ENVIRONMENTAL, SOCIAL AND GOVERNANCE - REPORT 2018 STOCK CODE : 1299 - AIA GROUP LIMITED
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environmental, soCial
anD governanCe
report 2018 stoCk CoDe : 1299
aia.com
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Contents
About this
Report
SUSTAINABILITY 03 STATEMENT FROM 04
AT A GLANCE GROUP CHIEF EXECUTIVE Doing
Business in the
right way
AND PRESIDENT THE RIGHT
PEOPLE
Contributing to
SECTION 1 06 SECTION 2 14 SECTION 3 24
our communities
About this Doing business The right operating
responsibly
report in the right way people FEEDBACK
WHO WE ARE 07 Effective risk management 16 Developing our leaders 26 GRI and HKEx
guide content
OUR APPROACH TO ESG 10 Responsible business practices 17 Fostering a culture Index
OUR APPROACH TO ESG REPORTING 12 Securing customer information 20 of people development 27
Customer engagement 23 Culture and engaging our people 29
Diversity and inclusion 30
recognising and rewarding
our people 32
employee health, wellness
and safety 32
embracing digital transformation 34
SECTION 4 35 SECTION 5 50 SECTION 6 59
Contributing to Operating FEEDBACK
our communities responsibly
Our products 36 Energy and emissions 51 SECTION 7 61
Continued innovation 44 Resource usage 56 Global
Sustainable investment 45 Sustainable infrastructure 57
reporting
Corporate social responsibility
and community wellness 47
Our green buildings 58
initiative and
hong kong
stock exchange
Guide Content
Index
02 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2018
2018
SUSTAINABILITY
About this
Report
AT A GLANCE Doing
Business in the
right way
THE RIGHT
PEOPLE
Protection GREEN BUILDINGS
Contributing to
our communities
Serve the holders of more than Two AIA Financial Centre in Nanhai, Foshan, China
33 million
achieves the highest rating of LEED Platinum certification
operating
responsibly
individual policies and over
16 million participating members of
group insurance schemes
FEEDBACK
GRI and HKEx
guide content
Investments in Index
Infrastructure Key ESG Key ESG
As at 31 December 2018, Ratings Index Inclusions
US$ 24 BILLION
Awarded an
ISS-oekom
Prime Rating
invested in infrastructure-related sectors such
as electricity, transportation and telecommunications
ENERGY Environmental Corporate
Performance Performance Governance
Total carbon emissions of AIA Group Ltd Board and Committees
4,117 kWh per employee composed almost entirely of
independent non-executive directors
Total energy use amounted to 55,761
tonnes
8 6 5 9 3 0 5 7
kWh
2.7 tonnes per AIA employee
Investments in Healthcare Community Care ESG Signatories
Over AIA is the first Hong Kong headquartered
US$ 2.4 BILLION US$ 5 MILLION
Asset Owner to join the Principles
for Responsible Investment
invested in the healthcare sector contributed to our communities
03 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2018
STATEMENT FROM About this
Report
GROUP CHIEF EXECUTIVE Doing
Business in the
right way
AND PRESIDENT THE RIGHT
PEOPLE
Contributing to
our communities
I am delighted to present the programmes and financial support
Company’s Environmental, Social that are often not available at the operating
and Governance (“ESG”) Report required scale. All of these factors responsibly
2018. At AIA we believe that mean that our communities are faced
insurance is intrinsically linked with a growing “protection gap” – the FEEDBACK
with the economic and social well- shortfall in insurance and savings
being of our communities and it required to protect against health
GRI and HKEx
is imperative that we continue to and mortality risk. guide content
act with integrity while innovating Index
solutions that help address This year we launched our new
challenges across the region. Our purpose-led brand promise –
sustainable future is based both “Healthier, Longer, Better Lives” –
on our ability to deliver real value which reflects what we stand for as a
to our customers and shareholders company. As the largest independent
while also making a meaningful publicly listed pan-Asian life
contribution to the communities that insurance group, we see it as our
we serve. mission to help address the health
and wellness challenges faced by
Rapid economic development has our communities. Our products
brought tremendous improvements provide a safety net to millions and
in standards of living in Asia. we continue to raise awareness
Nevertheless, the significant about the importance of making
progress made has not been without healthy choices to manage risks
its challenges. Growing affluence in associated with disease, particularly
the region has been accompanied through our flagship AIA Vitality
by an increasing prevalence of wellness programme.
lifestyle-related diseases. Industrial
growth has resulted in higher levels
of pollution. Advances in healthcare
also mean that people are living
longer, but ageing populations
require levels of social welfare
04 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2018
About this
Report
Doing
Business in the
right way
THE RIGHT
PEOPLE
Contributing to
our communities
operating
responsibly
FEEDBACK
GRI and HKEx
guide content
Index
This ESG Report has been structured of climate change impacts. AIA once again as a gender-inclusive
to demonstrate how we manage also became the first Hong Kong- company through our inclusion in the
our impact and address priority headquartered asset owner to join the Bloomberg Gender Equality Index.
sustainability issues. We have Principles for Responsible Investment
mapped our disclosure against the (PRI), a testament to our commitment In 2019, our Centennial year, AIA
United Nation’s 17 Sustainable to sustainable investment across our looks forward to continuing to
Development Goals, aligning our markets. play a vital role in creating a more
strategic commitments with these sustainable tomorrow as we help
global objectives and the Principles I am proud of the significant progress the people we serve live Healthier,
of the UN Global Compact. we have made in our journey toward Longer, Better Lives.
