Statement on Climate Change

At the United Nations Climate Change Conference in Paris in 2015, governments across the globe pledged to address the topic of climate change. A key outcome was the Paris Agreement, which aims to limit global warming to less than 2°C¹ and prevent the dangerous and potentially destructive effects of climate change. AIA welcomes and supports the Paris Agreement as a critically important initiative to safeguarding the well-being of people across the globe, and towards ensuring sustainable and inclusive growth.

 

The governments in all of our 18 markets have signed the Paris Agreement and developed emission reduction targets to be achieved by 2030. Around the world we have also seen the implementation of more stringent environmental legislation, commitments to greater use of renewable energy, as well as incentives for the development of energy-efficient and low carbon technology.

 

Against this constantly-evolving backdrop, it is essential that businesses understand the potential impacts on their operations and their role in driving meaningful change within their communities. This Statement outlines AIA’s support for the Paris Agreement and elaborates on the potential climate change implications to our operations.

An effective governance structure allows us to proactively manage external issues that impact our business.

 

AIA’s Board of Directors retains ultimate responsibility for oversight of the Group’s² risk management activities and monitors material Group-wide risks, whether they are risks relevant to the industry, or unique to the Group and our businesses.

 

Environment, Social, Governance (ESG) issues including climate change will be discussed, where material, by the Group’s ESG Committee, which includes representation from our Group Executive Committee. The ESG Committee has responsibility to provide further oversight on ESG-related strategies, policies and KPIs and to report regularly to the Group’s Board of Directors.

 

AIA’s Risk Management Framework also mandates the consistent application of our Risk Management Process across the Group, while our governance structures enable timely identification, assessment, escalation and treatment of risk issues.

 

Climate change impacts extend to the risks and opportunities that arise as our markets de-carbonise and impose new regulation. Implementation of carbon taxes, energy efficiency regulation, or pollution standards may negatively impact the profitability of particular businesses, and thereby investments in these sectors. At the same time, consumer demand and regulation may incentivise the development and advancement of new industry such as renewable energy, electrification and energy storage.

 

AIA integrates consideration of both climate change impacts and opportunities within our approach to responsible investment. Through our investments, we are able to commit resources to real estate projects that develop and acquire green buildings. This allows us to secure valuable income to address the savings and protection needs of our customers, while providing our markets with energy efficient buildings.

 

AIA also welcomes the growth of green finance as being essential to facilitating the transition to a greener economy and in achieving the 2°C target. We continue to explore opportunities for responsible investment and robust ESG screening practices throughout our investments.

Addressing climate change requires collective action by governments, businesses and individuals alike. Since 2015, AIA has taken the initiative to measure and monitor our environmental footprint across markets where we maintain operational control, reporting on our emissions and energy performance in our ESG Report.

 

As key to our support of the Paris Agreement, AIA will explore the development of both emission and energy targets for the year 2030.

This Statement will be reviewed annually or as required to ensure its relevance and effectiveness, including with respect to any charters or policies that AIA may choose to sign or adhere to. 

 

If you have questions on this document, please contact our ESG team at esg@aia.com.