AIA Group Ltd

###### Climate Risk: Governance: Internal Engagement: Integrating climate risk into Establishing robust governance Building internal engagement our decision-making process to drive our climate actions to drive climate priorities Progress to date Progress to date Progress to date » Supporter of the TCFD recommendations since 2018[6 ] » Board oversight on SBTi targets and plans » Launched ESG 101 programme in 2023, featuring specific climate-related sections, with participation from over 17,000 » Integrated climate risk into risk taxonomy » Established Climate & Net Zero Steering Committee to oversee employees as of October 2023 strategy and implementation pathway to deliver on climate targets » Engaged with decision makers across 17 markets to » Introduced training programs such as TCFD-accredited training[7 ] baseline emissions, set targets, and develop market-specific to the Board to build climate competency implementation plans Next steps » Organised Board and Executive Committee engagements with ESG » Continue to strengthen climate risk assessment and disclosures, » Implemented requirement for in-scope investment team incorporating additional data and methodologies members to take the CFA Institute's Certificate in ESG Investing » Reported emissions footprint for our operations and investments since 2017 and 2020 respectively as part of our ESG reports Next steps Next steps » Strengthen engagement across the organisation to continue fostering a culture of sustainability » Ensure persistent oversight by the Board on the delivery of our climate commitments » Continue to provide climate-related training and education to our employees » Continue to build Board competency on ESG, including on climate-related matters » Monitor and adapt localised implementation plans to evolving local market context » Annually track and report emissions as per SBTi guidelines in our ESG reports [...] Governance Body Roles & Responsibilities Members In parallel with Board-level oversight, climate- related responsibilities have been assigned to Group management-level positions and committees. The following table summarises the various Board committees, management committees and execution teams, along with their respective roles and responsibilities. » Group Board Oversees Group's risk-management activities including ESG and » Group CEO & President and non-executive members, with climate-related risks members who bring climate and ESG-related experience from both the public and private sectors » Monitors overall progress of AIA's climate commitments » Reviews relevant ESG and climate-related matters and receives biannual updates on the ESG programme » ESG Committee Acts as AIA's overarching body for ESG-related matters, including » Selection of members of the Group Executive Committee climate-related matters and two Board INEDs » Monitors and reviews the Group's ESG and climate performance against ambitions/targets » Sets ESG policies and objectives » Endorses targets and key performance indicators » Climate and Net-Zero Steering Committee Handles climate and SBTi-related activities within the Group, » Relevant leadership – Group General Counsel (Chairperson), including robust baselining and target setting Group Chief Financial Officer, Group Chief Investment Officer, Group Chief Technology & Operations Officer, Group Head » Oversees strategy and governance including driving the Climate of Sustainability, Regional Chief Executive, Group Head of Transition Plan towards operational climate targets Internal Audit » Collaborate with the ESG Committee on key climate and net-zero decisions. » Approves and oversees progress towards investment targets » Group Chief Investment Officer, Group Chief Financial Officer, » Group Investment Committee Group Chief Risk Officer and Group Chief Actuary » Receives input from the Climate and Net-Zero Steering Committee and the ESG Committee » Net-zero and SBTi Working Group Supports the Climate and Net-Zero Steering Committee » Group ESG Function, Group Investment, Finance, Facilities » Provides input to overall working processes to ensure adherence Management, Real Estate Function and ESG representatives across our markets to the SBTi framework

Our governance structures leverage cross-functional expertise, and ensure robust oversight from senior management and the Board. This structure guarantees clarity, transparency and accountability in decision-making across our business. [...] The Board of Directors has ultimate oversight over Group ESG matters, including climate-related risks and opportunities. The Board sets our risk appetite and the implementation of an effective Enterprise Risk Management (ERM) framework, including addressing ESG matters, considering climate-related risks and topics and ensuring progress towards credible climate commitments. [...] There are established direct reporting lines and regular meeting cadences for each functional body, ensuring the Board maintains clear oversight of climate matters at all management levels. [...] Alongside Board-level oversight, climate-related responsibilities have been assigned to management-level positions and/or committees. AIA's Group General Counsel is a member of the Group Executive Committee and is the highest-ranking management position responsible for climate-related issues, directly reports to the Group Chief Executive and President and provides regular updates to the Board. [...] The Group General Counsel chairs the ESG Committee, as well as the Climate and Net-Zero Steering Committee established in 2022 by the Board. The Climate and Net-Zero Steering Committee is responsible for overseeing our transition to net-zero and has specific focus on overseeing AIA's SBTi commitment, including the development and approval of specific targets, implementation strategies and ongoing monitoring of progress towards our validated near-term SBTs. [...] AIA's Group Head of Sustainability, who reports to the Group General Counsel, is tasked with embedding the company's ESG Strategy across AIA's operations and driving the organisation's overall sustainability efforts. The Group Head of Sustainability is responsible for meeting ESG key performance indicators (KPIs) (including climate-related) as part of the overall sustainability strategic plan. [...] ESG KPIs are linked to select material topics including those that are climate-specific and those that are linked to the achievement of the Group's SBTs. The Group Head of Sustainability is responsible for the oversight and governance of SBTs in AIA's operations, with each market being responsible for how its decarbonisation strategy is locally implemented and operationalised (for example, by the Regional Chief Executive, ESG lead, and facility managers).

