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Allianz SE

PRI reporting framework 2019

You are in Strategy and Governance » Governance and human resources

Governance and human resources

SG 07. RI roles and responsibilities

07.1. Indicate the internal and/or external roles used by your organisation, and indicate for each whether they have oversight and/or implementation responsibilities for responsible investment.

Roles

Select from the below internal roles

          Regional CIOs
        

Other description (1)

          please see SG 07.4
        

07.2. For the roles for which you have RI oversight/accountability or implementation responsibilities, indicate how you execute these responsibilities.

Through board mandates, RI as part of investment policies, rules and standards.

07.3. Indicate the number of dedicated responsible investment staff your organisation has.

30 Number

07.4. Additional information. [Optional]

NOTE: We do not feel that a fully comprehensive and complete representation of our governance approach is possible within the boundaries of SG 07.1.

Please find a description of our Governance Approach to responsible investment below (see also the Chapter Managing Sustainability in the 2018 Group Sustainability Report of Allianz Group):

At Allianz SE, all ESG related integration-activities are centrally coordinated by the ESG Board. The ESG Board consists of three Allianz SE board members, responsible for

  • the proprietary investments,
  • the asset management business unit (PIMCO and AllianzGI), and
  • the CFO of Allianz Group (as of January 1, 2018).

The ESG Board sets the Allianz Group ESG agenda and decides on yearly work-plans for further integration of ESG into our insurance and investment activities. 

With regard to responsible investment, the ESG Board

  • determines the overall ambition level for ESG integration into AZ proprietary investments,
  • determines the specific ESG requirements towards Asset Managers, which will be incorporated in the RfP process and the Asset Manager selection process for new mandates, and
  • receives regular updates on status of implementation and decides further implementation steps.

Members of the Board of Management of Allianz SE:

The Allianz SE Board Member responsible for Investments holds responsibility that respective ESG Board decisions, which regard responsible investment are implemented and holds responsibility for process-oversight of the ESG integration into Allianz' insurance investment portfolios.

Chief-level Staff:

The Group Chief Investment Officer (CIO) of Allianz Investment Management (AIM) holds operative responsibility for carrying out ESG integration measures.

The Managing Director of Allianz Investment Management (AIM) holds monitoring responsibility of the ESG integration into investments. He further coordinates:

  1. the efforts of AIM Financial Control (AIM FC) in implementing concrete ESG requirements for the assets of Allianz insurance investment portfolios (proprietary assets).
  2. the efforts of AIM Asset Manager Management (AIM AMM) to consider the ESG approach and resources in the selection and regular reviews of Asset Managers.

Portfolio managers/external managers:

Per the ESG Functional Rule for Investments, all asset managers investing Allianz insurance investment portfolios are systematically required to develop and implement an ESG approach (process in place since late 2013).

Due to the range of asset classes we own around the world, the Functional Rule does not provide prescribed or standardized approach to how ESG integration has to be implemented by asset managers. Instead, the responsibility for defining the best or most suitable ESG approach for a specific investment portfolio rests with the respective asset manager. Allianz Global Investors and PIMCO are required to implement the Allianz ESG Scoring approach for core insurance asset manadate under their management on behalf of the Group.

Implementation is carried out by our mandated asset managers.

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SG 07 CC. Climate-issues roles and responsibilities

07.5 CC. Indicate the roles in the organisation that have oversight, accountability and/or management responsibilities for climate-related issues.

Board members or trustees

Chief Executive Officer (CEO), Chief Investment Officer (CIO), Chief Risk Officer (CRO), Investment Committee

Other Chief-level staff or head of department

Portfolio managers

Investment analysts

Dedicated responsible investment staff

External managers or service providers

Other role, specify (1)

Other description (1)

          Team within Corporate Responsibility
        

07.6 CC. For board level roles for which have climate-related issues oversight/accountability or implementation responsibilities, indicate how these responsibilities are executed.

Allianz SE has a divisional Board structure based on functional and business responsibilities. Business-related divisions reflect our business segments Property/Casualty, Life/Health, Asset Management, and Corporate and Other. In 2018 they were overseen by five Board members. The following divisions focus on Group functions, along with business-related responsibilities: Chairman of the Board of Management; Finance, Controlling and Risk; Investment Management; Operations; Human Resources, Legal, Compliance, and M&A; Business Transformation. For further information on Board of Management members and their responsibilities, please refer to the Allianz Group Annual Report 2018, page 10.

