Allianz SE Building a sustainable future - Claremont...

Allianz SE

Building a sustainable futureSustainable Development Summary Report 2008

About this report

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Welcome to our Sustainable Development report which describes our work to buildvalue for customers, employees, shareholders and the community. In it, we summarizeour approach to sustainable development (SD) and aim to provide a balanced account ofour performance in 2007/08. Our report focuses on the issues considered most relevant,which have been identified in our ‘materiality assessment’ (see page 3).

Symbols like this describe our performanceagainst relevant GRI indicators:

Symbols like this describe our contributionsto relevant UNGC principles:

This report shows our contribution to the implementation of the ten UN Global Compact (UNGC) principles and alsodescribes our performance against the Global Reporting Initiative (GRI) indicators.

Symbols like this indicate where you can readmore about our SD initiatives and performanceon our website:

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www.allianz.com/sustainability

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http://www.allianz.com/sustainability

1Sustainable Development Summary Report 2008

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CEO Message2 Overview3 Materiality Assessment

Performance4 Goals and Performance6 Goals Table

Corporate Governance10 Corporate Governance

Core Issues12 Environmental Management14 Climate Change18 Microinsurance20 Demographic Change22 Employees

Key Indicators24 G3 Summary

Strategy8 Mission and Value

Statements

Contents

ethicalListed as one of “TheWorld’sMost Ethical Companies” bythe Ethisphere Institute

fiveOffering microinsuranceproducts in fivedeveloping countries

70%employees subject toenvironmental management

equaland fair chances forour investors

20%reduction in CO2emissions by 2012(based on 2006 levels)

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2 Sustainable Development Summary Report 2008

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Dear Reader,Welcome to our 2008 Sustainable Development reportwhich describes our work to build value for our customers,employees, shareholders and the community.

As a global risk manager operating in 70 countries andserving more than 80 million customers, a sustainableapproach is essential for our business.

Demographic change, climate change, and the breakdown ofsocial security systems as well as the opportunities providedby economic development in every region of the world areaffecting our business today and will do even more tomorrow.

Providing innovative product solutions that support ourclients in meeting today’s global challenges is an integralpart of our strategy.

Looking back, I am proud of how much we have achieved.For example, four years ago climate change was a topicleft to reinsurers. Today, we support our clients in meetingthe challenges posed by climate change, for example, byempowering them to rebuild their homes according to thehighest ecological standards. We also transfer risks to thecapital markets as shown by our disaster bonds for floodrisks. Further, by 2010 we will have invested more than€500 million in renewable energy.

We are also working in developing countries like India,Indonesia and Egypt to provide microinsurance productsthat help people and markets to develop. In this effort, wecooperate with partners including the UN Development

Program, the GTZ, CARE, and PlaNet Finance as well aslocal organizations.

This business approach has earned Allianz externalrecognition including being listed by Ethisphere as oneof the world’s most ethical companies. We aim atstrengthening this leadership role through our newAllianz4Good platform which enables our employeesto take an active role in furthering our sustainabledevelopment strategy.

The message is clear – knowledge enables innovation,innovation empowers solutions and solutions drive business.

In reading our report, you will gain a clearer picture ofhow we are part of the solution. For the first time, we haveincluded a materiality assessment in this report, identifyingthose issues with greatest relevance to our stakeholdersand our business. This assessment allows us to furtherfocus our efforts and generate the greatest long-termvalue for all of us.

Please share your comments with us. Your feedback isintegral to our success.

Michael DiekmannChairman of the Board of Management

CEO Message

“The message is clear – knowledge enablesinnovation, innovation empowers solutionsand solutions drive business.”


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Materiality assessmentThe “materiality matrix” below identifies the sustainabilityissues most relevant and their relative importance toAllianz and its stakeholders at the time of reporting. We willbe reviewing the matrix on a regular basis as stakeholders’views and the potential impact of these issues on ourbusiness change over time.

The following criteria were used in our assessment:

Issues with current or potential impact on the company:this determination involved consultation with key businessunits that analyse trends, research and business results.

Issues of significant concern to stakeholders: thisdetermination involved a stakeholder survey with themedia, political, non-governmental, scientific andeconomic communities.

1.1, 3.5G

Allianz materiality matrixWe report on all issues in bold

Investing in educationNew technologies

Climate changeInstability of capital markets

Demographic changeEconomic development indeveloping and emerging countriesHealth

Europe as a business locationSafetyChildren and teenagersCultural, political and religious conflictsPandemics and diseases

These issues are reported on as they are highly relevant to our business and stakeholders.

Business ethicsCorruption/Corporate conductDiversityConsumer protectionCustomer focus

TerrorismPrivate public partnershipsInvesting in employees

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Potential impact on Allianzincreasing highmoderate

We try to respond best to our stakeholders’ expectations, but we also see our role as raising awareness on emerging issues thathave potential strategic impact on the company but may not yet be on the agenda of our stakeholders.


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www.allianz.com/en/allianz_group/sustainability/performance_highlights/index.html

We are committed to the sustainable development (SD) goals that we set ourselves andconsistently measure their outcomes. Winning awards for our work on SD, or obtaining a highplacing in an international rating, is a welcome recognition of the effort and commitment ofAllianz employees and an acknowledgement that our actions really do speak louder than words.

Measuring our progressAllianz reports on a comprehensive set of Key PerformanceIndicators, as defined by the Global Reporting Initiative (seepage 24), which allow us and our stakeholders to benchmarkour progress. We are constantly setting ourselves new goalshelping to ensure continuous improvement in the Group’sSD values.

“ The improved total performancereflects a successful execution ofthe Group-wide strategy, ‘GlobalSolutions for Global Problems’.This is underpinned by excellentresults in all three dimensions.”Dan Oprisa, SAM Research Analyst 2007

Key achievements• Dow Jones Sustainability Index – Insurance sector leader

for two years in a row.

• Partnership with the World Wide Fund For Nature ona ground-breaking program to meet the challengeof climate change.

• Development of innovative products such as thecatastrophe bond which covers flood risk.

• Introduction of several new microinsuranceproducts serving the needs of customers in fivedeveloping countries.

• Over 70% of our employees are now covered byour Environmental Management System.

• Over €350 million invested in renewable energy to date.

• Set up of the Center of Competence on ClimateChange to develop and transfer best practice onan international basis.

Goals and Performance

http://www.allianz.com/en/allianz_group/sustainability/performance_highlights/index.html


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Awards

Our SD efforts are recognized through awards including:

World’s Most Ethical Companies 2008 – added to thelist by the Ethisphere Institute – Allianz SE

Ruban d’Honneur, Award for Corporate Sustainability –European Business Awards (EBA) 2008 – Allianz SE

Environmental Values and Resources Award – MarinCounty Awards of Excellence 2007 – Fireman’s FundInsurance Company

Deal of the Year 2007 Award – Energy Risk Magazine –Dresdner Kleinwort

Top 100 Low Carbon Pioneers – CNBC EuropeanBusiness Magazine – Allianz SE

2007 European Excellence Award – Public Relationsand Communications – Dresdner Kleinwort.

“ CSR is an area of expertise that lotsof companies are paying lip serviceto. But here is a company that said:‘This is not something that we’readding on, this is actually what wedo: CSR is a part of our business.There is no difference betweenbusiness as usual and corporatesocial responsibility.’”Phil Forrest, Chairman of the Judges,European Business Awards

“ They go well beyond legalminimums, opting instead tobring about innovative ideas thatcontribute to the public well-being.By their actions, they are forcing theircompetitors to follow suit, or fallbehind – and truly embodying thenotion that ethical business practicesare more profitable in the long run.”Alexander Brigham, Executive Directorof Ethisphere Institute

External benchmarks

G 2.10 9U

Participant since 2002

C Rating

Inclusion in CDP Leadership Index since 2005

Listed in theAdvanced SustainablePerformance Index

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Our goal is to reduce our CO2emissions by 20% by 2012(based on 2006 levels)

20%r


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www.allianz.com/en/allianz_group/sustainability/performance_highlights/goals/index.html

Goal 2008 Status Goal 2009

Performance Maintain sustainable developmentleadership in the financialservices sector

DJSI: Insurance sector leader 2006/07, and2007/08 inclusion into FTSE4Good in 2007European Business Award: Ruban d´Honneur 2008Added to the Ethisphere list of the “World’s MostEthical Companies”

Maintain sustainabledevelopment leadership inthe financial services sector

Sustainabledevelopmentreporting

Obtain external assurance Obtained external assurance for environmentaldata and management for the German Groupcompanies (more than 30% of our employees)

Matrix on the materiality of topics includedin the report

Active stakeholder engagementin our materiality assessment

Conduct materiality workshopwith key units at Allianz

Climate change Continue efforts to reduce CO2emissions toward 20% reductionby 2012 based on 2006 levelDevelop new climate changeinsurance and banking products

Continue WWF partnership

International binding program on CO2 emissionreduction launched

Implementation reached and further efforts ongoing• Set up of the Center of Competence on Climate

Change to develop and transfer best practice onan international basis, e.g. ECOmotion, greenbuilding, green mortgage

• Implementation of CER insurance in BusinessInterruption policy (AGCS) together with partner(August 2008)

• Development of three product lines for allcustomer groups:

– energy efficiency (mitigation)– weather derivatives (adaptation)– carbon offsetting (offset)Common implementation of projects underthe WWF partnership (e.g. EnvironmentalManagement System, Climate Scorecards)

Global awareness on CO2emission reduction conceptfor 80% of employeesEstablish product innovationin the market segment of“LOHAS” (Lifestyle of Healthand Sustainability)Set up virtual networksof sustainability productinnovators: leveragesynergies/best-practiceexchange across businessunits and Group companies

Research on the degree ofcorrelation between climate-friendly customers and theirrisk-aversenessResearch on the strategic impactof CO2 risks in investments(beyond case-by-caseassessments)Develop and stress-test climate-change related macro-economicand regulatory scenarios

EnvironmentalManagementSystem (EMS)

Enhance EMS to 80% ofemployees worldwideIntegrate 13 new groupcompanies into EMS

70% of employee coverage reached and22 companies implementing EMSIntegration achieved

Implementation of the CO2 concept and emissionreduction framework program

Accomplish an 80%employee coverageIntegrate 15 new Groupcompanies into EMSFirst complete Allianz globalCO2 balance sheetEnvironmental model guidelinefor real estate

Sustainableinvestment

Invest €300 to 500 million in renewableenergy between 2005–2010Assets under management:Investment in Socially ResponsibleInvestments (SRI) from 0.42% to 1.0%

More than €350 million already invested inprojects in Italy and Germany to dateShare of third-party assets under managementin SRI funds at 0.6%

Cooperation with WBCSD1 and DVFA2 in a jointinitiative to mainstream SRI criteria in thefinancial market

Invest an additional €150 millionin renewable energy projectsLook into further opportunitiesto integrate sustainabledevelopment criteriainto investmentsFurther active involvement inthe joint DVFA/WBCSD initiative

Goals: 2008 progress and 2009 goal setting

1 World Business Council for Sustainable Development2 German Association of Financial Analysts

http://www.allianz.com/en/allianz_group/sustainability/performance_highlights/goals/index.html


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Goal 2008 Status Goal 2009

Demographicchange

Ongoing monitoring and integrationinto strategy

Ongoing product development andincrease of premium volume ofexisting ones

Demographic change is a starting point forstrategic projects initiated by the Group’sdevelopment unitThe newly introduced Global Talent Managementsystem identifies and retains talents and potentialsWorkshop on longevity held in cooperationwith Humboldt University, Berlin

Publication: Ageing Societies – the strategicpositioning of financial services providersAchieved (see page 17)

Ongoing monitoring andintegration into strategy

Further workshops withinternal key units and externalresearch institutionsFurther publications to shareexpertise and best practicesOngoing product developmentand increase of premiumvolume of existing ones

Microinsurance Indonesia: Reach the target of 50,000microinsurance policy holders anddevelop new productsIndia: Develop new products andincrease customer base

Egypt: Expand the program in Egyptand into other African countriesunder consideration

Indonesia: targets achieved – 50,000 policyholders, two new products launched (Takafuland health insurance)India: targets achieved – launch of five new lifeand health products; more than 100,000 policyholders reachedEgypt: 30,000 microinsurance policy holders reachedSub-Saharan Africa: Started in Senegal in 2007, inCameroon, Ivory Coast, Madagascar, Burkina Faso,Benin, Togo, Mali, Central Africa in 2008Colombia: microinsurance distributed viasupermarket; more than 639,000 policies sold

Creation of a global Allianzmicroinsurance strategy to beimplemented by a taskforceFocus on increasing customerbase in existing markets withexisting productsFurther product development

Engagementwith Society =Allianz4Good

Launch global employeeengagement program

Continue Allianz/WWF partnership

Respond to the results of the2007 Stakeholder Survey

Continue the Allianz EnvironmentFoundation Annual Conferencein Benediktbeuren

Launch of Allianz4Good program focusingon best practices and social innovation

Development of corporate citizenship guidelinesto transform non-strategic initiatives into strategicones aligned with business

Annual survey of corporate citizenship projects,initiatives and achievements started in June 2008

Partnership with WWF to assess the carbonfootprint of ongoing Allianz investmentsThe results have been incorporated into ourmateriality analysis

Conference on biodiversity succeeded

Allianz4Good operating and bestpractice exchange ongoingStart of Social Engagement andFinance programs under theAllianz4Good brandLaunch of partnerships betweenAllianz business units and Allianzcorporate citizenship unitsEstablish regular reportingon Group-wide corporatecitizenship projects andtheir scopeContinuation of Allianz/WWFpartnershipActive integration ofstakeholders’ expectations intoour strategy and activitiesConduct a new stakeholder survey

Continuation of EnvironmentalFoundation Annual Conferenceseries

Employees Develop KPIs for employeeengagement, trust, feedback,motivation, development anddiversity from the strategicHR scorecard

Launch a report targetedto employees

Ongoing

Tracking the percentage of women in differentpositions/levels

Launch of the Corporate Responsibility magazineedition three in July 2008, aimed at employees

Regular measurement of KPIsfrom Leadership Culture Surveyand Employee EngagementSurvey on leadership, trust,feedback, developmentand diversityIncrease the number of women inthe potential pools/managementpositions in all levelsRoll out of the EmployeeEngagement and RetireeEmpowerment program underthe Allianz4Good brand

Customerresponsibility

Further strive for our 2010 goal ofLoyalty Leadership. Net PromoterScore above market average.

