Climate Change Data

Environmental Metrics

ESG Focus Areas

• Disaster Preparedness and Response
• Microinsurance
• Road Safety
• Sustainability
• Governance
• Diversity and Inclusion
• Talent Development and Management
• Employee Relations
• Corporate Giving
• Employee Volunteerism and Giving
• Climate Change
• Renewable Energy
• Employee Wellness
• Community Investment
• Human Rights

Environmental Achievements

• Invested over $430 million to upgrade worldwide offices with high-efficiency lighting and energy-efficient infrastructure, resulting in a 15% reduction in energy use in NYC and UK offices over 3 years (lowering CO2 emissions by over 2,500 tons annually).
• Over 326 tons of electronics waste diverted from landfills for recycling and reuse over 2 years.
• 1,500 tons of paper recycled by AIG’s North American operations in 2015.
• 95 percent of claims and underwriting processes now paperless in 57 countries.
• 8.8 percent reduction in CO2 emissions from AIG’s U.S. vehicles.
• AIG’s planned 155,000-square-foot office in Nashville committed to LEED standards.

Social Achievements

• 5,200 AIG colleagues from nearly 40 countries served more than 57,000 hours on over 330 community projects.
• Launched a green policy in Mexico, planting a tree for each policy sold.
• Partnered with Genesys Works to provide internships for inner-city high school students.
• Hosted 70 student interns at its New York City offices through the Development School for Youth (DSY).
• AIG raised nearly $1.9 million to support NJ Physicians Advisory Group; Disabled Sports USA; Tanenbaum; and the Insurance Industry Charitable Foundation.
• AIG received the prestigious 2015 Double I Award from the Insurance Industry Charitable Foundation.

Governance Achievements

• AIG was the first U.S.-based insurer to adopt a public statement on climate change.
• AIG’s 2015 Carbon Disclosure Project annual survey submission resulted in an 85 out of 100 climate change disclosure score.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Over $535,000 of supplies purchased in “The Green Category” from Office Depot – representing 18 percent of AIG’s total spend with the supplier.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• AIG received a 100 percent score on the Corporate Equality Index for the fifth consecutive year, measured by the Human Rights Campaign.
• Rose 129 places, from 238 to 109, in the Stonewall (UK) Organization Workplace Equality Index.
• Included in DiversityInc’s 25 Noteworthy Companies.

Environmental Metrics

ESG Focus Areas

• Sustainability
• Diversity & Inclusion
• Community Engagement
• Governance
• Disaster Resilience
• Microinsurance

Environmental Achievements

• 9% reduction in power consumption through infrastructure and facilities modernization
• 174-ton reduction (32%) in paper waste compared to 2016
• 18,522 pounds of food rescued and 15,435 meals provided with rescued food at NYC headquarters, avoiding 6,946 pounds of CO2 equivalent

Social Achievements

• ~$6.5 million raised in employee gift matches through the 2:1 Matching Grants Program
• Approximately $11.7 million in corporate contributions to nearly 600 organizations in 30 countries
• Over 54,000 employee volunteer hours
• 1.38 million farmers covered under a crop protection program in India
• 7 wishes granted by Make-A-Wish Shanghai

Governance Achievements

• Highly engaged Board with balanced tenure and diverse expertise
• Independent Chairman
• Extensive shareholder engagement program
• AIG Global Compliance Group (GCG) oversees compliance risks

Climate Goals & Targets

Environmental Challenges

• Unprecedented catastrophes in 2017 (e.g., Hurricane Harvey, Hurricane Irma, Hurricane Maria)

Mitigation Strategies

• Prioritized employee safety during Hurricane Harvey, deploying resources for rescue efforts
• AIG adjusters and engineers proactively offered clients guidance and fulfilled claims in the aftermath of hurricanes
• AIG purchased and delivered portable generators and fuel to employees in Puerto Rico
• Global “Support an AIG Family” campaign raised donations for colleagues in need

