excellent
                                                            data quality, superior underwriting systems and                                              4
enable us to do that. This is critical to our business
success as we commit to deliver on our promises
                                                            market-leading tools.
                                                          • Growth Engines: emerging markets and assistant
to customers, to investors, to communities and to                                                                                                                                      Technical
                                                            solutions for sharing economies, new technologies,                                                                        Excellence
society as a whole.
                                                            healthcare and leisure are becoming more
RENEWAL AGENDA                                              important. We want to embrace these growth
                                                            areas by sharing our ideas and collaborating with
The world and our industry are changing fast and            start-ups and other stakeholders.
fundamentally. This is spurring us on to renew
our way of doing business. If we are to deliver           • Inclusive Meritocracy: to achieve the above,
our ambition of being the most trusted financial            we need a workforce that is agile, innovative and                                   “The company’s Renewal Agenda
institution and a global sustainability leader, we must     daring. We want to encourage this by developing                                      sets ambitious targets and
continually adapt our business strategy in response         smarter ways of rewarding ideas and performance,
to the most pressing issues.                                and by continuing to ensure Allianz is a great place                                 puts customers at the core of
Our Renewal Agenda focuses on five goals:
                                                            to work, for everyone.                                                               actions. Our macro-economic
                                                          Our Renewal Agenda is fostered by a comprehensive                                      and technological environment
• True Customer Centricity: customers expect              cultural change process encompassing customer
  excellent quality and flexibility from our products     and market excellence, collaborative leadership,
                                                                                                                                                 is changing fundamentally.
  and services. We want to develop our processes          entrepreneurship and trust. The Renewal Agenda                                         We will adapt and in doing this,
  based on their needs, exceed their expectations         therefore addresses our stakeholder views (e.g.
  and build loyalty and trust in our brand.                                                                                                      we act from a position of strength.”
                                                          customers, employees and shareholders). We are
• Digital by Default: we need to deliver state-           also taking into account our stakeholders' feedback
  of-the-art insurance and service offerings for          in our Corporate Responsibility Strategy to be able to
  the connected age. Becoming a fully digitalized         respond to our most material issues.
  company means we can offer our customers
  exciting, smart and secure products and services
  through any device or channel.                                                                                                                 Oliver Bäte
                                                                                                                                                 Chairman of the Board of Management, Allianz SE

Allianz Sustainability Report 2016                                                         Overview                Allianz in the world              Managing sustainability         Allianz's roles                    About the report

STAKEHOLDER                                                                                                                                        STAKEHOLDER ENGAGEMENT FRAMEWORK

                                                                                                                                                    Investors                                            Customer surveys and dialogues
OVERVIEW                                                                                                                                                                                         Learning from and sharing customer insights
                                                          PARTNERSHIPS AND COLLABORATION                                                      Dialogues and roadshows                                   Review of financial services sector
As a multinational business, the challenges we                                                                                     Engagement across our investment portfolio                                    developments
                                                          Long-term partnerships are instrumental to
face are increasingly diverse and interconnected.                                                                                              Ratings and benchmarks                                  Research and development to support
                                                          delivering our sustainability agenda. Our strategic
We can only understand global trends and how                                                                                                    Rating results e.g. DJSI                                       product innovations
                                                          partners include:
they affect our products, services and strategy by                                                                                                                                                      Using the Net Promoter Score (NPS)
working closely with a broad range of individuals                    SOS Children’s Villages: supporting                                                                                                  Allianz Risk Barometer Survey
and organizations. Besides our many commitments                      young people from challenged
to international and national sustainability bodies                  backgrounds to develop the skills and
and initiatives (see page 25), our engagement                        experience they need to succeed through
activities focus on the four stakeholder groups who                  education and participation (see page 63);
are most impacted by our business.

LISTENING TO AND ENGAGING                                            Deutsche Gesellschaft für
WITH OUR STAKEHOLDERS                                                Internationale                                                                  Society
                                                                     Zusammenarbeit (GIZ): German
Customers                                                                                                                                 Partnerships for civic engagement
                                                                     Society for International Cooperation –                                   e.g. the Vision Summit
Feedback from our customers helps us to improve
                                                                     the first public-private partnership for                                                                                                   Employees
our products, services and processes, and to offer                                                                                        Thought leadership on global issues
easy and adaptable solutions.                                        microinsurance activities (2011–2017);                                   e.g. Allianz Future Forum                                  Allianz Engagement Survey (AES)
                                                                                                                                          Panel discussions and roundtables                             Employee dialogues and networks
Employees                                                                                                                            Foundations, donations and volunteering                            Corporate volunteering programs
Because we believe employees who are engaged                         International Paralympic Committee
                                                                                                                                  Press events, journalist surveys and roundtables
with and committed to their jobs generate long-term                  (IPC): partner since 2006 and the first IPC
                                                                                                                                             Formal dialogues with NGOs
value for our business, we continuously seek their                   ‘International Partner’ – since 2011.                                      and ESG professionals
views and respond to their ideas and concerns.
Society                                                  As part of our engagement process we ask
Given the pace and scale of global change, it is vital   specific questions to our stakeholders which
we work with other partners, governments and             helps us determine what matters most to them.
institutions to identify sustainable solutions and       This information is helpful to us when defining
maximize our positive impact.                            our strategy.
We engage with our investors to communicate our
sustainability strategy and performance, enabling
them to make informed decisions about their own
investments and us to understand their expectations.
Allianz Sustainability Report 2016                           Overview               Allianz in the world       Managing sustainability        Allianz's roles            About the report

STAKEHOLDER                                                                                         ALLIANZ MATERIALITY PROCESS

                                                                                          Reporting and
                                                                                         communication                                   Monitoring trends
                                                                                          Communicating                                  and analyzing risks
OUR MATERIALITY PROCESS                                    Benchmarking                  our progress and                                  Reviewing what
                                                            and external               gathering stakeholder                             affects our business
Our most material issues are those that are perceived                                                                                                                                 what
                                                             feedback                        feedback
as vital for business success and sustainability by                                                                                                                                matters most
our stakeholders and by Allianz. We engage with
key stakeholder groups to identify what they see as
materially important for sustainable development at
Allianz. The insight they provide enables us to focus
our sustainability strategy, activities and reporting on
the right areas.                                                     Ongoing auditing
                                                                    and benchmarking                                                                             Engagement with
We base our materiality approach on a number of                                                              Ensuring strong
                                                                                                                                                                  our stakeholders
voluntary international standards and guidelines,                   Benchmarking with                          governance
including the Global Reporting Initiative (GRI) G4                   other sustainability                                                                       Understanding what
                                                                                                           Regular engagement
guidelines, a range of sustainability indices, and                  strategies, reporting                                                                          is most material
                                                                                                            with the Group ESG
engagement with expert working groups, such as                         approaches and                                                                            to our internal and
the United Nations Environment Programme Finance                     rating assessments                                                                         external stakeholders
Initiative. We use a wide variety of engagement
methods, such as conferences, workshops, road
shows, surveys, face-to-face interviews and peer
reviews to understand our material issues and
shape our sustainability approach.