Over 40 OEs representing approximately 90%of Allianz GWP are implementing the CustomerFocus tools, with completion expected end 2008

Progress toward our 2010 goalof “be considered the loyaltyleader*” by our customers* as measured by Net Promoter Score


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www.allianz.com/en/allianz_group/sustainability/our_strategy/index.html

StrategyAs an international financial services provider, sustainable development is inherent to ourbusiness. We are focused on finding innovative solutions that address the local and globalchallenges our customers face, be this global climate change, safety or an ageing population.Our values and mission statement form an integral part of our Corporate Governance.

Our valuesThrough knowledge, we aim to understand and effectivelymanage risks. We will continue to take a proactiveapproach in raising awareness and gaining knowledgeabout sustainable economic, social and environmentaldevelopment. These values are integrated into our riskmanagement process and into the development ofinnovative insurance and financial products.

We aim to create innovative solutions through dialogueand partnership. We enjoy a constant dialogue with ourstakeholders and NGOs as a way of creating innovativeand enhanced solutions that meet the challenges facingour customers.

We are committed to leveraging our international andfinancial position to respond to global challenges.We provide protection for our individual and corporatecustomers around the globe against inherent financialrisks and potential loss; therefore, we act as a facilitatorof technological innovation and economic growth. Ourfinancial position enables us to contribute toward solutionsfor societal challenges such as poverty, environmentalprotection and demographic change.

We believe that our success is driven by our customers’trust and loyalty. Our customers’ trust and loyalty areinvaluable for Allianz’s long-term growth. Trust and loyaltyare founded on the personal conduct and skills of ouremployees and agents, and their commitment to createvalue for our customers. Our Code of Conduct andLeadership Values support all employees and agentsin meeting the highest level of integrity.

Mission statement

At Allianz, we strive for exceptional financial performanceand growth based on our commitment to the pursuit of asustainable world, through combining long-term economicvalue, environmental stewardship and social responsibility.

http://www.allianz.com/en/allianz_group/sustainability/our_strategy/index.html


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Sustainable development managementThe Strategy for Sustainable Development is managed bythe Allianz Group Sustainable Development Office which isnow part of a new department, Group Social Opportunities.This newly formed department aims to further integratesustainable business practices into the Allianz Group’s corebusiness activities, as well as fostering strategic corporatesocial responsibility and corporate citizenship projects.Group Social Opportunities operates under the brandAllianz4Good in supporting and networking Allianz socialinitiatives worldwide, and developing pilots on employeeand retiree engagement and financial innovation.

Working GroupThe Working Group manages and implements sustainabledevelopment initiatives and communications on a day-to-day basis. This group works with all business segmentson such initiatives, incubates product development andintegrates our sustainable development strategy intoour business.

4.8, 4.9. CSR1, INT1G

Strategy TeamOur sustainable development management is led byour international Strategy Team. It reports directlyto the Chairman of the Board of Management and theInternational Executive Committee (IEC) of the AllianzGroup, which jointly ratify international strategies andinitiatives. The Sustainable Development Strategy Teamcommunicates regularly with the Working Group which is“on the ground” implementing social and environmentalvalues at Allianz.

Sustainable Development Strategy TeamADAG, AGF, Allianz Spa, Allianz UK, Dresdner Bank, Euler Hermes,

FFIC, Allianz Global Investors, Group Communication,Group Human Resources, Group Development

• Network of internal experts from Allianz Group companies• Specialist working groups for sustainability projects including

International Environmental Management Group

Sustainable Development Core Working GroupADAG, AGF, Allianz Spa, Allianz UK, Dresdner Bank, FFIC, Allianz Global Investors

International Executive Committee (IEC) Allianz Group


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Corporate GovernanceOur goal is to become the most trusted financial services provider. We have a strongcustomer focus and measure ourselves against the highest standards of quality andperformance. It is vital, therefore, to have systems in place which ensure that we alwaysoperate with integrity. The foundations of our business are corporate governance, riskmanagement and compliance systems, all designed to help ensure that we adhere toour principles of responsible corporate behavior.

Transparent management is the basisof good corporate governanceAs a Societas Europaea*, the key features of ourcorporate constitution are:

• A two-tier board system, involving a Board ofManagement and Supervisory Board

• The principle of equal employee representationon the Supervisory Board.

Allianz is guided by internationally and nationallyrecognized standards of good and responsible corporatemanagement, including the Sarbanes–Oxley Act andthe German Corporate Governance Code.

Our reputation is one of our key assetsWe work hard to protect and further strengthen ourreputation, which all activities within the Allianz Group couldpotentially impact. Possible losses caused by reputationaldamage could be of the same magnitude or greater than thefinancial impact of a major correction in the equity marketsor a severe natural catastrophe such as a hurricane.

The role of Allianz SE is to define Group-wide standards andsupport our Group companies and business units. Allianzhas established Group-wide processes to identify, monitorand assess reputational risks. These processes apply in thecase of controversial business activities, dilemma cases andcritical environmental and social aspects of a project.

* Societas Europaea, or SE, is the term used to describe a company governed by common principles within the European Union.

www.allianz.com/en/allianz_group/sustainability/management_policies/risk_management/index.html

Fact

Corporate governance is part of every function ofour business, not just the responsibility of anyone department.

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Anti-corruptionOur business faces several challenges when it comesto corruption, as well as legal requirements governingtransparent books and records. Areas we focus on includeour growth potential in markets with a high competitionprofile and cooperation with brokers and consultants.Our response to corruption includes:

• Guidance on gifts and entertainment in ourCode of Conduct

• Separation between broker compensationand underwriting

• Anti-corruption awareness and Foreign CorruptPractices Act training program (to be rolled out).

Compliance: combining business ethics withoperational integrityIn many organizations, compliance tasks are implementedby departments such as investor relations, humanresources, or audit and risk management. Compliance isfundamental to our corporate governance framework, andto doing good business. Therefore, our compliance programaims to give all employees a framework by which theyshould operate, as well as support in day-to-day questionsof integrity.

“ Our business is only sustainable if achievedby operating with integrity, with fairness and inaccordance with regulations. The Allianz Code ofConduct sets the framework for this. Complianceplays an important role in enabling, supportingand monitoring our employees and businessin this respect.”Reinhard Preusche, Group Compliance

Code of Conduct (CoC)Our Code of Conduct sets the framework to operatewith integrity, fairness and in accordance with regulationsand encourages employees to speak out, confidentially,about behavior which contradicts our CoC. They canreport incidents to their line manager, compliance oraudit representatives.

Our Code of Conduct also covers:

• Zero tolerance for bribery or corruption

• Respect for the professionalism of our business partners

• Equal and fair chances for our investors

• Creation of transparent capital markets

• No tolerance of the misuse of confidential or price-sensitive information

• Prevention of money laundering and financing ofterrorism: no illegal activities

• Non-discrimination of employees

• Protection of natural resources.

G P1, 2, 4, 5, 6, 7, 8, 10U

www.allianz.com/en/allianz_group/sustainability/our_strategy/conduct/index.html

4.1, 4.2, 4.3, 4.8, F1, F4, CSR1, CSR4, CSR5, INT1

www.allianz.com/en/allianz_group/sustainability/our_strategy/conduct/index.html


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www.allianz.com/en/allianz_group/sustainability/climate_change_and_environment/environmental_management/index.html

Our Environmental Management System (EMS)

Our EMS conforms to the international EnvironmentalManagement Standard ISO 14001. It monitors ourenvironmental impact and creates systematic controls,helping us to reduce the impact and make cost savingsthrough a more efficient process. Key facts:

The system now covers 70% of our employees

14 new Group companies joined the program in 2007;15 more companies will join in 2008, increasing thetotal to 37 covering over 80% of employees

Dresdner Bank has been recertified accordingto ISO 14001

Environmental ManagementBeing one of the largest global financial services providers, we know that our operationshave an impact on the environment.

Although as a business our activities are not as energy-intensive as manufacturing, we nevertheless generateC02 emissions as we go about our everyday business.It is our duty to minimize this environmental impact.

Environmental policyOur environmental management program is underpinnedby our Code of Conduct and requires all Allianz employeesto take responsibility for their use of natural resources,and where possible consider sustainable developmentprinciples when working with suppliers.

Our environmental policy guides our environmentalengagement across the Group and requires companiesto meet the following criteria:

• Establish leadership responsibility for environmentalprotection

• Maintain a positive influence over their own operationalenvironmental impact

• View environmental protection as a continual learningand improvement process.

Within the policy, the role that individual employees playin our sustainable development goals is also emphasized,because whatever decisions are made at the top of thecompany mean little without the efforts made by individualemployees on a daily basis.

Goal Status 2007 Status 2008 Completion

Reduce CO2 emissions by 20% by 2012 (based on 2006 levels) Ongoing Ongoing 2012

Develop an environmental operating network across the Group to agree jointoperational principles of our Environmental Management System (EMS)

Ongoing Ongoing 2009

Implement a new environmental management team structure Approved 2007 Completed –

Increase the environmental data collected to cover 80% of all employeesGroup-wide and expand the eco-management system by integrating a further15 Group companies

Ongoing Ongoing(Board approval inApril 2008)

December 2008

Further development of Group-wide environmental reporting Ongoing Annual Update August 2008

6.9%We have reduced ourwaste per employeeby 6.9% since 2006

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Facts

Environmental footprint is defined as the impactof an organization on the environment

Our carbon footprint was 709,400 tonnes for 2007,4,214kg per employee

24% of our total emissions derive from business travel;61% of which was by car and 9% by train

Achievements

RCM is offsetting its entire travel footprint tobecome carbon neutral in business travel

The US insurance company FFIC reached a wasterecycling rate of 69%

Monitoring what we doAt Allianz, we are working to minimize our environmentalfootprint, which we measure on the basis of our consumptionof energy, paper, water, waste and C02 emissions caused bybusiness travel. This is done through our EnvironmentalManagement System through which we calculate directand indirect emissions.*

Our environmental footprintOur environmental impact derives largely from our energyconsumption and corporate travel. Our consumption ofenergy accounts for approximately 71% of our direct andindirect CO2 emissions. Business travel contributes afurther 24%. In addition, our environmental footprint coverspaper and water consumption as well as waste we dispose.

The figures below are based on the greenhouse gasemission data from all employees at fully consolidatedcompanies in which the Group’s environmental strategyis applied.

*Last year’s results were extended to include the newly integrated Allianz companies; thus, note that a refinement of the baseline was necessary and deviationsexist to last year’s report.

