ENVIRONMENTAL, SOCIAL AND GOVERNANCE
REPORT 2020 STOCK CODE 1299
AIA GROUP LIMITED 友邦保險控股有限公司 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 CONTENTS
CONTENTS
1 2020 ESG AT-A-GLANCE 16 Health and 52 People and Culture 3 Chairman’s Statement Wellness 2020 ESG 55 Developing Our People AT-A-GLANCE 6 Statement from Group 18 Engaging and Inspiring 58 Diversity and Inclusion Chief Executive and Healthy Living CHAIRMAN’S 60 A Risk-aware Culture STATEMENT President Greater Access to 21 61 Recognising and Quality Care Rewarding Our People STATEMENT FROM 23 Champion Financial GROUP CHIEF 9 About This Report 66 SUPPLEMENT: EXECUTIVE AND Inclusion Supporting Our PRESIDENT 9 Who We Are 25 Delivering Better Health Employees During Outcomes COVID-19 ABOUT THIS 10 Our Purpose REPORT 11 Our ESG Strategy 30 SUPPLEMENT: Supporting Our HEALTH AND 14 Our Material Issues Communities Through 67 Effective WELLNESS 15 Our Approach to COVID-19 Governance ESG Reporting GREEN 69 Board Governance OPERATIONS 35 Green Operations 70 Effective Risk SUSTAINABLE Management and INVESTMENT 37 Digital Transformation Responsible Business 37 Encouraging Good Practices PEOPLE AND CULTURE ESG Practice 77 Promoting ESG Best 38 Green Buildings Practice EFFECTIVE 40 Reducing our Carbon 78 ESG Ratings and Index GOVERNANCE Footprint Inclusions OUR TCFD REPORT
41 Sustainable 80 SUPPLEMENT: Our FEEDBACK Investment TCFD Report GRI AND HKSE GUIDE CONTENT 43 ESG Engagements 81 Governance of Climate INDEX 46 ESG Training and Change Risks and Development Impacts 48 Broadening Portfolio 81 Strategy Inclusions 82 Physical Climate Risks 49 Portfolio Exclusions 82 Transition Climate- 50 Carbon Footprinting related Risks Our Portfolio 84 Risk Management 87 Metrics and Targets
89 Feedback 90 Global Reporting Initiative and Hong Kong Stock Exchange Guide Content Index
PAGE 2 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 2020 ESG AT-A-GLANCE
2020 ESG AT-A-GLANCE
Health and Wellness 2020 ESG AT-A-GLANCE We provide cover with Serve the holders of AND OVER CHAIRMAN’S a total sum assured STATEMENT of almost MORE THAN 16 MILLION STATEMENT FROM US$ 2 38 MILLION participating members GROUP CHIEF of group insurance EXECUTIVE AND individual policies PRESIDENT TRILLION schemes ABOUT THIS REPORT WITH MORE THAN AND OVER HEALTH AND 13 MILLION WELLNESS BENEFIT US$ 16 US$ 4.5 PAYMENTS GREEN BILLION MILLION OPERATIONS were made during 2020, paid in benefits contributed to our helping customers and their and claims communities SUSTAINABLE families to cope with challenges INVESTMENT at different life stages PEOPLE AND CULTURE Green Operations EFFECTIVE GOVERNANCE ENVIRONMENTAL PERFORMANCE ENERGY PERFORMANCE PAPER USAGE Reduction in total carbon Reduction in total OUR TCFD REPORT emissions to energy use to MORE THAN FEEDBACK 42,550 CO 3,062 70% 2 of our buy, service GRI AND HKSE TONNES kWh and claims GUIDE CONTENT INDEX per employee transactions were submitted digitally, 1.8 TONNES reducing our need per employee for paper
Sustainable Investment
INVESTMENTS IN HEALTHCARE INVESTMENTS IN INFRASTRUCTURE CLIMATE ENGAGEMENTS Engaged with US$ 4.3 US$ 32.1 and scored BILLION BILLION 1,200+ invested in infrastructure- related sectors such COMPANIES as transportation and in the Group’s investment telecommunications portfolio, developing insights on their awareness of and preparedness against climate risk
PAGE 1 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 2020 ESG AT-A-GLANCE
People and Culture 2020 ESG AT-A-GLANCE DIVERSITY OVER Top Quartile CHAIRMAN’S STATEMENT in Gallup’s global financial services and insurance 39% 23,000 STATEMENT FROM industry benchmark of of our senior leaders employees across GROUP CHIEF EXECUTIVE AND employee engagement for are women 18 markets PRESIDENT the fourth consecutive year ABOUT THIS REPORT
Effective Governance HEALTH AND WELLNESS All Non-executive All Board committees are Directors on AIA Group chaired by and comprised GREEN nd OPERATIONS Limited Board are of a majority of Ranked 2 in the insurance industry by Sustainalytics in its ESG Risk SUSTAINABLE Independent Independent INVESTMENT Non-executive Directors Rating assessment PEOPLE AND CULTURE
EFFECTIVE Key ESG Memberships and Signatories GOVERNANCE OUR TCFD REPORT
FEEDBACK
GRI AND HKSE GUIDE CONTENT INDEX
Key Index Inclusions and Ratings
DISCLOSURE INSIGHT ACTION
PAGE 2 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020
Chairman’s Statement
“A better and more sustainable future for all.”
Mr. Edmund Sze-Wing Tse Independent Non-executive Chairman
PAGE 3 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 CHAIRMAN’S STATEMENT
2020 ESG AT-A-GLANCE
CHAIRMAN’S Staying true to STATEMENT STATEMENT
STATEMENT FROM GROUP CHIEF EXECUTIVE AND our Purpose PRESIDENT
I am delighted to present AIA with global best practice. We are incomes are driving rapid growth ABOUT THIS Group’s Environmental, Social and firm believers that our strong in the middle classes and Asian REPORT Governance (ESG) Report 2020. governance culture, supported consumers are transforming HEALTH AND by sound risk management, the region’s economies. At the WELLNESS Our history in Asia spans more is fundamental to ensuring same time, the provision of than a century and throughout a sustainable future for our social welfare remains low. The GREEN that time we have earned a organisation. pandemic has accelerated many OPERATIONS reputation as a trusted partner in trends, particularly the interest all of our communities. Our commitment to sustainability in Healthier, Longer, Better Lives. SUSTAINABLE and our ability to manage These structural trends are INVESTMENT 2020 was a difficult and in some associated risk have created creating substantial opportunities PEOPLE AND ways unprecedented year. The tangible value for our business for us to help people across the CULTURE outbreak of COVID-19 touched and for the communities we region meet their long-term so many of us and impacted serve. Over the years, we savings and protection needs. EFFECTIVE individuals, communities and have endeavoured to build We believe that protecting our GOVERNANCE global events. I am especially sustainable measures into our customers while helping them proud that despite this difficult key metrics. This also guides our on their journey to become OUR TCFD REPORT operating environment, our approach to our customer and healthier is the best service we outstanding teams were able employee relationships, helping can provide, for today and for the FEEDBACK to demonstrate AIA’s Purpose ensure that we have the right future. of helping people live Healthier, processes in place to build on GRI AND HKSE GUIDE CONTENT Longer, Better Lives. I am our strong history. This includes In 2021, we look forward to INDEX immensely grateful to all of our seeking and considering input continuing to play a leading role employees, agents, and partners from key internal and external in creating a more sustainable for their ongoing commitment to stakeholders on issues related tomorrow as we help millions supporting our customers and to climate change, public health, of people live Healthier, Longer, communities when they needed data privacy, cybersecurity, and Better Lives. us the most. ethical business practices. For us, managing these risks effectively Effective corporate governance is instrumental to the sustainable helps ensure that AIA remains growth of our business and, in resilient during the most turn, our Group. challenging times. The Board’s Independent Non-executive As we embark on a new Directors have extensive decade, I believe the long-term Edmund Sze-Wing Tse experience in the public and fundamental drivers of growth Independent Non-executive private sectors; perspectives that for the life insurance industry Chairman have been invaluable in providing in Asia remain robust. AIA 12 March 2021 objective judgement and direction continues to benefit from the this year. As a Board, we continue powerful demographic, social to meet our commitment to ensure and economic changes that are that our practices are aligned occurring in our markets. Rising
PAGE 4 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020
PAGE 5 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020
Statement from Group Chief Executive and President
“We will make a positive difference to the sustainable development of our communities.”
Mr. Lee Yuan Siong Group Chief Executive and President
PAGE 6 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 STATEMENT FROM GROUP CHIEF EXECUTIVE AND PRESIDENT
2020 ESG AT-A-GLANCE
A transformational, CHAIRMAN’S STATEMENT
STATEMENT FROM GROUP CHIEF long-term EXECUTIVE AND PRESIDENT
ABOUT THIS ESG Strategy REPORT HEALTH AND WELLNESS
The COVID-19 pandemic has reality—with tangible and trusted partner, we engage with GREEN transformed the way we all live measurable outcomes for our our communities and provide OPERATIONS and work and brought out the customers and communities. products that are focused on very best of AIA and our people. delivering better outcomes for SUSTAINABLE I am proud to announce our customers, helping them to INVESTMENT I am extremely proud of our that we have launched a stay healthier and live better for PEOPLE AND teams across the organisation transformational, long-term longer. CULTURE whose efforts helped AIA Environmental, Social, and demonstrate our resilience Governance Strategy (ESG Green Operations EFFECTIVE and commitment to our Strategy) reflective of our GOVERNANCE customers and communities position as a global industry The environment has a direct who were dealing with the leader. For more than a impact on the health and OUR TCFD REPORT challenges of lockdowns and century, AIA has strived to well-being of our customers, mandated quarantines. We have a positive impact on our employees and communities. FEEDBACK moved quickly to build on our customers and communities Therefore, it is vital that we digital capabilities to provide across Asia. Our ESG ensure appropriate measures GRI AND HKSE GUIDE CONTENT customers with uninterrupted Strategy further embeds that are taken to address key INDEX support and service. In addition, commitment and identifies five areas of impact within the we worked with governments key areas of focus: Health and environmental footprint of our and our partners to increase Wellness; Green Operations; own businesses, particularly protection to our customers Sustainable Investment; People in areas such as waste and provided critical donations and Culture; and Effective management and property to organisations supporting Governance. development. It is equally frontline healthcare workers. important that our business All of this helped provide peace Health and Wellness partners are expected to adopt of mind to our customers when best practices that enable our they needed us the most. While economic development communities to thrive for many in Asia has brought significant generations to come. Helping our customers live improvements in standards of Healthier, Longer, Better Lives living, lifestyle-related diseases Sustainable Investment has become our Purpose as an are the main contributor to organisation and it underpins premature deaths in the region. We use our influence as a everything we do. Continuing to At the same time, expectations leading life insurance company incorporate ESG considerations of wellness, health and in Asia to drive sustainable within our operations will maintaining quality of life into investment across the region. remain vital for AIA as we old age are increasingly front We seek sustainable outcomes transform our Purpose into of mind for many Asians. As a and secure investment income
PAGE 7 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 STATEMENT FROM GROUP CHIEF EXECUTIVE AND PRESIDENT
in order to deliver on the long- Effective Governance Despite the trials of the 2020 ESG term savings and protection past year, we have seen AT-A-GLANCE needs of our customers. We Sound and effective governance unprecedented collaboration, also understand the impact and operating to the highest including governments, CHAIRMAN’S that our investments can have standards of responsible companies, and non-profits STATEMENT on people’s lives and believe it business practices underpin working together to serve our is essential to take ESG factors sustainability. It guides AIA’s communities with courage and STATEMENT FROM GROUP CHIEF into consideration when making approach to engaging with compassion. We have seen EXECUTIVE AND our investment decisions so our stakeholders, effectively multiple COVID-19 vaccines PRESIDENT that we help drive sustainable managing risk, while supporting approved at unprecedented behaviours to create long-term innovation in our businesses speeds and businesses quickly ABOUT THIS value. A testament to this can and allows us to continue to adopt technologies to maintain REPORT be seen in our ambition to drive economic and social critical access for patients HEALTH AND divest from the coal mining development across the region. during the darkest times. At WELLNESS and coal-fired power sectors AIA we are deeply aware of the by 2028, making us the first In 2020, we were pleased that social and environmental issues GREEN major insurance firm in Asia to our practices were recognised our communities face, and are OPERATIONS make this commitment with no by a number of independent committed to overcoming them exceptions. third parties. This is in a sustainable and ethical SUSTAINABLE demonstrated through our CDP fashion. INVESTMENT score, which placed AIA among People and Culture PEOPLE AND CDP’s “Leadership” group We look forward to continuing CULTURE Our people span multiple (score of A-) for climate change to be a long-term partner for nationalities, cultures and performance, the highest all our customers, to helping EFFECTIVE communities, which we scoring tier for our sector. This ensure they live Healthier, GOVERNANCE believe gives us a competitive is one of the highest ratings for Longer, Better Lives, and advantage that is integral to climate change performance by doing so, we will make OUR TCFD REPORT our continued success. We for a Hong Kong-headquartered a positive difference to the promote an inclusive and company. We are also glad sustainable development of our FEEDBACK collaborative culture that that for two consecutive years, communities for decades to supports the development of Sustainalytics has placed come. GRI AND HKSE GUIDE CONTENT key capabilities. This provides AIA in the first percentile of INDEX a platform for meaningful and companies in the insurance With warmest regards, rewarding careers with AIA. By industry. engaging with and empowering our people, we are confident they will grow with us in their professional lives and do their best when supporting our customers and communities. Lee Yuan Siong Group Chief Executive and President 12 March 2021
PAGE 8 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 ABOUT THIS REPORT
2020 ESG AT-A-GLANCE
CHAIRMAN’S STATEMENT
STATEMENT FROM GROUP CHIEF EXECUTIVE AND PRESIDENT
ABOUT THIS About This Report REPORT Who We Are
Our Purpose AIA Group Limited (the “Company”) is pleased to Who We Are Our ESG Strategy present its ESG Report Our Material 2020 (the “Report”), which AIA Group Limited and its AIA meets the long-term Issues sets out in detail our ESG subsidiaries (collectively “AIA” savings and protection needs Strategy and commitment or the “Group”) comprise the of individuals by offering a Our Approach to ESG Reporting to our Purpose to help largest independent publicly range of products and services millions of people across listed pan-Asian life insurance including life insurance, HEALTH AND Asia live Healthier, Longer, group. It has a presence in accident and health insurance WELLNESS Better Lives. 18 markets – wholly-owned and savings plans. The Group branches and subsidiaries in also provides employee GREEN Mainland China, Hong Kong benefits, credit life and pension OPERATIONS SAR1, Thailand, Singapore, services to corporate clients. SUSTAINABLE Malaysia, Australia, Cambodia, Through an extensive network INVESTMENT Indonesia, Myanmar, the of agents, partners and Philippines, South Korea, Sri employees across Asia, AIA PEOPLE AND Lanka, Taiwan (China), Vietnam, serves the holders of more than CULTURE Brunei, Macau SAR2 and New 38 million individual policies Zealand, and a 49 per cent joint and over 16 million participating EFFECTIVE venture in India. members of group insurance GOVERNANCE schemes. The business that is now OUR TCFD REPORT AIA was first established in AIA Group Limited is listed on Shanghai more than a century the Main Board of The Stock FEEDBACK ago in 1919. It is a market leader Exchange of Hong Kong Limited GRI AND HKSE in Asia (ex-Japan) based on life under the stock code “1299” GUIDE CONTENT insurance premiums and holds with American Depositary INDEX leading positions across the Receipts (Level 1) traded on the majority of its markets. It had over-the-counter market (ticker total assets of US$326 billion as symbol: “AAGIY”). of 31 December 2020.
1 Hong Kong SAR refers to Hong Kong Special Administrative Region. 2 Macau SAR refers to Macau Special Administrative Region. PAGE 9 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 ABOUT THIS REPORT
Our Purpose
Our Purpose is to help millions of people across Asia live 2020 ESG AT-A-GLANCE
CHAIRMAN’S HEALTHIER, LONGER, STATEMENT STATEMENT FROM GROUP CHIEF EXECUTIVE AND BETTER LIVES PRESIDENT ABOUT THIS For more than a century, enabling people to understand REPORT AIA has strived to make a and manage their health, while Who We Are significant, positive impact for meeting their long-term savings our customers and communities and protection needs. We Our Purpose across Asia. As we look to believe that helping to create a the future, this commitment healthier Asia is one of the most Our ESG Strategy is reinforced by our Purpose: important and valuable things Our Material to help millions of people we can do for our communities, Issues live Healthier, Longer, Better today and in the future. Lives. Our Purpose guides Our Approach to ESG Reporting the decisions we make and the actions we take as an HEALTH AND organisation - empowering and WELLNESS
GREEN OPERATIONS
SUSTAINABLE INVESTMENT
PEOPLE AND CULTURE
EFFECTIVE GOVERNANCE
OUR TCFD REPORT
FEEDBACK
GRI AND HKSE GUIDE CONTENT INDEX
PAGE 10 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 ABOUT THIS REPORT
Our ESG Statement
AIA’s ambition is to be a global industry leader in ESG, shaping a sustainable future 2020 ESG for the communities we serve and creating AT-A-GLANCE long-term value for all our stakeholders. CHAIRMAN’S STATEMENT
STATEMENT FROM GROUP CHIEF Our ESG Strategy is realised by improving healthcare standards and EXECUTIVE AND wellness levels, by green operations, driving sustainable investing, PRESIDENT supporting our people culture, and effective governance. ABOUT THIS REPORT
Who We Are
Our Purpose Our ESG Strategy Our ESG Strategy Our Material Issues In 2020, the Group conducted A new ESG Strategy was for each of the strategic pillars a review of its ESG Strategy developed considering in order to measure and Our Approach to ESG Reporting with the ambition to develop feedback from both our internal manage our ESG performance. a more focused and impactful and external stakeholders, and The ESG Strategy focuses HEALTH AND ESG programme that maximises AIA’s material sustainability on five pillars: Health and WELLNESS the value we bring our issues, with an ambition to Wellness, Green Operations, communities. address ESG risks and drive Sustainable Investment, People GREEN meaningful impact. During and Culture, and Effective OPERATIONS 2021, AIA will establish key Governance. SUSTAINABLE performance indicators (KPIs) INVESTMENT
PEOPLE AND CULTURE OUR ESG STRATEGY IS BUILT ON FIVE PILLARS EFFECTIVE GOVERNANCE
Health and Wellness Green Operations Sustainable Investment OUR TCFD REPORT
FEEDBACK
GRI AND HKSE People and Culture Effective Governance GUIDE CONTENT INDEX
This Report has been developed around these five pillars. Each section of this Report focuses on a pillar of the ESG Strategy, followed by our approach which is discussed in detail with corresponding proofpoints and initiatives.
PAGE 11 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 ABOUT THIS REPORT
Health and Wellness
Engage and inspire people to improve their Provide greater access to quality care, relevant health and wellness through initiatives, events, and timely information, diagnoses, treatment community programmes and campaigns. and rehabilitation through our ecosystem partners.
Champion financial inclusivity and reduce the Build on our leading integrated wellness burden of medical expenses through a focus solutions and reward customers for on protection, prevention and personalised behavioural improvements, delivering better 2020 ESG propositions. health outcomes. AT-A-GLANCE
CHAIRMAN’S Green Operations STATEMENT Increase digitalisation and automation to Encourage improvements in environmental reduce the usage of paper and need for performance while prioritising vendors and STATEMENT FROM business travel. business partners who exemplify good ESG GROUP CHIEF EXECUTIVE AND practices. PRESIDENT
Ensure that all new buildings adhere to Reduce our carbon footprint, while also ABOUT THIS industry-recognised green building standards measuring and managing the amount of waste REPORT and environmental management best practices. produced from our operations. Who We Are Sustainable Investment Our Purpose Deepen ESG engagement with investee Continue to build on the consideration of ESG companies in directly managed portfolios. issues in the investment process by augmenting Our ESG Strategy Produce insights and case studies to enhance knowledge and capacity among our investment understanding and the adoption of best analysts through dedicated training initiatives. Our Material Issues practices. Our Approach to Broaden portfolio inclusions by specific Enhance portfolio exclusions in consideration ESG Reporting considerations of green bonds, sustainability of our objective to secure long-term investment bonds, renewable and alternative energy, and outcomes. HEALTH AND infrastructure. WELLNESS
Continue to carbon footprint our investment GREEN portfolio, with annual public disclosure and OPERATIONS develop emission reduction targets for our portfolio. SUSTAINABLE INVESTMENT People and Culture PEOPLE AND CULTURE Foster a learning culture that supports the Create a supportive work environment that development of our people and provides a promotes workplace diversity and advances platform for meaningful and purposeful careers our culture of innovation and inclusion. EFFECTIVE with AIA. GOVERNANCE
Embed a culture of ethical decision making and Ensure fair, accountable and equitable OUR TCFD REPORT strong risk management, in adherence to our processes for employment, progression, and Operating Philosophy and Code of Conduct. rewards for our people to deliver sustainable FEEDBACK business results. Effective Governance GRI AND HKSE GUIDE CONTENT INDEX Maintain a governance programme consistent Effectively manage ESG risks and with international best practice that fosters opportunities throughout our business, business integrity and sound decision-making maintaining and ensuring the sufficiency of through a diverse and highly-qualified Board our risk management framework to uphold comprising a majority of Independent Non- commitments to the highest standards of executive Directors. responsible business practices.
Lead the promotion of ESG best practice across Establish AIA as a global leader on key ESG the region, engaging with all stakeholders indices, ratings and benchmarks through including shareholders, regulators, vendors, effective and relevant ESG reporting. green finance and industry associations.
PAGE 12 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 ABOUT THIS REPORT
What role does life and health insurance 2020 ESG play in addressing sustainability issues? AT-A-GLANCE CHAIRMAN’S STATEMENT The insurance industry plays In addition, life and health insurance and support. These shifts, an important role in addressing solutions play a vital role in including the most recent STATEMENT FROM the sustainability challenges our supporting the continued growth challenges posed by COVID-19, GROUP CHIEF EXECUTIVE AND communities face across the and development of the region. have exacerbated the protection PRESIDENT region. They collect regular premiums gap for many in our communities. Life and health insurance and Life and health insurance from individuals holding long-term ABOUT THIS savings options help to address provides people with peace savings and protection policies. REPORT the protection gaps from these of mind knowing that they are These premiums are pooled by life insurance companies and deployed societal shifts, reducing the Who We Are protecting themselves, their burden on families and national families and their employees into large-scale collective capital investments to match policyholder healthcare systems, while Our Purpose against life’s uncertainties. Our providing people with a range of benefits. These finance long term policies protect millions of people options for accessing medical Our ESG Strategy investment in infrastructure and and businesses of all sizes. treatment. commercial investment to support Our Material Non-communicable diseases further economic growth. Issues (NCDs) are a leading cause of death globally. AIA is committed While rapid urbanisation and Our Approach to to wellness programmes that economic development bring ESG Reporting help our customers address the rising wealth, lifestyle changes significant risk factors associated have also disrupted the traditional HEALTH AND WELLNESS with increasing levels of NCDs family networks that people have in Asia. historically relied upon for security GREEN OPERATIONS
SUSTAINABLE INVESTMENT
PEOPLE AND CULTURE
EFFECTIVE GOVERNANCE
OUR TCFD REPORT
FEEDBACK
GRI AND HKSE GUIDE CONTENT INDEX
PAGE 13 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 ABOUT THIS REPORT
Our Material Issues
AIA’s ESG Strategy provides We Engage with Our The ESG Committee considers 2020 ESG a framework to prioritise and Stakeholders feedback from the Group’s AT-A-GLANCE address sustainability issues. stakeholders, including AIA’s Environmental, Social investors, employees, CHAIRMAN’S Material ESG issues are and Governance Committee customers, regulators, and the STATEMENT sustainability challenges that (ESG Committee) oversees Board. The ESG Committee have the potential to affect the development of the also considers research both STATEMENT FROM GROUP CHIEF our business, stakeholders, ESG Strategy and monitors commissioned internally EXECUTIVE AND strategy, and reporting. Our performance against ESG and published by academic PRESIDENT leadership team identify metrics and initiatives at the institutions. material issues by taking Company. The ESG Committee ABOUT THIS account of the feedback from comprises members of the AIA is proactive in engaging REPORT our stakeholders and the risks Group Executive Committee, with our stakeholders on ESG Who We Are and opportunities posed to our and an Independent Non- matters, including investors. business. executive Director of the Board. The Company also regularly Our Purpose responds to consultations with regulators and industry Our ESG Strategy associations on ESG topics. Our Material Issues
Our Approach to We Assess Material ESG Climate change COVID-19 Cybersecurity ESG Reporting Risks and Opportunities HEALTH AND In consideration of stakeholder WELLNESS feedback and the risks and opportunities posed to our GREEN business, the following three OPERATIONS material issues have been Data protection Digitalisation Diversity & SUSTAINABLE identified by the ESG Committee INVESTMENT as being central to our efforts inclusion to operate sustainably while PEOPLE AND supporting our communities. CULTURE
• The Growing Protection Gap EFFECTIVE GOVERNANCE • Lifestyle-Related Diseases Recruitment & Responsible Staff • Pollution retention business development & OUR TCFD REPORT practices training Other issues that present FEEDBACK both risks and opportunities GRI AND HKSE to our business more broadly GUIDE CONTENT are outlined on this page and INDEX discussed in sections of this Report. Given the challenges Our process to identifying and assessing ESG risks is discussed posed by COVID-19 to our in further detail within the Effective Governance section. communities, this was included as a material issue for 2020.
PAGE 14 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 ABOUT THIS REPORT
Our Approach to ESG Reporting
This Report has been structured This Report was reviewed and AIA has identified and reported 2020 ESG using the framework provided approved by the Company’s on eight SDGs, shown below AT-A-GLANCE by our ESG Strategy. The Report Board of Directors (the Board) and their related targets where is also produced in accordance on 11 March 2021. our business has the greatest CHAIRMAN’S with the “Core” option of the ability to drive change within STATEMENT Global Reporting Initiative our markets. This Report (GRI) Standards and Financial outlines our support for related STATEMENT FROM The United Nations GROUP CHIEF Services Sector Supplement, with Sustainable Development SDGs, with examples and case EXECUTIVE AND reference to the ESG Reporting studies to show how we do this. PRESIDENT Guide set out in Appendix 27 of Goals the Rules Governing the Listing of While we support these goals, ABOUT THIS Securities on The Stock Exchange Developed by the United our most direct contribution REPORT of Hong Kong Limited (HKSE). As Nations (UN), the Sustainable is to SDG 3, supporting Good Who We Are a signatory to the United Nations Development Goals (SDGs) Health and Well-being, through Global Compact (the UN Global are 17 overarching goals that our Purpose of enabling Our Purpose Compact), AIA also reports on our provide a global framework Healthier, Longer, Better Lives. progress toward the UN Global for peace and prosperity Our ESG Strategy Compact Ten Principles, and the in consideration of the Our Material Task Force on Climate-related environment. Adopted in 2015 Issues Financial Disclosures (TCFD). by all Member States of the UN, they are strategically important Our Approach to ESG Reporting to governments across Asia. Our reporting scope HEALTH AND WELLNESS To provide a comprehensive review of our impact and GREEN performance, the Report OPERATIONS includes data from all business SUSTAINABLE units where we maintain INVESTMENT majority operational control; and excludes data from Tata AIA PEOPLE AND Life Insurance Limited (Tata AIA CULTURE Life) where we own a 49 per cent interest in a joint venture. EFFECTIVE GOVERNANCE For easy reference to our reporting disclosures, the GRI OUR TCFD REPORT Index, the UN Global Compact, and the HKSE ESG Content FEEDBACK Index are provided at the GRI AND HKSE end of this Report. Additional GUIDE CONTENT information relevant to our INDEX ESG performance, including financial data and corporate governance matters, can be found in our Annual Report 2020. AIA makes every effort to Please click on the ensure consistency between the SDG icons above to be Chinese and English versions redirected to discussions of this Report. However, in the on each goal. event of any inconsistency, the English version shall prevail.
PAGE 15 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 HEALTH AND WELLNESS
2020 ESG AT-A-GLANCE
CHAIRMAN’S STATEMENT
STATEMENT FROM GROUP CHIEF EXECUTIVE AND PRESIDENT
ABOUT THIS Health and REPORT HEALTH AND WELLNESS
Engaging and Inspiring Healthy Wellness Living
Our ability to sustain Our ESG Strategy outlines our approach to driving better health Greater Access to AIA’s success requires an outcomes, greater engagement and access to quality care through Quality Care understanding of the Health our Health and Wellness ecosystem. Champion and Wellness challenges that Financial Inclusion our markets face. By identifying Our Strategic Approach the impacts these issues have Delivering Better on our communities and on Health Outcomes Engage and inspire people to improve their health and our business, we are able to wellness through initiatives, events, community programmes SUPPLEMENT: proactively address these in a Supporting our and campaigns. Communities manner that creates lasting and through COVID-19 meaningful shared value. Provide greater access to quality care, relevant and timely GREEN OPERATIONS information, diagnoses, treatment and rehabilitation through our ecosystem partners. SUSTAINABLE INVESTMENT
Champion financial inclusivity and reduce the burden of PEOPLE AND medical expenses through a focus on protection, prevention CULTURE and personalised propositions. EFFECTIVE GOVERNANCE Build on our leading integrated wellness solutions and reward OUR TCFD REPORT customers for behavioural improvements, delivering better health outcomes. FEEDBACK
GRI AND HKSE AIA’s Purpose of enabling Healthier, Longer, Better Lives is aligned GUIDE CONTENT with the SDG 3, to promote good health and well-being for all. INDEX This section outlines our contributions toward achieving this objective, and SDG Target 3.4: by 2030, reduce by one third* premature mortality from NCDs through prevention and treatment and promote mental health and well-being.
*Compared to 2015 levels
PAGE 16 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 HEALTH AND WELLNESS
We strive to proactively offer our customers new ways to engage with us, to support their resilience in the face of uncertainty and to ensure our continuity of support and service through difficult times.