                                                                                                                                      Internal validation
                                                                                                                                       Exploring how we
                                                                                          Integrating the
                                                                                                                                      can address trends
                                                                                        material issues into
                                                                                                                                       and risks with our
                                                                                         our sustainability
                                                                                                                                     products and services

                                                                                                                  our response
Allianz Sustainability Report 2016                                                                                                 Overview                    Allianz in the world          Managing sustainability    Allianz's roles             About the report



                                       70%                                                                                                                              Size of bubbles =                     STAKEHOLDER SURVEY
                                                                                                                                                                        Allianz ability to
                                                                                                                                                                        influence the effects                 During August and September 2016, GfK SE
                                                                                                                                                                        of these megatrends
                                                                                                                                                                                                              surveyed over 6,000 individual stakeholders about
                                                                                                        Climate Change                                                  from Corporate
                                                                                                                                                                        Responsibility                        what they see as the most important global issues
                                                                                                        and Environment                                                 perspective                           for Allianz and the potential solutions we provide.
                                                                                                                                                                                                              The results were validated via several internal
                                       60%                                                                                                                                                                    workshops involving experts from departments
                                                                                                       Personal                                  Digitalization                                               including: Group Strategy, Group Market
Perceived Importance to Stakeholders

                                                                                                       Customer Safety                                                                                        Management; Corporate Communications; Allianz
                                                                                                                                                                                                              Climate Solutions; Corporate Responsibility; and
                                                                                                                                                                                                              Human Resources.
                                                                                                                                        Fiscal Crisis                                                         All stakeholders viewing are weighted evenly so they
                                       50%                                                                                                                                                                    are not disproportionately affected by the number
                                                                                                                                                                                                              of responses.
                                                                                Politic Instability                    Societal Change

                                                                                                                                                                                                              Stakeholders surveyed
                                                                                                                                Chronic Diseases
                                       40%                                                                                                                                                                                                                        No.

                                                                                                                                                                                                                                             Allianz employees   5,632
                                                                                                                                                                                                                                             Allianz customers    501
                                                                                                                                                                                                                                             Societal stakeholders 113

                                       30%                                                                                                                                                                                                   Tied agents          158
                                             0%         10%        20%        30%          40%          50%         60%         70%        80%          90%
                                                                               Perceived Importance for Allianz as a Business

                                             The matrix shows the relative personal importance           the impact of these trends through the solutions
                                             of megatrends to stakeholders against the perceived         we provide and the contribution we make – which
                                             importance of the trend to Allianz. Additionally, we        provides a strategic focus for our overarching
                                             have evaluated our ability to influence (bubble size)       Corporate Responsibility Strategy.

Allianz Sustainability Report 2016                                                                                              Overview                   Allianz in the world            Managing sustainability             Allianz's roles                       About the report


                                                                                                      PERSONAL IMPORTANCE OF SOLUTIONS TO STAKEHOLDERS AGAINST PERCEIVED IMPORTANCE OF SOLUTION TO ALLIANZ

Based on the outcomes of our materiality assessment,
we also plotted the relative personal importance to
stakeholders of the solutions Allianz provides against                                          85%
their perceived importance for our business and                                                                                                                                                                                                                3
their relevance to corporate responsibility-related                                             80%                                                                                                                                                             2     1
departments. Furthermore we mapped the solutions
in the graphic to our strategic CR pillars to show to
which pillar each solution belongs.                      Perceived Importance to Stakeholders   75%                                                                                                                            6    5
                                                                                                                                                                                                                        8 7             4
The perceived most important megatrends                                                                                                                                                                             9
and risks for Allianz across all surveyed target                                                                                                                                               11
groups and countries which we are able to                                                       65%                                                                                   12
address with our solutions and our Corporate                                                                                                                                                  13
Responsibility Strategy are in particular: climate                                              60%                                                                                 15       14
change and environmental issues such as
natural catastrophes; personal customer safety,                                                                                                                                             16
including data security risks; and societal change.                                             55%
                                                                                                                                                    19                        18
We have used the outcomes of this assessment to
guide our reporting of issues and performance for                                               50%
2016 and we will continue to use the insights to
further develop our sustainability reporting, strategy
and roles in the coming years.
In order to be considered a Responsible Investor,
we will continue to integrate ESG criteria across                                               40%
our investment decisions. As a Sustainable                                                            40%               45%               50%       55%              60%           65%              70%                 75%                 80%               85%              90%
Insurer, we need to continue our focus on fair
                                                                                                                                                               Perceived Importance for Allianz as a Business
treatment of claims as well as on responsible sales
and marketing communication. Our role as an                                                           Key                                                                                                                                              Low-Carbon Economy
Attractive Employer is of very high relevance,                                                        1     Data Protection and Privacy         8    Human Capital Management                15 Operational Eco-Efficiency
                                                                                                      2                                         9                                            16 Transparency                                           Social Inclusion
as is being a Trusted Company. Compliance,                                                                  Financial Performance                    Sales and Marketing
data and privacy protection, improving customer                                                       3     Customer Relationship Management    10 ESG Business Integration                  17 Sustainable Products & Services                        Business Integration
satisfaction and financial performance all play a                                                     4     Corporate Risk Management           11 Stakeholder Engagement                    18 Advocacy Practices
                                                                                                                                                                                                                                                       Overarching Topics
major role. Supporting customers’ health and safety,                                                  5     Corporate Governance                12 Responsible Procurement                   19 Community Engagement/
                                                                                                                                                                                                Social Inclusion Initiatives
as well as local business are particularly important                                                  6     HR and Labor Practices              13 Sustainability Strategy
                                                                                                                                                                                                                                                  Size of bubbles =
if Allianz wants to be considered as a Committed                                                      7     Occupational Health and Safety      14 Responsible Investment                                                                         influence of core Corporate
Corporate Citizen.                                                                                                                                                                                                                                Responsibility related departments
Allianz Sustainability Report 2016                            Overview          Allianz in the world    Managing sustainability   Allianz's roles        About the report


