1.Allianz GroupHighlightsSustainability Performance 2011

2. Cover imageMarch 11, 2012, marked the one year anniversary of the earthquake and tsunami that devastatedJapans northeastern region, left around 19,000 people dead or missing, and triggered the worlds worstnuclear crisis since the 1986 Chernobyl disaster. Such tragedies resonate around the world, with citizensgathering in solidarity to pay their respects, shown here by releasing biodegradable lanterns into thesky. Learn about Allianz contribution to disaster relief and rebuilding efforts on page 19.This document presents selected highlights of Allianz sustainability performance in 2011. Please referto www.allianz.com/responsibility for more in-depth information. This document together with ourcomprehensive information online is part of our efforts to achieve excellence in transparency on oursustainability performance. This is demonstrated by our GRI A+ rating and our commitment to thenewly established German Sustainability Code (Deutscher Nachhaltigkeitskodex). 2011 is the first yearthat we are reporting in accordance with the principles of this Code. We are one of the first companiesto do so.The contents of this report are accurate as of March 16, 2012.2 3. Contents 4CEO STATEMENTMichael Diekmann on the importance of sustainability forAllianz 6SUSTAINABILITY AT ALLIANZA proactive approach now and in the future 8ECONOMICWe focus on customer loyalty, brand recognition,responsible product offerings and sustainability ininvestments 12 SUSTAINABILITY IN PRACTICEAllianz invests in the worlds first VCS certified REDDproject and offers microinsurance that protectslivelihoods 14 ENVIRONMENTALWe successfully reduce energy consumption, travel andpaper consumption to lower our carbon footprint 16 SOCIALAllianz fosters a diversified workforce, top talent andmutually beneficial engagement with local communities 20 GOVERNANCEAllianz adheres to strong standards of corporategovernance and works across sectors to develop solutionsfor the greatest issues of our time 22 RECOGNITION OF OUR PERFORMANCE 3 4. CEO STATEMENTForewordWhen the first Earth Summit was held in Rio 20protection (Source: International Energy Agency). Whichyears ago, presumably no one foresaw our future makes it clear that this task is doable, if institutional andthe way it actually turned out. A year of crises like private investors as well as industry and small to medium2011, with 100-year floods in Australia and Thai- enterprises join forces, and if political conditions remainland, the nuclear meltdown in Japan, the debt crisispredictable and stable.threatening the Euro, and the Arab Spring not evenHollywood could have persuaded us to believe in In Europe in 2010, for the first time, more peoplesuch things. Yet from todays vantage point, 2011 retired than entered the job market. This had beenhardly seems any different from the years that went foreseen for decades but it is now becoming a day-before. Even this drastic an accumulation of crises to-day reality.and changes does not feel unfamiliar to us. Fewer and fewer premium payers will have to providefunding for more and more recipients of benefits. And, atThese more intense conditions also pose a challenge tothe same time, they will have to pay more to provide forAllianz as an insurer and asset manager. Our stakehold- their own retirement than their parents and grandpa-ers today benefit because we prepared our company rents generations did. So business as usual cannot bein time to face the challenges of our era. Thats why wethe solution. With the first Berlin Demography Forum,were once again able to keep our promise to our clients Allianz has now established an international platformin 2011, delivering benefits of EUR 86 billion withoutwhere science, government, society and business canabandoning the successful course of operating profita-search for better alternatives together.bility that we have established over the past few years.Our hopes for 2012 are focused on effective governmentIn 2011, Allianz addressed these two challenges in-policy decisions and on sustainable progress in reducinghouse.government debt and promoting healthy growth.Allianz is one of the worlds largest investorsBut the list of homework that government, society and in renewable energies, and our total directbusiness must complete together is even longer. Allianz investments in this field reached EUR 1.3 billion inis especially concerned with two challenges:2011 and we plan to further increase them.The energy turnaround in Germany, and we hope inAdditionally, we were two years early in achieving ourthe EU as well, must now be followed by a suitablegoal of reducing our CO2 emissions by 20 percent; in fact,business environment for investors like Allianz towe even exceeded it. For this reason we extended ourinvest in renewable energy installations, up-to-datereduction target: by 2015 we want to achieve a total CO2energy networks and energy efficiency projects. reduction of approximately 35% per employee, focusingToday, assets managed by life insurance companies and on energy consumption as our biggest lever. Further-pension funds total up to USD 55 trillion globally. Theo- more, from 2012 we will compensate for any remainingretically, one percent of this amount would be enough toemissions with project investments that also advancefinance the annual efforts for sustainable global climate climate protection in emerging economies.4 5. Just as systematically, we are preparing Allianz, as a sustainable employer, for the consequences of demographic change. Long-term succession planning, which also takes popu- lation aging into