PAGE 17 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 HEALTH AND WELLNESS
Engage and inspire Engaging and Inspiring people to improve their health and wellness Healthy Living through initiatives, events, community The nature of risk has changed. Poor lifestyle choices and a general of lack of programmes and awareness of healthy living practices contribute to high rates of NCD’s across Asia3. campaigns. AIA will continue to work with our customers and communities to better understand and raise awareness of the evolving health challenges and concerns faced by people, providing tailored content, preventative screening and wellness solutions that motivate 2020 ESG AT-A-GLANCE people to adopt healthier lifestyles. CHAIRMAN’S STATEMENT Our Research enable people to live Healthier, The findings of the study Longer, Better Lives. The delivered a blueprint for “How STATEMENT FROM GROUP CHIEF The research we conduct allows study was conducted by global to live Healthier, Longer, EXECUTIVE AND us to better understand the data insights company Kantar Better Lives” with specific PRESIDENT evolving health challenges and Group and involved in-depth behaviours people can adopt concerns faced by people across interviews with more than 80 to achieve this, beyond the ABOUT THIS the region. This contributes experts from a broad spectrum obvious steps of exercising, REPORT to our development of new of professional disciplines. In eating healthily and getting HEALTH AND products and initiatives that addition, there was a survey sufficient sleep, particularly WELLNESS motivate people across Asia to of 6,000 consumers across in the context of COVID-19. adopt healthier lifestyle habits. our six markets in the region, Based on extensive insights and Engaging and representing a cross-section data, we discovered eight core Inspiring Healthy Living In 2020, we released a ground- of cultures in Asia, including ingredients, along with tangible breaking research initiative, Australia, Mainland China, Hong actions that people can take. Greater Access to “Healthier Together”, revealing Kong, Malaysia, Thailand and Quality Care eight key ingredients that Singapore. Champion Financial Inclusion
Delivering Better AIA Healthier Together Study: Health Outcomes Eight Ingredients for Living Healthier, Longer, Better Lives SUPPLEMENT: Supporting our Communities through COVID-19
GREEN What you can do: OPERATIONS
Take time to understand what SUSTAINABLE motivates you, understand INVESTMENT what is important to you in life, and understand your limits, Take time to understand your PEOPLE AND Understand yourself and strengths, and weaknesses. motivations, values, strengths CULTURE your emotions and weaknesses. EFFECTIVE GOVERNANCE
What you can do: OUR TCFD REPORT
Feel confident identifying FEEDBACK what is right for you, focus GRI AND HKSE time and energy on things you GUIDE CONTENT can control, and be capable of Feel confident identifying INDEX improving your mental health. Feel a sense of independence what you can control and what is right for you.
3 World Health Organization (WHO) 2018 PAGE 18 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 HEALTH AND WELLNESS
What you can do:
Focus on your own personal goals, look for ways to make work/tasks/chores more engaging, and see setbacks as Self-Motivate learning opportunities. Focus on personal goals and see 2020 ESG setbacks as learning opportunities. AT-A-GLANCE
CHAIRMAN’S What you can do: STATEMENT STATEMENT FROM Create clear boundaries GROUP CHIEF between work and personal EXECUTIVE AND time and find ways to recharge PRESIDENT your energy levels. Create clear boundaries between Make time to recharge ABOUT THIS work and personal time. REPORT
HEALTH AND What you can do: WELLNESS
Engaging and Focus on giving people your full Inspiring Healthy attention, be open and honest Living with others, and seek out like-minded people who share Seek out like-minded people Greater Access to Quality Care Maintain quality relationships similar interests. and focus on giving them your full attention. Champion Financial Inclusion
Delivering Better What you can do: Health Outcomes
SUPPLEMENT: Be an active member of your Supporting our wider community, remain Communities socially active with friends and through COVID-19 family, and remain physically Be active in your community, GREEN Be active and engaged and mentally active. and keep physically, socially and OPERATIONS mentally active. SUSTAINABLE INVESTMENT What you can do: PEOPLE AND CULTURE Explore new ideas and engage with new things, challenge your EFFECTIVE own thinking, and be open to GOVERNANCE change. Explore new ideas and challenge Never stop learning or exploring your own thinking. OUR TCFD REPORT
FEEDBACK What you can do: GRI AND HKSE GUIDE CONTENT Look for the positive things in INDEX everyday situations, not letting negative events of the past affect the present and finding enjoyment in work. Look for the positive every day and Have an optimistic outlook stay focused on the present.
PAGE 19 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 HEALTH AND WELLNESS
The survey highlighted that 2020 ESG there is still more that people AT-A-GLANCE can be doing to live Healthier, Longer, Better Lives, with 85 CHAIRMAN’S per cent of those surveyed STATEMENT rating their adoption of the eight ingredients as insufficient, STATEMENT FROM GROUP CHIEF leaving only 15 per cent in a EXECUTIVE AND high performing group. More than 30 AIA Vitality PRESIDENT AIA Live Inspires, Ambassadors, including AIA Global Ambassador David The group of survey participants Motivates and ABOUT THIS Beckham, and partners from REPORT who felt they are adopting Educates around the world shared stories most of the ingredients of living about how they have changed HEALTH AND Healthier, Longer, Better Lives, their lives in a positive way. Leveraging the collective power WELLNESS said that COVID-19 had less of a of our AIA Vitality Ambassadors, negative impact on their lives. AIA produced a first-of-its-kind The event drew an audience Engaging and of more than 63,000 viewers Inspiring Healthy online all-day health and wellness Living The AIA Healthier Together event called AIA Live. Over from 60 countries on the day, one million social media study supports our Purpose eight hours of live streaming, Greater Access to by identifying real actions viewers tuned in to 37 sessions of engagements, and ultimately Quality Care reached 39 million people online. people can take to improve exclusive and curated health and wellness content, which offered AIA Vitality members also earned Champion their physical and mental well- Financial Inclusion unique insights, tips and practical additional points for engaging being. In 2021, we will actively with AIA Live. consider a number of options sessions to inspire people to live Delivering Better Healthier, Longer, Better Lives. that will allow customers to Health Outcomes interact with, and measure SUPPLEMENT: themselves against the results, Supporting our Communities including integrating the study through COVID-19 into our customer propositions. GREEN OPERATIONS
SUSTAINABLE INVESTMENT
PEOPLE AND CULTURE
EFFECTIVE GOVERNANCE
OUR TCFD REPORT
FEEDBACK
GRI AND HKSE GUIDE CONTENT INDEX
PAGE 20 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 HEALTH AND WELLNESS
Provide greater access Greater Access to Quality Care to quality care, relevant and timely information, Through integrating an expanding range of health and wellness services across all our diagnoses, treatment customer touchpoints, we will make quality care more accessible to our customers. and rehabilitation Through our collaboration with partners, we will help people at all stages of their through our ecosystem health journey, by getting involved in the prediction, prevention, diagnosis, treatment partners. and recovery stages when needed. 2020 ESG AT-A-GLANCE Virtual Healthcare empower our customers with of artificial intelligence the right knowledge, tools and (AI), biometrics, online risk CHAIRMAN’S Online health consultations professional support to help assessments and physical STATEMENT have become widely accepted them be more resilient. health screenings to ensure a by patients and healthcare seamless customer experience. STATEMENT FROM GROUP CHIEF providers in recent years. When From January to December Our goal is to minimise EXECUTIVE AND the outbreak of COVID-19 and 2020, AIA Singapore saw unnecessary face-to-face visits PRESIDENT social distancing measures a sevenfold increase in with doctors and steer them to accelerated the need for holistic telemedicine consultations the most appropriate healthcare ABOUT THIS digital health solutions, global for chronic diseases through specialist that will be able to REPORT healthcare and technology Whitecoat, a mobile application. deliver accurate diagnoses. HEALTH AND companies were able to scale AIA Sri Lanka provided free WELLNESS existing software platforms telemedicine consultations for As at December 2020, and expand their telemedicine all its customers from January telemedicine consultations Engaging and capabilities. to April 2020 through its oDoc were available to 1.3 million Inspiring Healthy Living service. AIA China, through its customers. Throughout this year, AIA has strategic partner WeDoctor, Greater Access to deployed telemedicine solutions also provided teleconsultations Please refer to the Supplement: Quality Care and many of our business to help customers manage Supporting our Communities Champion units strengthened their chronic illnesses. through COVID-19 for further Financial Inclusion partnerships with providers details on telemedicine to ensure that our customers AIA continues to enhance initiatives in the context of Delivering Better had vital access to healthcare. its telemedicine business COVID-19. Health Outcomes We used these solutions to by utilising a combination SUPPLEMENT: Supporting our Communities through COVID-19
GREEN OPERATIONS
SUSTAINABLE INVESTMENT
PEOPLE AND CULTURE
EFFECTIVE GOVERNANCE
OUR TCFD REPORT
FEEDBACK
GRI AND HKSE GUIDE CONTENT INDEX
PAGE 21 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 HEALTH AND WELLNESS
Strategic Partnerships As well as relieving concerns 2020 ESG about diagnoses, it also helps AT-A-GLANCE Personal medical case ensure they receive the best management service possible care wherever they CHAIRMAN’S are in the world. By providing STATEMENT Through our partnership our policyholders with personal with Medix, a global health medical case management, STATEMENT FROM GROUP CHIEF management solutions provider, AIA helps overcome local EXECUTIVE AND AIA has been able to provide healthcare disparities and PRESIDENT our customers with access makes international expertise to state-of-the-art guidance available. OF OUR CUSTOMERS WHO ABOUT THIS and support from a globally USED THIS SERVICE IN 2020: REPORT renowned team of medical This year, in Australia, HEALTH AND experts. Having worked with Indonesia, Thailand, Malaysia, WELLNESS Medix in Hong Kong and Vietnam, and Hong Kong, AIA Singapore since 2016 and 2018 and Medix offered an additional 23% Engaging and respectively, we have expanded COVID-19 rehabilitation case Inspiring Healthy received a refined Living our regional partnership to management service. Eligible diagnosis Thailand, Malaysia, Indonesia, policyholders who experienced Greater Access to Vietnam, India and Australia. ongoing COVID-19 related Quality Care health issues after being Champion Our partnership means AIA’s discharged from hospital Financial Inclusion policyholders have access were offered support through to a review of their medical recovery and rehabilitation to Delivering Better circumstances by specialists help them rebuild their health. 62% Health Outcomes drawn from Medix’s team of initial treatment SUPPLEMENT: of 300 in-house physicians AIA’s partnership with Medix plans were Supporting our Communities and its global network of enhances our differentiated amended based through COVID-19 more than 4,000 world- proposition in health and on the global best leading, independent medical well-being and demonstrates clinical advice GREEN specialists. our pledge to go beyond the provided OPERATIONS traditional, passive insurance The holistic medical business model to become SUSTAINABLE assessment ensures people a genuine partner with our INVESTMENT have access to the tools needed customers by improving PEOPLE AND to make the best decisions recovery outcomes. 27% CULTURE concerning their condition and of customers their care, including access to avoided treatment EFFECTIVE a second opinion if desired. altogether GOVERNANCE
OUR TCFD REPORT
FEEDBACK
GRI AND HKSE GUIDE CONTENT INDEX
PAGE 22 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 HEALTH AND WELLNESS
Champion financial Champion Financial Inclusion inclusivity and reduce the burden of medical Across our markets, AIA has a strong commitment to financial inclusion, which expenses through a focus includes offering new products and coverage to previously underserved communities, on protection, prevention such as the elderly, young people or those with pre-existing conditions. and personalised propositions. As discussed through examples AIA offered free COVID-19 cover within this sub-section, we seek for SME employees in select 2020 ESG to understand our customers markets, while in others we AT-A-GLANCE and our diverse communities, enabled digital services such tailoring our products to meet as teleconsultation services CHAIRMAN’S their needs through: for doctor appointments. As STATEMENT a recognition of our close Providing protection to partnership with SMEs, for the STATEMENT FROM • GROUP CHIEF people not traditionally third consecutive year, AIA EXECUTIVE AND What is the served by the insurance Hong Kong received the Best PRESIDENT industry, by expanding SMEs’ Partner Award from the Protection Gap? into new markets and Hong Kong General Chamber of ABOUT THIS REPORT The protection gap is the communities within those Small and Medium Business, for markets. providing high-quality, flexible shortfall in resources required HEALTH AND products and services across to protect individuals and WELLNESS families against unforeseen • Developing innovative both group insurance and mortality and morbidity risks. propositions that offer retirement. Engaging and In Asia, the mortality protection cover and mechanisms to Inspiring Healthy gap for 2019 was estimated at obtain cover for previously Living US$83 trillion and it is thought uninsurable diseases and Financial Education Greater Access to to be increasing by 4 per cent conditions, new diseases Quality Care every year. Research suggests and conditions, and expand Financial education is a that more than three-quarters this coverage to include new Champion of households in Asia face a fundamental part of the Financial Inclusion treatments and access to mortality protection gap of development of communities care. and we host a number of Delivering Better about eight times the average Health Outcomes annual household income4. initiatives across our markets • Increasing existing to educate our communities SUPPLEMENT: Contributing to this gap are the insurance cover of our on the importance of savings Supporting our rising costs and complexity customers, to address any Communities and insurance. By improving through COVID-19 of healthcare alongside the shortfall in treatment costs, financial literacy and helping growth of lifestyle-related through new add-ons or people make informed financial GREEN diseases, particularly diabetes, solutions. planning decisions, we are OPERATIONS hypertension and high empowering people to improve cholesterol. The COVID-19 their own financial well-being SUSTAINABLE pandemic has also shown how INVESTMENT vulnerable we are to novel Small and Medium and that of their families and local community. infectious diseases. Enterprises PEOPLE AND CULTURE The lack of sufficient protection AIA is a major provider of One of our signature cover for all these diseases group insurance, supporting programmes is run by the EFFECTIVE can have broader social and businesses and protecting their Philam Life Foundation (the GOVERNANCE economic consequences across employees across the region. Foundation), the Corporate the region, not to mention Social Responsibility (CSR) OUR TCFD REPORT their potential impact on lives More than half of the Asian arm of our business in the and families. AIA serves the labour force works for Small Philippines. The Foundation FEEDBACK holders of more than 38 million and Medium Enterprises runs programmes to help individual policies and over (SMEs), and as they prosper, Filipinos achieve financial GRI AND HKSE 16 million members of group GUIDE CONTENT insurance schemes across the SMEs contribute significantly security, where only about one INDEX region. As the largest pan-Asian to the development of local third of the adult population had life and health insurer, we are economies. In 2020, AIA issued a bank account in 2019. in a unique position to address more than 80,000 SME policies these challenges. covering more than 2.3 million employees in 2020.
4 Swiss Re Institute 2020 PAGE 23 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 HEALTH AND WELLNESS
To address these issues, the Microinsurance Offerings Foundation established the Strategic Philam Savings Awareness More than half the world’s and Values Education Sessions partnerships: population do not have any (Philam SAVES) initiative, kind of formal social security running programmes to teach empowering protection5. For people living the principles of financial women in in rural and underserved management to students, their urban areas, microinsurance 2020 ESG parents and teachers. Philam Sri Lanka products can provide protection AT-A-GLANCE SAVES is a volunteer initiative for those who are unable to by our employees and financial According to a 2015 AIA afford traditional insurance CHAIRMAN’S advisors, and is endorsed by survey, Sri Lankan women solutions. AIA Philam Life in the STATEMENT the Philippine Government’s are the primary decision- Philippines and Tata AIA Life Department of Education. makers on matters relating in India offer microinsurance STATEMENT FROM to their family’s protection GROUP CHIEF products in their respective and future, and are proactive EXECUTIVE AND PRESIDENT In 2020, we signed an about managing their health markets, reaching communities agreement to extend Philam and financial well-being. without access to traditional SAVES to reach 150,000 Sri Lanka’s low insurance life and health insurers. By ABOUT THIS REPORT grade 4 and 5 students in the penetration rate of 1.7 per partnering with microfinance Bangsamoro Autonomous cent suggests that if insurers institutions AIA Cambodia has HEALTH AND Region of Muslim Mindanao, in can understand women’s expanded protection cover to WELLNESS southern Philippines. With this protection priorities and more communities across the agreement we exceeded our connect with more women, the country. Engaging and commitment to reach 100,000 number of Sri Lankan women Inspiring Healthy Living savers by 2020. and families insured would increase. Greater Access to Quality Care This year, AIA Sri Lanka and the International Finance Champion Corporation (IFC) signed Financial Inclusion an agreement to develop a targeted women’s insurance Delivering Better programme strategy and Health Outcomes suitable products for SUPPLEMENT: Sri Lankan women. The Supporting our partnership will allow AIA Communities to reach more women and through COVID-19 empower them to protect what is most important to them. As GREEN This section supports SDG Target OPERATIONS Our commitments to financial well as increasing women’s 1.5 of building resilience of the poor inclusion align with SDG 10 and access to suitable products, related target of 10.1 to empower and those in vulnerable situations we hope this initiative will SUSTAINABLE and promote the social, economic and reduce their exposure and INVESTMENT and political inclusion of all, also help bring more women vulnerability to climate-related irrespective of age, sex, disability, into the insurance industry as extreme events and other race, ethnicity, origin, religion or economic, social and environmental PEOPLE AND employees, agents and future CULTURE economic or other status. leaders. shocks and disasters. EFFECTIVE GOVERNANCE
OUR TCFD REPORT
FEEDBACK
GRI AND HKSE GUIDE CONTENT INDEX
5 ILO 2019 PAGE 24 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 HEALTH AND WELLNESS
Build on our leading Delivering Better Health Outcomes integrated wellness solutions and AIA will build on its integrated wellness solutions to address the lifestyle-related reward customers risk factors associated with the increasing levels of NCDs and help meet the needs of for behavioural diverse communities throughout the region. We will work to accomplish this aim by improvements, incentivising our members to understand and reward them for improving their health, delivering better health focusing on preventative screenings and prevention and continuously innovating to address health challenges to ensure customers receive the right care at the right time. outcomes. 2020 ESG AT-A-GLANCE
Although economic NON-COMMUNICABLE DISEASES, INCLUDING MENTAL CHAIRMAN’S development in Asia HEALTH ISSUES, CAN BE ATTRIBUTED TO FIVE STATEMENT BEHAVIOURAL FACTORS7 has brought significant improvements in standards STATEMENT FROM GROUP CHIEF of living, the region continues EXECUTIVE AND to face significant social and NON-COMMUNICABLE DISEASES ARE PRESIDENT environmental challenges. RESPONSIBLE FOR OVER OF ALL DEATHS ABOUT THIS Health problems associated 70% WORLDWIDE REPORT with lifestyle factors and HEALTH AND pollution are reflected in WELLNESS an increase of NCDs, which account for 71 per cent of KEY CHRONIC Engaging and all deaths globally6. 37 per Inspiring Healthy RISKS CONDITIONS Living cent of deaths from these 5 5 diseases also occur before Greater Access to the age of 70 while low and Quality Care middle-income countries face PHYSICAL LUNG INACTIVITY DISEASE Champion the greatest risk from NCDs, Financial Inclusion further compromising poverty reduction and development Delivering Better efforts7. 19 Health Outcomes UNHEALTHY DIABETES SUPPLEMENT: Communicable diseases DIET Supporting our Communities including HIV, tuberculosis, through COVID-19 malaria and viral hepatitis, put billions of people around the GREEN world at risk. Meanwhile, the SMOKING CANCER OPERATIONS protection gap in Asia keeps increasing and was estimated to SUSTAINABLE be US$ 83 trillion8 in the region INVESTMENT in 2019. HEART EXCESS PEOPLE AND ALCOHOL DISEASE CULTURE
EFFECTIVE GOVERNANCE AIR MENTAL POLLUTION HEALTH OUR TCFD REPORT FEEDBACK
GRI AND HKSE GUIDE CONTENT INDEX
6 WHO 2018 7 WHO 2014 8 Swiss Re Institute 2020 PAGE 25 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 HEALTH AND WELLNESS
2020 ESG AT-A-GLANCE
CHAIRMAN’S STATEMENT
STATEMENT FROM GROUP CHIEF EXECUTIVE AND PRESIDENT
ABOUT THIS REPORT
HEALTH AND WELLNESS
Engaging and Inspiring Healthy Living
Greater Access to Quality Care fitness, nutritional and wellness programmes, attending Champion evaluations, encourages smoking cessation courses Financial Inclusion members to understand and getting sufficient sleep. their current state of health, Membership rewards include Delivering Better AIA wellness identify areas for improvement, vouchers for coffee and healthy Health Outcomes programmes and complete health checks food, and gym memberships. SUPPLEMENT: with healthcare providers. AIA Vitality also has partnered Supporting our Communities AIA Vitality is our Every action members take with leading providers of through COVID-19 comprehensive science- to complete their health wearables, giving members backed wellness programme assessment earns AIA Vitality access to wearables devices GREEN that engages with participants Points. at discounted rates, which can OPERATIONS to encourage them to make in turn assist our members on measurable improvements to Members are also encouraged their health journey. SUSTAINABLE their health. This award-winning and rewarded with AIA Vitality INVESTMENT programme builds on concepts Points, and offered discounts 3. Be Rewarded PEOPLE AND of behavioural economics, for screenings and vaccinations CULTURE motivating members to improve to detect and prevent Taking positive steps to improve their health and well-being communicable diseases. health thus earning AIA Vitality EFFECTIVE by earning AIA Vitality Points, Points, enables members to GOVERNANCE which entitle them to benefits 2. Improve Your Health progress through four Vitality and rewards. status levels, from Bronze OUR TCFD REPORT AIA Vitality encourages to Platinum, enjoying better AIA Vitality helps members members to set health goals rewards at each tier. In addition FEEDBACK improve their well-being and then awards AIA Vitality to incentives for healthy living, through three key steps: Points for taking steps towards the benefits also include GRI AND HKSE GUIDE CONTENT achieving them. These steps discounts of up to 15 per cent INDEX 1. Know Your Health typically include increasing on our insurance products exercise and activity levels, and vouchers or discounts on An AIA Vitality health making healthier meal shopping, entertainment and assessment, which includes choices, taking part in fitness travel purchases.
PAGE 26 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 HEALTH AND WELLNESS
Fulfilling Our Promise OVERALL MEMBERSHIP OF OUR WELLNESS PROGRAMMES ACROSS THE GROUP EXCEEDED 1.8 MILLION AT THE END OF DECEMBER 2020. Through AIA Vitality we are empowering people to take control of their health and focus on the risks associated with increasing rates of NCDs such 24% 73% of our members of our members as diabetes, cardiovascular 2020 ESG disease and cancer. who started with an who started with an AT-A-GLANCE unhealthy BMI range unhealthy glucose AIA Vitality is currently available have moved to a range have moved to a CHAIRMAN’S healthy range healthy range in Hong Kong, Thailand, STATEMENT Singapore, Malaysia, Australia, South Korea, Macau, the STATEMENT FROM GROUP CHIEF Philippines, Indonesia and New A member’s AIA Vitality Age EXECUTIVE AND Zealand. AIA has also developed is their actual age relative PRESIDENT a wellness programme to 52% to a variety of heath factors. meet the specific needs of our of our members Members improved their ABOUT THIS customers in Mainland China. who started with Vitality Age by an average of REPORT an unhealthy blood pressure range have HEALTH AND We monitor and report on moved to a healthy range WELLNESS the health impacts of the 0.67 years AIA Vitality Programme with since joining the programme Engaging and verifiable health data. To date Inspiring Healthy Living we have captured 8.7 million health assessments, 4.1 million Greater Access to body mass index (BMI) readings 37% Quality Care and are tracking more than of our members Champion 790,000 workouts submitted via who started with an Financial Inclusion fitness trackers each day. unhealthy cholesterol range have moved to a Delivering Better healthy range Health Outcomes SUPPLEMENT: Supporting our Communities through COVID-19
GREEN OPERATIONS
SUSTAINABLE INVESTMENT
PEOPLE AND CULTURE
EFFECTIVE GOVERNANCE
OUR TCFD REPORT
FEEDBACK
GRI AND HKSE GUIDE CONTENT INDEX
PAGE 27 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 HEALTH AND WELLNESS
Maintaining Fitness inspiration on staying mentally 1970s, including SARS, Ebola, Habits and physically well and active at MERS, avian flu, swine flu and home. Members could also earn Zika virus, while diseases such The importance of staying points through participation in as cholera and tuberculosis, healthy was a particular focus online workouts when advised thought to be in decline, have in 2020. Pandemic prevention to stay indoors. rebounded. measures changed many people’s established fitness In October, AIA Singapore Rather than linking claims to a 2020 ESG habits and threatened to organised AIA Health & technical or medical diagnosis AT-A-GLANCE negatively impact physical and Wellness Live 2020, awarding or medical bills, AIA has mental well-being. AIA Vitality Points to members innovated to address changes CHAIRMAN’S for tuning in. This two-day in cancer treatments and STATEMENT To ensure that AIA Vitality event featured both live outcomes. As well as providing members maintained their and pre-recorded content, life insurance and health STATEMENT FROM GROUP CHIEF fitness and wellness habits, even featuring panel discussions on protection based on the severity EXECUTIVE AND when they had to stay home balancing business productivity of cancer and carcinoma-in-situ PRESIDENT and were socially isolated, AIA and employee wellness, the and future medical advances found new ways to engage with healthcare revolution, and in treatments, AOACS includes ABOUT THIS customers, and introduced new provided tips from health cover for any known or novel REPORT ways for them to earn points and and mental wellness experts, serious infectious disease HEALTH AND stay motivated. healthy recipe cooking that the WHO declares to be WELLNESS demonstrations and workouts. a Public Health Emergency of During the year, we made International Concern, which Engaging and several enhancements to includes COVID-19. Inspiring Healthy Living the AIA Vitality platform to Innovating to Address improve reach and engagement. Health Challenges With claims calculated using a Greater Access to Members completed nearly transparent scoring system and Quality Care one million new mental well- AIA continues to develop new total benefits payable up to 160 Champion being assessments over the products that provide care to per cent of the sum assured in Financial Inclusion 12 months as we increased our customers throughout their the most severe cases, AOACS our focus on mental resilience lives, to support the prevention, offers extra protection for Delivering Better across our markets. We also treatment, and management of conditions with a high degree Health Outcomes entered an exclusive regional health outcomes. of severity, at an affordable SUPPLEMENT: partnership with Holmusk, premium. Supporting our Communities a global data science and Cancer and Serious Infections through COVID-19 healthcare technology company Disease Protection Well-being Coaching to develop AI enabled nutrition Programmes GREEN coaching services for AIA In 2020 we launched AIA One OPERATIONS Vitality’s nutrition programme. Absolute – Cancer & Serious More people are surviving Infectious Disease Protection cancer than ever before, thanks SUSTAINABLE In March 2020, when Australia (AOACS) in Hong Kong, a first- to early detection and improved INVESTMENT moved into a nationwide in-market proposition that pays treatments. PEOPLE AND lockdown, many people could claims based on the impact of CULTURE not go to the gym, workout the customer’s condition and Regardless, a cancer diagnosis outdoors or participate in sports their medical journey. can be an overwhelming EFFECTIVE as they usually did. In response, and isolating experience. GOVERNANCE AIA Vitality increased the There are more than 100 Recent studies suggest health number of points awarded for types of cancer and myriad outcomes and quality of life OUR TCFD REPORT daily step goals, leading to a 23 treatment options that depend can improve with greater per cent increase in members on the type and stage of the patient engagement and self- FEEDBACK using tech devices to track their cancer and whether it has management, but there is a lack activities. metastasised from the original of supporting tools for cancer GRI AND HKSE GUIDE CONTENT site. Meanwhile, infectious patients outside of the clinical INDEX AIA Australia and AIA New diseases continue to evolve, setting. Zealand also developed the and existing viruses such as AIA Vitality Well-being Toolkit, malaria and dengue have Research has also an online resource comprising spread to new areas. Scientists demonstrated that patients articles, podcasts and videos, have discovered at least 40 new who focus actively on their providing tools, tips and infectious diseases since the well-being, such as logging
PAGE 28 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 HEALTH AND WELLNESS
2020 ESG AT-A-GLANCE
CHAIRMAN’S STATEMENT
STATEMENT FROM GROUP CHIEF EXECUTIVE AND PRESIDENT
ABOUT THIS REPORT
HEALTH AND WELLNESS
Engaging and their symptoms, exercising, and well-being support. The six- these programmes returned to Inspiring Healthy Living undergoing rehabilitation, have week coaching programme work. In addition, 97.5 percent better health outcomes while empowers members living with of customers reported that Greater Access to undergoing cancer treatments cancer to gain greater control they were satisfied with the Quality Care and in their post-cancer lives. over their disease and support programme. Champion them to make a successful Financial Inclusion In 2018, in light of these transition to a full and At Australia’s 2020 Shared Value findings, AIA partnered meaningful life after cancer. Awards, the CancerAid Coach Delivering Better with CancerAid to develop a Program was awarded Shared Health Outcomes pilot programme to support our This digital and personalised Value Project of the Year, while SUPPLEMENT: customers undergoing cancer approach helps patients to AIA Australia was honoured as Supporting our Communities treatment. navigate their care and achieve Shared Value Organisation of the through COVID-19 improved health outcomes. Year. Both awards reflect AIA’s The CancerAid Coach Program commitment to doing more to GREEN is a digital application-based The results have been positive: make a difference in the lives OPERATIONS initiative that includes weekly 40 per cent of CancerAid of customers when they need it educational modules, self- Coach customers progressed most. SUSTAINABLE management tools and through to AIA comprehensive INVESTMENT techniques, and a personal occupational rehabilitation PEOPLE AND coach who provides education, programmes, and 82 per cent CULTURE motivation, accountability, and of customers who enrolled in EFFECTIVE GOVERNANCE
OUR TCFD REPORT
FEEDBACK
GRI AND HKSE GUIDE CONTENT INDEX
PAGE 29 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 HEALTH AND WELLNESS
SUPPLEMENT: Supporting Our Communities Through COVID-19
This supplement to our 2020 ESG Report this year outlines the AT-A-GLANCE considerable ways that we have supported our communities CHAIRMAN’S during this challenging time. STATEMENT
2020 was an exceptional year STATEMENT FROM GROUP CHIEF with all of our communities EXECUTIVE AND facing unprecedented PRESIDENT socioeconomic challenges as COVID-19 affected millions ABOUT THIS of lives across our markets, REPORT impacting people’s physical, HEALTH AND mental and financial well-being. WELLNESS
From the early weeks of the Engaging and pandemic, AIA responded Inspiring Healthy Living rapidly, staying true to our Purpose of helping people live Greater Access to Healthier, Longer, Better Lives. Quality Care
Champion People working in every part Financial Inclusion of our business were proactive and quick to adapt. We changed Delivering Better the way we worked to address Health Outcomes the needs of our stakeholders SUPPLEMENT: and respond to unexpected Supporting our Communities situations. It was vital that through COVID-19 we acted quickly and stayed resilient to ensure continuity of GREEN support. OPERATIONS
SUSTAINABLE INVESTMENT
PEOPLE AND CULTURE In 2020, Our employees EFFECTIVE we contributed volunteered GOVERNANCE over more than OUR TCFD REPORT
US$4.5 13,000 FEEDBACK MILLION HOURS. GRI AND HKSE to community causes. To find out more about GUIDE CONTENT our CSR programmes, INDEX visit our CSR webpage.
