AIA Group has announced the publication of its inaugural climate transition plan, marking a notable advancement in its commitment to sustainability.
Concurrently, AIA has also been recognised as 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 entity that assists businesses in setting robust emissions reduction targets consistent with current climate science.
This development follows AIA’s 2021 pledge to attain net-zero emissions by 2050. Lee Yuan Siong, AIA Group chief executive and president, commented on the company’s role in addressing climate change and highlighted the climate transition plan as a key component in their journey towards the 2050 net-zero target.
“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,” Lee said.
The company’s targets for Scope 1 and 2 direct operations align with a 1.5°C pathway, representing an absolute emissions reduction commitment. A significant focus is on Scope 3 Category 15 (Investments) emissions, which constitute over 95% of AIA’s in-scope emissions under the SBTi’s guidance.
These emissions are also linked to assets in AIA’s general account portfolio that are mandatorily included in the SBTi’s financial sector science-based targets. AIA has employed two distinct approaches to set near-term targets for this investment portfolio.
To meet these targets, AIA plans to leverage various strategies, including enhancing the energy efficiency of its buildings, transitioning to electric vehicle fleets, procuring renewable energy, engaging with investee companies, reinvesting corporate bonds, and exploring new investments aligned with its SBTi targets.
AIA’s significant presence in the Asia-Pacific region, home to 60% of the world’s population and a key driver of global economic growth, places it in a vital position to influence regional decarbonisation efforts, it stated. The company recognises that an effective energy transition is essential for the region to balance its developmental goals with the need to mitigate climate impacts.
“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 Group head of sustainability Amida Chaudhury said.
Elsewhere for the insurance group, AIA Singapore has also recently announced key leadership changes effective from late November and early December 2023.
What are your thoughts on this story? Please feel free to share your comments below.