AIA Group Limited (the “Company”, and together with its subsidiaries, “AIA” or the “Group”; stock codes: 1299 (HKD counter) and 81299 (RMB counter)) has published its first Climate Transition Plan today.
AIA has also become the first pan-Asian life and health insurer to have its near-term science-based emissions reduction targets validated by the Science Based Targets initiative (SBTi), a global body enabling businesses to set ambitious emissions reduction targets in line with the latest climate science.
This is a significant step forward in AIA’s sustainability journey and follows the commitment already made in 2021 to achieve net-zero emissions by 2050.
Lee Yuan Siong, AIA Group Chief Executive and President, said, “As the largest pan-Asian life and health insurer, we have a responsibility to take actions to address climate change. Our first Climate Transition Plan sets out a clear implementation roadmap to achieve our near-term climate targets and integrate climate considerations into our core business, supporting our path towards net-zero emissions by 2050.”
AIA’s Climate Transition Plan outlines AIA’s near-term science-based targets emerging from its business operations and general account in-scope investment portfolio, alongside the plans for meeting these targets.
For Scope 1 and 2 direct operations, AIA has set an absolute emissions reduction target aligned to a 1.5°C pathway. AIA’s Scope 3 Category 15 (Investments) emissions account for over 95% of its in-scope SBTi emissions. These cover assets in AIA’s general account portfolio that are mandatorily in-scope under the SBTi’s financial sector science-based targets guidance. AIA has used two target-setting approaches for its in-scope investment portfolio to set the near-term targets.
To achieve these targets, several levers are available to AIA, including improving the energy efficiency of our buildings, transitioning our fleet to electric vehicles, procuring renewable energy, engaging with our investees, reinvesting our corporate bonds and exploring new investments in line with our SBTi targets.
AIA has an expansive geographical footprint across Asia Pacific, which is home to 60% of the world’s population. The region is an engine of global economic growth, with rapid development driving significant energy and consumption needs. Its size and scale make it an important part of global decarbonisation efforts. Therefore, rapid and effective energy transition is critical if Asia Pacific is to meet its growth and developmental goals without amplifying negative climate impacts.
Amita Chaudhury, AIA Group Head of Sustainability, said, “With the validation of our near-term science-based emissions reduction targets by the Science Based Targets initiative (SBTi) and the launch of our Climate Transition Plan, AIA has taken a significant step forward in advancing our climate action journey. The Climate Transition Plan shows AIA’s roadmap for contributing to a sustainable future for the region and delivering on our Purpose of helping people live Healthier, Longer, Better Lives.”
AIA’s first Climate Transition Plan can be accessed here.