HK Stock Code: 2378
Prudential plc
For the long term
Environmental, Social and Governance Report 2018

Prudential plc  Environmental, Social and Governance Report 2018
www.prudential.co.uk

Page
Foreword 
1
Generating long-term value
2
M&GPrudential demerger – creating two distinct businesses 
3
About this report 
4
Engaging with our stakeholders
5
Customers
6
Responsible investment 
9
Business integrity
13
People
15
Our supply chain
19
Technology 
21
Environmental performance
25
Supporting our communities 
29
Contents

www.prudential.co.uk
Environmental, Social and Governance Report 2018  Prudential plc  1
That clear sense of purpose flows into everything we do, from the 
services we create and the way we deliver them to our customers, 
to how we plan our investments on their behalf and how we 
engage with our people and our suppliers.
We support that purpose through strong values. Ownership, 
partnership and stewardship are at the heart of how we do things.
Ownership means that all of us at Prudential are required to treat 
our business as if we had created it ourselves, to escape our silos 
and see the broader landscape, and to take responsibility for 
our actions. 
Partnership is about building an open, collaborative approach, 
working with the best people internally and externally to develop 
new ideas and ways of working to meet the future needs of 
our customers.
Stewardship is the recognition of our responsibility as long-term 
custodians committed to leaving our business – and the wider 
world – in a better state than when we arrived.
Our Environmental, Social and Governance Report provides 
a window on how we are fulfilling our purpose and applying 
those values across our organisation. This report demonstrates 
the positive, purpose-driven way we are approaching our key 
responsibilities, and provides an update on the advances we have 
made throughout 2018 in dealing with the main risks we face and 
addressing the opportunities before us. 
Our organisation is also going through an historic change as we 
work towards the demerger of M&GPrudential from 
Prudential plc. This will result in the creation of two businesses 
that are both better able to deliver benefits to all their stakeholders. 
Within this report we share an update on our progress in 
establishing the new businesses and how we are working to 
successfully manage this crucial change. I am confident that, after 
the demerger, both of these businesses will continue to 
demonstrate ever-greater progress.
Mike Wells 
Group Chief Executive
At Prudential, we are clear about our purpose.  
Our business exists to help people de-risk their  
lives and deal with their biggest financial concerns. 
At the same time, we invest our customers’ savings  
in the real economy, helping to drive long-term, 
sustainable growth and deliver benefits to all our 
stakeholders and the communities in which we work.
Foreword

2  Prudential plc  Environmental, Social and Governance Report 2018
www.prudential.co.uk
Generating long-term value
Prudential helps customers manage the uncertainty in the unexpected events 
in life. We offer financial peace of mind for our customers, whether that’s 
saving for a child’s education, starting a family or planning for retirement, 
and we provide them with increased confidence as they face the future. 
We invest our customers’ money in the real economy, supporting growth 
and strengthening communities, while delivering consistent and growing 
returns for our investors. 
About 40 million Americans are expected to reach retirement 
age over the next decade alone. At the same time, 72 per cent 
of American workers do not have access to a defined benefit 
retirement plan. Our retirement income products are designed 
to help customers avoid running out of money and provide 
them with a reliable cushion against volatile markets.
United States
M&GPrudential helps customers in the UK and Europe to meet 
their financial goals, managing the long-term savings of millions 
of people through a range of investment solutions. As well as 
serving retail customers, we manage the savings of millions of 
corporate and public sector pension scheme members. With 
£342 billion in assets under management, M&GPrudential is 
a major investor in the UK and global economy. 
UK & Europe
We are developing our businesses in our newer markets in 
Africa, which is one of the world’s most underserved life 
markets. We have insurance operations in five markets in 
Africa – Ghana, Kenya, Nigeria, Uganda and Zambia – and will 
expand further in West Africa after acquiring a majority stake 
in a leading life insurer operating in Cameroon, Côte d’Ivoire 
and Togo. 
Africa
We are continuing to develop and expand our products, 
distribution capabilities and footprint to meet the evolving 
needs of our customers. A large and increasingly wealthy 
population in Asia, with low levels of insurance and asset 
management coverage, is creating a huge and fast-growing 
market for our health, protection and savings products.
Asia
We recognise that, as a global organisation operating in Asia, 
the US, the UK and Europe and Africa, our impacts are far 
broader than the financial value we generate. To meet the 
needs of customers, investors, employees and communities 
across four continents, we have a strategy that is focused on 
both our financial operations and our non-financial impact:

www.prudential.co.uk
Environmental, Social and Governance Report 2018  Prudential plc  3
M&GPrudential demerger –  
creating two distinct businesses
In March 2018 we announced our intention to demerge our UK and European 
business, M&GPrudential, from Prudential plc. On completion of the demerger, 
M&GPrudential will be an independent, capital-efficient UK and Europe savings and 
investment provider. Prudential plc will be a leading international insurance group 
focused on high-growth opportunities in Asia, the US and Africa. Both businesses 
will be headquartered and premium-listed in London, and our existing shareholders 
will hold interests in both Prudential plc and M&GPrudential.
We believe this important step will deliver long-term benefits to both businesses and 
to our shareholders, our customers, our colleagues and the communities we serve. 
Frequently asked questions
Prudential plc
M&GPrudential
Prudential  
Corporation  
Asia
Chief Executive Officer: Mike Wells
Headquarters: London
Premium listing: London Stock Exchange
Other listings: Hong Kong (Primary), Singapore, New York
Chief Executive Officer: John Foley
Headquarters: London
Premium listing (intended): London Stock Exchange
Prudential UK & Europe
M&G Investments
Prudential  
Africa
Jackson  
What is the rationale for the demerger?
Following separation, M&GPrudential will have more control 
over its business strategy and capital allocation. This will enable 
it to play a greater role in developing the savings and retirement 
markets in the UK and Europe through two of the financial sector’s 
most trusted brands, while Prudential plc will be able to focus on 
the attractive returns and growth potential of its market-leading 
businesses in Asia, the US and Africa.
How is the demerger progressing?
In preparation for the demerger, we have already completed 
a number of key steps, including:
—
— We announced that the Hong Kong Insurance Authority 
would be the Group-wide supervisor of Prudential plc after 
the demerger;
—
— We raised £1.6 billion of debt in September 2018. This debt 
issuance contained a substitution clause, allowing us to 
substitute M&GPrudential for Prudential plc as the issuer; 
—
— We established a new holding company for M&GPrudential and 
completed the transfer of the legal ownership of The Prudential 
Assurance Company Limited (M&GPrudential’s UK-regulated 
insurance entity) and M&G Group Limited to this company;
—
— We announced the independent Chair of M&GPrudential in 
October 2018 and the appointment of three non-executive 
directors in March 2019; and
—
— We completed the transfer of the legal ownership of our 
Hong Kong insurance subsidiaries from The Prudential Assurance 
Company Limited to Prudential Corporation Asia Limited.