93,000kgAllianz Australia uses hybridvehicles in its corporate fleet,reducing CO2 emissions in2007 by 93,000kg

EN1–EN30, F1, F4, F5G P7, 8, 9U

CO2 emissions according to Greenhouse Gas Protocol

Total emissions 709,400 tonnes

Direct emissions(burning fossil fuels at our operations)

Indirect emissions(heat and electricity consumption)

Other indirect emissions(business travel, paper, water consumptionand waste disposal)

10.3%

58.6%

31.1%

Key indicators Per employee,per year

Progressfrom 2007

Total CO2 emissions 4,214kg of CO2 0.2% increase

Energy consumption

(65.5% electricity,24.7% fossil fuels, 9 % longdistance heating and 0.8%internal waste heat and otherrenewable heating energy)

30,900MJ 2.3% decrease

Paper 186kg 2.6% decrease

Water 15,074 liters 3.3% increase

Waste

(67.5% recycled,26.6% thermally treated,5.8% in landfills, 0.1% specialwaste treatment)

253kg 6.9% decrease

Business travel

(car 61%, air travel 30%,rail 9%)

5,981km 2.2% increase

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www.allianz.com/en/allianz_group/sustainability/climate_change_and_environment/climate_change/index.html

2007/08 performance

Establishment of binding CO2 targets and Groupprograms including an international CO2 emissionreduction program

Set up of the Center of Competence on Climate Changeto develop and communicate best practices

Development of three product lines for all customer groups:– energy efficiency (mitigation)– weather derivatives (adaptation)– carbon offsetting (offset)

Three-year partnership agreement signed with WWF tocollaborate on furthering our climate change strategy

Climate ChangeClimate change affects everyone – it is a global phenomenon that has an impact on the waywe live and the way in which we do business. As global risk managers, it is our business tocare about climate change as it directly affects our operations and because we have theexpertise and means to influence the way in which we all react to it.

But importantly, climate change is not only aboutmanaging risks, it is also about tapping opportunities.Evidence of this is the key role that Allianz, and the financialservices sector as a whole, are playing in growing markets –ranging from financing and insuring renewable energyand energy efficiency to trading carbon emissions.

“ We see rising claims due to natural catastrophesand have a vested interest in reducing global warming.Our industry has been at the forefront of this debatefor a long time.”Clement B. Booth, Allianz SE Board member

Climate change action planAllianz has developed a long-term strategy to addressclimate change risks and opportunities and to reduceits own environmental impact. These strategies involvestrengthening key partnerships, setting goals and targets,and developing new products and services.

In total our action plan involves 17 objectives.Key elements include:

• Reducing our carbon emissions, see page 13

• Developing products and services geared to addressclimate change

• Conducting risk management

• Leveraging climate change research

• Shaping public policy position and external commitments.

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KeyIndicators1.2, 4.13, EN5, EN6, EN18, F2G 7, 8, 9U

Managing risk and opportunityAdapting our risk management to climate changePreviously, insurers relied on past experience to determineprojected loss levels resulting from natural catastrophes.Emerging risks resulting from climate change increase thenumber of extreme weather experiences that may causedamage and have changed the way our sector mustdetermine projected loss levels. Thus, climate change-related risks are now integrated into our internalgovernance procedures and policies.

Questions remain about whether traditional reinsuranceis the best long-term answer for the threat of climatechange, which is why we are constantly investigating newways of diversifying this risk. An example is the transferof risk to the capital markets through new products likecatastrophe bonds.

The cost of climate change• In the past 30 years there has been a 15-fold increase

in weather-related claims.

• 40% of all damages that Allianz now pays out are dueto natural catastrophes.

• Between 2010 and 2019, average losses for the insuranceindustry could grow to US$41 billion per annum.

Our partnership with the World Wide Fund For NatureWe are proud of our relationship with the internationallyrespected World Wide Fund For Nature (WWF), withwhom we have worked since 2005 to analyze climate risksthroughout our business. In collaboration with WWF, wehave developed a climate change strategy to reduce ourimpact on the environment and take advantage of theopportunities that climate change can bring.

In September 2007, we signed a three-year partnershipagreement with the WWF. This will help us to quantify boththe direct and indirect effects of climate change and ensurethat the latest knowledge and research into climate changebecomes an innovative driver for our products and services.

“ Together with the WWF, I believe we can jointly get thewhole financial industry moving in the right direction.”Dr. Joachim Faber, CEO Allianz Global Investors AG

and Board member of Allianz SE

2009 goals

Reduce CO2 emissions by 20% by 2012(based on 2006 levels)

Roll-out of the CO2 emission reduction conceptto 80% of employees

Research the correlation between climate-friendlycustomers and their risk averseness

Assess the possibility of integrating the impactof CO2 risks into investment analysis (beyondcase-by-case assessments)

Develop and stress-test climate-change-relatedmacro-economic and regulatory scenarios

Partnership with WWF on ClimateChange Research and Strategy

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www.allianz.com/en/allianz_group/sustainability/climate_change_and_environment/climate_change/index.html

Allianz Climate Solutions (ACS)

Formed as a subsidiary company in August 2007, ACS ispioneering work into tailor-made climate-change-relatedproducts across all our operations. As well as acting as acutting-edge think-tank for future investment trends, mainlyinto renewable energies, ACS is coordinating climate activitiesacross the whole Group, bringing together our global expertiseinto one coherent strategy for tackling climate change.

In December 2007, the Allianz Center of Competence forClimate Change (4C) was established to respond to thegrowing need for climate-related insurance products. As wellas generating new green ideas, 4C focuses on sharing bestpractice in green product innovation across the whole Group.

By pooling their expertise and experience, ACS and 4Chave created a strong base to develop the solutions thatbusinesses need to tackle the problems of climate change.

Climate Change continued

“As professional risk managers, we want to bundleour international know-how from the fields ofinsurance, banking and asset management inAllianz Climate Solutions and offer customerstailor-made solutions based on green productsand services.”Dr. Joachim Faber, CEO Allianz Global Investors AG and

Board member of Allianz SE

Public policy position and external affiliationsAllianz is continuing to raise awareness of climate changeissues across the sector and with the public as a whole. Weare an integral part of several international climate changebodies, which help us to develop our own expertise, stay atthe forefront of new trends, and plan ahead with security.These include:

ResearchAllianz continues to make an important contribution to theglobal understanding of climate change, with wide-rangingresearch and analysis, much of it carried out in partnershipswith leading international bodies. Here are some examples.

UNEP FI Study Carbon CrunchThis briefing focuses on the contribution of the financialsector to the fight against global warming. Its key messageis to urge policy makers to adopt reduction targets beyond2012 and use this as a clear mandate for action.

Hedging Climate ChangeThis Allianz report calls for new approaches to riskdiversification in the insurance industry and specificallylooks at how to insure catastrophes caused by climatechange. As a result, capital markets now have an importantrole to play in the diversification of natural catastrophe risks,in particular through the development of catastrophe bonds.

AGI Survey on Green PortfoliosAn innovative survey of US investors released by AllianzGlobal Investors in 2008 showed that the environment isviewed as a major long-term investment opportunity.Nearly half of the 1,003 investors surveyed said that overthe next 12 months they were likely to invest in a companyor mutual fund looking to provide solutions forenvironmental problems.

Global Roundtable on ClimateChange – Call to Congress

Group Member

UN Environment ProgramMember and Chair of the UNEP FIClimate Change Working Group

2 Degrees German Businessesfor Climate Protection

Allianz Hungária – foundingmember – to increase the nationaluse of fuels produced fromrenewable base materials

Inclusion in the CDP Leadership Index since 2005

http://www.allianz.com/en/allianz_group/sustainability/climate_change_and_environment/climate_change/index.html


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Climate change sustainable products and servicesOur sustainable products and services include the following:

Product Product and service

Green BondDresdner Kleinwort and DresdnerBank Europe

A five-year European bond where returns are linked to the performance of a new index of companies investingin renewable energy and energy-efficiency projects.

EU Carbon FundAGF, France

The fund trades carbon dioxide (CO2) emission allowances. This innovative exchange mechanism is intendedto help reduce greenhouse gas emissions (GhG).

Wind Energy InvestmentsAllianz Special Investments (ASIL)

Over €350 million has been invested to date in Allianz Special Investments wind energy, of which 75% in ninewind farms in Germany and 25% in the Francofonte wind farm in Italy. All of these investments have beentransferred into the newly established Allianz Renewable Energy Partners Fund. Further investments inrenewable energy are planned.

Carbon Emissions Tradingand FinanceDresdner Bank joint venture withGazprombank Russia

Investment in primary projects generating CO2 certificates with a view to repackaging these for resale toinvestors on a secondary market basis.

Solar GuaranteesAllianz Risk Transfer

New and innovative technology, such as solar power, often leads to unknown risks that are difficult to evaluate.As a result, companies in the solar industry grant long-term guarantees for their products, with financial impactsfor the whole project life-cycle. Allianz Risk Transfer has developed bespoke solutions, tailored to the specificrequirements of these manufacturers to assist the management of those risks.

Plantation Forestry CarbonOffset InsuranceAllianz Australia

A product aimed at helping corporate clients reduce their CO2 emissions.

First Cat Bond on EuropeanWindstormsAGCS and Allianz RE

This is the first bond of its kind and allows the risks of windstorms in seven European states, including Germany andthe UK, to be transferred to investors. The bond has been described as “a valuable additional risk managementinstrument,” by Amer Ahmed, Chief Risk Officer of the reinsurance division of Allianz SE.

G P7, 8, 9U1.2, 4.11, 4.12, 4.13EC2, EN6, EN30, F2

www.allianz.com/en/allianz_group/sustainability/products_services/index.html

www.allianz.com/en/allianz_group/sustainability/products_services/index.html


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www.allianz.com/en/allianz_group/sustainability/social_impacts/microinsurance/index.html

What is microinsurance?

Microinsurance supports families who have no accessto social protection. It is a market-based mechanism thatpromises to support sustainable livelihoods by empoweringpeople to adapt to and withstand stress. Microinsuranceproducts have premiums as low as five eurocents per month,and cater for low-income households. This has mademicroinsurance a vital tool in helping to reduce poverty.

MicroinsuranceAllianz offers microinsurance to communities in emerging economies and developingcountries where people are often most vulnerable to risks such as natural disasters, illnessand disease, and where there is little or no social security. Microinsurance can help thesepeople to invest in their livelihoods, respond to unforeseen events and plan for their future.

What is Allianz doing?Our approach: partnershipsOur partners are vital if our microinsurance products areto be a success. They know the needs of local people, aretrusted in the community, and are experts at training themicrofinance institutions (MFIs) and NGOs that serve asdistribution partners. Our partners also play a crucial rolein overseeing the administrative process, and helping tokeep costs down. For technical advice Allianz works withorganizations such as CARE and PlaNet Finance, who helpus to develop ties with local grassroot NGOs and MFIs,who can then educate the local population aboutinsurance schemes.

Allianz and financial educationIn many countries where Allianz is introducingmicroinsurance, financial illiteracy is high andinsurance is an unknown concept to many people.This is when education becomes crucial.

In India, for instance, we have worked closely with CAREto develop an awareness-raising campaign that explainsinsurance in a simple and fun way. At special events,hundreds of villagers gather to watch a puppet show thatexplains insurance. To help people remember, there isalso a microinsurance song that uses a well-knownIndian tune.

We have also built on concepts which local peopleunderstand, such as sharing the burden with friends andfamily. This is the principle behind mutual insurance, andmeans that if everyone in a village pays in a small amount,the whole community can benefit from insurance whenit is needed.

More than two billion people live in extreme poverty withoutaccess to basic services. Research has found that these peopleface risks more often, and with a greater relative financial impact.This is due in part to living in high-risk areas such as flood plains orareas with extreme weather, as well as lack of sanitation, access toclean water, hazardous working conditions and poor nutrition.

“Microinsurance for us is a social businessthat has both a social impact and providesa long-term financial return.”Michael Anthony, Allianz SE, Group Social Opportunities

http://www.allianz.com/en/allianz_group/sustainability/social_impacts/microinsurance/index.html


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How does it work?

While insurance is a common concept in developedcountries, in many emerging economies insurancepenetration is low and the idea of pooling a risk amongseveral members of a community in an organized fashionis rare. This means that educating people about risk, andhow insurance can help them to manage it, is often thefirst important step.

To succeed, microinsurance needs to be high-volume,well-distributed and affordable. A key to making thishappen is to partner with NGOs and other organizationsthat can offer technical assistance to establish marketdemand, research customer needs, train microfinanceinstitutions and then roll out microinsurance schemes.

100%It is expected that there will be a100% growth inmicroinsuranceacross the world by 2011

Our products and our customersWe are engaged in microinsurance in India, Indonesia, Egypt, Senegal, Cameroon, Ivory Coast and Colombia, sellingmicroinsurance that can help people in poor communities to avoid falling into the poverty trap.

Case studiesBest Islamic Life Insurer 2008 – Allianz IndonesiaAllianz Life Indonesia was voted best Islamic Life Insurerin the fifth Islamic Finance Awards 2008 by Karim BusinessConsulting GmbH. The award recognizes the success of thecompany’s Takaful-based product, which respects Sharia law.The product was launched in 2006 and now offers insuranceto over 15,000 people who previously could not takeout policies.

Takaful microinsuranceAllianz has become the first international insurer to offera microinsurance product that complies with Islamic law.Allianz has been offering Takaful insurance products inIndonesia, which incorporate the principles of Islamic financelaw, since April 2006. Now, through its Payung Keluarga(Family Umbrella) policies, it has introduced a microinsuranceversion of the Takaful policies, specially tailored to meetthe needs of low-income customers.

Jens Reisch, CEO of Allianz Life Indonesia, explains: “Themajority of the Indonesian population is Muslim, so ensuringthat the products they buy do not go against the principles ofthe Koran is an important consideration for many. And thatapplies to potential microinsurance customers, too.”