account, is already in place. At all levels of management, we are now experiencing gains in social and professional skills, which we can measure from our employees perspective through our annual Group- wide engagement survey. Our diversity efforts play an important role here. We furthermore ensure a mixture of generations, because its in our best interest to make the most of senior colleagues experience for everyones benefit. In the matter of women in management, we unquestion- ably had a need to catch up. We made changes in 2011 which are evident, for example, in the fact that Allianz appointed the first woman to its Board of Management an important signal. The same applies to our teams, which are becoming more and more international, justMichael Diekmann addressing the audience at the first Demography as our clients are.Forum in Berlin. For more information, please refer to page 20. The crises and changes that surround us pose a challenge. But they are also encouraging Allianz to By 2015 we want In Kenya, for example, Allianz is a participant in thetransform itself. Our guiding compass for success will to have achievedworlds first VCS certified REDD project (Reducing Emis-be our focus on our clients and commitment to sustaina-a CO2 reduction of sions from Deforestation and forest Degradation), not bility. These will enable us to detect the need for action, 35% only protecting more than 200,000 hectares of forest, but also preserving peoples living environment and creating as well as opportunities, at an early stage, and to keep our 142,000 employees in 70 countries working enthusiasti-per employee employment opportunities. In India, we are involved cally toward shared goals. in exchanging 8.5 million incandescent light bulbs for energy-saving lamps. With projects like these, Allianz fosters climate protection in emerging economies, taps attractive investment opportunities, and at the sameMichael Diekmann, time ensures that its own operations are 100 percentChairman of the Board of Management carbon-neutral. Allianz Group5 6. SUSTAINABILITY AT ALLIANZA proactive approach now and in the futureAllianz long-term business strategy is based on an in-depthunderstanding of the risks and opportunities facing the company notonly today but also in the future a strategy aimed at ensuring oursustainable and profitable growth. The sovereign-debt crisis in the Euro zone and made to customers today. A strong market and customer a string of natural disasters made 2011 anotherorientation thereby drives Allianz business strategy as exceptional year for financial services providers. the company continues to build long-lasting, mutuallybeneficial relationships with all of its stakeholders. AllianzK E Y F IG U R E S The frequency and scale of natural disasters reinforcedstrives to be the most trusted partner for its customers the sizeable potential threat of climate change forand has been recognized as the loyalty leader in a insurers, especially when combined with the trends ofnumber of markets. increasing urbanization and concentrated wealth accu- mulation. Allianz contributes to a low-carbon future byOur employees commitment is crucial to this success. As103 bndeveloping relevant products and services and providingsuch, both customer and employee satisfaction are key total revenuesboth financing and insurance to renewable energy steering metrics for Allianz. We attach great importance projects. At Allianz, climate protection is also a viableto fostering outstanding leadership, continuous talent7.9 bnbusiness and investment case.and personal development. To support this, Allianz offers operating profit employee engagement opportunities through a variety As we are doing our part to mitigate the impacts ofof volunteering programs that are mutually beneficial to179% climate change, we are also playing an active role inour employees and to society.solvency ratio developing a solution for the European sovereign debt crisis. Allianz is firmly committed to European unity, and In 2011, Allianz continued to integrate sustainability into 1,657 bn as such, is playing a constructive role in engaging with its business to contribute to the companys sustainableassets under policymakers to develop lasting solutions to the crisis. and profitable growth. Our approach combines long-management As one of Europes largest institutional investors with aterm economic value creation with a holistic approach presence in all European markets, Allianz naturally has ato environmental stewardship, social responsibility and self-interest in mastering this crisis.corporate governance. The following sections presenthighlights of Allianz sustainability performance in 2011. Insurers, by the very nature of their business, pursue a long-term perspective so they can uphold the promises6 7. Allianz Magazin Title 1/2011Allianz4Good Network Board of ManagementWith its decentralized organization and presence inaround 70 markets worldwide, Allianz strong gover-Allianz4Goodnance framework helps to drive sustainability across theGroup and ensures consistent implementation of Allianzcorporate responsibility (CR) strategy in the global busi-ness. The Allianz4Good Network was set up in 2011 toAllianz4Good Networkstrengthen this governance and steer CR activities acrossthe Group. It consists of representatives of our largestentities and regions and also acts as a sounding board for Corporate responsibilityGroup-level CR activities. units of subsidiariesSustainability at AllianzWe invite you to learn more about ourapproach and performance atwww.allianz.com/responsibility 7 8. ECONOMICSustainability in aprofitable businessAt