4  Prudential plc  Environmental, Social and Governance Report 2018
www.prudential.co.uk
This report provides a summary 
of Prudential plc’s environmental, social 
and governance (ESG) performance. The 
contents meet the ESG ‘comply or explain’ 
requirements under the Rules Governing 
Listing of Securities on the Stock Exchange 
of Hong Kong Limited. More information 
on key topics, such as our tax strategy and 
corporate responsibility performance, can 
be found in our regular financial reports 
and stand-alone reports, available on 
our website. 
We aim to disclose our ESG management 
and performance as transparently as 
possible. The Group Audit Committee and 
the Board of Prudential plc have approved 
this report. In 2018 we considered and 
refreshed the material ESG issues on which 
the Group focuses to capture changes to 
the issues on which we report. This 
included identifying emerging ESG trends, 
risks and opportunities directly applicable 
to the Group and our stakeholders. The 
most significant resulting issues have been 
included in this report. 
Scope of the report
Information included in this report covers 
our activities in the 2018 calendar year, 
both at Group level and within our various 
operations globally, and does not include 
our joint venture partnerships.
Our approach to ESG 
As a global provider of savings and 
protection products, stewardship is core 
to what we do. We recognise that to help 
our customers look to the future with 
confidence, we need to take a long-term 
view on a wide range of issues that affect 
our business and the communities in which 
we operate. To do this, we maintain a 
proactive dialogue with our stakeholders 
– customers, investors, employees, 
communities, regulators and governments 
– to ensure that we are managing these 
issues sustainably and delivering long-term 
value. Further information on how we 
engage with our stakeholders can be 
found on page 5.
How we govern ESG 
The Board approved the establishment of 
our ESG Executive Committee (ESG ExCo) 
in 2018 to lead on how we identify, manage 
and report on material ESG risks. Our ESG 
sponsor, Jonathan Oliver (Group Executive 
Committee member), was nominated as 
Chair and is supported by senior leaders 
from Group Head Office across financial 
reporting, investor relations, risk, 
compliance, governance, investment and 
human resources. There is representation 
from our business units, provided by the 
Chief Investment Officers of our asset 
management businesses PPMA and 
Eastspring, M&G’s Head of Corporate 
Finance and Stewardship and Jackson’s 
General Counsel. The ESG ExCo meets 
quarterly and is required to report to the 
Board at least twice each year, with 
additional ad hoc reporting provided as 
necessary. Our ESG ExCo is focused on the 
holistic assessment of ESG matters material 
to the Group, raising matters for Board 
decision-making and implementing 
resulting decisions, supporting the 
sustainable delivery of the Group’s 
strategy. Its principal responsibility is 
to oversee the implementation of the 
recommendations of the Financial Stability 
Board’s (FSB) Task Force on Climate-
related Financial Disclosures (TCFD).
Our Group Governance Manual sets out 
the policies and procedures by which the 
Group operates. For further information 
on our Group-wide policies relating to our 
material ESG issues, refer to the Corporate 
Responsibility Review pages of our 2018 
Annual Report and Accounts.
 Across the Group, we continually 
monitor developments in the environment 
in which we operate, to make sure that 
the ESG issues that are important to 
our stakeholders are understood and 
managed. We strive to meet the 
expectations of our stakeholders in 
a transparent and fair manner, and this 
is underpinned by our comprehensive 
identification process, which enables us to 
address our material ESG issues effectively 
and constructively.
Content of the report
Our key ESG issues can be categorised into 
the following areas: customers, responsible 
investment, business integrity, people, our 
supply chain, technology, environmental 
performance and supporting our 
communities. The order in which these 
are presented does not reflect any priority. 
Our material ESG issues correspond to the 
‘Aspects’ within the ESG Reporting Guide 
detailed under the Hong Kong Listing 
Rules. In addition to our material ESG 
issues, we have incorporated the Health 
and Safety aspect within the ‘People’ 
section of our report. The aspect is covered 
in reference to how we provide a safe 
working environment for our employees. 
There were no significant areas of 
non-compliance with relevant laws and 
regulations set out in the Hong Kong 
Listing Rules ESG reporting ‘Aspects’.
About this report

www.prudential.co.uk
Environmental, Social and Governance Report 2018  Prudential plc  5
We engage with our stakeholders on 
a regular basis to inform the strategic 
decisions we make. Stakeholder groups 
include customers, employees, the wider 
supply chain, civic organisations, the media, 
institutional investors and regulators.
To reach a broad spectrum of stakeholders 
we use varied channels of communication, 
both through our local businesses and 
through our Group Head Office.
The table below summarises our global 
and local stakeholders, how we engage 
with them and their interest areas in 2018.
Engaging with our stakeholders
We recognise that our stakeholders are central to how we operate as a business.  
Through our engagement we are able to understand which ESG issues are important  
to them and how we should take on board their perspectives and incorporate them  
into our overall management. Feedback that we receive from our stakeholders supports  
how we ultimately govern ourselves, through policy and procedure. 
Stakeholder group
How does Prudential engage  
with these stakeholders?
Areas of interest raised by these 
stakeholders in 2018
Customers 
(including intermediaries)
Contact centre availability, face-to-face advice, 
annual statement dispatch, surveys, dedicated 
account managers, sales support units, 
business processing and servicing, telephone 
technical support teams.
Hold times when calling, service delivery, 
anti-money laundering requirements, difficulty 
in getting a new servicing agent, new business 
processing delays.
Investors
Website, half and full-year results, ESG Report, 
Annual Report, investor briefings, AGM, 
Chairman’s annual meeting with investors. 
Financial performance, integration of ESG within 
Group strategy and governance, customers, 
diversity and inclusion, cyber security and data 
privacy, responsible investment, climate risk and 
implementation of TCFD, and sustainable 
development agenda. 
Employees
(including contractors, 
potential recruits, agents 
and trade unions)
Surveys, awaydays, team meetings, 
performance appraisals, intranets, 
training programmes.
Diversity and inclusion, training opportunities, 
succession planning, the impact of 
transformation activities, including the demerger.
Governments 
(including central banks, 
stock exchanges and global 
policy bodies)
Meetings, partnering and/or speaking at 
public and private events, memberships, 
tax strategy, input into policy forums.
Prudential as a local, responsible business, 
including how we create jobs and build capacity 
across the economy, taxes, transparency, 
governance, responsible financial services, 
sustainable finance. 
Regulators
Regular meetings, responses to information 
requests and consultation papers.
Global and national perspectives on standard-
setting, sustainable finance, international 
capital standards, governance and individual 
accountability, conduct standards, customer 
protection, climate-related risk.
Civil society
Meetings, data sharing, ad-hoc requests for 
support, responses to campaigns, surveys. 
Inclusion, education, disaster relief, 
safeguarding, low-carbon transition, living 
wage, climate-related risk, tax transparency.
Media
Media releases, social media, regular meetings 
and calls, discussions between media and 
senior executives, monitoring of media output.
Financial performance, business strength, 
demerger, investment in the low-carbon 
economy, environmental performance.
Suppliers
Pre-sourcing assessments, contract 
negotiations, monthly supplier meetings and 
quarterly performance review meetings.
Data protection, anti-bribery and corruption, 
human rights, modern slavery, health and safety.

6  Prudential plc  Environmental, Social and Governance Report 2018
www.prudential.co.uk
Customers
Our relationships with our customers are long-term and are 
central to our ability to continue creating sustainable value. 
We provide fair, transparent, inclusive and accessible 
products to best serve our customers’ needs and to support 
them in de-risking their lives. We are constantly looking for 
new ways to innovate and provide the highest level of service.
Our customer commitments
It is our duty as a responsible business to 
uphold the interests of our customers. We 
are guided in this by our Group Customer 
Commitments Policy, which supports the 
delivery of the five customer commitments 
in our Group Code of Business Conduct. 
These are: 
1	 Treat customers fairly, openly and 
honestly;
2	 Provide and promote a range of 
products and services that meet 
customer needs, are clearly explained 
and deliver real value; 
3	 Maintain the confidentiality of our 
customer information; 
4	 Provide and promote high standards 
of customer service; and 
5	 Act fairly to address customer 
complaints and any errors.
Increasing access to health 
and financial protection
In Asia, the health protection gap remains 
large and continues to expand. In line with 
our commitment to help close this gap and 
protect our customers’ health, we have 
continued our efforts to create best-in-
class health capabilities by offering more 
comprehensive and flexible coverage and 
a wider range of value-added services. 
—
— Hong Kong: Prudential Hong Kong 
has established itself as a leader in 
the growing critical illness segment, 
introducing PRUhealth Critical Illness 
Extended Care (CIE) and PRUhealth 
Critical Illness Multi-Care Prestige 
(CIM2) during 2018. CIE provides 
in-depth protection against 118 disease 
conditions. CIM2 is an integrated, 
multi-claim critical illness protection 
plan that offers 100 per cent of life 
protection against 126 disease 
conditions. The plan offers market-
distinct home care services to facilitate 
rehabilitation at home, including a 
digital portal to monitor the progress of 
recovery and share status updates with 
family members. 
—
— Malaysia: We launched PRUcancer X, 
a cancer plan that addresses the high 
costs of treatment and the impact of any 
potential loss of income if a customer 
has to stop work to focus on recovery. 
It offers the highest coverage of any 
cancer-specific insurance product in the 
market, giving patients the opportunity 
to seek the best care in-country and 
overseas. PRUmy child plus and PRUmy 
medical plus were launched to meet the 
growing demand for customisable and 
flexible insurance products. PRUmy 
child plus provides comprehensive 
protection to both the mother and the 
unborn child. After the child is born, 
critical illness or savings options can be 
added to the plan to provide the child 
with additional coverage. This plan has 
no annual and lifetime limits, ensuring 
that customers are protected with 
continuous coverage even as healthcare 
costs continue to increase.
—
— Singapore: Recognising that most 
of the population is not sufficiently 
protected against the financial impact of 
critical illnesses, we launched PRUtriple 
Protect, which provides financial 
protection against 36 critical illnesses, 
including cancer. We also introduced 
PRUvital Cover, the first of its kind, 
which offers coverage to people with 
existing medical conditions. This 
provides protection to individuals who 
have been diagnosed with type 2 
diabetes and the three ‘health highs’ 
– high blood pressure, high cholesterol 
and high body mass index.
—
— Thailand: To help more people 
access adequate medical coverage, 
we introduced PRUeasy care. This 
affordable, stand-alone term plan 
provides a range of benefits, including 
inpatient advantages of up to four 
hospital stays per year. 
Increasing access to financial protection is 
a significant socio-economic issue and we 
seek to provide the right products through 
appropriate means to improve access for 
new and existing customers. Our business 
units comply with the relevant product 
advertisement or labelling requirements 
of the local markets in which they operate. 
Recognising the role that distribution 
plays in our ability to reach customers, 
we continued to extend our partnerships 
with banks across Africa in 2018. We 
agreed a new long-term partnership with 
a bank, helping us bring market-leading 
products and services to up to 1.2 million 
new customers, through 69 bank branches. 
We also extended a previous partnership, 
extending our geographic reach and 
providing savings and protection products 
to the previously uninsured. 
After launching our ‘never lapse’ feature 
in Ghana in 2017, we rolled this out across 
Kenya in 2018, enabling customers to keep 
their policy and its benefits, regardless of 
unforeseen financial circumstances. After 
the first six months’ premium, customers 
will not lose their savings if they fall behind 
on their payments, providing greater 
flexibility to customers and helping them 
to achieve their financial goals.

