RESPONDING TO TOMORROW'S CHALLENGES - ALLIANZ GROUP SUSTAINABILITY REPORT 2017

 
RESPONDING TO TOMORROW'S CHALLENGES - ALLIANZ GROUP SUSTAINABILITY REPORT 2017
RESPONDING
TO TOMORROW'S
CHALLENGES
     ALLIANZ GROUP
     SUSTAINABILITY REPORT 2017
RESPONDING TO TOMORROW'S CHALLENGES - ALLIANZ GROUP SUSTAINABILITY REPORT 2017
2    Allianz Sustainability Report 2017                                              Overview                 SDG contributions           Managing sustainability     Inside Allianz              About the report

    WELCOME
    CONTENTS
    1 Overview                                  2
      – Allianz Group at a Glance               3
      – Sustainability Performance Highlights   4
      – CEO’s Perspective                       5
    2 	Our Contribution to the United Nations
        Sustainable Development Goals         7
        – Embedding the SDGs                  8
        – Our Contribution to the SDGs      10
    3 Managing sustainability                   17
      – Our Renewal Agenda                      18
      – Our Corporate Responsibility Strategy   19
      – ESG Approach                            20
      – Climate Change Strategy                 22
      – Corporate Responsibility Governance     23   OUR APPROACH TO SUSTAINABILITY                        To meet these legal requirements, we have               ground; meeting the requirements of industry
      – Transparent Reporting                   24                                                         published a combined separate non-financial             initiatives while engaging with diverse audiences
      – Stakeholder Engagement                  25   REPORTING
                                                                                                            report alongside our 2017 annual report.                around the world with our report.
                                                      The need for greater transparency among
    4 Inside Allianz                            27                                                         With our sustainability reporting, we aim to meet       In the end, we want to make Allianz as
                                                      business has come to the fore as society’s
          Our Role as a Sustainable Insurer     28                                                         best practice standards and guidance as set out         transparent as possible and that means
                                                      expectations continue to grow. It is especially
          Our Role as a Responsible Investor    34                                                         by global initiatives such as the Global Reporting      continuously improving our sustainability
                                                      important for the financial services sector, which
          Our Role as a Trusted Company         43                                                         Initiative (GRI) and UN Global Compact (UNGC).          reporting. To help us achieve it, we welcome your
                                                      has a huge responsibility – and opportunity – to
          Our Role as an Attractive Employer    56                                                         On top of these, sustainability benchmarks and          feedback on this report which you can provide by
                                                      support societal priorities such as the United
        	Our Role as a Committed                                                                           ratings such as the Dow Jones Sustainability            emailing us at sustainability@allianz.com.
                                                      Nations (UN) Sustainable Development Goals
          Corporate Citizen                     66                                                         Index (DJSI) and CDP enable us to compare
                                                      (SDG). To maximize our positive impact, it is vital
    5 About the report                          75   we communicate how we are contributing and            our progress and drive up our performance
        Main Targets and Achievements
      –	                                        76   where we can do more.                                 while meeting the needs and expectations of
      – Key Sustainability Data                 80                                                         diverse stakeholders.
                                                      Our sustainability reporting has come to fulfill
      – Climate-related Financial Disclosure    86                                                         Equally important is our need to reach out to and
                                                      a multitude of purposes and requirements,
                                                      making it an important but challenging                engage with a broad global audience about the
                                                      opportunity. The EU Directive on disclosure of        way we do business – from our employees and
                                                      non-financial and diversity information by certain    investors to customers and non-governmental
                                                      large undertakings and groups (2014/95/EU)            organizations (NGOs). Our reporting needs to
                                                                                                            be open and transparent about the issues that
                                                                                                                                                                     We hope you enjoy
                                                      has introduced new rules for the disclosure of
                                                                                                            matter to them, and presented in a way they can          reading our Sustainability
                                                      non-financial information from the 2017 fiscal
                                                      year onwards.                                         understand. As a result we strive to find the middle     Report 2017.
RESPONDING TO TOMORROW'S CHALLENGES - ALLIANZ GROUP SUSTAINABILITY REPORT 2017
3    Allianz Sustainability Report 2017   Overview          SDG contributions     Managing sustainability      Inside Allianz               About the report

    ALLIANZ GROUP
    AT A GLANCE
    With over 88 million
    customers worldwide,
    Allianz has grown to be
    one of the world’s largest                       Total revenues approx.
    insurers, investors and
    assistance providers.                            €126.1bn                                               Third-party assets of

                                                                                                            €1,448bn
    This enables us to protect our
    customers locally and to offer
    an increasingly diverse global
    portfolio of products and services
    that meet both our customers’
    needs and the needs of wider
    society. We stand for trust
    and strive for profitable and
    sustainable growth that ensures                               In
    everyone who belongs to our                                   more
                                                                  than
    community benefits.
                                                                  70
                                                                                                                                Allianz Group serves

                                                                  countries                                                     88mn
                                                                                                                                customers

                                                                                Over

                                                                                140,000
                                                                                employees worldwide
RESPONDING TO TOMORROW'S CHALLENGES - ALLIANZ GROUP SUSTAINABILITY REPORT 2017
4   Allianz Sustainability Report 2017                          Overview                     SDG contributions           Managing sustainability    Inside Allianz              About the report

    SUSTAINABILITY
    PERFORMANCE HIGHLIGHTS
                                                                                                                                                                     Total of

                                         SUSTAINABLE   • 583 insurance and investment
                                                         transactions assessed for ESG risks.
                                                                                                      • 1.21 billion Euro revenue generated
                                                                                                        through Sustainable Solutions.
                                                                                                                                                                     €5.6bn
                                         INSURER
                                                                                                                                                   See more on
                                                       • 58 million customers in the emerging         • Allianz X invested 96.6 million            page 28
                                                                                                                                                                     debt and equity investments
                                                         consumers market.                              U.S. Dollars in leading digital
                                                                                                                                                                     in renewable energy
                                                                                                        microinsurer BIMA.

                                         RESPONSIBLE   • 1 billion Euro new debt and equity
                                                         investments in renewable energy.
                                                                                                      • Launch of systematic approach
                                                                                                        for engagement with investee

                                         INVESTOR                                                                                                                    165
                                                                                                        companies on ESG grounds.                  See more on
                                                       • Green bond investments of                                                                 page 34
                                                         2.5 billion Euro.
                                                                                                                                                                     Sustainable Solutions

                                         TRUSTED       • 17% cut in CO2 emissions per
                                                         employee since 2010.
                                                                                                      • 65% of our outbound communication
                                                                                                        was digital.

                                         COMPANY
                                                                                                                                                   See more on
                                                       • 922 suppliers have signed our                • 60% of business segments measuring         page 43
                                                                                                                                                                     No. 1 insurance leader of the
                                                         Vendor Code of Conduct.                        NPS performed significantly above
                                                                                                        market average or achieved
                                                                                                        loyalty leadership in their market.                          DJSI
                                         ATTRACTIVE    • DJSI global insurance leader
                                                         in human capital development,
                                                                                                      • 66% favorable votes in Work Well
                                                                                                        Index, our highest score to date.

                                         EMPLOYER        scoring 100%.                                                                             See more on
                                                                                                      • 72% highest ever score in the              page 56
                                                       • 37.6% of Allianz managers                      Inclusive Meritocracy Index (IMIX)
                                                         are women.                                     – our key measure of cultural change.