 INFLUENCED BY THE OUTCOMES                                    WE HAVE ALIGNED OUR STRATEGY                                       AND TRANSLATE THOSE INTO FIVE
 OF THE MATERIALITY ANALYSIS                                   TO THREE PILLARS                                                   ROLES ALLIANZ PLAYS IN SOCIETY

                                                                                                                                                    Taking a long-term view
                                                                                                                                    SUSTAINABLE     of the world to help our
                                                                                    • Portfolio                                                     customers manage risk
                                                                                      decarbonization                                 INSURER
                                                                                                                                                           See more on page
                                                                                    • Reducing
                                                                   ECONOMY            impact                                                        Making investment
                                                                                                                                                    decisions that foster
                                                                                    • Sustainable                                   RESPONSIBLE     sustainable markets
                                                                                      Solutions…                                     INVESTOR       and societies
                                                                                                                                                           See more on page

                                     • Climate change and                           • Emerging
                 WHAT                  environmental issues                           markets                                                       Demonstrating integrity,

                MATTERS              • Personal customer             SOCIAL        • Diversity                                        TRUSTED
                                                                                                                                                    competence and reliance
                                                                                                                                                    in everything we do
                                        safety                      INCLUSION
                MOST...                                                             • Encouraging
                                                                                                                                                           See more on page
                                     • Societal change
                                                                                                                                                    Fostering a working
                                                                                                                                                    environment where
                                                                                                                                    ATTRACTIVE      both people and
                                                                                                                                     EMPLOYER       performance matter
                                                                                    • ESG integration                                                      See more on page
                                                                    BUSINESS        • Responsible

                                                                  INTEGRATION         sales
                                                                                                                                                    Acting as a committed
                                                                                    • Data privacy…
                                                                                                                                    COMMITTED       corporate citizen and
                                                                                                                                                    building stronger
                                                                                                                                    CORPORATE       communities
                                                                                                                                      CITIZEN              See more on page

Allianz Sustainability Report 2016                                                      Overview                 Allianz in the world      Managing sustainability     Allianz's roles        About the report


DELIVERING THE GLOBAL SUSTAINABLE                          SUSTAINABLE                       RESPONSIBLE                            TRUSTED                          ATTRACTIVE                   COMMITTED
DEVELOPMENT AGENDA                                           INSURER                          INVESTOR                             COMPANY                            EMPLOYER                    CORPORATE
In September 2015, countries around the world                                                                                                                                                       CITIZEN
adopted a new set of goals for the next 15 years
to end poverty, protect the planet and ensure
prosperity for all. The Sustainable Development
Goals (SDGs) include specific targets that can
only be achieved by governments, civil society
and business working together around the
world. They are indivisible, interlinked and they
influence each other, requiring delivery through
multi-outcome collaborations across the entire
sustainable development agenda.
We recognize that as an insurance and financial
services company we contribute to some SDGs
more directly than to others. The SDGs we can
primarily match our activities against are shown
in the box. For further info on aligning our targets
                                                       Our strategy also reaffirms our commitments to the Ten Principles of the UN Global Compact (UNGC), a voluntary initiative based on CEO commitments to implement
with the SDGs please see our website.
                                                       10 universal sustainability principles. We have been a participant in the UNGC since 2002 and it is included in our Code of Conduct. We annually communicate our
                                                       progress in the fields of human rights, labor standards, environmental protection and anti-corruption.
                                                       Our latest reports for the UNGC and the German Sustainability Code (GSC) can be found on our website as well as on the UNGC and GSC websites.

Allianz Sustainability Report 2016   Overview   Allianz in the world   Managing sustainability   Allianz's roles          About the report

                                                      IN THE WORLD
                                                                                                 Our business is, by its very nature,
                                                                                                 orientated towards the future.
                                                                                                 We continually strive to look
                                                                                                 beyond the short term and use our
                                                                                                 knowledge and expertise to focus
                                                                                                 on future risks and impacts.
                                                                                                 We are connected to people in
                                                                                                 over 70 countries – countries that
                                                                                                 are home to our employees, our
                                                                                                 customers, investors and society.
                                                                                                 As a result, we instinctively take a
                                                                                                 global view of the change that is
                                                                                                 happening around the world.

                                                                                                 IN THIS SECTION
                                                                                                 In focus: A call to action                 13
                                                                                                 on climate change
                                                                                                 In focus: Breaking down barriers           17
                                                                                                 to social inclusion

Allianz Sustainability Report 2016                                                     Overview   Allianz in the world   Managing sustainability   Allianz's roles   About the report

                         2016 was a momentous year in the global effort to combat
                         climate change. The first-ever universal, legally binding
                         climate deal was ratified by 125 countries in 2016. At the
                         same time, 2016 was the warmest year on record with polar
                         sea ice disappearing at an unprecedented rate. We appear to
                         have reached a new level in terms of both action and impact
                         around climate change.
                         At Allianz, we encourage solutions for tomorrow’s climate
                         today, by working with others to understand the science,
                         develop opportunities and mitigate impacts. We anticipate
                         the risks of climate change and protect and care for our
                         customers through our insurance products, while using our
                         assets and insurance expertise to enable the transition to
                         a low-carbon economy. We regularly update our Climate
                         Change Strategy to refine our approach and up our ambition.

                       “Today we see the impact of climate
                        change on our business and understand
                        the risks it entails in the future. We think
                        the financial sector can take a lead role
                        to enable the transition to a low-carbon
                        world – Allianz is ready to accompany our
                        clients as a long-term investor and risk
                        expert on that journey.”