building a sustainable future. Our
ESG issues are rightly top of mind efforts in addressing material ESG
for our stakeholders. As one of issues and enhancing our disclosures
Asia’s leading companies, AIA has have earned commendations from
an important role to play in driving international research and rating
positive change. This year AIA agencies. In 2018 we received a
supported the recommendations of “Prime” rating from ISS – oekom,
the Task Force on Climate Related and have been included in the
Financial Disclosures (TCFD), a global FTSE4Good Index Series for a Ng Keng Hooi
initiative that seeks to generate second consecutive year. We were Group Chief Executive and President
greater awareness and consideration also pleased to be acknowledged 15 March 2019
05 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2018
SECTION 1
About this
Report
Doing
Business in the
right way
THE RIGHT
PEOPLE
Contributing to
our communities
ABOUT
operating
responsibly
FEEDBACK
GRI and HKEx
THIS
guide content
Index
REPORT
06 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2018
Total sum assured of over
OUR VISION is to be the
world’s pre-eminent life
insurance provider. US$1.58 trillion About this
Report
Serve the holders of more than
33
Doing
OUR PURPOSE is to play MILLION INDIVIDUAL Business in the
right way
a leadership role in driving policies THE RIGHT
economic and social development PEOPLE
across the region. And over Contributing to
16
our communities
Million
participating operating
responsibly
members of FEEDBACK
group insurance
schemes GRI and HKEx
guide content
Index
WHO WE ARE
The Company and its subsidiaries (collectively “AIA” or AIA Group Limited (the “Company”) is
the “Group”) comprise the largest independent publicly pleased to present its ESG Report 2018
listed pan-Asian life insurance group. AIA has a presence (the “Report”), which sets out in detail
in 18 markets in Asia-Pacific-wholly-owned, branches our ESG priorities and the commitments
and subsidiaries in Hong Kong, Thailand, Singapore, we are making toward our promise of
Malaysia, China, Korea, the Philippines, Australia, enabling Healthier, Longer, Better Lives
Indonesia, Taiwan, Vietnam, New Zealand, Macau, Brunei, across the Asia Pacific region.
Cambodia, a 97 per cent subsidiary in Sri Lanka, a 49 per
cent joint venture in India and a representative office in This Report describes how we address
Myanmar. material sustainability issues and
contains cross references to information
With a total sum assured of US$1.58 trillion as of in AIA’s Annual Report 2018.
31 December 2018, AIA serves the holders of more
than 33 million individual policies and over 16 million
participating members of group insurance schemes.
07 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2018
About this
Report
Doing
Business in the
right way
THE RIGHT
PEOPLE
Contributing to
our communities
operating
responsibly
FEEDBACK
WHERE WE MAKE A DIFFERENCE GRI and HKEx
guide content
Index
Deteriorating health associated with It is projected that more than
ACROSS ASIA
25%
lifestyle factors has resulted in an
increase of non-communicable PACIFIC, RAPID
diseases (“NCDs”), which account for
Economic growth
71%
of all deaths globally1.
of the population in Asia Pacific will
be over the age of 60 by 20502,
straining economic growth and
increasing demand for public services.
has seen reductions
in poverty and
improvements in
Air pollution contributes to the By 2050, urbanisation coupled with standards of living,
premature deaths of about the overall growth of the world’s yet this has not been
without its share
7 million 2.5 billion
population could add
of challenges.
people globally each year3.
more people to urban areas4.
The shortfall in resources to ensure protection against mortality
in the region is estimated to reach
US$ 73 trillion
by 20205.
These issues present our markets with
significant social and economic risks.
1
WHO 2018
2
UN 2016
3
WHO 2018
4
UN 2014
5
Our forecast is based on the 2014 mortality protection gap data of Swiss Re’s 2015 Mortality Protection Gap Report.
08 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2018
For 100 years, AIA has provided
protection to individuals and
families when they have needed
it most. As a market leader, AIA About this
Report
focuses on the sustainability
of our financial results, But we Doing
Business in the
also focus on helping to address right way
the challenges faced by our THE RIGHT
PEOPLE
markets. We believe that this
focus on sustainability is integral Contributing to
our communities
to our long-term growth and
the sustainable and inclusive operating
responsibly
development of our communities.
FEEDBACK
GRI and HKEx
guide content
Index
Given the array of ESG challenges across As the largest pan-Asian life insurer, we are well
Asia, we have chosen to focus on those that positioned to meet these challenges.
allow us to have the greatest impact and drive
meaningful change. OTHER MATERIAL TOPICS
AIA’s Environmental, Social and Governance AIA maintains a continuous dialogue with our
Committee (“ESG Committee”) oversees the stakeholder groups and considers industry and
development of ESG strategies and initiatives ESG specific research. These perspectives are
at the Company. The role of the ESG Committee incorporated within our materiality assessment
is discussed in detail in the ESG Governance process and are subject to further feedback
section of this Report. from our ESG Committee. Other material ESG
issues that impact our operations more broadly
After consultation with various stakeholders, are outlined in the table below and discussed in
the ESG Committee identified the following this Report.
five issues that will be central to our efforts to
operate in a sustainable way while supporting
our communities:
• The growing protection gap
• Lifestyle related disease
• Ageing populations
• Urbanisation
• Pollution
Workforce wellness Recruitment & retention Digitalisation Climate change
Cybersecurity Financial performance Effective governance Diversity & inclusion
Data protection Staff development and training Responsible business practices
09 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2018
OUR APPROACH TO ESG
About this
Report
In 2018, we launched our new purpose-led brand
promise to help our customers lead Healthier, Doing
Business in the
Longer, Better Lives. With this promise at our core, right way
and our commitment to our Operating Philosophy
THE RIGHT
of “Doing the Right Thing, in the Right Way, with PEOPLE
the Right People… and the Right Results will come”,
we devised the following ESG Approach. Contributing to
our communities
Environment Social Governance operating
responsibly
FEEDBACK
Sustainable Our The Right
Infrastructure Products People
GRI and HKEx
guide content
Index
Resource Sustainable responsible
Usage Investment Business Practices
Energy & CSR & Community Effective Risk
Emissions Wellness Management
OPERATING CONTRIBUTING TO DOING BUSINESS
RESPONSIBLY OUR COMMUNITIES THE RIGHT WAY
AIA’s brand promise speaks to why
we do what we do as a company and We have structured this Report
to communicate the policies,
is central to all our ESG initiatives. initiatives and practices relevant
We aim to address the sustainability to addressing material ESG
challenges faced across our markets, issues. Our Approach provides
to operate responsibly by mitigating a framework for the continued
our environmental impact, and to communication of our ESG
progress and the delivery of our
ensure that we always do business brand promise. Please click on
in the right way by adhering to the a topic to be redirected to the
highest ethical standards. relevant section.