                                         COMMITTED     • 20 million Euro corporate giving.
                                                       • Expanded Encouraging Future
                                                                                                      • Second Allianz World Run raised
                                                                                                        500,000 Euro for SOS

                                         CORPORATE                                                      Children’s Villages.                       See more on
                                                         Generations with the Allianz Social                                                       page 66
                                                         Innovation Fund and Allianz Future
                                         CITIZEN         Generations Award.
RESPONDING TO TOMORROW'S CHALLENGES - ALLIANZ GROUP SUSTAINABILITY REPORT 2017
5    Allianz Sustainability Report 2017                   Overview   SDG contributions   Managing sustainability    Inside Allianz      About the report

    CEO’S PERSPECTIVE
    Allianz became the highest-ranked insurer worldwide
    in the Dow Jones Sustainability Index in 2017.
    This achievement doesn’t just happen overnight.
    Many ambitious and dedicated colleagues have
    worked together over a number of years to
    achieve this goal. While there are still challenges
    to come, we have made great strides in recent
                                                                                                                   “I am convinced
    years. We have further embedded environmental,
    social and governance (ESG) criteria into our
                                                                                                                    that climate
    proprietary portfolio (the money we manage
    on behalf of our insurance customers), by
                                                                                                                    change and
    rolling out the ESG Scoring approach across
    our debt and equity investments. This allows us
                                                                                                                    economic
    to make even better investment decisions that
    foster sustainable markets and societies, while
                                                                                                                    instability are the
    meeting long-term interests. We have also grown                                                                 biggest challenges
    closer to the community, having expanded our
    Corporate Citizenship Program and launching                                                                     for the coming
    the Future Generations Award for helping
    underprivileged youth.                                                                                          decades. We have
    These steps forward have helped us to win
    the trust and recognition of our employees,
                                                                                                                    no time to waste.”
    customers and policymakers that enable us to be
    a leader of sustainable business standards in the
    financial community.                                                                                            Oliver Bäte
                                                                                                                    Chairman of the Board of Management,
                                                                                                                    Allianz SE
RESPONDING TO TOMORROW'S CHALLENGES - ALLIANZ GROUP SUSTAINABILITY REPORT 2017
6    Allianz Sustainability Report 2017                                                  Overview                SDG contributions           Managing sustainability   Inside Allianz                 About the report

    CEO’S PERSPECTIVE

                                                                                                                                                                             72%
    THREE PILLARS THAT MAKE AN IMPACT                       THE NEED TO INNOVATE TO FIND                        MY PERSONAL MOTIVATION FOR
    Large, responsible companies can, and do, have          SUITABLE SOLUTIONS                                  ENGAGING IN SUSTAINABILITY
    a measurable impact. We do this by focusing             The how is just as important as the what.           Climate change and economic instability are the              score on the Inclusive
    our Corporate Responsibility (CR) approach on           We need to continuously innovate: market-           biggest challenges we will face in the coming                Meritocracy Index
    three pillars: Low-Carbon Economy, ESG Business         based solutions are one way in which we can go      decades. We have no time to waste. It’s not a
    Integration and Social Inclusion. These pillars         further in promoting economic growth and social     question of getting the wheels turning, but rather
    support the UN Sustainable Development                  innovation. Just like governmental or donation-     how fast we can drive the change. We will listen
    Goals (SDGs), demonstrating our dedication to           based programs, they can help lift people out       to our stakeholders’ concerns and continue to
    global sustainability.

                                                                                                                                                                             66%
                                                            of poverty. In particular, many regions in Asia     go forward. When we meet our stakeholders’
    What does that mean? We take action to protect          and Africa need such solutions to tackle climate    expectations, we are also meeting those of
    the environment and embrace the Paris Climate           change risks, healthcare and other issues that      our own: to work together to reach a more
    Agreement. We divested €265 million from coal           directly affect people’s standard of living.        sustainable future.                                          score on the Work Well Index
    and applied ESG criteria to our €690 billion            Our latest investment in leading microinsurance
    portfolio. We also invested €5.6 billion into           platform BIMA is one example of this. With just
    renewable energy.                                       a few clicks on their mobile phones, 24 million
    We want to keep supporting children and youth           citizens now have access to affordable insurance
    through our Encouraging Future Generations              and healthcare. Our investment will allow the

                                                                                                                                                                             60%
    Program, too. So far, we have distributed €250,000      company to deliver against their ambition to
    through the Social Innovation Fund to five of our       reach one billion customers. Digital technologies   Chairman of the Board of Management,
    operating entities. The SOS Children’s Villages         enable faster, simpler solutions that strengthen    Allianz SE
                                                            local communities.                                                                                               of business segments measuring
    have been heartily supported by our employees                                                                                                                            NPS either performed significantly
    via the 2017 Allianz World Run – with tailor-made                                                                                                                        above market average or achieved
    emergency preparedness packs amounting to a                                                                                                                              loyalty market leadership
    total value of €500,000.
    We will not stop there, either. Our finger is on
    the pulse of sustainability market standards to
    identify potential challenges, listen to stakeholder
    expectations, and stay ahead of trends. We
    constantly monitor customer needs, regulatory
                                                                                                                                                                             No. 1
                                                                                                                                                                             In 2017, Allianz Group took the leading
    developments and scientific advances to be                                                                                                                               position in the DJSI among all rated
    involved in all important developments in this field.                                                                                                                    insurance companies, scoring 87
                                                                                                                                                                             out of 100 points
RESPONDING TO TOMORROW'S CHALLENGES - ALLIANZ GROUP SUSTAINABILITY REPORT 2017
7   Allianz Sustainability Report 2017   Overview   SDG contributions   Managing sustainability   Inside Allianz   About the report

    OUR CONTRIBUTION TO

    THE UNITED NATIONS
    SUSTAINABLE
    DEVELOPMENT
    GOALS
RESPONDING TO TOMORROW'S CHALLENGES - ALLIANZ GROUP SUSTAINABILITY REPORT 2017
8   Allianz Sustainability Report 2017                                 Overview                   SDG contributions             Managing sustainability    Inside Allianz               About the report

    PEOPLE, PLANET AND PROSPERITY:
    EMBEDDING THE SDGS ACROSS
    OUR GLOBAL BUSINESS
                                         Since their launch, the commitments and targets         In 2017, we took a step further when we analyzed,        and further integrate the global goals and targets
                                         that comprise the UN Sustainable Development            in more detail, the SDGs to which we contribute          into our future strategic approach. We see this
                                         Goals (SDGs) have come to represent a global call       the most. We used the recently published                 year’s mapping as a next logical step as we look
                                         to action. Stakeholders in all countries to address     “Business Reporting on the SDGs: An Analysis of          to elaborate further on how we can contribute
                                         some of the greatest barriers to sustainable            the Goals and Targets”, which aims to provide            even more by positioning the SDGs as a driver
                                         development facing society. As the role business        the first step towards uniform and comparable            for the future.
                                         must play in helping to achieve the SDGs has            reporting by businesses on their contribution
                                                                                                                                                          While we discuss four priority SDGs, our actual
                                         become clearer, the goals have developed into an        to and impact on the SDGs. We collected input
                                                                                                                                                          contribution is much wider. We have tried to
                                         increasingly important tool for making the impacts      from our businesses and experts to map strategic
                                                                                                                                                          capture this by highlighting the links with the SDGs
                                         of companies on society more transparent.               projects, targets, policies, and disclosures against
                                                                                                                                                          throughout all the chapters of our report.
                                         However, we still see room for improvement.             the business indicators of the SDGs. It was a
                                         Companies are learning and developing their             challenging exercise which took several iterations
                                         approaches as they work to translate the goals          – mainly as the SDGs are so interrelated and
                                         – which were originally intended to support             dependent on each other, making prioritization
                                         countries’ sustainable development – into tangible      difficult if not, at times, impossible! The outcome
                                         business activities. In order to develop such           of our intense discussions and deliberations
                                         approaches, we would like to see all stakeholders       enabled us to identify the four SDGs to which we
                                         – from both the private and public sector – coming      believe Allianz makes a particularly significant
                                         together to develop comprehensive strategies for        contribution. On the following pages, we describe
                                         the SDGs.                                               the projects and activities that best illustrate the
                                                                                                 ways we contribute to these SDGs.
                                         As we progress on our journey, last year we carried
                                         out our first strategic exercise to map Allianz’s key   Going forward, if using the SDGs to support global
                                         activities and targets to the SDGs. This gave us an     sustainable development becomes the goal for all         Katharina Latif
                                         initial overview of the goals we broadly contribute     actors, it could provide the first globally-consistent
                                                                                                                                                          Head of Corporate Responsibility,
                                         to. You can find the results on page 11 of our          framework for all to deliver positive change.
                                                                                                                                                          Allianz SE
                                         2016 report.                                            We are also considering how we can better align
                                                                                                 our CR strategy with the SDGs
RESPONDING TO TOMORROW'S CHALLENGES - ALLIANZ GROUP SUSTAINABILITY REPORT 2017
9    Allianz Sustainability Report 2017                                 Overview               SDG contributions   Managing sustainability     Inside Allianz       About the report

