Long-Term Commitment to ESG Investing

The concept of long-termism at AIA, a prominent life insurance company, transcends mere strategic direction; it is a profound reflection of the company's corporate cultureThis philosophy is intricately intertwined with the principles of ESG—standing for Environmental, Social, and Governance—forming the bedrock of AIA's commitment to sustainable developmentThis dedication to ESG principles reflects a broader, evolving landscape of corporate responsibility, where businesses are increasingly held to account not only for their financial performance but also for their impact on society and the environment.

AIA's commitment has been recently recognized, as the company received the prestigious "Exemplar of Responsibility Award" at the 2024 China Corporate Social Responsibility Rankings, organized by Caijing MagazineThis accolade serves as a testament to the tangible value of AIA's long-termism in practice and its exemplary performance in the ESG arena

This award is significant not only in enhancing the brand's reputation but also in solidifying its status as a leader in corporate social responsibility, a key consideration for investors and customers alike in today's conscientious marketplace.

Understanding AIA's approach to ESG through the lens of long-term reveals a nuanced perspective: "ESG is not about doing things for the sake of doing them; rather, it is driven by considerations of long-term growth and sustainability." This philosophy stands at the core of all decisions and actions undertaken by the organization, thus establishing a distinct ESG culture within the companyAIA recognizes that true sustainable development cannot be achieved overnight; it requires steadiness and foresight in planning and execution.

To fulfill ESG's long-term objectives, AIA believes that integrating these principles into the company's overarching strategic framework is essential

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The company's ESG framework is rooted in six strategic pillars, encompassing green financial products and services, low-carbon operations, sustainable investments, talent organization, effective governance, and community engagementUnlike many corporations that primarily emphasize the "E" in ESG, AIA uniquely highlights the "S" for Social impact, ensuring a well-rounded approach that addresses community needs and promotes social welfareThis balanced focus enables AIA to not only pursue profitability but also to foster social cohesion and environmental stewardship.

With a robust top-down design in place, the challenge of implementing these strategies effectively remainsAIA employs a distinctive collaborative mechanism that ensures alignment between its headquarters and regional branchesAt the corporate level, ESG endeavors are closely integrated with various functional departments, creating a powerful impetus for change

Concurrently, regional offices are empowered to initiate diverse and localized ESG activities, tailoring their efforts to resonate with specific community needsThis dual approach is overseen by an ESG Steering Committee, which is responsible for the overarching strategy, while dedicated personnel in both headquarters and local branches ensure that each ESG initiative is accurately executed and leads to measurable outcomes.

To demonstrate its commitment, AIA has launched a series of thematic projects called "AIA CAN," designed to engage stakeholders throughout the yearThese initiatives include appointing ESG ambassadors, conducting ESG training sessions, and incorporating ESG principles into employee and customer activitiesBy fostering active participation and awareness among stakeholders, AIA not only promotes its ESG philosophy but actively invites its employees, agents, and clients to embody these values in their daily lives

AIA underscores the belief that for the company to truly embody ESG principles, its stakeholders must genuinely embrace these values, thus cultivating a culture of long-term together.

AIA's philanthropic efforts further embody its long-term social responsibility strategyThe organization has developed a clear roadmap to ensure that its social initiatives are sustainably impactful, reinforcing both brand recognition and business growthThe philanthropic strategy aligns with national goals and priorities, demonstrating sensitivity to local contexts and supporting national policiesFor instance, AIA collaborates with educational institutions to nurture future talents, engages in financial solutions tailored for the elderly population, and contributes to rural revitalization projectsAdditionally, AIA's initiatives extend to supporting communities through disaster relief and poverty alleviation, addressing pressing needs with a focus on social responsibility.

On the investment front, AIA prioritizes sustainable investing as a critical component of its strategy

As part of the AIA Group, the company participates in global initiatives such as the Science Based Targets Initiative (SBTi) and commits to reducing carbon emissionsThe investment team at AIA incorporates ESG-related considerations at each phase—pre-investment, during investment, and post-investmentThis includes establishing a blacklist of prohibited investments and prioritizing ESG-compliant investment opportunities based on a structured scoring systemFurthermore, AIA integrates these ESG criteria into its investment trading systems and conducts ongoing evaluations of existing projects and their managing organizations, utilizing its status as a significant shareholder to influence investee companies to adopt their own SBTi targets.

With an unwavering commitment to long-term, it is evident that AIA is poised to continue its exploration and development in the realm of ESGThis journey reflects a broader understanding of how businesses can contribute positively to society while pursuing their own growth objectives