I am very proud today to mark the release of our Environmental, Social and Governance (ESG) report for 2021. ESG Reporting is critical for us given that it demonstrates accountability and transparency, promotes effective stakeholder engagement and facilitates the continual improvement of our ESG performance and management.
Our ESG Report is an important record that tells the story of the tremendous progress that we are making as a Group, to ensure the wellbeing of all our stakeholders: Helping them thrive, Building a greener future, and Leading by example.
It is a story that we can all be proud of, and I am truly grateful for your incredible efforts in making this possible. Prudential’s ESG strategy is integral to how we deliver on our Purpose, to help millions of people get the most out of life. Our actions last year demonstrated our commitment to that mission. Please do take the time to download the Report here.
As owners and managers of substantial financial assets, Prudential and Eastspring are in a unique position to ensure a greener future. We aim for results through an inclusive transition, where we work together with the companies that we invest in, and other stakeholders, to influence positive outcomes. Our strategy reflects our deep understanding of the needs of Asia and Africa, and we are convinced it is the correct, and sustainable, approach.
Having announced our Net Zero emissions target in May 2021, we are now on track for a 25 per cent reduction in the carbon emissions intensity of our portfolio by 2025. We have divested fully our equity holdings in companies that derive more than 30 per cent of revenue from coal, and we are well set to fully divest our bond holdings in those companies during 2022. We are also on course to engage with companies that are responsible for 65 per cent of emissions in our investment portfolio, to influence a reduction in their carbon footprint.
It is also critical that we reduce the direct impact we have on the environment as a business, and are well on our way for a 25 per cent decrease in our direct and indirect emissions per full-time employee by 2030.
Our sustainability approach goes beyond climate change.
Although significant, the achievements listed above are but early steps in our sustainability journey. And, our ESG commitment, as well as our inclusive approach, goes well beyond climate change.
As we continue to embed sustainability ever deeper into every aspect of our operations, we are focused on developing new and better products that make health and financial security accessible and affordable for more customers, including communities that have traditionally been underserved by products and services from life insurers.
We are also continuing to make a positive difference to employees, business partners and other stakeholders by integrating diversity and inclusion deeper into our corporate culture. We strive to hire and retain the best talent and to be recognised as an employer of choice, while ensuring we embrace diversity of thought in everything we do.
There is no doubt we have made tremendous progress in just a couple of years. But we must continue to keep the pace and lead the way, as climate change brings unprecedented challenges to our future, and the needs of the customers and communities we serve evolve rapidly.
We are all together in this journey, and I encourage each of you to share ideas and insights on how we can make our collective future even more sustainable. We must do even better in 2022 than we did last year, and with your dedication and commitment, I am confident we’ll have a lot more to be proud of and celebrate at the same time next year.
Next week, we’ll be releasing the next in our series of podcasts, created to tell you more about our Sustainability progress. Please do look out for the podcast on email and via 1-Hub.
Thank you very much for all your hard work and dedication.
Group Chief Financial Officer and Chief Operating Officer
Chair of ESG Committee