Country Partner Product Policy holders

Egypt PlaNet Finance Death and Disability Insurance 29,000

Senegal PlaNet Finance, PlaNetGuarantee

Death and Disability Insurance 1,000

India CARE, Bajaj Allianz Life, accident, property and health insurance,community-based health insurance program

242,000(200,000 with Bajaj Allianz, 42,000with CARE)

Indonesia GTZ Credit life insurance, also as a Sharia version 65,000

Colombia Accident insurance 639,000

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www.allianz.com/en/allianz_group/sustainability/demographic_change/index.html

Demographic ChangeThe world’s population is changing. It is predicted that by 2050 it will have grown to morethan nine billion people. But this growth will not be evenly spread, and while Europe’spopulation is already shrinking, most less-developed countries will still see a growth inpopulation within the next decades. Falling birth rates and increasing longevity, particularlyin the industrialized world, result in a growing proportion of older citizens in some countries.

What does this mean for Allianz?For Allianz, demographic changes offer new challenges andopportunities in markets of the future. It’s an issue thatAllianz takes seriously, and to which we are responding ina number of different ways.

New demand, new productsAlthough fertility rates have been decreasing on a globalscale, many developing countries in Asia, Africa and SouthAmerica still see a growth in population. Accompanied byan emerging middle class in many countries, particularlyin Asia, this is creating investment opportunities and anew demand for financial products.

The predominantly ageing societies of the industrializedworld, including Western Europe and Japan, offer differentopportunities. There are questions about people’s long-term financial security, and about whether social securitysystems and pension schemes can cope with much olderpopulations. In these countries, there is increasing demandfor new types of healthcare services, products that can help

make life easier for older people, and new ways to financeliving in assisted accommodation. Allianz has respondedwith a range of products, including:

• Senior Extended Accident Insurance – Schutzbrief 55Plusprovides extensive aid and care benefits for seniors whowant to be cared for professionally at home after anaccident or illness.

• Allianz-dit Demographic Trends – this equity fundspecifically invests worldwide in companies that benefitfrom demographic change.

• Capital Mémoire – AGF France offers a new service forlong-term care policy holders that is designed to helpprevent and diagnose memory loss.

• Grandchildren’s policy – this fund-based annuity allowsgrandparents to help finance their grandchildren’sfuture needs.

• OptiMaxx – a flexible product from Allianz Mexicodesigned to allow young people to start planningtheir pension early.

Facts

By 2030, it’s estimated there will be a shortage of20 million people of working age in Europe1

The world’s less developed countries are growing by80 million people a year – that’s 50 times more thandeveloped countries2

1 European Commission 20062 Population Reference Bureau (2007 World Population Data sheet)

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“ The mega-trend demographics are not so mucha threat, more an investment opportunity.”Hans-Jörg Naumer, Head of Capital Market Analysis at

Allianz Global Investors KAG

“The future belongs to fully fundedretirement provision.”Dr. Joachim Faber, CEO Allianz Global

Investors AG and Board member of Allianz SE

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19yearsOur average lifespan hasincreased from 46 to 65 in thesecond half of the 20th century

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New talentAgeing populations can potentially leave businesses shortof skilled workers, which is why Allianz is now putting evenmore effort into diversifying the workforce. At the sametime, this enables us to address different market areasand develop innovative financial solutions.

As the pool of people available for work shrinks, retainingexperienced staff, and further developing employees’ skills,is crucial.

• Our Global Talent Management lets employees takeadvantage of career opportunities, and allows Allianzto use this talent to maximum effect.

• The Allianz Group Management Institute (AMI Group)promotes a performance culture and helps developmanagers and candidates for senior positions.

• In 2007 Allianz invested €159m in staff training.

Allianz also promotes diversity and cooperation betweenemployees of different cultures, age groups, and levels ofexperience and ability, and is increasing the visibility offemale managers as role models.

Across the whole company there are numerous initiativesdesigned to create an attractive working environment fromflexible working hours and crèches, to sports facilities andfitness programs.

Participants in training*

*Allianz Capital Partners are not included

0 10 20 30 40 50 60 70 %

40.2%

59.2%

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www.allianz.com/en/allianz_group/sustainability/management_policies/employees/index.html

Health First

There is a huge range of wellness and sickness preventionprograms across all Allianz companies.

These include special stress-busting courses at ourHeadquarters in Munich, help in giving up smoking inFrance, and free medical examinations for staff andcustomers at Allianz Brazil, especially high-risk individualssuch as those who are obese, or suffer from diabetes orcardiovascular disease.

EmployeesMotivating, inspiring and rewarding our staff is vital if we are to achieve the sustainabledevelopment of our business. We aim to be an employer of choice with a businessapproach, career opportunities, and package of pay and conditions, which help usretain excellent employees, and also attract ambitious people to the Group.

Developing our workforceOur development strategy is designed to enable ouremployees to fulfil their potential and contribute to thesuccess of the Group. We invest continuously in approachesand tools to help them perform to the best of their ability.This also motivates them to stay with, or join, the company.Examples include the following:

• Our Global Talent Management system provides aframework in which individuals can take advantage ofcareer opportunities, while allowing Allianz to use thetalent within the company to the best possible effect.

• Individual performance objectives are set using strategicHR scorecards, a recent innovation to help Allianz’smanagement team develop specific goals against 20 keyperformance indicators.

• We have introduced new evaluation procedures that helpus assess more clearly how an individual or team hasperformed, so that we can reward them accordingly.

Diversity – a crucial business toolDiversity is vital to Allianz, a company with a globalpresence. Not only do we work in many different countriesbut our employees are moving between offices and differentcultures more than ever before. We encourage employeesto take up cross-border placements and exchangeprograms, which provide them with fulfilling developmentopportunities, and also encourage a flow of expertisearound the Group. A diverse, mobile workforce is also keyto developing ‘out of the box’ thinkers – individuals whoare often the catalyst for developing the innovativebusiness ideas for which Allianz is well known.

“ Apart from being a valuable thing in itself, reflecting allgroups in society is key to being a successful company.For us, this is the essence of diversity”.Clement B. Booth, Allianz SE Board member

http://www.allianz.com/en/allianz_group/sustainability/management_policies/employees/index.html


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Allianz has a set of guidelines and a high-level GlobalDiversity Council to champion diversity. Issues weare addressing include:

GenderOur strategy ranges from improving the visibilityof female managers as role models, to introducingmore work–life management tools.

DisabilityAllianz is committed to maintaining a workplace thathelps employees manage their disabilities. And byunderstanding the challenges of disability, our staff canimprove customer service for disabled customers, too.

Generation mixWe encourage older, more experienced people tocontinue their careers with us, resolving staff shortagescaused by the demographic shift as well as providingteams with an important mix of ages and points of view.

Customer focusDiversity is also about providing products that meet theneeds of a diverse range of clients, such as Takafulinsurance products for Muslims.

Case studies2007 Italian Barometer of Customer Satisfaction Index(BISCI) Award (Allianz Genialloyd)Allianz Genialloyd, the Allianz Group’s direct sales insurancecompany in Italy, won the BISCI Award in 2007 for the ThirdParty Motor customer satisfaction and expeditious claimssettlement. It is the seventh consecutive year the companyhas won, with its customer satisfaction of 96.7%, over threepoints higher than the industry average.

Best Financial Services Employer 2007 (Allianz Slovakia)A study by Hewitt Associates places Allianz Slovakia as theBest Financial Services Employer 2007 in Slovakia and thesixth best overall employer. The company received the awardfor its strong focus on HR, particularly in the areas of qualityrecruitment, career development and talent management.

“ Our employees’ different abilities and talents are themost valuable capital we have with which to respondto future challenges. Diversity is the prerequisite forinnovation and growth, and it is essential in business.”Wulf Meier, Head of HR at Dresdner Bank AG

Ideas to Success (i2s)

Innovation is crucial to Allianz. Without it wewould not be able to survive in an industrythat is getting more competitive, moreprice-driven and more demanding.

i2s is a framework for ideas management that has beenrolled out to 58 Allianz companies worldwide, activelyencouraging over 172,000 employees to improve theway in which Allianz operates daily. So far more than60,000 ideas have been generated.

G P1, 6U4.16, LA1, LA2, LA4–13


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G3 SummaryWe have been reporting on sustainable development indicators since 2002, which hasallowed us to benchmark our progress. We are pleased to note we have made progressin most of the major areas of environmental, social and economic indicators. Below isa summary of some of the key indicators. We report against a comprehensive list ofqualitative and quantitative data.

Indicators of the Allianz Group 2004 2005 2006 2007

Economic Development

Total revenues (€ billion)

Operating profit (€ million)

Net income (€ million)

Return on equity after taxes (%)

Basic earnings per share (€)

Economic value added (€ billion)

96.9

6,839

2,266

7.8

6.19

–

101

7,743

4,380

12.6

11.24

–

101.1

10,386

7,021

15.6

17.09

3.5

102.6

10,915

7,966

16.4

18

3.928

Social Issues

Employees (number)

Employees undergoing at least one training session (%)– Staff– Managers

Proportion of women in middle and senior management (%)

162,180

––

26.2

177,625

––

25.4

172,065

––

28.4

181,207

40.259.2

29.2

Environmental Performance

Percentage of employees subject to environmental management(% of employees)

Energy consumption (MJ/employee/year)

Business travel (km/employee/year)

Total CO2 emissions (kg/employee/year)

Water consumption (liters/employee/year)

Paper consumption (kg/employee/year)

Recycled paper consumption (% of total paper consumption)

Amount of waste (kg/employee/year)

61

32,102

5,446

4,145

16,107

187

7

294

56

31,986

5,621

4,292

16,698

219

9

314

61

31,582

5,850

4,207

14,587

191

8

272

70

30,900

5,981

4,214

15,074

186

9.3

253

For a complete list of our G3 description and reference table visit:

www.allianz.com/en/allianz_group/sustainability/performance_highlights/gri_index/index.html

http://www.allianz.com/en/allianz_group/sustainability/performance_highlights/gri_index/index.html

We would like to thank all of our colleagues who havehelped us to create this report. A special thanks toJohanna Dichtl, our intern, who did an incredible jobcoordinating the project.

Design and copywriting: Flag, UKProduction: Rainer Litty, WWFPrint: abcdruck, Heidelberg

CreditsHead of Group Social OpportunitiesMonica AguilarKöniginstr. 2880802 Munich, Germany

On sustainable development strategy and activities,please contact:

Group Sustainable Development ManagerDr. Astrid ZwickKöniginstr. 2880802 Munich, Germany

On sustainable development reporting, please contact:

CSR Consultant to Allianz SEMiriam WolfKöniginstr. 2880802 Munich, Germany

Press contact:

Spokesperson Corporate AffairsFarhad DilmaghaniKöniginstraße 2880802 Munich, Germany

GRI Indicators (G3)

We are an international financial services provider with locations in more than 70 countries throughout Western, Central and Eastern Europe, the Americas, Asia Pacific, the Middle East and Africa. Allianz Group is covered in its entirety in this report including all major Allianz companies.

We have been reporting on Sustainable Development indicators since 2002, which has allowed us to benchmark our progress. We are pleased to report that we have improved in all three dimensions: environmental, social and economic. 2008 is the second year Allianz Group has reported to the Global Reporting Initiative’s (GRI) G3 indicators. The table below gives a description of the G3 application levels. We have self-declared a ‘B’ rating.

The report content was determined through an internal materiality analysis based on a survey of our stakeholders expectations and the level of impact a sustainability issue has on our business.

The following sections detail how we meet the G3 criteria and provide a link to further information on our performance against the criteria. Within this section, you will find detail on:

> Corporate Profile> Strategy and Management> Market and Customers > Environmental Management> Employees and Society

In addition to our Group report, some of our subsidiaries produce individual reports that address their specific Sustainable Development performance in regard to the unique issues their businesses face. These include: > Dresdner Bank Sustainability (only in German)> Allianz UK> AGF> Fireman’s Fund

Further information:Materiality – http://www.allianz.com/en/allianz_group/sustainability/our_strategy/index.html


http://www.dresdner-bank.com/verantwortung

http://www.allianz.co.uk/community/sustainableeconomy.htm

http://www.agf.fr/developpementdurable

www.ffic.com/green



Corporate Profile

Organizational Profile

1.1 CEO Statement “As a global risk manager operating in 70 countries, serving more than 80 million customers, a sustainable approach is essential for our business. Further, providing innovative product solutions that support our clients in meeting today’s global challenges is an integral part of our strategy.

Demographic change, climate change, evolving social security systems as well as the opportunities provided by economic development in every region of the world are affecting our business today and will do even more so tomorrow.”

Michael Diekmann, CEO Allianz SE

> Read the full CEO statement

1.2 Description of key impacts, risks and opportunities

Allianz has identified key strategic impact areas such as demographic and climate change as well as safety, addressing them actively through research, product development and investment.