                         Oliver Bäte
                         Chairman of the Board of Management, Allianz SE

Allianz Sustainability Report 2016                                                     Overview                 Allianz in the world        Managing sustainability   Allianz's roles                About the report

WORLD                                                                                                                                                                      For more detail on United Nations Sustainable Development
                                                                                                                                                                           Goals please visit sustainabledevelopment.un.org

The World Economic Forum                         CLIMATE CHANGE THREATENS TO                                WHAT CLIMATE CHANGE MEANS                                  Allianz Climate Solutions GmbH (ACS) is
                                                 RADICALLY CHANGE OUR CLIMATE,                              FOR THE FINANCIAL SECTOR
considers failure of Climate Change              OUR LIVES AND OUR BUSINESS
                                                                                                                                                                       the Climate Change Center of Excellence of
                                                                                                            The consequences of climate change materially              Allianz Group. ACS is responsible for Allianz’s
mitigation and adaptation to be the              Climate change, mainly caused by human-activity            affect insurers’ operations across all lines of            Climate Change Strategy. It acts as a focal point
top risk facing society today.                   induced global warming, poses a major risk to the          business. We are exposed in two ways: through              and convener of Allianz’s risk and investment
                                                 livelihoods of millions of people worldwide. It affects    insurance policies covering damage caused by               expertise worldwide to catalyze the development
Global Risks Report, 2016                        the wealth of societies and the value of companies,        natural disasters such as storms and floods; and as        of solutions for a changing climate. ACS also
                                                 since the frequency and severity of weather                large-scale institutional investors with significant       offers insurance and advisory services for green
                                                 extremes – such as heatwaves, droughts, floods,            stakes in companies affected by changing weather           energy projects to external clients and Allianz
                                                 storms – are expected to increase and the sea level        patterns, tightening regulation and shifting               entities worldwide. ACS has been hosted by
                                                 is rising. The first sectors affected will be coastal      consumer behavior.                                         AllianzRe since 2016. You can find out more
                                                 infrastructure, agriculture and water, but also energy.                                                               about Allianz Climate Solutions here.
                                                                                                            For example, global food production will have to
                                                                                                            double in the next fifty years to match a growing
                                                                                                            world population. When coupled with the need to
                                                                                                            address environmental concerns and climate risks,
                                                                                                            it is clear that 'business as usual' will not suffice.
   IT IS                                   2016                      20°C               198 mm              We can build on our experience as a microinsurer
   HAPPENING                             warmest year              above normal        sea level rise due   and reinsurer in agriculture to bring climate risk
                                          on record                  North Pole
                                                                                        to ice melting
                                                                                          since 1870        insurance mechanisms to vulnerable regions.               “The Allianz climate strategy
                                                                                                            At the same time, the unprecedented challenge              provides us with a compass to
                                                                                                            of climate change creates opportunities and                help our customers and society
                                                                                                            incentives for the development of new technologies
                                                                                                            on a global scale that drive economic development          at large adjust to changing times.
                                            2/3                       2/3               43% rise            and generate social benefits.                              At Allianz Climate Solutions, we
                                     of the world’s biggest         of weather-         in global water                                                                work like a talent scout, finding the
                                       cities in low-lying       related losses are    demand expected
                                          coastal areas              uninsured              by 2030                                                                    right people within the company
   CHALLENGES                                                                                                                                                          to pick up new ideas, develop new
   AHEAD:                                                                                                                                                              business models and engage with
                                         1/3 drop                  USD 500              USD 22.6                                          Simone                       policy makers, academics and
                                      in investment in fossil   billion needed every    trillion in green
                                          fuels predicted        year until 2050 to       investment                                      Ruiz-Vergote                 civil society to improving our joint
                                             by 2040              adapt to climate       opportunities                                    Managing Director,
                                                                        change              until 2030
                                                                                                                                          Allianz Climate              understanding of climate risks and
                                                                                                                                          Solutions                    advancing a toolkit of solutions.”

Allianz Sustainability Report 2016                                                          Overview               Allianz in the world   Managing sustainability   Allianz's roles            About the report

                                                       2016: A YEAR OF INTERNATIONAL ACTION
“We have had 125 countries ratify                      2016 was pivotal for global action on climate change.
 the Paris climate agreement since                     At the Paris conference (COP21) in December 2015,
                                                       195 countries adopted the first ever universal, legally
 last year. Now it is important to                     binding global climate deal to keep temperature
 keep the momentum going and                           rise this century to well below two degrees Celsius
                                                       above pre-industrial levels. The agreement entered
 implement national plans to                           into force in 2016 much faster than expected after
 combat climate change. We can't                       enough countries ratified it.
 afford to wait to see the effects                     As part of this agreement, countries have to submit
 of climate change and then just                       long-term national climate plans, which can guide
                                                       investors on the speed and milestones of a
 pay for the clean-up. It doesn’t                      low-carbon transition. Another aspect is that
 make sense either economically                        poorer countries that are particularly vulnerable
                                                       to climate change should get support to adapt
 or socially. If our role is to provide                to a changing environment.
 resilience for society, as I believe
                                                       ALLIANZ ON THE GLOBAL STAGE
 it is, then we have an opportunity
                                                       At COP 21, Allianz joined the Portfolio
 and a responsibility to do so.”                       Decarbonization Coalition, a group of 27 global
                                                       asset owners and managers – together accounting
                                                       for over three trillion U.S. Dollars in assets under
                                                       management – committed to reducing the climate
                                                       impacts of their investment portfolios.
                                                       We have upped our engagement in leading industry
                                                       initiatives in recent years. Initiatives like the Finance
                                                       Initiative of the UN Environmental Programme

                                                                                                                              + $3tn                                                      195
                                                       (UNEP FI), the Munich Climate Insurance Initiative
                                                       (MCII), the Geneva Association, ClimateWise,
                                     Amer Ahmed        the Global Innovation Lab for Climate Finance,
                                     CEO, Allianz RE   and the Insurance Development Forum (IDF)                             Total assets under                                    Countries adopted legally
                                                       allow us to share knowledge with peers, convey                     management of Portfolio                                 binding global climate deal
                                                       messages to decision makers and jointly develop                    Decarbonization Coalition
                                                       innovative solutions to mobilize finance for a green
                                                       transition and to protect the world better from a
                                                       changing climate.