    HOW OUR STRATEGY
    ALIGNS WITH THE SDGs
    The global SDGs are a universal call to action to end poverty, protect the planet and improve global                                     “Given the nature and size of our
    political and economic stability. Through 17 bold commitments and 169 targets, the goals seek to drive                                    business, we have the opportunity
    global action across social, environmental and economic development issues up until 2030.                                                 to impact many of the targets set
    Each goal is interlinked and they influence each other in complex ways. Through a detailed analysis,                                      by the SDGs. However, one of the
    we have identified the four SDGs to which we currently contribute, and impact on, the most.                                               complexities of the SDGs is their
                                                                                                                                              interconnectedness. You cannot
                                                                                                                                              single out one or two goals to which
                                                                                                                                              you solely contribute. In addition,
                                                                                                                                              our business activities and
                                                                                                                                              relationships are interconnected
      Low-carbon                                                                                                                              as well, which makes impact
       economy                                                                                                                                measurement challenging, be it
                                                                                                                                              positive or negative.”

           Social
         inclusion

                                                                                                                                              Sabia Schwarzer
                                                                                                                                              Head of Group Communications
                                                                                                                                              and Corporate Responsibility,
                                                                                                                                              Allianz SE
         Business
       integration
RESPONDING TO TOMORROW'S CHALLENGES - ALLIANZ GROUP SUSTAINABILITY REPORT 2017
10    Allianz Sustainability Report 2017                                                     Overview              SDG contributions   Managing sustainability   Inside Allianz   About the report

     HOW WE CONTRIBUTE

     Allianz is one of the strongest financial communities   We are focused on supporting low-income
     in the world. We provide employment for over            customers in Asia, Africa and South America to
     140,000 people. Some 88 million customers in more       close the gap for people who need access to low
     than 70 markets rely on our insurance products and      cost financial services. Digitalization is enabling
     funds for their financial wellbeing. In 2017, we paid   more and more people to access insurance as we
     income taxes of more than 2.9 billion Euro, thereby     embrace the opportunities through our Digital by
     enabling public spending in education, housing,         Default strategy, implemented with our Renewal
     medical care, and other vital services.                 Agenda 2015.
     By the very nature of what we do – protecting           But it’s not just through our core business that we
     people and businesses against risks – we                contribute to sustainable economic growth; we are
     contribute to our customers’ long-term financial        also focused on breaking down barriers to social
     wellbeing and stabilize local economies.                inclusion for a better, more productive future.
     Insurance is one of the key ways by which we            That is why, in 2016, we made social inclusion
     limit the impacts of climate risks and compensate       one of the three priorities of our Corporate
     for climate-related damages. The higher the             Responsibility Strategy (see page 19).
     level of insurance coverage a country has, the
                                                             On the following pages, we highlight just a few of
     more resilient it is to extreme natural events.
                                                             the ways Allianz contributes to the four SDGs on
     Furthermore, following an extreme weather event
                                                             which we have the greatest impact.
     such as a flood or hurricane, insurance payments
     are often a fast and reliable solution to help
     victims recover quickly, preventing them from
     falling into, or deeper into, poverty.

     140,000+
     people are employed by Allianz worldwide
                                                             88mn
                                                             Allianz customers in over 70 markets
11   Allianz Sustainability Report 2017   Overview    SDG contributions          Managing sustainability    Inside Allianz               About the report

     OUR FOCUS SDGs                                                               SDG 8
                                                                                  Promote sustained, inclusive and
                                                                                  sustainable economic growth, full
                                                                                  and productive employment and
                                                                                  decent work for all.

                                                     As one of the world’s largest financial               KEY TARGETS:
                                                     services providers, enabling sustainable
                                                     economic growth is fundamental to our                 8.2 Achieve higher levels of economic
                                                                                                                   productivity through diversification,
                                                     core business and it provides a basis for                     technological upgrading and innovation,
                                                     our entire contribution to delivering the                     including through a focus on high-value
                                                     SDGs. We see this as the SDG to which                         added and labor-intensive sectors.
                                                     we contribute most, due to the nature                 8.3 P romote development-oriented policies
                                                     of our role in society.                                       that support productive activities, decent
                                                                                                                   job creation, entrepreneurship, creativity
                                                                                                                   and innovation, and encourage the
                                                                                                                   formalization and growth of micro-, small-
                                                                                                                   and medium-sized enterprises, including
                                                                                                                   through access to financial services.
                                                                                                           8.6 B y 2020, substantially reduce the
                                                                                                                  proportion of youth not in employment,
                                                                                                                  education or training.

                                                      In this chapter, we highlight just some of the       Fostering a working environment that includes
                                                      projects that contribute to SDG 8. To see more       Inclusive Meritocracy: page 59.
                                                      of our contribution to this SDG, please refer to
                                                                                                           Protecting employee rights and providing equal
                                                      the following pages:
                                                                                                           opportunities: page 63.
                                                      Integrating ESG into investments and insurance:
                                                                                                           Supporting workplace health and wellbeing
                                                      page 20.
                                                                                                           through Work Well: page 65.
                                                      Sustainable and Responsible Investments:
                                                                                                           Managing our environmental impacts to
                                                      page 36.
                                                                                                           decouple economic growth from environmental
                                                      Protecting human rights and eliminating              degradation: page 53.
                                                      modern slavery in our supply chain: page 55.
                                                      Promoting access to financial solutions for
                                                      emerging consumers: page 32.
12    Allianz Sustainability Report 2017                                          Overview                    SDG contributions          Managing sustainability      Inside Allianz               About the report

     OUR FOCUS SDGs

                                SDG 1                                                           SDG 7                                                                      SDG 13
                                End poverty                                                     Ensure access to                                                           Take urgent action to
                                in all its forms                                                affordable, reliable,                                                      combat climate change
                                everywhere.                                                     sustainable and                                                            and its impacts.
                                                                                                modern energy for all.
     Key targets:                                                       Key targets:                                                             Key targets:

     1.1 By 2030, eradicate extreme poverty for all people             7.1 B y 2030, ensure universal access to affordable, reliable           13.1 S trengthen resilience and adaptive capacity to climate-
            everywhere, currently measured as people living on                and modern energy services.                                                  related hazards and natural disasters in all countries.
            less than $1.25 per day.
                                                                        7.2 B y 2030, increase substantially the share of renewable             13.2 Integrate climate change measures into national policies,
     1.2 By 2030, reduce at least by half the proportion of men,             energy in the global energy mix.                                             strategies and planning.
            women and children of all ages living in poverty in all
            its dimensions according to national definitions.           7.3 In 2030, double the global rate of improvement                      13.3 Improve education, awareness-raising and human and
                                                                              in energy efficiency.                                                        institutional capacity on climate change mitigation,
     1.5 B y 2030, build the resilience of the poor and those in                                                                                          adaptation, impact reduction and early warning.
            vulnerable situations and reduce their exposure and
            vulnerability to climate-related extreme events and other
            economic, social and environmental shocks and disasters.