> See our Answers to the Carbon Disclosure Project, section 1a and 1b

2.1 Name of reporting organization

Allianz Group

2.2 Products and/or services

Financial services

2.3 Operational structure European stock corporation

2.4 Location of organization’s headquarters

Munich, Germany

2.5 Countries located As an integrated financial services provider we offer insurance, banking and asset management products and services to more than 80 million customers in over 70 countries.

> Annual Report, p.108–119

> Regions and Countries

2.6 Nature of ownership Please see our Shareholder Structure > Shareholder Structure

We report on our Sustainable Development performance on the Internet with selected information included in the Executive Summary Report. In this section, we outline our organizational profile. In terms of our Group Risk strategy, we are governed by the Group Risk Policy and

the Precautionary Principle, which are applied across the Group. For the insurance business segment, a risk grading system is applied to our customers. Dresdner Bank conducts a risk assessment for loan commitments.



http://www.allianz.com/en/allianz_group/sustainability/media/downloads/carbon_disclosure.pdf





http://www.allianz.com/en/allianz_group/investor_relations/reports_und_financial_data/annual_report/az_group_e_2007.pdf#page=112


http://www.allianz.com/en/regions_countries/index.html


http://www.allianz.com/en/allianz_group/investor_relations/share/shareholder_structure/page2.html

http://www.allianz.com/en/allianz_group/investor_relations/share/shareholder_structure/page2.html

http://www.allianz.com/en/allianz_group/sustainability/media/downloads/2008_status_report.pdf

2.7 Nature of markets served

Allianz Group is committed to providing financial security to a broad base of customers ranging from private individuals to large multinational corporations in both developing as well as developed countries.

> Annual Report, p.108–119

> Regions and Countries

2.8 Organization scale Number of employees: At December 31, 2007: 176,257 Net premiums earned:€59,362 million (2006: €58,524 million)Total capitalization by equity and debt:

Allianz SE issued debt: €11,799 million (2006: €14,57 million)Debt and capital funding: Our total certificated liabilities outstanding as of December 31, 2007 was €42,070 million (December 31, 2006: €54,922 million). Of these, € 28,523 million are due within one year. Our total participation certificates and subordinated liabilities outstanding as of December 31, 2007 were €14,824 million (December 31, 2006: €16,362 million).Shareholders’ equity: €47,753 million (before minority interests)€51,381 million (after minority interests)

> Annual Report p.103–105

> Annual Report p.203




2.9 Organization changes Important Group organizational changes - Simplification of European structures - Reorganization of German insurance operations - Reorganization Italy


2.1 Awards received Allianz strives to meet the ambitious targets that it sets itself, and is proud when its achievements are recognized with awards and commendations from independent bodies.Allianz Group has received a number of awards in various disciplines ranging from the Environmental Values & Resource awards to be included in the list of “2008 World’s Most Ethical Companies”.

> Click here to see the complete list of last year’s awards

3.1 Reporting period October 2007–June 2008 (unless otherwise stated).

3.2 Date of most recent previous report

October 2007 > Status Report 2007

3.3 Reporting cycle Annual

3.4 Contact Dr. Astrid Zwick > Sustainability Contacts

3.5 Process for defining report content

The issues that were of most relevance to our stakeholders and have potential impact on our business were assessed. The result and methodology are detailed in our materiality section of our web pages.

> Materiality

3.6 Boundary of the report The Report covers all Group and business unit activities for the period from October 2007–June 2008 unless otherwise stated.

















http://www.allianz.com/en/allianz_group/sustainability/performance_highlights/ratings_awards/index.html?hits=awards




http://www.allianz.com/en/allianz_group/sustainability/media/downloads/statusberichtallianz_sdrrptfinalv2_2007version2.pdf

http://www.allianz.com/en/allianz_group/sustainability/media/downloads/statusberichtallianz_sdrrptfinalv2_2007version2.pdf

http://www.allianz.com/en/allianz_group/sustainability/contacts/index.html

http://www.allianz.com/en/allianz_group/sustainability/contacts/index.html


3.7 Specific limitation on the scope or boundary of the report

This reporting period includes in minimum data and activities from our largest operational entities, which each have representation on our Sustainability Strategy Team (i.e. about 60% of employee coverage). Several initiatives and products that are monitored extend to the entire Group. The report also includes data of our environmental management system, which currently has coverage of 70%.

3.8 Basis for reporting on joint ventures, outsourced operations, etc that can significantly affect comparability from period to period and/or between organizations

Headcount numbers are adapted according to new structures.

3.9 Data measurement techniques and bases for calculation

The consolidated financial statements of Allianz Group meet the International Financial Reporting Standards (IFRS) guidelines, as adopted under European Union (“EU”) regulations in accordance with section 315a of the German Commercial Code (“HGB”) Environmental data follows the VfU Standards and is managed through a Group-wide internal data management system.

> IFRS

3.10 Re-statements of information and reasons for them. Due to amendments by IASB

Recently adopted accounting pronouncements (effective January 1, 2007 and on or after January 2008) Reclassifications A significant portion of these revisions to financial reporting resulted from the implementation of changes to the presentation of certain financial information of Allianz Group’s consolidated balance sheets and consolidated income statements. These revisions were implemented to improve transparency.

Changes in the presentation of the consolidatedfinancial statements.The Allianz Group has identified certain prior period errors through an analysis of various balance sheet accounts (the “Errors”). The Errors resulted primarily from the following issues:– Accounting for the purchase of Dresdner Bank in 2001

and 2002, which included realized gains and losses on investments which did not reflect the correct purchase price allocation for the Dresdner Bank opening balance sheet.

– Consolidation of dividends for special funds in the year 2001, which resulted in the recognition of amounts for reserves for premium refunds, that did not properly take into account the different financial years of the sponsor and the special funds.

– Other errors, related to the accounting for minority interests and reserves for premium refunds, occurred in combination with mergers.


http://www.allianz.com/en/allianz_group/investor_relations/reports_und_financial_data/ifrs/page1.html



3.11 Significant changes from previous reporting periods (in the scope, boundary or measurement methods applied in the text)

No significant changes.

3.12 Table identifying the location of the standard disclosures in the report

These tables provide the description and specific links to the information for the Standard Disclosure.

In the Sustainable Development Executive Summary, the GRI Index is provided.

> Status Report 2008



Strategy and Management

This section overviews Allianz SE’s Sustainable Development strategy and implementation approach. Integrating sustainability issues into our corporate

strategy goals is key to our success. Good governance and a sound management structure are necessary for effective implementation.

Governance, Commitments and Engagement

4.1 Governance structure The corporate structure of Allianz SE as a controlling company of Allianz Group is defined by the two tier board system, comprising the Board of Management and the Supervisory Board.

> Corporate Governance


4.2 Chair of highest governance body also an executive officer

Chair of Supervisory Board: Henning Schulte-Noelle, CEO: Michael Diekmann

4.3 Independence of board members

11 out of 12 members are independent (non-independent member is Schulte-Noelle); in addition, six members represent our workforce within the supervisory board in accordance with the agreement regarding participation of employees.


4.4 Shareholder mechanisms

Please see Allianz SE statutes. > Allianz SE Statutes

4.5 Executive compensation

Please see Remuneration Report. > Annual Report p.15–21

4.6 Process for avoidance of conflicts of interests

The Internal Conflict Management Guidelines and Manual states that situations and transactions where conflicts may occur must be recorded Group wide and are accessible only by Group Compliance. Group Compliance manages conflict, avoidance and escalation processes. An Independence Principle is applied stating that each business unit should act in the best interests of its clients and that its own duties and responsibilities are independent from the interests of other business units in the Group.

4.7 Expertise board members

Board of Management is led by Michael Diekmann – Chairman of the Board – and has a total of 12 board members (since January 2008).

For detailed responsibilities, see Annual Report page 23.

> Board of Management

4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation

Our Code of Conduct is implemented throughout the Group and provides guidance on behavior and conduct both internal and external. The Sustainable Development Values and Mission statement were updated in 2008. These communicate our commitment to Sustainable Development and provide guidance on environmental and social issues.

> Our Strategy > Management and

Policies

http://www.allianz.com/en/allianz_group/investor_relations/corporate_governance/index1.html






http://www.allianz.com/en/allianz_group/investor_relations/corporate_governance/statutes/page1.html

http://www.allianz.com/en/allianz_group/investor_relations/corporate_governance/statutes/page1.html



http://www.allianz.com/en/allianz_group/investor_relations/corporate_governance/board_of_management/members/page2.html

http://www.allianz.com/en/allianz_group/investor_relations/corporate_governance/board_of_management/members/page2.html


http://www.allianz.com/en/allianz_group/sustainability/management_policies/index.html


4.9 Board-level processes A Trend Assessment Committee receives regular and commissioned studies on future risks. It meets three times a year and reports to the Holding Board and to the Risk Committee. The Sustainability Strategy Team also provides the Trend Assessment Committee with information. The Sustainability Strategy Team additionally reports several times a year to the Chairman of the Board of Management.

> Annual Report

4.10 Process for evaluation of highest governance body

Elections to the Supervisory Board are made on an individual basis. An application for the judicial appointment of a Supervisory Board member is limited in time up to the next annual general meeting. Proposed candidates for the Supervisory Board chair are announced to the shareholders.

4.11 Explanation of whether and how the precautionary approach is addressed

The Group Risk Policy was updated in 2005 with a stronger emphasis on emerging risks, which cover risk drivers resulting from technological developments, growing environmental problems or social injustices. In 2007 and early 2008, new chapters defining minimum standards for reputational risk management at local entities have been added to the segment-specific OE Risk Minimum Standards.

The Trend Assessment Committee has been addressing future trends and emerging risks since 2002. The Committee analyzes critical trends through its early warning systems and generates risk maps and depicts mega trends while regularly reporting to the Board of Management.

Examples of the precautionary principles within Allianz include the climate strategy and the associated action plan.

> Risk Management

> Carbon Disclosure Questionnaire

4.12 Affiliations (Principles, Initiatives, Standards)

Our Sustainable Development implementation is guided by our Group Risk Policy, our Code of Conduct and our Sustainable Development Principles. Dresdner Bank has adopted the Equator Principles, RCM has signed the Principles for Sustainable Investment and Allianz Group is a signatory of the UN Global Compact.

> External Commitments

4.13 Affiliations (Memberships)

Allianz Group is involved with numerous external affiliations including: being a signatory of the UN Global Compact, member of the WBCSD, participating in the Carbon Disclosure Project, FTSE4Good and the DJSI.

> External Commitments

4.14 List of stakeholder groups engaged by the organization

Understanding our stakeholders’ expectations is key to our sustainable development. From making sure that we have strong relationships with suppliers to facing up to the challenges of climate change, we strive to communicate with our stakeholders about the issues that affect them and to find ways in which we can actively respond. Our biannual Stakeholder Survey indicates whether we are meeting stakeholder expectations. If necessary, we adjust our sustainable development strategy based on these findings. We strive to ensure that our strategy tackles material issues and implements an approach to address the changing expectations of our stakeholders.

> Materiality

> Stakeholder Survey






http://www.allianz.com/en/allianz_group/sustainability/our_strategy/commitments/index.html





http://www.allianz.com/en/allianz_group/sustainability/media/downloads/stakeholder_expectation_survey_2007.pdf


4.15 Basis for identification and selection of stakeholders

Investor Relations: We analyze our shareholder body twice a year and communicate with buy- and sell-side analysts as well as with investors. Communication with investors is very important to us.

Stakeholders: we aim at having constant dialogue with diverse stakeholders – such as NGOs – who provide different perspectives, and our customers.


4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group (for IR)

Communities, Civil Society, Customers – Co-operation with NGOs for studies (e.g. WWF partnership

on climate change) and projects (e.g. Care, UNDP, GTZ)– Stakeholder expectations survey (bi-annual) – Customer surveys on industry specific topics (i.e. old age

provision, banking – annually)– The Net Promoter Score (NPS) is constantly used to measure

customer loyalty and customer satisfaction as well as to gather customer feedback at critical customer contact points.

Employees Local Allianz companies are required to run an own employee engagement survey and results are covered in the strategic HR scorecard. A global Leadership Culture Survey is in place which aims to align the strategies of company leaders with Allianz objectives.

Report Investors/Shareholders Communication with investors is very important to us.During our roadshows over the past year, we spent 47 days visiting 496 investors in 28 cities, including, for the first time, Dubai and Abu Dhabi. This gave investors the opportunity to discuss the current business situation and to clarify outstanding questions. Besides our analysts’ conference, our “Capital Markets Day” again raised major interest. We delivered an in-depth view of our position in the growth markets of China, India, Russia and Hungary, as well as presenting our “Ideas to success” (“i2s”) initiative, which fosters innovation in our workforce. We increased the number of meetings with analysts and institutional investors by 21% to 426; in addition, the Investor Relations team responded to some 8,500 enquiries from private investors in the year under review.

