Climate Change Data

Environmental Metrics

ESG Focus Areas

• Fair and transparent products meeting customer needs
• Best people for the best performing business
• Protecting the environment
• Supporting local communities

Environmental Achievements

• Retained ISO 14001 environmental management certification for all UK occupied properties
• Jackson's green delivery program reduced paper consumption and generated cost savings
• Jackson provided funding to plant 100,000 trees

Social Achievements

• Launched 'Retirementology' educational program in the US to help people prepare for retirement
• Increased the number of advisors selling variable annuity products in the US to over 130,000
• Launched LifeGuard Freedom Flex, a customizable guaranteed minimum withdrawal benefit in the US
• Developed online guides and interactive tools to help UK customers make informed financial decisions
• Launched an iPhone Retirement Calculator app in several Asian markets
• Financial training seminars ('Investing in Your Future') reached over 4,400 women in Asia
• Partnership with Chinese Ministry of Education to develop insurance education curriculum in schools
• Supported various financial literacy initiatives in partnership with organizations like Citizens Advice and Junior Achievement
• Contributed approximately £1 million and provided volunteer support for disaster relief efforts in Indonesia following the 2009 earthquake

Governance Achievements

• Established a Group Risk Committee
• Appointed a new Group Chief Risk Officer and elevated the position to board level
• Complied with the Combined Code 2008 and the Code on Corporate Governance Practices (with one deviation regarding the Remuneration Committee's remit)

Climate Goals & Targets

Environmental Challenges

• Data collection for environmental impacts in Asia
• Economic downturn and demographic changes leading to unpreparedness for retirement in the US and UK
• Maintaining strong customer service scores in challenging market conditions
• Uncertainty regarding the outcome of Solvency II implementation

Mitigation Strategies

• Developing processes and identifying technologies for accurate environmental impact measurement in Asia
• Launched educational programs ('Retirementology' and online guides) to improve financial literacy
• Improved service to annuity customers with clearer quotes and interactive online tools
• Active participation in shaping the outcome of Solvency II through industry bodies and trade associations
• Implementation of a Solvency II implementation program with dedicated teams

Supply Chain Management

Responsible Procurement

• Working with suppliers whose values and standards are aligned with the Group Code of Business Conduct
• Procurement practices in Prudential UK accredited with CIPS certification

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS, EEV

Certifications: ISO 14001

Sustainable Products & Innovation

• PRU my child (healthcare and savings)
• LifeGuard Freedom Flex (variable annuity)
• M&G inflation-linked Corporate Bond Fund

Awards & Recognition

• Various awards for customer satisfaction, fund performance, and service quality across different business units

Environmental Metrics

ESG Focus Areas

• Business integrity
• Customers
• Environment
• Responsible investment
• Suppliers
• Technology
• People
• Communities

Environmental Achievements

• Scope 1 and 2 GHG emissions fell by 7% to 123 kgCO2-e/m2 in 2016 (2015: 132 kgCO2-e/m2)
• M&G Real Estate reduced its absolute Scope 1 and 2 emissions by 24% to 28,532 tonnes CO2-e (2015: 37,536 tonnes)
• Jackson National Life’s Lansing Corporate Head Office achieved an Energy Star score of 81 (December 2012 baseline: 45), an increase of 80%, with GHG emissions decreasing by 27% (1,900 TCO2-e)
• LEED Gold refurbishment in Prudential Corporation Asia at One Island East offices in Quarry Bay, Hong Kong, with 78% of construction waste recycled

Social Achievements

• Launched an independent, externally hosted whistleblowing website and hotline system, Speak Out
• Prudential Corporation Asia rolled out the ‘PRU+YOU’ programme to help colleagues achieve personal well-being goals
• North America business expanded College Relations initiative to support diversity of ethnicity at entry level
• M&G improved nationality, academic and social diversity of its graduate schemes, ensuring 50% women on its investments schemes
• Group Head Office increased focus on gender diversity, with 46% female participation in talent programmes
• Prudential’s African scholarship programme supported the education of 628 children