PAGE 30 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 HEALTH AND WELLNESS
Expanding Protection Cover
Many of our customers faced unexpected health concerns and worries about financial insecurity. AIA wanted to reassure and support our customers and encourage community resilience by offering additional insurance cover free of charge in some markets, as one of a number of other initiatives.
Mainland China As a significant commitment Australia 2020 ESG to our communities, AIA AT-A-GLANCE In the early days of the extended free COVID-19 In Australia, AIA sought to pandemic, AIA China took a coverage until 30 September alleviate potential stressors CHAIRMAN’S series of immediate actions 2020, with HK$/MOP 15,000 for customers making claims STATEMENT to alleviate the financial diagnosis benefit and HK$/ and took a flexible approach stress suffered by patients. MOP 150,000 compassionate to assessment wherever STATEMENT FROM GROUP CHIEF This included a RMB 200,000 benefit, to all Hong Kong and possible. For long-term income EXECUTIVE AND payment to policyholders Macau residents and AIA protection claimants, we lifted PRESIDENT in case of disability or as a customers who registered the requirement for a monthly compassionate benefit to for the free cover via the AIA medical certification and placed ABOUT THIS families as a result of COVID-19, Connect mobile app. As part of these customers on scheduled REPORT during the critical period from this campaign AIA offered free payments for three months, to HEALTH AND February to June 2020. AIA COVID-19 protection cover to avoid the need to visit a doctor WELLNESS China also provided insurance over 500,000 people. in person. For other claims, protection of up to RMB staff sought to get information Engaging and 600,000 for each medical from claimants by phone or via Inspiring Healthy Singapore Living worker from a total of 43 telehealth services, to reduce hospitals, who went to Hubei AIA Singapore provided the need for in-person medical Greater Access to province and its capital city of free COVID-19 coverage for reviews. Quality Care Wuhan to offer their care and 2.6 million existing eligible Champion support. individual customers, corporate Sri Lanka Financial Inclusion members, employees and Hong Kong and Macau AIA representatives. As part AIA worked with Sri Lanka’s Delivering Better of the AIA #ShareTheLove Ministry of Health to provide Health Outcomes AIA Hong Kong responded 2020 campaign, we enabled free life insurance cover SUPPLEMENT: to the developing pandemic customers to purchase worth LKR 500,000, as well Supporting our Communities by providing free enhanced affordable life cover for as a hospital cash benefit through COVID-19 protection against COVID-19 themselves and provide loved to employees from three and claim support measures to ones with additional cover for of the main hospitals and GREEN all customers. free. AIA offered complimentary centres dedicated to treating OPERATIONS AIA #ShareTheLove Insurance COVID-19. As part of its own Identifying a protection gap plans covering COVID-19 and 21 #ShareTheLove campaign, AIA SUSTAINABLE for frontline cleaning workers, infectious diseases, including Sri Lanka also gave customers INVESTMENT AIA initiated a campaign titled dengue fever for the essential the opportunity to give someone PEOPLE AND “Unsung Heroes” and offered workforce. else a year of life cover worth CULTURE free protection benefits as a LKR 1 million when they bought way to thank these essential To ease worries about financial a new policy. EFFECTIVE workers who provide an instability, AIA Singapore GOVERNANCE invaluable service to Hong Kong introduced AIA Retrenchment and Macau. The AIA Foundation Cover for selected AIA plans OUR TCFD REPORT also donated 10,000 health as a complimentary benefit for protection kits to disadvantaged policyholders should they be FEEDBACK families. retrenched involuntarily and remain unemployed. This free GRI AND HKSE GUIDE CONTENT coverage waives the premiums INDEX for specified policies for up to 12 months.
PAGE 31 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 HEALTH AND WELLNESS
Expanding Virtual Healthcare Access
Technology was key to keeping our people and our communities safe and ensuring continuity from the start of the pandemic. Across the world, as concern grew about healthcare facilities being overwhelmed, we worked with our strategic partners to develop more online medical services to offer accessible solutions to our customers and ease pressure on local medical infrastructure.
When it became imperative to practice social distancing and exercise caution when meeting indoors, we 2020 ESG were able to leverage our existing digitalisation initiatives and accelerate other projects to make many of our AT-A-GLANCE products available online. CHAIRMAN’S At a time when health, well-being and access to healthcare were of the utmost importance and yet often STATEMENT inaccessible, we put digital solutions in place to facilitate and ensure continuity of care. The value of telehealth services has been demonstrated in many of our markets. Key examples of some of these initiatives STATEMENT FROM GROUP CHIEF are outlined below. EXECUTIVE AND PRESIDENT
Mainland China Australia Sri Lanka ABOUT THIS REPORT By making its network of To reduce the potential In recognition of the difficult HEALTH AND over 45,000 licensed doctors impact of the pandemic, AIA circumstances, AIA Sri Lanka WELLNESS available to provide online Australia moved face-to-face made its oDoc service free to medical consultations directly occupational rehabilitation select insurance customers. Engaging and to customers, AIA China and services to a telehealth service oDoc is a mobile application Inspiring Healthy Living its strategic partner WeDoctor and delivered more services to that connects patients with helped to ease pressure on local customers at home through its doctors for video, audio Greater Access to hospitals dealing with COVID-19 health coaching programmes. and text consultations, Quality Care patients. allowing customers to book Champion Medical studies suggest that over 400 Sri Lanka Medical Financial Inclusion Thailand patients who recover from Council registered general COVID-19 have an increased practitioners and specialists, Delivering Better To support people at high risk of chance of developing chronic receive prescriptions and get Health Outcomes contracting the virus and those lung diseases. To ensure medication delivered. If lab SUPPLEMENT: concerned about symptoms, better health outcomes for tests are required, the app can Supporting our Communities AIA Thailand, in collaboration our customers, AIA Australia arrange for a mobile lab to be through COVID-19 with communications firm True created an industry-first sent to homes or offices. Digital Group and SAMITIVEJ, a telehealth programme GREEN Thai hospital group, launched called Breathe Well, to help OPERATIONS Virtual COVID-19 Clinic. The customers manage their service provided a 24/7 respiratory health. Breathe SUSTAINABLE teleconsultation service free of Well offers seven coaching INVESTMENT charge for a one-month period. sessions delivered by exercise PEOPLE AND physiologists and education on CULTURE Singapore appropriate exercises during their recovery. The programme EFFECTIVE Aiming to reduce some of the also identifies participants who GOVERNANCE pressure on the health system, require a formal rehabilitation AIA Singapore, in partnership programme and then OUR TCFD REPORT with on-demand telemedicine connects them with an expert provider WhiteCoat, offered rehabilitation team. FEEDBACK corporate customers access to teleconsultation services GRI AND HKSE GUIDE CONTENT with doctors as part of their INDEX employee benefits and covered the cost of 50,000 teleconsultations for holders of the HealthShield Gold Max policy.
PAGE 32 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 HEALTH AND WELLNESS
Safeguarding Health through Digital Sales
To safeguard the health of our customers, employees and agents, we moved to digital sales in many markets and will continue to leverage leading-edge digital technology to proactively respond to the ever- changing market landscape.
We also introduced AirSign and Sign Everywhere solutions, so our customers could have the option to sign forms on their mobile phones without meeting in person. AirSign solutions have been launched in Hong 2020 ESG Kong, Singapore, Thailand, Malaysia, the Philippines, Indonesia, Myanmar and Cambodia. In an industry AT-A-GLANCE first initiative for Sri Lanka, AIA also enabled customers to use enterprise-grade, secure remote digital signatures. CHAIRMAN’S STATEMENT
Hong Kong Indonesia The Philippines STATEMENT FROM GROUP CHIEF EXECUTIVE AND In July, AIA Hong Kong Amid extended social AIA Philam Life launched The PRESIDENT launched “Remote Insurance restrictions in Indonesia, Coffee Closing Project, an Purchase” to make it safe for we introduced AIA DigiBuy, enhanced digital selling platform ABOUT THIS customers to buy insurance which allowed customers to with a 20-minute three-step REPORT and receive uninterrupted purchase insurance through a process: HEALTH AND protection by connecting with virtual meeting by telephone WELLNESS AIA via digital, telephone, post or video call. Through AIA 1. e-Submission and and video-conference services. DigiBuy, agents were able to e-Signature, where Engaging and A total of 23 products were explain product and benefits customers review and Inspiring Healthy Living made available under this and continue the sales process acknowledge the insurance arrangement, including medical, remotely. agreement; Greater Access to critical illness, term policies and Quality Care personal accident categories. 2. e-Payment via debit or credit Champion card; and Financial Inclusion
3. Auto Underwrite using Delivering Better Fusion, a proprietary Health Outcomes technology, to finalise the SUPPLEMENT: insurance policy. Supporting our Communities through COVID-19
GREEN OPERATIONS
SUSTAINABLE Award for Resilience INVESTMENT PEOPLE AND CULTURE
EFFECTIVE At the 2020 Hong Kong and online capabilities, to ensure significant progress was made GOVERNANCE International Data Corporation agents could continue to deliver on increasing access to digital (IDC) Digital Transformation uninterrupted service and support to learning and recruitment, with OUR TCFD REPORT Awards, AIA received the Hong our customers and our communities. most markets on track to deliver Kong 2020 Special Award for enhanced capabilities. While FEEDBACK Resiliency. The market research Remote agency meetings, COVID-19 helped accelerate the company reported that AIA communications and remote sales adoption of some of these new responded with speed and were enabled across all markets, tools, digitalisation drives our GRI AND HKSE GUIDE CONTENT purpose to the outbreak of and by the end of April 2020, transformation strategy. INDEX COVID-19 by accelerating the almost half of AIA’s sales were adoption of new digital tools being closed remotely. In addition,
PAGE 33 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 HEALTH AND WELLNESS
Supporting Mental Well-being
Financial instability, lockdowns, quarantine, closed borders, travel bans, and social distancing measures all raised concerns about increased social isolation and the negative impact on mental well-being.
In Australia, AIA proactively In May, AIA Australia entered a AIA Malaysia partnered engaged with regulators partnership with the Mentemia with ThoughtFull to 2020 ESG and the government to raise mental well-being platform, provide its employees with AT-A-GLANCE concerns about the potential to launch an evidence-based free unlimited access to for increased mental health mental health app. Available mental health coaching by CHAIRMAN’S problems. AIA Australia, free of charge to everyone in certified professionals via STATEMENT alongside other insurers Australia for six months, the ThoughtFullChat, a mobile app. and superannuation funds, app contained simple, bite- STATEMENT FROM GROUP CHIEF partnered with mental health size tools and techniques to EXECUTIVE AND organisation SuperFriend to help communities cope with PRESIDENT advocate for the adoption of common stressors. initiatives to address mental ABOUT THIS health issues during the REPORT pandemic. HEALTH AND WELLNESS
Engaging and Inspiring Healthy Living
Community Support and Donations Greater Access to Quality Care From the start of the pandemic, AIA recognised the importance of supporting local communities and Champion healthcare infrastructure, responding to the new issues faced by communities with both donations and Financial Inclusion community engagement. Delivering Better Across the markets we operate in, we pledged a total of nearly US$1 million of pandemic support to Health Outcomes charities, medical institutions and partners who can channel resources to families in need, extending our SUPPLEMENT: support to a wider group of beneficiaries. Supporting our Communities through COVID-19
Mainland China Vietnam Thailand GREEN OPERATIONS In collaboration with WeDoctor, To provide financial support “Fight Together Against AIA China contributed more for doctors and medical staff COVID-19” rallied AIA Thailand SUSTAINABLE than RMB 4 million to sponsor working on the frontline, AIA employees, agents, business INVESTMENT medical kits to Wuhan and Vietnam made donations partners and customers to PEOPLE AND surrounding cities in Hubei, totalling VND 2 billion for engage with communities CULTURE which included 10 tonnes of essential medical equipment. across the kingdom as disinfectant, 960 virus testing AIA Vietnam also set up a volunteers on various relief EFFECTIVE kits, 60 respirators and 20 financial assistance programme projects targeting low-income GOVERNANCE thousand pairs of surgical of up to VND 23 billion for families, people with disabilities gloves. In partnership with the frontline medical workers who and other under-served groups. OUR TCFD REPORT Amity Foundation, more than tested positive for COVID-19. They distributed 12,000 3,800 AIA China agents and kindness survival kits to people FEEDBACK employees raised over RMB most affected by COVID-19 in 500,000 in funds that were 12 provinces across Thailand GRI AND HKSE GUIDE CONTENT used to purchase an ambulance and our agency force also INDEX and 150,000 pairs of surgical donated THB 300,000 to local gloves for Hubei province. hospitals and the National Cancer Institute.
PAGE 34 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 GREEN OPERATIONS
2020 ESG AT-A-GLANCE
CHAIRMAN’S STATEMENT
STATEMENT FROM GROUP CHIEF EXECUTIVE AND PRESIDENT
ABOUT THIS Green REPORT HEALTH AND WELLNESS
GREEN Operations OPERATIONS Digital Transformation
The environment has a Our Green Operations pillar encompasses four key priorities. Encouraging Good direct impact on the health ESG Practice and well-being of our Our Strategic Approach Green Buildings customers, our employees and our communities. It is Reducing our critically important that we Increase digitalisation and automation to reduce the usage of paper Carbon Footprint understand the effects of and need for business travel. SUSTAINABLE our own impact, and where INVESTMENT possible, influence positive environmental practices PEOPLE AND amongst our stakeholders Encourage improvements in environmental performance while CULTURE and within our markets. prioritising vendors and business partners who exemplify good ESG practices. EFFECTIVE GOVERNANCE
Ensure that all new buildings adhere to industry-recognised OUR TCFD REPORT green building standards and environmental management best practices. FEEDBACK
GRI AND HKSE GUIDE CONTENT INDEX Reduce our carbon footprint, while also measuring and managing the amount of waste produced from our operations.
This section outlines our support of SDG 13 on climate action, and SDG Target 13.3 to improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning.
PAGE 35 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 GREEN OPERATIONS
PAGE 36 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 GREEN OPERATIONS
Increase digitalisation Digital Transformation and automation to reduce the usage of AIA’s digital transformation is helping to shape our future and end the traditional view paper and need for of insurance as an industry reliant upon forms and paperwork. Meanwhile, our use business travel. of video conferencing technology has improved efficiency and reduced the need for business travel.
2020 ESG Building on a framework transactions were submitted AT-A-GLANCE created in 2018, we track our digitally. We now use digital 60%+ levels of digitalisation and methods for more than 60 per CHAIRMAN’S STATEMENT of communications automation in operations across cent of communications with all our markets. Our main focus policyholders, requiring fewer with policyholders is on digitalising more of our physical paper letters. STATEMENT FROM GROUP CHIEF completed digitally, customer interactions, to create EXECUTIVE AND requiring fewer paper better service options and Following the successful PRESIDENT letters. reduce the amount of paper we utilisation of video conferencing consume. technology in 2020 for ABOUT THIS meetings and collaboration, REPORT During 2020, as a result of AIA aims to continue to use this HEALTH AND the COVID-19 pandemic, we technology, where feasible, to WELLNESS made more products available reduce the need for business through digital channels and travel. Emissions from business GREEN customers were able to buy travel are incorporated within OPERATIONS products and submit more the Group’s Scope 3 emission claims online than ever before. footprint found in Our TCFD Digital Transformation Report. As of the end of the year, Encouraging Good more than 70 per cent of ESG Practice our buy, service and claims Green Buildings
Reducing our Carbon Footprint
SUSTAINABLE Encourage Encouraging Good ESG Practice INVESTMENT improvements in PEOPLE AND environmental We consider it our responsibility to engage with our value chain partners including CULTURE performance while suppliers on good ESG practice. prioritising vendors and EFFECTIVE business partners who GOVERNANCE exemplify good ESG AIA encourages suppliers As well as reducing paper practices. to minimise their energy usage through digitalisation, OUR TCFD REPORT consumption and carbon we have committed to choosing footprint, and we promote sustainably sourced paper FEEDBACK the use of environmentally throughout our operations. GRI AND HKSE friendly technology. AIA also Other aspects of our approach GUIDE CONTENT urges that our event partners to supplier engagement are INDEX consider their environmental discussed under the Effective performance, incorporating Governance section of this environmental considerations Report, which outlines our as part of our supplier approach towards due registration process. diligence.
Details of AIA’s Supplier Code of Conduct are linked here.
PAGE 37 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 GREEN OPERATIONS
Ensure that all new Green Buildings buildings adhere to industry-recognised The built environment has a direct impact on people’s health and well-being. As a green building standards major property investor in Asia, the overall sustainability and environmental impact of and environmental a building is always a key consideration in our real estate acquisition. management best practices. AIA’s commitment to buildings, while also continuing 2020 ESG incorporating green standards to retrofit and upgrade older AT-A-GLANCE as an integral part of the design buildings in our portfolio to concept and construction higher green standards. Our CHAIRMAN’S phase, are outlined as portfolio of green buildings STATEMENT requirements within the Group’s also plays an important role ESG Investment Standard. in reducing our environmental STATEMENT FROM GROUP CHIEF impact and providing energy- EXECUTIVE AND Through our investments, we efficient, low carbon spaces to PRESIDENT are able to commit resources employees and tenants. to acquire or develop green ABOUT THIS REPORT
HEALTH AND WELLNESS
Developing sustainable buildings by achieving GREEN WELL Building Certification OPERATIONS Digital The quality and design of In 2020, AIA Thailand went further AIA East Gateway incorporates Transformation indoor environments can affect and achieved the WELL Building many distinctive features Encouraging Good our well-being, so developing Standard Gold-level Pre-certification including an outdoor swimming ESG Practice healthy, sustainable buildings for AIA East Gateway, a mixed office pool, multi-functional aligns with our Purpose to help and retail development in south-east gymnasium and sports complex, Green Buildings people live Healthier, Longer, Bangkok. By adopting the WELL a jogging track, landscaped Better Lives. AIA’s commitment Building Standard, AIA goes beyond gardens with water features and Reducing our to green buildings is evidenced environmental performance of the ventilation systems with high- Carbon Footprint by our Leadership in Energy and building and embraces human- efficiency filters. Environmental Design (LEED) centred design, benefiting the SUSTAINABLE INVESTMENT certified building portfolio. physical and mental well-being of building users. PEOPLE AND CULTURE
EFFECTIVE GOVERNANCE
OUR TCFD REPORT
FEEDBACK
GRI AND HKSE GUIDE CONTENT INDEX
PAGE 38 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 GREEN OPERATIONS
Our Portfolio of Green Buildings
Year of Award Name Building Location Award
WELL Building Standard Gold-Level Pre-certification AIA East Gateway Bangkok, 2020 Thailand 2020 ESG AT-A-GLANCE Dual GOLD LEED certifications (New Construction + Existing AIA Capital Bangkok, 2018 Buildings: Operations and Maintenance) Centre Thailand CHAIRMAN’S STATEMENT LEED Platinum Rating in the category of Existing Buildings: Two AIA Financial Nanhai, 2018 Center China Operations and Maintenance STATEMENT FROM GROUP CHIEF LEED Platinum Rating in the category of Existing Buildings: One AIA Financial Nanhai, 2017 EXECUTIVE AND PRESIDENT Operations and Maintenance Center China
Philam Life Cebu, 2017 ABOUT THIS Pre-certification of LEED Silver REPORT Center Cebu Philippines
Two AIA Financial Nanhai, 2015 HEALTH AND Certificate of Green Building Design Label WELLNESS Center China
AIA Sathorn Bangkok, 2015 GREEN The LEED Gold Certification OPERATIONS Tower Thailand OPERATIONS
AIA Sathorn Bangkok, 2015 Digital Best Commercial Development (Thailand), Best Green Transformation Development, Best Office Development and Highly Tower Thailand Commended Architectural Awards in Thailand Encouraging Good ESG Practice AIA Capital Bangkok, 2014 Best Commercial Development in Thailand 2014 Award Green Buildings Centre Thailand Reducing our Best Commercial Development in South East Asia in 2014 AIA Capital Bangkok, 2014 Carbon Footprint Centre Thailand SUSTAINABLE LEED Silver Certification for Existing Buildings: Operations AIA Central Hong Kong, 2012 INVESTMENT and Maintenance China PEOPLE AND Excellent Rating of the Hong Kong Building Environmental AIA Central Hong Kong, 2005 CULTURE Assessment Method HK-BEAM for New Office Designs China EFFECTIVE GOVERNANCE
OUR TCFD REPORT
FEEDBACK
GRI AND HKSE GUIDE CONTENT INDEX
PAGE 39 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 GREEN OPERATIONS
Reduce our carbon Reducing our Carbon Footprint footprint, while also measuring and AIA will take initiatives to reduce our operational carbon footprint, while also managing the amount reducing waste and raising awareness on the impacts of pollution. of waste produced from our operations.
2020 ESG AT-A-GLANCE In 2020, the Group produced its internal Environmental Pollution 42,550 tonnes of CO2e, or Procedures in 2020 and will CHAIRMAN’S 1.8 tonnes per employee. monitor and review them Addressing pollution is a STATEMENT The decrease in our overall annually or as required challenge that goes beyond the footprint this year was due to ensure relevance and influence of a single business, STATEMENT FROM GROUP CHIEF to a significant reduction in effectiveness. and requires the concerted EXECUTIVE AND business travel and remote- effort and action of both the PRESIDENT work measures put in place We are committed to reducing private and public sectors. across our Group in response to the amount of single-use plastic AIA’s memberships in ESG ABOUT THIS COVID-19. we use in our daily operations, organisations provide us with REPORT promotional materials and one such forum to discuss HEALTH AND Total energy consumption by third parties representing environmental issues with peers WELLNESS across the Group was AIA. This has already been and other leading businesses. 71,651,432 kWh, amounting to implemented for staff dining GREEN 3,062 kWh per person. areas and workspaces at Group Burning coal and wood in the OPERATIONS Office, for AIA Group events and home for cooking and heating The largest contributor to at the AIA Leadership Centre is still commonplace in many Digital Transformation our operational footprint is (ALC). parts of Asia and this is a the electricity we use in our well-known cause of indoor air Encouraging Good buildings, which contributes to We also encourage the pollution. Research supported ESG Practice our Scope 2 emission footprint recycling and reduction of by AIA this year showed that Green Buildings of 38,029 tonnes. Other sources waste in other significant areas these residential sources also of emissions include those from of our operations, practicing contribute significantly to Reducing our our corporate vehicle fleet and waste separation during outdoor air pollution. Advances Carbon Footprint business travel. corporate events and ensuring in technology have reduced SUSTAINABLE that unwanted electronic emissions from traffic and INVESTMENT AIA continues to monitor our waste such as computers and electricity generation, meaning environmental footprint, and telephones are donated or that emissions from residential PEOPLE AND implement energy efficiency disposed of properly. cooking and heating now CULTURE measures, where applicable account for a greater proportion throughout our business, Other recommendations of outdoor air pollution. It is EFFECTIVE including solutions such as LED include prioritising sustainable crucial that efforts to reduce GOVERNANCE lighting and video conferencing seafood at all catered corporate fine particulate matter (PM2.5) technology. events, and where possible, find ways to address these OUR TCFD REPORT sourcing from sustainable residential pollution sources. Please also refer to Our TCFD palm oil producers. As part FEEDBACK Report for details on our historic of our ESG Strategy, we also AIA’s influence lies in raising GRI AND HKSE carbon footprint, and our intend to establish procedures awareness on the health GUIDE CONTENT approach to addressing climate to measure and disclose the impacts of pollution, and in INDEX change. amount of waste our operations exploring ways in which we produce. can assist our customers in reducing their exposure Waste Management to specific pollutants. Our For further details on how solutions enable us to play a In 2017, AIA established we address our operational more active role in addressing an Environmental Policy to footprint, please refer to this risk factor and in enabling our Environmental Policy specifically champion group- linked here. our customers to live Healthier, wide efforts to manage our Longer, Better Lives. operational footprint. Building on this policy, AIA launched
PAGE 40 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 SUSTAINABLE INVESTMENT
2020 ESG AT-A-GLANCE
CHAIRMAN’S STATEMENT
STATEMENT FROM GROUP CHIEF EXECUTIVE AND PRESIDENT
ABOUT THIS Sustainable REPORT HEALTH AND WELLNESS
GREEN Investment OPERATIONS SUSTAINABLE Through our investments, AIA Our Strategic Approach INVESTMENT seeks sustainable outcomes ESG Engagement and secures investment income in order to deliver Deepen ESG engagement with investee companies in directly ESG Training and on the long-term savings managed portfolios. Produce insights and case studies to enhance Development and protection needs of our understanding and the adoption of best practices. Broadening customers. This enables us Portfolio to achieve our Purpose and Inclusions fulfil our commitments to Continue to build on the consideration of ESG issues in the Portfolio customers. investment process by augmenting knowledge and capacity among Exclusions our investment analysts through dedicated training initiatives. We also understand the Carbon Footprinting our impact that our investments Portfolio can have on people’s lives and Broaden portfolio inclusions by specific considerations of believe it is essential to take green bonds, sustainability bonds, renewable and alternative PEOPLE AND ESG factors into consideration energy, and infrastructure. CULTURE when making our investment decisions so that we help to EFFECTIVE GOVERNANCE drive sustainable behaviours, including the creation of long- Enhance portfolio exclusions in consideration of our objective to OUR TCFD REPORT term value. secure long-term investment outcomes. FEEDBACK
Continue to measure the carbon footprint of our investment GRI AND HKSE GUIDE CONTENT portfolio, with annual public disclosure and develop emission INDEX reduction targets for our portfolio.
PAGE 41 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 SUSTAINABLE INVESTMENT
PAGE 42 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 SUSTAINABLE INVESTMENT
Deepen ESG engagement ESG Engagements with investee companies in directly managed AIA continues to engage with companies on any ESG-related concerns before or after portfolios. Produce an investment decision, regardless of asset class. AIA believes that active engagement insights and case with investee companies, particularly those in emerging market economies, is an studies to enhance effective mechanism for improving ESG awareness and practices, driving sustainable understanding and behaviour and in securing sustainable, long-term outcomes. the adoption of best 2020 ESG practices. AT-A-GLANCE
CHAIRMAN’S In each market, our Proxy Voting STATEMENT experienced fixed income Our Approach and equity research analysts Voting at company meetings STATEMENT FROM GROUP CHIEF are responsible for the is an important part of the to the Palm Oil EXECUTIVE AND consideration of ESG matters in dialogue between a company PRESIDENT investment decisions according and its shareholders. As an Sector to our investment approach. asset owner it is a fundamental ABOUT THIS Unsustainable palm oil REPORT aspect of our fiduciary duty production has significant Investee engagements at AIA to our customers and our negative social and HEALTH AND are conducted on specific commitment to sustainability. environmental impacts, WELLNESS themes or sectors and therefore including deforestation, may touch all of our investee Our Proxy Voting Standard pollution and biodiversity GREEN companies, or only those within (Voting Standard) is based on loss. AIA is a member of the OPERATIONS the sector engaged, for example, principles of good corporate Principles for Responsible our engagement across the governance, which serve to Investment (PRI) Investor SUSTAINABLE palm oil sector. AIA’s ESG team protect the long-term interests Working Group on Sustainable INVESTMENT Palm Oil and is committed and Group Investment function of shareholders. Senior to engaging with companies ESG Engagement will coordinate on areas for investment management at across the palm oil value engagement, the preparation of our business units will decide chain to encourage more ESG Training and Development any materials, assessment and/ on whether the voting event sustainable practices. We or scoring methodology, and or transaction is significant also assessed our exposure to Broadening briefing of our research analysts enough for review by AIA. If a palm oil producing companies Portfolio who engage regularly with our review is justified, the relevant in our investment portfolio, Inclusions investee companies. research analyst and portfolio across both fixed income and equity asset classes, engaging Portfolio managers will provide an Exclusions AIA’s ESG team continues analysis of the voting decision with these businesses on to work closely with the and resolution. The relevant improving their sustainability Carbon practices both in their Footprinting our Group Investment function, portfolio managers will then operations and supply chains. Portfolio sharing and seeking to determine whether AIA will AIA also developed additional apply industry knowledge, participate in voting. internal guidance and scoring PEOPLE AND CULTURE trends, and international best methodology for our research practices, as well as devising Our Voting Standard also analysts in engaging with, and and implementing specific outlines a list of mandatory ESG assessing the sustainability of, EFFECTIVE GOVERNANCE investment engagements, issues that must be considered a palm oil plantation or mill, aligned with international in our voting decisions. across asset class. OUR TCFD REPORT market-leading approaches, and outcomes for certain FEEDBACK topical areas. The ESG team and Group Investment function will GRI AND HKSE seek to enhance our investee GUIDE CONTENT engagement approach and INDEX methodology, for example, through using internal scores so that deeper and broader insights can be derived, across sectors, geographical locations and/or asset classes.