> Customers

> Social Impacts

> Employees

> Investor Relations

4.17 Key topics and concerns raised by stakeholder engagement and how the organization responds to these information

Communities, Civil Society: The reporting information is gathered and influenced in part through a number of areas from our stakeholder survey, internal and external workshops, and our affiliations with external bodies such as the WWF. Extensive socioeconomic research is conducted.

Customers: The Net Promoter Score (NPS) is used to measure customer loyalty to the Group against that of industry peers. NPS is also used by our operational entities to measure customer satisfaction and gather customer feedback at critical customer contact points. A complaint management blueprint is being introduced for all companies to ensure a high-quality service when dealing with customer complaints. Investors: Information for investors can be found on the Investors Relations section of our website and is continually updated by investors’ demands for new information.


> Investor Relations



http://www.allianz.com/en/allianz_group/sustainability/management_policies/customers/index.html

http://www.allianz.com/en/allianz_group/sustainability/social_impacts/index.html


http://www.allianz.com/en/allianz_group/investor_relations/index.html



http://www.allianz.com/en/allianz_group/investor_relations/index.html

Economic Indicators

DMA Our corporate strategy is driven in part by our 3+1 strategy which is implemented Group-wide to promote our business model and achieve sustainable and profitable growth. The 3+1 strategy is a comprehensive strategy that is supported by several of our strategic initiatives such as our Leadership Values, our Customer Focus Initiative and the HR scorecard. The management team is now in a position to improve Allianz‘s competitive advantages and company value even more than before by focusing on our current initiatives, “Sustainability”, “Customer Focus” and “Ideas to success” as well as our new business model. Our management approach is guided by our Value-Based Management system. The goal of our value-based management approach is to sustainably meet our shareholders’ return expectations over the long run. Furthermore, we want shareholders, employees, customers and other stakeholders to profit from the value our company creates.

> Value-Based Management


> 3+1 Program

EC1 Direct economic value generated and distributed.

Total revenues: €102,598m Total expenses: €91,166m Employee compensation: €12,435 Donations/community investments: €60m

Retained earnings: €2,475.8m The Board of Management and the Supervisory Board propose that the available net earnings of Allianz SE of €2,475,825,000 for the fiscal year 2007 be appropriated as follows:– Distribution of a dividend of €5.50 per no-par share entitled to a dividend: €2,475,825,000. Interest payments 2006: €725.8m Payment to governments: income taxes paid in 2007: €2,854m.

> Total revenues

> Expenses

> Employee compensation

> Retained earnings

> Interest payments

> Payment to governments

Market and Customers

Our contribution in terms of economic impact is detailed in the following section.

http://www.allianz.com/en/allianz_group/investor_relations/share/value_based_management/page1.html

http://www.allianz.com/en/allianz_group/investor_relations/share/value_based_management/page1.html



http://www.allianz.com/en/allianz_group/about_us/strategy/program__3_one_/page1.html









EC2 Financial implications and other risks and opportunities for the organization’s activities due to climate change

Climate change risks and opportunities vary between business sectors. Our activities expose us to climate change at various levels.

Insurance: Risk associated with climatic events such as natural catastrophes is taken into account in our Risk Capital calculations. Opportunities arise from additional requirements for coverage against weather-related events. For this purpose, we have set up so called CAT-bonds to cover windstorms or flooding in certain areas. In addition we are developing products and consultancy services for our clients in order to mitigate climate change risks, e.g. in the area of renewable energy.

Banking:Climate change risks and opportunities arise from climate policies. For our banking business, risk linked to climate change and climate change policy is mainly due to a potential increase in the number of credit defaults.

Asset management and investments:Catastrophic events can cause defaults and thus risk to our investments. However, we see opportunities by far offsetting these risks. Therefore, we launched a program to systematically invest in renewable energies. In addition, Dresdner Kleinwort developed investment products to meet the need of our clients for clean invest.

Group-wide:Environmental Management System

> Carbon Disclosure Project 1a and b

> Climate Change

EC3 Coverage of the organization’s defined benefit plan obligations

68%

EC4 Significant financial assistance received from government

None




http://www.allianz.com/en/allianz_group/sustainability/climate_change_and_environment/index.html

Market Presence

EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation

No group wide policy existent; however, the product and service portfolio indirectly indicates that regional suppliers are preferred to more distant ones (due to the cost factor).

EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement

A new department within Allianz has been set up which, besides the sustainable development office, includes corporate citizenship management under the brand of Allianz4Good. Social guidelines are currently underway to streamline our climate change activities according to sustainable development and to align them with business. A special social finance section is foreseen to cover for pilot areas.

> Social Engagement

Product Responsibility Indicators

DMA At Allianz SE we are committed to the highest standard of customer service and product delivery. The following section outlines how we manage, monitor and ensure product responsibility. Various initiatives and commitments have been made to ensure we promote, offer and develop responsible products. Our employees are guided by our Code of Conduct. Specific guidelines for product responsibility do not exist on Group level but are decentralized through the business segments. This is an issue of minor importance for financial service providers as our products are principally not dangerous. We are following all regulatory and legal requirements of the countries we operate in.

PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures

Not relevant for financial service providers.

PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services, by type of outcomes




PR3 Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements


PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcome


PR5 Practices related to customer satisfaction

The Customer Focus Initiative is a wide-ranging initiative intended to promote customer loyalty in Operational Entities. The Net Promoter Score (NPS) is used to measure customer loyalty to the Group against that of industry peers. NPS is also used by our operational entities to measure customer satisfaction and gather customer feedback at critical customer contact points.A complaint management blueprint is being introduced for all companies to ensure a high quality service when dealing with customer complaints.

> Customers

PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship

The Code of Conduct provides guidance to Allianz Group in terms of employee conduct and behavior both internally and externally.

> Code of Conduct

PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship, by type of outcomes

This information is not disclosed at Allianz.

http://www.allianz.com/en/allianz_group/sustainability/management_policies/customers/index.html

http://www.allianz.com/en/allianz_group/sustainability/media/download_links/code_of_conduct.html

PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data

This information is not disclosed at Allianz.

PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services

Allianz Group companies are involved in legal, regulatory and arbitration proceedings in Germany and a number of foreign jurisdictions, including the United States, involving claims by and against them, which arise in the ordinary course of their businesses. It is not feasible to predict or determine the ultimate outcome of the pending or threatened proceedings but management does not believe that the outcome of these proceedings will have a material adverse effect on the financial position or results of operations of Allianz Group, after consideration of any applicable reserves.

> 20-F

http://www.allianz.com/en/allianz_group/investor_relations/reports_und_financial_data/20_f/allianz_20-f_2006.pdf

Environmental Indicators

DMA Our Environmental Management System is oriented towards the ISO 14001 and creates the foundation for our monitoring and implementation of environmental issues and general management. Through this system we have been working to reduce our environmental impacts. Guidance is provided through our Sustainability principles, Code of Conduct and our Group Risk Policy. We provide our customers with a diverse range of products to reduce their environmental footprint.

We also set ourselves the goal of a 20% reduction in CO2 emission by 2012 (based on 2006 levels).

> Environmental Management

> Code of Conduct > Sustainability

Principles

Materials

EN1 Materials used by weight or volume

Total paper consumption: 31,263 tons. > Environmental Footprint

EN2 Percentage of materials used that are recycled input materials

Recycling paper: 9.3%. > Environmental Footprint

Energy

EN3 Direct energy consumption by primary energy source

Internal overall consumption at Allianz SE worldwide amounted to 5,192,455 gigajoules in 2007. The energy consumed comprised 65.5% electricity, 24.7% fossil fuels, 9.0% district heating and 0.8% waste heat as well as renewable energy.

> Environmental Footprint

EN4 Indirect energy consumption by primary source

14,720,232 gigajoules. This number covers the indirect energy use of Paper consumption, Business travel, Water use and Waste dispose according VfU standard.


EN5 Energy saved due to conservation and efficiency improvements

In 2007: 294,145 megajoules were used from Allianz photovoltaic plant and 39,308,076 megajoules were generated internally from renewable heat energy. Additionally, 195,769,184 megajoules of electricity were generated from hydroelectric power stations.


EN6 Initiatives to provide energy-efficient or renewable energy-based products and services, and reductions in energy requirements as a result of these initiatives

Allianz Group offers a diverse range of products that invest in renewable energy, and provide insurance to renewable energy products and energy efficient homes in Europe and the USA. For a complete list, refer to the Sustainable Products and Services Section.

> Sustainable Products and Services

Environmental Management

We have been reporting on our environmental performance for over 11 years. This section includes

references and descriptions of our environmental management and performance and impact for 2007/08.




http://www.allianz.com/en/allianz_group/sustainability/media/downloads/principles_sustainable_development.pdf

http://www.allianz.com/en/allianz_group/sustainability/media/downloads/principles_sustainable_development.pdf











http://www.allianz.com/en/allianz_group/sustainability/products_services/index.html



EN7 Initiatives to reduce indirect energy consumption and reductions achieved

195,769,184 megajoules of electricity were generated from hydroelectric power stations. Additionally, Allianz Cornhill, Allianz Ireland, Dresdner Bank and Allianz Germany used electricity generated by combined heating and power and Allianz Germany and Allianz Switzerland use electricity generated by photovoltaic.


Water

EN8 Total water withdrawal by source

Total water consumption: 2,537,159m³ 0.5% = rain water0.6% = natural water 98.9% = drinking water


EN9 Water sources significantly affected by withdrawal of water

No measurements and of limited relevance for financial service.

EN10 Percentage and total volume of water recycled and reused

No measurements and of limited relevance for financial service providers.

Biodiversity

EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas


EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas


EN13 Habitats protected or restored






EN14 Strategies, current actions, and future plans for managing impacts on biodiversity

We do not have a Group-wide guideline in place but there are several activities by our Group companies. For example Allianz UK was the first company in Surrey (United Kingdom) to submit plans for the areas used at the two sites in Guildford and Ewhurst. Since then, the bare grass areas surrounding the insurance buildings have been developed into veritable biotopes for animals and plants – an achievement that was rewarded with two local prizes in 2004. Also, Allianz Italy and WWF Italia created the San Felice Oasis in Marina di Grosseto, one of the longest and best conserved stretches of Tyrrhenian coast in Tuscany. In April 2007, Allianz agreed to manage the area following the rigorous WWF criteria. Nature paths were created and first steps were taken to protect the dune flora.

EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations by level of extinction risk


Emissions, Effluents and Waste

EN16 Total direct and indirect greenhouse gas emissions by weight

488,606 tons > Environmental Footprint

EN17 Other relevant indirect greenhouse gas emissions by weight

220,744 tons > Environmental Footprint

EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved

195,769,184 megajoules of electricity were generated from hydroelectric power stations (2007). Additionally, Allianz UK and Dresdner Bank and Allianz Germany used electricity generated by combined heating and power.


EN19 Emissions of ozone-depleting substances by weight


EN20 NOx, SOx and other significant air emissions by type and weight


EN21 Total water discharge by quality and destination


EN22 Total weight of waste by type and disposal method

Total waste output: 42,554 tons 67.5% = recycled 26.6% = incinerated 5.8% = disposed of in landfills0.1% = special waste treatment










EN23 Total number and volume of significant spills


EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally


EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff


Products and Services

EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation


EN27 Percentage of products sold and their packaging materials that are reclaimed by category


Compliance

EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations

None.

Transport

EN29 Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce

Total business travel: 1,006,708,811 km: 9% = by rail 61% = by road 30% = by air


Overall

EN30 Total environmental protection expenditures and investments by type

This data is not collected at Group level. In each OE of the existing EMS, there is one person who coordinates the data collection, helped by of a network of people. This workforce can be seen as expenditure. Furthermore we have, for example, the environmental foundation, our Corporate Citizenship projects (see EC1), our investment into renewable energies (€350 million) and our Climate Change action plan.


> Climate Change

Financial Services Sector Supplement – Environmental Performance

F1 Description of environmental policies applied to core business lines

Our Code of Conduct and the Compliance handbook provide information for all significant areas of business conduct including environmental and human rights aspects through the reference to the UN Global Compact in the preamble and a paragraph on the protection of natural resources. For the Banking segment: Dresdner Bank has specific Group Risk Guidelines, the Group Credit Strategy and the Reputational Risk Principles.