Governance Achievements

• Established a cross-functional working group to identify material ESG issues
• Approved Group-wide Cyber Risk Management Strategy and Cyber Defence Plan
• Undertook a Group-wide review of data privacy management
• Reviewed tax strategy and tax risk policy

Climate Goals & Targets

Environmental Challenges

• Increased absolute Scope 1 and 2 GHG emissions (2%) across occupied estate, despite reduction when normalised against net lettable floor area
• Increased absolute water use (3%) across occupied estate
• Increased waste generation (2,089 tonnes in 2016 vs 1,895 tonnes in 2015)
• Capturing accurate environmental performance data due to complexity of global office estate and reliance on estimation
• Cyber risks and data privacy concerns

Mitigation Strategies

• Optimising energy consumption, installing low-energy LED lighting, upgrading equipment
• Developing programmes to conduct water audits and establish improved monitoring regimes
• Seeking opportunities to reduce waste to landfill, introducing compostable packaging
• Improving data collection methods
• Implementing Group-wide Cyber Risk Management Strategy and Cyber Defence Plan, updating data privacy policies

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Group Outsourcing and Third-Party Supply Policy
• Due diligence before engaging new suppliers
• Annual attestations from suppliers
• Audits of critical suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Hong Kong Listing Rules

Certifications: ISO 14001 (UK property estate)

Third-party Assurance: Deloitte LLP

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Financial Adviser Service Awards 2016 ‘Five Star’ rating for Investments and Pensions
• Investment Life & Pensions MoneyFacts Awards 2016 for Best Investment Service, Best Investment Bond Provider and Best Online Service
• Jackson’s call centre service awards from The Service Quality Measurement Group, Inc. (SQM)
• Prudential Hong Kong awards at the Hong Kong Insurance Awards 2016

Environmental Metrics

ESG Focus Areas

• Business Integrity
• Customers
• Environment
• Responsible Investment
• Suppliers
• Technology
• People
• Communities

Environmental Achievements

• Greenhouse gas emissions decreased across our occupied estate
• Total waste recycling rate increased
• Absolute Scope 1 and 2 GHG emissions decreased by 5 per cent to 70,723 tCO2e (2016: 74,315 tCO2e) across our occupied estate
• Waste to landfill decreased by 29 per cent in 2017 to 344 tonnes (2016: 481 tonnes)

Social Achievements

• Prudential named one of Britain’s most admired companies in Management Today awards
• Application times for customers in China sharply reduced by straight-through processing using mobile platforms
• New website launched to make financial products clearer and more transparent for US consumers
• M&G Prudential rolls out MyM&G, a lower-cost direct-to-consumer platform for UK customers
• Two five-star ratings for our UK life business at the Financial Adviser Service Awards
• Cha-Ching, the world’s only global financial education programme for primary school-aged children, is now on all four continents where we operate
• New ‘never lapse’ feature for customers in Africa, ensuring that missing payments will not lose them benefits
• Now in its fifth year, Prudential RideLondon has raised more than £50 million for charity
• Over 30 per cent of our workforce volunteered for community projects through our flagship Chairman’s Challenge
• Our UK & Europe investment business ranked number one asset manager to work in by two separate surveys
• M&G Real Estate was awarded the National Equality Standard.

Governance Achievements

• Our whistleblowing programme upgraded and enhanced
• Highly commended for the clarity and succinctness of our tax reporting

Climate Goals & Targets

Environmental Challenges

• Obtaining the necessary information from suppliers to facilitate the level of disclosure required at a global level remains a challenge.
• Air travel continues to dominate our business travel carbon footprint
• Waste disposal is often managed by a building’s landlord and is mixed with other tenants’ waste. This is the predominant practice across our Asian sites, making it particularly challenging to obtain a complete and accurate picture of the waste produced across our estate.
• Absolute use of water across our global occupied estate increased by 14 per cent to 271,194 m3 (2016: 238,761 m3).
• Cyber risks, which can pose threats to our business operations and the customer data that we hold and protect.

