Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 3.3% drop in total energy consumption since 2014
• Overall reduction in total Scope 1 and 2 greenhouse gas emissions of 3.5 percent
• Achieved BCA Green Mark certification for AIA Tower in Singapore

Social Achievements

• Over HK$30 million contributed to community programmes, benefiting more than 135,000 people
• 100% of employees received training on AIA’s anti-corruption policies and procedures
• Launched AIA Vitality, a science-backed wellness program

Governance Achievements

• Established anti-corruption training for all employees
• Incorporated ESG factors into investment decisions for close to 100% of invested assets
• Implemented Supplier Code of Conduct

Climate Goals & Targets

Environmental Challenges

• Collecting business travel data for operations across 18 markets
• Attracting and retaining talent in an increasingly competitive marketplace

Mitigation Strategies

• Improved data collection expertise, with three new markets submitting their travel data in 2016
• Continuous investment in staff, celebrating diversity and providing equal opportunities

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Guidelines, ESG Reporting Guide of the Hong Kong Stock Exchange, UNGC

Third-party Assurance: Internal assurance process

Sustainable Products & Innovation

• AIA Vitality

Awards & Recognition

• Various green building awards (LEED, BCA Green Mark)

Environmental Metrics

ESG Focus Areas

• Healthier, Longer, Better Lives
• Protection Gap
• Lifestyle-related diseases
• Ageing populations
• Urbanisation
• Pollution
• Climate Change

Environmental Achievements

• Achieved LEED Platinum certification for Two AIA Financial Centre in Nanhai, Foshan, China
• Reduced total energy consumption from 91,852,947 kWh in 2017 to 86,593,057 kWh in 2018
• Reduced total GHG emissions (Scope 1, 2, 3) from 57,842 tonnes of CO2e in 2017 to 55,761 tonnes of CO2e in 2018
• Became the first Hong Kong-headquartered asset owner to join the Principles for Responsible Investment (PRI)

Social Achievements

• Launched AIA Vitality wellness program, resulting in improvements in members' BMI, blood pressure, cholesterol, and glucose levels
• Reached approximately 25,000 children, parents, customers, and employees through football clinics with Tottenham Hotspur coaches
• Donated over US$5 million to community causes
• Employees volunteered more than 93,000 hours

Governance Achievements

• Formed an ESG Committee to oversee ESG strategy, policies, and disclosure
• Became a signatory to the Task Force on Climate-related Financial Disclosures (TCFD)
• Received a “Prime” rating from ISS-oekom and was included in the FTSE4Good Index Series for a second consecutive year
• Included in the Bloomberg Gender Equality Index for the third year

Climate Goals & Targets

Environmental Challenges

• Growing protection gap in Asia
• Increasing prevalence of lifestyle-related diseases
• Ageing populations straining social welfare systems
• Rapid urbanisation and pollution
• Lack of sufficient ESG disclosure in Asia
• Climate change impacts on health and mortality
• Mental health challenges

Mitigation Strategies

• Developed AIA Vitality wellness program
• Launched new insurance products addressing cancer care and mental health
• Partnered with WeDoctor to provide access to healthcare services
• Invested US$24 billion in infrastructure-related sectors
• Divested US$500 million in tobacco manufacturing investments
• Advocated for maintaining default life insurance coverage in Australia
• Engaged in research on air quality and climate change

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct referencing UN Declaration on Human Rights and AIA’s ESG memberships

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters impacting health and mortality

Transition Risks

• Regulatory changes impacting investments

Opportunities

• Investments in green bonds and sustainable infrastructure

Reporting Standards

Frameworks Used: GRI Standards (Core option), HKEx ESG Reporting Guide, UN Global Compact

Certifications: LEED Platinum, LEED Gold

Third-party Assurance: PricewaterhouseCoopers (limited assurance on selected data)

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 10 (Reduced Inequalities)
• SDG 13 (Climate Action)

AIA's initiatives align with these goals through its focus on health and wellness, financial inclusion, and sustainable investments

Sustainable Products & Innovation

• AIA Vitality
• A-Plus Health
• Cancer Care Essence
• Cancer Guardian 2

Awards & Recognition

• ISS-oekom Prime rating
• FTSE4Good Index inclusion
• Bloomberg Gender Equality Index inclusion
• Aon’s 2018 “Best Employers” Asia Pacific Regional Award
• Aon’s 2018 “Best Employers” China Award
• GTI Media’s “Most Popular Graduate Employer 2017” (Singapore)
• Asia Responsible Entrepreneurship Awards (AREA)

Environmental Metrics

ESG Focus Areas

• Community Engagement
• Health and Wellbeing

Social Achievements

• Engaged 258 million people through AIA One Billion initiatives.