Allianz Sustainability Report 2016                                                                 Overview            Allianz in the world            Managing sustainability   Allianz's roles                About the report

OUR CHANGING                                                                                                                         4.6bn                                                              156
                                                                                                                              Euro invested in renewable                                  Sustainable Solutions provided by
                                                                                                                                  energies by Allianz                                         Allianz for our customers

OUR CLIMATE CHANGE STRATEGY                             WE ANTICIPATE THE RISKS OF A CHANGING                      WE CARE FOR OUR CUSTOMERS…                                    WE ENABLE POSITIVE CHANGE…
We are committed to taking a leading role in
                                                        CLIMATE… AS AN INVESTOR                                    AS AN INSURER                                                 AS AN INVESTOR, INSURER AND AS
tackling the climate challenge. This means              We screen our equity and fixed income investments          We advise our customers on how they can reduce
                                                                                                                                                                                 A CORPORATE CITIZEN
managing emissions from our operations, as a            using 37 environmental, social and corporate               risks and minimize damage, while compensating                 Enabling as an investor
carbon-neutral company, and using our leverage          governance (ESG) criteria – including carbon               those who have suffered losses and enabling                   We are a leading investor in renewable energies
as one of the world’s largest institutional investors   emissions, energy efficiency, and environmental            low-carbon technology covers.                                 with more than 4.6 billion Euro invested. We want
and insurers.                                           footprint. This guides our development and                                                                               to at least double our investments in the mid-term.
                                                                                                                   We actively support the InsuResilience initiative of
                                                        implementation of sustainable investment strategies.                                                                     Allianz also offers several renewable energy funds
EMBEDDING CLIMATE PROTECTION                                                                                       the G7, which aims to provide climate risk insurance
                                                                                                                                                                                 for institutional investors who want to invest in
IN OUR BUSINESS                                         We have stopped financing coal-based                       to an additional 400 million vulnerable people
                                                                                                                                                                                 low-carbon infrastructure. Once the newest fund,
                                                        business models.                                           by 2020, for instance for the agricultural sector,
We are committed to integrating climate protection                                                                                                                               AREF II, is fully invested, AllianzGI will manage
                                                                                                                   including weather index insurances or animal
firmly into our core business. As a global leader and   Allianz SE, Allianz Global Investors (AllianzGI) and the                                                                 close to 1.6 billion Euro in renewable energy and
                                                                                                                   mortality covers.
a good corporate citizen, we want to make the           Pacific Investment Management Company (PIMCO)                                                                            infrastructure projects in Europe.
most of our opportunities to develop solutions for      are signatories of the Principles for Responsible          We are also joining forces with development                          See page 37 for how we are
a changing climate and enable the transition to         Investment (PRI), which help us leverage our current       agencies to pilot innovative solutions in developing                 enabling the low-carbon economy
a low-carbon economy.                                   responsible investment practice.                           and emerging countries, e.g. looking at ways to
                                                              See page 34 for more on our                          mitigate risks and insure SMEs and cities against             Enabling as an insurer
                                                              approach as a Responsible Investor                   extreme weather events.                                       We provide over 150 Sustainable Solutions for our
                                                                                                                   Allianz is signatory to the UNEP FI Principles for            customers – from special tariffs for electric cars to
                                                                                                                   Sustainable Insurance (PSI).                                  environmentally-themed funds.
                                                                                                                         See page 29 for more on our                             Allianz is developing and providing insurance
                                                                                                                         approach as a Sustainable Insurer                       solutions for renewables technologies and energy
                                                                                                                                                                                 efficiency around the world.
                                                                                                                                                                                        See page 31 for how we are broadening
                                                                                                                                                                                        our approach to Sustainable Solutions

                                                                                                                                                                                 Enabling as a company and corporate citizen
                                                                                                                                                                                 We are firmly committed to minimizing our
                                                                                                                                                                                 environmental impact and are committed to a
                                                                                                                                                                                 carbon neutral business model.
                                                                                                                                                                                 Our 2020 targets include reducing CO2 emissions
                                                                                                                                                                                 and energy use per employee by 30% (against 2010)
                                                                                                                                                                                 and reducing paper use per employee by 40% against
                                                                                                                                                                                 a 2014 baseline.

                                                                                                                                                                                        See page 49 for how we are
                                                                                                                                                                                        reducing our impacts
Allianz Sustainability Report 2016                                                          Overview   Allianz in the world   Managing sustainability   Allianz's roles   About the report

                         Despite unprecedented social progress in recent decades,
                         too many people around the world still have limited access to
                         social, economic and political opportunities. Inequality and
                         marginalization present a huge challenge and risk threatening
                         the future social and economic stability of communities around
                         the world.
                         We believe social inclusion is one of the most important
                         challenges society is facing. That is why, in 2016, we made
                         it one of the three priorities of our Corporate Responsibility
                         Strategy. To amplify our role as a Committed Corporate Citizen,
                         we launched Encouraging Future Generations – our new Social
                         Inclusion program that targets better opportunities for young
                         people worldwide.

                       “Social inclusion is one of the most
                        pressing issues we face today around
                        the globe. Allianz is proud to contribute
                        by empowering young people and those
                        who support them to take action for
                        positive social change.”

                                                     Sabia Schwarzer
                                                     Head of Communications and
                                                     Corporate Responsibility, Allianz SE

Allianz Sustainability Report 2016                                              Overview       Allianz in the world        Managing sustainability    Allianz's roles                About the report

WORLD                                                                                                                                                      For more detail on United Nations Sustainable Development
                                                                                                                                                           Goals please visit sustainabledevelopment.un.org

THE WIDENING GAP:                                       “Poverty is not created by people.
SOCIAL EXCLUSION AND INEQUALITY                                                                HOW OUR WORLD
                                                         Poor people are not the cause of      IS CHANGING
In December 2016, the UN published its 2016 Report
on the World Social Situation – Leaving No One           poverty. Poverty is imposed from
Behind: The Imperative of Inclusive Development.         outside, by creating many obstacles
The report describes the extent to which social
progress has helped to reduce poverty, improve
                                                         for them and denying many
health and provide better education around the           opportunities to them.”
world. Despite this, real and significant challenges
remain – both social and economic. Many people
are still excluded from the economic, social
and political opportunities that enable them
to participate fully in society and improve their
                                                                                                  people are unemployed
quality of life. For this reason, the 2030 Agenda for                                           globally, including 75 million
Sustainable Development has inclusiveness and                                                     young women and men,
shared prosperity at its heart. The UN Sustainable                                                seven million in Europe.
Development Goals (SDGs) target improvements
in social inclusion such as: No poverty, Zero