     SDG 1 aims to increase access to social                            Energy is a fundamental ingredient for delivering                        Climate change poses a major risk to the livelihoods
     protection, basic services and support for people                  almost all of the SDGs, but it is also a major contributor               of millions of people worldwide, and acute weather-
     harmed by climate-related and other economic,                      to climate change. The focus must be on increasing the                   related risks seen in 2017 include hurricanes, droughts,
     social and environmental shocks and disasters.                     share of sustainable energy and driving improvements                     floods and wild fires. We anticipate the risks of climate
     Increasing universal access to financial services,                 in energy efficiency.                                                    change as an investor, and we protect and care for our
     including microinsurance, saving and equity is key to                                                                                       customers through our insurance products, while using
     eradicating poverty – especially among emerging                                                                                             our assets and insurance expertise to enable the
     consumers in low-income countries.                                                                                                          transition to a low-carbon economy.
13    Allianz Sustainability Report 2017                                              Overview                SDG contributions              Managing sustainability    Inside Allianz               About the report

     OUR CONTRIBUTION TO THE SDGs

                                           KEY            peers through the Insurance Development                                 KEY                                  consumer segment. To make the most of the
                                           TARGETS:       Forum to pilot insurance approaches that                                TARGETS:                             opportunities, we partner with digital businesses
                                           1.5 13.1       allow governments in countries vulnerable to                            1.1 1.2                              to distribute and expand our reach, for example
                                                          climate change to provide better shelter to their                                                            through mobile phone-based insurance
                                           13.3           population. We are also participating in the                            1.3                                  solutions. In 2017, Allianz became the largest
                                                          Munich Climate Insurance Initiative to make                                                                  strategic shareholder of BIMA, the leading digital
     PROTECTING THE MOST VULNERABLE                       more microinsurance solutions market-ready for      INCREASING ACCESS TO FINANCIAL                           microinsurer whose award-winning tech platform
                                                          Caribbean countries. Furthermore, through our       SERVICES IN LOW-INCOME COUNTRIES                         provides low-income families with access to
     We actively support the InsuResilience initiative    partnership with the German Corporation for                                                                  innovative insurance products in 14 emerging
     of the G7, which aims to provide climate risk        International Cooperation (GIZ), we are setting     We have more than 58 million customers in                markets worldwide.
     insurance to additional 400 million vulnerable       up a program that aims to reduce flood risk for     emerging markets, but many customers in
     people by 2020. As a responsible corporate           municipalities in Ghana and for small and medium    these countries are still severely underinsured,               Find out more
     citizen, we are involved in several initiatives to   enterprises in Morocco.                             as well as underserved in other areas such                     on page 32
     share our expertise and help manage climate                                                              as savings, investments and health services.
     risks. For example, we are working with our

                                                                                                                                                                       14
                                                               Find out more                                  Since traditional financial services infrastructure
                                                               on page 33
                                                                                                              is not established in many markets, digitalization
                                                                                                              offers a major opportunity for our emerging
                                                                                                                                                                       emerging markets now have access to insurance
                                                                                                                                                                       products thanks to BIMA
14    Allianz Sustainability Report 2017                                                Overview                SDG contributions           Managing sustainability    Inside Allianz               About the report

     OUR CONTRIBUTION TO THE SDGs

                                           KEY             our experience as a microinsurer and reinsurer                                          KEY                Future Generations Award aims to empower
                                           TARGETS:        in agriculture to bring climate risk insurance                                          TARGETS:           entrepreneurs who want their businesses to deliver
                                           1.5 13.1        mechanisms to vulnerable regions. Our solutions
                                                           compensate farmers for lost proceeds from crops
                                                                                                                                                   8.6 1.1            a societal impact on future generations, by giving
                                                                                                                                                                      them a chance to learn about developing and
                                           13.3            or livestock, and recover financial losses caused                                                          attracting investment. In addition, our global
                                                           by natural hazards, enabling them to respond                                                               partnership with SOS Children’s Villages is focused
     IMPROVING FOOD SECURITY RESILIENCE                    quickly and build resilience to climate change      ENCOURAGING FUTURE GENERATIONS                         on supporting young people to build resilient
                                                           impacts. For example, we are working on a                                                                  future generations. We also support a range of
     To provide for the growing population, global food    new crop insurance approach that uses remote        Social inclusion is one of the most important          other initiatives, including My Finance Coach, a
     production will have to double in the next fifty      sensing technologies.                               challenges society is facing. To amplify our           non-profit initiative that aims to improve financial
     years. However, the impacts of climate change on                                                          contribution, we launched Encouraging Future           literacy among 10 to 16 year-olds.
     agriculture are far-reaching and complex. In some          Find out more                                  Generations – our social inclusion approach
     places, warmer temperatures and growing                    page 33                                        that targets better opportunities for young                 Find out more
     seasons may be a benefit. In others, the increasing                                                       people worldwide. Our Social Innovation Fund                on page 68
     risks of drought and extreme weather will have                                                            provides incentives for operating entities to
     devastating consequences. We are building on                                                              enhance their reach to youth, while the Allianz
15    Allianz Sustainability Report 2017                      Overview   SDG contributions   Managing sustainability   Inside Allianz   About the report

     OUR CONTRIBUTION TO THE SDGs

                                            KEY
                                            TARGETS:

                                            1.5 7.1 7.2
                                            7.3 8.3 13.3

     INVESTING IN THE LOW-CARBON
     ECONOMY
     We are committed to supporting the transition to
     the low-carbon economy by using our leverage
     as one of the world’s largest institutional investors.
     We focus the climate-related investments of our
     proprietary assets on energy-efficient real estate,
     renewable energy projects, funds and green
     bonds, reducing climate emissions and creating
     sustainable economic growth. Additionally,
     Allianz offers several renewable energy funds
     for institutional investors who want to invest in
     low-carbon infrastructure.
     We also invest in low-carbon projects and
     initiatives which generate certificates that
     we use to offset our carbon footprint. One of
     our continued investments is in Rimba Raya.
     We began investing in this REDD project in
     Borneo, Indonesia, in 2013, helping to prevent
     rainforest deforestation and avoiding CO2-
     release. Our investments in Kenya, the Democratic
     Republic of Congo and Indonesia not only help
     us to offset our carbon footprint, but also
     contribute to protecting biodiversity and
     support local communities.