> Code of Conduct

> Climate Change and the Environment










F2 Description of process(es) for assessing and screening environmental risks in core business lines

Group: Environmental Management System for operational processes, Strategic Early Warning Systems (SEWS) to examine long-term threats and opportunities emerging from medium and long-term trends. Group Risk controlling includes sustainability aspects in the Group Risk policy, especially the category of emerging risks (e.g. climate change). The Group Risk policy is central to all business lines. Since 2008, reputational risks are particularly tackled through minimum standards. Risk detection takes place in the various business units: e.g. underwriting departments monitor and assess emerging risks (e.g. nanotechnology, climate change, environmental liability legislation) on a regular basis. Banking: Use of the Equator Principles for project finance. Handbook on environmental risk management for creditors developed in conjunction with credit experts and environmental experts. Asset management: RCM that signed the Principles for Responsible Investment has an integrated portfolio for SRI investment that is benchmarked against the Dow Jones Sustainability World Index. RCM’s SRI Research Unit individually scores companies against four areas –environmental, human rights, social and societal – to produce an overall ‘sustainability’ score. Allianz Global Investors France uses positive selection criteria to encourage best practices. To achieve this, AGI France established an SRI Advisory Committee, composed of members from outside and within the company. The SRI Advisory Committee’s objective is to assist AGI France in consideration of the role of SRI in its activity, and to manage conflict of interest situations if and when they arise.

> Risk Management > Environmental

Footprint

> Carbon Disclosure Project

F3 State the threshold(s) at which environmental risk assessment procedures are applied

Group-wide, a Risk Policy and Precautionary Principle are applied.

In the insurance sector a Risk Grading System is applied to customers.

Dresdner Bank does a risk assessment for loan commitments.

> Risk Management

F4 Description of processes for monitoring clients’ implementation of and compliance with environmental aspects raised in risk assessment process(es)

Insurance:Risk engineers are assessing environmental risks on site

Banking: Reputational risk management processes in place addressing these issues

Asset Management: RCM speaks directly with companies on a regular basis.

> Risk Management








F5 Description of process(es) for improving staff competency in addressing environmental risks and opportunities

There is a dedicated global working group on the risks and opportunities due to climate change starting a process to exchange best practice examples. Training workshops are held which address environmental aspects and other emerging risks. Allianz Global Corporate and Specialties has emerging risks integrated into its risk management which underlies all other processes.

F6 Number and frequency of audits that include the examination of environmental risk systems and procedures related to core business lines

Audits based on the ISO 14001 environmental management standard at Dresdner Bank. A regular internal audit is carried out in the German Group companies of Allianz. A verification of the global EMS is conducted in 2008.

> Dresdner Bank EMS

F7 Description of interactions with clients/investee companies/business partners regarding environmental risks and opportunities

1) The Carbon Disclosure Project is an independent, non-profit index where Allianz participates to benchmark its carbon management to that of other companies.

2) RCM: Stakeholder Engagement System in the area of asset management.

3) Strong collaboration between Sustainability office and Investor relations.

4) Suppliers: A screening of suppliers according to social and environmental criteria is recommended at Group level and a commodity strategy will be set up. The largest group companies already conduct a thorough supplier screening.

5) “Environmental pool” for pollution liability: in Italy, Spain and France Allianz subsidiaries Allianz Spa, AGF and Allianz Seguros are teaming up with other insurance companies to form a pool that is providing solutions to environmental pollution for clients.

6) Dresdner Bank offers a complete consultation service for trading in emission certificates for clients. Furthermore the bank is communicating these risks in its annual report.

7) A stakeholder survey is regularly conducted to screen areas of concern of stakeholders.

8) Euler Hermes is in dialogue with NGOs concerning environmental, social and governance (ESG) issues. It has been a member of the OECD Working Group of Export Credit Agencies on ESG issues.

> Materiality

> Suppliers

> Climate Change and the Environment

F8 Percentage and number of companies held in the institution’s portfolio with which the reporting organization has engaged on environmental issues

F9 Percentage of assets subjected to positive, negative and best-in-class environmental screening

No separation made between assets with environmental value added or with social value added. In total, 0.6% of third parties’ assets under management is screened for social and environmental aspects.

> Goals




http://www.allianz.com/en/allianz_group/sustainability/management_policies/suppliers/index.html





F10 Description of voting policy on environmental issues for shares over which the reporting organization holds the right to vote shares or advise on voting

RCM is a member of the International Corporate Governance Network (ICGN) and the National Association of Pension Funds. Wherever shareholder proposals concern social and environmental issues, these are referred to the RCM Sustainability Research (SR) team by the proxy voting officer, for review on a case by case basis. Consideration is given to the circumstances of a particular social or environmental issue and whether this may have economic consequences, either directly or indirectly for the company. In these cases, the economic effects are considered in determining RCM’S vote. RCM’s dedicated SR team enforce coherent and informative opinions on best practice for all industries globally, guided by national and international law and voluntary codes of good practice developed by authoritative bodies. In instances where companies do not fully disclose their policies and approach towards the management of material social and environmental and issues, the SR team will engage with company management.

F11 Percentage of assets under management where the reporting organization holds the right to vote shares or advise on voting

Approx. 100%.

F12 Total monetary value of specific environmental products and services broken down according to the core business lines

Insurance: We offer a wide range of environmentally related products, mainly in the sphere of liability, car insurance and renewable energies. Total amount: €648,837,352 Share of Gross Premium Written: 0.71 Own investment: Wind energy investment: Total amount: €350 already invested; additional €150 planned during 2009. Investment banking: Renewable project finance Total amount: not available Bank: Emissions trading and advisory Total amount: not available Asset management: Global EcoTrends Fund and EU Carbon Fund Total amount: €2.06 billion

> Sustainable Products and Services

F13 Value of portfolio for each core business line broken down by specific region and by sector

Total revenues in core business lines (in 2007):Property-Casualty: €44,289 millionLife/Health: €49,367 millionBanking: €5,721 millionAsset Management: €3,259 million(For more detailed information about the regions and sectors please see the annual report p.35–63.)







Labor Practices and Decent Work

Our code of conduct outlines our expectations in terms of employee behavior both internally and with customers. We have clear policies in place in regard to labor practices and

decent work and the following section outlines our policies and management strategies to ensure in this regard.

Employment

DMA We comply with all labor and workforce regulatory and legislative labor requirements in the countries we operate in. Our Code of Conduct, along with our Group Risk Policy, guides our employees’ both internally and externally. This code ensures that we value, respect and maintain the trust of our employees. Our Group human resources policy follows the principle of “local where necessary, standardized and coordinated where possible and efficient”. In order to assess our employee performance we have an HR scorecard with KPIs including leadership, trust and feedback, and diversity and innovation. ‘Allianz Global Diversity Principles and Guidelines’ ensures consistent goals of diversity and procedures are in place.

Allianz SE is member of Transparency International and supports the Principles of the United Nations Global Compact and the OECD Guidelines for Multinationals through its Code of Conduct.

> Code of Conduct

LA1 Breakdown of workforce

The Allianz Group employed 176,257 employees worldwide as of December 31, 2007. Germany: 40%; Europe excluding Germany: 45%; North America: 6%; Asia Pacific: 7%; South America: 2%.In 2007, 60% of Allianz employees were located outside of Germany compared to 54% the year before. This is a reflection of the continued, strategically driven corporate global expansion.

> Annual Report 2007 – Our Employees

LA2 Total number and rate of employee turnover

Number joined: 23,333 Number left: 27,026 Average employee turnover: 17% (2007)





Labor/Management Relations

LA4 Percentage of employees covered by collective bargaining agreements

On October 13, 2006 Allianz changed its legal form from a German stock corporation into a Societas Europaea (SE). The SE Works Council was constituted on January 24, 2007. It replaced the previous Allianz European Works Council and has 39 members from 26 European countries. Rolf Zimmermann (Germany) was elected as the first chairman. He also chairs the Executive Committee of the SE Works Council. The other committee members come from the UK, Italy and the Netherlands.

The “Agreement Concerning the Participation of Employees in Allianz SE” of September 20, 2006 regulates the members and responsibilities of the SE works council. This workers council represents employee interests of Allianz SE and its subsidiaries with registered offices in EU member states, the European Economic Area and Switzerland, in cross-border matters. In 2007, two regular sessions of the SE works council were held. The items discussed included the business situation and the future outlook for the Allianz Group; the works council was consulted in this respect. The Management Committee was also consulted several times on an ad hoc basis.The “Agreement Concerning the Participation of employees in Allianz SE” also regulates corporate decisions of the Supervisory Board of Allianz SE. The Supervisory Board consists of 12 members, half of whom represent the shareholders and the other half the employees. Four of the current employee representatives are from Germany, with one each from the UK and France.Employees represented by an independent trade union or covered by collective bargaining agreements: 100% in Germany.

> Annual Report 2007: Our Employees

LA5 Minimum notice period regarding significant operational changes, including whether it is specified in collective agreements

There is no formal minimum notice period, however operational and organizational changes are accompanied by consultation and negotiation with trade unions with an adequate notice period.

Occupational Health and Safety

LA6 Percentage of total workforce represented in formal joint management–worker health and safety committees that help monitor and advise on occupational health and safety programs

No global data available. As per respective legal requirement at local level. Special foundations: Allianz in Germany has established three foundations that grant financial help for those employees and their spouses who have financial problems caused by illness, accidents, etc.

LA7 Absentee rates Allianz Group: 3.6% Allianz Group in Germany: 3.9%




LA8 Education, training, fulfilling, prevention and risk control programs in place to assist workforce members, their families or community members regarding serious diseases

We do not have a Group-wide guideline in place but there are several activities by our Group companies. For example: Allianz Brazil offers health program for members of staff and customers in particular high-risk individuals such as those that are obese, smokers, or sufferers of diabetes or cardiovascular disease. The individual is given a medical examination, health tests and ultimately a health program tailored to their individual requirements, with personal follow up including phone contact with a health professional, if necessary. Allianz North America and Allianz Germany Occupational Health and Safety (OHS) support and training for employees including: – Stress management workshops, seminars, brochures – Areas for relaxation or fitness facilities or sleeping rooms – Also some offices have in-house physicians that can be used

by staff and family members– Health/nutrition workshops, seminars, brochures.

LA9 Health and safety topics covered in formal agreements with trade unions

Not issued at global level.

Training and Education

LA10 Training per employee From 2007, participants are counted only once as opposed to 2006, when each participation throughout the year was counted in the figures. The definition of training has now been refined. Only training sessions of at least 3 hours in a row including eLearning, are recognized. Therefore, these figures cannot be compared to previous years. 40.2% of staff employees participated in at least one training session in 2007. The proportion is higher for managers at 59.2%.

In 2007, Group-wide investment in ongoing training for employees amounted to €159.00m This was a decrease in investment per employee compared with 2006 but figures are approximate and act as a model scope for 2007. They will be made more accurate next year.

Allianz Group OPEX In July 2006, Allianz launched a global OPEX initiative with the target of 1% of the total workforce becoming certified Black Belts by 2011. As part of this overall goal, 650 employees will have completed their OPEX Black Belt training by the end of 2008. As at the end of March 2008, 2,335 employees have been trained as OPEX Blue Belts, 512 of these employees have achieved OPEX Black Belt trained status and 72 are fully certified OPEX Black Belts.

> Employees


LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings

Global Talent Management We are introducing a new operating model to ensure human resources management operates consistently throughout the Group. It defines joint standards and delivers a framework in which individuals can better take advantage of career opportunities and the company can optimize talent. The system is highly transparent, allowing management to develop talent more effectively across the Group, giving our future leaders clear development goals and more attractive development opportunities, and better alignment between individual career objectives and business needs.

The Allianz Group Management Institute (AMI Group) helps to develop top managers and candidates for senior positions and maintains dialog with the top level of management. The AMI Group is dedicated to three principal tasks:– development programs, which include the “Allianz

Excellence Program“, in which international teams work on business policy issues commissioned by the Board of Management

– promoting an international outlook and performance culture by engaging with the top-class business schools involved in designing our talent programs, or conducting their own programs in-house.

– talent management through strategy seminars (Campus Programs) involving members of the Allianz SE Board of Management and local management. The benefits are mutual; attendees become better acquainted with the Group’s strategic requirements and can in turn present their own ideas to the Board of Management.

Diversity and development conceptWe promote cooperation between employees of different cultural origins, ages, levels of experience and abilities. We believe diversity is the ideal way to boost our capacity for innovation and find viable solutions to varied and constantly changing markets. Our Diversity Guidelines define the specific framework for successful, non-discriminatory cooperation, both internally and outside the company.

> Employees

LA12 Percentage of employees receiving regular performance and career development reviews

There is a Global HR policy in place for executive/top management, which requires all local Group companies to fulfill a performance appraisal and career development procedure. Other employee levels are covered by local company policies which are administered locally.

Diversity and Equal Opportunity

LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership and other indicators of diversity

The composition based on ethnic origin is not recorded at Group level. The proportion of severely disabled people in Allianz Deutschland AG is 3.9% out of 28,155 employees (status: 31/12/2007). The following nationalities are represented on the Board of Management of Allianz SE: Germany, Austria, Argentina, South Africa, Italy and France. While nearly 56% of the workforce is female, 29.2% of the management positions and 15.8% of senior management positions (level 0 and level 1) are held by women.

> About Us


http://www.allianz.com/en/allianz_group/about_us/index1.html

Human Rights Indicators

DMA We respect the OECD guidelines and participate in the Global Compact. Our Code of Conduct has 22 principles that clearly detail guidance for all employees’ conduct both internally and externally.

