AIA announces net-zero greenhouse gas emissions goal, divest from coal mining businesses

With sustainability being one of the top priorities among businesses, AIA Group has plans to achieve net-zero greenhouse gas emissions by 2050. The company said its commitment to net-zero by 2050 will support the delivery of long-term sustainable value for customers, shareholders and 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," said Lee Yuan Siong, AIA Group chief executive and president.

In addition, AIA has also committed to the Science Based Targets initiative (SBTi), a global body enabling businesses to set emissions reduction targets in line with the latest climate science. It will be in line with the latest climate science necessary to meet the goals of the Paris Agreement, which limits global warming to well-below 2°C above pre-industrial levels and pursues efforts to limit warming to 1.5°C. These five-to-ten-year targets will be reviewed every five years.

AIA said it will integrate the SBTi commitment into its US$286 billion investment portfolio engagement processes, with the target that 100% of in-scope investee companies establish their own science based targets by 2040. Working closely with SBTi, AIA will set comprehensive targets for its operational emissions. The SBTi will also provide an independent assessment and validation of AIA’s targets.

“We know that our communities are exposed to the damaging effects of climate change. The United Nations Intergovernmental Panel on Climate Change has warned that extreme climate events will increase morbidity and mortality, particularly in Asia," Amita Chaudhury, head of sustainability, AIA Group.

She added, "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.”

Looking ahead, in the culmination of a multi-year exercise, the company has divested from its entire directly-managed listed equity and fixed income exposure to coal mining and coal-fired power businesses. It completed divestment in October 2021, seven years ahead of its original target. It will make no new investments in businesses directly involved in coal mining or generating electricity from coal.

"We believe that investing in companies with sound environmental, social and governance practices supports the delivery of sustainable outcomes and superior financial returns, enhancing our ability to meet our long-term financial commitments," the company added.

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