          Find out more
          on page 54
16    Allianz Sustainability Report 2017                                                    Overview                 SDG contributions            Managing sustainability    Inside Allianz               About the report

     OUR CONTRIBUTION TO THE SDGs

                                            KEY             Management Strategy. This operational global                                                 KEY                their transition to the low-carbon economy.
                                            TARGETS:        incident management system is designed to                                                    TARGETS:           Group experts from Allianz Climate Solutions and
                                            1.5 13.1        improve preparedness and response operations
                                                            across SOS Children’s Villages. Using satellite-
                                                                                                                                                         8.6 1.1            Allianz Re work with local entities to develop best
                                                                                                                                                                            practice and increase local capacity. A dedicated
                                            13.3            based early warning and damage mapping                                                                          underwriting framework, pricing tools, and a
                                                            services, data, early warnings, incident reports                                                                robust referral process have been created to
     IMPROVING DISASTER RESILIENCE                          and emergency maps are linked to an online              INSURING THE LOW-CARBON ECONOMY                         support local business growth. In addition, a
     AND RESPONSE                                           emergency management platform named                                                                             Renewable Energy Desk connects local entities
                                                            Resilience360 (R360). This platform was                 As the low-carbon economy expands, the global           with expert account managers at group-level.
     Our global partnership with SOS Children’s             originally developed by DHL, and SOS-CVI is             energy system is changing rapidly, bringing with
     Villages International (SOS-CVI) includes                                                                      it complex challenges. Renewables are gaining a         In Turkey, new products already rolled out include
                                                            the first global humanitarian organisation to
     turning facilities into safe disaster hubs for local                                                           meaningful market share in many countries and           a performance guarantee and comprehensive
                                                            implement it. R360 sets a milestone with regard
     communities in the event of a catastrophe                                                                      building and operating renewable energy plants          certification services for solar and wind projects
                                                            to translating early warning into early action. It is
     through customized Emergency Preparedness                                                                      involves multiple stakeholders and poses different      over 20 megawatts.
                                                            now being rolled out to national and regional
     (EPREP) packages. In 2017, we launched                 SOS-CVI offices.                                        risks at the different stages.                          In Africa, we are working with the GIZ and the
     and funded the global SOS Disaster Risk                                                                        Launched in 2017, the initiative SURE (Scaling          German Federal Ministry for Economic Affairs
                                                                 Find out more                                      Up Renewable Energy) aims to further solidify           and Energy to bring German renewable energy
                                                                 on page 69
                                                                                                                    Allianz’s position as the global “go-to” provider       solutions to African markets. Roll-out has begun
                                                                                                                    of insurance for renewable energy projects and          in Nigeria, Ghana, Kenya, and Morocco where
                                                                                                                    infrastructure. It is designed to help bring our        we have dedicated local renewable energy
                                                                                                                    proven renewable energy insurance competences           champions in place to adapt standard products
                                                                                                                    at group-level to fast developing growth markets        and services to meet local needs.
                                                                                                                    – such as Turkey, Australia, and Africa – to support

                                                                                                                                                                                 Find out more
                                                                                                                                                                                 on page 33
17    Allianz Sustainability Report 2017                 Overview             SDG contributions   Managing sustainability   Inside Allianz   About the report

     MANAGING
     SUSTAINABILITY
     Number 1 insurer in the Dow
     Jones Sustainability Index

     87/100
     Allianz scored 87 out of 100
     points on the DJSI

     The Dow Jones Sustainability
     Index (DJSI) ranks companies
     according to environmental,
     social and governance (ESG)
     criteria, assessing their strategy                               “We are extremely proud of this result.
     and performance.                                                  We started with the integration of ESG
                                                                       factors into our business early on and
     In 2017, Allianz took the leading                                 have continuously improved. We also set
     position of the insurance sector,                                 ambitious goals for the coming years and
     scoring 87 out of 100 points.                                     would like to contribute to the achievement
                                                                       of the Sustainable Development Goals.”

                                           Oliver Bäte
                                           Chairman of the Board of Management,
                                           Allianz SE
18    Allianz Sustainability Report 2017                                                     Overview                      SDG contributions                      Managing sustainability          Inside Allianz                    About the report

     OUR RENEWAL
     AGENDA
     OUR STRATEGY AND APPROACH                               what we want to achieve and how we will work
                                                             together to deliver our goals across five key
     The Allianz Group seeks to position itself as one       areas. Our Corporate Responsibility Strategy
     of the world’s most trusted financial services          supports the business in delivering the company's
     provider and a global sustainability leader.            goals in a way that positions us as one of the most
     That means creating sustainable economic                responsible insurance and investment
     value through a long-term approach to                   businesses in the world.
     corporate governance, social responsibility and
     environmental stewardship.                              In 2017, we continued to develop and implement
                                                             our strategic approach, building on the five
     We want our stakeholders to know that Allianz is        pillars of our success – integrity, financial strength,
     a financially solid and trustworthy company that        technical competence, operational excellence
     embraces sustainable business as good business,         and talent base.
     and whose heart beats for its customers and
     its employees. To achieve this, we are adapting
     our business strategy with the Renewal Agenda.
     It drives our company forward by setting out

                                                                                                                           TARGETS
      OUR RENEWAL AGENDA
                                                                                                                           To deliver our Renewal Agenda, we have set clear targets for 2018:
      Five mutually reinforcing levers…
                                                                                                                           Annual Earnings per Share                      Total Return on
       TRUE CUSTOMER                 Make superior customer experience the top priority for all                            (EPS) growth of                                Equity (RoE1) of                          At least

                                                                                                                           5%                                             13%                                       75%
       CENTRICITY                    our actions.

       DIGITAL BY                    Move from selected leading assets to become ‘Digital by
                                                                                                                           on average from                                                                          of our businesses to be
       DEFAULT                       Default’ everywhere.                                                                  2016 to 2018                                                                             rated by their customers as
                                                                                                                                                                                                                    Loyalty Leader in terms of
                                                                                                                                                                                                                    Net Promoter Score
       TECHNICAL                     Create superior margins, innovation, and growth through
       EXCELLENCE                    best talents and state-of-the-art skills.
                                                                                                                           Increase our Inclusive
       GROWTH                        Systematically exploit new sources for profitable growth.                             Meritocracy Index (IMIX) to
       ENGINES
       INCLUSIVE                     Reinforce a culture where both people and performance matter.
                                                                                                                           72%                                            100%
                                                                                                                                                                          Share of newly launched
       MERITOCRACY                                                                                                                                                        digital products

                                                                                                                       1
                                                                                                                           Excluding unrealized gains/losses on bonds, net of shadow accounting.
19   Allianz Sustainability Report 2017                                Overview                 SDG contributions                Managing sustainability       Inside Allianz           About the report

     OUR CORPORATE
     RESPONSIBILITY STRATEGY
     Our Corporate Responsibility         MATERIALITY
     Strategy ensures we manage           In 2016, we re-assessed our material issues and
                                          refocused our strategy (see page 7–9 of our
     our sustainability-related           Group Sustainability Report 2016). The perceived
     risks and opportunities. It          most important megatrends and risks that
                                          Allianz is able to address through its solutions
     drives performance across the        and Corporate Responsibility Strategy are, in
     sustainability issues that are       particular: climate change and environmental
     most important to our business       issues, such as natural catastrophes; personal
                                          customer safety, including data security risks; and
     strategy and our stakeholders.       societal issues, such as safety and human rights.
     We are working to better align       We organize our strategy around three focus
                                          areas, through which we respond to our material
     our Corporate Responsibility         issues (the issues that are perceived as vital
     Strategy with our Renewal            for business success and sustainability by our
                                                                                                    OUR FOCUS AREAS
                                          stakeholders – see across). These three focus
     Agenda and on ensuring CR            areas shape what we deliver through the five
     implementation throughout            key roles we play in society.
     the group.                                                                                            Low-carbon                                    Social                            Business
                                                                                                            economy                                    inclusion                         integration

                                                                                                    Using our roles as an Insurer              Using our roles as an Insurer,    Managing material ESG risks
                                                                                                    and Investor to help manage                Employer and Committed            and seizing ESG opportunities,
                                                                                                    the risks arising from climate             Corporate Citizen to contribute   while embedding compliance,
                                                                                                    change and to promote the                  to more inclusive societies.      responsible sales, transparency
                                                                                                    low-carbon economy.                                                          as well as data protection and
                                                                                                                                               Encouraging Future
                                                                                                                                                                                 privacy across all areas of
                                                                                                    Our Climate Change Strategy                Generations is our new social
                                                                                                                                                                                 our business.
                                                                                                    lies at the heart of our business          inclusion program that is
                                                                                                    model that aims to protect                 promoting inclusion of young      Our global ESG Framework
                                                                                                    people and businesses                      people worldwide.                 ensures ESG integration in all
                                                                                                    from risk.                                                                   our insurance business and
                                                                                                                                                                                 investments of proprietary
                                                                                                                                                                                 assets.