                                                                                                         2bn                               1 in 10
hunger, Good health and well-being, Quality                                                                                                                                 Young people, especially those
education, Gender equality, and Reduced                 Professor Muhammad Yunus                                                                                             who are not in employment,
inequalities. With the SDGs helping to re-shape         Nobel Peace Prize Laureate                                                                                           education or training, are the
                                                                                                estimated adults lack access       people in the world live under
our Corporate Responsibility agenda, we are using                                                                                                                               group at highest risk
                                                                                               to a transaction account and        the international poverty line
our opportunities to break down barriers to social                                                                                                                               of social exclusion.
                                                                                               are excluded from the formal        of U.S. Dollars 1.90 per person
inclusion, working with our partners and other
                                                                                                      financial system.                        per day.
stakeholders around the world.

                                                                                                    65.3mn                                 745,545                            The risk of holding a poorly
                                                                                                                                                                              paid, precarious or insecure
                                                                                                  people, or one person in              displaced people applied               job is higher today than it
                                                                                                 113, were displaced from                for asylum in Germany                         was in 1995.
                                                                                                their homes by conflict and                      in 2016.
                                                                                                    persecution in 2015.

Allianz Sustainability Report 2016                               Overview                     Allianz in the world       Managing sustainability     Allianz's roles                 About the report

UNDERSTANDING                                             RISKS-TRENDS INTERCONNECTIONS MAP

SOCIAL                                                                                                                          Climate

                                                                                                     geographic                                          Environmental
                                                                                                      mobility                                            degradation

                                                                            Rise of chronic
The European Commission defines social inclusion as                            diseases                                                                                          Urbanization
'a process by which all citizens have the opportunities
and resources necessary to participate fully in
economic, social and cultural life, and to enjoy a
standard of living and well-being that is considered
normal in the society in which they live'. The causes
of social exclusion go far beyond just poverty and
can depend on many different issues, including race,
age, ethnicity, gender, religion, place of residence,              Rise of cyber                                                                                                                Growing
disability status, sexual orientation - anything that              dependency                                                                                                                 middle class
excludes people from opportunities.                                                                                                                                                           in emerging
In its 2017 Risk Report, the World Economic
Forum highlights polarized societies and political
landscapes, along with generational and cultural
divisions, as taking center stage in an increasingly
uncertain environment. Its Risks-Trends
interconnections map (see right) shows how                                Shifts
profound social instability, large-scale involuntary                    in power                                                                                                              Ageing
migration and unemployment or underemployment
are having a significant impact and the extent to
which they are interconnected with many other
issues and challenges affecting society.

     You can read the full report at                                                 landscape of                                                                         Rising
     weforum.org/docs/GRR17_Report_web.pdf                                           international                                                                     income and
                                                                                      governance                                                                          wealth
                                                                                                                Increasing                   Increasing
                                                                                                                  national                  polarization of
                                                                                                                 sentiment                    societies

Allianz Sustainability Report 2016                                                           Overview                   Allianz in the world         Managing sustainability   Allianz's roles           About the report


As a global insurer, we rely on the principle of        HOW WE CONTRIBUTE…                                          …AS AN ATTRACTIVE EMPLOYER                                  At our 2016 Vision Summit, we hosted over
solidarity. Pooling risks is inherent in our business   …AS A SUSTAINABLE INSURER                                   Internally, we support social inclusion through
                                                                                                                                                                                500 diverse stakeholders to explore solutions
model and we have a major interest in creating                                                                                                                                  to overcome the barriers to social inclusion,
                                                        By the very nature of what we do – protecting people        our diversity and well-being programs, and by
stable communities. Civil unrest, social tensions                                                                                                                               especially for young people. We were privileged
                                                        and businesses against risk – we have a significant         supporting groups, such as women in management
and societal upheaval all pose a major business risk                                                                                                                            to be joined by Muhammad Yunus, Nobel
                                                        positive social impact. Nowhere is this more the case       and people with disabilities (see page 56). We also
for Allianz.                                                                                                                                                                    Peace Prize winner for his pioneering work on
                                                        than in emerging markets. We are committed to               actively support employee rights and apply core
                                                                                                                                                                                social business. He explained the effects of the
Of course, we also have an interest in creating         expanding our emerging consumer business offer to           human rights principles based on the United Nations
                                                                                                                                                                                concentration of wealth were a big threat to social
empowerment and access to employment                    close the gap for more people who need access to            Universal Declaration of Human Rights throughout
                                                                                                                                                                                inclusion but said 'wealth concentration can be
for members of society, which in turn creates           low cost financial services (see page 32).                  our worldwide organization.
                                                                                                                                                                                addressed through social businesses, through
the talented and diverse workforce we rely on.
                                                        We are also widening access through our financial           As a member of The B Team, we are part of the               encouraging entrepreneurship in all…and
Our reputation as a global employer and our license
                                                        literacy initiatives. Digitalization is enabling more and   100% Human at Work initiative that aims to grow             changing the financial system.'
to operate depend on treating our employees fairly
                                                        more people to access insurance as we embrace the           human-centered companies designed to deliver
and being a trusted member of society.                                                                                                                                          Talking about how anyone could make a social
                                                        opportunities through our Digital by Default strategy.      equality, respect, growth, belonging and purpose to
                                                                                                                                                                                impact, Yunus said he wanted people to see
                                                        But it comes with risks – particularly around privacy       their employees and the communities in which they
                                                                                                                                                                                themselves as more than just employees, as
                                                        and data protection. We are taking this risk seriously      operate. Find out more at Bteam.org
                                                                                                                                                                                problem-solving social entrepreneurs who can
                                                        by enforcing robust security controls (see page 45).
                                                                                                                    …AS A COMMITTED CORPORATE CITIZEN                           contribute to solving wider societal problems.
                                                                                                                                                                                One of the core aims of our Encouraging Future
                                                                                                                    Allianz operates 14 independent charitable                  Generations Program is to empower young
                                                                                                                    foundations that are linked to its subsidiaries all over    people to take up this opportunity.
                                                                                                                    the world. Together, these foundations enable us to
                                                                                                                    support a wide range of initiatives that tackle social,
                                                                                                                    environmental and cultural issues in many countries
                                                                                                                    (see page 65).
                                                                                                                    To scale up our contribution towards developing
                                                                                                                    stronger, more inclusive communities, we reshaped
                                                                                                                    our Corporate Responsibility Strategy in 2016 to
                                                                                                                    include Social Inclusion as one of its three priorities.
                                                                                                                    We launched our new citizenship program,
                                                                                                                    Encouraging Future Generations, which aims to
                                                                                                                    help break down some of the barriers facing young
                                                                                                                    people around the world.