10 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2018THE ROLE OF HEALTH OUR
AND LIFE INSURANCE PROMISE About this
Report
Doing
The insurance industry plays a At AIA we’re making this commitment to people Business in the
right way
all across Asia Pacific, and in every community
broad role in contributing to the where we live and work. We’re not going to focus THE RIGHT
social and economic fabric of the on sickness; we’re going to focus on health. PEOPLE
communities where we operate. We’re not going to focus just on life; we’re going
to focus on living. We believe the best way to live Contributing to
This is not always evident given well is to be healthier. our communities
the intangible nature of our
operating
products and services. Because when you’re healthier you get more out responsibly
of life. You can do more. Experience more. Live
The concept of pooling and sharing risk to life to its fullest. Why longer? Because when FEEDBACK
provide businesses and people with security you’re healthy, you can enjoy an active and
has been around for centuries. Life and meaningful life, for longer. And better. Because
health insurance products provide individuals it’s not just about staying alive, it’s about living GRI and HKEx
guide content
with peace of mind knowing that they, their well. And that’s where we can really make a Index
employees, and their loved ones are protected difference; with products and policies that don’t
against life’s uncertainties. just protect lives but help make lives healthier,
longer and better. Every single day.
The industry is also a valuable enabler of Asia’s
growth. Rapid urbanisation and economic
development in the region have brought
affluence, but disrupted the traditional family “At AIA we’re making a
networks people have historically relied upon purpose-led promise. It’s a
for security and support. This societal shift has promise that is at the heart
exacerbated shortfalls in protection cover. Health
insurance and savings options help to address of everything we do and
these protection gaps and reduce the burden everything that drives the
on families and on national healthcare systems,
while providing people with a wider range of
decisions we make: it’s a
options in accessing medical treatment. promise to help people live
healthier, longer, better lives.”
Insurance also helps to mobilise investment,
with the premiums paid from policies reinvested
across productive sectors and businesses in
Asia. This supports the growth and development
of capital markets and provides valuable capital
for infrastructure, economic growth and thereby
the development of our region.
11 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2018OUR APPROACH TO ESG REPORTING
About this
AIA has a responsibility to be To provide a comprehensive review Report
transparent and accountable to all of our impact and performance,
of our stakeholders. This includes this Report includes, unless Doing
reporting on how we make a otherwise indicated, ESG data Business in the
right way
difference in our communities, from our operations in Hong Kong,
addressing sustainability challenges Thailand, Singapore, Malaysia, China, THE RIGHT
PEOPLE
and making a lasting and meaningful Korea, the Philippines, Australia,
impact within our markets. Our key Indonesia, Taiwan, Vietnam, New
Contributing to
stakeholders include our investors, Zealand6, Macau, Brunei, Cambodia our communities
customers, regulators, business and Sri Lanka (collectively, the
partners and our employees and “business units”)7. operating
agents. responsibly
For easy reference to our reporting
This Report is produced in disclosures, the GRI Index, the UN FEEDBACK
accordance with the “Core” option Global Compact, and the HKEx
of the Global Reporting Initiative ESG content index are provided at
GRI and HKEx
(“GRI”) Standards and Financial the end of this Report. Additional guide content
Services Sector Supplement, with information relevant to our ESG Index
reference to the ESG Reporting Guide performance, including financial
set out in Appendix 27 of the Rules data and corporate governance
Governing the Listing of Securities matters, can be found in our Annual
on The Stock Exchange of Hong Kong Report 2018. AIA makes every effort
Limited (HKEx). As a signatory to to ensure consistency between the
the United Nations Global Compact Chinese and English versions of this
(the “UN Global Compact”), AIA also Report. However, in the event of any
reports on our progress toward the inconsistency, the English version
UN Global Compact Ten Principles. shall prevail.
This year we have also added a This Report was reviewed and
personal element to our Report by approved by the Company’s Board
including stories from our customers, of directors (the “Board”) on
agents, and employees – the people 14 March 2019.
who bring our story to life.
6
In July 2018 AIA completed the acquisition of ASB Group (Life) Limited (renamed as AIA Sovereign Limited) and its subsidiaries,
including Sovereign Assurance Company Limited, a licensed insurer in New Zealand (together, “Sovereign”). Unless otherwise
noted, we have included ESG data from Sovereign in this Report for the first time.
7
Refers to all business units where AIA maintains majority operational control.
12 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2018About this
Report
Doing
Business in the
right way
THE RIGHT
PEOPLE
Contributing to
our communities
operating
responsibly
FEEDBACK
GRI and HKEx
guide content
Index
THE SUSTAINABLE
DEVELOPMENT GOALS
Developed by the United Nations (“UN”), the
Sustainable Development Goals (“SDGs”)
are 17 overarching goals that provide a
global framework for peace and prosperity in
consideration of the environment. Adopted in
2015 by all member states of the UN, they are
strategically important to governments across
Asia Pacific.
As a life and health insurer, our business
naturally aligns with several SDGs. In AIA’s
ESG Report 2017, we mapped our progress
toward the goals using the SDG Compass, a
tool designed for businesses to outline their
contributions to the SDGs. In response to the
positive feedback we received, this Report
continues to outline our support for related
SDGs and, for the first time, includes SDG
targets that align with our disclosure.