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• 100% Corporate Equality Index (seventh consecutive year)
• Human Rights Campaign Gold Award
• Excellence in Diversity & Inclusion, Hong Kong HR Innovation Awards 2017
• Workplace Equality Index, Stonewall Organization, UK 2017
• LGBTQ Business Equality Excellence Award, Business Equality Network
• Gold Award, LGBT Index, Japan
• N-pika Employee-Friendly Company Recognition, Japan
• Impact Award, Global Equality and Diversity Awards, UK/AEL
• Noteworthy Companies for Diversity list (third consecutive year), DiversityInc
• Workplace and Marketplace Award, APAC Disability Matters Diversity & Inclusion Awards
• The Kemperlesnik Award for Corporate Social Responsibility, Insurance Business Awards America
• Most Outstanding Socially Responsible Resilience Award, Enterprise Award, Mexican National Conservation, Center for Philanthropy Transportation, and Logistics (CEMEFI)
• Category, Association for Resilience, Japan
• Prime Minister Road Safety Award, Thailand
• Corporate Social Responsibility Responsible Recognition Program 100 Distinction, City & State
• Corporate Honoree, New York New York City Film Festival Finalist for AIG’s Houston Heroes, Boston College Center for Corporate Citizenship

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced Scope 1 and Scope 2 emissions by 9% year-over-year in reported geographies (NYC and UK).
• UK operations exceeded emission reduction target by 40% (200% of original target).
• On track to meet NYC Carbon Challenge goal, achieving 77% of total reductions needed by end of 2018.
• $800 million invested over past five years to update worldwide offices with energy-efficient infrastructure.

Social Achievements

• Launched AIG Environmental, Social and Governance (ESG) Fund(s) in 2016.
• Involved in Rockefeller Foundation’s 100 Resilient Cities program.
• Contributing to Insurance Development Forum (IDF) to address low insurance penetration rates.

Governance Achievements

• Established a Sustainability Task Force with executive sponsorship.
• Board of Directors delegated responsibility for climate-related issues to the Nominating and Corporate Governance Committee (NCGC).
• Risk and Capital Committee (RCC) oversees climate-related risks within its broader risk management responsibilities.

Climate Goals & Targets

Environmental Challenges

• Physical risks from climate change (natural catastrophes, operational disruptions).
• Transition risks (policy and regulatory changes, litigation, technology shifts, reputational risks).
• Credit and market risks related to long-term investments potentially affected by climate change.
• Data limitations in aggregating global GHG emissions data.

Mitigation Strategies

• Risk Appetite Framework with risk limits and tolerances.
• Risk identification processes at business unit and corporate levels.
• Use of third-party catastrophe risk models and internal models (hurricane, flood).
• Emerging Risk Forum for horizon scanning and cross-functional dialogue.
• Prudent underwriting and pricing of climate risks, including reinsurance and catastrophe bonds.
• Business continuity plans to respond to operational disruptions.
• Credit risk management framework with credit professionals and oversight.
• Market risk management framework with defined risk limits and standards.

Supply Chain Management

Responsible Procurement

• Encouraging suppliers to improve sustainability of products and services.

Climate-Related Risks & Opportunities

Physical Risks

• Natural catastrophes
• Operational disruptions

Transition Risks

• Policy and regulatory changes
• Litigation
• Technology shifts
• Reputational risks

Opportunities

• Providing risk solutions and expertise to clients
• Developing new products and services
• Establishing partnerships
• Supporting energy-efficient operations
• Investing in renewable energy sources
• Offering sustainable investment products

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

• ESG investment products (VALIC Socially Responsible and VALIC Global Social Awareness)
• AIG ESG Dividend Fund

Environmental Metrics

ESG Focus Areas

• Sustainability
• Citizenship
• Diversity & Inclusion

Environmental Achievements

• Published inaugural Taskforce for Climate-related Financial Disclosures (TCFD) report
• Appointment of first Chief Sustainability Officer
• Launched a Sustainability Integration Team
• Partnered with Wood Group Plc to create a Resilience Framework endorsed by UNIDO

Social Achievements

• Nearly 80,000 employee volunteer hours
• Over 4,000 employees participated in Global Volunteer Month activities
• Partnership with Junior Achievement resulting in almost 18,000 students participating in JA programming
• Over 18,000 edits and mapping of over 33 miles of roads with Humanitarian OpenStreetMap
• AIG’s award-winning Legal Pro Bono program provided nearly 25,000 hours of counsel
• 16 hours of volunteer time off and $10,000 matching grants program for employees