We expect the same from our suppliers. This is supported by our Operative Purchasing Manual, which sets out a general purchasing process including social and environmental standards. We operate zero tolerance of child labor, forced labor and discrimination.

> Code of Conduct

HR1 Percentage and total number of significant investment agreements that include human rights clauses or that underwent human rights screening

No quantifiable influence. The overwhelming majority is based in Europe and subject to rights under national legislation that regulate these aspects. However, RCM has signed the Principles for Responsible Investment, an investor initiative in partnership with UNEP Finance Initiative and the UN Global Compact.

HR2 Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken

No quantifiable influence. The overwhelming majority is based in Europe and subject to rights under national legislation that regulate these aspects. However, the international purchasing committee of Allianz has taken up this issue and prepared a recommendation for the international Group companies. In the case of French subsidiary company AGF, the issue is analyzed by a questionnaire circulated to suppliers. All main suppliers are sent a sustainable development score based on various criteria related to sustainability plus the average score of suppliers offering the same products to be able to compare themselves.

> Suppliers

HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations

None.

HR4 Total number of incidents of discrimination and actions taken

This data is not collected at Group level. However our Code of Conduct and the Allianz Global Diversity Principles and Guidelines both include the issue of “non-discrimination” and require employees to behave respectively.

> Code of Conduct

HR5 Operations identified in which the right to exercise freedom of association or collective bargaining may be at significant risk, and actions taken to support these rights

This data is not collected at Group level, however the principles of the Global Compact that are included in the Code of Conduct, cover “Freedom of Association” (also applicable to activities in China). There are laws regulating the freedom of trade unions (e.g. Labor Management Relations Act in Germany) in many of the countries where Allianz is active.

> Code of Conduct


http://www.allianz.com/en/allianz_group/sustainability/management_policies/suppliers/index.html



HR6 Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the elimination of child labor

None.

HR7 Operations identified as having significant risk for incidents of forced or compulsory labor, and measures taken to contribute to the elimination of forced or compulsory labor

No operations identified. A dedicated policy is not available for that issue but it is largely regulated by law.

HR8 Percentage of security personnel trained in the organization’s policies or procedures concerning aspects ofhuman rights that are relevant to operations

None.

HR9 Total number of incidents of violations involving rights of indigenous people and actions taken

None.

Society Indicators

DMA We comply with all regulatory and legislative requirements in the countries we operate in. Our Code of Conduct guides all employees’ conduct both internally and externally. The Code of conduct specifies guidance on issues such as money laundering, bribery and corruption, relationships and conflicts of interests with external parties and customers.

The most important foundations of good business practice at Allianz are our corporate governance, our risk management and compliance systems. All these are designed to help ensure that we live our principles of responsible corporate behavior.Concerning social engagement, Allianz is currently developing guidelines for our philanthropic activities.

> Code of Conduct

> Good Corporate Governance

SO2 Bribery and corruption

The anti-bribery and anti-corruption mechanisms defined in the Code of Conduct.

> Code of Conduct

SO3 Percentage of employees trained in organization’s anti-corruption policies and procedures

No data available.However: We use various tools to help foster a compliance culture – for example, the Allianz Anti-Corruption Comic and our CoC training. By presenting topics in an innovative way we strive to find a direct way into our managers and employees minds and hearts





SO5 Public policy positions and participation in public policy development and lobbying

Donations in Germany by Allianz SE are made once a year to political parties, otherwise no promotion, no advertisements, no support for political foundations or other activities. The donations are precisely one Euro above the limit requiring disclosing/reporting of donations as specified in the (Parties) Act.

SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country

Information only for Allianz Deutschland AG: In each case €50,001 to the political parties CDU, CSU, FDP, SPD, Bündnis90/Die Grünen; in each case €10,000 to the party youth organizations Grüne Jugend, Junge Union Bayern, Junge Liberale, Junge Union, Jusos.

SO7 Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes

Antitrust and monopolies: three antitrust suits (Germany, Hungary and Italy)

Anti-competitive behavior: none.

> 20-F

SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations

Sanctions number fewer than 20 with a value of respective fines below €15 million.

Financial Services Sector Supplement – Social Performance

Corporate Social Responsibility

CSR1 CSR Policy Our strategy is governed by our Code of Conduct, our Sustainability Principles, our mission statement and values and our policies relating to specific sustainable development topics (e.g. Climate Change Policy, Diversity Guidelines, Group Risk Policy).

> Mission and Value Statement

> Management & Policies

CSR2 CSR Organization In 2008, a new department Group Social Opportunities (GSO) was created under the Holding structure. The head of this department reports directly to the Board Member of Finance, Dr Paul Achleitner. GSO incorporates the sustainable development office for sustainable development management, gives guidance to all climate change activities and heads special project offices on strategic partnerships, microfinance, social employee engagement and social finance. The new department of seven regular employees is supported by the Sustainable Development Strategy Team a top management advisory panel. A network of several topical working groups, such as the international environmental managers group are coordinated and guided by GSO.

> Organization

CSR3 CSR Audits The Sustainability Strategy Team evaluates and approves the sustainability strategy and performance. The result is an improvement of performance through the identification of concrete needs for action. Additionally, external assurance for the Environmental Management System data is conducted.

> Our Strategy


http://www.allianz.com/en/allianz_group/sustainability/our_strategy/mission/index.html




http://www.allianz.com/en/allianz_group/sustainability/our_strategy/organization/index.html


CSR4 Management of sensitive issues

The Group policy “Compliance and Anti-Laundering Policy” addresses a range of issues including bribery and corruption and sets standards for all Group companies.

CSR5 Non-compliance “Pursuant to industry-wide investigations, several of our U.S. subsidiaries have received requests for information from state insurance regulatory authorities and attorneys general relating to contingent commissions and other industry practices. These activities have led to joint actions and inquiries by these governmental agencies, in the course of which carriers and intermediaries have entered into settlements that may signal a shift in the industry toward more transparency with respect to intermediary compensation. Our U.S. subsidiaries are cooperating fully in these inquiries.”

> 20-F

CSR6 Stakeholder Dialogue Understanding our stakeholders’ expectations is key to our sustainable development strategy. From making sure that we have a good relationship with suppliers, to facing up to the challenges of climate change, we strive to communicate with our stakeholders about the real issues that affect them, and find ways in which we can actively respond. Our biannual Stakeholder Survey allows us to check if we are meeting stakeholder expectations. We intend to adjust our sustainable development strategy based on these findings. We will ensure our strategy tackles the material issues and implement an approach to address the new expectations of our stakeholders.

> Materiality


Internal Social Performance

INT1 Internal CSR Policy The Allianz Group Sustainable Development initiatives are guided by our updated value and mission statement and our policies and guidelines from Code of Conduct to the Group Risk Policy and the Sustainable Development Principles.

> Mission and Value statement

> Management & Policies

INT2 Staff turnover and job creation

In 2007, Group companies hired a total of 23,333 new employees. 27,026 employees left the Group. Compared to 2006, the overall fluctuation rate increased by 5.1 percentage points to 17%. This is higher than in previous years as an effect of strategic restructuring and the inclusion of seasonal employees. The fluctuation rate represents the total employee turnover within the organization.

INT3 Employee satisfaction Local Allianz companies are required to run an own employee engagement survey and results are covered in the strategic HR scorecard.

A global Leadership Culture Survey is in place which aims to align the strategies of company leaders with Allianz objectives.

> Employees










INT4 Senior management remuneration

The Supervisory Board received a total of €1,565,305 in compensation.

The maximum sum for each of the two variable remuneration components is € 24,000. This means that with the fixed sum of €50,000 the maximum total regular compensation for a Supervisory Board member amounts to € 98,000. This maximum amount is achieved when the previous year’s earnings-per-share has risen by 16.0% and when this indicator has further improved by a total of 40.0% or more over the last three years. If there has been no improvement in corporate earnings-per-share during the relevant period (i.e. the past fiscal year or the past three years), no performance-based remuneration will be awarded.

The Board of Management received a total of €45.894m. The remuneration consists of fixed and variable pay components and it is designed to support sustained value-oriented management performance. To achieve this objective a significant portion of overall remuneration is variable. It is a three-tier incentive system which includes short-term and mid-term cash bonus plans and equity related long-term incentives. The overall remuneration of individual Board Members is dependent upon their delegated role and accountability, individual performance, achievement of the financial goals of the Allianz Group and of the respective business unit, as well as the evolution of the Allianz SE share price. The remuneration of the Board of Management is set by the Personnel Committee of the Supervisory Board.

> Annual Report 2006, p.19–20

> Annual Report 2006, p.15–19

INT5 Bonuses fostering sustainable success

No data within the Allianz.

INT6 Female-Male salary ration

Must not be published.

INT7 Employee profile Proportion of handicapped: data only available for ADAG: 3.9%.

Performance to Society

SOC1 Charitable contributions

€60m (see EC1).

SOC2 Economic value added Economic value added: EVA®, after minority interests,reached €3,928 million in 2007 and the return on riskAdjusted capital 2) was 21.4%.





Suppliers

SUP1 Screening of major suppliers

Harmonization of procedures is currently discussed in the Allianz International Purchasing Committee. A recommendation has already been made to adopt appropriate international guidelines. A draft “Ethical Business Practices in Purchasing and Supply Management”, as well as an “Operative Purchasing Manual” have been created and documented. However, there is no official Group-wide purchasing yet. Pursuant to the German tender and procurement guidelines, suppliers are inspected for ecological aspects. Also, unfair competition on the part of the suppliers in the tender process will lead to exclusion from tender procedures. French company AGF and Italian company RAS also have environmental and social/ethical guidelines.

SUP2 Supplier satisfaction Feedback supply chain: A number of the Group companies conduct a feedback process and satisfaction survey with suppliers.

Retail banking

RB1 Retail Banking Policy (socially relevant elements)

The policies applicable to banking business (especially the “Principles for Managing of Reputational Risk” and the Environmental Manual) are also applied in the Private & Corporate Clients division.

RB2 Lending profile By the end of 2007 Dresdner Bank had a credit volume of €113.0m. This is split into about €63.5 billion to industrial clients (56%), €38.1 billion private clients (34%) and €11.4 billion to the public household and credit institutes (10%).

RB3 Lending with high social benefit

Dresdner is very active in Renewable Energy financing and one of the leading European banks in emissions trading. Since 2006, Dresdner Bank has offered a study credit, which is open to all students irrespective of their social status.

Investment banking

IB1 Investment policy (socially relevant elements)

AZ is in the process of defining “sensitive areas” and giving guidance for behavior (reputational risk management). Dresdner Bank including the investment banking business of Dresdner Kleinwort (DKIB) operates on the basis of the “Principles for Managing Reputational Risk” of Dresdner Bank. The Commitment Committee (COMCO) is the key decision-making body for sensitive transactions and projects of the investment banking sector. It carries out checks and ensures that no serious non-financial risks, including reputational risks, are entered into.

IB2 Customer Profile: Global Transaction Structure

Dresdner Kleinwort (DKIB) only transacts business with customers who pass its standard process for Client Take-on and Anti-Money Laundering. Highly sensitive transactions are also are reviewed with the COMCO Secretariat and – if necessary – with the full Commitment Committee.

IB3 Transactions with high social benefit

Dresdner Bank takes account of social and ecological aspects relating to risk and has signed the Equator Principles. Its project financing activities are currently limited to Renewable Energy and Public Private Partnership projects.

Asset Management

AM1 Asset management policy (socially relevant elements)

RCM: The implementation of socially relevant elements in our asset management policy is driven by the RCM Sustainability Research Team. A fundamental role of the team is to share its expertise in the consideration of environmental, social and governance factors alongside mainstream company analysis in order to identify risks and opportunities that, as yet, have not been fully priced by the markets, thus supporting enhanced stock selection for the benefit of RCM‘s investment decision makers.

AM2 Assets under Management with High Social Benefit

0.6%. > Goals

AM3 SRI Oriented Shareholder Activity

The Sustainability Research process is focused on stock and sector research and analysis which consider, among others, social factors such as the implementation of a human rights policy, evidence of employee training and education, existence of equal opportunity policies, worker rights to collective bargaining, health and safety policies. Companies are evaluated relative to peer performance in accordance with relevant and material indicators. Research is informed by regular company meetings and interaction with the sector analysts, which provides the foundation for the generation of investment ideas for clients. RCM has signed the Principles for Responsible Investment, an investor initiative in partnership with UNEP Finance Initiative and the UN Global Compact.

Insurance

INS1 Underwriting policy (Socially relevant elements)

Different policies are applied depending on the division. Their contents are not published.

INS2 Customer profile There is no customer profile applicable across the Group.

INS3 Customer complaints See indicator P8.

INS4 Insurance with high social benefit

Allianz has a record of various insurance products with a high social benefit across life/health and non-life business units.

> Click here to see a complete list of all products with social value added







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