PAGE 43 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 SUSTAINABLE INVESTMENT
2020 ESG AT-A-GLANCE
CHAIRMAN’S Our Approach to Driving Long-Term Value STATEMENT
STATEMENT FROM GROUP CHIEF As an insurer, we are committed AIA believes that a sustainable issues, considering a range EXECUTIVE AND to the needs of our customers business model drives shareholder of ESG factors, including but PRESIDENT over many years, and this value, is a key determinant of not limited to water shortage, requires investing in businesses management ability, and determines energy supply, climate change, ABOUT THIS that practice good governance whether an issuer can meet its environmental regulations, REPORT in addition to understanding financial obligations longer term. labour supply and relations, the impacts of social and resource scarcity/bottleneck, HEALTH AND environmental factors on their AIA’s investment decisions with management capability WELLNESS operations. We believe that respect to ESG are based upon: and integrity, and financial sound governance underpins management. GREEN good corporate behaviour, which • an assessment of ESG factors OPERATIONS contributes to good results for in potential and actual investee Research analysts are required stakeholders and our abilities to companies; to incorporate an assessment of SUSTAINABLE INVESTMENT achieve sustainable long-term ESG risks and issues into their INVESTMENT outcomes. the belief that active engagement research reports. AIA research • ESG Engagement with investee companies is a analysts refer to a company’s Business owners and asset more effective mechanism to ESG report to better understand ESG Training and managers are increasingly promote, develop and enhance how these issues and risks are Development aware of the potential risk and ESG-related business practices; being managed. Analysts also value impact of ESG factors, and consider ESG research and Broadening Portfolio and their effect on profitability data produced by third-party Inclusions and investment returns. AIA • certain specified exclusions research providers. understands that issuers looking where those sectors or categories Portfolio to create long-term stakeholder have been determined to not be Given the increasing importance Exclusions value must ensure a sound consistent with our Purpose. of ESG scores, and the insights approach to the planning and that this can provide, AIA will Carbon Footprinting our management of ESG aspects. AIA assesses ESG issues as they also be considering ways to Portfolio Ignoring ESG risks is likely to relate to an investee company’s incorporate ESG scores into have financial consequences operations, considering the impact the assessment and research PEOPLE AND alongside other key that ESG risks may pose to a process. CULTURE considerations such as ignoring company’s profits, assets, business credit, currency and commercial and people. AIA employs a consistent EFFECTIVE risks, or other reputational issues. approach to addressing these ESG GOVERNANCE
OUR TCFD REPORT
FEEDBACK
GRI AND HKSE GUIDE CONTENT INDEX
PAGE 44 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 SUSTAINABLE INVESTMENT
ESG IN INVESTMENT ASSESSMENT PROCESS 2020 ESG AT-A-GLANCE
CHAIRMAN’S STATEMENT ESG ESG ESG STATEMENT FROM DATA RESEARCH REPORT GROUP CHIEF EXECUTIVE AND PRESIDENT
ABOUT THIS REPORT
HEALTH AND WELLNESS RESEARCH GREEN ANALYST OPERATIONS
SUSTAINABLE INVESTMENT ESG ENGAGEMENT STANDARD WITH ISSUER ESG Engagement ESG Training and Development
Broadening Portfolio PORTFOLIO Inclusions MANAGER Portfolio Exclusions
Carbon Footprinting our Portfolio
PEOPLE AND CONTRIBUTION TO INVESTMENT DECISION CULTURE EFFECTIVE GOVERNANCE
OUR TCFD REPORT
FEEDBACK MONITORING OF ESG PERFORMANCE GRI AND HKSE GUIDE CONTENT INDEX
For further details on how we address ESG issues within our investment portfolio, please refer to our Responsible Investment Policy, linked here.
PAGE 45 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 SUSTAINABLE INVESTMENT
Continue to build on the ESG Training and Development consideration of ESG issues in the investment Developing and enhancing capacity on understanding and assessing ESG issues is a process by augmenting priority for AIA, and essential in making informed and relevant investment decisions, knowledge and capacity as we believe that a sustainable business model drives shareholder value. Given the among our investment dynamic and constantly evolving nature of the ESG space, and material ESG risks that analysts through companies face, our analysts are provided with access to ESG resources, materials and training. dedicated training 2020 ESG initiatives. AT-A-GLANCE
CHAIRMAN’S Our ESG Standard was This allows us to benefit Our analysts complement their STATEMENT developed with input from our from the resources of the PRI research activities by accessing Group Investment leadership as we continue to integrate and utilising ESG resources, STATEMENT FROM GROUP CHIEF as well as the Chief Investment ESG considerations into our including webinars, industry EXECUTIVE AND Officers of our business units. process and demonstrate our discussion forums, external PRESIDENT This leadership group has commitment to sustainable research reports and thought ownership of our approach, investment. AIA will submit its leadership articles. The Group ABOUT THIS including maintaining first report to the PRI in 2021. Investment function works REPORT appropriate documentation, closely with the ESG team HEALTH AND as well as training and AIA has also been a supporter to raise awareness and keep WELLNESS development of the portfolio of the TCFD since 2018. the research and portfolio managers and research AIA will review regional management teams informed GREEN analysts at business units. and international initiatives about industry developments, OPERATIONS to address climate change and the current focus areas In 2019, AIA was the first and continue to evolve our of stakeholders such as SUSTAINABLE Hong Kong-headquartered approach based on our external regulators, asset owners and INVESTMENT business to become a signatory commitments. trade associations. ESG Engagement to the PRI as an asset owner. ESG Training and Development
Broadening Portfolio Inclusions
Portfolio Exclusions
Carbon Footprinting our Portfolio
PEOPLE AND CULTURE
EFFECTIVE GOVERNANCE
OUR TCFD REPORT
FEEDBACK
GRI AND HKSE GUIDE CONTENT INDEX
PAGE 46 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 SUSTAINABLE INVESTMENT
Investee Company Engagement on COVID-19
The outbreak of COVID-19 has of personal protective equipment with launching community 2020 ESG emphasised the greater need for to address community needs. In engagement initiatives. AT-A-GLANCE the private sector to support and Malaysia and the Philippines, the protect the health of their staff, private sector led by providing Rapid scaling of digital • CHAIRMAN’S communities, service providers COVID-19 testing and quarantine solutions across all markets STATEMENT and clients. facilities and alleviating helped sustain business overburdened public healthcare continuity, build community STATEMENT FROM To understand how business systems. Indonesian firms also resilience and fast-tracked GROUP CHIEF leaders were adapting to responded quickly to the surge in the pace of digital integration. EXECUTIVE AND the new environment, AIA demand for essential health and There was widespread PRESIDENT conducted a survey with its hygiene products. adoption of cloud services portfolio companies in 2020. and private networks ABOUT THIS We wanted to assess and • In Mainland China, a coordinated along with increased video REPORT identify leaders in relation to private sector response conferencing for group and business continuity, and support contributed significantly to client meetings among our HEALTH AND WELLNESS for local communities during the country’s continuity and portfolio investees, many of the pandemic. Throughout recovery after the immediate whom implemented remote impacts of COVID-19. Chinese working procedures. GREEN the engagement, we found OPERATIONS consistent humanitarian-centric firms mobilised resources, responses in local community scaled critical technologies that The survey reiterated the facilitated better research and essential role played by SUSTAINABLE engagement. INVESTMENT treatment, and rapidly redirected businesses across Asia, in expertise and supplies to stem redirecting expertise and Key findings include: ESG Engagement the spread of COVID-19. resources and contributing to • Across South East Asia, community resilience during ESG Training and the private sector played a • Hong Kong and Singapore these times. Development critical role in organising and saw private sector donations distributing resources and of critical medical supplies to Broadening Portfolio accelerating the production healthcare professionals along Inclusions
Portfolio Exclusions
Carbon Footprinting our Portfolio
PEOPLE AND CULTURE
EFFECTIVE GOVERNANCE
OUR TCFD REPORT
FEEDBACK
GRI AND HKSE GUIDE CONTENT INDEX
PAGE 47 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 SUSTAINABLE INVESTMENT
Broaden portfolio Broadening Portfolio Inclusions inclusions by specific considerations of green AIA is aware of the continual need to contribute to the sustainable development of our bonds, sustainability communities. Through our infrastructure and other investments, AIA will continue to bonds, renewable and report on investments in sustainability and support for energy transition, through our alternative energy, and investments in clean energy, transportation, healthcare and green bonds. infrastructure. 2020 ESG AT-A-GLANCE
INVESTMENTS IN INFRASTRUCTURE AS AT 31 DECEMBER 2020: US$ 32.1 BILLION CHAIRMAN’S STATEMENT Examples of these investments include: STATEMENT FROM GROUP CHIEF EXECUTIVE AND US$776 US$6.4 US$3.5 PRESIDENT MILLION BILLION BILLION ABOUT THIS REPORT in water utilities in transportation in road and rail infrastructure infrastructure HEALTH AND AIA also had: WELLNESS
GREEN US$407 US$4.3 US$1.1 OPERATIONS SUSTAINABLE MILLION BILLION BILLION INVESTMENT in renewable energy in the healthcare sector in green bonds ESG Engagement
ESG Training and Development
Broadening Portfolio US$1.8 BILLION Inclusions in ESG (green, social, and sustainability) bonds Portfolio Exclusions
According to Asian Development to mobilise savings, directing investment supports the growth Carbon Footprinting our Bank estimates, developing this to infrastructure and and development of capital Portfolio countries in Asia will need other productive investments. markets and provides valuable to invest US$1.7 trillion in This contributes to the capital for infrastructure, PEOPLE AND infrastructure every year for sustainable development of our economic growth, and thereby CULTURE the next decade to maintain communities in Asia. the sustainable development of their growth momentum, tackle the region and our communities. EFFECTIVE GOVERNANCE poverty, and mitigate and adapt As an asset owner, with to the impacts of climate change. US$247.4 billion invested AIA has been active in providing OUR TCFD REPORT assets, we already have funding for many infrastructure Much of the investment needed significant investments in projects in the region. Out of our FEEDBACK to close the infrastructure and infrastructure, healthcare total fixed income and equity climate funding gap will be from and other industries. Our investments, approximately GRI AND HKSE the private sector. AIA continues commitment to sustainable US$32 billion is invested in GUIDE CONTENT infrastructure-related sectors, INDEX representing an increase of 6.6 per cent compared to 2019. This The following section outlines our support of sustainable cities demonstrates our unwavering and communities, including alignment with SDG Target 11.3. to enhance inclusive and sustainable urbanisation and capacity commitment to the long-term for participatory, integrated and sustainable human settlement sustainable development of our planning and management. markets.
PAGE 48 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 SUSTAINABLE INVESTMENT
Enhance portfolio Portfolio Exclusions exclusions in consideration of our In consideration of both our Purpose and our commitment to secure sustainable long- objective to secure term investment outcomes, our ESG Strategy outlines our approach and the initiatives long-term investment we have taken to exclude certain sectors from our investment universe. These are outcomes. sectors which are deemed inconsistent with our Purpose and objectives.
2020 ESG AT-A-GLANCE We believe longer-term casualties, with some of our Our Investment stakeholder value, including markets signing treaties to ban Managers CHAIRMAN’S investment return, will be their manufacture. AIA does not STATEMENT impacted by the ultimate invest in such businesses, and As an asset owner, we work with decline in sustainability our investment exclusion list many investment managers STATEMENT FROM GROUP CHIEF of certain sectors. It is reflects this commitment. who manage and invest money EXECUTIVE AND therefore from a long-term representing general account PRESIDENT risk management perspective While we believe that active assets on behalf of AIA. We that AIA has decided to engagement is a more effective consider the ESG practices of ABOUT THIS exclude some sectors from mechanism for improving ESG investment managers during REPORT our investment programme. awareness and practices in the selection process, reviewing HEALTH AND Any sectors excluded from parallel to driving sustainable their approach to both ESG WELLNESS the investment programme behaviour as opposed to the engagement with investee are reflected in the automated outright exclusion, AIA will companies and assessing ESG GREEN pre-trade controls implemented continue to monitor regulatory factors during investment OPERATIONS in our investment trading and thematic developments, decisions. After awarding a platforms, providing robust pre- and regularly review its mandate, AIA continues to SUSTAINABLE trade restriction governance. exclusion list. monitor the ESG practices INVESTMENT of these external parties ESG Engagement In 2018, we took the significant All of our directly managed throughout the relationship. initiative of excluding tobacco full discretion investment ESG Training and manufacturing from our operations, including any assets Development investment portfolio, divesting managed by our discretionary Broadening US$500 million in corporate external managers, are required Portfolio equities and bonds. Our view to abide by AIA’s exclusion list. Inclusions is that tobacco products are This year, AIA took significant Portfolio inconsistent with our Purpose, steps to divest our exposure Exclusions including our wellness to coal-mining and coal-fired initiatives and programmes power generation sectors. Carbon Footprinting our aimed at encouraging healthier Portfolio lifestyle choices. Further details of AIA’s approach can be found in PEOPLE AND We also exclude cluster Significant Steps to Address CULTURE munitions from our investments. our Exposure to the Coal Cluster munitions are a Sector within the Sustainable EFFECTIVE GOVERNANCE controversial weapon that Investment section on page 51. cause significant civilian OUR TCFD REPORT
FEEDBACK
GRI AND HKSE GUIDE CONTENT INDEX
PAGE 49 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 SUSTAINABLE INVESTMENT
Continue to carbon Carbon Footprinting Our Portfolio footprint our investment portfolio, with annual As an asset owner, our environmental influence extends to our investments and the public disclosure and diverse sectors in which we invest, primarily across Asia. AIA is committed to being develop emission transparent with our stakeholders and focusing on areas of impact. This includes reduction targets for reporting on our portfolio’s carbon footprint. our portfolio. 2020 ESG AT-A-GLANCE Measuring Our Footprint proud to show a 24 per cent methodology for calculating the reduction in one of our primary carbon footprint was developed CHAIRMAN’S AIA is committed to being measurement bases over the in conjunction with Deloitte, but STATEMENT transparent with our stakeholders past three years. applies a standard metric for the and focusing on areas of impact market established by MSCI Inc. STATEMENT FROM GROUP CHIEF in our ESG reporting. As such, we EXECUTIVE AND engaged a third-party consultant, Methodology and Deloitte was engaged to PRESIDENT Deloitte Advisory (Hong Kong) Application calculate the weighted average Limited (Deloitte), to assist us in of the issuers’ carbon intensity ABOUT THIS the significant initiative of carbon AIA measures carbon in the equity portfolio, given REPORT footprinting our directly managed footprinting in its directly the subjective nature of the HEALTH AND equity portfolio investments as managed equity portfolio calculation methodology and WELLNESS at 31 December 2019 and 30 investments with reference to their experience in undertaking November 2020. the weighted average carbon similar exercises. Deloitte had GREEN intensity (WACI) of the issuers previously been engaged to OPERATIONS AIA remains staunchly in the equity portfolio. This calculate the weighted average committed to reducing its is calculated based on the carbon intensity of the issuers SUSTAINABLE carbon footprint. We continue to portfolio companies’ emissions in our equity portfolio for 2018. INVESTMENT look for measures that will aid in (or estimates of these emissions ESG Engagement demonstrating the outcomes of where this information is not In the current exercise, Deloitte our efforts in this regard over a publicly available) relative has taken advantage of ESG Training and sustained period. We continue to their sales, with the sales enhanced market disclosure Development to evolve our measurement information being based on and data availability across our Broadening methodology as the market and publicly available sources, investment portfolio to restate Portfolio our investees make fuller and weighted by the percentage the WACI of our equity portfolio Inclusions more consistent disclosures that each portfolio company’s for 2018, and has corrected Portfolio on carbon emissions. As market capitalisation represents certain data errors relating to Exclusions demonstrated by the outcomes in the market capitalisation their 2018 calculation. below, we are pleased and of the whole portfolio. This Carbon Footprinting our Portfolio
PEOPLE AND Results CULTURE Weighted Average of the Issuers’ Carbon Intensity (tonnes of CO2e/ US$ million) EFFECTIVE 2018 (As restated - Note) 2019 As at 30 November 2020 GOVERNANCE 413.82 368.06 313.57 OUR TCFD REPORT Note: A Weighted Average of the Issuers’ Carbon Intensity (tonnes of CO2e/ US$ million) of 301 as at 31 December 2018 was previously reported. FEEDBACK The results confirm AIA’s delivery energy sectors. AIA will continue to Please refer to page 51 of this of the commitment it made to monitor its portfolio carbon footprint section for further details on GRI AND HKSE GUIDE CONTENT address the carbon intensity going forward, expanding to include our coal divestment, the carbon INDEX within its equity portfolio actively other asset classes. AIA will use this footprint of our operations and and aggressively. data to assist our research analysts how we manage climate-related with making sectoral comparisons issues. There has been a decrease of 24 and raising awareness of risks such per cent since 2018 due to our as those posed by potential carbon ambitious efforts to divest from regulations in our markets. the coal mining and coal-fired
PAGE 50 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 SUSTAINABLE INVESTMENT
Significant Steps to sectors, including becoming achieving long-term sustainable Address our Exposure to one of the first Asian asset outcomes, AIA will divest all of owners to carbon footprint their its equities and fixed income the Coal Sector investment portfolio in 2019. investments in coal mining and coal-fired power generation. Our Since confirming our support After further research, and approach is encapsulated in the for the Paris Agreement in in line with AIA’s Purpose of infographic below, with further 2018, AIA has taken a phased helping people live Healthier, detail included in our publicly 2020 ESG approach to addressing our Longer, Better Lives and available Coal Investment AT-A-GLANCE investments in carbon-intensive overarching objective of Statement linked here. CHAIRMAN’S STATEMENT
STATEMENT FROM COAL DIVESTMENT GROUP CHIEF At AIA, our strategic focus on sustainability and our ability to manage associated risks EXECUTIVE AND creates tangible value for our business and for the communities we serve over the long term. PRESIDENT
ABOUT THIS 2016 2017 2018 2019 2020 REPORT
Became a Confirmed our Carbon footprinted our Joined the Climate Action Divested directly managed Finalised and HEALTH AND signatory to support for the Paris portfolio for the first time, 100+ supporting equity exposure in coal mining implementing a holistic WELLNESS the UN Global Agreement and reporting on the emissions collective engagement and coal-fired power companies approach to restricting Compact. launched our first footprint from equity with the world’s largest generating more than 30% of investments in coal Climate Statement. investments. carbon emitters. their revenue from either or mining and coal-fired GREEN both of these activities. power generation. OPERATIONS Began reporting on the One of the first Hong Kong Joined the Initiated portfolio Achieved an A- score emissions and energy use companies to endorse the Task Principles for analysis and from CDP with arising from our direct Force on Climate-related Responsible engagement on acknowledgement as SUSTAINABLE operations. Financial Disclosures. Investment. climate change. an industry leader. INVESTMENT
ESG Engagement OUR CRITERIA FOR DIVESTMENT AS OF 2020, AIA HAD: ESG Training and The Group will address the remaining coal mining and coal-fired power Development exposure within our directly managed equity and fixed income portfolios. US$ 407.2 MILLION invested in renewable energy Broadening Portfolio Inclusions AIA will divest and / or run off AIA will not permit our entire directly managed any new investments equity and fixed income within businesses US$ 1.8 BILLION Portfolio invested in green, social and Exclusions exposure to coal mining and involved directly in sustainability bonds coal-fired power businesses either mining coal or by end of 2021 for equity and generating electricity Carbon 2028 for fixed income. from coal. Footprinting our A PORTFOLIO OF Portfolio CERTIFIED PEOPLE AND DEGREES 2010 2019 6GREEN BUILDINGS CULTURE WAS THE HOTTEST DECADE EFFECTIVE CELSIUS GOVERNANCE 2 RECORDED GLOBALLY WHICH ARE The Paris Agreement limits warming Significant climate-related impacts OWNED BY THE GROUP to 2 degrees Celsius, necessitating recorded across our markets involved OUR TCFD REPORT the need for drastic cuts in emissions. inclement weather, flooding and drought.
FEEDBACK MEASUREMENT ONGOING SURVEILLANCE DISCLOSURE AND ANALYSIS GRI AND HKSE AIA will continue to measure the carbon AIA commits to disclosing our GUIDE CONTENT footprint of our portfolio, through progress in divesting and running INDEX established methodologies, aligned with down our exposure to coal mining and market standards. coal-fired power businesses on an AIA will also commit to measuring and The asset class research teams at annual basis in our ESG Report. disclosing our continued contributions to AIA will be responsible for ongoing the development and sustainable growth surveillance and analysis in relation of our markets. to current and new issuers.
PAGE 51 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 PEOPLE AND CULTURE
2020 ESG AT-A-GLANCE
CHAIRMAN’S STATEMENT
STATEMENT FROM GROUP CHIEF EXECUTIVE AND PRESIDENT
ABOUT THIS People and REPORT HEALTH AND WELLNESS
GREEN Culture OPERATIONS SUSTAINABLE At AIA, our people span Our Strategic Approach INVESTMENT multiple cultures and communities. PEOPLE AND CULTURE Foster a learning culture that supports the development of We focus on developing, our people and provides a platform for meaningful, purposeful Developing engaging, and helping our Our People careers with AIA. people to grow professionally Diversity and and personally during their Inclusion time at AIA. Our ESG Strategy outlines our approach to Create a supportive work environment that promotes A Risk-aware Culture empowering our people to workplace diversity and advances our culture of innovation and inclusion. succeed, and ensuring a fair Recognising and and supportive culture that Rewarding Our enables them to serve and People support our customers and Embed a culture of ethical decision making and strong risk SUPPLEMENT: communities. management, in adherence to our Operating Philosophy and Supporting Our Code of Conduct. Employees During COVID-19
EFFECTIVE Ensure fair, accountable and equitable processes for employment, GOVERNANCE progression, and rewards for our people to deliver sustainable business results. OUR TCFD REPORT
FEEDBACK
GRI AND HKSE GUIDE CONTENT INDEX
PAGE 52 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 PEOPLE AND CULTURE
Our Workforce At-a-glance As at 31 December 2020, AIA had a total of 23,397 EMPLOYEES which included full-time and part-time, as well as contract employees9.
PAGE 53 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 PEOPLE AND CULTURE
Our Workforce At-a-glance
As at 31 December 2020, AIA had a total of 23,397 employees, which included full-time and part-time, as well as contract employees9.
OUR EMPLOYEES ACROSS OVERVIEW OF OUR EMPLOYEE 2020 ESG OUR MARKETS10 DEMOGRAPHICS AT-A-GLANCE
CHAIRMAN’S BY GENDER BY AGE GROUP STATEMENT 35% OTHER MARKETS 6% SINGAPORE 9% OVER 50 STATEMENT FROM 11% HONG KONG 41% MALE 20% BELOW 30 GROUP CHIEF EXECUTIVE AND PRESIDENT 12% THAILAND ABOUT THIS REPORT
HEALTH AND 17% MALAYSIA WELLNESS 19% MAINLAND CHINA 59% FEMALE 71% 30-50 GREEN OPERATIONS AIA’s workforce is also supported by tens of thousands of agents across Asia. SUSTAINABLE INVESTMENT
PEOPLE AND Recognition as an Employer CULTURE Developing Our People In 2020, our continued focus • AIA Malaysia was recognised in • AIA New Zealand received on our people has received the “Most Attractive Graduate the YWCA GenderTick™ and Diversity and Inclusion several local, regional and global Employers to Work For” awards multiple awards in 2020: accolades and awards. by Graduates Choice Award. A Risk-aware ■ “Top Insurance Culture • For the second year in a row, • AIA Singapore was the insurance Workplaces 2020” from the Group was recognised and risk management sector Insurance Business Recognising and in the Forbes “World’s Best winner in “Singapore’s 100 Rewarding Our Magazine; Employers” list. Leading Graduate Employers” by People GTI Media. ■ “Employer of Choice” SUPPLEMENT: • AIA China was awarded award by HRD Magazine; Supporting Our the “Top Employer in China • AIA Indonesia received “Best and Employees 2020” by Top Employers Companies to Work for in Asia” During COVID-19 Institute. and “Most Caring Companies” ■ “Insurance Employer of award by HR Asia. the Year” from Insurance EFFECTIVE GOVERNANCE • AIA Vietnam received the Business Magazine’s “Great Place To Work @ • AIA Philam Life was recognised Women in Insurance OUR TCFD REPORT Vietnam” award by Great as “Best Companies to Work for awards. Place to Work and “Best in Asia” by HR Asia. AIA Taiwan received “Best Companies to Work for in • FEEDBACK Companies to Work for in Asia” award by HR Asia. Asia” award by HR Asia. GRI AND HKSE GUIDE CONTENT INDEX
9 Includes employees on contracts, but excludes interns, agents of the Group and employees of Tata AIA Life. 10 Percentage of total employees - figures for Hong Kong include Group Office employees, figures for Mainland China and Malaysia include our employees in our shared services centres. PAGE 54 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 PEOPLE AND CULTURE
Foster a learning Developing Our People culture that supports the development of our Developing our people so they can achieve their potential and deliver on our Purpose people and provides a and ambitions is a strategic priority for AIA. Our learning culture actively supports the platform for meaningful, development of key capabilities, to help our people succeed in their current roles while purposeful careers providing a platform for growth and meaningful careers with AIA. with AIA. 2020 ESG AIA’s holistic approach to these needs. With a blended AT-A-GLANCE learning and development learning approach, our people includes a combination development solutions are CHAIRMAN’S of knowledge and skills more targeted and effective STATEMENT accumulated from on-the-job in supporting our strategic experiences, collaborative priorities. In addition, our STATEMENT FROM GROUP CHIEF projects and digital learning, all people are required to regularly EXECUTIVE AND supported by activities such as complete mandatory training on PRESIDENT mentoring and coaching. key areas of our business. Disclosure in this section supports ABOUT THIS SDG Target 4.4, to increase the REPORT levels of relevant skillsets, In 2020, we launched a new The digitalisation of learning including technical and vocational leadership and learning content and delivery HEALTH AND skills, for employment, decent jobs framework to support our new methods will continue to and entrepreneurship. WELLNESS strategy. play an important role in the development of our people. GREEN To ensure our learning In 2020, we rolled out the AIA OPERATIONS interventions continue to Learning Hub on our online develop talent for the future, platform, which provides access SUSTAINABLE we continually research the to thousands of digital learning INVESTMENT skills and knowledge needs of courses and enables our people our industry, review feedback to create, curate and share PEOPLE AND CULTURE from our employees, and content with one another. design programmes to address Developing Our People
Diversity and in the top quartile of Gallup’s global provide to our people create an Inclusion Engaging our financial services and insurance environment in which employees industry benchmark for the fourth perform their best and grow with A Risk-aware People consecutive year. AIA. Culture
Ensuring that we offer a The Asia region provides many Across the Group, our employee Recognising and collaborative and inclusive 11 Rewarding Our career opportunities with increasing turnover was 9.5 per cent in People workplace that prioritises demand and competition for skilled 2020 compared to 13.5 per cent employee engagement is a talent. We actively monitor our in 2019. We believe the pandemic SUPPLEMENT: top priority for AIA. To help us turnover levels against industry has impacted this decrease. Supporting Our monitor levels of engagement Employees benchmarks to help us understand During COVID-19 across our business units and levels of employee engagement, functions, we conduct the Gallup thereby ensuring that the Q12 employee engagement EMPLOYEE TURNOVER EFFECTIVE programmes and opportunities we GOVERNANCE survey every year. It provides BY AGE GROUP meaningful input to allow for the development of strategies BELOW 30 OUR TCFD REPORT to address areas requiring EMPLOYEE TURNOVER FEEDBACK improvement, with the goal of BY GENDER 14.3% building on our strong levels of engagement. FEMALE 30-50 GRI AND HKSE GUIDE CONTENT INDEX In 2020, 97 per cent of our 8.8% 8.6% people responded to the survey and the Group’s employee MALE ABOVE 50 engagement scores increased by 12 percentile points, keeping us 10.4% 4.9%
11 Excludes employees on fixed-term contracts, and involuntary turnover and employees of our joint venture Tata AIA Life. PAGE 55 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 PEOPLE AND CULTURE
2020 ESG AT-A-GLANCE
CHAIRMAN’S STATEMENT
STATEMENT FROM GROUP CHIEF EXECUTIVE AND PRESIDENT
ABOUT THIS REPORT
HEALTH AND WELLNESS
GREEN OPERATIONS
SUSTAINABLE INVESTMENT The AIA Leadership hybrid learning model using Employee Coaching and both live and asynchronous PEOPLE AND Centre Internships CULTURE virtual delivery and delivered We continue to provide best- the Group’s flagship leadership We encourage our employees to Developing in-class talent development programmes through over 100 expand their networks, benefit Our People programmes at the ALC, our fully virtual learning forums. from guidance and foster Diversity and world-class learning facility in communication across different Inclusion Bangkok, Thailand. Now in its departments and seniorities. fifth year of operation, the ALC Succession and Currently coaching is supported A Risk-aware Culture delivers bespoke programmes Organisation Planning in many of our business units to our senior leaders, top and at Group Office. Recognising and agency leaders and key partner AIA is committed to developing Rewarding Our executives with a clear focus on a strong talent pipeline to Across our business units, People AIA’s strategic and governance sustain our business growth. we also offer development SUPPLEMENT: priorities. Our comprehensive annual opportunities for hundreds Supporting Our group-wide Organisation of interns. Our programmes Employees During COVID-19 In 2020, the COVID-19 and People Review process provide interns with first-hand pandemic severely disrupted identifies different talent experience of what a career at EFFECTIVE plans to host face-to-face segments to enable leaders AIA is like and an opportunity GOVERNANCE leadership development to plan for the succession of to learn crucial skills in a fast- programmes at the Bangkok key roles. The success of our moving and customer-focused OUR TCFD REPORT facility. However, this presented approach to talent development environment. They also provide AIA with an opportunity to and our group-wide succession us with a great opportunity to FEEDBACK drive a rapid, system-wide shift planning is evidenced by many identify future talents for our towards the digital delivery examples of internal promotions business. GRI AND HKSE GUIDE CONTENT of leadership programmes. into key leadership roles INDEX In the second quarter of throughout the Group in 2020, 2020, AIA Group Learning including at the most senior successfully pivoted to a levels of the organisation.