Allianz, we grow our business by increased customer satisfactionand brand recognition, supported by innovative products andservices and thoughtful investments while simultaneously takingresponsibility for environmental and societal needs. A customer-centric business KEY FIGURES A strong customer focus is at the heart of the overall Allianz strategy. Allianz strives to be the best-in-class and most trusted partner for its customers and has been recognized as the loyalty leader in a number of markets. Efforts to strengthen Allianz robust brand positioning are 52% Allianz companies with more loyal and helping to convey the stability and security of the Groups satisfied customers than their local global organization.competitors We regard customer feedback as a vital tool in moni- toring customer satisfaction and ensuring an ongoing improvement in our products, services and processes. 28% Allianz companies recognized as loyalty Allianz directly collects feedback from about one million leaders in their market customers annually on key interactions, such as after claims handling or sales, which provides invaluable insight. What is more, on an annual basis, Allianz measures itself against relevant local competitors. 78 mn total number of customers8 9. A powerful brandThe Allianz Group is active in about 70 countries, withCustomers by region/countrycurrently 80% of total revenues branded as Allianz. Ouras of December 31, 2011brand provides identification and orientation for theGroups many customers and stakeholders. Allianz builds Anglo Markets: 7.0on a strong brand heritage that is based on two pillars:NAFTA Markets: 2.4outstanding delivery in products, services and sales toGermany: 24.4customers; and branding that is insightful, consistent andimplemented from a global perspective. GrowthWithin the financial services sector Allianz was rankedMarkets: 37.1 Rest of German-among the top performers in the Interbrand global Topspeaking countries: 2.7100 brand ranking. On the basis of this ranking, the valueFrance: 6.4of the Allianz brand increased to approximately USD5.3 bn in 2011 (2010: USD 4.9 bn), with our brand value Italy: 7.4growing faster than any other European financial servicesprovider.Rest of Europe & South America: 12.6The consistent delivery on Allianz brand positioning as aTrusted Partner sets us apart from the competition andcreates a sustainable, long-term competitive advantage.The Allianz brand is an important and valuable assetand therefore an essential element of the companysbusiness strategy. In Interbrands Best Global Green Brands report 2011 Allianz was ranked as the Best Global Green Brand in the Financial Services sector. The ranking assesses brands by consumer perception of green activities and demonstration of environmental performance. Interbrand refers to the companys wide variety of sustainable development activities, broad range of green products, investment in wind and solar energy, and internal emissions targets as evidence of convincing green credentials. 9 10. ECONOMIC Allianz, a successful manager of risks and a large-scale institutional investor, is developing products and services, as well as integrating sustainability in its investment management to address key social and environmental challenges. Microinsurance Allianz provides a financial safety net to millions of Mali and Malaysia. Allianz is also striving to better mea- people in Asia, Africa and South America through its sure and control the financial and social performance of KEY FIGURES microinsurance offering. For poor families in emerging microinsurance by applying key performance indicators, markets and developing countries, microinsurance ise.g. claims ratio, that have been developed as part of the a means of managing the existential risks associated public-private partnership with the German develop- with natural disasters, accidents and illness. While profitment organization GIZ. expectations are much lower than in the traditional insurance business, there is a strong belief thatPlease see page 13 for examples of how these products34.5 mfamiliarizing low-income customers with the concept of enhance livelihoods.revenues from ourinsurance in general, and the Allianz brand in particular, microinsurancewill pay off over the years as these customers move up portfolio the economic ladder. Green solutions2.6 mOur development partnership withThe Allianz Group has developed more than 80 productsmicroinsuranceand services that help mitigate climate change or take itscustomersAllianz improves our development environmental impact into account. The solutions rangefrom asset management to insurance and assistance. work in enhancing access to micro- The increasing number of green products and services insurance for the worlds poor.offered is a reflection of the need to prepare for thenegative effects of climate change on Allianz business Allianz provides expert insuranceand customers, as well as to mitigate the associated knowledge which, combined with our economic risks. global project activities, contributes effectively to a better risk protectionSustainability in third- for vulnerable households in our party asset management partner countries.In recent years, environmental, social and governance Michael Roth, GIZ Project Manager of the develoPPP.de Project on factors have become more important in investment microinsurance between Allianz and Deutsche Gesellschaft fr analysis and asset management, with private and insti- Internationale Zusammenarbeit (GIZ) GmbHtutional investors increasingly considering these factorsin their investment decisions. Allianz is meeting this Despite a decline