Please click on the SDG icons above to
be redirected to discussions on each goal.
13 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2018SECTION 2
About this
Report
Doing
Business in the
DOING
right way
THE RIGHT
PEOPLE
Contributing to
our communities
BUSINESS
operating
responsibly
FEEDBACK
GRI and HKEx
IN THE
guide content
Index
RIGHT WAY
14 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2018ESG GOVERNANCE
ESG issues have potential to impact business About this
Report
performance, whether through regulation,
stakeholder perception, or by directly affecting
Doing
the health and well-being of our customers. Business in the
right way
AIA seeks to understand these ESG issues, THE RIGHT
mitigate our impact on the environment, and PEOPLE
address the key health challenges facing our
markets. This is core to who we are and how Contributing to
our communities
we operate.
operating
All employees at AIA are responsible for responsibly
contributing to the realisation of our ESG
priorities, whether through upholding our FEEDBACK
principles for good governance or through
an ESG focused role.
GRI and HKEx
guide content
In 2018, to provide effective governance for Index
DOING BUSINESS in integrating and addressing ESG issues within
our business, we formed an ESG Committee,
THE RIGHT WAY comprised of members of the Group Executive
Committee.
The Committee meets on at least a quarterly
Strong corporate governance sets the basis and plays an integral role in overseeing
the Company’s ESG strategy, policies and
foundation from which we are able to disclosure, including reporting to the Board
grow our business, realise our Purpose, on a biannual basis. The Committee also
and make a positive difference in considers ESG research, feedback raised by
key stakeholders and reports by rating
people’s lives. agencies, and provides input on material ESG
issues relevant to the Group.
Our approach is based on the Group’s Operating
Philosophy of “Doing the Right Thing, in the Right In 2018, the Committee approved AIA’s
Way, with the Right People... the Right Results will membership in the PRI and TCFD.
come.” This approach applies across all our operations
and is embedded within our governance practices
and culture programmes.
“Doing the Right
Thing, in the
Right Way, with
the Right People...
the Right Results
will come ” For further details on our leadership team,
please click here.
15 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2018About this
Report
Effective Risk Doing
Business in the
Management
right way
THE RIGHT
PEOPLE
Contributing to
our communities
Investors increasingly consider ESG may have immediate operational
risks in making their investment impacts and are therefore treated Risk Culture operating
decisions, with research showing as operational risks. Long-term responsibly
that companies with better challenges such as pollution and A key element in the effective
capacity to manage ESG-related lifestyle risk factors impact the management of risk, including FEEDBACK
risks produce higher returns health and well-being of people ESG risk, is a strong risk culture.
over the long term8. At AIA, a across our markets, and are viewed
comprehensive approach to risk as insurance risks given the impact Risk culture refers to how an GRI and HKEx
guide content
management ensures that we have they may pose. Such emerging ESG organisation behaves as it Index
the frameworks in place across our issues may be discussed by the encounters opportunity and
business to address relevant risks. BRC, eRC or the ESG Committee. manages risk. Strong risk
awareness, as a part of AIA’s
The Board retains ultimate AIA conducts scenario testing desired broader culture, is
responsibility for the oversight and business continuity analysis integral to our RMF. Our Vision
of the Group’s risk management to ensure sufficient capital is and Purpose are aligned with
activities and monitors material earmarked to provide protection a strong and sustainable risk
Group-wide risks, whether they are to our policyholders and to ensure culture.
relevant to the industry or unique to business continuity under stressed
the Group and its businesses. The conditions. For further details, AIA’s Operating Philosophy, Code
Board is supported by the Board Risk please refer to page 155 of the of Conduct (the “Code”) and
Committee (“BRC”) and executive Annual Report 2018. brand promise further outline
risk committees (“eRC”), such as expectations on professional
the Operational Risk Committee and Our internal audit team provides conduct, risk behaviours, and
Financial Risk Committee, which are independent assurance on the channels of recourse and
comprised of our senior executives. effectiveness of our key controls reporting on potential risks.
and recommends control Frequent training and internal
AIA’s Risk Management Framework improvements as necessary. The communications ensure that
(“RMF”) ensures that across our team’s efforts cover a number of all employees and agents are
Group, we have the capabilities current and emerging ESG risk familiar with reporting relevant
and processes in place to identify, areas, such as people management, risk issues.
quantify, monitor and report risk. technology and data privacy,
The Board and business unit to provide assurance that the
boards of directors are responsible appropriate controls are in place organisations, and by playing a
for reviewing this framework to to address these risks. proactive role through our business
ensure that it is sufficiently effective where we remain committed to
given local business environments AIA recognises that long-term enabling Healthier, Longer, Better
and context. ESG risks, such as climate change, Lives across the region.
pollution and life-style related
We address ESG related risks disease, have far reaching impacts
according to the process outlined on our markets and require
in the RMF and categorise them concerted contributions from
based on the nature of the risk to business, government and the
our operations. Data protection, general public alike. AIA aims
cybersecurity, people management to address these issues through
and responsible business practices discussion within our ESG member
MSCI 2015
8
16 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2018Responsible Business Practices
Our customers place CODE OF CONDUCT
About this
Report
a high degree of At the heart of our approach to good supplemented with an ethical
trust in our business, governance is the AIA Code. The Code leadership programme in business,
Doing
Business in the
and in our ability to provides clear guidance on how we which equips AIA’s leaders with
right way
provide protection conduct business at all times and practical tools in managing situations THE RIGHT
PEOPLE
applies to everyone who works at AIA. involving ethical dilemmas.