Governance Achievements

• 100% score on the Human Rights Campaign’s Corporate Equality Index for the eighth year in a row
• Featured on DiversityInc’s Top 50 Companies for Diversity and Top Companies for Executive Women lists
• 138 Employee Resource Groups (ERGs) representing 24% of all employees, with 16% membership increase in 2019
• Unconscious bias training offered to all employees

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on business and global communities
• Need to balance energy needs with green technologies

Mitigation Strategies

• Formation of a CEO-backed Climate Change Working Group to develop a cohesive strategy
• Development and refinement of climate strategy
• Leveraging global risk and industry expertise to mitigate greenhouse gas emissions and navigate climate change risks and opportunities

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Awards & Recognition

• DiversityInc’s Top 50 Companies for Diversity
• DiversityInc’s Top Companies for Executive Women

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced real estate footprint by 11%, contributing to a 24% reduction in electricity emissions.
• Committed to achieving net-zero emissions for its operations by 2050.
• Wrote more than $361 million of business with renewables, a 20% increase since 2018.

Social Achievements

• Launched the Compassionate Colleagues Fund to support employees facing financial hardship.
• Expanded U.S. Preventive Care Program, enabling employees to earn a $120 credit.
• Offered 71 webinars on leadership and professional development.
• 36% of all new executive leadership positions were filled with diverse talent in 2020.
• 51% of AIG job placements globally were female and 42% of U.S. placements were ethnically diverse in 2020.

Governance Achievements

• Established an Executive Diversity Council to monitor DEI initiatives.
• Suspended its limited Political Action Committee (PAC) activity.
• Received a “Trendsetter” designation in the CPA-Zicklin Index with a score of 97.1%.

Climate Goals & Targets

Environmental Challenges

• Managing climate-related risks, including physical risks (natural catastrophes), transition risks (regulatory changes, investment risks), and reputational risks.
• Maintaining business continuity during the COVID-19 pandemic and other potential disruptions.
• Addressing potential litigation risks related to climate change.

Mitigation Strategies

• Utilizing catastrophe models, reinsurance, and risk engineering to manage natural catastrophe risk.
• Implementing business continuity plans and disaster recovery practices.
• Proactively monitoring and assessing regulatory changes and potential litigation risks.
• Integrating ESG factors into investment analysis and underwriting processes.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Natural catastrophes

Transition Risks

• Regulatory changes
• Investment risks
• Reputational risks

Opportunities

• Growth in renewable energy insurance and investments.

Reporting Standards

Frameworks Used: SASB, TCFD, GRI, UN Global Compact, UN Sustainable Development Goals

Certifications: LEED Gold (Midtown NYC headquarters)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 8: Decent Work and Economic Growth
• Goal 10: Reduced Inequalities
• Goal 11: Sustainable Cities and Communities
• Goal 13: Climate Action
• Goal 16: Peace, Justice and Strong Institutions
• Goal 17: Partnerships for the Goals

AIG initiatives aligned with these SDGs are described in the report.

Sustainable Products & Innovation

• Green Endorsements
• Parametric Insurance
• Renewable energy insurance products

Awards & Recognition

• Bronze, Silver recognition for workplace wellness
• Trendsetter designation in CPA-Zicklin Index
• Various other awards for DEI and philanthropy

Environmental Metrics

ESG Focus Areas

• Climate Action
• Human Capital Management
• Diversity, Equity and Inclusion
• Community Engagement
• Governance
• Risk Management

Environmental Achievements

• Commitment to reach net zero greenhouse gas (GHG) emissions across underwriting and investment portfolios by 2050, or sooner.
• Developed an ESG underwriting framework integrating ESG across all product lines.
• Supported the market’s transition to a more sustainable economy by insuring renewable energy and lower-carbon industries.
• Participation in the Sustainable Markets Initiative Insurance Taskforce.

Social Achievements

• Launched three career-development and diversity leadership programs (Accelerated Leadership Development Program, Executive Men’s Development Initiative, Women’s Executive Leadership Initiative, and Early Career program).
• Launched the Signature Series: Recruiting for Success diversity recruitment training program.
• Awarded more than $60 million of business to certified diverse suppliers in 2021.
• Global gender representation improved across all employee categories with women representing 54.7% of the global workforce. More than 50% of all hires and promotions in 2021 were women.
• Representation of Asian, Black and Latino talent improved across Executive and Senior Management levels in the U.S. by 2 percentage points.
• Launched Wellness at AIG program with two paid Wellness Days off.
• Contributed $27 million to nonprofit organizations through direct donations and matching grants, and colleagues volunteered more than 20,700 hours.
• Increased Volunteer Time Off Program benefit from 16 to 24 hours.
• AIG Legal Pro Bono Program provided over 4,000 hours of free legal support.

