Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability Risks

Climate Goals & Targets

Environmental Challenges

• Sustainability Risks in Latin America (governance risks, political/economic/social instability, lack of transparency, environmental risks like deforestation and climate change impacts)
• Sustainability Risks in Emerging Asia (environmental risks, labor/human rights issues, corruption, governance risks)

Mitigation Strategies

• ESG integration into investment decisions (screening, ESG assessment, monitoring ESG controversies, engagement with companies)
• Due diligence on third-party investment vehicles (ESG strategy, risk management, team expertise)

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, flooding, droughts, wildfires

Transition Risks

• Regulatory changes

Reporting Standards

Frameworks Used: SFDR

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Environmental Challenges

• Integrating ESG criteria across all asset classes and geographies, managing ESG performance of real assets, and monitoring ESG criteria in third-party managed vehicles.

Mitigation Strategies

• ESG integration into investment analysis and decision-making, active ownership to influence companies' ESG performance, and thematic investing in high-ESG performing assets.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Principles for Responsible Investment (PRI)

Environmental Metrics

ESG Focus Areas

• We Take Care of the Resources (Environment and Social Development)
• We Build Capabilities for Development (Financial Education and Inclusion)

Environmental Achievements

• Updated due diligence model for international investment fund managers to include ESG performance assessment.
• Continued engagement campaigns with carbon-intensive emitters.
• Developed capabilities to measure carbon emissions in managed portfolios (financed emissions and carbon intensity per million dollars invested).

Social Achievements

• Implemented "Talento Imparable" project in Peru to strengthen youth employability.
• Continued existing financial inclusion initiatives in Chile (Sucursal Inclusiva, Inclusion Laboral Pensionados, Bancarización de Pensionados).
• Reached 14 million users impacted by Universidad Protección's education programs.
• Implemented new inclusion protocols and website functionalities for users with disabilities in Protección.
• Launched "Calculadora de Pensión" in Mexico, a pension projection tool.
• Promoted self-services and digital services in El Salvador.
• Promoted voluntary pension savings with accessible entry amounts in El Salvador.
• Published "Economía para Matías" in Uruguay, a financial education book.

Governance Achievements

• Meetings and training for independent directors of SURA AM and subsidiaries.
• Joint work with local secretariats to strengthen corporate governance.
• Strengthened use of technological tools (Gobertia, Dilitrust) for corporate governance.
• Annual ethics and corporate governance training for all employees.
• Annual risk management training for all employees.
• Implemented corporate governance for SURA Investments and new subsidiaries (Asulado, Inversiones Sura Corp.).
• Increased participation in AFP Protección to 52.91%, establishing control.
• 96% compliance rate for annual corporate governance, conduct, and ethics course.
• Progress on implementing a regional GRC solution for regulatory compliance management.
• Integrated Ethics Line under a single regional guideline.

Climate Goals & Targets

Environmental Challenges

• High market volatility due to global inflation, interest rate hikes, and geopolitical events.
• Political changes in Latin America leading to potential pension system reforms.
• Negative portfolio returns impacting client investment profitability.
• Regulatory changes in various countries affecting pension business operations and commission rates.

Mitigation Strategies

• Expanded offshore offer with a RIA in the US.
• Structured and launched products to mitigate inflation and interest rate increases.
• Monitored and managed the suitability of advice provided to clients.
• Provided tools and training for advisors to manage client uncertainty.
• Increased client contact and support.
• Promoting dialogue and offering solutions for pension system reforms.
• Focusing on operational efficiency and expense containment.

Supply Chain Management

Climate-Related Risks & Opportunities