in the microinsurance customer basedemand, offering a range of Sustainable and Responsible and revenues in 2011, as a result of fallout from theInvestment (SRI) funds across the major asset classes so-called microfinance crisis in India, Allianz has furtherthrough its third-party asset managers (e.g. the Allianz expanded and developed its microinsurance business.Global Sustainability Fund). In 2011, Allianz managed We entered three new markets in 2011: Burkina Faso,3.4 bn in SRI funds.10 11. Sustainability in proprietaryinvestmentsKEY FIGURES Since insurance companies are not only risk managersCarbon investments are not justbut also large-scale institutional investors, investmentmanagement is thus an integral part of Allianz business.a voluntary means of becomingIntegrating sustainability into investment strategies iscarbon-neutral, but also a viablenot only important for Allianz third-party asset man-Investments inagement, but also influences decisions on proprietarybusiness case for Allianz withrenewable energybusiness. competitive returns.projects reachedIn 2011, the Allianz Group signed the United NationsArmin Sandhvel, CEO, Allianz Climate Solutions1.3 bn Principles for Responsible Investment as an asset owner,in 2011 joining several of the Groups third-party asset managersas a signatory. In 2011, Allianz undertook its first-ever carbon invest-ment in what are known as REDD projects (ReducingFurthermore, as large institutional investors, insuranceEmissions from Deforestation and forest Degradation).companies are important players in financing a low- These projects aim to slow worldwide deforestation incarbon economy. Allianz sees renewable energies as an developing and emerging countries. From 2012, Allianzattractive growth market and is building up a long-term will use certificates generated from such investmentportfolio in wind energy and solar power. projects to neutralize its remaining CO2 emissions frombusiness operations.Please see page 12 for more on the REDD project.Solutions for private clients: Energy Package &Energy Advisory Services (Allianz Germany) Sustainability at AllianzA package for home-owners includes an energy calculator, diagnosis Full information on our economic performanceand evaluation of energy performance of the property, investment and strategic approach can be found online:advice for improving energy efficiency and domestic CO2 emissions,service by expert craftsmen for upgrading the property, and specialwww.allianz.com/responsibilityfinancing for modification of the building.11 12. SUSTAINABILITY IN PRACTICEREDD investmentsGlobal deforestation is advancing alarmingly and significantlycontributes to the worlds greenhouse gas emissions. Allianzacquired a stake in Wildlife Works Carbon (WWC), the leadingdeveloper of REDD projects. The projects aim to slow worldwidedeforestation in developing and emerging countries.The area is threatened by thoseDeforestation currently accounts for around 17%who slash and burn for subsis- of global greenhouse gas emissions. The solutiontence agriculture and illegalcharcoal production, which is sold proposed by the United Nations program REDD isto the local population as a cooking convincingly simple: put a monetary value on forestsfuel. After slashing and burning the and their ability to store carbon, and within a fewindigenous trees and land are leftuseless. Recovery of it, another part years cutting down trees will be like burning money.of the project, will take decades. Allianz sees REDD as an attractive investment opportu- nity, offering both a competitive financial return and a The customer base of the high level of social and ecological sustainability. By beingillegally made charcoal is an early investor in this up-and-coming market, Allianz isundermined by the productionof carbon-neutral charcoal. Thegaining experience at an early stage and benefiting fromlocal community produces the the opportunities it offers.bricks using sustainable methodsfrom bush trimmings. The cornerstone project of WWC is the protection of the Kasigau Corridor in Kenya against deforestation. The pro- ject will prevent the emission of 36 million metric tons of CO2 over 30 years equivalent to about twice the annual CO2 emissions of the City of Berlin. Every metric tonFurther to preventing deforesta- saved generates one emission certificate that meets thetion, the project makes the land requirements of the Voluntary Carbon Standard and themore profitable for the localcommunity. Expansive nurseries Climate, Community and Biodiversity Alliance. In additionbuilt by the project grow variousto preventing CO2 emissions, the project successfullytrees and plants that can be soldprotects a migration corridor of endangered animals, asfor profit and that can be used bythe community to fulfill medicinal,well as providing employment for local communities andnutritional and fuel needs. The nur- education for the children.series are a further opportunity foremployment of local communitymembers. The project has built schools forlocal children. 