                                                                                                          For more information                       For more information              For more information
                                                                                                          see page 22                                see page 68                       see page 21
20    Allianz Sustainability Report 2017                                                 Overview                     SDG contributions                 Managing sustainability                Inside Allianz                          About the report

     ESG APPROACH
                   We aim to lead our industry on integrating ESG        OUR INTEGRATION APPROACHES AND PROCESSES                                    ESG PROCESSES ACROSS ALLIANZ BUSINESS LINES
                   into our insurance and investment businesses
                   as part of our everyday decision-making.              For property and casualty underwriting (P&C) and unlisted                                                                                                           Investment

                   We have developed multiple instruments                investments we systematically integrate ESG through our ESG
                                                                                                                                                     ESG Processes                                                 Insurance           Listed      Non-Listed
                   that allow us to integrate ESG concerns in our        referral process and guidelines for sensitive business areas.
     underwriting, investment and asset management activities.           Each transaction is screened at the local level to identify                 ESG Referral Process
     All our ESG integration activities are implemented through          potential ESG concerns. When a risk is identified, the local entity
                                                                         refers the risk to the appropriate group-level ESG function,                ESG Sensitive Business Guidelines
     group-wide corporate rules on risk management, underwriting
     and investment.                                                     which assesses the ESG risk in more detail.                                 Sensitive Countries List

     In 2017, we ran a consultation with our local and global            In 2017, our ESG functions conducted 583 ESG assessments
                                                                                                                                                     ESG Scoring Approach
     operating entities to better understand how we can continue         based on the guidelines (2016: 508 assessments). In 44.9% of
     to improve the ESG screening processes. As a result, the next       cases, the assessment led to a transaction being approved.                  Engagement and Dialogue2
     generation of ESG guidelines enters into force in 2018.             48.4% were approved following certain mitigation measures or
                                                                         conditions being put in place, and 6.7% were declined on ESG                ESG Exclusion Policies
                                                                         grounds or not pursued by the business (see details on page 84).            Asset Manager Mandating, Selection and Review

                                                                                                                                                 2
                                                                                                                                                     Included investment engagement as an asset owner as well as insurance-based risk dialogues.

      What is ESG                                              OUR ESG REFERRAL PROCESS
      Environmental, social and governance (ESG)
      topics are extra-financial factors which can be                                                        Sensitive
                                                                   Planned                                                          No further
      influenced by, and can influence, our business             insurance/                                  business                  action
                                                                                       Business               sectors/
      activities. Examples of ESG risks include human            investment           unit screens                                   required
      rights violations, illegal logging activities or           transaction                                 countries      No        for ESG
                                                                                                               apply?
      severe corruption allegations. ESG factors
      also present opportunities such as increased                                                                   Yes                                                                                                   ESG
      requirements for renewable energy due to the                                                                                         No                                                                            approval
      energy transition.
      ESG risks can develop into legal risks,                                                             Business unit                              Yes                                                                                          ESG
                                                                                                                                                                  Referral to                                                                conditionally
                                                                                                         applies relevant
      reputational risks, supply chain and business                                                       ESG Sensitive             Potential                    appropriate                                                              approved subject to
      disruption risks, quality risks, operational                                                                                                               ESG center of                       ESG                                  further information
                                                                                                            Business                 ESG risk                                                     Assessment                                 or mitigation
      risks, human rights risks, financial risks, and/                                                                              detected?                    competence
                                                                                                            Guideline                                                                                                                          measures
      or investment risks for Allianz, its customers
      and/or its invested companies. We therefore
      manage these risks diligently through
                                                                                                                                                                                                                       Declined for
      various instruments.                                                                                                                                                                                             ESG reasons
21    Allianz Sustainability Report 2017                             Overview               SDG contributions              Managing sustainability   Inside Allianz   About the report

     ESG APPROACH
     Allianz ESG Scoring approach
     For ESG integration in listed
     assets, we rolled out the ESG
     Scoring approach across all
     proprietary portfolios in 2017.
     The approach enables us to
     better manage ESG risks and
     opportunities in our proprietary
     portfolio. It expands the
     coverage of our ESG framework
     and allows us to systematically
     integrate ESG across all our
     asset classes (see page 36).

                                           In 2017, we developed a systematic approach      Additionally, our asset managers, Allianz Global
                                           to drive engagement with selected investee       Investors (AllianzGI) and the Pacific Investment
                                           companies that have a low ESG performance.       Management Company (PIMCO), have continued
                                           Through collaboration, we address material ESG   to expand their ESG capabilities and product
                                           risks and concerns, build understanding and      offerings for third-party clients throughout 2017.
                                           ultimately drive change and ESG improvements.    For additional details see our section on ESG in
                                                                                            asset management on pages 36–38.
                                           Other tools we use to integrate ESG into
                                           our investment processes include: ESG            We published the second edition of the Allianz ESG
                                           investment exclusions; asset manager selection   Integration Framework, which further increases
                                           and monitoring with ESG criteria in mind;        transparency around our internal processes
                                           sustainability-themed investments such as        and guidelines related to our ESG approach.
                                           renewable energy, green real estate, and green   The updated version provides additional details
                                           bonds; and regular dialogue and exchange         on the ESG scoring approach and our approach
                                           with peers, regulators and internationally-      to capturing ESG opportunities.
                                           recognized NGOs.
                                                                                                 Please find further information on the
                                                                                                 Allianz ESG Integration Framework here.
22    Allianz Sustainability Report 2017                                             Overview                SDG contributions   Managing sustainability   Inside Allianz   About the report

     CLIMATE CHANGE STRATEGY
     We are committed to taking                           PROMOTING CLIMATE CHANGE
     a leading role in tackling the                       TRANSPARENCY: THE TASK FORCE
     climate challenge. This means                        ON CLIMATE-RELATED FINANCIAL
     managing emissions from                              DISCLOSURES (TCFD)
     our operations, as a carbon-                         We strongly believe that, for customers and
     neutral company, and using our                       investors to be able to make informed decisions,
                                                          companies must report comprehensively on how
     leverage as one of the world’s                       they tackle dominant global long-term trends,
     largest institutional investors                      such as climate change. We’ve advocated for
                                                          greater transparency and reporting on climate
     and insurers.                                        change risks by companies for a number of
                                                          years. As such, we strongly support the 2017
     Allianz Group has had a Climate                      recommendations of the TCFD, which aim to
     Change Strategy in place                             provide guidelines for consistent disclosure
     since 2005.                                          of climate-related risks and opportunities by
                                                          companies to give meaningful information to
     The strategy aims to encourage solutions for         their stakeholders.
     tomorrow’s climate:
                                                          In June 2017, Oliver Bäte, along with other CEOs
     1. We anticipate the risks of a changing climate    of leading companies, signed the Statement of
         for our business.                                Support for the TCFD Recommendations and
     2. We care for the climate-vulnerable.               called for an improved disclosure across sectors
                                                          and regions. We report on climate-related
     3. We enable the low-carbon transition.              risks and opportunities based on the TCFD-
     The identification and management of risks and       framework and our disclosure can be found on
     opportunities resulting from climate change are      page 86–89.
     part of our overall business strategy. Measures we   We are encouraging other companies –
     take include developing and adjusting financial      within our sector and beyond – to step up
     products and services, improving decision-making,    and improve their disclosure. We do this, for
     policies and processes, setting targets, managing    example, through our memberships in the
     our operational climate footprint, and engaging      B-Team, the World Economic Forum Alliance
     with internal and external stakeholders.             of CEO Climate Leaders, the UNEP FI, and the
     Our strategy is regularly updated and will be        Portfolio Decarbonization Coalition. Our other
     aligned with the recommendations developed by        efforts include working with the European
     the G20 Financial Stability Board’s Task Force on    Bank for Reconstruction and Development to
     Climate-related Financial Disclosures (TCFD).        bring forward the strategic assessment and
                                                          management of climate risks and opportunities.
23    Allianz Sustainability Report 2017                                                                  Overview    SDG contributions               Managing sustainability         Inside Allianz                   About the report