Mitigation Strategies

• We continue to invest in our estate and upgrade to energy-efficient equipment through our mechanical and electricity plant life cycle replacement programme.
• We have begun to capture business travel data beyond the UK and will look to publish this in our 2018 ESG Report.
• We have also focused on improving our data quality by ensuring our suppliers provide accurate reports.
• We are actively working to set usage reduction targets and activities in 2017 focused on setting our baseline.
• Our cyber strategy is constantly evolving to anticipate and respond to the advances being made in the technologies we use and the threats we face.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Group Outsourcing and Third Party Supply Policy
• Environmental requirements integrated into procurement frameworks and supplier selection criteria.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• governmental and corporate efforts to transition to a low-carbon economy could have an adverse impact on global investment assets.

Opportunities

• investments in clean, sustainable and renewable energy assets

Reporting Standards

Frameworks Used: Hong Kong Listing Rules

Certifications: ISO 14001

Third-party Assurance: Deloitte LLP

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• M&G Prudential launched two funds in the ESG/impact investment space.
• Jackson National Asset Management added the JNL/Mellon Capital MSCI KLD 400 Social Index Fund

Awards & Recognition

• Prudential named one of Britain’s most admired companies in Management Today’s awards.
• Two ‘Five Star’ ratings in the Life & Pensions and Investments categories at the Financial Adviser Service Awards.
• Best Investment Bond Provider and Best Income Drawdown Provider at the 2017 Investment Life & Pensions Moneyfacts Awards.
• Global Multi Asset Credit Manager of the Year and UK Fixed Income Manager of the Year awards at the FT Pensions Expert: Pension and Investor Provider Awards 2017.

Environmental Metrics

ESG Focus Areas

• Customers
• Responsible Investment
• Business Integrity
• People
• Supply Chain
• Technology
• Environmental Performance
• Supporting our Communities

Environmental Achievements

• Global energy use across occupied estate decreased by 1.7% to 127,098 MWh
• Absolute Scope 1 and Scope 2 greenhouse gas emissions decreased by 7% to 61,317 tCO2e
• Achieved zero non-conformities in 2018 in UK environmental management system (ISO 14001:2015)
• Signed up to RE100, committing to 100% renewable energy by 2025

Social Achievements

• Achieved commitment to have 27% women in senior management, a year ahead of target
• Launched Enable, a Group-wide network for employees with disabilities
• Launched PruPride, the first LGBT and allies network in Asia
• 11,710 employees dedicated 117,491 hours of volunteer service
• Spent £27.3 million supporting community activities

Governance Achievements

• Established ESG Executive Committee (ESG ExCo) to lead on ESG matters
• Updated Group Anti-Bribery and Corruption Policy
• Implemented automated transaction monitoring system in Hong Kong and Singapore life businesses
• Refreshed Group-wide whistleblowing programme, Speak Out

Climate Goals & Targets

Environmental Challenges

• Climate change risks and opportunities
• Cyber risk
• Financial crime
• Maintaining high standards of customer service
• Closing the gender pay gap

Mitigation Strategies

• ESG ExCo to oversee climate-related risks and opportunities
• Comprehensive cyber strategy with risk prevention, security controls, and resilience
• Group-wide policies on anti-money laundering, fraud, counter-terrorist financing, and sanctions
• Documented procedures to manage customer complaints
• Focus on closing the gender pay gap through various initiatives

Supply Chain Management

Responsible Procurement

• Group Code of Business Conduct
• Group Third Party Supply Policy
• Due diligence before engaging with suppliers
• Regular due diligence, review meetings, and audits

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Hong Kong Listing Rules ESG ‘comply or explain’ requirements

Certifications: ISO 14001:2015 (UK)

Third-party Assurance: Deloitte LLP (community investment), PwC (ClimateWise), Deloitte (Greenhouse gas emissions)

Awards & Recognition

• Britain’s Most Admired Companies (insurance category)
• WealthManagement.com Industry Awards (Outstanding Achievement)
• APEX Awards for Publication Excellence (Grand Award)
• Communicator Awards (Gold Awards of Excellence and Awards of Distinction)
• Financial Adviser Service Awards (Five Star ratings)
• Investment Life & Pensions Moneyfacts Awards (Best Investment Bond Provider)
• European Pension Awards (Multi Asset Manager of the Year and Property Manager of the Year)
• Bloomberg BusinessWeek Financial Institution Awards (Insurance Company of the Year)