Allianz Sustainability Report 2016                                       Overview             Allianz in the world       Managing sustainability   Allianz's roles                  About the report

FUTURE GENERATIONS                                                                                                                                      For more detail on United Nations Sustainable Development
                                                                                                                                                        Goals please visit sustainabledevelopment.un.org

                                                                                          HOW WE WILL DO IT                                        “With Encouraging Future
                                                                                          • Beneficiaries: children and youth around the world.     Generations, we want to empower
                                                                                          • Focus: humanitarian, intercultural and                  young people to be change makers
                                                                                            economic opportunities.
                                                                                                                                                    to transform their own society. We
                                                                                          • Methods: social partnerships, awareness
                                                                                            campaigns, dialogue events, training, awards,
                                                                                                                                                    don’t have all the creative solutions,
                                                                                            funds, employee volunteering and fundraising,           but if we can start a dialogue and
                                                                                            foundation activities.                                  support the future generations who
                                                                                          GROUP-WIDE PROJECTS                                       have the potential – by providing
                                                                                          • SOS Children’s Villages partnership to support          the necessary skills and equal
                                                                                            underprivileged kids (re-launch in 2016).
                                                                                                                                                    opportunities they need – then we
                                                                                          • Social Innovation Fund to incentivize projects in       can be part of the solution.”
                                                                                            local Allianz entities (planned for 2017).
                                                                                          • Future dialogues to engage youth on social
                                                                                            development (planned for 2017).
                                                                                          • Social-Tech Seed-Fund to support young
                                                                                            entrepreneurs develop digital solutions that solve
We believe young people today          Our aim: To empower young people to grow             societal challenges (launch planned for 2018).
                                       with confidence and shape resilient, more
hold the key to unlocking the          inclusive societies.
solutions society needs for a better
                                       OUR CORPORATE RESPONSIBILITY GOALS
tomorrow. That is why we have
                                       • Empower young people to grow with confidence
launched Encouraging Future              and to shape resilient societies.                                                                          Tatijana Kulas
Generations to provide them with       • Engage employees and use their skills,                                                                     Program Lead Encouraging Future
skills and inspiration, nurturing        commitment and enthusiasm for social projects.                                                             Generations, Allianz SE
their talents and increasing their     • Prove that we deserve acceptance in local                                                                          For more information on Allianz's role as a
                                                                                                                                                            Committed Corporate Citizen see page 60
                                         communities and trust in our brand.
potential to make the most of
the opportunities.
Allianz Sustainability Report 2016                               Overview   Allianz in the world   Managing sustainability   Allianz's roles             About the report

                                                                                                                             IN THIS SECTION

                                                                                                                             Our Corporate Responsibility Strategy23
                                                                                                                             Our Corporate Responsibility Governance24
                                                                                                                             Sustainability in insurance                              26
                                                                                                                             and investment

“Both Allianz and I personally have long been committed to                                                                   JOINING THE B TEAM
 managing the risks of climate change and advancing equality and                                                             In 2016, Oliver Bäte became a member of The
                                                                                                                             B Team. He joins co-founders Richard Branson,
 social inclusion, and I am delighted to be able to contribute our                                                           Jochen Zeitz, Muhammad Yunus and 19 other global
 expertise to The B Team’s initiatives. Business has an important                                                            leaders in their collective effort to redefine the role
 role to play alongside other actors in devising innovative solutions                                                        of business as a force for social, environmental and
                                                                                                                             economic benefit.
 to urgent problems, and I’m happy to join The B Team in its efforts
 to bring these topics to the forefront of the business agenda.”
 Oliver Bäte
 Chairman of the Board of Management, Allianz SE
Allianz Sustainability Report 2016                                                    Overview                  Allianz in the world          Managing sustainability   Allianz's roles         About the report


                                                                      As a result, we have renewed our focus in three areas:
In 2015, following extensive stakeholder dialogue                                                                                                                       “We work on integrating
both within and outside Allianz, our Chief Executive,
Oliver Bäte, announced a new business strategy –                                                                                                                         sustainability into our core business
our Renewal Agenda.                                              Low-                                                                                                    and maximizing the transparency
                                                                                                   Social                                     Business
The Renewal Agenda focuses on five goals: True                  Carbon                                                                                                   of our sustainability performance.
Customer Centricity; Digital by Default; Technical                                               Inclusion                                  Integration
Excellence; Growth Engines; and Inclusive
                                                               Economy                                                                                                   We’re constantly analyzing
Meritocracy. It is fostered through a comprehensive                                                                                                                      opportunities to improve Allianz’s
cultural change process, which is underpinned                                                                                                                            sustainability performance.”
by customer and market excellence, collaborative
leadership, entrepreneurship and trust (see page 5).       using our roles as an              using our role as an                        managing material
                                                           Insurer and Investor              Insurer, an Employer                        ESG risks and seizing
In 2016, we continued to develop and implement
our approach, building on the five pillars of our           to help manage the                 and a Committed                         ESG opportunities, while
success – our integrity, financial strength, technical       risks arising from              Corporate Citizen to                      embedding compliance,
competence, operational excellence and talent base.        climate change and                 contribute to more                           responsible sales,
OUR CORPORATE                                                 to promote the                  inclusive societies.                       transparency as well
RESPONSIBILITY STRATEGY                                   low-carbon economy.                                                           as data protection and
Our Corporate Responsibility Strategy is organized
                                                                Our Climate                  Future Generations                         privacy across all areas
around three focus areas, through which we respond                                                                                          of our business.
to our material issues. In 2016, we re-defined our           Change Strategy                    is our new social
most material issues to enable us to refocus our           lies at the heart of our           inclusion program                              Our global                  Katharina Latif
                                                                                                                                                                         Head of Corporate Responsibility, Allianz SE
strategy and organizational design (see page 8).            business model that                that is promoting                            ESG Strategy
We are working to better align our Corporate              aims to protect people              inclusion of young                       ensures ESG integration
Responsibility Strategy with our company strategy        and businesses from risk.            people worldwide.                          in all our insurance
and integrating it further is a priority for the                                                                                            business and
coming years.
                                                                                                                                         direct investments
                                                                                                                                        of proprietary assets.