and financial security It reflects our Operating Philosophy
to millions across the of “Doing the Right Thing, in the Each employee is expected to take Contributing to
our communities
region. We take pride Right Way, with the Right People… personal responsibility for observing
the Right Results will come.” It also the highest standards of integrity
in our reputation of defines how we hold ourselves to the and conduct, and to report any
operating
responsibly
being a reliable and highest standards of professionalism, violations without fear or hesitation.
trustworthy brand, which is key to maintaining trust and Non-compliance with the Code is FEEDBACK
building sustainable relationships subject to disciplinary action, which
and continue to act with our stakeholders – customers, may include dismissal. AIA’s business
with integrity agents, distribution partners and partners, including its agents, GRI and HKEx
guide content
throughout our shareholders. suppliers, distribution partners and
others who act on behalf of AIA, are
Index
operations. The Code has been translated into expected to apply the same standards
six languages across the Group’s and to follow the same responsible
markets and employees are required practices as our employees.
to undertake training to familiarise
themselves with the Code on joining
AIA. All employees are required to
complete an annual certification
For further details, we invite you
of understanding and compliance. to read our Code linked here.
Training on the Code is
17 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2018PREVENTING BRIBERY PREVENTING About this
AND CORRUPTION FRAUD Report
AIA has zero-tolerance for AIA is committed to the high Doing
Business in the
corruption. Under our policies, ethical standards outlined in right way
employees and other persons the Code and espouses a zero-
THE RIGHT
representing AIA are prohibited tolerance approach towards fraud. PEOPLE
from offering, accepting, paying AIA’s Anti-Fraud Policy sets out
or authorising any bribes or any standards for managing the risk of Contributing to
form of corruption in any business fraud, including training as well as our communities
interaction that involves AIA preventive and detective measures.
and government officials, our Our operating entities implement operating
responsibly
customers, or employees. procedures to prevent and facilitate
early detection of fraudulent
FEEDBACK
Our Group-wide Anti-Corruption practices to protect customer
Policy (the “Policy”) sets a high interests and those of AIA, in line
standard that is observed across with this policy. GRI and HKEx
our operations. Anti-corruption guide content
Index
training is compulsory for Incidents and allegations or
all employees. Reviews and suspicions of fraud are assessed
assessments are conducted and investigated. If allegations
from time to time to monitor or suspicions are substantiated,
compliance with the Policy. The AIA is committed to taking a fair
Policy also outlines the roles and and proportionate approach in
responsibilities of employees administering disciplinary actions.
to ensure compliance. Our Other actions may include the
business units are responsible loss of employment-related
for implementing processes and benefits, reporting the fraud to
controls to reduce the risk of law enforcement authorities for
corruption and ensure compliance prosecution or seeking a legal
with Group standards, as well as all remedy against the employee for
relevant local laws and regulations. the fraud that has been committed.
18 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2018OUR APPROACH TO ANTI-MONEY About this
LAUNDERING (“AML”) AND COUNTER Report
TERRORIST FINANCING (“CTF”) AND
SANCTIONS Doing
Business in the
right way
AIA is committed to a strict
THE RIGHT
programme of compliance with PEOPLE
all applicable AML/CTF laws and
WHISTLE-BLOWER POLICY regulations to prevent the use of its Contributing to
products and services for money our communities
AIA provides channels for all of our All allegations are assessed laundering and terrorist financing
stakeholders, including employees, and investigated. Reporting purposes. operating
responsibly
customers, and suppliers, to raise through internal channels (such
concerns about any violation of as Human Resources, Audit and The AIA Group AML/CTF Policy
FEEDBACK
the Code or other behaviour that Compliance) accounted for 76 and Guidelines set out the detailed
falls short of the high standards per cent of the reports received requirements of the Group AML/
demanded by the Group. during the year. Issues raised via CTF Programme. This programme GRI and HKEx
the ethics hotline are handled by includes a risk based approach guide content
Index
To that end AIA maintains a AIA’s Group Compliance team. to conducting customer due
comprehensive Whistle-blower The Whistle-blower programme diligence, ongoing monitoring,
Programme designed to handle is overseen by the Board Audit suspicious activity reporting,
reports of misconduct and Committee, who receive regular training and record keeping. AIA
inappropriate behaviour with multiple reports from Group Internal Audit uses a comprehensive AML/CTF
reporting channels, including a and Group Compliance on the monitoring software or online tool
24-hour, multi-lingual third-party number and nature of issues to screen, risk profile and monitor
administered compliance hotline raised and the progress of all customer activity.
which permits complete anonymity. material investigations. AIA’s
Whistle-blower Protection Policy All new employees are required to
prohibits any form of retaliation complete AML and CTF training.
Further details on our ethical against any employee providing Tied agents also are required
compliance hotline can be a good faith report of an actual or to receive appropriate AML/
found here. CTF training. In addition, our
suspected violation of the Code.
AIA Group Economic Sanctions
Compliance Policy & Guidelines
Proportion of reports received in 2018 by reporting channel9 set out standards to manage the
risk of dealings with governments,
individuals and entities subject to
sanctions programmes.
24%
2018
External Hotline
76% Internal ChannelS
Reporting through internal channels accounted for
76% of the reports received during the year
9
Proportion of reports received by reporting channel remains the same for both the twelve-month and thirteen-month periods ended 31 December 2018.