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Environmental, Social and Governance Report 2018  Prudential plc  7
Engaging and empowering 
consumers
We seek to provide the best solutions 
that we can for customers. We also strive 
to communicate information about our 
products in a fair and transparent way. 
In the US, Jackson continues to be a leader 
in shifting perspectives and simplifying 
the language around financial products. 
In 2018, Jackson led the creation of 
a ground-breaking, industry-wide coalition 
seeking to help mitigate America’s looming 
retirement crisis, the Alliance for Lifetime 
Income. The Alliance is a tremendous leap 
forward in Jackson’s ongoing commitment 
to educating Americans about the 
importance of lifetime income in retirement 
planning. The Alliance, which Jackson 
co-chairs, comprises 24 financial services 
organisations in the US that have united 
around a shared purpose – to educate 
Americans on the risk of outliving their 
income, so that they can enjoy their years in 
retirement. The Alliance rolled out a 
nationwide, multi-year educational 
campaign designed to help consumers 
and financial advisers discuss not only 
the importance of income planning in 
retirement, but also the importance of 
protected income in retirement – income 
that is sheltered from market volatility and 
longevity risk.
Following on from the launch of Jackson’s 
website, The Financial Freedom Studio, 
in 2017, the site has evolved to offer 
more financial education resources for 
consumers. The Studio is a forum to bring 
together the breadth of perspectives and 
experiences of industry experts and 
thought leaders who share their unique 
points of view around financial and life 
planning. These regular, third-party 
contributors provide actionable, practical 
‘how-to’ tips, offering an objective, 
non-product-centric perspective to help 
consumers make thoughtful and informed 
decisions about their financial lives. The 
Studio now provides video content, and 
during 2018 traffic to the Studio doubled, 
with over 80 per cent of the traffic being 
new visitors. 
Designing the digital health ecosystem 
for our customers
Our ambition is to protect the health and 
wealth of our customers by the use of 
artificial intelligence (AI) to enable access 
to affordable and quality healthcare. 
As a life and health insurer, and given 
our customers’ increasing needs in 
healthcare, we want to play a greater role 
in preventing and postponing illness in 
order to protect our customers. Through 
partnerships with other healthcare 
providers, we are looking to introduce 
the following five areas of services to 
our customers: 
—
— Lifestyle and wellness: By tracking 
daily activities, such as sleep and 
dietary patterns, we can provide 
coaching to encourage our customers 
to improve their health by maintaining 
a healthy lifestyle;  
—
— Risk factor identification: Monitors 
current health and identifies future 
risk factors through the use of DNA 
testing and health assessments; 
—
— Disease management and recovery: 
Chronic disease management 
programmes can help customers 
maintain or even improve their 
health conditions. This can improve 
adherence to medications, diet and 
exercise regimes;  
—
— Triage and symptom diagnosis: 
Directs customers to appropriate 
and timely treatments based on 
their interactions with the AI-backed 
chatbot or data collected from 
various devices; and  
—
— Telemedicine, e-prescription 
and physical doctors: Avoiding the 
need to first physically visit a doctor, 
consultations with doctors can 
be arranged through video before 
deciding if a physical visit is required. 
We can also arrange medication 
to be sent to the user’s home or 
office address.  
Underlining our commitment to affordable 
and accessible healthcare, Prudential 
Corporation Asia has entered into an 
exclusive partnership with the healthcare 
technology and services company, 
Babylon Health. Through this partnership, 
we will be able to provide Babylon’s AI 
expertise to new and existing customers in 
up to 12 markets in Asia. A comprehensive 
set of digital tools will be available 24/7, 
enabling customers to take control of 
their health and make better-informed 
healthcare decisions. By providing health 
and wellness services digitally at scale, we 
are significantly expanding our role from 
protection to encompass the prevention 
and postponement of adverse health 
events, helping to close the healthcare 
gap in Asia.

8  Prudential plc  Environmental, Social and Governance Report 2018
www.prudential.co.uk
Customers (continued)
Customer service and 
addressing complaints
We are committed to offering our 
customers the highest standards of 
professional care and service. We take our 
commitment seriously when training our 
personnel, who deliver service consistent 
with our values. 
Where customers have cause to complain 
to us, we have documented procedures 
in place to manage complaints received 
through multiple touchpoints, in a timely, 
robust and professional manner and 
in accordance with our Customer 
Commitments Policy and local regulatory 
requirements. Business units conduct 
analysis of complaints to understand their 
underlying root causes, with the aim of 
reducing the overall number of complaints, 
and perform ongoing monitoring to 
identify issues which could lead to 
customer detriment and take prompt 
action to address any errors.
In some jurisdictions in which we operate, 
customers can refer complaints to 
independent dispute resolution bodies. 
In the UK, customers have the right to 
approach the Financial Ombudsman 
Service (FOS) for independent complaint 
adjudication if they remain unhappy with 
the outcome of a complaint raised directly 
with a financial services provider. The FOS 
will investigate the complaint and issue 
an adjudication with its findings to the 
customer and financial provider. We have 
averaged more than 80 per cent since 2009 
on the FOS adjudication support rate, 
which is published annually and based on 
industry-wide data. 
Industry awards
In Asia, Prudential won eight awards at 
the Bloomberg BusinessWeek Financial 
Institution Awards 2018, including 
‘Insurance Company of the Year’ for 
the fourth year in a row. Prudential 
Malaysia won the Reader’s Digest 
Trusted Brand award, as voted by 
consumers, and the Best Brand 2018 
award at YouGov’s Brand Index awards 
for the third consecutive year. 
In the US, Jackson was awarded 
Outstanding Achievement at the 
WealthManagement.com Industry 
Awards for its Retire on Purpose Platform. 
Our Financial Freedom Studio website 
and Retire on Purpose campaign both 
won a Grand Award at The APEX Awards 
for Publication Excellence, where we also 
won six awards of Excellence. At The 
Communicator Awards, we gained four 
Gold Awards of Excellence and 29 
Awards of Distinction for our marketing 
and communications. 
In the UK, we were again awarded our 
‘Five Star’ ratings in the Life & Pensions 
and Investment categories at the Financial 
Adviser Service Awards, as well as the 
Outstanding Achievement Award. For the 
eighth year running, we were awarded 
Best Investment Bond Provider at the 
Investment Life & Pensions Moneyfacts 
Awards, as well as the Best Income 
Drawdown Provider Award for the second 
year running. At the European Pension 
Awards, M&G won Multi Asset Manager of 
the Year and Property Manager of the Year.