     CORPORATE RESPONSIBILITY
     GOVERNANCE
     Strong corporate governance                            Dr. Günther Thallinger
                                                            Member of the Board of Management of Allianz                                                        CR GOVERNANCE STRUCTURE
     is pivotal to our sustainability                       SE since 1 January 2017 with responsibility for
     approach and is one of our                             Investment Management; member of the Group
                                                                                                                                                                 Corporate Responsibility
                                                            ESG Board since 1 January 2017; Chair of the
     most important material issues.                        Group ESG Board as of 1 January 2018.                                                                     department
     Established in 2012, the Group ESG Board is            Jacqueline Hunt
     the highest governing body for sustainability-         Member of the Board of Management of
     related issues. It consists of three Allianz SE        Allianz SE since July 2016, responsible for Asset
     Board members and several department heads.                                                                                    Board-level                    Group-level functional                       Global lines and
                                                            Management and US Life Insurance; member of
     They meet quarterly and are responsible for            the Group ESG Board since 1 July 2016.                                  committees                         departments                               local entities
     ensuring ESG integration across all business lines
     and core processes dealing with insurance and          Giulio Terzariol
     investment decisions. Key topics of focus in 2017      Member of the Board of Management as                                          Examples:                              Examples:                              Examples:
     included implementation of the recommendations         of 1 January 2018, with responsibility for the                           Group ESG Board                 Risk management, Compliance,                      Global Lines:
     of the TCFD (see pages 22 and 86–89) and               Finance, Controlling and Risk Management                         Group Finance and Risk Committee            Investor Relations, HR,             Allanz Global Investors, PIMCO,
     development of a more systematic approach to           functions; member of the Group ESG Board as of                                                                                                       Allianz Global Corporate
                                                                                                                              Group Underwriting Committee             Investment Management,                   & Speciality, Euler Hermes
     investor engagement (see page 38).                     1 January 2018.
                                                                                                                                                                                Procurement,                     Local operating entities:
                                                            Functional leads that are part of the Group ESG                                                                 Communication                  e.g. Allianz Seguros (Brazil), Allianz
     The Group ESG Board also takes ownership of
                                                            Board include representatives from: Head of                                                                                                          Turkey, Allianz Germany
     corporate responsibility and climate-related
                                                            Corporate Responsibility; Head of Communications;
     topics, and leads on associated stakeholder
                                                            Head of Risk; Head of Compliance; CFO Allianz
     engagement. Functional departments provide
                                                            Investment Management SE; CEO AGCS3 (as of
     regular updates on sustainability issues directly to
                                                            January 2018), Head of Emerging Trends and
     the Group ESG Board.
                                                            ESG, AGCS; and Managing Director ACS4 (until             CORPORATE RESPONSIBILITY                                       The Head of Group Communications and
                                                            31 December 2017).                                       MANAGEMENT                                                     Corporate Responsibility, reports directly to the
     THE GROUP ESG BOARD CONSISTS OF:                                                                                                                                               CEO of Allianz SE. This ensures a close alignment
                                                            In addition to the Group ESG Board, several              The Corporate Responsibility department is                     with the CEO’s agenda.
     Dr. Axel Theis Member of the Board of
                                                            committees play an important role in our decision-       responsible for the strategic framework that drives
     Management of Allianz SE since 2015 with                                                                                                                                       Allianz Climate Solutions – our center of
                                                            making processes:                                        all group-wide sustainability activities. Its scope
     responsibility for Global Insurance Lines and                                                                                                                                  excellence for climate change, with a focus
     Anglo Markets; member of the Group ESG Board           Group Finance and Risk Committee: oversees               includes managing CR governance and fulfilling
                                                                                                                     external reporting and rating requirements.                    on renewable energy, and responsible for the
     from 1 January 2015 to 31 December 2017;               risk management and monitoring, including
                                                                                                                     The team also supports operating entities                      implementation of the Allianz Climate Change
     Chair of the ESG Board from 1 July 2016 until          sustainability risk. The Committee is the escalation
                                                                                                                     to effectively integrate the Group’s strategic                 Strategy – sits with Allianz Re alongside the Group
     31 December 2017.                                      point for ESG-related topics, based on analysis
                                                                                                                     sustainability approach and policies into their                Environment Office.
                                                            and deliberations within the Group ESG Board.
                                                                                                                     business processes.
                                                            Group Underwriting Committee: monitors the                                                                                    You can find out more about
                                                                                                                                                                                          Allianz Climate Solutions here.
                                                            underwriting business and its risk management,
                                                            as well as developing new underwriting policies
                                                            and strategy.
                                                            3
                                                                Allianz Global Corporate and Specialty.
                                                            4
                                                                Allianz Climate Solutions.
24    Allianz Sustainability Report 2017                                                      Overview               SDG contributions           Managing sustainability    Inside Allianz         About the report