### 2. Ongoing Surveillance and Analysis

The AIA asset class heads of research have functional responsibility for ensuring that the investment controls in relation to coal mining companies and coal-fired power generation companies remain up-to-date and robust. Such controls are reviewed periodically and updated as determined by the relevant AIA asset class heads. To ensure that we continue to act accordingly, our teams will also be active in surveillance and analysis of current and new issuers which are or may become (through any of their activities), coal mining companies or coal-fired power generation companies.

### 3. Measurement and Disclosure

We will continue to measure the carbon footprint of our portfolio, through established methodologies, aligned with market standards. In addition, we will provide regular and ongoing disclosure of our progress in managing down our exposure to coal mining and coal-fired power businesses on an annual basis in the ESG Report.

### 4. Accountability

In order to ensure accountability, we have included a number of requirements in our Group-wide Investment Governance Framework. These include:

- Implementation of automated pre-trade controls as part of our trading systems to ensure exclusions from AIA's investment portfolios are properly imbedded in our control framework;

- Research analysts are required to include within their research reports an ESG analysis of their covered companies;

- ESG factors must be considered when acquiring, developing or redeveloping any real estate assets. Furthermore, newly constructed buildings within our portfolio must have, at a minimum, a green building certification accredited by industry-recognised green building association; and

- The ESG policies and practices of all external managers are assessed prior to the award of any mandate and periodically throughout the relationship.

In addition, the framework will provide for ESG-related key performance indicators to be established for the Investment leadership team, to be agreed with the Group Chief Investment Officer, at AIA's Group Office and in all of our business units.

The Group General Counsel chairs the ESG Committee and the Climate and Net-Zero Steering Committee, and serves as the highest-ranking official responsible for ESG-related issues. The role reports directly to the Group Chief Executive and President to provide regular updates to the Board. [...] The Group Head of Sustainability reports to the Group General Counsel and is tasked with embedding the Group's climate strategy across AIA's operations, leading the Group ESG functions and driving the organisation's overall sustainability efforts. [...] The Group Head of Sustainability is also responsible for overseeing the achievement of ESG KPIs, as outlined in the Sustainability Strategic Plan agreed with the ESG Committee and the Climate and Net-Zero Steering Committee. These KPIs support the Group's net-zero transition commitment for 2050. [...] A portion of the Group Head of Sustainability's annual performance bonus and salary increases are linked to performance on these KPIs. [...] The Group Chief Investment Officer (CIO) serves as the highest-ranking management officer for climate issues related to AIA's investment portfolios, reporting to the Group Chief Executive and President and providing updates to the Board on a quarterly basis. The Group CIO oversees the Sustainable Investment pillar of AIA's climate strategy and the progress towards the investment targets. The role also supervises the investment-related content of AIA's ESG reports. [...] AIA has four management-level committees working collaboratively to ensure effective oversight and implementation of climate-related strategies, aligning the Group's efforts with the sustainability goals. The specific environmental responsibilities of these management-level committees, including for climate-related topics, are outlined in the following table.

**Strong corporate governance oversees new net-zero commitment**

AIA's operational emissions will be overseen by a new Climate and Net-Zero Steering Committee that reports directly to the Group Chief Executive and President. AIA's Group Chief Investment Officer will have direct oversight of the integration of the Company's net-zero commitment into its portfolio engagement process. Progress against our ambitious climate related goals will be regularly reported to the Company's Board of Directors.

AIA's annual ESG Report will include updates on our progress towards net-zero to ensure accountability and transparency. We will also continue to report on our progress towards the UN Principles for Responsible Investment (PRI), the UNEP FI Principles for Sustainable Insurance (PSI), and towards the Task Force on Climate-related Financial Disclosures (TCFD) framework.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]Engagement activities at AIA include our AIA-led thematic engagements and collective engagements with collaborative frameworks such as Climate Action 100+ and UN Investor Working Group on Sustainable Palm Oil. Investee engagements at AIA are centrally coordinated and driven by the Group ESG and Investment ESG teams to ensure consistency and alignment with our overall approach to sustainable investment, being one of the pillars of AIA's Group ESG strategy. The themes of thematic engagements are recommended based on AIA's sustainable investment priorities as informed by timely market trends.

To ensure sound governance, AIA's proposed thematic engagements, including the engagement materials, assessment and / or scoring methodology are reviewed by an investment advisory body chaired by the Group Chief Investment Officer and comprised of the senior members of the AIA Investment management team. Upon approval from the Group Chief Investment Officer, the Investment ESG team will then commence the thematic engagement.