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Environmental, Social and Governance Report 2018  Prudential plc  9
Responsible investment
As a life insurer, asset owner and manager, we are long‑term 
stewards of our customers’ assets and we recognise the 
importance of ESG matters. We also recognise our 
responsibility to our customers, society and the environment 
to effectively integrate associated considerations into 
investment decisions and fiduciary and stewardship duties, 
helping to improve outcomes for our customers and finance 
a more sustainable economy.
Our responsible investment 
approach 
At Prudential, we take an inclusive 
approach to responsible investment, 
seeking to integrate ESG considerations 
into our investment processes and 
stewardship activities through active 
ownership practices and engagement 
with investee companies. We also maintain 
the ability to exclude entities from our 
internal investment mandates, where their 
practices, policies or procedures conflict 
with our Group values, or where we 
see a need to explicitly recognise 
international consensus. 
As a long-term investor, we consider both 
financial and non-financial factors in our 
investment processes, decision-making 
and ownership practices that may have 
a meaningful impact on our clients’ 
long-term investment outcomes. Similarly, 
as active asset owners of the capital we 
invest on behalf of our clients, we believe 
that due consideration of the various 
factors that can impact investment returns 
is part of our fiduciary duty to our customers.
Governing our ESG investment 
risks and opportunities
We operate an asset management business 
in each of our three main regions – 
Eastspring in Asia, PPMA in the US and 
M&GPrudential in the UK & Europe. 
In recognition of the distinct investment 
risks faced by our asset management and 
ownership businesses through investing 
in different markets and asset classes, each 
business unit manages ESG-related matters 
through the pursuit of local, business-
specific responsible investment strategies. 
Our Group Responsible Investment 
Framework draws together the individual 
ESG-related investment strategies and 
activities of our global businesses and is 
aligned to our Group Code of Business 
Conduct. The Framework provides a 
mechanism to inform our senior executives 
of the local ESG investment strategies of 
each of our businesses. 
Central to the Framework is our Group 
Responsible Investment Advisory 
Committee (GRIAC), which comprises the 
Chief Investment Officers or their delegates 
of each of our asset management and 
insurance business units. The GRIAC is 
responsible for overseeing our responsible 
investment activities and further 
developing our overall Group-wide 
responsible investment strategy. Our 
Group-wide responsible investment 
activities, overseen by the GRIAC, are 
periodically reported to the Board and 
senior executive committees.
Strengthening our governance 
of responsible investment
Following on from the establishment of the 
GRIAC and Group Responsible Investment 
Framework in 2017, our governance of 
responsible investment activities has 
continued to be strengthened during 2018 
by our businesses. Each asset management 
business now has a clearly designated 
responsible investment committee. The 
GRIAC links these independent business 
unit committees, serving as a forum for 
sharing best practice innovations across 
the Group. It also enables our Group-wide 
Responsible Investment Standards to be 
adopted in a consistent manner across our 
business units, while still affording them 
the flexibility to manage investments in 
a way that balances the needs of their 
clients and the local regulatory 
environments in which they operate. 
In 2018 our Group Responsible Investment 
Standards, which underpin our Group 
Responsible Investment Framework and 
Principles, were in the road-testing phase 
with our businesses, which focused 
on developing internal monitoring and 
reporting capabilities to support the 
implementation of the Standards. In Asia, 
for example, Prudential Corporation 
Asia has implemented a new investment 
portfolio and risk management system as 
part of the ongoing enhancement of its 
approach to ESG integration. This provides 
its regional and local investment offices 
with increased transparency of how ESG 
factors are being incorporated into its 
investment decisions, manager selection 
and manager reporting process, in line with 
its commitment to responsible investing. 
Eastspring has also embraced technology 
solutions in 2018, with Group Digital 
working in partnership with the investment

10  Prudential plc  Environmental, Social and Governance Report 2018
www.prudential.co.uk
Responsible investment (continued)
teams to develop tools that utilise AI and 
learning to facilitate faster and scalable 
ESG screening of investee companies. 
Assessing the implications 
of evolving expectations of the 
Group in financing a sustainable 
and low-carbon economy
Over 2018 there have been a number 
of regulatory, supervisory and investor-
driven sustainable finance and climate-
related financial risk initiatives. From a 
supervisory perspective, the International 
Association of Insurance Supervisors and 
the UK’s Prudential Regulation Authority 
(PRA) have made clear that they expect 
insurers to assess and consider the risks 
from climate change. We engaged with the 
PRA on the topic during 2018 and continue 
to focus on developing our practices in this 
area, with the implications for us as a Group 
being considered by our Board. Climate 
risk is under similar scrutiny from the UK’s 
Financial Conduct Authority, and the 
Securities and Futures Commission in 
Hong Kong launched its Strategic 
Framework for Green Finance. In addition 
to assessing the implications for the Group 
of evolving regulatory and supervisory 
expectations, we continued to monitor the 
changing legislative landscape, including 
developments set out in the European 
Commission’s Action Plan for Financing 
Sustainable Growth. Our approach to 
meeting these evolving expectations of 
financial institutions is twofold: to consider 
the need for enhancing our ESG integration 
and disclosure practices and to continue 
to increase our industry participation 
and collaboration. 
Climate risks and opportunities 
and the FSB’s Task Force on Climate-
related Financial Disclosures (TCFD)
As a life insurer, asset owner, asset 
manager and occupier of over 400 
properties worldwide, we recognise both 
the risks and opportunities posed by 
climate change to our businesses, and our 
Group’s impact on the environment. With 
respect to the impact that climate change 
poses to our businesses, we are cognisant 
that the risks and opportunities may 
manifest in a number of different ways. 
Further detail on our approach to managing 
our direct operational environmental 
impacts is outlined in the ‘Environmental 
performance’ section of this report 
(page 25). 
We as a Group welcomed and are 
a signatory to the recommendations of the 
FSB’s TCFD. The management of climate-
related risks and opportunities is a Group 
Strategic Priority, and the delivery of these 
priorities is linked to the remuneration 
package of relevant executives in the 
business. Our governance structures, 
which provide oversight in this important 
area, were enhanced in 2018 through the 
establishment of our ESG ExCo. The ESG 
ExCo will oversee the Group’s processes 
to assess the climate‑related risks and 
opportunities facing our businesses, which 
are currently under development, and the 
identification and delivery of supporting 
implementation activities, with the view to 
enhancing our climate-related financial risk 
management practices. Over the next year 
the Group will take action to enhance our 
climate-related financial risk management 
practices and disclosure. 
Our strategy needs to be tailored to the local 
US, Asian, European and African countries 
in which we operate. Climate change is a 
material risk for the global economy and, in 
conjunction with other global trends, may 
impact each part of the world differently. 
The physical risks will be as difficult to 
determine as the risks resulting from 
transitioning to a low-carbon economy. 
Accompanying those risks are inherent 
investment opportunities that we will 
continue to explore. We are keen to position 
our organisation in order to best place us to 
respond to and manage material climate 
risks and capitalise on the opportunities 
from the economy’s transition. 
Our investment businesses have also 
begun to consider the implications of 
climate-related risks and opportunities 
on investment activities, with relevant 
developments including M&G Investments 
signing up to use the new MSCI Carbon 
Portfolio Analytics tool in 2018. This tool 
enables portfolio managers to monitor 
a portfolio’s carbon emissions, carbon 
intensity and fossil fuel reserves, 
supporting enhanced carbon investment 
risk management. Similarly, in order to 
M&G engages Britvic on  
reducing single-use plastic
M&G met with Britvic’s head of 
sustainability to understand soft drinks 
maker Britvic’s strategy to reduce 
single-use plastic, improve recyclability 
of products, deliver innovation and 
demonstrate governance in this area. 
While acknowledging that Britvic’s 
disclosure practices to date have been 
commendable, M&G emphasised the 
importance of alignment with TCFD and 
CDP (Carbon Disclosure Project) 
disclosure. As a leading soft drinks 
business with operations in the UK, 
Ireland, France and Brazil, Britvic has 
committed to 2025 targets by signing up 
to the UK Plastics Pact. 
These commitments to eliminate 
problematic or unnecessary single-use 
plastic would ensure that: 100 per cent 
of  plastic packaging is designed and 
manufactured to be reusable, recyclable 
or compostable; 70 per cent of plastic 
packaging is effectively recycled or 
composted by the consumer; and 
the company sources 30 per cent 
average recycled content across all 
plastic packaging. 
M&G has tabled this issue for discussion 
at the next meeting with the CEO and 
the desired outcome is to see Board 
oversight of this commitment linked 
to remuneration.