PAGE 56 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 PEOPLE AND CULTURE
Agency Learning and Development
Our Premier Agency strategy AIA continues to work with focuses on developing best-in- specialised professional class agents through innovative development associations to approaches to training and enhance our agency leadership development. This differentiates programmes. This year we AIA Singapore 2020 ESG AIA through the quality of advice introduced revised modules from AT-A-GLANCE we offer our customers and our LIMRA to upgrade distribution Recruits 500 ability to tailor solutions to their management capability. CHAIRMAN’S specific needs. Across the Group, we launched Local Graduates STATEMENT Chartered Insurance Agency AIA has embraced e-learning Management (CIAM) certification Against a background of STATEMENT FROM for training and development. for agency leaders and increased redundancies GROUP CHIEF With more than 80 per cent of Chartered Insurance Distribution and a worsening job market EXECUTIVE AND agency training available through Executive (CIDE) certification for in Singapore due to the PRESIDENT e-learning and virtual classroom distribution executives. pandemic, AIA created sessions, agents can log into up to 500 new career ABOUT THIS REPORT the Learning Management To address the need for a opportunities, in-depth System (LMS) via smartphones quality pipeline of young training and financial or tablets at any time to update agents, we revised our support for fresh graduates. HEALTH AND WELLNESS their knowledge. LMS features distribution management are continually updated, and the programme to focus on The AIA Financial Career Scheme 2020 equips GREEN system is accessible by trainers recruitment, productivity and OPERATIONS across markets. It includes retention practices. AIA Group individuals with skills and training courses for both agents Agency Distribution has also knowledge to pursue a new SUSTAINABLE and agency leaders, to help introduced a business-wide career path in the financial INVESTMENT ensure that our best practices approach to performance services industry as an AIA are appropriately shared and Financial Adviser or AIA coaching to develop distribution PEOPLE AND Premier Consultant. From embedded across the Group. executives and sales leaders as CULTURE performance coaches accredited September, successful Learning about AIA Vitality by the International Coaching candidates were enrolled Developing is a key part of the product Federation. Coaching empowers progressively and received Our People training process for agents. We our agents to engage and structured training over empower our agents to engage support their teams to give their an initial 10-month period Diversity and Inclusion with customers about the best at work and encourages a leading to three recognised improvements they are making greater sense of ownership. By certifications. All successful A Risk-aware to their health and well-being on engaging our next generation candidates enrolled in Culture an ongoing basis. in developmental and change the programme were also processes we are developing and assigned a mentor. Recognising and coaching future leaders. Rewarding Our People
SUPPLEMENT: Supporting Our Employees During COVID-19
EFFECTIVE GOVERNANCE
OUR TCFD REPORT
FEEDBACK
GRI AND HKSE GUIDE CONTENT INDEX
PAGE 57 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 PEOPLE AND CULTURE
Create a supportive Diversity and Inclusion work environment that promotes workplace We believe in the power of diverse, talented people to create value and meet customer diversity and advances and shareholder expectations. As a company with operations in 18 markets, we our culture of innovation draw upon diverse perspectives and create an inclusive environment, that promotes and inclusion. innovation, better decision-making, adaptability and problem-solving that enable us to realise our Purpose.
2020 ESG AT-A-GLANCE Maintain an Inclusive Across the Group, networks, Culture such as our employee-led and CHAIRMAN’S executive-sponsored Gender STATEMENT Women represent 59 per cent Equality Network at AIA of employees12 across the Group Australia and AIA New Zealand, STATEMENT FROM GROUP CHIEF as at 31 December 2020. We organise networking events, EXECUTIVE AND Disclosure in this section aligns with strive to provide an inclusive professional development PRESIDENT SDG Target 5.5 on gender equality workplace and are proud to sessions and opportunities to for women, and in ensuring the full be an employer of choice for support and enable gender ABOUT THIS and effective participation and REPORT equal opportunities for leadership women across the region equality. To foster a supportive with 39 per cent of our senior work environment, we created at all levels of decision-making in HEALTH AND political, economic and public life. leaders represented by women. The NetWork at Group Office. WELLNESS This umbrella organisation We recognise the importance enables employee affinity GREEN At AIA, there is zero of understanding different groups to facilitate diversity OPERATIONS tolerance for discrimination generational needs when shaping and inclusion initiatives and or harassment in any form, our policies and practices, and events for the professional SUSTAINABLE across all aspects of diversity, we strive to ensure that we create and personal development of INVESTMENT including race, colour, religion, an inclusive workplace for all age our people. In support of our sex, nationality, age, disability, groups. As at 31 December 2020, locally led networks for women, PEOPLE AND CULTURE military service, marital status 62 per cent of our employees are AIA is a member of the Hong and sexual orientation. Gen Y and Gen Z13. Kong chapter of the Women in Developing Finance Asia Network and the Our People All employees joining AIA are AIA also values diverse 30% Club, which are working to Diversity and required to complete training perspectives for effective develop a diverse pool of talent Inclusion on the Code of Conduct (the governance and decision for all businesses to enhance Code), which includes our making with the Board gender balance at all levels of A Risk-aware Culture approach to inclusion and representing different organisations. non-discrimination, as part of nationalities and ethnicities, Recognising and their orientation. In addition, in addition to diversity in In 2020, AIA joined the newly Rewarding Our we have an anti-harassment education, age, and experience. established Hong Kong chapter People policy and e-learning module of the Bloomberg Women’s SUPPLEMENT: for all employees, outlining Buy-side Network (BWBN) with Supporting Our expected workplace conduct Group Chief Investment Officer Employees Internal and External During COVID-19 and professionalism, including Employee Networks Dr Mark Konyn as our official channels for escalation. We representative. BWBN promotes EFFECTIVE encourage employees to Our local affinity networks meritocracy and inclusion GOVERNANCE resolve issues by talking to and bring people together to in the asset management working with their management facilitate professional and industry, and education on the OUR TCFD REPORT and human resources teams. personal development and diversity of career paths in the In addition, employees are support a diverse and inclusive buy-side through meaningful FEEDBACK encouraged to speak up and workplace. engagement and active ask questions, raise concerns or mentorship. GRI AND HKSE GUIDE CONTENT report instances of misconduct INDEX by contacting local or Group Compliance functions, or the Group’s Ethics Hotline.
12 Refers to employees on permanent and fixed-term contracts, excluding employees of our joint venture, Tata AIA Life. 13 Gen Y is defined as the generation born between 1980 and 1996 and Gen Z is defined as the generation born from 1997 onwards. PAGE 58 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 PEOPLE AND CULTURE
SheWorks in Sri Lanka
Women’s participation in the labour force of Sri Lanka has remained at a low rate of around 35 per cent from 2009 to 2017, 2020 ESG compared to a global average AT-A-GLANCE of 49 per cent, despite the high levels of female educational CHAIRMAN’S STATEMENT attainment in Sri Lanka14. “Diversity and inclusion are the key components that drive AIA is one of 16 companies that “Gender parity is central STATEMENT FROM innovation in our businesses. to having a dynamic GROUP CHIEF joined the Sri Lanka SheWorks EXECUTIVE AND Today more than ever, Partnership, a two-year peer balanced workforce. Female PRESIDENT collaboration and co-creation learning platform for sharing employees and Wealth across different genders and business results and good Planners play an integral ABOUT THIS backgrounds are fuelling the practices on advancing gender part in our business success. REPORT drive to sustain and prosper our equality in the workplace. AIA recognised early on, the industry.” Member companies recognised narrowing trends of female HEALTH AND that advancing gender equality in participation at work in Sri WELLNESS business leads to better access Lanka. We have taken many Liu Chunyen to talent, higher productivity, GREEN sustainable steps to ensure Chief Investment Officer, more customers, and a stronger OPERATIONS AIA Singapore bottom line. SheWorks covers that our female colleagues more than 170,000 Sri Lankan have a work environment SUSTAINABLE employees. that provides flexibility, INVESTMENT at life stages where such The AIA Australia Pride In 2020, AIA Sri Lanka’s Director support is needed most. PEOPLE AND CULTURE Ally Network, an employee and Chief Officer - Legal, It is not just about fixing Governance and Operations and community that supports and the basics and having the SheWorks member Chathuri Developing best support during key Our People celebrates our LGBTIQA+ Munaweera, received an family, has introduced Gender stages of motherhood, but award for being one of the 16 also ensuring that there Diversity and Affirmation Guidelines as a trailblazers who are driving Inclusion is room to grow in your step towards better workplace gender equality and gender inclusivity. After extensive parity in Sri Lanka. career whether in sales or in A Risk-aware Culture internal consultation, these support functions.” guidelines were developed to As part of its move to create Recognising and raise awareness about trans a gender smart workplace, Chathuri Munaweera Rewarding Our and gender diverse identities, AIA Sri Lanka has enhanced Director & Chief Officer - Legal, People promote understanding, and women’s presence in leadership Governance & Operations, positions via mentoring and SUPPLEMENT: provide guidance for support AIA Sri Lanka Supporting Our building succession pipelines. when a colleague affirms their Employees Propelling Ideas is a leadership During COVID-19 gender while employed with AIA learning programme that Australia. helped nurture six women EFFECTIVE leaders while increasing GOVERNANCE women’s representation in the top management tier. Among OUR TCFD REPORT its family-friendly employee benefits, AIA Sri Lanka offers FEEDBACK 100-day maternity leave, which has resulted in three out of four GRI AND HKSE mothers returning to work. GUIDE CONTENT INDEX
14 International Finance Corporation 2019 PAGE 59 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 PEOPLE AND CULTURE
Embed a culture A Risk-aware Culture of ethical decision making and strong A strong and resilient culture is key to the effective management of risk and relates to risk management, how an organisation navigates the challenges and opportunities posed to its business. in adherence to our Operating Philosophy and Code of Conduct. 2020 ESG AT-A-GLANCE Trust is integral to the AIA’s Operating Philosophy Employees must certify products and services that and Code further outline compliance with the Code and CHAIRMAN’S AIA offers to our customers expectations on professional other key policies annually STATEMENT and is the foundation of all our conduct, identifying expected and in this way, we check interactions in the workplace, risk awareness and channels that employees understand STATEMENT FROM GROUP CHIEF and with all other external for reporting on potential risks. their obligation to speak up, EXECUTIVE AND stakeholders. We hold ourselves Frequent training and internal reporting any potential risks PRESIDENT to the highest professional communications ensure that via the Group’s channels. We standards as defined in the all employees are familiar assess whether employees ABOUT THIS Code, which outlines how we with the appropriate reporting are confident that, should they REPORT maintain this trust and reflects options, which typically start raise an ethical matter, it will HEALTH AND our Operating Philosophy of with an employee’s manager or be appropriately handled, and WELLNESS "Doing the Right Thing, in through the use of our internal whether their manager makes the Right Way, with the Right or external hotlines. them feel comfortable about GREEN People... the Right Results will raising concerns about risk. OPERATIONS come". SUSTAINABLE INVESTMENT
PEOPLE AND CULTURE
Developing Our People
Diversity and Inclusion
A Risk-aware Culture
Recognising and Rewarding Our People
SUPPLEMENT: Supporting Our Employees During COVID-19
EFFECTIVE GOVERNANCE
OUR TCFD REPORT
FEEDBACK
GRI AND HKSE GUIDE CONTENT INDEX
PAGE 60 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 PEOPLE AND CULTURE
Ensure fair, accountable Recognising and Rewarding and equitable processes for employment, Our People progression, and rewards for our people Our total rewards programmes use a combination of market competitive financial and to deliver sustainable non-financial rewards to attract, engage and retain employees and motivate them to business results. help AIA execute its strategic goals. 2020 ESG AT-A-GLANCE During AIA’s recruitment and, just as importantly, how As well as improving operational processes we assess candidates’ they achieve their goals. efficiencies, this initiative has CHAIRMAN’S competencies and experience. empowered our managers with STATEMENT We operate fair and equitable We are also proud to provide our greater insights about their processes for employment, employees with the opportunity team and allowed managers STATEMENT FROM GROUP CHIEF remuneration, promotion and to become AIA shareholders and employees to take control EXECUTIVE AND termination, with decisions through our Employee Share of their needs with “anytime PRESIDENT based only on performance. Purchase Plan (ESPP) where anywhere” self-service employees can participate and transactions. Employees have ABOUT THIS Robust dialogues on individual receive ‘matching shares’ over embraced new ways of working, REPORT progress are part of our ongoing time during their employment such as providing more regular HEALTH AND performance development with us. feedback and recognition to WELLNESS process. The performance promote better performance and development dialogue engagement. Digital learners GREEN programme is designed to Modernising the Way can explore and complete more OPERATIONS enable managers to continually We Work self-paced online courses when assess performance and it is appropriate for them. SUSTAINABLE behaviours of their team and In 2020, we launched new INVESTMENT recommend development experiences for all our We prioritise listening to activities to help meet defined managers and employees our employees. With new PEOPLE AND CULTURE career objectives. In-depth across all our business units, mechanisms in place to listen to, performance discussions delivered through a new global measure and act on experience Developing are conducted among our human resources information feedback in a timely manner, Our People employees at least twice system, operating on a global we have achieved higher Diversity and annually – during mid-year and service delivery model. satisfaction levels and positive Inclusion year-end. Their focus is on what feedback from managers and employees have accomplished employees. A Risk-aware Culture
Recognising and Rewarding Our People
SUPPLEMENT: Supporting Our Employees During COVID-19
EFFECTIVE GOVERNANCE
OUR TCFD REPORT
FEEDBACK
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PAGE 61 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 PEOPLE AND CULTURE
Workforce Well-being We encourage employees to units moved to remote or stay active, understand their flexible working arrangements Our benefits and workforce health profile and take steps to to protect our employees well-being programmes help safeguard their well-being. Our and their families, and our our employees, and their business units offer a range of communities. Virtual learning, families live Healthier, Longer, benefits suited to local needs, resources and programmes Better Lives. We continue to which include flexible working, were launched through a provide flexible benefits tailored discounted gym memberships, centralised hub to equip 2020 ESG to local circumstances and other sporting and recreational our employees to cope with AT-A-GLANCE employee’s needs. At Group facilities, and mothers’ rooms. the pandemic and impact of Office, our workforce well-being working from home. CHAIRMAN’S programme focuses on physical In 2020, additional measures STATEMENT and mental health. We also were taken to ensure a safe support our employees through and secure environment for STATEMENT FROM GROUP CHIEF programmes such as AIA Vitality our employees during the EXECUTIVE AND memberships, team challenges pandemic. Many of our business PRESIDENT and health check-ups. ABOUT THIS REPORT
HEALTH AND WELLNESS
GREEN OPERATIONS
SUSTAINABLE INVESTMENT
PEOPLE AND CULTURE
Developing Our People
Diversity and Inclusion
A Risk-aware Culture
Recognising and Rewarding Our People
SUPPLEMENT: Supporting Our Employees During COVID-19
EFFECTIVE GOVERNANCE
OUR TCFD REPORT
FEEDBACK
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PAGE 62 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 PEOPLE AND CULTURE
Group Office Workforce Well-being
The year-long Workforce Well-being initiative started at AIA’s Group Office in April 2019 and continues to bring our Purpose to help people live Healthier, Longer, Better Lives into the heart of our workplace.
In 2020, a cross-functional team of representatives from Human Resources, AIA Vitality, Strategy, Corporate Solutions and Healthcare 2020 ESG continued to collaborate to create a range of activities to help employees AT-A-GLANCE improve their physical and mental well-being. CHAIRMAN’S STATEMENT
A microsite was established STATEMENT FROM GROUP CHIEF to host event enrolments, EXECUTIVE AND programme information and PRESIDENT monthly activity calendars. In response to the pandemic, ABOUT THIS the programme was REPORT redesigned to support Group HEALTH AND Office employees both WELLNESS mentally and physically in a virtual landscape. Two main GREEN themes were offered over OPERATIONS the year: Immunity & Self Care, and Thrive. SUSTAINABLE INVESTMENT
PEOPLE AND CULTURE
Developing Our People
The Immunity & Self Care Diversity and programme offered several Inclusion social hub pop-ups and virtual events to keep people A Risk-aware Culture connected as employees either worked from home Recognising and or in the office in spilt Rewarding Our People teams. Events included free immunity-boosting ginger SUPPLEMENT: drinks, healthy juice bars Supporting Our Employees and an array of educational During COVID-19 virtual workshops and webinars. The webinar EFFECTIVE topics covered family health GOVERNANCE and nutrition, practising resilience and how to have OUR TCFD REPORT empathetic conversations and manage conflicts at FEEDBACK home. GRI AND HKSE GUIDE CONTENT INDEX
PAGE 63 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 PEOPLE AND CULTURE
2020 ESG AT-A-GLANCE
CHAIRMAN’S STATEMENT
STATEMENT FROM GROUP CHIEF EXECUTIVE AND PRESIDENT
ABOUT THIS REPORT
HEALTH AND September saw the The Thrive programme included In October, on World Mental WELLNESS launch of a three-month a focus on mindfulness, and Health Day, each Executive employee campaign called a series of five workshops Committee sponsor shared GREEN Thrive, to shine a light were offered on Mondays and a personal message for all OPERATIONS on mental health in the Fridays for four weeks by our Group Office employees workplace and at home. Independent Director at AIA Sri about the importance of SUSTAINABLE To encourage important Lanka, Deepal Sooriyaarachchi. taking care of our own INVESTMENT dialogue about mental The workshops gave employees mental health. well-being, employees were a chance to learn about PEOPLE AND CULTURE supplied with educational meditation, the art of breathing conversation cards designed and how to control the racing Developing by the global ‘R U OK?’ mind. Our People movement. Diversity and Inclusion
A Risk-aware Culture
To end the year, Workforce Recognising and Well-being collaborated with Rewarding Our the Group sponsorship team People to involve the Hong Kong SUPPLEMENT: based Spurs coaches and Supporting Our bring a series of “movement Employees During COVID-19 for mental health” events. The programme offered EFFECTIVE exercise bootcamps at our GOVERNANCE AIA Vitality Park on the Hong Kong waterfront, both OUR TCFD REPORT for employees to join during the week and with their FEEDBACK families on the weekends. GRI AND HKSE GUIDE CONTENT INDEX
PAGE 64 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 PEOPLE AND CULTURE
Workplace Safety the year we introduced a “Excellent Indoor Air Quality”. 2020 ESG moratorium on business travel We also sample air quality at AT-A-GLANCE AIA ensures a safe and secure and only business-critical our offices in Singapore and environment for all employees, journeys were permitted. monitor air quality at our offices CHAIRMAN’S agents and visiting customers. in the Philippines. STATEMENT In 2020, additional measures We maintain high levels were required across all our of workplace safety and For details on AIA’s emission STATEMENT FROM GROUP CHIEF businesses. We prioritised conduct fire drills at all reduction initiatives, please refer EXECUTIVE AND customer-facing staff and premises. To ensure that our to the Green Operations section PRESIDENT ensured that employees employees operate in a healthy and Our TCFD Report. had a sufficient supply of environment, we continue to ABOUT THIS masks to commute safely, monitor air quality at select REPORT when necessary, while most office spaces. For example, the HEALTH AND businesses provided hand office space at AIA Hong Kong WELLNESS sanitiser to employees. During has been certified as having GREEN OPERATIONS
SUSTAINABLE INVESTMENT
PEOPLE AND CULTURE
Developing Our People
Diversity and Inclusion
A Risk-aware Culture
Recognising and Rewarding Our People
SUPPLEMENT: Supporting Our Employees During COVID-19
EFFECTIVE GOVERNANCE
OUR TCFD REPORT
FEEDBACK
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PAGE 65 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 PEOPLE AND CULTURE
SUPPLEMENT: Supporting Our Employees During COVID-19
The safety of our employees work and collaborate effectively being of our employees, we 2020 ESG has been our paramount on a remote basis, including also promoted our Employee AT-A-GLANCE concern since the outbreak of utilising technology efficiently. Assistance Programmes, which COVID-19. Throughout the year, The need for social distancing are available in a number of CHAIRMAN’S many business units moved and lockdowns in some cities markets and include a 24-hour STATEMENT to remote or flexible working and markets, combined with support hotline. arrangements when required. travel bans, saw a rapid STATEMENT FROM GROUP CHIEF Our response has been specific increase in the use of video AIA also has a group-wide EXECUTIVE AND to local needs and has evolved conferencing. incident management plan PRESIDENT as precautions were introduced and local plans to handle any by governments to prevent The medical insurance potential case of COVID-19 ABOUT THIS the spread of the disease. At a policies across the majority of within our offices. All business REPORT corporate level, this required our business units provided units have business continuity HEALTH AND proactive and targeted permanent employees with free and incident management plans WELLNESS communications. We deployed a coverage for expenses related in place and activated a team range of tools, including online to COVID-19. of senior leaders to handle GREEN resources on local intranets and our pandemic response. This OPERATIONS microsites such as our “COVID When our employees were communications effort included hub”, and used videos, virtual able to work in the office, we a high level of collaboration SUSTAINABLE town halls and messages from ensured safeguards were put in from a range of functions at INVESTMENT senior leaders to support our place to deliver a safe working the company, including Risk, employees and provide up-to- environment. This included Human Resources, Corporate PEOPLE AND CULTURE date information regarding the temperature checks, policies Facilities, Technology and effect of the virus. regarding masks in the office, Operations and Corporate Developing and scenario planning should Security. Our People With many of our people around someone in the office building Diversity and the region working from home, test positive for COVID-19. Inclusion we focused on finding ways to To support the mental well- A Risk-aware Culture
Recognising and Rewarding Our People
SUPPLEMENT: Supporting Our Employees During COVID-19
EFFECTIVE GOVERNANCE
OUR TCFD REPORT
FEEDBACK
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PAGE 66 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 EFFECTIVE GOVERNANCE
2020 ESG AT-A-GLANCE
CHAIRMAN’S STATEMENT
STATEMENT FROM GROUP CHIEF EXECUTIVE AND PRESIDENT
ABOUT THIS Effective REPORT HEALTH AND WELLNESS
GREEN Governance OPERATIONS SUSTAINABLE Strong corporate governance We uphold our reputation through our commitment to the highest INVESTMENT is essential both to the standards and responsible business practice. PEOPLE AND delivery of sustainable value CULTURE and to maintaining a culture Our Strategic Approach of business integrity. AIA is EFFECTIVE committed to high standards Maintain a governance programme consistent with international best GOVERNANCE of corporate governance, practice that fosters business integrity and sound decision-making which sets the foundation upon through a diverse and highly-qualified Board comprising a majority of Board Governance which we are able to grow our Independent Non-executive Directors. Effective Risk business, realise our Purpose, Management and and help people live Healthier, Responsible Business Effectively manage ESG risks and opportunities throughout our Longer, Better Lives. Practices business, maintaining and ensuring the sufficiency of our risk management framework to uphold commitments to the highest Promoting ESG Best Through our ESG Strategy, we Practice standards of responsible business practices. demonstrate our commitment to ESG Rating and Index effective governance, outlined Inclusions in the section below. We Lead the promotion of ESG best practice across the region, engaging encourage you to refer to the with all stakeholders including shareholders, regulators, green OUR TCFD REPORT Corporate Governance Report finance and industry associations. of the Annual Report 2020 for FEEDBACK further details. GRI AND HKSE GUIDE CONTENT Establish AIA as a global leader on key ESG indices, ratings and INDEX benchmarks through effective and relevant ESG reporting.
This section outlines our support of SDG 16 on peace, justice and strong institutions. Our approach to good governance, as discussed in this section, is aligned with SDG Target 16.5 and SDG Target 16.6.
PAGE 67 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 EFFECTIVE GOVERNANCE
Strong corporate governance is essential both to the delivery of sustainable value and to maintaining a culture of business integrity.
PAGE 68 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 EFFECTIVE GOVERNANCE
Maintain a governance Board Governance programme consistent with international best Strong corporate governance is essential both to the delivery of sustainable value practice that fosters and to maintaining a culture of business integrity. The Board is responsible for the business integrity and development and implementation of the Group’s corporate governance practices. sound decision-making It ensures the maintenance of high standards of governance in all aspects of the through a diverse and Company’s business, setting the strategic direction for the Group and ensuring highly-qualified Board accountability and sustainability by maintaining appropriate levels of review, challenge and guidance in its relationship with the Company’s management. 2020 ESG comprising a majority AT-A-GLANCE of Independent Non- executive Directors. CHAIRMAN’S STATEMENT Board Committee The Group’s Board Diversity Our Board includes members Policy outlines the following STATEMENT FROM Composition GROUP CHIEF with deep experience in our objectives: EXECUTIVE AND markets, including in areas PRESIDENT as diverse as commerce, Each of the four Board • the Board remains regulation and the public committees, namely the Audit committed to maintaining ABOUT THIS sector. This expertise is Committee, the Nomination that a majority of its REPORT supported by a structure Committee, the Remuneration membership shall be HEALTH AND that enables appropriate Committee and the Risk Independent Non-executive WELLNESS oversight while allowing for Committee, is chaired by an Directors; and in-depth consideration of Independent Non-executive GREEN various matters by the Board’s Director. The Audit Committee, • the Board’s membership is OPERATIONS committees and delegation the Nomination Committee, and made up of members with of operational matters to the Remuneration Committee diverse backgrounds and SUSTAINABLE management, while ensuring comprise of Independent experience, including diversity INVESTMENT that the Board retains overall Non-executive Directors. The of nationality, ethnicity, and gender, with such members PEOPLE AND control. Risk Committee includes the CULTURE Group Chief Executive as its demonstrating appropriate knowledge, experience and only non-independent Director. EFFECTIVE Board Independence His inclusion is to ensure that understanding of the markets GOVERNANCE the Risk Committee has the in which the Company Board independence is benefit of detailed financial operates and its business. Board Governance critical to effective corporate and operational information to Effective Risk governance. Providing ensure appropriate oversight Management and independent and objective in support of ensuring the ESG Governance Responsible Business judgment that acts in the sustainability of the Group’s Practices interests of the Company and operations. The Board’s membership Promoting ESG Best its stakeholders is central to includes expertise in the Practice the Board’s oversight. Nine out management of ESG matters, ESG Rating and Index of the ten Board members are Board Diversity with various members Inclusions Independent Non-executive demonstrating deep fluency in Directors. Board diversity is important ESG issues and trends, while OUR TCFD REPORT to ensuring robust corporate bringing valuable experience With the exception of the Group governance and decision- and perspectives gained FEEDBACK Chief Executive and President, making. The Board draws on from their previous positions the Board is made up entirely extensive business, financial, serving on ESG or sustainability GRI AND HKSE of Independent Non-executive government, regulatory and committees of listed companies, GUIDE CONTENT INDEX Directors, underscoring our policy experience from a broad as well as in public service and strong commitment to operating spectrum of backgrounds, as government positions. according to international best relevant to the Group’s business practice. operations and development. The Board also reflects a diversity of nationalities, ethnicities, educational backgrounds, functional expertise, gender and age.
