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Hong Kong, 13 March 2023 – AIA Group Limited (the “Company”, and together with its subsidiaries, “AIA” or the “Group”; stock code: 1299), the largest pan-Asian life and health insurer, has issued its 2022 Environmental, Social and Governance (ESG) report highlighting the measurable progress of its ESG Strategy.
Lee Yuan Siong, AIA Group Chief Executive and President, said, “As the leading provider of life and health insurance in Asia, AIA has a substantial opportunity and an important responsibility to address the critical societal and environmental challenges impacting our local communities. Our purpose-driven focus on ESG reflects our belief that healthier communities are inextricably linked to a healthier environment. I am proud of our ESG achievements over the past year, and we will continue to work with our stakeholders to help people in Asia live Healthier, Longer, Better Lives”.
AIA made progress across all five pillars of its ESG Strategy - Health and Wellness, Sustainable Investment, Sustainable Operations, People and Culture, and Effective Governance - in 2022. AIA also formalised its Climate and Net-Zero Steering Committee to support the transition to net-zero by 2050 and is working at pace to have near-term targets validated by the Science Based Targets initiative (SBTi) by the end of 2023.
Through the Health and Wellness pillar, we engage communities across Asia to improve their physical, mental, and environmental wellness. AIA is committed to championing financial inclusion and expanding access to quality care to produce a positive impact on society and enable better health outcomes. AIA provided financial protection to the holders of more than 41 million individual policies and more than 17 million participating group insurance scheme members, with US$16 billion of total benefits and claims in 2022. Through the AIA One Billion initiative, an ambition to engage one billion people across Asia to live Healthier, Longer, Better Lives by 2030, AIA has cumulatively engaged with 258 million people to date.
The Sustainable Investment pillar of AIA’s ESG Strategy aims to deliver long-term value by allocating capital to companies that commit to sustainable outcomes, investing for the future and lowering AIA’s exposure to the risk of stranded assets in a future low-carbon economy. In 2022, AIA invested US$6.3 billion and US$4.3 billion in Healthcare sector and ESG bonds, respectively. We launched the AIA Sustainable Multi-Thematic Fund in Singapore, which invests indirectly in companies whose business models and operational practices are aligned with targets defined by certain UN Sustainable Development Goals on a multi-thematic basis. The Company also implemented a proprietary ESG Rating Scorecard for directly managed fixed-income and equity asset classes in our general account assets.
Under the Sustainable Operations pillar, AIA aims to improve the environmental performance of the Company’s operations as well as incorporate ESG considerations into sourcing decisions. All of our recent real estate development and redevelopment projects meet or exceed industry-recognised green building standards. By the end of 2022, greenhouse gas emissions per employee were reduced by 23 per cent compared to the number in 2019.
For the People and Culture pillar, the Company empowers its people to succeed by ensuring equitable and fair processes for employment and progression in a diverse, inclusive, and supportive culture. In 2022, AIA became one of only five Hong Kong-listed companies to be included in the Bloomberg Gender Equality Index, and for the sixth consecutive year AIA was featured in the top quartile in Gallup’s global financial services and insurance industry benchmark.
The Effective Governance pillar ensures that AIA continues to operate to the highest standards of business practices and is the foundation on which AIA has built a responsible business. The Company was again named a top-rated performer in the industry and region by Sustainalytics for ESG and rated AA in MSCI ESG ratings.
Amita Chaudhury, AIA Group Head of Sustainability said, “AIA’s ESG Report 2022 outlines the acceleration of our ESG strategy and integration of ESG into all levels of the organisation. By taking action across our five pillars of Health and Wellness, Sustainable Investment, Sustainable Operations, People and Culture and Effective Governance, we believe that we are contributing meaningfully to the healthier and more sustainable development of our communities in Asia Pacific. This has never been more important given the region’s exposure to the wide-reaching effects of climate change and rising healthcare expenditure.”
AIA’s full ESG Report 2022 can be accessed here.