Governance Achievements

• Implemented robust internal governance and controls for data collection and reporting. Secured limited assurance from PwC on selected AOB performance metrics.

Climate Goals & Targets

Environmental Challenges

• Lack of industry norms for measuring and evaluating performance metrics of this type.
• Potential for duplication of engagements across metrics.

Mitigation Strategies

• Established objective measurement techniques, including appropriate estimates and assumptions.
• Applied duplication discount factors based on social media partner intelligence and consumer surveys (Kantar Insights).
• Implemented internal review processes and robust internal governance and controls.
• Secured limited assurance from PwC.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Health & Wellness
• Sustainable Investment
• Sustainable Operations
• People & Culture
• Effective Governance

Environmental Achievements

• 100% of new buildings and redevelopments to be green certified
• Completely divested entire directly-managed listed equity and fixed income exposure to coal mining and coal-fired power businesses

Social Achievements

• Over US$10 billion in total benefits and claims rolled out to 18 markets, engaged 258 million people
• Exceptional Workplace Award top quartile in employee engagement score for the 6th consecutive year
• 42% Women in senior management roles

Governance Achievements

• 100% of Group Board non-executives are independent and all Group Board committees are chaired by INEDs
• Top Rated ESG Performer by Sustainalytics in our industry and region
• AIA One Billion ESG Rating Scorecard

Climate Goals & Targets

Environmental Challenges

• Climate change impacts in Asia
• Income inequality in Asia
• Rising healthcare expenditure in Asia

Mitigation Strategies

• Five-pillar ESG strategy
• Net-Zero 2050 commitment
• Science Based Targets initiative (SBTi) alignment

Supply Chain Management

Responsible Procurement

• ESG factors in sourcing considerations

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SBTi

Awards & Recognition

• Exceptional Workplace Award
• Bloomberg Gender-Equality Index inclusion in 2023

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Became the first pan-Asian life and health insurer to have near-term targets validated by the SBTi in 2023.

Social Achievements

• Launched ESG 101 programme in 2023, with over 17,000 employees participating as of October 2023.
• Invested over US$4 billion into ESG bonds as of December 31, 2022.

Governance Achievements

• Established Climate & Net Zero Steering Committee to oversee strategy and implementation.
• Introduced TCFD-accredited training for the Board to build climate competency.

Climate Goals & Targets

Environmental Challenges

• Varying degrees of infrastructure and policy readiness to tackle climate change across different markets.
• Challenges in collecting reliable emission data in Asian markets due to lack of standardized frameworks.
• Limited ability to influence emission reduction in leased buildings.
• Constraints in technology, grid connectivity, and storage capacity limiting direct access to renewable energy infrastructure.
• Varying availability of renewable energy instruments across Asia.

Mitigation Strategies

• Each business unit works with the Group ESG Function to address challenges and develop tailored transition plans.
• Using multiple third-party sources to standardize data and triangulate discrepancies.
• Prioritizing energy efficiency levers based on materiality and operational control.
• Implementing a standard that mandates newly constructed or acquired commercial properties achieve green building certification.
• Engaging energy service companies (ESCOs) to identify and execute energy efficiency opportunities.
• Developing market-specific plans to transition vehicle fleets to EVs or PHEVs.
• Drafting leased building guidelines to support leasing greener real estate and engaging landlords to optimize energy usage.
• Advocating for the development of charging infrastructure and exploring sourcing of relevant EV models.
• Engaging in strategic partnerships with renewable energy developers and governments to increase accessibility of renewable energy projects and infrastructure.

Supply Chain Management

Responsible Procurement

• Mandating green building certification for newly constructed or acquired commercial properties.

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of extreme weather events
• Changes in precipitation patterns
• Rising mean temperatures
• Rising sea levels

Transition Risks

• Increased carbon pricing
• Enhanced emissions reporting obligations
• Costs of transition to lower emissions technology
• Changing customer behaviour
• Uncertain market signals
• Regulatory changes

Opportunities

• Development of energy-efficient products
• Investment in green bonds, renewable energy

Reporting Standards

Frameworks Used: SBTi, TCFD, CDP

Sustainable Products & Innovation

• AIA Sustainable Multi-Thematic Fund

Awards & Recognition

• Life Insurance Company with the Best Sustainable Practice of the Year 2022 (Thailand)