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Effectively manage ESG Effective Risk Management and risks and opportunities throughout our business, Responsible Business Practices maintaining and ensuring the sufficiency A commitment to responsible business practices and effective risk management are of our risk management essential in order to create an environment where issues can be addressed promptly framework to uphold as they arise. We are also committed to the fair treatment of our customers and their commitments to the data, always striving to understand their needs and wants. 2020 ESG highest standards of AT-A-GLANCE responsible business practices. CHAIRMAN’S STATEMENT
STATEMENT FROM GROUP CHIEF Effective Risk processes in place to identify, to our policyholders and to EXECUTIVE AND Management quantify and monitor risk ensure business continuity PRESIDENT across the Group. The boards of under stressed conditions. Investors increasingly consider directors of our business units For further details on our ABOUT THIS ESG risks as an important factor are responsible for reviewing approach, please refer to the REPORT in their investment decision- this framework to ensure that Risk Management section of the HEALTH AND making, with research showing it is sufficiently effective given Annual Report 2020. WELLNESS that companies with better local business environments capacity to manage ESG-related and context. Our internal audit function GREEN risks produce higher returns provides independent OPERATIONS over the long-term15. At AIA, a We address ESG-related risks assurance on the effectiveness comprehensive approach to risk according to the process of our key controls and SUSTAINABLE management ensures that we outlined in the RMF and recommends control INVESTMENT have the frameworks in place categorise them based on improvements as necessary. PEOPLE AND across our business to address the nature of the risk to our The function provides CULTURE relevant risks. operations. Data protection, assurance that the appropriate cybersecurity, people controls in place to address EFFECTIVE The Board retains ultimate management and responsible material risks are effective. GOVERNANCE responsibility for the oversight business practices may have of the Group’s risk management immediate operational impacts AIA recognises that long-term Board Governance activities and monitors material and are therefore viewed and ESG risks, such as climate Effective Risk group-wide risks, whether they treated as operational risks. change, pollution, the global Management and are relevant to the industry Long-term challenges such pandemic and lifestyle-related Responsible Business or unique to the Group and as pollution and lifestyle risk NCDs, have far reaching Practices its businesses. The Board is factors impact the health and impacts on our markets and Promoting ESG Best supported by the Board Risk well-being of people across require concerted contributions Practice Committee (BRC) and executive our markets and are viewed as from businesses, governments ESG Rating and Index risk committees (eRC), such insurance risks given the impact and the general public alike. AIA Inclusions as the Operational Risk they may pose. Such emerging aims to address these issues Committee (ORC) and Financial ESG issues may be discussed through discussion within our OUR TCFD REPORT Risk Committee (FRC), which by the BRC, eRC or the ESG ESG member organisations, are comprised of our senior Committee. and by playing a proactive role FEEDBACK executives. through our business where we AIA conducts scenario testing remain committed to enabling GRI AND HKSE AIA’s Risk Management and business continuity analysis Healthier, Longer, Better Lives GUIDE CONTENT INDEX Framework (RMF) ensures that to ensure sufficient capital is across the region. we have the capabilities and earmarked to provide protection
15 MSCI 2019 PAGE 70 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 EFFECTIVE GOVERNANCE
ESG Committee
The ESG Committee comprises ESG risks are also discussed and members of our Group Executive escalated to the Board through 2020 ESG Committee and an Independent the Risk Committee. AT-A-GLANCE Non-executive Director of the Board. The ESG Committee All employees at AIA are CHAIRMAN’S is responsible for overseeing responsible for contributing STATEMENT the governance around ESG, to the realisation of our ESG in addition to integrating priorities, whether through STATEMENT FROM and addressing ESG issues upholding our principles for good GROUP CHIEF within our business. The ESG EXECUTIVE AND governance or through direct PRESIDENT Committee also considers ESG ESG-focused roles within the research, feedback raised by Group’s ESG team or Investment ABOUT THIS key stakeholders and reports by function. Across AIA’s markets, REPORT rating agencies to provide input employees also contribute to the on specific ESG issues relevant to Group’s ESG reporting initiatives, HEALTH AND the Group. the maintenance of our WELLNESS sustainable buildings, and our The ESG Committee met four community outreach initiatives. GREEN times in 2020 and reviewed our OPERATIONS ESG Strategy, progress, and the The ESG team, in collaboration content of this Report, and also with the Group Investment SUSTAINABLE considered our submissions function, also engages with INVESTMENT to sustainability indices. The our business units on raising ESG Committee is responsible capacity and understanding of PEOPLE AND for updating the Board on ESG ESG issues among its leadership CULTURE matters and provided biannual team. updates on material issues to EFFECTIVE the Board during 2020, while GOVERNANCE
Board Governance
Effective Risk Management and Responsible Business Practices
Promoting ESG Best Practice
ESG Rating and Index Inclusions
OUR TCFD REPORT
FEEDBACK
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Responsible Business to equip AIA leaders with to monitor compliance with Practices practical training to manage the Anti-Corruption Policy. situations involving ethical The Anti-Corruption Policy Our customers place a high dilemmas. also outlines the roles and degree of trust in our business, responsibilities of employees and in our ability to provide Each employee is expected to to ensure compliance. Our protection and financial security take personal responsibility for business units are responsible over time to millions across the observing the highest standards for implementing processes 2020 ESG region. We take pride in our long of integrity and conduct, and and controls to reduce the AT-A-GLANCE history of successful operation to report any violations. We risk of corruption and ensure and value the reputation we believe that our environment compliance with all relevant CHAIRMAN’S have earned of being a reliable and the processes that we have local laws and regulations. STATEMENT and trustworthy company that empower employees to identify acts with integrity. and escalate issues without fear STATEMENT FROM Preventing Fraud GROUP CHIEF of retribution. Non-compliance EXECUTIVE AND Code of Conduct with the Code is subject to AIA is committed to the high PRESIDENT disciplinary action, which ethical standards outlined in At the heart of our approach can include dismissal where the Code and espouses a zero- ABOUT THIS to good governance is our appropriate. AIA’s business tolerance approach towards REPORT Code. The Code provides clear partners, including its agents, fraud. AIA’s Anti-Fraud Policy HEALTH AND guidance on how we conduct distribution partners and sets out standards for managing WELLNESS business at all times and suppliers are expected to apply the risk of fraud, including applies to everyone who works similar standards and to follow training as well as preventive GREEN at AIA. It reflects our Operating the same responsible practices and detective measures. Our OPERATIONS Philosophy, namely “Doing the as our employees. operating entities implement Right Thing, in the Right Way, procedures to prevent and SUSTAINABLE with the Right People… the facilitate early detection of INVESTMENT For further details, we Right Results will come.” It also fraudulent practices to protect invite you to read our PEOPLE AND defines how we hold ourselves Code linked here. customer interests and those of CULTURE to the highest standards of AIA, in line with this Anti-Fraud professionalism, which is key to Policy. EFFECTIVE maintaining trust and building Preventing Bribery and GOVERNANCE sustainable relationships with Corruption Incidents and allegations our stakeholders – customers, or suspicions of fraud are Board Governance agents, distribution partners, Under our policies, employees assessed and investigated. Effective Risk regulators and investors. and other persons representing If allegations or suspicions Management and AIA are prohibited from are substantiated, AIA is Responsible Business The Code has been translated offering, accepting, paying committed to taking a fair Practices into six languages and all or authorising any bribes and proportionate approach Promoting ESG Best employees are required to or any form of corruption in in administering disciplinary Practice undertake training to familiarise any business interaction that actions. Other actions may ESG Rating and Index themselves with the Code upon involves AIA and government include the loss of employment- Inclusions joining AIA. All employees are officials, our customers, or related benefits, reporting also required to complete an employees. the fraud to law enforcement OUR TCFD REPORT annual certification attesting to authorities for prosecution or their familiarity and compliance Anti-corruption training is seeking a legal remedy against FEEDBACK with the Code. Training on the compulsory for all employees. the employee for the fraud that Code is supplemented with Reviews and assessments are has been committed. GRI AND HKSE ethical leadership programmes conducted from time to time GUIDE CONTENT INDEX
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Whistle-blower Policy subject of reports varied Our Commitments to our widely, and included customer Customers AIA provides channels for all complaints, Human Resources of our stakeholders, including and work grievances, At AIA, we strive to meet employees, distributors, matters relating to individual customer expectations and customers and suppliers, circumstances and matters earn our customers’ trust by to raise concerns about any relating to alleged breaches of adhering to high standards of violation of the Code or other AIA policies, workplace respect, quality and customer service 2020 ESG behaviour that falls short of the individual or small group ethical throughout the customer AT-A-GLANCE high standards demanded by conduct, and questions about journey. AIA’s programmes the Group. business practices. on consumer protection and CHAIRMAN’S fairness, as well as customer STATEMENT To that end, AIA maintains a Among completed service and experience are comprehensive Whistle-blower investigations in the period deeply rooted in AIA’s Operating STATEMENT FROM GROUP CHIEF Programme designed to handle 2019-2020, 40 per cent covered Philosophy and Code. EXECUTIVE AND reports of misconduct and allegations which were at least PRESIDENT inappropriate behaviour with partly substantiated. As part of the product approval multiple reporting channels, process, business units ABOUT THIS including dedicated email Our Approach to are required to perform an REPORT channels and a 24-hour, multi- assessment to ensure that Anti-money Laundering (AML) HEALTH AND lingual third-party administered and Counter Terrorist Financing each product complies with all WELLNESS ethics hotline which permits (CTF) and Sanctions applicable laws, regulations and complete anonymity. internal policies. GREEN AIA is committed to a strict OPERATIONS Further details on our programme of compliance with AIA’s intermediaries also play a ethics hotline can be all applicable AML/CTF laws major role in building trust and SUSTAINABLE found here. and regulations to prevent the confidence with our customers, INVESTMENT use of its products and services through their conduct and PEOPLE AND All allegations are assessed for money laundering and professionalism. We have put CULTURE and investigated. Reporting terrorist financing purposes. in place internal standards for through internal channels (such a business quality framework EFFECTIVE as Human Resources, Audit The Group AML/CTF Policy sets that sets out the minimum GOVERNANCE and Compliance) accounted out the detailed requirements requirements to manage sales for 66 per cent of the reports of the Group AML/CTF conduct risk which we believe Board Governance received during the year. Issues Programme. This includes ensures that the right outcomes Effective Risk raised via the ethics hotline a risk-based approach to are achieved for our customers. Management and are handled by the Group conducting customer due Responsible Business Compliance team. diligence, ongoing monitoring, The framework includes the Practices suspicious activity reporting, following key elements: Promoting ESG Best The Whistle-blower Programme training and record keeping. AIA Practice is overseen by the Board Audit uses a comprehensive AML/ • Market conduct guidelines ESG Rating and Index Committee, who receive regular CTF monitoring software and must define the proper Inclusions reports from Group Internal online tool to screen, risk profile conduct and behaviour for Audit and Group Compliance on and monitor customer activity. intermediaries; OUR TCFD REPORT the number and nature of issues raised and the progress of all All new employees are required • Training programmes for FEEDBACK material investigations. AIA’s to complete AML/CTF training. intermediaries on AIA Whistle-blower Protection Policy Tied agents are also required products and sales processes GRI AND HKSE prohibits any form of retaliation to receive appropriate AML/ should cover Know-Your- GUIDE CONTENT INDEX against any employee providing CTF training. In addition, our Customer diligence; a good faith report of an actual Group Economic Sanctions • Sales processes must reflect or suspected violation of the Policy sets out standards to the Code, which includes Code, AIA policies or the law. manage the risk of dealings financial needs analysis with governments, individuals for product suitability and In 2020, the programme and entities subject to sanctions affordability assessments; received reports that included programmes. and a broad range of issues. The
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• Our interactive Point of Sale Customer Engagement Listening to our customers to (iPoS) technology guides deliver a best-in-class customer experience our agents through the sales With more than 38 million process and helps ensure individual policies and over It is our strategic imperative a consistent, high-quality 16 million participating members to create a distinctive, customer experience. of group insurance schemes, personalised and meaningful the scale and footprint of our customer experience. To We monitor adherence customer base underscores our deliver this, we must listen to 2020 ESG to our standards through impact on our communities as our customers and design and AT-A-GLANCE various means, including we actively engage and nurture deliver an end-to-end customer direct verification calls with long-term relationships with our journey anchored around their CHAIRMAN’S needs. STATEMENT customers and a mystery customers. shopping programme. Customer experience research STATEMENT FROM Any misrepresentation, or Achieving our Purpose of GROUP CHIEF informs what customers expect attempt to mislead or deceive enabling people to lead EXECUTIVE AND and how we may enhance PRESIDENT customers, for example through Healthier, Longer, Better Lives unsupported or fictitious their interactions with us. requires that we engage in This research has enabled ABOUT THIS claims about our products or a meaningful way with our REPORT those of our competitors, is not us to understand more about customers at each touchpoint how customers interact with acceptable and may result in in their journey, allowing us to HEALTH AND disciplinary action. us at different stages of the WELLNESS develop a deep understanding customer journey, so we can of their unique needs and wants AIA also has in place an internal refine the design to better meet GREEN and meet their requirements. their requirements. We have OPERATIONS standard on our business also expanded our Voice of quality framework which sets Customer programme, which SUSTAINABLE out the minimum requirements Customer segmentation was featured in last year’s INVESTMENT applicable to business partners. Helping our customers improve Report. Specifically, our annual These include due diligence PEOPLE AND their health requires that Customer Relationship Survey checks on prospective CULTURE we better understand their (CRS) and Distributor Survey distribution partners, product needs. To that end, we conduct have been refreshed with new training and on-going monitoring EFFECTIVE research to understand the measurement metrics and GOVERNANCE of business quality. needs of various customer design to get deeper insights segments in order to customise at each stage of the customer Board Governance We have also put in place policies journey. to promote transparency in our products and services. Effective Risk Management and communications with customers. We have also refined the Responsible Business For example, there are internal This year, we expanded our Practices segmentation model to Thailand framework design of our real- standards on sales illustrations, time closed loop customer to get a holistic view of different Promoting ESG Best which establish the minimum feedback system, which Practice customers in terms of their life requirements for disclosure provides us with customer stage, attitude and behaviour. and information presented in feedback right after their ESG Rating and Index With these segmentation Inclusions promotional materials for AIA interactions with AIA. By insights, we can customise products. Our goal is to clearly identifying the stages of the OUR TCFD REPORT communicate key information our proposition based on journey that are most important about product features and unique customer needs. We to customers, we are able to FEEDBACK projected insurance policy have also developed digital provide timely and proactive values and any assumptions sales tools and training to help support. GRI AND HKSE that have been made relating to agents identify their customer GUIDE CONTENT INDEX charges and returns. As part of segments so they can provide With the valuable insights we the product approval process, more relevant professional learned from our customers business units perform reviews of advice and support, and engage and distributors, we continually all sales materials. better with their customers. improve our customer
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experience through enhanced safeguards for our customer We also partner with leading business processes and and business data as well as information security service communications, enabled by compliance with data protection providers to provide further technology, digitalisation and legislation. This policy is capability to ensure a secure analytical capabilities to meet communicated via classroom operational environment. their needs, particularly during sessions and e-learning to AIA safeguards its critical the COVID-19 pandemic. This is employees at Group Office assets from cyber threats discussed in further detail in the and is regularly reinforced using classification and threat 2020 ESG Health and Wellness section. through refresher training and modelling techniques. AT-A-GLANCE awareness activities focusing Handling of customer on topics such as proper data AIA believes that cybersecurity CHAIRMAN’S complaints handling, breach reporting is the responsibility of every STATEMENT and phishing. All employees employee. Therefore, we We have consistent guidelines and agents are required to educate our employees about STATEMENT FROM GROUP CHIEF for handling customer safeguard customers’ personal how to protect themselves EXECUTIVE AND complaints across all our information and are prohibited and AIA from cyber threats PRESIDENT business units. This includes from disclosing customer through web-based awareness clear procedures and protocols information to unauthorised and readiness training and ABOUT THIS for dealing with customer parties. conducting regular cyber- REPORT issues and the documentation defence assessments including HEALTH AND related to the handling of cases. AIA is committed to protecting incident management drills. WELLNESS Customers can learn about the interests of our customers, the channels for submitting partners, employees and In 2020, AIA continued GREEN complaints through our stakeholders, ensuring high to maintain ISO 27001 OPERATIONS websites as well as in our standards of information certification for our identity policy materials. AIA strives security. AIA’s Group access management and SUSTAINABLE to handle all complaints and Information Security Policy cybersecurity operations INVESTMENT investigations in a prompt and is consistent with industry- services on our security PEOPLE AND efficient manner. leading standards to ensure controls, including our data CULTURE that our systems, processes and security and encryption Resources are in place to information are secure. standards. AIA also EFFECTIVE address complaints across commissioned an independent GOVERNANCE our business units, including Our Group Chief Technology external assessor to conduct a dedicated person to handle Officer and a dedicated a high-level review on our Board Governance issues within an acceptable information security team cybersecurity controls and Effective Risk timeframe. We have also oversee the quality and processes performance Management and established a process to consistency of technology risk against the National Institute Responsible Business escalate issues to management management and cybersecurity of Standards and Technology Practices when required, including a line across the Group. The team of the United States (NIST) Promoting ESG Best of communication to Group maintains a focus on protecting standards. Practice Office. AIA from cyber threats by ESG Rating and Index detecting any anomalies, AIA also continues to invest Inclusions Securing Customer Information effectively responding to in Information Technology cybersecurity issues, enhancing safeguards, including in OUR TCFD REPORT Data protection and defensive controls and investing the areas of Cloud Security, cybersecurity in security analytics. This Data Protection and Mobile FEEDBACK In providing our products and includes focusing on our key Application Security, to ensure services, we ask our customers, systems that process our sufficient operational controls GRI AND HKSE employees and business customer data as well as key which meet our information GUIDE CONTENT INDEX partners to trust us with a supporting business processes. security objectives. In addition, range of sensitive information. All cybersecurity issues are all cloud services providers To ensure we safeguard that handled by the Director of we engage must adhere to our information, AIA has in place a Information Security, who Cryptography Standard. Group Data Privacy Compliance reports directly to the Head of Policy to ensure adequate Group Technology Governance.
PAGE 75 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 EFFECTIVE GOVERNANCE
Appropriate data protection Supply Chain Management controls are also integrated into relevant operational processes We work with many different and are regularly tested by our product and service providers information security team. For across our business. example, procedural controls Sustainability is a key element and information safeguards of our supply chain as are built into our iPoS and summarised in our Supplier 2020 ESG interactive Mobile Office (iMO) Code of Conduct (Supplier AT-A-GLANCE systems that have been adopted Code). by our insurance agents in CHAIRMAN’S their sales processes and The Supplier Code was STATEMENT broader day-to-day operations. developed to complement These safeguards include user the Code. It applies to all of STATEMENT FROM GROUP CHIEF authentication and secure our suppliers and references EXECUTIVE AND storage of customer data. international conventions PRESIDENT such as the UN Declaration on Third-party assessments Human Rights. The Supplier ABOUT THIS Code encourages sound ESG REPORT AIA reviews the data security practices among our suppliers HEALTH AND standards of our third-party and a general culture of WELLNESS vendors through our Third-party integrity in all matters. AIA Security Assessment process. also considers a supplier’s GREEN This regularly assesses a broad sustainability performance OPERATIONS range of security controls of during supplier selection, our vendors, including data requesting information on SUSTAINABLE security and encryption, against environmental policies and INVESTMENT ISO27001 and NIST standards. employee information among PEOPLE AND AIA also conducts privacy impact others. CULTURE assessments to avoid or minimise adverse impacts on data privacy As a Group, we work with EFFECTIVE and to ensure appropriate suppliers that demonstrate GOVERNANCE safeguards are in place. sound practice in regard to their ESG performance. We Board Governance All access to customer data is may conduct supplier and Effective Risk subject to appropriate approvals third-party assessments where Management and and granted on a need-to-know necessary. Responsible Business basis, with recertification to Practices confirm it remains correct. Promoting ESG Best Practice Finally, AIA also has insurance ESG Rating and Index coverage to protect the Inclusions organisation against cyber- security related events and OUR TCFD REPORT incidents. FEEDBACK
AIA’s Privacy Policy GRI AND HKSE Statement is publicly GUIDE CONTENT available and can be INDEX viewed here.
PAGE 76 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 EFFECTIVE GOVERNANCE
Lead the promotion of Promoting ESG Best Practice ESG best practice across the region, engaging AIA has taken the initiative to contribute to discussions shaping regional ESG with all stakeholders regulations, best practice and disclosure. We engage with the Group’s investors on ESG including shareholders, topics and regularly participate in consultations with regulators and the insurance regulators, green sector across the region and globally. finance and industry associations. 2020 ESG In 2020, AIA responded to Expanding on our commitment AT-A-GLANCE the PRI China ESG Disclosure to stakeholders discussed in Survey and the Monetary the About this Report section, CHAIRMAN’S Authority of Singapore’s we will continue to evolve our STATEMENT Consultation on Environmental disclosure to align with best Risk (insurers and asset practice on ESG reporting, STATEMENT FROM GROUP CHIEF managers). AIA also responded engage with our stakeholders EXECUTIVE AND to the International Financial and respond to their needs. PRESIDENT Reporting Standards (IFRS) Foundation’s Consultation AIA is also a member of a ABOUT THIS on Sustainability Reporting, number of ESG associations, REPORT supporting the development of where we regularly participate HEALTH AND a global set of internationally- in the promotion of ESG best WELLNESS recognised sustainability practice and take part in standards. roundtable discussions. GREEN OPERATIONS
ESG-related Organisation Level of membership SUSTAINABLE INVESTMENT UN Global Compact Signatory PEOPLE AND Women in Finance Asia (WiFA) Member CULTURE Task Force on Climate-related Financial Supporter Disclosures (TCFD) EFFECTIVE GOVERNANCE Principles for Responsible Investment (PRI) Signatory Board Governance Hong Kong Green Finance Association (HKGFA) Member Effective Risk 30% Club (Hong Kong Chapter) Member Management and Responsible Business Climate Action 100+ Member Practices
Principles for Responsible Investment Investor Member Promoting ESG Best Working Group on Sustainable Palm Oil Practice ESG Rating and Index Inclusions
OUR TCFD REPORT
FEEDBACK
GRI AND HKSE GUIDE CONTENT INDEX
PAGE 77 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 EFFECTIVE GOVERNANCE
Establish AIA as a ESG Ratings and Index Inclusions global leader on key ESG indices, ratings and AIA is proud of our inclusion on sustainability indices, benchmarks and of our ESG benchmarks through Ratings and scores. effective and relevant Our ESG reporting continues to evolve to meet our needs and those of our stakeholders, ESG reporting. and we regularly assess the suitability of different ESG and sustainability standards and reporting guidelines. Our ambition is to be recognised for sustainability leadership globally and to be an ESG leader within the life and health insurance industry. 2020 ESG AT-A-GLANCE
Since commencing our ESG Meanwhile, AIA’s MSCI ESG CHAIRMAN’S journey, AIA has achieved rating improved from “BBB” in STATEMENT consistent and substantial 2019 to “A” in 2020. improvements in our ratings, STATEMENT FROM GROUP CHIEF illustrating our commitment to In Hong Kong we are proud EXECUTIVE AND disclosure and improving our of being recognised as a PRESIDENT performance on material ESG sustainability leader with a issues. This is demonstrated presence on two Hang Seng ABOUT THIS through our CDP score, Corporate Sustainability REPORT which placed AIA among its Indices, the Hang Seng HEALTH AND “Leadership” group (score Corporate Sustainability Index WELLNESS of A-) for climate change (HSSUS) and the Hang Seng performance, the highest (Mainland China and Hong GREEN scoring tier for our sector. This Kong) Corporate Sustainability OPERATIONS is also one of the highest ratings Index (HSMHSUS). for a Hong Kong-headquartered SUSTAINABLE company. These ratings are a testament INVESTMENT to our approach to shaping PEOPLE AND Sustainalytics assesses the ESG a sustainable future and CULTURE risk of companies, considering creating long-term value for all issues that could impact the our stakeholders as we help EFFECTIVE long-term performance of the millions of people in Asia to live GOVERNANCE company’s investments. For two Healthier, Longer, Better Lives. years running, Sustainalytics Board Governance has placed AIA in the first Effective Risk percentile of companies in the Management and insurance industry. Globally, Responsible Business we are in the fifth percentile, Practices of a pool of more than 12,700 Promoting ESG Best companies from all industries. Practice
ESG Rating and Index Inclusions
OUR TCFD REPORT
FEEDBACK
GRI AND HKSE GUIDE CONTENT INDEX
PAGE 78 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 EFFECTIVE GOVERNANCE
A summary of our key ESG ratings and index inclusions is included below:
CDP is a not-for-profit organisation which enables investors, companies, cities, states and regions to manage their environmental impacts by assessing climate
DISCLOSURE INSIGHT ACTION risks and low carbon opportunities. 2020 2019 CDP Climate Change Score A- C 2020 ESG CDP Average Climate Change Score for Financials B C AT-A-GLANCE
CHAIRMAN’S STATEMENT AIA has consistently placed in the first percentile of the insurance industry in Sustainalytics’ ESG Risk Rating assessment. STATEMENT FROM GROUP CHIEF 2020 2019 EXECUTIVE AND Rank (Insurance) 2nd 2nd PRESIDENT st st Percentile (Insurance) 1 1 ABOUT THIS Percentile (Life and Health Insurance) 2nd 2nd REPORT Percentile (Global Universe) 5th 6th HEALTH AND WELLNESS
Providing a benchmark for sustainable investments both locally and regionally, GREEN the inclusion of AIA in the series is based on a sustainability assessment OPERATIONS undertaken by Hong Kong Quality Assurance Agency (HKQAA). HSSUS tracks SUSTAINABLE the performances of Hong Kong listed companies that excel in corporate INVESTMENT sustainability, while HSMHSUS is a cross-market index that covers corporate sustainability leaders in Hong Kong and Mainland China. PEOPLE AND CULTURE 2020 2019 Rating A+ A+ EFFECTIVE GOVERNANCE
Board Governance Formerly known as Morgan Stanley Capital International, the MSCI ESG ratings measure a company’s resilience to long-term, industry material ESG risks. Effective Risk Management and 2020 2019 2018 2017 2016 Responsible Business Practices Rating A BBB BBB BB B Promoting ESG Best Practice
The ISS ESG Corporate ESG Performance Status takes into account ESG ESG Rating and Index challenges that are profoundly distinct in individual sectors, as well as for Inclusions companies and states, by assigning different “ISS ESG Prime” absolute performance thresholds. AIA has achieved “Prime” status two years in a row. OUR TCFD REPORT
2020 2019 FEEDBACK Status Prime Prime GRI AND HKSE GUIDE CONTENT INDEX STOXX Limited is a Swiss globally integrated index provider. In their most recent review, STOXX included AIA in both their Asia/Pacific ESG Leaders 50 Index, and Global ESG Leaders Index.
FTSE4Good Index Series is designed to measure the performance of companies with strong ESG practices and is administered by the Financial Times Stock Exchange-Russell Group (FTSE Russell). AIA has been a FTSE4Good member since 2017.