Governance Achievements

• Engaged with government and regulatory officials to shape and understand evolving climate change policy frameworks.
• Advocated for open, rules-based and sustainable trade through the Global Trade Series.
• Incorporated Culture of Integrity and Risk Management goals into annual performance goals for all managers.
• Worked with clients to ensure best practices, including cybersecurity and data privacy.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Diversity program

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Governance
• Climate Change
• Clients
• Colleagues

Environmental Achievements

• 27% reduction in scope 1 and 2 GHG emissions from 2019 to 2022
• 7% of energy consumption in facilities derived from renewable sources

Social Achievements

• Named one of DiversityInc’s Top 50 Companies for Diversity for the last six years
• Awarded more than $130 million of business to certified diverse suppliers and organizations
• 53,000+ volunteer hours by 5,100 colleagues globally
• Over $22.5 million in charitable contributions

Governance Achievements

• AIG’s Board of Directors is 70% diverse with gender parity achieved as of May 2023
• Engaged with shareholders holding ~50% of shares outstanding in 2022
• “First Tier” designation in annual CPA-Zicklin Index for political disclosure and accountability policies

Climate Goals & Targets

Environmental Challenges

• Increased frequency and severity of natural disasters impacting reinsurance market and retrocessional capacity
• Increased scrutiny of financial institutions’ ESG practices by regulators
• Evolving regulatory landscape surrounding ESG issues
• Diverging stakeholder expectations on climate issues

Mitigation Strategies

• Developed an ESG underwriting framework
• Implemented investment guidelines with BlackRock to operationalize net zero commitments
• Actively monitor regulatory landscape
• Engage with shareholders and stakeholders to understand their perspectives

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of natural disasters
• Shifting temperatures, precipitation levels, droughts and sea water levels

Transition Risks

• Increased focus on ESG-related litigation and regulatory action
• Government actions to transition toward low or net zero carbon economies

Opportunities

• Leading insurer of renewable energy

Reporting Standards

Frameworks Used: SASB, TCFD, GRI, UNGC, UN SDGs

Certifications: Toitū carbonreduce (AIG New Zealand)

Sustainable Products & Innovation

• Insurance solutions for green and blue hydrogen energy projects
• Renewable energy coverage
• Cyber insurance

Awards & Recognition

• DiversityInc’s Top 50 Companies for Diversity
• Gold recognition for the American Heart Association Workforce Well-being Scorecard
• Civic 50
• Bronze U.S. President’s Volunteer Service Award
• Global Citizen Award, International Medical Corps

Environmental Metrics

Social Achievements

• AIG sponsors over 110 Employee Resource Groups (ERGs) in 45 countries to enhance allyship and inclusion.

Climate Goals & Targets

Environmental Challenges

• Increasing scrutiny and evolving expectations from investors, customers, regulators, policymakers and other stakeholders regarding environmental, social and governance matters, including governmental responses to such matters, may adversely affect our reputation or otherwise adversely impact our business and results of operations.
• The Russia/Ukraine conflict has and may continue to have a significant impact on the global macroeconomic and geopolitical environments, including increased volatility in capital and commodity markets, rapid changes to regulatory conditions around the globe including the use of sanctions, operational challenges for multinational corporations, inflationary pressures and an increased risk of cybersecurity incidents.

Mitigation Strategies

• We actively manage our exposure to the interest rate environment through portfolio construction and asset-liability management, including spread management strategies for our investment-oriented products and economic hedging of interest rate risk from guarantee features in our variable and fixed index annuities, but we may not be able to fully mitigate our interest rate risk by matching exposure of our assets relative to our liabilities.
• We believe we have taken appropriate actions to minimize related risk [to the Russia/Ukraine conflict], we continue to monitor potential exposure and operational impacts, as well as any actual and potential claims activity.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• higher concentrations of greenhouse gases, a warming atmosphere and ocean, wildfires, diminished snow and ice, and a rise in sea levels

Transition Risks

• governmental actions to mitigate climate and other risks related to environmental, social and governance matters