12 13. MicroinsuranceAn estimated 2.6 billion people live on USD 1.25 to 4 per day. Poorpeople are more severely affected by natural disasters, accidentsand illness. They also lack the opportunity to save or to take outinsurance to hedge against these threats. Allianz offers a variety ofmicroinsurance products to more than two million customers.Allianz joint venture in India, Bajaj Allianz, demonstrates its reach to ruraland poor farmers with its Cattle Insurance Policy. The milk that cattle produ-ce earns income for farmers. Farmers pay as little as USD 5 to insure their cowsagainst disabilities that prevent them from producing milk or USD 14 to insureagainst death. Currently, over 100,000 cattle are insured by this product.Bajaj Allianz sees this product as part of its social responsibilityto extend insurance safety nets to poor families. Although we maynot be making significant profit from this portfolio, it helps Allianzto reach people in every corner of the country and build the Allianzbrand, since each animal insured bears a visible identification tagwith our name and logo.Dr. Ashok Patil, Associate Vice President Rural Insurance , Bajaj Allianz General Insurance Co. Ltd.Allianz Life Indonesias Tamadera microinsuranceproduct combines life insurance with a savings plan.Policyholders pay premiums as low as Rp. 10,000 (USD 1.2)per week for five years, during which time they are guaranteedcoverage for death and five critical illnesses: cancer, stroke,heart attack, kidney failure and serious burns. If no claimsare made at the end of the five-year term, the premiums arereturned to the policyholder in full. This fund acts as a savingsaccount primarily designed to fund childrens education. Ms. Nanik W., receiving claim payment of Rp. 2.5 million (USD 287) for a major burn. Sheoriginally became a customer to save for her childs education but then after a fire significantlyburned her hand the claim aided in covering her medical expenses.13 Find out more about our activities on www.allianz.com/responsibility 14. ENVIRON- MENTALTaking environmentalresponsibility seriouslyDespite the fact that financial services is a comparatively low-carbonsector, Allianz is committed to reducing its carbon footprint. Severalyears ago, we adopted a comprehensive Climate Change Strategycovering both our activities as a financial services provider andinternal business operations.In 2011, Allianz reduced CO2 emissions from itsthrough direct investments in carbon projects and willinternal operations by 6 percentage points fromthereby be carbon-neutral from 2012 onwards.2010. Our overall CO2 reduction since 2006 is now33% per employee. As Allianz overachieved its original As the main drivers of Allianz carbon footprint are ener-goal of a 20% reduction in 2010 two years ahead of gy consumption, travel and paper, reduction efforts focusschedule a new carbon reduction target has been seton these areas. Emissions from energy saw a significantfor 2015. By this date, we plan to reduce our carbon reduction in 2011 resulting from a decrease in consump-footprint by a total of approximately 35% per employee tion, an increase in renewable energy sourced and lesson the 2006 base year. Although already seeminglyfossil fuels in regional energy mixes. Despite increasedclose to this new target, our challenge will be to control demand for business travel, travel volume changed littleemissions as the economy continues to improve. from 2010 levels. Allianz global travel policy, introduced in 2010, ensures that employees avoid unnecessaryIn addition, Allianz will compensate for all remaining travel and, as far as possible, use lower-carbon modes.emissions stemming from our internal operationsLastly, Allianz reduced overall paper consumption by 44% since 2006. The global print policy and a greater use of digital communication in our internal operationsCO2 performance 2006 - 2011* and correspondence with customers contributed to this - 0.3 achievement. Carbon reduction peremployee [%] -7.2-15.2 CO2 emissions per 3.763.74employee [metric t]3.48 -27.3 3.19-33.4 2.73 2.50 2006 20072008 200920102011 * Environmental performance reporting has been independently verified by KPMG.14 15. Allianz Tower, Jakarta In April 2011, Allianz Indonesia moved into its new headquarters in Jakartas central business district, Kuningan. The Allianz Tower, an elegant building boasting state-of-the-art green technology, embraces many aspects of environmentally sustainable design. The buildings advanced glazing technology aims to reduce heat accumulation and direct UV exposure from the sun, thus reducing the power required for air con- ditioning. In addition, the use of energy-saving bulbs in most of the office areas reduces electricity consumption. The Allianz Towers design allows approximately 70% of its grounds, covering nearly a hectare, to be used as a natural rain water absorber. This is important since Jakarta has a serious flooding problem. The building is also equipped with modern water recycling facilities. For instance, rainwater is collected from the roof and stored in water tanks in the basement. 80% of black water is recycled and used to flush the toilets and operate the air conditioning system, and only 20% of wastewater is discharged. The new tower combines elements of sustainable construction with a modern office space. We can protect the environment, while providing one of the best workplaces in Jakarta. Joachim Wessling, CEO, Allianz Life IndonesiaCompanies decisions and actions will eventually determine whetherSustainability at Allianzwe will be successful in limiting climate change. In WWFs work withAllianz, it has demonstrated its openness and understanding to being Full information on our environmentalpart of the solution, in operations and the business. The type of action performance and strategic approach can berequired in order to keep average global warming to below 1.5Cfound online:(compared to 1850) is fundamental and challenging - Allianz hastaken good first steps in that direction. www.allianz.com/responsibilityMatthias Kopp, Head Low Carbon Business & Finance, WWF Germany 15 16. SOCIALA focus on peopleAllianz social commitment is with two groups: its own employeesand the societies it operates in. The common denominator is a focuson people through sustained efforts to enhance the engagement,diversity and skills of its own employees, and to devote corporateskills and resources to help local communities.Promoting employee engagement,diversity and skillsThe exceptional commitment of Allianz employees andtheir dedication to providing excellent customer service K E Y F IG U R E S are crucial to the companys success. Allianz places greatemphasis on fostering outstanding leadership, as wellas continuous talent and personal development. Only byunlocking employees potential can Allianz achieve itsgoal of being a reliable partner to its customers. 