PAGE 79 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 OUR TCFD REPORT
SUPPLEMENT: Our TCFD Report
PAGE 80 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 OUR TCFD REPORT
Our Task Force on Climate-related Financial Disclosures Report
The Task Force on Climate- In addition, boards of directors institutional shareholders and 2020 ESG related Financial Disclosures of our business units play a reports by rating agencies and AT-A-GLANCE (TCFD) provides a consistent similar role to ensure that provides input on material ESG reporting framework for the local risk framework is issues relevant to the Group. CHAIRMAN’S companies to disclose how appropriately tailored to the STATEMENT they are addressing climate- local business and environment. In 2020, feedback on climate related risks and opportunities. change was discussed by the STATEMENT FROM GROUP CHIEF The section below builds on We address ESG-related risks ESG Committee at all four EXECUTIVE AND the Group’s first TCFD report, according to the process meetings, with key outcomes PRESIDENT published last year and outlines outlined in the RMF and and feedback formulated our contributions and progress categorise them based on and raised to the Board. This ABOUT THIS against each of the four pillars the nature of the risk to our included approval of the Group’s REPORT of the TCFD recommendations. operations. The physical ESG Strategy. HEALTH AND impacts of climate change, WELLNESS including flooding, or damage On a day-to-day basis, AIA’s Governance of to facilities have immediate ESG team works closely with GREEN operational impacts and are the Group Investment function, OPERATIONS Climate Change treated as operational risks. working to develop consistent Long-term challenges, such and enhanced approaches to SUSTAINABLE Risks and as emerging ESG issues, may addressing climate risk issues INVESTMENT be discussed by the BRC, with the Group’s analysts. The PEOPLE AND Impacts ORC, FRC, or the Group’s ESG team also coordinates with the CULTURE Committee. Group’s Risk function on ESG matters, including on climate EFFECTIVE Board-level Governance change, both at its Group office GOVERNANCE Management-level and local business units. At AIA, the Board retains Governance OUR TCFD REPORT ultimate responsibility for the oversight of the Group’s risk The Group’s ESG Committee Governance of Strategy Climate Change management activities and provides effective governance Risks and Impacts monitors material group-wide for integrating and addressing The WHO raises climate risks, whether they are common ESG issues, including climate change as the greatest threat Strategy to our industry or unique to change, within our business. to human health this century. Physical Climate the Group and its businesses. The ESG Committee is Our strategic approach to Risks The Board is supported by the comprised of members of the addressing both the risks and BRC, comprised of select Board Group Executive Committee, opportunities from climate Transition Climate-related members and chaired by an with representation from an change is outlined below. Risks Independent Non-executive Independent Non-executive Director, as well as the ORC Director of the Board. The Climate change risk forms Risk Management and FRC which are comprised Committee meets on at least part of our overall insurance Metrics and of our senior executives. AIA’s a quarterly basis and plays risk profile through its role in Targets RMF ensures that we have the an integral role in overseeing increasing the frequency and capabilities and processes the Company’s ESG Strategy, intensity of certain diseases, FEEDBACK in place to identify, quantify, policies and disclosure, and the health and mortality underwrite and manage and including reporting to the Board impacts resulting from natural GRI AND HKSE report risk. The Board is on a biannual basis. disasters. We assess the overall GUIDE CONTENT INDEX responsible for reviewing this level of insurance risk by taking framework to ensure that it is The ESG Committee also into consideration a range of sufficiently effective given the considers ESG research, diverse risk factors across the Group’s business environment feedback raised by key many categories in our product and context. stakeholders including range. This diversity of risk
PAGE 81 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 OUR TCFD REPORT
combined with our reinsurance not impact AIA in the same increased between 8.9 and 15 2020 ESG programme and broad immediate manner as the per cent for different strains AT-A-GLANCE geographic footprint helps us property and casualty sector. of the virus16. Through our to distribute risk and provide Instead, AIA is more likely to be health insurance products, AIA CHAIRMAN’S protection against登革熱（全球） the impacts impacted by these challenges offers cover against dengue STATEMENT of short-term climate change埃及伊蚊 over the long-term. in markets such as Singapore effects. 白紋伊蚊 where this is a growing concern. STATEMENT FROM 15 GROUP CHIEF Through our insurance and EXECUTIVE AND investments solutions AIA plays PRESIDENT Physical Climate an important role in helping Transition 10 communities adapt and achieve ABOUT THIS Risks resilience against the health Climate-related REPORT impacts of inclement weather HEALTH AND The physical5 risks of climate and climate-related diseases. Risks WELLNESS change can be far-reaching and affect the quality of life Rising temperatures and Transition risks posed by GREEN for communities0 across the increased precipitation are climate change include OPERATIONS countries where we operate. likely to result in a greater increased regulation and 傳播能力變化（%） Research shows that storm prevalence of vector-borne related financial obligations SUSTAINABLE INVESTMENT surge, drought,-5 and rising and respiratory illnesses, heart such as the imposition of sea levels are likely to pose disease, and increases in heat- carbon taxes, increased PEOPLE AND significant disruptions to related morbidity and mortality. disclosure, and more stringent CULTURE communities across the region For example, dengue fever environmental risk management over the long-term,1950 affecting1960 1970is a climate-related1980 disease1990 2000that affect2010 both our business2020 EFFECTIVE economic output and economic and Aedes傳播細菌（全球） mosquitoes are its and those of the companies GOVERNANCE productivity. As a life and health vector. Since 1950, vectorial that we invest in. Such risks insurer, the physical impacts capacity, which is the potential are likely to present more short OUR TCFD REPORT of climate change posed do for disease transmission, has term impacts to companies within our investment portfolio. Governance of Climate Change Risks and Impacts DENGUE (GLOBAL): 16 Strategy AEDES AEGYPTI AEDES ALBOPICTUS Physical Climate 15 Risks Transition Climate-related 10 Risks Risk Management
5 Metrics and Targets
FEEDBACK 0 CHANGE IN VECTORIAL CAPACITY CHANGE IN VECTORIAL GRI AND HKSE GUIDE CONTENT INDEX -5
1950 1960 1970 1980 1990 2000 2010 2020 VIBRIO BACTERIA (GLOBAL)
16 The Lancet 2020 PAGE 82 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 OUR TCFD REPORT
2020 ESG AT-A-GLANCE Our Green Products CHAIRMAN’S AIA Company (Trustee) STATEMENT Limited has long understood STATEMENT FROM the importance of positive GROUP CHIEF environmental stewardship in EXECUTIVE AND generating financial return, and PRESIDENT options that take into account both environmental ratings ABOUT THIS REPORT and financial performance of companies are available to our HEALTH AND MPF customers. WELLNESS Responding to environmental In select markets, as part of our GREEN unit linked investment products, challenges OPERATIONS our customers are also able to choose options associated Communities in Australia have experienced an increase in extreme SUSTAINABLE INVESTMENT with renewable energy and/or weather events and the 2019-2020 bushfire season was significantly healthcare. worse than previous years17. More than 33 people lost their lives, at least 11 million hectares of bush, forest and parks burned, and an estimated PEOPLE AND CULTURE 3 billion animals were killed or displaced by the fires18. EFFECTIVE AIA Australia supported affected customers with immediate, short-term GOVERNANCE and long-term support. We provided tailored support to help customers in bushfire areas to meet their immediate needs, including accessing OUR TCFD REPORT support services, accommodation, applying for government disaster grants, accessing financial counselling and mental health support. Governance of Climate Change Life insurance policyholders impacted by the bushfires, including Risks and Impacts those involved in fighting the fires, could apply for a premium waiver for all benefits for six months. To reduce the stress on customers, AIA Strategy also replaced lost policy documents without added cost. To alleviate a Physical Climate distressing situation, we expedited and prioritised decisions on claims Risks for people in bushfire-affected regions to ensure people received timely support. Transition Climate-related Devastating natural disasters can be traumatic, and many people Risks may struggle with mental health later. AIA’s rehabilitation team also Risk Management developed new disaster recovery components for our well-being programmes tailored to those impacted by the bushfires. Metrics and Targets
FEEDBACK
GRI AND HKSE GUIDE CONTENT INDEX
17 Australia’s 2019-2020 Bushfires: The Wildlife Toll, World Wide Fund for Nature 18 Australia’s fires “killed or harmed three billion animals.” BBC News PAGE 83 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 OUR TCFD REPORT
factors primarily impact the should be meaningfully Risk health and well-being of people conducted and has actively across our markets and thus are contributed to consultations on Management viewed as insurance risks given the topic with our regulators. the impact they potentially Climate change pose. The above examples of scenarios and our ESG-related risks are managed II. Climate impacts and by our risk teams and are insurance operations strategies within our discussed by the BRC, executive investment portfolio 2020 ESG risk committees, or the ESG AT-A-GLANCE I. Identifying and assessing Committee as appropriate. Increasing transitional and climate risks physical risks could affect CHAIRMAN’S Climate change impacts are companies in our investment STATEMENT AIA’s risk governance discussed within the Group’s portfolio, with research framework is built on the ESG team, and collaboratively indicating far-reaching impacts STATEMENT FROM GROUP CHIEF ‘Three Lines of Defence’ model with the Group Investment from scenarios with 1.5°C and EXECUTIVE AND which clearly defines roles and Risk functions. AIA 2°C increases in temperatures. PRESIDENT and responsibilities for the also regularly participates As discussed in the Sustainable management of risk between in industry discussions on Investment section of this ABOUT THIS Executive Management environmental topics and is Report, consideration of climate REPORT in the First Line, Risk and a member of the Hong Kong change, in addition to other ESG HEALTH AND Compliance in the Second Green Finance Association. factors, is mandated within our WELLNESS Line, and Internal Audit in the investment process. Third Line. The Group and AIA also regularly considers GREEN business unit risk teams place academic research on climate AIA continues to engage OPERATIONS reliance on and work closely change. In 2017, research with businesses on raising with their respective first line funded by the UK Medical awareness of these risk issues, SUSTAINABLE partners in ensuring ESG- Research Council outlined and encouraging them to INVESTMENT related risks are anticipated potential impacts to morbidity address these in a transparent PEOPLE AND and managed. It is important from climate change-related way, thereby contributing in CULTURE to note that all pertinent and temperature increases. The the transition to a low carbon material risk exposures are research presented two economy. We also monitor EFFECTIVE escalated for resolution to our scenarios; a business-as-usual investment opportunities across GOVERNANCE risk committees, regardless of carbon emission trajectory, our markets in the transition the ownership over any specific and those in adherence to the to a low carbon and climate OUR TCFD REPORT ESG issue. Paris Agreement. AIA continues resilient future, supporting our to consider such research communities to achieve their Governance of Climate Change As previously discussed, and looks forward to further environmental targets and Risks and Impacts longer term ESG issues such guidance from regulators on objectives. as pollution and lifestyle risk how such scenario analysis Strategy Physical Climate Risks
Transition Climate-related Risks
Risk Management
Metrics and Targets
FEEDBACK
GRI AND HKSE GUIDE CONTENT INDEX
PAGE 84 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 OUR TCFD REPORT
Climate Engagements
company of climate change and environmental risks, and 2020 ESG “4” where a company reported AT-A-GLANCE a robust process for managing climate issues. The scores CHAIRMAN’S were based on each company’s STATEMENT disclosure to the survey and response to environmental risks, STATEMENT FROM GROUP CHIEF and not actual emissions or EXECUTIVE AND environmental impact. PRESIDENT
With the majority of the Group’s ABOUT THIS investment portfolio allocated REPORT to sovereign bonds, this exercise covered the Group’s exposure HEALTH AND to both corporate bonds and WELLNESS equities. GREEN Additional due diligence was OPERATIONS conducted by the Group’s Regulators across Asia continue climate change across asset classes, ESG team and Investment SUSTAINABLE to raise awareness of climate from both a sectoral and regional function on select companies, INVESTMENT change, introducing disclosure perspective. in consideration of investment requirements in regard to exposure, sector and region. PEOPLE AND carbon and energy footprinting. CULTURE However, there remain gaps in Methodology understanding how such climate Investee companies completed a Results EFFECTIVE risks may impact a company’s questionnaire that formed the basis GOVERNANCE operations, the value of its assets for a subsequent scoring by the Leading Regions and profits. Group’s investment analysts. These The strongest overall climate OUR TCFD REPORT analysts used a scoring methodology risk disclosure and awareness AIA is devising ways to address developed according to the guidance was in Australia, with the market Governance of and mitigate the risk of stranded Climate Change provided by Transition Pathway noting the highest response rate Risks and Impacts assets in its portfolio. A Initiative (TPI), a global, asset- among companies surveyed. stranded asset may lose value owner led initiative which assesses After Australia, companies Strategy prematurely, either directly as a companies’ preparedness in across Singapore demonstrated result of climate impacts or as addressing physical and transitional a strong understanding and Physical Climate a result of the broader energy risks in the shift toward a low carbon preparedness in addressing Risks transition. economy. climate risk issues, followed by Transition Hong Kong. Climate-related As a responsible asset owner, we From the pool of companies Risks also continue to raise awareness assessed, more than 1,200 Large disparities remained of these issues with internal and companies were scored across 11 across South East Asia, with Risk Management external stakeholders regionally. markets: Hong Kong, Singapore, leading listed companies Starting in 2019 through to early Metrics and Mainland China, Malaysia, Indonesia, demonstrating a much stronger Targets 2020, AIA engaged with over the Philippines, Thailand, Australia, understanding of the impacts 1,400 companies in the Group’s Vietnam, South Korea and Taiwan of climate risk issues on their FEEDBACK investment portfolio to assess (China). These markets were operations, in comparison how they address climate change selected in consideration of the to small and medium-sized GRI AND HKSE risks, including their awareness Group’s investment exposure and enterprises (SMEs). This of climate impacts, and any GUIDE CONTENT considering the potential impact raises concerns on the level of INDEX initiatives to monitor and reduce posed by climate change to these preparedness among SMEs to their environmental footprint. locations. Companies were scored on assess and address the impacts Our goal was to provide insights a five point scale, where “0” indicated of climate change on their into the level of disclosure and no awareness by the investee business. preparedness in addressing
PAGE 85 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 OUR TCFD REPORT
2020 ESG AVERAGE SCORES BY SECTOR ACROSS AT-A-GLANCE THE 11 MARKETS SELECTED: CHAIRMAN’S STATEMENT
STATEMENT FROM GROUP CHIEF EXECUTIVE AND PRESIDENT
ABOUT THIS REPORT
HEALTH AND WELLNESS
GREEN OPERATIONS Financials Utilities Real Estate Industrials Oil and Gas SUSTAINABLE (score: 1.97) (score: 2.03) (score: 2.64) (score: 1.93) (score: 2.63) INVESTMENT
PEOPLE AND CULTURE
EFFECTIVE GOVERNANCE Companies in the financial due to stakeholder interest and AIA intends to build upon the services sector reported the growing scrutiny of the climate results of this analysis with OUR TCFD REPORT lowest levels of awareness, with performance of these sectors. The investee companies and seeks limited disclosure and integration real estate sector also demonstrated to devise a proposed action Governance of of climate risks in most markets. strong knowledge of climate risks, plan, through engagement and Climate Change This was surprising given the particularly in markets such as where determined by AIA to be Risks and Impacts growing interest in disclosure Singapore and Hong Kong, where appropriate, adjustment of our structures such as the TCFD and real estate companies were notable exposure based on these results. Strategy the potential losses to companies sustainability leaders. Through regulatory guidance Physical Climate in financial services from climate and international practice, AIA Risks change. Exceptions to this trend AIA also continues to recommend also aims to further assess and were Australian financials, driven that sustainability teams within continue to conduct scenario Transition by local stakeholder interest in companies engage with key analysis of its investment Climate-related climate change disclosure. functions such as investor relations portfolio to different warming Risks and finance, to educate stakeholders scenarios. Risk Management Other sectors, including the oil on the impact of ESG issues, while and gas sector, demonstrated integrating ESG considerations Metrics and a stronger understanding within the business. Targets of climate risk issues, likely FEEDBACK
GRI AND HKSE GUIDE CONTENT INDEX
PAGE 86 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 OUR TCFD REPORT
Metrics and Targets Energy and Emissions
Total GHG Emissions per Scope (in tonnes of CO2e) 2020 ESG AT-A-GLANCE C02e tonnes 2020 2019 2018 2017 Scope 119 2,167 3,640 4,149 4,935 CHAIRMAN’S STATEMENT Scope 220 38,029 45,263 43,016 45,519 Scope 321 2,354 10,846 8,596 7,388 STATEMENT FROM GROUP CHIEF Total GHG Emissions 42,550 59,749 55,761 57,842 EXECUTIVE AND PRESIDENT Total GHG Emissions Intensity per employee (scope 1, 2 and 3) 1.8 2.6 2.7 2.9 ABOUT THIS REPORT In 2020, the Group produced AIA will also continue to monitor Assured data HEALTH AND 42,550 tonnes of CO2e, or our environmental footprint, and WELLNESS 1.8 tonnes per employee. The implement energy efficiency Emissions and energy data decrease in our overall footprint measures, where applicable, from our Group Office, AIA GREEN this year was due to reduced throughout our business. Singapore, Hong Kong, OPERATIONS operations at our offices and Thailand, Mainland China and business travel due to COVID-19. The largest contributor to Malaysia in this Report were SUSTAINABLE our operational footprint is assured by an external auditor. INVESTMENT Total energy consumption the electricity we use in our Please refer to the Assurance PEOPLE AND across the Group was buildings, which contributes to Statement on page 105 of this CULTURE 71,651,432 kWh, amounting to our Scope 2 emission footprint Report for a further breakdown 3,062 kWh per person. of 38,029 tonnes. of our operations from buildings EFFECTIVE in scope of this data assurance GOVERNANCE AIA has committed to a 25 Other sources of emissions exercise. per cent emission reduction include those from our OUR TCFD REPORT target per person by 2030 with corporate vehicle fleet and Total greenhouse gas emissions 2017 as a base year. The target business travel. (Scope 1, 2, 3) from these Governance of Climate Change applies to Scope 1 and Scope 2 markets amounted to 18,128 Risks and Impacts emissions. AIA will continue to Please also refer to the tonnes of CO2e or 43 per cent report on our progress against Sustainable Investment section of our total emission footprint. Strategy environmental targets as of this Report for further detail Physical Climate employees across our business on how AIA carbon footprints its Total assured energy use from Risks units resume business travel investment portfolio. these markets amounted to and return to our office spaces. 31,774,937 kWh. Transition Climate-related Risks
Risk Management
Metrics and Targets
FEEDBACK
GRI AND HKSE GUIDE CONTENT INDEX
19 Emissions from the fuel burnt by our corporate vehicle fleet, private air travel, generators and corporate kitchens. Scope 1 emissions include all markets where AIA has operational control. 20 Emissions produced as a result of the electricity used across the markets and the Towngas used in Hong Kong. Scope 2 emissions include all AIA markets where AIA has operational control. 21 Emissions produced indirectly from commercial business travel by airplane. PAGE 87 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 OUR TCFD REPORT
Data calculation our travel agent. At our other 2020 ESG methodologies markets where this data is not AT-A-GLANCE available, such as AIA Malaysia, AIA calculates emissions AIA Singapore, and AIA CHAIRMAN’S according to the guidelines Thailand, we refer to the Carbon STATEMENT provided by the Environmental Neutral Calculator for Short Protection Department of the – Medium haul flights by the STATEMENT FROM GROUP CHIEF Hong Kong SAR Government. United Kingdom’s Department EXECUTIVE AND We identify emission factors for Environment, Food, and PRESIDENT on electricity consumption for Rural Affairs (DEFRA) emission each operating region via the factors. ABOUT THIS sustainability reports of utility REPORT companies, or the Greenhouse Emissions from any private air HEALTH AND Gas Protocol database and travel are calculated according WELLNESS the List of Emission Factors to the recommended practice of published by the Institute the International Air Transport GREEN for Global Environmental Association (IATA). AIA also OPERATIONS Strategies. refers to the Fifth Assessment Report from the International SUSTAINABLE AIA relies on third-party data Panel on Climate Change, INVESTMENT where this is available, with in reference to any Global PEOPLE AND business travel emissions data Warming Potential (GWP) CULTURE for Group Office and AIA Hong factors used. Kong provided directly by EFFECTIVE GOVERNANCE
OUR TCFD REPORT
Governance of Climate Change Risks and Impacts
Strategy
Physical Climate Risks
Transition Climate-related Risks
Risk Management
Metrics and Targets
FEEDBACK
GRI AND HKSE GUIDE CONTENT INDEX
PAGE 88 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 FEEDBACK
Feedback
Thank you for your interest in this Report. 2020 ESG AT-A-GLANCE Your feedback will help us to improve our overall ESG performance and disclosure. CHAIRMAN’S STATEMENT If you have any questions or feedback, please contact our ESG team at [email protected] or write to us at the address below: STATEMENT FROM GROUP CHIEF EXECUTIVE AND PRESIDENT Environmental, Social and Governance ABOUT THIS AIA Group Limited REPORT HEALTH AND 35/F AIA Central WELLNESS
1 Connaught Road Central GREEN OPERATIONS Hong Kong SUSTAINABLE INVESTMENT
PEOPLE AND CULTURE
EFFECTIVE GOVERNANCE
OUR TCFD REPORT
FEEDBACK
GRI AND HKSE GUIDE CONTENT INDEX
PAGE 89 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 GRI AND HKSE GUIDE CONTENT INDEX
Global Reporting Initiative and Hong Kong Stock Exchange Guide Content Index
This Report complies with the the guidelines of the GRI, and KPIs, not discussed in the main 2020 ESG comply or explain requirements to allow for easy navigation to body of the Report. AT-A-GLANCE of the Hong Kong Stock relevant sections of the Report. Exchange ESG Guide, and This Report also serves as CHAIRMAN’S the “Core” option of the GRI Additional data and information our 2020 communication STATEMENT Standard Guide published in is highlighted in this content regarding the progress of our 2018. These disclosures have index and commentary table implementation of the UN Global STATEMENT FROM GROUP CHIEF been set out in the content on page 99. This includes any Compact (UNGC) Ten Principles, EXECUTIVE AND index below in accordance with changes to methodology or which have been outlined below. PRESIDENT
ABOUT THIS GRI Standard HKSE ESG Disclosure Section Cross Reference, REPORT Disclosure Reporting Guide Page and additional information Reference HEALTH AND Including UNGC WELLNESS GRI 102-1 -- Name of organisation About this Report – Who We Are GREEN GRI 102-2 -- Activities, brands, products, and About this Report – Who We are OPERATIONS services SUSTAINABLE GRI 102-3 -- Location of headquarters About this Report – Who We are INVESTMENT Feedback on this Report PEOPLE AND GRI 102-4 -- Location of operations About this Report – Who We Are CULTURE
GRI 102-5 -- Nature of ownership and legal form About this Report – Who We Are EFFECTIVE GOVERNANCE GRI 102-6 -- Markets served About this Report – Who We Are OUR TCFD REPORT GRI 102-7 -- Scale of the organisation About this Report – Who We Are People and Culture – Our Workforce FEEDBACK At-a-glance Please also refer to the Group’s GRI AND HKSE Annual Results for the year ended 31 GUIDE CONTENT December 2020 for details on net sales INDEX and total capitalisation. GRI and HKSE Guide GRI 102-8 KPI B1.1 Information on employees and other People and Culture – Our Workforce Content Index workers At-a-glance GRI and HKSE Commentary Table GRI and HKSE Guide Commentary Table GRI 102-9 GD B5 Supply chain description Effective Governance – Effective Independent KPI B5.1 Risk Management and Responsible Practitioner’s KPI B5.2 Business Practices Limited Assurance KPI B5.3 GRI and HKSE Commentary Table Report KPI B5.4
GRI 102-10 -- Significant changes to the There have been no significant organisation and its supply chain changes to the organisation and its supply chain.
GRI 102-11 -- Report how the Precautionary Effective Governance – Effective Principle is applied Risk Management and Responsible Business Practices
GRI 102-12 -- External initiatives People and Culture Effective Governance – Promoting ESG Best Practice, ESG Rating and Index Inclusions
PAGE 90 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 GRI AND HKSE GUIDE CONTENT INDEX
GRI Standard HKSE ESG Disclosure Section Cross Reference, Disclosure Reporting Guide Page and additional information Including UNGC Reference
GRI 102-13 -- Membership of associations Effective Governance – Promoting ESG Best Practice, ESG Rating and Index Inclusions
GRI 102-14 Governance Statement from senior decision Statement from Group Chief Executive Structure 13 maker and President 2020 ESG AT-A-GLANCE GRI 102-16 -- Values, principles, standards and About this Report – Our Purpose norms of behaviour CHAIRMAN’S Effective Governance – Effective STATEMENT Risk Management and Responsible Business Practices STATEMENT FROM Please also refer to AIA’s Code of GROUP CHIEF Conduct EXECUTIVE AND PRESIDENT -- -- Membership of associations Effective Governance – Promoting ESG Best Practice, ESG Rating and Index ABOUT THIS Inclusions REPORT GRI 102-18 -- Governance structure of the About this Report HEALTH AND organisation Effective Governance – Board WELLNESS Governance, ESG Committee Please also refer to information on Our GREEN Leadership Team. OPERATIONS
-- Governance Key impacts, risks, and About This Report SUSTAINABLE Structure 13 opportunities INVESTMENT
GRI 102-40 Overall List of stakeholders engaged by the About this Report – Our Material Issues PEOPLE AND Approach organisation CULTURE Reporting Principles 14 EFFECTIVE GOVERNANCE GRI 102-41 -- Collective bargaining agreements Labour unions are present across a number of AIA’s business units, UNGC 3 OUR TCFD REPORT however we do not track the percentage of employees covered under these agreements. FEEDBACK
GRI 102-42 Overall Identifying and selecting About this Report – Our Material Issues GRI AND HKSE Approach stakeholders GUIDE CONTENT Reporting INDEX Principles 14 GRI and HKSE Guide GRI 102-43 Overall Approach to stakeholder About this Report – Our Material Issues Content Index Approach engagement Effective Governance – ESG Committee GRI and HKSE Guide Reporting The Group ESG Committee meets four Commentary Table Principles 14 times a year to discuss stakeholder Independent KPI B6.2 feedback, including determining Practitioner’s material ESG issues. Limited Assurance Feedback is reported to the Group Report ESG Committee through existing stakeholder channels and is not limited to the Report preparation process.
GRI 102-44 Overall Report any key topics and concerns About this Report – Our Material Issues Approach raised by stakeholders GRI and HKSE Commentary Table Reporting Principles 14 KPI B6.2
PAGE 91 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 GRI AND HKSE GUIDE CONTENT INDEX
GRI Standard HKSE ESG Disclosure Section Cross Reference, Disclosure Reporting Guide Page and additional information Including UNGC Reference
GRI 102-45 Reporting Entities included in the consolidated About this Report – Who We Are Boundary 15 financial statements The scope of this Report has been defined in the About This Report section. 2020 ESG GRI 102-46 -- Defining report content and topic About this Report – Our Material AT-A-GLANCE boundaries Issues, Our Approach to ESG Reporting CHAIRMAN’S GRI 102-47 Reporting List of material topics About this Report – Our Material Issues STATEMENT Principles 14
GRI 102-48 -- Restatements of information Sustainable Investment – Carbon STATEMENT FROM Footprinting Our Portfolio GROUP CHIEF EXECUTIVE AND PRESIDENT GRI 102-49 Reporting Changes in reporting There have been no changes to the Boundary 15 organisation’s reporting boundary ABOUT THIS GRI 102-50 -- Reporting period About this Report REPORT
GRI 102-51 -- Date of most recent Report AIA’s ESG Report 2019 was published HEALTH AND on 10 April 2019. WELLNESS
GRI 102-52 -- Reporting cycle AIA’s ESG Report is published annually. GREEN OPERATIONS GRI 102-53 -- Contact point for questions Feedback on this Report regarding the report SUSTAINABLE GRI 102-54 -- Claims of reporting in accordance About this Report – Our Approach to INVESTMENT with the GRI Standards ESG Reporting PEOPLE AND GRI 102-55 -- GRI Content Index GRI and HKSE Content Index CULTURE
GRI 102-56 Overall External Assurance PwC Assurance Statement EFFECTIVE Approach GOVERNANCE
OUR TCFD REPORT
FEEDBACK
GRI AND HKSE GUIDE CONTENT INDEX
GRI and HKSE Guide Content Index
GRI and HKSE Guide Commentary Table
Independent Practitioner’s Limited Assurance Report
PAGE 92 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 GRI AND HKSE GUIDE CONTENT INDEX
Material Topic HKSE ESG Disclosure Section Cross Reference Disclosure Reporting Including UNGC Guide Principles Reference
Management Approach
GRI 103-1 Governance Explanation of why topics are About This Report Structure 13 material and its boundary 2020 ESG AT-A-GLANCE GRI 103-2 Governance The management approach and its About This Report Structure 13 components for material topics CHAIRMAN’S GRI 103-3 Governance Evaluation of the management About This Report STATEMENT Structure 13 approach for material topics STATEMENT FROM Economic Performance GROUP CHIEF EXECUTIVE AND GRI 103-1, KPI B8.2 Discussion of management Effective Governance PRESIDENT 103-2, Governance approach and related policies 103-3 Structure 13 ABOUT THIS REPORT GRI 201-1 KPI B8.2 Direct Economic Value generated Health and Wellness and distributed Sustainable Investment HEALTH AND WELLNESS Please also refer to the Group’s Annual Results for the year ended 31 GREEN December 2020. OPERATIONS GRI 201-2 KPI A4.1 Financial implications and other Our TCFD Report – Strategy, Risk risks and opportunities due to Management SUSTAINABLE INVESTMENT climate change Green Operations Sustainable Investment PEOPLE AND CULTURE Please also refer to AIA’s Climate Change Statement. EFFECTIVE Indirect economic impacts GOVERNANCE
GRI 103-1, Governance Discussion of management Our TCFD Report — Governance of OUR TCFD REPORT 103-2, Structure 13 approach and related policies Climate Change Risks and Impacts 103-3 Sustainable Investment – ESG FEEDBACK GRI 203 Engagements UNGC 7 GRI AND HKSE UNGC 8 GUIDE CONTENT UNGC 9 INDEX
GRI 203-1 KPI B8.1 Infrastructure investments and Green Operations GRI and HKSE Guide Content Index services supported Sustainable Investment – Broadening Portfolio Inclusions GRI and HKSE Guide Commentary Table GRI 203-2 -- Significant indirect economic Health and Wellness impacts Sustainable Investment Independent Practitioner’s Limited Assurance Report
PAGE 93 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 GRI AND HKSE GUIDE CONTENT INDEX
Material Topic HKSE ESG Disclosure Section Cross Reference Disclosure Reporting Including UNGC Guide Principles Reference
Anti-corruption
GRI 103-1, GD B7 Discussion of management Effective Governance – Effective 103-2, approach and related policies Risk Management and Responsible 103-3 Business Practices 2020 ESG AT-A-GLANCE GRI 205-2 GD B7 Communication and training about Effective Governance – Effective CHAIRMAN’S UNGC 10 KPI B7.3 anti-corruption policies Risk Management and Responsible Business Practices STATEMENT Anti-corruption training as part of the onboarding process is provided to new STATEMENT FROM GROUP CHIEF joiners of the Company. EXECUTIVE AND The policy relating to anti-corruption is PRESIDENT provided to the directors. Please also refer to AIA’s Code of ABOUT THIS Conduct REPORT
UNGC 10 GD B7 Compliance with relevant laws and GRI and HKSE Commentary Table HEALTH AND regulations that have a significant WELLNESS impact on the issuer relating to bribery, extortion, fraud and GREEN money laundering OPERATIONS Energy SUSTAINABLE INVESTMENT GRI 103-1, GD A2 Discussion of management Green Operations – Reducing our 103-2, GD A3 approach and related policies Carbon Footprint 103-3 (environmental policies) PEOPLE AND Our TCFD Report CULTURE UNGC 7 Policies on minimising the UNGC 8 issuer’s significant impact on the UNGC 9 environment and natural resources EFFECTIVE GOVERNANCE GRI 302-1 KPI A2.1 Energy consumption within the Green Operations – Reducing our KPI A2.3 organisation Carbon Footprint OUR TCFD REPORT Energy intensity per employee Our TCFD Report – Metrics and Targets FEEDBACK Reduction of energy consumption GRI and HKSE Commentary Table
GRI 302-3 KPI A2.1 Energy intensity 2020 ESG At-a-glance GRI AND HKSE GUIDE CONTENT Our TCFD Report – Metrics and Targets INDEX GRI and HKSE Commentary Table GRI and HKSE Guide Green Operations – Reducing our Content Index Carbon Footprint GRI and HKSE Guide GRI 302-4 KPI A2.3 Reduction of energy consumption Our TCFD Report – Metrics and Targets Commentary Table Green Operations – Green Buildings, Reducing our Carbon Footprint Independent Practitioner’s GRI and HKSE Commentary Table Limited Assurance Report