The Allianz Group has had a Climate Change Strategy in place since 2005, which steers our insurance and investment business and is regularly updated. Within the Group, diverse functions and committees steer sustainability topics within their scope of influence.

The highest governing body for sustainability-related issues is the Group ESG Board. Three Allianz SE board members host the ESG Board, meeting quarterly. It owns corporate responsibility and climate-related topics and oversees the Allianz Group Climate Change Strategy. Thereby it steers the whole corporate responsibility agenda, including climate-related topics; this includes the integration of climate and ESG aspects into all business lines and core processes dealing with insurance and investment. It also informs and involves the Board of Management on relevant topics and activities at least twice a year. It also reviews and recommends policy proposals for consideration by the BoM and relevant Board committees. Functional departments directly update the Group ESG Board on material sustainability issues.

See also SG 07.4 for further information on the ESG Board's responsibilities and oversight.

The Group Finance and Risk Committee (GFRC) consists of members of the BoM and oversees risk management and monitoring, including sustainability and climate risks. It also serves as an escalation point based on analysis and deliberations within the Group ESG Board. Risks identified as emerging and/or significant are addressed either in the GFRC or the Group Underwriting Committee (GUC). The GUC consists of Members of the BoM, the Group Chief Risk Officer, Chief Underwriting Officers, and other executives of the Group. It monitors underwriting business, as well as its risk management and strategy and develops an underwriting policy.

For more information on our risk governance and committees see Allianz Group Annual Report 2018, pages 12f. and 63f. and on our governance approach see the Chapter "Managing Sustainability" in the 2018 Group Sustainability Report.

The Board of Management reports regularly and comprehensively to the Supervisory Board on business development, the company’s financial position and earnings, planning and achievement of objectives, business strategy, and risk exposure. Climate-related issues are part of these regular updates where relevant.

07.7 CC. For the management-level roles that assess and manage climate-related issues, provide further information on the structure and process involved.

The Allianz Group Corporate Responsibility department, and particularly the Group ESG Office, including a team dedicated to Climate Integration, is responsible for steering the integration of ESG and climate aspects into core investment and insurance activities and acts as the Executive Office of the Group ESG Board. It also handles reporting on non-financial matters and supports operating entities in integrating the Group’s strategic approach and policies.

Key insurance operating entities, our internal asset managers, and the complete investment management function Allianz Investment Management (AIM) have well-established dedicated climate and ESG functions and practice, which eventually also report to Board level.

At AIM, the Investment Management Board (IMB) oversees the implementation of the climate and ESG strategy for Allianz’s proprietary investment portfolio of EUR 672.8bn (FY 2018). This includes regular discussions and decisions around operationalization of the portfolio decarbonization and SBTi, analyses on asset stranding in climate scenarios, as well as engagement dedicatedly on climate aspects. Within AIM, climate and ESG is steered at IMB level, with the managing director in charge of the implementation.

ESG specialists and/or representatives from different local operating entities, global lines, and Group centers come together in the ESG Working Group to develop and discuss projects and proposals for ESG and climate integration in the business.

Specifically for climate change, we have a Climate Contact Group (CCG), consisting of experts from across the Group, exchanging and developing proposals on climate integration into business. Input from the CCG informs top management and Group ESG Board.

Additional bodies and functions within the Group monitor and analyze market, technological as well as regulatory trends and developments – insights are shared with relevant stakeholders. In 2019, we are further strengthening the Group-wide network on climate and ESG-related matters.

Moreover, several units also have dedicated competence centers on promoting low-carbon technologies: Allianz Capital Partners, Allianz Global Investors, Allianz Global Corporate & Specialty, Allianz Climate Solutions, and others.

For more information on our risk governance and committees can be found in the Allianz Group Annual Report 2018 on page 74ff. and on our governance approach see the Chapter "Managing Sustainability" in the 2018 Group Sustainability Report.

07.8 CC. Explain how the organisation engages external investment managers on the TCFD recommendations and its implementation.


SG 08. RI in performance management, reward and/or personal development (Private)


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