19.2% women in executiveDiversity positionsAllianz recognizes the power of a diverse, inclusiveworkforce comprised of employees from different back- 33.3%grounds. Allianz understands that promoting diversity is female managersnecessary for any global company to be successful andhas implemented a number of initiatives to support thisMichael Diekmann, Chairman of the Board of Management of Allianz 52.3%goal.Group, addressing attendees of the 100 Women Sponsorship program. It is aimed at female managers preparing for top managementshare of women inpositions. overall workforceAs part of the efforts to promote the advancementof women at Allianz, in 2008 we set a global target ofincreasing the share of women in the talent pool forexecutive positions to 30% by 2015. A top management Allianz also made a joint declaration with other DAX 30mentoring program for women and flexible work-life companies of its commitment to increasing the share ofprograms, such as part-time employment or job sharing, female leaders in Germany: Allianz own commitment iswere part of the supporting actions taken in several to have 30% of management positions in Germany heldcountries in 2011. by women by the end of 2015.16 17. KEY FIGURESTalent management Developing employees skills and competencies across such a diverse global organization requires a common approach across the Group. Allianz strives to retain skilled employees, recruit and develop top talent and promote In 2011, Allianzhigh performers. invested A global talent management system enables the 88 m company to identify internal candidates and, importantly, in training supports systematic succession planning. Allianz also measures, uses strategic workforce planning to help secure theequivalent to afuture workforce as well as the talent pipeline for aglobal average ofperiod of up to ten years.667A class of Knowing Allianz, a high-level introductory program designedfor executives who have either been newly appointed or who have per employee recently joined the Allianz Group. Employee engagement Each year, Allianz collects feedback from employees, were invited to take part. The participation rate of 78% managers and Board Members to measure the overallwas 9 percentage points higher than in 2010. The survey level of engagement and identify its drivers. 2011 saw results are performance-relevant for our top manage- the second Group-wide employee engagement survey,ment, which generates a strong buy-in and ensures that which unified local surveys in gathering employeesthe survey findings are consistently acted upon. feedback. 116,229 employees from 66 Allianz companies Allianz Board member, Paul Achleitner at the inauguration of an Allianz day care in Munich, September 2011. On-site day care centers are seen as part of a portfolio of various initiatives to enhance its employees work-life balance, a key factor in ensuring long-term employee motivation and health, as well as in attracting new recruits. 17 18. SOCIAL A committed corporate citizen As a global company with a presence in about 70 countries worldwide, Allianz takes its responsibility to society seriously. By offering skills, time, money and other resources, Allianz strives to advance social well-being and provide financial and practical support to local communities. What is more, the international network of 16 Allianz- affiliated corporate foundations, such as the Cultural and Environmental Foundations, provides valuable support to the company in its role as a responsible and committed corporate citizen. Employee volunteering Engaging employees in social projects is a key compo- nent of Allianz responsibility towards society. Support is provided in developing effective solutions to critical Jay Ralph, Allianz Board member, teaching a 9th grade class as part of social issues by drawing on the companys corethe MFC program. competencies. Through the My Finance Coach (MFC) program, for example, Allianz and its partners aim to foster financial literacy among 11- to 15-year-olds. Familiarizing these young people with financial issues will help them to make educated financial decisions now and in the future. In 2011, more than 65,800 pupils were reached through the MFC program in Germany and 1,700 in Indonesia as the first location of the international roll-out. Moreover, the German UNESCO Committee declared MFC to be an official project of the UN Decade of Allianz employees working with the Homeless World Cup, an annual Education for Sustainable Development.soccer tournament for homeless people with 40 national teams, on improving their operational efficiencies. Allianz also shares its know-how and business skills with What is more, Allianz engages its retirees in helping socially committed organizations by engaging both solve social problems and promoting social integration employees and retirees. In 2011, Social OPEX, an Allianzby leveraging their wealth of expertise and experience. leadership development and employee