PAGE 94 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 GRI AND HKSE GUIDE CONTENT INDEX
Material Topic HKSE ESG Disclosure Section Cross Reference Disclosure Reporting Including UNGC Guide Principles Reference
Emissions
GRI 103-1, GD A1 Discussion of management Our TCFD Report – Metrics and Targets 103-2, GD A2 approach and related policies GRI and HKSE Commentary Table 103-3 GD A3 (Environmental policies) 2020 ESG Green Operations AT-A-GLANCE UNGC 7 GD A4 UNGC 8 CHAIRMAN’S STATEMENT GRI 305-1, GD A1 Greenhouse gas (GHG) emissions Our TCFD Report – Metrics and Targets 305-2, KPI A1.1 (scope 1) GRI and HKSE Commentary Table STATEMENT FROM 305-3, KPI A1.2 GROUP CHIEF Greenhouse gas (GHG) emissions Green Operations – Reducing our 305-4, KPI A1.5 (scope 2) EXECUTIVE AND 305-5 Carbon Footprint PRESIDENT Other greenhouse gas (GHG) emissions (scope 3) ABOUT THIS Greenhouse gas (GHG) emissions REPORT intensity Reduction of greenhouse gas HEALTH AND (GHG) emissions WELLNESS
Environmental Management Initiatives GREEN OPERATIONS GRI 306-3 (a) KPI A1.3 Total hazardous waste produced GRI and HKSE Commentary Table (in tonnes) and, where SUSTAINABLE appropriate, intensity (e.g. per unit INVESTMENT of production volume, per facility) PEOPLE AND GRI 306-3 (a) KPI A1.4 Total non-hazardous waste GRI and HKSE Commentary Table CULTURE produced (in tonnes) and, where appropriate, intensity (e.g. per unit of production volume, per facility) EFFECTIVE GOVERNANCE GRI 103-1, KPI A1.6 Description of how hazardous GRI and HKSE Commentary Table 103-2, and non-hazardous wastes are OUR TCFD REPORT 103-3 handled, reduction initiatives and GRI 306-4 results achieved FEEDBACK GRI 306-5 GRI AND HKSE GRI 301-1 KPI A2.5 Total packaging material used for GRI and HKSE Commentary Table GUIDE CONTENT finished products (in tonnes) and, INDEX if applicable, with reference to per unit produced GRI and HKSE Guide Content Index Environmental Compliance GRI and HKSE Guide GRI 103-1, GD A1 Discussion of management Green Operations Commentary Table 103-2, approach and related policies Our TCFD Report – Metrics and Targets 103-3 (Environmental policies) Independent Practitioner’s UNGC 7 Limited Assurance UNGC 8 Report
GRI 307-1 GD A1 Non-compliance with GRI and HKSE Commentary Table UNGC 7 environmental laws and regulations
PAGE 95 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 GRI AND HKSE GUIDE CONTENT INDEX
Material Topic HKSE ESG Disclosure Section Cross Reference Disclosure Reporting Including UNGC Guide Principles Reference
Water Consumption
GRI 303-5 KPI A2.2 Water consumption in total and GRI and HKSE Commentary Table intensity 2020 ESG AT-A-GLANCE GRI 103-1, KPI A2.4 Description of whether there is GRI and HKSE Commentary Table 103-2, any issue in sourcing water that 103-3 is fit for purpose, water efficiency CHAIRMAN’S STATEMENT GRI 303-1 initiatives and results achieved
Employment STATEMENT FROM GROUP CHIEF EXECUTIVE AND GRI 103-1, GD B1 Employment related policies and People and Culture – Developing PRESIDENT 103-2, approaches our People, Diversity and Inclusion, 103-3 Compliance with relevant human Recognising and Rewarding Our People ABOUT THIS resources related laws and REPORT regulations that have a significant GRI and HKSE Commentary Table impact on the issuer HEALTH AND WELLNESS GRI 401-1 GD B1 New employee hires and employee People and Culture – A Risk-aware turnover Culture UNGC 6 KPI B1.2 GREEN GRI and HKSE Commentary Table OPERATIONS Occupational Health and Safety SUSTAINABLE -- GD B2 Information on policies and People and Culture – Recognising INVESTMENT compliance with relevant laws and and Rewarding our People, regulations relating to providing a SUPPLEMENT: Supporting Our PEOPLE AND safe working environment Employees During COVID-19 CULTURE GRI and HKSE Commentary Table EFFECTIVE GRI 401-9 KPI B2.1 Number and rate of work-related GRI and HKSE Commentary Table GOVERNANCE GRI 401-10 fatalities OUR TCFD REPORT -- KPI B2.2 Lost days due to work injury GRI and HKSE Commentary Table FEEDBACK GRI 103-2, KPI B2.3 Description of occupational health People and Culture – Recognising 103-3 (a-i) and safety measures adopted, and Rewarding Our People, how they are implemented and SUPPLEMENT: Supporting Our GRI AND HKSE monitored Employees During COVID-19 GUIDE CONTENT INDEX Training and Education GRI and HKSE Guide GRI 103-1, GD B3 Employment related policies People and Culture – Developing Our Content Index 103-2, and approaches on training and People GRI and HKSE Guide 103-3 development Commentary Table UNGC 6 KPI B3.2 The average training hours GRI and HKSE Commentary Table Independent GRI 404-1 completed per employee by Practitioner’s gender and employee category Limited Assurance Report GRI 404-3 -- Percentage of employees People and Culture – Recognising and receiving regular performance and Rewarding Our People career development reviews GRI and HKSE Commentary Table
PAGE 96 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 GRI AND HKSE GUIDE CONTENT INDEX
Material Topic HKSE ESG Disclosure Section Cross Reference Disclosure Reporting Including UNGC Guide Principles Reference
Diversity and Equal Opportunity
GRI 103-1, GD B1 Employment related policies and People and Culture – Diversity and 103-2, approaches related to inclusion Inclusion 103-3 and anti-discrimination 2020 ESG AT-A-GLANCE UNGC 6 KPI B1.1 Total workforce by gender, People and Culture – Our Workforce employment type, age group and At-a-glance CHAIRMAN’S GRI 102-8 STATEMENT geographical region GRI and HKSE Commentary Table
-- KPI B3.1 The percentage of employees GRI and HKSE Commentary Table STATEMENT FROM trained by gender and employee GROUP CHIEF EXECUTIVE AND category (e.g. senior management, PRESIDENT middle management)
Human Rights ABOUT THIS REPORT GRI 103-1, -- Businesses should uphold the Effective Governance – Effective 103-2, freedom of association and the Risk Management and Responsible HEALTH AND 103-3 effective recognition of the right to Business Practices WELLNESS GRI 102-41 collective bargaining People and Culture GREEN UNGC 3 Effective Governance OPERATIONS GRI and HKSE Commentary Table Please refer to our Supplier Code of SUSTAINABLE Conduct INVESTMENT
GRI 103-2 (c-i) GD B4 Businesses should uphold the GRI and HKSE Commentary Table PEOPLE AND CULTURE GRI 408-1 (c) KPI B4.1 effective abolition of child labour Please refer to our Supplier Code of Conduct UNGC 5 EFFECTIVE GOVERNANCE GRI 103-2 (c-i) GD B4 Businesses should uphold the Please refer to our Supplier Code of GRI 409-1 (c) KPI B4.1 elimination of all forms of forced Conduct and compulsory labour OUR TCFD REPORT UNGC 4 GRI and HKSE Commentary Table FEEDBACK Local Communities GRI AND HKSE GRI 103-2 (c-i) GD B8 Policies on community About this Report – Our ESG Strategy GUIDE CONTENT engagement to understand Health and Wellness – INDEX the needs of the communities Champion Financial Inclusion, where the issuer operates and SUPPLEMENT: Supporting Our GRI and HKSE Guide to ensure its activities take into Communities through COVID-19 Content Index consideration the communities’ interests GRI and HKSE Guide Commentary Table GRI 203-1(a) GD B8 Focus areas of community About this Report – Our ESG Strategy, UNGC 1 KPI B8.1 contribution Our Material Issues Independent Practitioner’s Health and Wellness – Champion Limited Assurance Financial Inclusion Report GRI 201-1(a-ii) KPI B8.2 Resources contributed to the focus About this Report area Health and Wellness – Delivering Better Health Outcomes, SUPPLEMENT: Supporting Our Communities through COVID-19
GRI FS14 -- Initiatives to improve access About this Report to financial services for Health and Wellness – Champion disadvantaged people Financial Inclusion
PAGE 97 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 GRI AND HKSE GUIDE CONTENT INDEX
Material Topic HKSE ESG Disclosure Section Cross Reference Disclosure Reporting Including UNGC Guide Principles Reference
Socioeconomic Compliance
GRI 103-1, GD A1, A2, A3 Policies related to compliance Effective Governance 103-2, GD B1, B2, B4 within all social and environmental People and Culture 103-3 areas, including human resources 2020 ESG AT-A-GLANCE GRI 419-1 GD B4, B2, B1 Significant fines and non- GRI and HKSE Commentary Table GD A1, A2, A3 monetary sanctions for non- CHAIRMAN’S compliance with laws and STATEMENT regulations in relation to social and economic areas STATEMENT FROM GROUP CHIEF Product Responsibility EXECUTIVE AND PRESIDENT GRI 103-1, -- Initiatives to enhance financial Health and Wellness – Champion 103-2, literacy by type of beneficiary Financial Inclusion ABOUT THIS 103-3 REPORT
GRI 103-1, GD B6 Policies relating to health and Effective Governance – Effective HEALTH AND 103-2, safety, advertising, labelling Risk Management and Responsible WELLNESS 103-3 and privacy matters relating to Business Practices GRI 103-2 (c-i) products and services provided People and Culture and methods of redress GREEN GRI 416-2 Please also refer to AIA’s Code of OPERATIONS GRI 417-2 Conduct GRI 417-3 GRI and HKSE Commentary Table SUSTAINABLE GRI 418-1 INVESTMENT GRI 419-1 PEOPLE AND GRI FS10, -- Percentage and number of Sustainable Investment – ESG CULTURE FS11 companies held in AIA’s portfolio Engagement with which AIA has interacted on Our TCFD Report – Risk Management EFFECTIVE environmental or social issues Effective Governance GOVERNANCE Percentage of assets subject Please also refer to the Group to positive and negative OUR TCFD REPORT environmental or social screening Responsible Investment Policy FEEDBACK
GRI AND HKSE GRI CRE 8 -- Type and number of sustainability Green Operations – Green Buildings GUIDE CONTENT certification, rating, and labelling INDEX schemes for new construction, management, occupation, and GRI and HKSE Guide redevelopment Content Index
Data Protection and Privacy GRI and HKSE Guide Commentary Table GRI 103-2 KPI B6.5 Description of consumer data Effective Governance – Effective GRI 103-3 (a-i) protection and privacy policies, Risk Management and Responsible Independent how they are implemented and Business Practices Practitioner’s monitored Limited Assurance Report GRI 418-1 KPI B6.5 Substantiated complaints Effective Governance concerning breaches of customer privacy and losses of customer data
PAGE 98 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 GRI AND HKSE GUIDE CONTENT INDEX
Global Reporting Initiative and Hong Kong Stock Exchange Guide Commentary Table
2020 ESG AT-A-GLANCE The GRI and Hong Kong table below. The information CHAIRMAN’S Stock Exchange ESG Guide provided in the following tables STATEMENT disclosures that are not covered covers the twelve-month period in the above sections of the ended 31 December 2020. STATEMENT FROM Report are in the commentary GROUP CHIEF EXECUTIVE AND PRESIDENT Material Topic HKSE ESG Disclosure Supplementary Information Disclosure Reporting ABOUT THIS REPORT Including UNGC Guide Principles Reference HEALTH AND WELLNESS Energy
GRI 302-1 KPI A2.1 Energy consumption within the • Direct energy consumption at AIA: GREEN OPERATIONS 302-3 KPI A3.1 organisation 8,363,417 kWh 302-4 Energy intensity per full-time • Indirect energy consumption at AIA: employees 63,288,015 kWh SUSTAINABLE INVESTMENT • Total energy use at AIA: 71,651,432 kWh PEOPLE AND CULTURE • Energy intensity per employee: 3062.4 kWh EFFECTIVE • Direct energy consumption at Group GOVERNANCE Office, Hong Kong, Singapore, Mainland China, Thailand and OUR TCFD REPORT Malaysia: 2,969,886 kWh
• Indirect energy consumption at FEEDBACK Group Office, Hong Kong, Singapore, Mainland China, Thailand and GRI AND HKSE Malaysia : 28,805,051 kWh GRI AND HKSE GUIDE CONTENT • Total energy use at Group Office, INDEX Hong Kong, Singapore, Thailand, Mainland China and Malaysia: GRI and HKSE Guide 31,774,937 kWh Content Index
GRI and HKSE Guide Commentary Table
Independent Practitioner’s Limited Assurance Report
PAGE 99 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 GRI AND HKSE GUIDE CONTENT INDEX
Material Topic HKSE ESG Disclosure Supplementary Information Disclosure Reporting Including UNGC Guide Principles Reference
Emissions
GRI 305-1, GD A1 Greenhouse gas (GHG) emissions • Total Scope 1 emissions for the 305-2, KPI A1.1 (scope 1) Group: 2,167 tonnes of CO2e 305-3, 2020 ESG KPI A1.2 Greenhouse gas (GHG) emissions • Total Scope 2 emissions for the AT-A-GLANCE 305-4, KPI A1.5 (scope 2) 305-5 Group: 38,029 tonnes of CO2e Other greenhouse gas (GHG) • Total Scope 3 emissions for the CHAIRMAN’S emissions (scope 3) Group’s business units, excluding STATEMENT Greenhouse gas (GHG) emissions Myanmar and Vietnam: 2,354 tonnes intensity of CO2e. AIA will gradually expand the STATEMENT FROM scope of the data. GROUP CHIEF Reduction of greenhouse gas EXECUTIVE AND (GHG) emissions • Total emissions for the Group: 42,550 PRESIDENT tonnes of CO2e • Total emissions per employee: 1.8 ABOUT THIS tonnes of CO2e REPORT
• Total scope 1 emissions for Group HEALTH AND Office, Hong Kong, Singapore, WELLNESS Thailand, Mainland China and Malaysia: 781 tonnes of CO2e GREEN • Total Scope 2 emissions for Group OPERATIONS Office, Hong Kong, Singapore, Thailand, Mainland China and SUSTAINABLE Malaysia: 16,412 tonnes of CO2e INVESTMENT • Total Scope 3 emissions for Group Office, Hong Kong, Singapore, PEOPLE AND Thailand and Malaysia: 935 tonnes of CULTURE CO2e Total emissions for Group Office, EFFECTIVE • GOVERNANCE Hong Kong, Singapore, Thailand, Mainland China and Malaysia: 18,128 tonnes of CO2e OUR TCFD REPORT
FEEDBACK
GRI AND HKSE GUIDE CONTENT INDEX
GRI and HKSE Guide Content Index
GRI and HKSE Guide Commentary Table
Independent Practitioner’s Limited Assurance Report
PAGE 100 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 GRI AND HKSE GUIDE CONTENT INDEX
Material Topic HKSE ESG Disclosure Supplementary Information Disclosure Reporting Including UNGC Guide Principles Reference
Environmental Management Initiatives
GRI 306-3 (a) KPI A1.3 Total hazardous waste produced As a life insurer, our policies do not (in tonnes) and, where require the input of any hazardous appropriate, intensity (e.g. per unit materials, nor do we produce any 2020 ESG AT-A-GLANCE of production volume, per facility) hazardous substances. As a result, the production of hazardous waste is not applicable to our operations. CHAIRMAN’S STATEMENT GRI 306-3 (a) KPI A1.4 Total non-hazardous waste AIA’s waste consists of food and office STATEMENT FROM produced (in tonnes) and, where products such as paper, which does not GROUP CHIEF appropriate, intensity (e.g. per unit have a material impact at this time. EXECUTIVE AND of production volume, per facility) Going forward AIA will consider the need PRESIDENT to measure our waste footprint. ABOUT THIS GRI 103-1, KPI A1.6 Description of how hazardous Non-hazardous waste is sorted and REPORT 103-2, and non-hazardous wastes are recycled at select business units. 103-3 handled, reduction initiatives and We continue to raise awareness on the HEALTH AND GRI 306-4 results achieved importance of waste reduction through WELLNESS GRI 306-5 signage and internal communications. As a life insurer the production of GREEN hazardous waste is not applicable to our OPERATIONS operations. SUSTAINABLE See A1.3 and A1.4 as to why AIA does not INVESTMENT measure hazardous and non-hazardous waste respectively at this time. PEOPLE AND GRI 303-5 KPI A2.2 Water consumption in total and In 2020, 10 of AIA’s business units CULTURE intensity consumed 211,525 tonnes of water, amounting to 11.8 tonnes of water per EFFECTIVE employee. GOVERNANCE AIA is unable to report on water usage in buildings where water meters are shared OUR TCFD REPORT with other building tenants, or where it is included in total rental costs. FEEDBACK
GRI 302-1 KPI A2.3 Reduction of energy consumption No specific targets were set for energy GRI AND HKSE efficiency, as AIA’s greenhouse gas GUIDE CONTENT emissions targets inherently reflect an INDEX improvement in energy efficiency. GRI and HKSE Guide GRI 103-1, KPI A2.4 Description of whether there is As a life insurer, we operate Content Index 103-2, any issue in sourcing water that predominantly in office spaces, and thus 103-3 is fit for purpose, water efficiency issues of water consumption and water GRI and HKSE Guide GRI 303-1 target(s) set and steps taken to efficiency are not material to AIA. Commentary Table achieve them Independent GRI 301-1 KPI A2.5 Total packaging material used for Packaging material is not applicable Practitioner’s finished products (in tonnes) and, to the nature of our operations as a life Limited Assurance if applicable, with reference to per insurer. Report unit produced
PAGE 101 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 GRI AND HKSE GUIDE CONTENT INDEX
Material Topic HKSE ESG Disclosure Supplementary Information Disclosure Reporting Including UNGC Guide Principles Reference
Compliance with ESG Regulation
GRI 307-1 GD A1, Monetary value of significant fines There were no significant fines or non- UNGC 2 GD B1, and total number of non-monetary monetary sanctions for non-compliance GD B2, sanctions for non-compliance with laws and regulations during the 2020 ESG AT-A-GLANCE UNGC 7 GD B4, with laws and regulations related reporting period. GD B6, to the HKSE ESG Subject Areas of There are no newly applicable or GD B7 Emissions, Employment, Health CHAIRMAN’S developing laws or regulations related STATEMENT and Safety, Labour Standards, to ESG areas that have had a significant Product Responsibility and Anti- impact on our business. Corruption STATEMENT FROM GROUP CHIEF Employment EXECUTIVE AND PRESIDENT GRI 103-1, GD B1 Employment related policies and Working hours are determined by AIA’s 103-2, approaches toward working hours business units, taking into account any ABOUT THIS 103-3 and rest periods local legislation governing working hours REPORT and rest periods in the jurisdictions where we operate. HEALTH AND As discussed in the People and Culture WELLNESS section of the report, AIA also offers flexible working options at select GREEN business units. OPERATIONS
Human Rights SUSTAINABLE INVESTMENT GRI 408 B4.1 Policies in place to prevent child Child and forced labour are not ESG GRI 409 B4.2 and forced labour issues that are material to our day to day operations in the financial services PEOPLE AND UNGC 5 Description of steps taken to CULTURE eliminate such practices when industry, where we require highly skilled discovered and technical services. EFFECTIVE AIA prohibits the use of child labour GOVERNANCE within our supply chain, as outlined by our Supplier Code of Conduct. For further details please refer to our Supplier Code OUR TCFD REPORT of Conduct. FEEDBACK Occupational Health and Safety GRI AND HKSE GRI 403-9 KPI B2.1 Number and rate of work-related This disclosure is immaterial to the GUIDE CONTENT GRI 403-10 fatalities nature of operations for life and health INDEX insurers. Our employees are not typically exposed GRI and HKSE Guide to high risk activities that may cause any Content Index physical harm on a day to day basis. GRI and HKSE Guide Please refer to the People and Culture Commentary Table section of this Report for details of our initiatives to foster a healthy and safe Independent workplace. Practitioner’s Limited Assurance -- KPI B2.2 Lost days due to work injury Our employees are not typically exposed Report to high risk activities that may cause any physical harm and lost workdays. This is immaterial to the nature of operations at life and health insurers. Please refer to People and Culture of this Report for details of our initiatives to foster a healthy and safe workplace.
PAGE 102 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 GRI AND HKSE GUIDE CONTENT INDEX
Material Topic HKSE ESG Disclosure Supplementary Information Disclosure Reporting Including UNGC Guide Principles Reference
Supply Chain Management
-- KPI B5.1 Number of suppliers by AIA continues to encourage geographical region improvements in environmental performance while prioritising vendors 2020 ESG AT-A-GLANCE and business partners who exemplify good ESG practices. AIA does not report on the number of suppliers by CHAIRMAN’S geographical region at this time, but will STATEMENT continue assess feasibility of reporting this information going forward. STATEMENT FROM GROUP CHIEF GRI 102-9 KPI B5.2 Description of practices relating AIA monitors and engages with suppliers, EXECUTIVE AND to engaging suppliers, number of conducting risk assessments, where PRESIDENT suppliers where the practices are applicable, such as on information being implemented, and how they security risk. ABOUT THIS are implemented and monitored REPORT
GRI 102-9 KPI B5.3 Description of practices used to The supply chain management and HEALTH AND identify environmental and social monitoring system, and the Supplier WELLNESS risks along the supply chain, and Code of Conduct, which contains an how they are implemented and overview of the monitoring and review monitored process to identify environmental GREEN OPERATIONS and social risks are described under Effective Governance — Effective Risk Management and Responsible Business SUSTAINABLE Practices. INVESTMENT
GRI 103-2 KPI B5.4 Description of practices used The Group’s internal Environmental PEOPLE AND to promote environmentally Procedures provide guidance on CULTURE preferable products and services sustainable sourcing. Under the Supplier when selecting suppliers, and Code of Conduct, AIA may choose to EFFECTIVE how they are implemented and enquire about any ESG related practices GOVERNANCE monitored or policies during the supplier registration process, and or embed specific ESG related provisions within contract terms OUR TCFD REPORT and conditions. FEEDBACK To monitor suppliers’ performance, AIA may also conduct its own due diligence, including audits or investigations in GRI AND HKSE relation to possible breaches of law, GUIDE CONTENT regulation, or company policy as it deems INDEX appropriate. GRI and HKSE Guide Content Index
GRI and HKSE Guide Commentary Table
Independent Practitioner’s Limited Assurance Report
PAGE 103 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 GRI AND HKSE GUIDE CONTENT INDEX
Material Topic HKSE ESG Disclosure Supplementary Information Disclosure Reporting Including UNGC Guide Principles Reference
Diversity and Equal Opportunity
GRI 102 KPI B1.1 Total workforce employment type AIA will assess the feasibility of collecting GRI 405 and disclosing the breakdown of employees by employment and contract 2020 ESG AT-A-GLANCE type.
GRI 401 KPI B1.2 Employee turnover by The employee turnover by local markets CHAIRMAN’S geographical region is not disclosed due to sensitivity. STATEMENT
-- KPI B3.1 The percentage of employees AIA will assess the feasibility of collecting STATEMENT FROM trained by gender and employee and disclosing this information. GROUP CHIEF category (e.g. senior management, EXECUTIVE AND middle management) PRESIDENT
UNGC 6 KPI B3.2 The average training hours Average Training Hours ABOUT THIS GRI 404-1 completed per employee by By Gender22 REPORT gender and employee category Female: 12.4 hours Male: 11.9 hours HEALTH AND WELLNESS By Employee Level Junior staff :12 hours Middle management: 13.7 hours GREEN Senior management: 27.3 hours OPERATIONS
Product Responsibility SUSTAINABLE INVESTMENT -- KPI B6.1 Percentage of total products sold This is not applicable as our products are or shipped subject to recalls for intangible and not subject to any recall PEOPLE AND safety and health reasons procedures. CULTURE GRI 102-43 KPI B6.2 Number of products and service- AIA is currently assessing the feasibility GRI 102-44 related complaints received and of collecting and disclosing such EFFECTIVE GOVERNANCE GRI 418-1 how they are dealt with information. OUR TCFD REPORT -- KPI B6.3 Description of practices relating AIA is currently assessing the feasibility to observing and protecting of collecting and disclosing such intellectual property rights information. FEEDBACK
-- KPI B6.4 Description of quality assurance Effective Governance - Our Commitments GRI AND HKSE process and recall procedures to our Customers GUIDE CONTENT INDEX Recall procedures are not applicable to INDEX the nature of our operations. GRI and HKSE Guide Content Index
GRI and HKSE Guide Commentary Table
Independent Practitioner’s Limited Assurance Report
22 Training hours for employees of AIA Myanmar, Tata AIA Life, or transferred employees are not included. PAGE 104 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 GRI AND HKSE GUIDE CONTENT INDEX
Independent Practitioner’s Limited Assurance Report To the Board of Directors of AIA Group Limited
2020 ESG AT-A-GLANCE
CHAIRMAN’S STATEMENT
We have undertaken a limited Selective quantitative data • the operations of AIA STATEMENT FROM GROUP CHIEF assurance engagement was provided for six of the Malaysia conducted from its EXECUTIVE AND in respect of the selected Company’s locations and premises at AIA Menara (99, PRESIDENT sustainability information related operations and these Jalan Ampang, 50450, Kuala of AIA Group Limited (the are the only locations included Lumpur) and AIA Wisma ABOUT THIS “Company”) listed below under in the Identified Sustainability (89, Jalan Ampang, Kuala REPORT the ‘Identified Sustainability Information for the twelve- Lumpur); HEALTH AND Information’ section and month period from 1 January WELLNESS identified with a in the 2020 to 31 December 2020, • the operations of AIA China Company’s Environmental, namely: conducted from its premises GREEN Social and Governance (“ESG”) at One AIA Financial Center OPERATIONS Report that covers the twelve- • the Company’s Group Office and Two AIA Financial month period from 1 January operations in Hong Kong Center (No.89 Zone Gui SUSTAINABLE 2020 to 31 December 2020 conducted from its premises Cheng Street, Nanhai District INVESTMENT (“ESG Report 2020”). located at AIA Central (1 Foshan City); and Connaught Road, Central), PEOPLE AND CULTURE Identified Sustainability Hopewell Centre (183 • the operations of AIA Information Queens Road East, Wan Thailand conducted from EFFECTIVE Chai) and 625 King’s Road, its premises at AIA Thailand GOVERNANCE The Identified Sustainability North Point; Tower 1&2 (181 Surawongse Information for the twelve- Road, Bangkok). OUR TCFD REPORT month period from 1 January • the operations of AIA Hong 2020 to 31 December 2020 is Kong conducted from its Data relating to the activities FEEDBACK summarised below: premises located at AIA of the Company’s insurance Hong Kong Tower (734 agents has been excluded from GRI AND HKSE • Electricity usage (indirect King’s Road, Quarry Bay) and the selective quantitative data GUIDE CONTENT energy use) INDEX Kerry Building (683 Kings provided to us. • Energy consumption from Road, Quarry Bay); use of fossil fuels and gas GRI and HKSE Guide Content Index (direct energy use) • the operations of AIA • Total energy consumption GRI and HKSE Guide Singapore conducted • Scope 1 Greenhouse Gas Commentary Table from its premises at AIA (“GHG”) emissions (Note 1) Alexandra (371 Alexandra Independent • Scope 2 GHG emissions Practitioner’s Road), AIA Tampines (3 (Note 2) Limited Assurance Tampines Grande), AIA Report • Scope 3 GHG emissions Tower (1 Robinson Road), (Note 3) Telepark (5 Tampines • Total GHG emissions Central 6) and 1 Finlayson (Scope 1, 2, 3) Green; Note 1: Emissions produced directly from fossil fuel including petrol, diesel, Towngas, liquid petroleum gas and jet fuel. Note 2: Emissions produced indirectly from the consumption of electricity and Towngas. Note 3: Emissions produced indirectly from commercial business travel by airplane, except from AIA China.
PAGE 105 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 GRI AND HKSE GUIDE CONTENT INDEX
For the purposes of this information allows for different, 3000 (Revised), Assurance limited assurance report, the but acceptable, measures Engagements other than selected quantitative data is and measurement techniques Audits or Reviews of Historical defined above as the “Identified and can affect comparability Financial Information, and, Sustainability Information”. between entities. In addition, in respect of greenhouse GHG quantification is subject to gas emissions, International Our limited assurance report inherent uncertainty because Standard on Assurance is in respect of the twelve- of incomplete scientific Engagements 3410, Assurance 2020 ESG month period from 1 January knowledge used to determine Engagements on Greenhouse AT-A-GLANCE 2020 to 31 December 2020 emission factors and the values Gas Statements, issued by information for the Identified needed to combine emissions of the International Auditing and CHAIRMAN’S Sustainability Information of different gases. Assurance Standards Board. STATEMENT the locations mentioned above These standards require that only and we have not performed we plan and perform this STATEMENT FROM Our Independence and Quality GROUP CHIEF any procedures with respect to Control engagement to obtain limited EXECUTIVE AND earlier periods, other locations assurance about whether PRESIDENT or any other elements included We have complied with the the Identified Sustainability in the ESG Report 2020 and, independence and other Information is free from ABOUT THIS therefore, do not express any ethical requirements of the material misstatement. REPORT conclusion thereon. Code of Ethics for Professional HEALTH AND Accountants issued by the A limited assurance WELLNESS Criteria International Ethics Standards engagement involves Board for Accountants, which assessing the suitability in GREEN The criteria used by the is founded on fundamental the circumstances of the OPERATIONS Company to prepare the principles of integrity, Company’s use of the Criteria Identified Sustainability objectivity, professional as the basis for the preparation SUSTAINABLE Information is set out in the ESG competence and due care, of the Identified Sustainability INVESTMENT Report 2020 under the section confidentiality and professional Information, assessing the “OUR APPROACH TO ESG behaviour. risks of material misstatement PEOPLE AND CULTURE REPORTING”. of the Identified Sustainability Our firm applies International Information whether due to EFFECTIVE The Company’s Responsibility Standard on Quality Control fraud or error, responding GOVERNANCE for the Identified Sustainability 1 and accordingly maintains to the assessed risks as Information a comprehensive system necessary in the circumstances, OUR TCFD REPORT of quality control including and evaluating the overall The Company is responsible for documented policies and presentation of the Identified FEEDBACK the preparation of the Identified procedures regarding Sustainability Information. A Sustainability Information in compliance with ethical limited assurance engagement GRI AND HKSE accordance with the Criteria. requirements, professional is substantially less in scope GUIDE CONTENT INDEX This responsibility includes standards and applicable legal than a reasonable assurance the design, implementation and regulatory requirements. engagement in relation to both GRI and HKSE Guide and maintenance of internal the risk assessment procedures, Content Index controls relevant to the including an understanding Our Responsibility GRI and HKSE Guide preparation of the Identified of internal control, and the Commentary Table Sustainability Information Our responsibility is to express procedures performed in that is free from material a limited assurance conclusion response to the assessed risks. Independent Practitioner’s misstatement, whether due to on the Identified Sustainability Limited Assurance fraud or error. Information based on the The procedures we performed Report procedures we have performed were based on our professional Inherent Limitations and the evidence we have judgement and included obtained. We conducted our inquiries, observation of The absence of a significant limited assurance engagement processes performed, body of established practice in accordance with the inspection of documents, on which to draw to evaluate International Standard on analytical procedures, and measure non-financial Assurance Engagements evaluating the appropriateness
The maintenance and integrity of the AIA Group Limited website is the responsibility of the directors; the work carried out by the assurance provider does not involve consideration of these matters and, accordingly, the assurance provider accepts no responsibility for any differences between the Identified Sustainability Information of AIA Group Limited on which the assurance report was issued or the assurance report that was issued and the information presented on the website. PAGE 106 AIA GROUP LIMITED | Environmental, Social and Governance Report 2020 GRI AND HKSE GUIDE CONTENT INDEX
of quantification methods and Accordingly, we do not express reporting policies, and agreeing a reasonable assurance opinion or reconciling with underlying about whether the Company’s records. Identified Sustainability Information has been prepared, Given the circumstances of the in all material respects, in engagement, in performing the accordance with the Criteria. procedures listed above we: 2020 ESG Limited Assurance Conclusion AT-A-GLANCE • made inquiries of the persons responsible for the Based on the procedures CHAIRMAN’S Identified Sustainability we have performed and the STATEMENT Information; evidence we have obtained, nothing has come to our STATEMENT FROM GROUP CHIEF • understood the process for attention that causes us to EXECUTIVE AND collecting and reporting believe that the Company’s PRESIDENT the Identified Sustainability Identified Sustainability Information; Information for the twelve- ABOUT THIS month period from 1 January REPORT • performed limited 2020 to 31 December 2020 is substantive testing on HEALTH AND not prepared, in all material WELLNESS a selective basis of the respects, in accordance with Identified Sustainability the Criteria. GREEN Information to check that OPERATIONS data had been appropriately Our report has been prepared recorded, calculated and for and only for the Company to SUSTAINABLE reported; and include in the ESG report and INVESTMENT may not be suitable for another • considered the disclosure purpose. We do not assume PEOPLE AND CULTURE and presentation of the responsibility towards or accept Identified Sustainability liability to any other person for EFFECTIVE Information. the contents of this report. GOVERNANCE
The procedures performed in a OUR TCFD REPORT limited assurance engagement vary in nature and timing from, FEEDBACK and are less in extent than for, a reasonable assurance GRI AND HKSE engagement. Consequently, GUIDE CONTENT INDEX the level of assurance obtained in a limited assurance GRI and HKSE Guide engagement is substantially PricewaterhouseCoopers Content Index lower than the assurance that Certified Public Accountants GRI and HKSE Guide would have been obtained had Commentary Table we performed a reasonable Hong Kong assurance engagement. 12 March 2021 Independent Practitioner’s Limited Assurance Report
The maintenance and integrity of the AIA Group Limited website is the responsibility of the directors; the work carried out by the assurance provider does not involve consideration of these matters and, accordingly, the assurance provider accepts no responsibility for any differences between the Identified Sustainability Information of AIA Group Limited on which the assurance report was issued or the assurance report that was issued and the information presented on the website. PAGE 107