www.prudential.co.uk
Environmental, Social and Governance Report 2018  Prudential plc  11
support enhancing industry climate-
related disclosure practices, in 2018 M&G 
collaborated on a pilot initiative sponsored 
by the United Nations Environment 
Programme to work on climate-change 
scenario modelling for portfolios across 
different asset classes, which is a central 
part of the TCFD framework. The key 
output will be an industry climate scenario 
modelling tool.
Industry participation and 
collaboration on sustainable 
growth and climate change 
Principles for Responsible 
Investment (PRI)
M&G Investments, PPMSA (our asset 
manager in South Africa), Eastspring 
Investments and now PPMA are signatories 
to the PRI. These voluntary principles 
offer guidance to understand the 
implications of ESG issues and to embed 
their consideration into investment 
practices and processes. The PRI reports 
for M&G Investments and PPMSA can be 
found here: M&G Investments, PPMSA. 
Strengthening Asian 
stewardship commitments
Both Prudential Corporation Asia and 
Eastspring have continued to support the 
development of Stewardship Codes across 
the Asian region by becoming signatories 
to a number of new country initiatives in 
addition to those they have already 
endorsed. In Taiwan, both Prudential 
Corporation Asia and Eastspring became 
signatories in 2018 to the new Taiwan 
Stewardship Code, which includes among 
its principles a commitment to monitor 
investee companies and maintain 
appropriate dialogue and interaction. 
In addition, during 2018 Prudential 
Corporation Asia joined Eastspring in 
supporting the Singapore Stewardship 
Principles for Responsible Investors and 
Eastspring also became a signatory to the 
Korean code.
Climate Action 100+ and the 
Institutional Investors Group 
on Climate Change
M&G continues to participate in the 
Climate Action 100+ initiative, since joining 
in 2017. This initiative brings together more 
than 250 global institutional investors to 
engage with the world’s largest corporate 
greenhouse gas emitters to improve 
climate-related financial disclosure and 
curb emissions. M&G also remains a 
member of the Institutional Investors 
Group on Climate Change, which provides 
a useful forum for collaboration on 
this topic.
Fostering an ESG mindset at Eastspring
Eastspring Investments signed up to the 
Principles for Responsible Investment 
(PRI) in 2018 and has since placed 
a strong emphasis on internal education 
on ESG issues and capacity-building to 
support the firm’s responsible investment 
development. In May, two tailored 
sessions were arranged for all Eastspring 
investors to explore potential issues 
that could impact capital markets and 
companies, while also outlining effective 
ways to integrate non-financial ESG 
factors into investment decisions.
The sessions, which were designed to 
encourage collaboration and the sharing 
of investment ideas, saw Sustainalytics 
discuss how ESG information can be 
turned into analytics to aid investment 
decisions, while the Worldwide Fund 
for Nature explored what investors can 
do to assess the climate alignment of 
their portfolio.
In July 2018, Eastspring hosted the first 
PRI round-table discussion on ESG 
factors in credit risk and ratings in 
Singapore. The event was part of a series 
of rating forums that the PRI is organising 
around the world for credit risk analysts 
and fixed income portfolio managers/
strategists as part of the PRI ESG 
in Credit Ratings Initiative. 
Eastspring’s development continues 
into 2019 with further sessions with 
the Worldwide Fund for Nature and the 
Asia Investor Group on Climate Change, 
building awareness of key climate change 
risks and the opportunities for the asset 
management industry. Climate change is 
a pertinent focus in the midst of changes 
to regulatory and industry standards, 
with an increased expectation on 
companies to develop climate and 
sustainability capabilities.

12  Prudential plc  Environmental, Social and Governance Report 2018
www.prudential.co.uk
Climate Bonds Initiative and 
the Asian Investor Group on 
Climate Change
In January 2019, Eastspring joined M&G 
to become a member of the Climate 
Bonds Initiative. Eastspring also joined the 
Asian Investor Group on Climate Change. 
Through 2018 Eastspring participated 
in round-tables organised by its local 
regulator, Monetary Authority of Singapore 
(MAS), to help raise awareness of climate 
risk in the region and promote the 
integration of ESG frameworks in investment 
strategies. Also in Asia, Prudential Singapore 
has engaged with its local regulators (the Life 
Insurance Association Singapore and MAS) 
to discuss its approach to climate change 
risk  as an Asian asset owner.
Asset Owner Disclosure Project
In 2018, we again participated in the 
Asset Owner Disclosure Project, a survey 
managed by ShareAction to assess the 
insurance sector’s response to addressing 
climate risk, where we ranked 30th out 
of 80 (2017: 31st) in its Global Climate 
Insurance Index (an assessment of the 
80 largest insurance companies globally). 
In its 2017 Asset Owner survey, we ranked 
113th out of the world’s 500 largest 
asset owners, including pension funds, 
sovereign wealth funds, insurance 
companies, foundations and endowments. 
The next benchmarked assessment is 
anticipated in 2019. In the 2017 Asset 
Manager survey, M&G Investments ranked 
fourth out of the world’s top 50 asset 
managers for management of the financial 
impact of climate change on investment 
portfolios. The next benchmarked 
assessment is anticipated in 2019.
ClimateWise
Facilitated by the Cambridge Institute for 
Sustainability Leadership, ClimateWise 
supports the insurance industry to better 
communicate, disclose and respond to the 
risks and opportunities associated with the 
climate risk protection gap. Members 
produce an annual submission addressing 
six ClimateWise principles and are ranked 
against their peers. In 2018, we improved 
our score, achieving 78 per cent, compared 
with 71 per cent in 2017. Our performance 
in ClimateWise against six core principles is 
independently audited by PwC. 
Enhancing our ESG-focused 
investment product offering
M&GPrudential continues to innovate in 
this field, launching two new retail funds in 
2018 – the M&G Positive Impact Fund and 
the M&G Sustainable Multi Asset Fund, 
both employing a structured approach to 
ESG and both investing in companies that 
are aligned with the United Nations 
Sustainable Development Goals. 
The Positive Impact Fund seeks to invest 
in companies that have a positive impact 
on society through addressing the world’s 
major social and/or environmental 
challenges, while providing attractive 
financial returns. Sustainability and impact 
considerations are fundamental in the 
stock selection process. The M&G Impact 
team undertakes a ‘triple i’ approach 
to identifying impactful investments, 
analysing the investment case, intentionality 
and impact of a company to assess its 
suitability for the fund. The Fund won 
Best New Entrant (Fund) at the 2018 
Investment Week Sustainable and ESG 
Investment Awards.
In Malaysia, Prudential Corporation Asia 
plans to launch five new investment-linked 
products in 2019, which will all explicitly 
embed ESG principles as part of the 
investment process. 
Responsible investment (continued)

