Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental
• Social: Labor Practices
• Social: Society
• Social: Product Responsibility

Environmental Achievements

• Reduced carbon footprint by 19% from 2007 levels in the domestic home office portfolio.
• 6% of annual energy consumption from renewable sources.

Social Achievements

• Implemented a new global Strategy for Corporate Social Responsibility.
• Created the positions of Chief Customer Officer and Chief Privacy Officer.
• Continued work to help U.S. military Veterans transition to success in the corporate world, opening a center in El Paso, TX.
• Improved key indicators of employee engagement in the U.S.

Governance Achievements

• Established a Risk Committee in early 2015.
• Instituted changes to executive compensation program, including extending the clawback policy and reducing potential discretion in determining annual incentive awards for Named Executive Officers.
• Proactively adopted proxy access in early 2015.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Diversity Initiative

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI 4.0, Financial Services Sector Supplement, SASB provisional guidelines for insurance companies, International Integrated Reporting Committee’s framework

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Ethisphere’s “2015 World’s Most Ethical Company”, Civic 50, DiversityInc “Top 50 Companies for Diversity”, and others

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Business Model and Innovation
• Human Capital
• Social Capital
• Environment

Environmental Achievements

• Issued a $500 million green bond in early 2020 (first U.S. insurer)
• Reached $1 billion in assets under management in Impact and Responsible Investing by early 2020
• Offset carbon emissions for U.S. employees' business travel in 2019
• Reduced paper consumption through various initiatives
• Reduced water consumption by eliminating 70,000 bottles of water at catered events

Social Achievements

• Launched Skills Accelerator, a personalized professional development platform for employees
• Created an executive-level Enterprise Inclusion Council to ensure C-suite accountability for inclusion and diversity
• Donated $10 million to the Honors Living-Learning Center at Rutgers University
• Donated $1.5 million to support small businesses and communities during the COVID-19 pandemic
• Expanded digital learning interface, myLearning, to 1,500 additional employees

Governance Achievements

• Introduced a multi-stakeholder framework codifying the Board’s accountability to shareholders, employees, customers, and society in late 2019
• Revised Code of Conduct in March 2020 to reflect information security, privacy, and leadership changes
• Implemented robust cybersecurity and anti-bribery/anti-corruption policies and standards
• Long-term incentive compensation for senior executives linked to improving diversity among senior management

Climate Goals & Targets

Environmental Challenges

• Climate change and its potential impacts on business
• Rapid changes in the financial ecosystem (indebtedness, volatility)
• Social challenges exacerbated by environmental and financial changes
• Potential policy implications of ESG issues
• FHFA changes in green financing requirements reducing green production

Mitigation Strategies

• ESG Positive (ESG+) analysis to aggregate and publish information on General Account ESG investment allocations
• Stress testing and scenario analysis to understand and manage financial risks
• Active engagement in political and regulatory arenas to influence policy
• Robust risk management framework promoting open communication and diverse views
• Continued focus on developing talent and providing opportunities

Supply Chain Management

Responsible Procurement

• Supplier diversity program
• Vendor Code of Conduct and Terms of Engagement
• CDP Supply Chain program participation
• Sustainable Purchasing Leadership Council (SPLC) membership
• Purchase of paper from vendors with sustainable practices
• Use of vegetable or soy-based inks and adherence to the Lacey Act in paper procurement

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and intensity of storms
• Rise in sea levels
• Spread of tropical diseases
• Decline in food production

Transition Risks

• Changes in investor preferences for business models
• Increased corporate and government indebtedness
• Income inequality constraining access to healthcare
• Unpredictable political and regulatory reactions

Opportunities

• Renewable energy investments
• Green building investments
• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB Insurance Sustainability Accounting Standard, TCFD recommendations

Third-party Assurance: Lloyd’s Register Quality Assurance (limited assurance for GHG emissions)

UN Sustainable Development Goals

• SDG 6 Clean Water and Sanitation
• SDG 7 Affordable and Clean Energy
• SDG 11 Sustainable Cities and Communities
• SDG 12 Responsible Consumption and Production
• SDG 15 Life on Land

Green bond issuance aligns with these SDGs.