Environmental Metrics

ESG Focus Areas

• Responsible investment
• Climate change
• Business integrity
• People (diversity & inclusion, employee engagement, human rights)
• Technology (digital innovation, information security)
• Environment (energy, waste, water)
• Community investment

Environmental Achievements

• Reduced global energy use across occupied estate to 91,921 MWh; Global absolute Scope 1 and 2 (market-based) greenhouse gas emissions were 56,421 tCO2e; 63% of UK and US waste diverted from landfill through recycling, composting or incineration; New London office rated BREEAM Excellent; Malaysia headquarters consolidated into LEED Gold building.

Social Achievements

• Launched Pulse by Prudential digital health app (over 1 million downloads); Expanded advisory distribution footprint in US with new partnerships; Added 1.4 million new life customers in Asia; Increased MDRT qualifiers by 35% in Asia (excluding Hong Kong); Jackson Charitable Foundation reached more than 1.75m students through financial education partnerships; 1,840 Jackson associates volunteered 48,000+ hours.

Governance Achievements

• Successful demerger of M&G plc; Updated Group-wide policies and processes for alignment with Hong Kong IA requirements; Implemented Group-wide organisational structure and governance model for cybersecurity management; Updated Group Code of Business Conduct; Implemented Workday e-procurement system in London head office.

Climate Goals & Targets

Environmental Challenges

• Slowdown in global economic growth; Geopolitical tensions (trade disputes, protests); Heightened capital market volatility; Lower interest rates; Social unrest in Hong Kong; COVID-19 outbreak; Regulatory changes (IFRS 17, US fiduciary obligations).

Mitigation Strategies

• Disciplined capital allocation; Risk management framework and risk appetite; Engagement with governments and regulators; Hedging programmes; Product diversification; Business continuity management; Transformation risk management framework; Investment in technology and digital capabilities; Early adoption of new NAIC variable annuity framework.

Supply Chain Management

Responsible Procurement

• Group Third-Party Supply Policy; Due diligence; Contractual requirements; Monitoring; E-procurement system; Compliance with UK Modern Slavery Act and UN Universal Declaration of Human Rights.

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters
• Changes in natural environment
• Impact on operational resilience
• Impact on claims profile
• Impact on asset valuations

Transition Risks

• Repricing of carbon-intensive company assets
• Regulatory and technological change
• Disorderly adjustment to asset values

Opportunities

• Investments in low-carbon economy
• Development of climate-related products and services

Reporting Standards

Frameworks Used: TCFD

Third-party Assurance: Deloitte LLP (limited assurance on selected environmental metrics)

Sustainable Products & Innovation

• Pulse by Prudential; Fee-based variable annuity products; Products designed to meet the needs of an ageing population.

Awards & Recognition

• Awards for customer service in Hong Kong, Malaysia, Thailand, Vietnam, and the US; Awards for customer contact quality, service, and digital initiatives in the US.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity & Inclusion
• Financial Inclusion
• Community Investment
• Responsible Investment

Environmental Achievements

• Reduced the weighted average carbon intensity (WACI) of its investment portfolio by 23% against the 2019 baseline.
• Divested from all direct equity investments in businesses deriving more than 30% of their income from coal.

Social Achievements

• Launched a new dedicated fund to support communities struggling with the pandemic.
• Improved diversity figures.
• Launched PRUCommunities, a safe space for employees to share identities and interests.
• Launched We DO Family campaign to develop more inclusive products.

Governance Achievements

• Established a Board Responsibility and Sustainability Working Group (RSWG).
• Set a target to be net zero by 2050 for its insurance assets, supported by a 25% reduction in emissions from the portfolio by 2025.
• Improved several ESG ratings (Sustainalytics, CSA, and ISS).

