Lee Yuan Siong, AIA Group Chief Executive and President, said, “Our commitment to net-zero by 2050 will support the delivery of long-term sustainable value for our customers, our shareholders and our communities. AIA is wholly focused on Asia and, driven by our purpose of helping people live healthier, longer, better lives, we have a responsibility to help address climate change and contribute to sustainable and healthier development for Asia.”
HONG KONG SAR:
AIA Group Limited (“AIA) announces its commitment to achieve net-zero greenhouse gas (GHG) emissions by 2050.
AIA has also committed to the Science Based Targets initiative (SBTi), a global body enabling businesses to set ambitious emissions reduction targets in line with the latest climate science. In addition, AIA has completed the entire divestment of directly-managed listed equity and fixed income exposure to coal mining and coal-fired power businesses, seven years ahead of schedule.
Lee Yuan Siong, AIA Group Chief Executive and President, said, “Our commitment to net-zero by 2050 will support the delivery of long-term sustainable value for our customers, our shareholders and our communities. AIA is wholly focused on Asia and, driven by our purpose of helping people live healthier, longer, better lives, we have a responsibility to help address climate change and contribute to sustainable and healthier development for Asia.”
Commitment to the Science Based Targets initiative
Amita Chaudhury, AIA Group Head of Sustainability, said, ” AIA’s net zero commitment allows us to play an important role in reducing the risk that climate change poses to the health of communities in Asia and to deliver on our purpose.”
AIA’s Science Based Targets (SBT) will be in line with the latest climate science necessary to meet the goals of the Paris Agreement – limiting global warming to well-below 2°C above pre-industrial levels and pursuing efforts to limit warming to 1.5°C. These five-to-ten-year targets will be reviewed every five years.
“We will integrate the SBTi commitment into our US$286 billion investment portfolio(2) engagement processes, with the target that 100 per cent of in-scope investee companies establish their own SBT by 2040. Working closely with SBTi, we will set comprehensive targets for the Group’s operational emissions. The SBTi will also provide an independent assessment and validation of AIA’s targets,” said Chaudhury, .
Global industry ESG leadership through coal divestment
In the culmination of a multi-year exercise, the insurer has divested from its entire directly-managed listed equity and fixed income exposure to coal mining and coal-fired power businesses.
The insurer has completed this divestment in October 2021, seven years ahead of our original target. AIA will make no new investments in businesses directly involved in coal mining or generating electricity from coal.
The insurer believes in investing in companies with sound Environmental, Social and Governance (ESG) practices supports the delivery of sustainable outcomes and superior financial returns, enhancing our ability to meet our long-term financial commitments.
Strong corporate governance oversees new net-zero commitment
AIA’s operational emissions will be overseen by a new Climate and Net-Zero Steering Committee that reports directly to the group chief executive and president.
AIA’s Group Chief Investment Officer will have direct oversight of the integration of the Company’s net-zero commitment into its portfolio engagement process.
Progress against our ambitious climate related goals will be regularly reported to the Company’s Board of Directors.