19 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2018Securing customer information
About this
DATA PROTECTION Report
Among our most important assets is Appropriate data protection controls Doing
Business in the
the trust placed in AIA to handle the are also integrated into relevant right way
personal information of our customers, operational processes and are regularly
THE RIGHT
employees and business partners. AIA tested by our internal audit team. For PEOPLE
has in place Group-wide Data Privacy example, procedural controls are built
Compliance Policy and Guidelines to into our interactive Point of Sale “iPoS” Contributing to
ensure adequate safeguards for our and interactive Mobile Office (iMO) our communities
customer and business data as well systems that have been adopted by
as compliance with data protection our insurance agents in their sales operating
responsibly
legislation. These policies and processes and broader day-to-day
guidelines are communicated to all operations. These controls include
FEEDBACK
employees and our insurance agents user authentication, secure storage of
when they join AIA and are regularly customers’ data on servers controlled
reinforced through refresher training. by AIA and transaction audit trails. GRI and HKEx
All employees and agents are required guide content
Index
to safeguard customers’ personal AIA also reviews the data security
information and are prohibited from standards of our third-party vendors
disclosing customer information to through our Third Party Security
unauthorised parties. Assessment process. This process
regularly assesses a broad range
AIA also has in place a number of of security controls of our vendors,
Information Technology standards, including data security and encryption,
such as a Cloud Security Standard, against industry standards such as
a Data Protection Standard and a ISO27001 and those by the National
Mobile Application Security Standard, Institute of Standards and Technology
to ensure sufficient operational controls of the United States (NIST).
which meet our information security
objectives. Any cloud services providers
we engage must also adhere to our AIA’s Privacy Policy Statement
is publicly available and can be
Cryptography Standard.
viewed here.
20 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2018CYBERSECURITY PREPAREDNESS SUPPLY CHAIN MANAGEMENT
AIA is committed to protecting the interests We work with many different product and
of our customers, partners, employees and service providers across our business.
stakeholders by providing a world-class Sustainability is a key element of our supply About this
Report
information and security environment. AIA’s chain as summarised in our Supplier Code
Group Information Security Policy is aligned to of Conduct (“Supplier Code”). The Supplier
Doing
industry leading standards to ensure that our Code was developed to complement the Business in the
systems, processes and information are secured. Code, which is also applicable to our right way
suppliers, and references international THE RIGHT
Our Group Chief Technology and Operations conventions such as the UN Declaration on PEOPLE
Officer and a dedicated information security Human Rights and AIA’s ESG memberships.
team oversee the quality and consistency of The Supplier Code encourages sound ESG Contributing to
our communities
technology risk management and cybersecurity practices among our suppliers and a general
across the Group. The team maintains a focus on culture of integrity in all matters.
operating
protecting AIA from the latest cyber threats by responsibly
detecting any anomalies, effectively responding As a Group, we work with suppliers that
to cybersecurity issues, enhancing defensive demonstrate best practice. Dedicated due FEEDBACK
controls and investing in security analytics. We diligence processes form a part of our
also partner with leading information security existing supply chain management and
services providers to provide further capability monitoring system. This includes conducting GRI and HKEx
guide content
on ensuring a secure operational environment. supplier and third-party assessments where Index
necessary, as well as requesting information
AIA focuses on protecting our critical assets on employment and environmental practices
from cyber threats using classification and threat from selected material suppliers through our
modelling techniques. This includes focusing on supplier registration process.
our key systems that process our customer data
as well as key supporting business processes,
and software specifically designed to address
cyber risk in this area. All cybersecurity issues
are handled by the Director of Information
Security who reports directly to the Head of
Group Technology Governance.
AIA believes that cybersecurity is the
responsibility of every employee. Therefore, we
educate our employees about how to protect
themselves and AIA from cyber threats through
web-based awareness and readiness training
and conducting regular cyber-defence
assessments including incident
management drills.
21 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2018CUSTOMER SERVICE STANDARDS
People are at the heart of our business, and To assist our customers in making well-
this means ensuring that we adhere to the informed decisions, internal standards on
high standards of quality and customer sales illustrations also promote a consistent About this
approach to fair disclosure in accordance Report
service expected by our customers.
with regulations.
Doing
AIA has in place a robust business quality Business in the
framework which allows us to meet these All business units and subsidiaries have right way
expectations. The framework includes the checks and controls in place to ensure
THE RIGHT
following key elements: compliance with our standards. PEOPLE
• An agency Code of Conduct outlines
10 Contributing to
our communities
our standards of integrity, behaviour and
compliance obligations applicable to our operating
tied agents. responsibly
• An agency training programme on sales FEEDBACK
conduct and a guideline on the agency sales
process. AIA’s agency sales process provides
GRI and HKEx
a framework for how agents should sell our guide content
products. This includes Know-Your-Customer Index
diligence and need-based sales practices
to establish clients’ needs, priorities and
circumstances, including the amount of
existing life insurance coverage they
already have. This allows agents to
recommend suitable products with
appropriate coverage.
• Our iPoS technology guides our agents
through the sales process and helps ensure
a consistent, high-quality customer
experience.
• Monitoring of adherence to our standards,
through various means, including direct
verification calls with customers
and a mystery shopping programme.
Misrepresenting, or attempting to mislead or
deceive customers by agents, for example
through use of unsupported or fictitious
claims about AIA products or those of our
competitors, is not acceptable and may
result in disciplinary action.
10
Applicable to AIA’s tied agents, and intended to be referred to in conjunction with the Code.
22 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2018CUSTOMER ENGAGEMENT
About this
With more than 33 million individual policies To understand how we can continue to enhance Report
and over 16 million participating members the customer experience at all stages of the
of group insurance schemes, the scale and journey, one of our initiatives is running an Doing
Business in the
footprint of our customer base presents a annual customer relationship survey. Insights right way
huge growth opportunity as we actively engage provided by our customers’ feedback from the
THE RIGHT
and nurture long-term relationships with survey have helped us enhance our customer PEOPLE
our customers. engagement and experience, and ultimately drive
retention, repurchase and recommendation level. Contributing to
Achieving our promise of enabling Healthier, We also conduct deep research to understand our communities
Longer, Better Lives requires that we engage the needs of various customer segments in order
in a meaningful way with our customers at to customise our propositions to them. In Hong operating
responsibly
each touchpoint in their journey, allowing us to Kong, this research has allowed us to develop
develop a deep understanding of their unique digital sales tools such as segmentation toolkits,
FEEDBACK
needs and wants, and meet their requirements. which support our team and our agents in
engaging our customers.