www.prudential.co.uk
Environmental, Social and Governance Report 2018  Prudential plc  13
Business integrity
We embed responsible and ethical behaviour across our 
organisation. From how we conduct ourselves, shape and 
monitor our culture and meet our responsibility to prevent 
bribery and corruption, through to transparency in our 
tax practices, our contribution to the global economy and 
our leadership role in our industry, we are a responsible, 
ethical business. 
Our Code of Conduct
Our governance framework, setting out 
the principles by which we conduct our 
business and ourselves, is composed of our 
Group Code of Business Conduct and our 
Group Governance Manual. Our Group 
Code of Business Conduct sets out the 
ethical standards that the Board expects 
of itself, our employees, agents and others 
working on behalf of the Group. The Group 
Governance Manual consists of a range 
of policies covering all of our business 
units, setting out our principles for good 
governance. We review these policies on 
a regular basis to ensure that we meet the 
expectations of our stakeholders.
Financial strength 
We contribute to financial stability and 
sustainability in all of the markets in which 
we operate. We are strongly aware of our 
purpose, which is to help people de-risk 
their lives and deal with their biggest 
financial concerns. Our products and 
services are designed and delivered with 
that purpose clearly in mind. Through the 
combination of our consistent strategy, our 
diversified portfolio of businesses and our 
disciplined execution, we have continued 
to produce high-quality earnings and 
deliver consistent returns for our investors 
and good outcomes for all our stakeholders. 
For details on our financial performance 
last year, see our 2018 Annual Report. We 
work in partnership with policymakers and 
regulators. In 2018 we remained actively 
engaged in global regulatory policy 
debates with standard-setters such as the 
International Association of Insurance 
Supervisors (IAIS) as well as with industry 
trade bodies, on the soundness of the 
international financial system and the 
conduct of business regulation. To 
underpin insurance penetration rates, 
protection and savings, we support the 
process of deepening capital markets, 
building robust regulatory and legal 
frameworks and enhancing financial 
literacy in the markets in which 
we operate, which in turn supports 
economic growth and stability.
Responsible tax practices 
The responsible and sustainable 
management of our tax affairs helps us to 
maintain constructive relations with our 
stakeholders and play a positive role in the 
economy. We take a long-term perspective 
and balance our responsibility to support 
our business strategy with our responsibility 
to the communities in which we operate, 
which need sustainable tax revenues. 
We understand the importance of paying 
the right amount of tax on time. We 
manage our tax affairs transparently and 
seek to build constructive relationships 
with tax authorities in all the countries in 
which we operate. Our tax risk policy 
outlines our processes to identify, measure, 
control and report on risk across four 
categories: technical judgements, 
operations, regulations and reputation.
Our tax strategy is published annually 
and complies with the mandatory 
requirements under the UK 2016 Finance 
Act, focusing on: 
—
— Acting responsibly and taking an 
objective view in all of our tax matters;
—
— Managing tax in line with our Group 
governance and risk management 
procedures; and
—
— Ensuring transparency and engagement 
with all our stakeholders. 
Our tax strategy continues to include 
a number of additional disclosures, 
including a breakdown by country of 
revenues, profits and taxes for all countries 
where more than £5 million tax was paid 
and more detail on what drives our tax 
payments, demonstrating that our tax 
footprint (ie where we pay taxes) is 
consistent with our business footprint. 
Prudential was highly commended, for 
the second successive year, in the Tax 
Reporting category of PwC’s Building Public 
Trust awards. Independent judges stated 
that our reporting on tax risks, and appetite 
for them and how they are managed, goes 
into a level of detail not often seen, and that 
we had done well to explain the complexity 
of insurance tax clearly. Judges were also 
impressed by how we set the tone of 
openness and transparency, singling out 
the clear reconciliation and breakdown of 
cash tax paid versus the effective tax rate, 
supported by an easily understood diagram.
In 2018, the Group’s global tax contribution 
was £2,839 million. This significant 
contribution plays an important part in 
helping the communities in which we 
operate provide valuable public services 
and build infrastructure for the benefit of 
the wider community and the economy.
We are continuing to monitor developments 
in the tax transparency agenda and look 
to further develop the disclosure of 
meaningful tax information to help our 
various stakeholders’ understanding of our 
tax footprint. More information on our tax 
strategy, including details of how much tax 
we pay, how we manage our tax affairs and 
the governance and management of tax risk 
can be found here.

14  Prudential plc  Environmental, Social and Governance Report 2018
www.prudential.co.uk
Business integrity (continued)
Fighting financial crime
We have a global footprint and maintain 
business relationships with a range of 
parties, such as agents and intermediaries, 
who act on our behalf. As such, financial 
crime is a key risk and we are committed 
to fighting it through the maintenance 
and implementation of policies and 
procedures on anti-money laundering, 
counter-terrorist financing, anti-bribery 
and corruption and anti-fraud, 
and through our commitment to 
industry‑wide efforts.
We have Group-wide policies in place in 
relation to anti-money laundering, fraud, 
counter-terrorist financing and sanctions. 
These policies help to:
—
— Ensure we fully comply with all relevant 
local regulatory and statutory 
requirements;
—
— Effectively identify and understand the 
customers and third parties with which 
we do business;
—
— Monitor customer risk profiles and 
report suspicious activities; and
—
— Undertake robust risk-based due 
diligence and ensure all staff receive 
appropriate training to be able to 
recognise, avoid and report any 
potential wrongdoing. 
During 2018 we updated our Group 
Anti-Bribery and Corruption Policy in order 
to provide more and better guidance to our 
diverse businesses. In particular, we added 
further guidance on gifts and hospitality 
and how we deal with government officials 
and highlighted the importance of due 
diligence when dealing with third parties, 
reflecting themes we had identified from 
recent Foreign and Corrupt Practices Act 
enforcement cases. The Group Anti-
Bribery and Corruption Policy is cascaded 
down through local business unit policies 
and procedures, which ensure adherence 
to Group requirements, applicable laws 
and expectations of local regulators.
We have continued to deliver advanced 
training on anti-bribery and corruption risks 
and regulations to cover senior managers 
and members of staff in higher-risk roles, 
particularly those who manage relationships 
with third parties. These training sessions 
were delivered face-to-face. All members of 
staff were also required to complete the 
mandatory annual computer-based training 
on anti-bribery and corruption, which 
ensures that our employees are able to 
recognise, avoid and report any potential 
instances of bribery or corruption, and we 
closely monitor the completion rates. 
In 2017 the UK Criminal Finances Act 
introduced the corporate offence of failure 
to prevent the facilitation of tax evasion. 
Financial crime computer-based training 
across the Group has been updated to 
include additional material on this offence 
and the Group’s commitment to avoid the 
facilitation of tax evasion. 
The decision by the US to end its 
involvement in the Iran nuclear weapons 
treaty, the Joint Comprehensive Plan of 
Action, resulted in the re-introduction of 
comprehensive Office of Foreign Assets 
Control sanctions against Iran from 
November 2018 and, as a consequence, 
the Group Anti-Money Laundering and 
Sanctions Policy continues to prohibit 
dealings with Iran.
We perform annual risk assessments 
across all of our businesses to assess and 
monitor their risk profile. During 2018 we 
implemented an automated transaction 
monitoring system in our Hong Kong and 
Singapore life businesses and plan to 
implement this system in other jurisdictions 
in Asia during 2019. 
Our policies require our business units to 
monitor compliance with our policies and 
the regulatory framework by which we are 
governed. In 2018 the Financial Crime 
Compliance teams across the Group 
undertook 23 compliance monitoring 
reviews on anti-money laundering, 
sanctions and anti-bribery and corruption. 
The Financial Crime teams are committed 
to continuing professional development 
and participated in numerous conferences 
and forums, such as the AML Professionals 
forums held in London, a specialised 
ABC training course for Compliance 
practitioners, based on the international 
standard ISO 37001 on Anti-Bribery 
Management Systems, and insurance 
industry forums covering AML, ABC 
and sanctions.
The Group Audit Committee continues to 
review the effectiveness of the programme 
annually and the Group Financial Crime 
team regularly updates the committee on 
risks and controls.
Whistleblowing
We operate a Group-wide whistleblowing 
programme, Speak Out, which is able to 
receive reports from a variety of channels 
and is supported by an independent third 
party that captures and comprehensively 
records matters raised. In 2018 the Group 
refreshed communications, updated 
staff training and upgraded the case 
management reporting system to improve 
investigations. Over 45 per cent of 
reporters chose to self-identify, suggesting 
a high degree of confidence in the integrity 
of the programme.
To help us to identify further improvements 
and contribute to knowledge-sharing in the 
industry on whistleblowing, we participate 
in the ‘Protect’ benchmarking forum 
(formerly known as Public Concern at 
Work). This forum has developed a 
benchmark, which the Group applied in 
2018, to measure the effectiveness of 
a firm’s whistleblowing programme. The 
Group scored well in all three aspects of 
whistleblowing governance, engagement 
and operations, but the outcome will form 
the basis for qualitative improvements to 
the programme in 2019. Whistleblowing 
reporting is overseen by the Group Audit 
Committee, with any material issues 
reported to the Board.
Recognition 
Reflecting the high standards by which 
we conduct our business, we were again 
named as one of ‘Britain’s Most Admired 
Companies’ at Management Today’s 
business awards in 2018. We won the 
insurance category of the prestigious 
awards for the second year in a row, with 
winners being selected by an independent 
survey of peers and sector experts.