volunteeringstartsocial, a social ideas competition run under the program which combines our internal quality approachpatronage of the German Chancellor Angela Merkel, (OPEX, OPerational EXcellence) with employee engage-aims to foster social innovation through a transfer of ment in the social sector, enabled such projects to be car- knowledge from the corporate sector to social projects. ried out in eight countries involving 44 Allianz employeesIn 2011, more than 100 retired employees took part in and 21 social entrepreneurs.the initiative, either as jurors, coaches or both.18 19. Corporate givingIn 2011, Allianz donated 22.2 m to address social,Following the severe earthquake and tsunami that hitenvironmental and cultural issues of relevance toJapan on March 11, 2011, more than 590,000 wasthe company and the societies in which it operates.collected in an international fund raising campaign,In addition to corporate giving activities, Allianz offers in which the total amount donated by our employeesits employees the chance to make donations to help the was matched by Allianz. Funds were made available tovictims of natural disasters, including a global platform to support the emergency relief and reconstruction effortsinvolve all of its employees in donation campaigns.of the Japanese Red Cross, a member of the international Red Cross and Red Crescent movement with which the Allianz Group has had a global partnership since earlyAllianz is an excellent partner 2011. Additionally, Allianz donated 270,000 for rebuil-for the Red Cross and we are ding efforts.delighted to have been able to enterinto this cooperation. Fixed, solidSustainability in practice Mun-Kuk Cheong, President & CEO Allianz Lifepartnerships allow us to provide Korea, received the Presidents Award of thelong-term, sustainable aid. This isKorean National Red Cross. This award is given to corporations and individuals who initiate volunteervery important, particularly whenactivities that contribute to regional development.it comes to preparing for future In 2011, 500 executives and employees working atcatastrophes. Allianz Life Korea carried out a number of voluntaryBernd Schmitz, Chairman of the German Red Crossactivities such as delivering briquettes for those who were in need of winter fuel and preparing food forIn light of several severe natural disasters in 2011, in-them. They also helped people with disabilities to gaincluding those in Australia, Japan, Thailand and Turkey, theemployment and hosted sports games for disabledAllianz Group, employees and subsidiaries donated to a children who are physically unable to play outside.variety of projects for immediate disaster relief as well asrebuilding activities. Sustainability at Allianz Full information on our social performance and strategic approach can be found online: www.allianz.com/responsibility 19 20. GOVER- NANCEPursuing highest standardsSince responsible and transparent leadership is critically importantto the long-term success of a company, Allianz pursues the higheststandards in corporate governance.At Allianz only promises that can be kept are madethey heavily impact the financial services sector and theand only risks that can be managed are taken. Riskworld economy. Policymakers at a national, regional andmanagement is not only a core competency but also global level are striving to find such solutions. Allianzan integral part of Allianz business processes.is firmly committed to European unity and is thereforeStrong corporate governance and transparency areplaying a constructive role in helping policymakers de-crucial to gaining and keeping the trust of Allianzvelop lasting solutions to the crisis. Hence, developingnumerous stakeholders. Allianz holistic approach ofsolutions to the European sovereign debt crisis was at themanaging and supervising the company according to forefront of Allianz engagement in 2011. As one ofcommonly accepted business principles, procedures Europes largest institutional investors Allianz naturallyand responsibilities ensures an effective corporate has a self-interest in mastering this crisis.governance system, which is essential for sustainablebusiness performance. Moreover, Allianz engages in regular discussions withpolitical, academic and societal circles on fundamen-Allianz compliance management system aims to ensuretal developments that have a strategic impact on thecompliance with internationally recognized laws, rulescompanys business.and regulations to promote a culture of integrity andsafeguard the companys reputation. Allianz Group-wide An example is the first Berlin Demography Forum, initi-Code of Conduct for Business Ethics and Compliance sets ated by Allianz and the German Ministry for Family, Seni-the standards for business conduct. In 2011, numerous or Citizens, Women and Youth, to discuss the challengesmeasures were undertaken to further strengthen theof demographic change.effectiveness of compliance management. For examp-le, the implementation of the Allianz Anti-Corruption Designed as an annual conference on a variety of topicsProgram continued with further training courses. Therelating to demographic challenges, the Forum offersaim of this compulsory training is to inform employeesa global, cross-party platform for dialogue that bringsabout the main anti-corruption and anti-fraud rules and together leading politicians, scientists, economists andprinciples, as well as the essentials of the Anti-Corruptionrepresentatives of civil society to debate possible routesand Gifts and Entertainment Policies. towards sustainable development. The first Forum,held in January 2012, furthered an exchange of