In 2018, we continued to improve the customer GRI and HKEx
data we capture and used propensity models guide content
Index
and advanced machine learning methodologies
to address customer protection and savings
gaps and develop the right propositions,
delivered at the right time and in the right way.
ListENing to customer feedback
Staying at the forefront of our customer needs where required. The
industry relies on us being able to system also helps to drive structural
place our customers at the heart of improvements, enabling us to identify
our business. This involves collecting key issues in our processes if and
and responding to customer when they arise.
feedback, while delivering a holistic
support experience through each The system is an integral part of AIA
and every interaction with AIA. China’s customer communication
strategy. AIA China takes pride
Closed loop feedback management in reviewing and analysing each
systems provide companies with comment, so that it is able to continue
the tools they need to identify key to improve on its service and provide
touchpoints throughout the customer an unparalleled customer experience.
lifecycle, and seek feedback at these
stages. This enables companies to Feedback from the system revealed
continue a dialogue with customers an overall customer satisfaction rate
regarding their feedback. for AIA China of 99 per cent, with 96
per cent of customers being satisfied
These systems are in place at AIA with our customer service centres as
China, allowing it to understand at 31 December 2018.
what matters to its customers on an
ongoing basis, as it collects customer Overall customer satisfaction rate of
feedback at every touch point with its
business. This has enabled AIA China
to take prompt action to address 99%
23 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2018SECTION 3
About this
Report
Doing
Business in the
right way
THE RIGHT
PEOPLE
Contributing to
our communities
THE
operating
responsibly
FEEDBACK
GRI and HKEx
RIGHT
guide content
Index
PEOPLE
24 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2018About this
Report
We are proud of our people OUR EMPLOYEE WORKFORCE
and the culture at the heart of As at 31 December 2018, AIA had a total of
Doing
Business in the
our Company. right way
At AIA, equipping our employees for success
22,263 EMPLOYEES11 THE RIGHT
PEOPLE
is vital to serving our customers and enabling
our communities to live Healthier, Longer, which included full-time and part-time staff, Contributing to
as well as employees on fixed term contracts12. our communities
Better Lives.
operating
Our vision to be the world’s pre-eminent responsibly
Percentage of employees across markets
life insurance provider is supported by
(as a percentage of total employees)13
our many employees and agents. Guided FEEDBACK
by our Operating Philosophy of “Doing the
Right Thing, in the Right Way, with the Right
Hong Kong
11.5% 15.0%
China
People... the Right Results will come”, we
17.6% Singapore 6.4%
GRI and HKEx
focus on recruiting, developing and retaining Malaysia guide content
Index
capable, engaged and high-performing
employees who can continuously learn and
grow while delivering their best work. These
Thailand
11.3% Other Markets 38.2%
are people who thrive in our customer-
centric culture, embrace AIA’s brand promise
Permanent employee turnover 14
and exhibit our leadership characteristics.
Permanent employee turnover across the Group was
AIA’s people strategy is designed to build 16.6% in 2018. The APAC region provides many career
capabilities for the future, transform the opportunities with increasing demand and competition
way we work and recognise sustained high for skilled talent. We actively monitor our employees’
performance. levels of engagement and the programmes we offer
them to create an environment in which they can do
their best and ensure we retain our talent.
11
The increase compared to 30 November 2017 is primarily
due to our acquisition of Sovereign.
12
Excludes interns, agents and employees of Tata AIA.
13
Figures for Hong Kong include Group Office employees,
figures for China and Malaysia include our employees in our
shared services centres.
14
Permanent employees exclude employees on fixed term
contracts. As part of an update to the methodologies we
apply to certain data of the Group this year, permanent
employee turnover excludes involuntary turnover. Turnover is
calculated using monthly average headcount for the twelve
months ended 31 December 2018.
25 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2018About this
Report
Doing
Business in the
right way
THE RIGHT
PEOPLE
Contributing to
our communities
operating
responsibly
FEEDBACK
GRI and HKEx
guide content
Index
DEVELOPING OUR LEADERS The ALC has now entered its third year
of operation.
In 2018, it hosted more than
Our AIA Leadership Centre (“ALC”) based in
Bangkok is a world-class learning facility
offering various programmes to our senior
executives, top agency leaders and key
240 events
partner executives. With a clear focus on Delivered more than
AIA’s strategic and governance priorities,
the ALC continues to deliver impactful
leadership development programmes,
20 customised
leadership
programmes
partnering with world renowned
including those focusing on: business schools and consulting firms.
Executive Leadership Technical Leadership At AIA, we make it a top priority to
Targeting AIA’s current Designed to develop technical develop our people and their leadership
and future executives, our and professional capabilities and functional capabilities. We believe
programmes are designed to within our core functions to in growing our leaders from within and
accelerate executive leadership promote operational excellence. in 2018, we closed a large proportion
as well as management of our senior management positions
capabilities. Our Enterprise Distribution Leadership through internal progression. Committed
Leadership Programme Designed for AIA’s senior to having a strong pipeline of senior
continues to be our signature distribution leaders, senior leaders, we conduct a comprehensive
programme offering to all agents and partners, these Group-wide people review process
markets. programmes develop the sales annually to identify and plan for the
leadership and technical skills succession of key roles. In 2018, we
required to produce consistent reviewed approximately 1,400 senior
best in class results. positions across the Group, ensuring we
consider succession planning from a
Ethical leadership training is also provided to our senior holistic perspective.
finance leaders at the ALC to help ensure ethical risk issues
are considered in their decision making and behaviour.