                                                                   See page 16                      See article on                              See page 26
                                                                                                    page 17

Allianz Sustainability Report 2016                                                          Overview                Allianz in the world       Managing sustainability   Allianz's roles            About the report

The highest governing body for sustainability-related    In addition to the Group ESG Board, several
issues is the Group ESG Board. Established in 2012,      committees with Board member leadership play an
it consists of three Allianz SE Board members who        important role in our decision-making processes:
meet quarterly. The Group ESG Board is responsible
                                                         Group Finance and Risk Committee: oversees
for integrating ESG into all business lines and core
                                                         risk management and monitoring, including
processes dealing with insurance and investment
                                                         sustainability risk. The Committee is the escalation
decisions. It also leads on associated stakeholder
                                                         point for ESG-related topics, based on analysis and
engagement. The three Board members assume
                                                         deliberations within the ESG Board.
responsibility for specific sustainability topics and
functional departments provide regular updates on        Group Underwriting Committee: monitors the
sustainability issues directly to the Board.             underwriting business and its risk management,
                                                         as well as developing new underwriting policy
Current Group ESG Board members are:
                                                         and strategy.
                Dr. Axel Theis: member of the Board
                                                         Group Investment Committee: monitors the
                of Management of Allianz SE since
                                                         Group’s investment policy.
                2015, responsible for Global Insurance
                Lines & Anglo Markets, chair of the
                Group ESG Board.                                                                                CORPORATE RESPONSIBILITY MANAGEMENT                      between climate and environmental topics, the
                                                                                                                                                                         Environmental Management function now sits
                Jacqueline Hunt: appointed to the                                                               Our Group-level Corporate Responsibility
                                                                                                                                                                         within Allianz Re, working closely with Allianz Climate
                Board of Management of Allianz SE                                                               management team is responsible for managing
                                                                                                                                                                         Solutions - our center of excellence on climate
                in July 2016, responsible for Asset                                                             the strategic framework for all Group-wide
                                                                                                                                                                         change and responsible for the implementation
                Management and US Life Insurance.                                                               sustainability activities, developing and introducing
                                                                                                                                                                         of the Allianz climate change strategy and related
                                                                                                                relevant policies, and supporting operating entities
                                                                                                                                                                         activities. The Corporate Responsibility department
                                                                                                                in integrating the Group’s strategic approach
                Dr. Günther Thallinger: appointed                                                                                                                        reports to Sabia Schwarzer (Head of Group
                                                                                                                and policies.
                as member of the Board of                                                                                                                                Communications and Corporate Responsibility,
                Management of Allianz SE from                                                                   In January 2016, we merged our Group sustainability      Allianz SE) who reports directly to Oliver Bäte, CEO
                January 2017 with responsibility for                                                            management function, which was previously made           of Allianz SE. This ensures a close alignment with
                Investment Management.                                                                          up of two Centers of Competence (Allianz4Good            the CEO Office. Furthermore, in 2016 the Group ESG
                                                                                                                and the Group ESG Office) into a single Corporate        Board took on the responsibility for all corporate
                                                                                                                Responsibility function. To strengthen the link          responsibility and climate-related topics.

Allianz Sustainability Report 2016                                                            Overview            Allianz in the world   Managing sustainability   Allianz's roles   About the report

DATA AND ASSURANCE                                        COMMITMENT TO SUSTAINABLE
In 2016, our full sustainability report has been          DEVELOPMENT PRINCIPLES
assured (limited assurance) by PwC to further             Our businesses are signatories to and members of
enhance the quality of our sustainability information     a wide range of global sustainability initiatives and
and data.                                                 principles, which guide us to:
This will further improve the quality of our reporting    • Incorporate best practice sustainable development
and formalize the way sustainability is embedded            principles into our activities, products, services
across core functions and business units. Please find       and investments;
the assurance report here. In addition we are             • Work with and learn from our peers through open
preparing for the upcoming CSR Directive due to be          dialogue and knowledge sharing;
incorporated in German law in 2017.
                                                          • Collaborate to find solutions that address local
RATINGS AND BENCHMARKS                                      and global challenges relevant to our industry
Our objective is to continuously improve our                and beyond; and
performance and to strive for sustainability              • Improve transparency in our own operations
leadership in our sector. We see sustainability ratings     and across the value chain.
such as the Dow Jones Sustainability Index (DJSI) as      Allianz is a signatory of the United Nations
tools to promote transparency and trustworthiness         Environment Programme Finance Initiative (UNEP FI)
towards markets and stakeholders. In our role as          Principles for Sustainable Insurance (PSI), a working
a Responsible Investor, we rely on these ratings as       group dedicated to integrating sustainability into
part of our long-term ESG integration approach            investment management.
for proprietary investments, as well as in the
responsible investment products offered to its            Allianz SE, Allianz Global Investors (AllianzGI) and
asset management customers.                               the Pacific Investment Management Company
                                                          (PIMCO) are also signatories of the UN-supported
In 2016, Allianz achieved its greatest improvement in     Principles for Responsible Investment (PRI), which
the DJSI assessment so far: a +6%-point increase and      aim to integrate ESG principles into investment
up from Bronze to Gold in the RobecoSAM Yearbook          decisions and management. Together, its network
since the previous year. Since its inception in 1999,     of international investor signatories represent
Allianz has been included in the DJSI with top ranking    more than 60 trillion U.S. Dollars of assets
positions each year since 2000.                           under management.
                                                          As asset managers, Allianz SE, AllianzGI and
                                                          PIMCO also report annually on the progress made
                                                          implementing the PRI. You can find our full PSI and
                                                          PRI disclosures in our Download Center.
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