Climate Goals & Targets

Environmental Challenges

• Balancing decarbonization with sustainable development through a just and inclusive transition.
• Setting a net-zero target for Scope 1 and 2 emissions while recognizing limited renewable energy options in some markets.
• Balancing the interests of all stakeholders across developing and developed markets.

Mitigation Strategies

• Working with governments, multilateral development banks, and others to achieve decarbonization targets.
• Developing responsible investment products that channel customer savings towards investments in climate mitigation and resilience.
• Regularly reviewing and updating ESG strategy to account for evolving scientific data and stakeholder expectations.

Supply Chain Management

Responsible Procurement

• Updated Outsourcing and Third-Party Supply Policy includes a direct reference to ESG and incorporates Responsible Supplier Guidelines.

Climate-Related Risks & Opportunities

Physical Risks

• Increased temperatures, rainfall, sea levels, droughts
• Increased natural disasters impacting operational resilience

Transition Risks

• Transition to a low-carbon economy impacting investment valuations.
• New climate-related regulation and reporting standards.

Opportunities

• Investment in and development of products linked to climate mitigation and resilience.
• Increased demand for new health, insurance, and savings products.

Reporting Standards

Frameworks Used: SASB Insurance Standard, TCFD

Third-party Assurance: Ernst & Young LLP (EY)

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 8
• Goal 13

Alignment with SDGs is based on the close relationship with Prudential’s purpose and business strategy.

Sustainable Products & Innovation

• Asia Sustainable Bond Fund
• Bite-sized insurance products addressing climate-related conditions (dengue, malaria).

Awards & Recognition

• Eastspring named ‘Asset Management Company of the Year, ASEAN’

Environmental Metrics

ESG Focus Areas

• Climate Change
• Responsible Investment
• Sustainable Business
• Diversity, Equity, Inclusion, and Belonging
• Social Sustainability
• Biodiversity
• Health and Financial Protection Access

Environmental Achievements

• Reduced global absolute Scope 1 and 2 (market-based) GHG emissions by 22 per cent compared to 2022.
• Reduced the weighted average carbon intensity (WACI) of our investment portfolio by 50% against the 2019 baseline.

Social Achievements

• Protected 9,700 individuals from low-income communities and those with disabilities in Malaysia.
• Established partnerships benefiting insured customers in five markets, offering treatment options for breast cancer with cost certainty.
• 87% Customer retention rate
• Invested $13m in community programmes
• Reached 2m students and trained over 66,000 teachers through Cha-Ching curriculum
• Nearly 28,000 employee volunteering hours

Governance Achievements

• 45% women on Board as of December 2023
• Set a target of 40% women in Group Leadership Team by the end of 2026
• All people managers to have sustainability-linked KPIs by the end of 2026
• 10% of the total Executive Director’s 2024 Prudential Long Term Incentive Plan awards linked to sustainability

Climate Goals & Targets

Environmental Challenges

• Quality and availability of carbon-intensity data, limited coverage of WACI and financed emissions.
• Need to broaden and refine products and services aimed at underserved segments.
• Insufficient research and data on how climate change will impact individual health.
• Inability of emerging markets to meet global decarbonisation thresholds.
• Lack of industry standards on climate change.
• Varying degrees of sustainability processes, systems, and governance across 24 local market operations.
• Many major markets remain highly reliant on fossil fuels.

Mitigation Strategies

• Increasing the coverage and quality of Scope 3 investment book data.
• Developing specific decarbonisation pathways.
• Developing a social strategy for inclusive and affordable health and protection products.
• Exploring the intersection of climate change and adverse health impacts.
• Establishing a new investment target on financing the transition.
• Implementing a new sustainability operating model.
• Improving data governance processes.
• Working with governments, multi-lateral development banks, and standard setters.

Supply Chain Management

Responsible Procurement

• Group Third-Party Supply and Outsourcing (GTPSO) Policy

Climate-Related Risks & Opportunities

Transition Risks

• Inability of emerging markets to meet global decarbonisation thresholds.

Opportunities

• Financing the transition from brown to green in emerging markets.

Reporting Standards

Frameworks Used: SASB Insurance Standard, TCFD

Third-party Assurance: EY LLP (limited assurance on select indicators)