26 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2018FOSTERING A CULTURE OF
PEOPLE DEVELOPMENT About this
Report
EMPLOYEE LEARNING AND DEVELOPMENT We continuously review feedback from our Doing
We foster a robust learning culture at AIA employees, the content of our courses and Business in the
right way
that empowers our people to develop critical training material to ensure our programmes
capabilities for their current roles and deliver value for the business and develop our THE RIGHT
PEOPLE
career aspirations. AIA’s enterprise-wide people for the future.
development framework aligns our people
development with our business strategy and AIA practices a holistic approach to learning Contributing to
our communities
talent needs. Core development modules and development, whereby skills and
for senior employees such as the People knowledge are accumulated from on-the job
operating
Manager Accelerator Programme and the experience, activities such as mentoring and responsibly
AIA Manager Series remain foundational coaching and classroom and online based
curriculum items offered throughout the learning. We present below the average training FEEDBACK
year. These core modules are complemented hours in 2018 by employee category and
with a wide variety of skills-based training to gender. The numbers do not capture all online
target individual development needs as well. learning activities, mentoring and coaching, GRI and HKEx
guide content
knowledge sharing sessions or professional Index
In 2018 we expanded the digitisation of development courses undertaken by our
learning content and delivery methods employees.
with the launch of a new learning platform
that centrally houses an extensive range of Through our programmes, we aim to cultivate
content. This platform (“Catalyst”) provides forward looking leadership and managerial
employees with flexibility regarding the mindsets, and skills that will ensure the
subject matter they would like to develop sustained growth and development of our
while addressing some key principles of people. The strengthening of these skills
modern learning – access to content is on- enables us to capture the vast growth
demand, anytime and anywhere. opportunities in the region, allowing us to
provide the right solutions for our customers’
Courses offered on Catalyst include technical protection and savings needs.
skills, crisis management, effective leadership
and healthy living practices, among many As we transform our functional operating
others. Catalyst has been rolled out at Group model, we have also outlined capability
Office and six business units, with plans for roadmaps to provide our leaders and employees
further expansion in 2019. with key knowledge, skills and behaviours
required for their success in future roles. We
offer internal mobility opportunities in other
teams, functions and markets to broaden our
employees’ perspectives and present new
career experiences.
Average hours of training15
by gender by Employee category
Male 14.3 Junior Staff 12.4
Female 14 Middle
Management
18.4
Senior
Management 22.2
15
Training hours for Sovereign employees are not included.
27 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2018Lo Si Io
EMPLOYEE MENTORING Lo Si Io, an agent with AIA Macau, shares her About this
Mentorship programmes are currently offered passion for her job, interests and getting Report
and supported at our Group Office and in many of started in her career.
our markets. These programmes are structured Doing
“I used to think that it was important to choose your Business in the
to allow our employees to expand their networks, right way
benefit from guidance, and foster communication career early on, and then stick with the job you’d
across departments and seniority. chosen the rest of your life. That was what made you THE RIGHT
PEOPLE
successful.
AGENT LEARNING AND DEVELOPMENT Contributing to
AIA’s Premier Agency strategy offers our In 2013, I was a first-year student at university, our communities
agents world-class training and development studying to be a professional chef when I met my
opportunities. Since the launch of our Premier current manager. I was inspired by her success and operating
Agency strategy, we have focused on developing her ability to speak to many different types of people responsibly
best-in-class agents that enable us to offer high- with ease. While her job was challenging, her work
quality advice to customers and provide them with was meaningful, and I could see that she was really FEEDBACK
the savings and insurance cover they need. Please making a difference in people’s lives. I decided
refer to the Business Review Section of Annual shortly after to take up a new challenge, and work
GRI and HKEx
Report 2018 for further details on AIA’s Premier for her. guide content
Index
Agency Strategy.
While my performance was not ideal the first
As part of the onboarding process, all prospective year, through hard work, dedication and under the
agents are required to attend training and guidance of my manager, I qualified as an MDRT16
development programmes that are tailored to their member in my second year, and have continued to
needs and are designed to equip them with the be an MDRT member thereafter. This is probably
necessary skills to be productive. what I am most proud of.
This year, we continued to innovate new It’s not been too difficult to strike a balance between
approaches to training and development through work and leisure. Healthier, Longer, Better Lives
digital classroom and mobile learning platforms, has always been a way of life to me. It’s something
making learning easier and more accessible to that we can all relate to. Personally, I think it’s
our new agents and agency leaders in major quite important to manage one’s schedule, and this
cities. We plan to roll out these initiatives to other includes making time for leisure. I love yoga and
cities and all agents and agency leaders in 2019. taking it up as practice also helps me relax.
Structured courses allow us to encourage the
right behaviours, enabling our agents to be more Healthy living is just as important to my clients.
effective in their jobs. This includes a training I even play badminton with them sometimes. AIA’s
roadmap, online assessments, study materials and efforts to promote healthy living have always been
course evaluations, all of which are accessible a talking point when I meet my clients, especially
on mobile devices and within a paperless nowadays when people are more conscious of their
environment. health. Many of them are interested in AIA Vitality,
and always ask me for advice on ways to earn points
and collect rewards.
“It’s now been six years since I made my career
switch. it’s been an exciting journey!” I also rely on a lot of different apps and technology
on a day to day basis, this includes staying in touch
with friends, family or clients. AIA’s iPoS is a tool
that I use very often. Previously, I’d need to meet
a client about four to five times until I had all the
necessary information for a policy, but now it only
takes one or two meetings. It’s also a lot easier to
service customers and their needs, this includes
providing them with policy information or changing
their address. Plus, there’s little need for me to carry
around a lot of paper.”
16
DRT is internationally recognised as the standard of excellence in the life insurance and financial services business. Its members are required to generate a
M
certain level of premium, commission or income, and demonstrate professional knowledge, strict ethical conduct and outstanding client service.
28 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2018You can also read