Sustainable Products & Innovation

• Green bonds

Awards & Recognition

• Fortune World’s Most Admired Companies
• Barron’s 100 Most Sustainable Companies
• FTSE 4Good Index Series
• Newsweek America’s Most Responsible Companies
• 100 Best Corporate Citizens
• Forbes and Just Capital America’s Most JUST Companies
• Civic 50
• Ethisphere World’s Most Ethical Company
• Human Rights Campaign Corporate Equality Index
• Working Mother Top 100 Companies
• Dave Thomas Foundation for Adoption 100 Best Adoption-Friendly Workplaces
• G.I. Jobs Military Friendly Employer
• Military Times Best for Vets List
• Computerworld Best Places to Work in IT

Environmental Metrics

ESG Focus Areas

• Climate change
• Diversity
• Corporate lobbying

Environmental Achievements

• Increased number of climate-focused funds launched in 2021

Social Achievements

• Record support for ESG-related shareholder resolutions focused on diversity and inclusion

Governance Achievements

• Increased support for ESG-related shareholder resolutions focused on corporate lobbying

Climate Goals & Targets

Environmental Challenges

• Greenwashing concerns
• Performance challenges compared to 2020 due to value and energy sector rallies

Mitigation Strategies

• This report aims to provide greater transparency into the sustainable funds space.
• The report analyzes performance against peers and benchmarks to provide context.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Working to reduce operational emissions, strengthen resiliency, and engage stakeholders on relevant sustainability issues. Commitment to achieve Net Zero emissions by 2050 and carbon neutrality by 2040 in primary home office operations.

Social Achievements

• Inclusion skill-building resulted in a substantial part of our U.S. employees completing three training sessions. Deepened and expanded financial support of Black and Latino-led social justice organizations. Employees’ return to Prudential offices resulted in more than 50 on-site volunteer events. Prudential waived rent for its retail tenants in Newark, New Jersey, through April 2022. Employees donated 4,875 hours of their time to nonprofits and small businesses, at a value of $950,000 through the PruBono Nonprofit Consulting Program. $5M in impact investments to nonprofits and businesses. $45.2M in grants to nonprofit organizations through The Prudential Foundation. $17.8M in corporate contributions to nonprofit organizations. 25,671 volunteer hours by U.S. Prudential employees.

Governance Achievements

• Board and management team engaged with a cross section of shareholders owning a majority of outstanding shares. The Corporate Governance and Business Ethics Committee evaluates prospective Board candidates considering diversity of perspective, background, work experience and other demographics. The 2022 CPA-Zicklin Index of Corporate Political Disclosure and Accountability ranked Prudential as a Trendsetter company.

Climate Goals & Targets

Environmental Challenges

• Continued global challenges and market volatility.

Mitigation Strategies

• Executed on important strategic initiatives and provided significant cash returns to shareholders. Rock-solid balance sheet provides financial strength to navigate the current macroeconomic environment.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainability
• Climate Change
• Social Responsibility
• Governance

Environmental Achievements

• 55% decrease in Scope 1 & 2 emissions for the facilities in our net zero target

Social Achievements

• $1B+ donated by The Prudential Foundation to eliminate barriers for underserved and underrepresented populations
• Fortune® World’s Most Admired Companies™ 2024 “Insurance: Life and Health” category
• Ethisphere World’s Most Ethical Companies® 2024

Governance Achievements

• AA- Equivalent Financial strength ratings
• Increased quarterly dividend by 4%, the 16th consecutive annual increase

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Fortune® World’s Most Admired Companies™ 2024
• Ethisphere World’s Most Ethical Companies® 2024
• Fortune 500® list