Aflac releases 2021 annual sustainability report, and first sustainable bond report
Aflac Incorporated announced today that the company has released its 2021 Business and Sustainability Report, titled “The Aflac Way: Making a Difference While Balancing Purpose and Profit.” The 2021 Business and Sustainability report is available at investors.aflac.com under “Sustainability.”
The 2021 Business and Sustainability Report provides key insights into Aflac Incorporated’s environmental, social and governance (ESG) goals and achievements alongside an overview of operations and financial results for the 2021 fiscal year. This year’s report also highlights achievements of the company advancing integration of ESG into its investment and ownership decisions, including: becoming a signatory of the Principles for Responsible Investment; progressing on its path to carbon neutrality and net zero emissions; making $725 million of incremental commitments in qualified investments that address economic mobility and social inequity; allocating $252 million to Green and Social investments within the first year of issuing the company’s first sustainability bond; continuing to foster an inclusive culture in Japan and the U.S.; exceeding $157 million in contributions in support of the Aflac Cancer and Blood Disorders Center of Children’s Healthcare of Atlanta; supporting 140,000 pediatric patients and their families who stay at the Aflac Parents House in Japan during treatments; and giving a My Special Aflac Duck® to more than 13,000 children since 2018 to provide comfort through their treatment for cancer and most recently, sickle cell disease. It also highlights Aflac Incorporated’s focus on strong governance and commitment to being a good steward of the environment.
About the 2021 Business and Sustainability Report, Aflac Incorporated Chairman and CEO Dan Amos commented: “I don’t think it’s coincidental that Aflac has achieved success while focusing on doing the right things. In fact, I believe they go hand in hand. I’m proud of what we have accomplished in terms of both our social purpose and earnings results – in other words, balancing purpose and profit. Throughout this report, you will see Aflac’s sound business strategies, unique company culture, and commitment to doing business the right way, including our commitment to diversity, the environment, governance and our communities. This is all done through the lens of balancing purpose and profit.”
Aflac Incorporated President and Chief Operating Officer Frederick J. Crawford added: “ESG is all about doing right by not only our shareholders, but also our employees, policyholders, and the communities in which they live and work. We’ve always had purpose, but now we have the stakeholder support and measurement tools to help us meet our profit goals in ways that also meet our environmental and social goals. We recognize that to become and remain an industry leader in ESG, every company, including Aflac, needs to adapt continuously, and that is what we are doing. In the spirit of the transparency we prioritize, we’ve posted material that our investors have expressed an interest in seeing, including the company’s 2020 Task Force on Climate-related Financial Disclosures (TCFD) Report, the Aflac U.S. 2020 EEO-1 Disclosure and the company’s Carbon Disclosure Project (CDP) submission.”
The report also integrates various reporting frameworks, including the Sustainability Accounting Standards Board (SASB), the Task Force on Climate-related Financial Disclosures (TCFD), United Nations Sustainable Development Goals (SDGs) and the Global Reporting Initiative (GRI), which are easily located in the report’s ESG Reporting Index.
The Aflac sustainability report follows its recently released Sustainability Bond Report one year after issuing its first sustainability bond. The sustainability bond reinforces the company's longstanding commitment to uphold the core values of our "people-first" business approach that balances purpose and profit. The report discloses the net proceeds raised from the March 8, 2021 Sustainability Bond issuance, the allocation of the net proceeds into each Eligible Category under the Sustainability Bond Framework (the Framework), and the balance of unallocated proceeds at the reporting period end.
The report details that since the issuance, $252 million, which represents 63% of the net proceeds, has been allocated to four Eligible Categories under the Framework: Communities, Green Buildings, Renewable Energy and Socioeconomic Advancement and Empowerment. While the Framework permits net proceeds to be attributed to investments in or financings of Eligible Sustainability Assets completed up to 36 months before the issuance of a Sustainability Bond, 81% of the investments were new investments. The balance of unallocated proceeds has been invested in cash and cash equivalents in compliance with the Framework.
As part of the Framework, Aflac Incorporated will allocate an amount at least equivalent to the net proceeds from the offering exclusively to existing or future investments in, or financing of, projects which provide environmental or social benefits, meeting eligibility criteria under the Framework within eight categories: Renewable Energy, Energy Efficiency, Green Buildings, Clean Transportation, Sustainable Water Management, Pollution Prevention and Control; Socioeconomic Advancement and Empowerment; and Communities. These categories also align with and incorporate the priorities set forth in the Sustainable Development Goals (SDGs) adopted by all United Nations Member States in 2015.
Commenting on the report, Aflac Incorporated President and Chief Operating Officer Frederick J. Crawford said: "We have lived and breathed our commitment to our employees, policyholders, investors and communities for decades as a compassionate company and good corporate citizen. Stepping up in this way with a sustainability bond embodies what our company stands for, which is just as important as the products and services we provide. The work we have done has established a foundation for us to make a direct and measurable positive impact on society and the environment. As we strive to deliver value to the people who depend upon us, we will continue to identify ways to advance the approach that is known as The Aflac Way."
Investors may learn more about Aflac Incorporated and its commitment to environmental, social, and governance (ESG), and social responsibility, including through its 2020 Task Force on Climate-related Financial Disclosures (TCFD) Report, at investors.aflac.com under "Sustainability."