ideason demographic change through evaluating existingDeveloping solutions throughapproaches to future challenges and devising entirelynew solutions.ongoing dialoguesSovereign debt crisis, financial crisis, Euro crisis: all these More on the Berlin Demography Forum can be found onpolitico-economic crises urgently require solutions since www.berlinerdemografieforum.org.20 21. Inauguration of the Allianz Forum In September 2011, Michael Diekmann inaugurated the Allianz Forum at Pariser Platz in Berlin, thus marking Allianz increased commitment to collaborating with other foundations on sustainability issues. Together with institutions from all walks of society, Allianz is searching for better answers to the pressing questions of our time, such as: Demography (ageing, health, migration, diversity) Environmental and climate protection Sustainable growth (protecting natural resources, fair trade, war on poverty) Intercultural dialogue and the future of EuropeAt Allianz, we have experts who arefamiliar with every little detail of complexregulatory issues. This is our added value.Political advisory work should not befocused exclusively on the single-mindedpursuit of the companys own businessinterests, but also on the interests of oursociety as a whole.Wolfgang Ischinger, Head Government Relations and Public Policy, Allianz GroupFormer German Ambassador to the US and UK 21 22. Recognition for ourperformanceAllianz is proud to have received awards across a breadthindices. As in previous years, the top scores achieved inof topics and geographic regions. We provide here a brief2011 represent an objective recognition of the high sus-sample of awards won by Allianz in 2011. Additionally, tainability standards Allianz sets for its business. We aresince Allianz is committed to increased transparency and very proud of our past achievements and will continue toaccountability on sustainability issues, performance datastrive for excellence going forward.are submitted to a wide variety of rating agencies andBrand Insurance CompanyAsset Manager EmployerFor the tenth consecutive year, For the second consecutive year, Allianz Global InvestorsAllianz China Life was awardedAllianz Germany won the Allianz Australia won the Best Germany was awarded the title the title of Chinas Ideal EmployerReaders Digest Pegasus Award General Insurance Companyof the best investment companyby Universum, the global leaderas the Most Trusted Brand inof the Year Award at the 2011by the financial magazine Capital.in employer branding. Allianzinsurance. Allianz Life Korea Australian Insurance IndustrySlovakia won the Best Employerwas selected as the Most TrustedAwards.2010/2011 Award, based onBrand amongst foreign insurersthe results of a large-scale studybrands by Digital Chosun Ilboconducted by Aon Hewitt.newspaper.Energy Management Financial InclusionSRI Funds Community ServiceFor the second consecutive year,Bajaj Allianz Life Insurance won For the third consecutive year, Allianz Life Insurance Co. ofAllianz Life Insurance Co. of the SKOCH Financial Inclusionfive SRI funds were awarded North America was honoredNorth America earned theAward 2011 for its execution the Novethic Label. Novethicby a Jefferson Award, a nationalprestigious Energy Star designa-of financial inclusion initiatives is a French label awarded toaward for outstanding public andtion for its campus in Minnesota. through life insurance acrossopen-end funds (pooled funds) community service.This award acknowledges Allianz India. that are transparent in their fundLifes attention to superior energyapproach, ESG characteristicsperformance and recognizes its and portfolio.headquarters as among the mostenergy efficient in the U.S.A. A comprehensive list of awards won can be found at www.allianz.com/responsibilityAllianz awarded SAM Gold Class again based on oursuperior performance in the Dow Jones Sustainability Knowledge at AllianzIndex with a score of 80. We invite you to tour through our interactive, dynamic Knowledge website, which explores a range of global issues in innovative ways.Allianz leads the Financials sector in Germany and isPlease visitranked second in Europe; globally, Allianz is amongst thetop 10% of the largest 500 companies, which places it in knowledge.allianz.comthe global Carbon Disclosure Leadership Index 2011.22 23. ImprintCopyright Allianz SE 2012PublisherAllianz SEAllianz4GoodKniginstrae 2880802 MunichGermanywww.allianz.comresponsibility@allianz.comProject responsibilityAllianz4GoodPress contactSpokesperson Corporate AffairsNicolai TewesCSR consultancyStakeholder Reporting GmbHwww.stakeholder-reporting.comArt directionheinrich+gretchen gbrwww.heinrichundgretchen.comImagesAllianz / GettyImages / ShutterstockPage 21, Wolfgang Ischinger: Kai MrkPage 19, JRCS medical team in Kamainishi: Patrick Fuller / IFRCWe would like to thank all of our colleagues and partners who have helped us to create this report.Further information on Sustainable Development at Allianz can be found atwww.allianz.com/responsibilityCautionary note regarding forward-looking statementsThe statements contained herein may include statements of future expectations and other forward-lookingstatements that are based on managements current views and assumptions and involve known andunknown risks and uncertainties that could cause actual results, performance or events to differ materiallyfrom those expressed or implied in such statements. The company assumes no obligation to update anyforward-looking statement.Closing date16th March, 2012The report is printed on 100% recycled paper with plant based oil as ink.23 24. Allianz SEKniginstrae 2880802 MunichGermany