www.prudential.co.uk
Environmental, Social and Governance Report 2018  Prudential plc  15
People
An inclusive working environment, where we continually 
develop our talent, reward great performance, protect 
our people and value our differences, is key in delivering 
outstanding results for our customers, shareholders 
and communities.
Diversity and inclusion 
Organisations benefit from a number of 
diverse perspectives and experiences and 
we consider this is important to our success 
today and in the future. Diversity and 
Inclusion (D&I) is one of our strategic 
objectives. Tim Rolfe, Group HR Director, 
is the executive sponsor across the Group. 
In 2018 Nic Nicandrou, Chief Executive of 
Prudential Corporation Asia, acted as the 
Board member accountable for D&I work. 
The Group D&I policy ensures that we 
provide equal opportunities to our 
workforce through fostering an 
environment where our employees are 
treated with dignity and respect, ensuring 
an appropriate diversity of skill sets and 
backgrounds to deliver success across the 
Group. Our policy supports an inclusive 
culture, where all our employees are 
protected against discrimination and 
provided with opportunities regardless of 
their age, caring responsibilities, disability 
status, ethnicity, gender, religion, sexual 
orientation, professional, social, 
educational or cultural background, or 
employment contract type. Through our 
policy, we govern our business units to 
have effective approaches in place to 
comply with local regulation, provide 
equality of opportunity and encourage 
our suppliers to promote equality of 
opportunity. All of our businesses, 
including Group Head Office, are 
required to report regularly to Group 
Human Resources on their compliance 
with the policy.
We have a strategic, long-term approach 
to D&I. The Nomination & Governance 
Committee has responsibility for 
developing, where appropriate, and 
periodically reviewing any objectives 
established for the implementation of 
diversity for the Board, monitoring 
progress toward the achievements of those 
objectives and reviewing the Group’s 
diversity initiatives to see that these are 
in line with strategic objectives. Diversity 
contributes to Board effectiveness and 
is essential for successfully delivering the 
strategy of an international Group. Our 
Board is committed to recruiting the best 
available talent and appointing the most 
appropriate candidate to each role. This 
process ensures appropriate diversity 
of experience, skill sets and professional 
backgrounds. For more information on 
diversity within our Board, please refer to 
the Governance section within our 2018 
Annual Report.
Over time, we aspire to have a senior 
management team that better represents 
the experiences and backgrounds of our 
customers and stakeholders. The Board 
monitors progress regularly through the 
Group D&I Advisory Committee, chaired 
by Tim Rolfe. This includes reviewing our 
benchmarked progress against peers on 
key aspects such as the diversity of our 
leadership team. The majority of D&I 
activity is managed by the individual 
business units, which focus on the priorities 
that make a key difference in their specific 
markets, in alignment with the Group-wide 
strategy. The articulation of our D&I 
strategy was updated in 2018 to reflect the 
evolution of our D&I journey. Prudential 
Corporation Asia continued to develop its 
D&I Works Committee, made up of 
representatives from across its regional 
businesses. Its purpose is to drive the D&I 
strategies and initiatives in the respective 
countries, provide support and share best 
practices. In the US, Jackson 
has introduced a D&I Advisory Council 
that reports directly to the CEO, Michael 
Falcon, and supports senior leadership by 
helping to guide, implement and oversee 
D&I strategies and initiatives, providing 
updates on progress and communicating 
D&I efforts and commitment internally 
and externally. 
2018 highlights
Across our businesses, our commitment 
to D&I is supported by initiatives such as 
reviews of pay, performance management 
consistency, providing training to staff, 
engaging with recruitment firms and 
awareness campaigns to diversify the pool 
of potential candidates. In 2018, building 
on the unconscious bias leadership 
workshops for senior managers and 
executives delivered in 2017, we aimed to 
reach all employees via the Group-wide 
roll-out of unconscious bias e-learning. 
Completion rates exceeded 90 per cent 
throughout and positive feedback was 
received from participants. 
We were part of the first cohort of 
companies to sign the HM Treasury 
Women in Finance Charter in 2016. 
In 2018, we achieved our commitment 
to have 27 per cent women in senior 
management, a year ahead of the target 
date of the end of 2019. We continue to 
work towards the target of 30 per cent 
women in senior management by the 
end of 2021. See below for the gender 
breakdown of our workforce for 2018.

16  Prudential plc  Environmental, Social and Governance Report 2018
www.prudential.co.uk
All employees
Headcount
Total
Male
Female
Undisclosed2
Unspecified3
Chairman & Independent Non-executive Directors
10
8
2
–
–
Executive Directors
6
6
0
–
–
Group Executive Committee (GEC)
Includes Executive directors
11
11
0
–
–
Senior managers
Excludes the Chairman, all directors and GEC members
79
56
23
–
–
Whole company1 
Full time equivalent
Includes the Chairman, all directors, GEC members and senior managers
23,792
11,354
12,375
33
30.5
Notes
1	 Excludes Prudential Corporation Asia joint ventures
2	 In many of our businesses, we provide our employees with the option to not disclose their gender. For these employees, gender is recorded as ‘undisclosed’.
3	 No specification or information is captured on gender for an immaterial number of our employees. These employees are recorded as ‘unspecified’.
2017
Female
Male
2018
25%
29%
75%
2012
17%
83%
71%
Gender diversity
Senior management
We again sponsored ‘Dive In’, the D&I 
festival in Insurance and the Financial 
Services sector, which took place in 27 
countries and 53 cities in the Americas, 
Asia, Africa, the Middle East and Europe. 
In 2018 we published two Group-wide D&I 
newsletters for all employees on the themes 
of mentoring and sponsorship and cultural 
inclusion. The cultural inclusion newsletter 
highlighted how our African businesses 
reflect the cultural diversity of the countries 
in which we operate through engaging with 
clients in their native languages to improve 
understanding of our products, helping us 
to provide a better service.
We are committed to improving the 
diversity balance of our organisation. 
For example, Prudential Corporation 
Asia completed a review of recruitment 
processes, resulting in a clear commitment 
to equal opportunities being incorporated 
in all job adverts internally and externally 
across Asia. Additionally, Prudential 
Corporation Asia has committed to 
increasing the focus on blind CV assessment 
and gender-balanced shortlists. Group 
Head Office has reported a measurable 
improvement in the balance of gender, 
ethnicity, international experience and 
sector background experience in hires. 
Group Head Office offers tailored 
one-to-one maternity coaching for female 
staff. This development initiative helps 
mothers to prepare for maternity leave, 
offers support while they are out of the 
office, and aids and facilitates a successful 
return to the workplace. 
Externally, M&GPrudential achieved 
recognition from D&I-related awards and 
rankings. Several individuals were winners 
or shortlisted for awards, for example the 
EMpower100 Ethnic Minority Executives 
List, the Black Business Awards, Women in 
Investment Awards and Top 50 Leading 
Lights, Kindness and Leadership Awards. 
M&G Investments was ranked in the top 50 
of the UK’s Social Mobility Employers Index. 
In addition to the established affinity 
networks – Prudential Women’s Network, 
Pride (LGBT), CAN (cultural awareness) 
and Mind Matters (mental health) – we 
launched Enable, the Group-wide network 
for employees with physical and mental 
disabilities, allies, carers and champions, 
and PruPride, the first LGBT and allies 
network in Asia.
Responsible working practices
We believe in supporting human rights 
and acting responsibly and with integrity in 
everything we do. Our policies are guided 
by the principles of the UN’s Universal 
Declaration of Human Rights and the 
International Labour Organisation’s 
core labour standards. These are also 
incorporated into our Group Code of 
Business Conduct, which sets out the 
Group values and expected standards 
of behaviour for all employees, and in 
our Group Third Party Supply Policy.
Our Group Employee Relations and 
Resourcing polices are available on our 
Group website, along with our Board-
approved Modern Slavery Act statement. 
Our business units implement policies and 
practices at a local level that aim to ensure 
compliance with statutory and regulatory 
requirements in the local labour market 
and the prevention of slavery, human 
trafficking and child and forced labour. 
Compliance with Group policies is certified 
annually through our Group Governance 
Manual certification process. Additionally, 
we have an independent, externally hosted 
whistleblowing website and hotline 
system, Speak Out, which allows 
individuals to raise concerns and seek 
guidance on a broad range of issues 
(see page 14 of this report).
People (continued)