     TRANSPARENT REPORTING
                                                                                                                                                                           “Non-financial reporting has
     REPORTING                                              DATA AND ASSURANCE                                     Carbon Disclosure Project (CDP)                          come to fulfill a multitude
     Our Strategy shapes and increases our                  To enhance the quality of our sustainability           Allianz Group supports the CDP as a responding           of purposes, making it a
     contribution towards delivering the SDGs (see          reporting and data, our full sustainability report     company and as an asset owner and asset                  challenging opportunity.
     page 9). It also reaffirms our commitments to          has been assured to a limited assurance-level          manager. We were also a founding signatory of
     the Principles of the UNGC, a voluntary initiative     by PwC since reporting year 2016. This helps to        the CDP. Allianz has been listed in the Carbon
                                                                                                                                                                            Auditing non-financial data and
     based on CEO commitments to implement 10               formalize the way sustainability is embedded           Disclosure Leadership Index from 2011 to 2015.           processes helps us to further
     universal sustainability principles in the fields of   across core functions and business units. A sample     In 2017 we achieved a B rating.                          embed sustainability across
     human rights, labor standards, environmental           of operating entities of Allianz SE are reviewed
                                                                                                                   FTSE4Good Index
                                                                                                                                                                            the organization.”
     protection and anti-corruption. We have been           by PwC on a regular basis depending on their
     a participant in the UNGC since 2002 and it is         impact on the Group’s sustainability activities.       Included since 2001, Allianz is one of the
     included in our Code of Conduct.                                                                              longstanding members of the FTSE4Good Index
     We base our approach and reporting on                       You can find the current assurance report here.   series. In the 2017 assessment, we were ranked in
     voluntary international standards and guidelines                                                              the top 3% of our sector.
     such as the GRI G4 guidelines, sustainability          RATINGS AND BENCHMARKS                                 MSCI Rating
     indices, and engagement with expert working
                                                            As we strive to be a sustainability leader
     groups such as the United Nations Environment                                                                 In 2017, Allianz once again received AAA rating
                                                            in our sector, sustainability ratings and
     Programme Finance Initiative (UNEP FI).                                                                       from MSCI ESG Research. We are one of the top
                                                            industry benchmarks provide an important
                                                                                                                   performers in our sector.
     Our annual UNGC communication on progress              opportunity to improve our performance and
     and the German Sustainability Code (GSC)               transparency. We also rely on these ratings to         Oekom Corporate Rating
     reports can be found on our website, as well as        support long-term ESG integration across our                                                                   Dr. Saskia Juretzek
     on the UNGC and GSC websites.                          proprietary investments and the responsible            Allianz has once again received Prime status
                                                                                                                   in 2017, which ranks us among the world’s best          Senior Manager Sustainability,
                                                            investment products offered to our asset                                                                       Allianz SE
     In compliance with the 2017 German                                                                            companies in our industry.
                                                            management customers.
     implementation of the EU Non-Financial
     Reporting Directive (2014/95/EU), we published         We take part in a wide range of external
     a combined separate non-financial report               assessment and benchmarking initiatives,
     alongside the Group Annual Report 2017.                including:
     The combined separate non-financial report
     is being audited by PricewaterhouseCoopers             Dow Jones Sustainability Index (DJSI)
     GmbH Wirtschaftsprüfungsgesellschaft (PwC)             Allianz has been included in the DJSI since 2000.
     and is to be approved by the Supervisory Board         In 2017, Allianz Group took the leading position
     of Allianz SE.                                         within the insurance sector, scoring 87 out of 100
                                                            points. We have been included in the DJSI with
          You can find our combined separate                top ranking positions every year since 2000.
          non-financial report here.
25    Allianz Sustainability Report 2017                                                   Overview       SDG contributions               Managing sustainability     Inside Allianz                 About the report

     STAKEHOLDER ENGAGEMENT

     OVERVIEW                                                PARTNERSHIPS FOR CIVIC                                                              OUR KEY STAKEHOLDER GROUPS
     As the global economy continues to evolve, the          ENGAGEMENT
     challenges we face as a multinational business          Our long-term partnerships are
     are diverse and complex. To respond effectively         instrumental to delivering our
     through our strategy, we need to understand             sustainability agenda.
     global trends and how they will impact on us.                                                                                 Investors                                           Customers
     We also need to understand stakeholder needs            Our strategic partners include:                             We engage with our investors to                     Feedback from our customers helps us to
                                                                                                                  communicate our sustainability strategy and           improve our products, services and processes, and
     and concerns so that they can inform our products,      SOS Children’s Villages (see page 69)               performance, enabling them to make informed                  to offer easy and adaptable solutions.
     services and approach.                                                                                      decisions about their own investments and us to                • Customer surveys and dialogues
                                                             Impact Hub collaboration (see page 71)                      understand their expectations.
     To do this, we engage with a broad range of                                                                                                                          • Learning from and sharing customer insights
                                                             German Corporation for International                             • Annual General Meeting
     individuals and organizations. The insight they                                                                                                                           • Review of financial services sector
                                                             Cooperation (GIZ)                                             • Dialogues and roadshows                                        developments
     provide enables us to focus our Corporate
                                                                                                                              • Ratings and benchmarks                   • Research and development to support product
     Responsibility Strategy, activities and reporting       International Paralympic Committee (IPC)                                                                                        innovations
                                                                                                                        • Website, Sustainability Report,
     on the right areas.                                                                                                    rating results e.g. DJSI                          • Using the Net Promoter Score (NPS)
                                                                                                                                                                                  • Allianz Risk Barometer Survey
     Besides our many commitments to international
     and national sustainability bodies and initiatives,
     our engagement activities focus on the four
     stakeholder groups who are most impacted
     by our business.

     MEMBERSHIPS AND PARTNERSHIPS                                                                                                   Society                                             Employees
                                                                                                                       Given the pace and scale of global                         We believe employees who are
     Our businesses are signatories to and members of a wide range of global sustainability initiatives          change, it is vital we work with other partners,           engaged with and committed to their jobs
     and principles, which guide us to:                                                                        governments and institutions to identify sustainable     generate long-term value for our business. To this
                                                                                                                  solutions and maximize our positive impact.           end, we continuously seek their views and respond
     • incorporate best practice sustainable development principles into our activities, products,                     • Partnerships for civic engagement                     to their ideas and concerns through:
       services and investments;                                                                                      • Thought leadership on global issues                   • The Allianz Engagement Survey (AES)
     • work with and learn from our peers through open dialogue and knowledge sharing;                                 • Panel discussions and roundtables
                                                                                                                                                                                • Employee dialogues and networks
                                                                                                                   • Foundations, donations and volunteering
     • collaborate to find solutions that address local and global challenges relevant to our industry                   • Press events, journalist surveys                     • Corporate volunteering programs
       and beyond; and                                                                                                           and roundtables
                                                                                                                          • Formal dialogues with NGOs
     • improve transparency in our own operations and across the value chain.                                                 and ESG professionals
     For an excerpt of our memberships and partnerships, please refer to page 79.
26    Allianz Sustainability Report 2017                       Overview    SDG contributions           Managing sustainability    Inside Allianz             About the report

     LOOKING
     AHEAD

 “We integrate Environmental,
  Social, and Governance (ESG)
  principles throughout our
  investment and insurance
  business by holding business
  decisions up to the light and
  asking ourselves, ‘Will this
  benefit society and our
  customers in the long term?”

     Oliver Bäte
     Chairman of the Board of Management,   We will further align         We will continue to embed our Corporate
                                                                          Responsibility Strategy and focus areas across
                                                                                                                                 On 1 January 2018, the Group’s Environment
                                                                                                                                 Office, as well as the experts for integrating
     Allianz SE                             the Renewal Agenda            all our businesses and countries to support            climate change into the business, will become part
                                            and our Corporate             consistent integration and reporting.                  of the Corporate Responsibility department.
                                            Responsibility Strategy.      We will further enhance data quality
                                                                          through external assurance and improved
                                                                          management approaches.
27    Allianz Sustainability Report 2017                 Overview             SDG contributions       Managing sustainability      Inside Allianz   About the report

     INSIDE ALLIANZ
     This section translates our work
     into five roles we play in society.
     In order to be considered a Responsible Investor,
     we will continue to integrate ESG criteria across
                                                                                             Our role as a
     our investment decisions. As a Sustainable                                              Sustainable
     Insurer, we need to continue to provide solutions
     that support sustainable development and a low-                                           Insurer
     carbon future.
     Our role as an Attractive Employer is of very                                                Page 28
     high relevance as we depend on having the best
     people in place, and keeping them motivated
     to serve our customers.
                                                            Our role as a                                                       Our role as a
     Data and privacy protection, improving                  Committed                                                          Responsible
     customer satisfaction and reducing our
     environmental impact all play a major part
                                                          Corporate Citizen                                                      Investor
     in being a Trusted Company.
     We act as a Committed Corporate Citizen to
                                                                    Page 66                                                        Page 34
     maximize our positive contribution and to create
     a more stable economy and resilient markets.

                                                                       Our role as an                         Our role as a
                                                                        Attractive                              Trusted
                                                                        Employer                               Company
                                                                              Page 56                                 Page 43
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