www.prudential.co.uk
Environmental, Social and Governance Report 2018  Prudential plc  17
ShareAction Workforce 
Disclosure Initiative
In 2018, Prudential plc participated in 
ShareAction’s Workforce Disclosure 
Initiative (WDI), which aims to create 
transparency for investors in how 
companies manage their workers, both 
in their direct operations and their supply 
chains. We achieved scores above the 
overall average and the sector average. 
More than 120 investors, with over 
$13 trillion assets under management, 
back the WDI, with the ultimate goal 
of improving the quality of jobs in 
companies’ operations and supply chains.
Talent development 
Development of our people is key to 
our strategic objectives. Group Human 
Resources focuses on senior leadership 
through an annual talent review process. 
We continue to develop leaders and 
critical specialists for senior roles through 
succession planning. We segment our 
talent to identify short, medium and 
long-term successors. Development of 
our senior executive leaders is a bespoke 
exercise that we base on their aspirations 
and requirements. The Board receives an 
in-depth talent review once a year, led by 
the Group HR Director.
We offer a range of programmes that 
enable our people to grow and develop. 
Most programmes are managed by 
our business units. In 2018, 113 senior 
high-potential individuals participated 
in our established and well respected 
Group-wide leadership development 
programmes ‘Impact’ and ‘Agility’ and 
the ‘Next Generation’ emerging talent 
programme. These programmes were 
developed in partnership with world-
leading academic institutions and 
co-delivered with business school thought 
leaders. Across our businesses there are 
many more examples of our continuing 
commitment to talent development. For 
example, in 2018 Prudential Corporation 
Asia built on its strategic workforce 
planning initiative to develop and upgrade 
capabilities and reshape some critical roles 
to ensure continued success. Prudential 
Corporation Asia has implemented a senior 
leadership behaviours framework, taking a 
significant step towards creating a purpose-
led culture to help all employees embrace 
the transformation of their business.
Jackson offers customised on-premise 
programmes, as well as access to an 
online university, to meet the personal 
and professional development needs of 
employees with all levels of experience. 
Development programmes have been 
aligned to known enterprise-wide skills 
gaps to further develop critical capabilities 
for the future. 
Group Head Office continues to provide 
innovative programmes designed in 
partnership with top academic institutions 
and industry experts, focused on early 
career development, leadership 
development and opportunities, to 
develop a strategic and innovation mindset 
through varied career experiences and 
projects. In 2018 the Enhance programme 
incorporated several new themes, notably 
collaboration, including virtual, and a new 
course, ‘Experiments at Work’, which 
encourages expansive thinking in finding 
fresh perspectives for repetitive challenges 
and applying creative behaviours in 
everyday situations. 
M&GPrudential supports talent 
development through a range of 
programmes to increase personal and 
organisational capability, alongside 
bespoke development support for 
individuals in key roles, including 
leadership roles and critical specialists 
such as fund managers, technologists 
and actuaries. 
The success of our talent development 
efforts have been recognised externally: 
in 2018 Prudential UK was ranked 16th and 
M&GPrudential was ranked 31st in the Top 
100 employers for RateMyApprenticeship, 
based on student reviews.
Employee engagement
We want to foster an environment in which 
employees feel empowered and that they 
are making an active contribution to the 
organisation and the communities we 
serve. We drive employee engagement 
through a number of initiatives, including 
colleague appreciation programmes, 
wellbeing programmes, networking 
opportunities with peers and senior 
leaders across functions and employee 
focus groups. Each of our businesses 
manages its own activities in this area, 
including employee engagement surveys, 
regular employee open forums with senior 
management and team awaydays to 
discuss business performance. 
Our businesses, including Group Head 
Office, have processes and, where 
appropriate, a policy in place for engaging 
with employees. For any significant issues 
that are likely to impact either positively or 
negatively on our reputation as an 
employer – at both business and Group 
level – immediate reporting to Group 
Human Resources is required. 
One of the ways in which many employees 
feel connected is through volunteering 
activities and charitable causes. For 
instance, in 2018 significant funds were 
raised by M&GPrudential employees who 
took part in the London Dragon Boat race 
and the range of volunteer activities that 
employees took part in included education, 
mentoring, social welfare and youth 
programmes, while Prudential Corporation 
Asia’s Prudence Foundation has a unified 
charitable platform to align and maximise 
the impact of community efforts across the 
region. See page 29 for further details. 
The Board has considered options to 
ensure its employee engagement is 
developed in line with the provisions of the 
UK Corporate Governance Code. Actions 
are being taken over 2019 to implement 
this and will be reported on in our 2019 
Annual Report.
Employee engagement in the 
context of the demerger
We understand that during times of 
change within organisations colleagues 
can require extra support and engagement. 
Since we announced in March 2018 our 
intention to demerge M&GPrudential 
from the Group, we have embarked on 
a programme of engagement to ensure that 
colleagues are fully briefed on progress 
towards the demerger and the expected 
shape of the organisation afterwards. 
This has involved town hall meetings 
with senior management, smaller question-
and-answer sessions with leadership, 
regular updates from senior management 
on progress, line managers playing a key 
role in demerger-related communications 
and encouraging colleagues to submit 
questions and concerns, with a 
commitment to respond as soon as 
practicable. The frequency of these 
two-way communications is increasing 
during 2019 as we move closer to 
the demerger. 
We appreciate that managing and 
supporting our people through such 
a period of change is vital in ensuring that 
they remain engaged with the business, 
and we also recognise the value of the 
culture that we have built up in the business 
and are taking steps to ensure that this 
culture is protected during the process 
of the demerger. Throughout our 
communications we have been stressing 
the importance of ownership, partnership 
and stewardship, key elements of our 
culture, and we are doing everything we 
can to ensure that our colleagues are aware 
that they have a stake in the future success 
of the demerged businesses.

18  Prudential plc  Environmental, Social and Governance Report 2018
www.prudential.co.uk
Performance and reward 
We structure our reward arrangements 
to attract, motivate and retain high-calibre 
people. Our people contribute to the 
success of the Group and are rewarded 
accordingly. We recognise and reward high 
performance and are committed to a fair 
and transparent system of reward. 
We are committed to paying the Living 
Wage/London Living Wage to permanent 
and temporary employees, and to 
contractors who regularly work on our 
premises in the UK. 
Our UK businesses have recently reported 
their 2018 UK Gender Pay Gap data and 
details can be found on the Group’s website. 
There has been a narrowing of the pay gaps 
in some areas and modest increases in 
others. While we have made progress, 
the Gender Pay Gap cannot be removed 
overnight. We remain focused and 
committed to closing it as quickly as 
possible. We have a policy and carry out 
procedures to ensure that, where men and 
women perform similar roles, they are 
paid equally.
Remuneration is linked to the delivery 
of business goals, our values and our 
expected behaviours, and we ensure that 
rewards for our people do not incentivise 
inappropriate risk-taking. To enable this, 
employees are not only regularly assessed 
on ‘what’ they have achieved, but also on 
‘how’ they have done so. There are 
recognition initiatives running across our 
businesses, such as the Prudential Stars 
awards at Group Head Office, where 
individuals can nominate their colleagues 
to recognise examples of exceptional 
contributions, specifically in the areas of 
delivering synergy, adding value, fostering 
innovation, demonstrating stakeholder 
focus and maintaining risk awareness, 
while the Jackson High Five Recognition 
Program enables individuals to recognise 
their colleagues in the areas of creativity, 
empowerment, execution, impact, invest 
and respect. We also believe in the 
importance of giving employees the 
opportunity to benefit from the Group’s 
success through share ownership, and 
operate share plans for employees in the 
UK and Asia. This includes the award-
winning PruSharePlus plan, which enables 
employees in Asia to share in the longer-
term success of the business and actively 
encourages share ownership 
and engagement. 
Executive remuneration
The Group’s executive remuneration 
arrangements reward the achievement of 
Group, business, functional and personal 
targets, provided that performance is 
aligned to the Group’s risk framework 
and appetites, and that our conduct 
expectations, as well as those of our 
regulators and other stakeholders,  
are met.
Executive Directors’ recent salary 
increases have been aligned with the 
bottom of the range of pay budgets for 
the wider workforce. To strengthen the 
alignment between Executive Directors 
and our shareholders, 40 per cent of 
Executive Directors’ bonus is deferred in 
shares for three years, Executive Directors 
are required to meet shareholding 
guidelines and, from awards made in 2017, 
a two-year holding period applies to 
long-term incentive awards in addition to 
the three-year performance period. Our 
detailed Directors’ Remuneration Report 
can be found in our 2018 Annual Report. 
The Remuneration Committee’s Terms of 
Reference were updated in 2018 to include 
responsibility for reviewing workforce 
remuneration practices and policies across 
the Group and the alignment of incentive 
and awards with culture, taking these into 
account when setting the policy for 
Executive Director remuneration.
To further increase transparency of 
executive remuneration and its alignment 
with the pay of other employees, we are 
publishing our CEO pay ratio one year in 
advance of the disclosure becoming a 
statutory requirement under the 
Companies (Miscellaneous Reporting) 
Regulations 2018. The employee 
comparator group used for the purpose of 
this analysis is all UK employees. Further 
information on our CEO pay ratio is detailed 
in the Directors’ Remuneration Report.
Protecting the health, safety 
and wellbeing of our people
We are committed to ensuring compliance 
with health and safety legislation and 
standards to which all our businesses are 
subject and have adopted a Group-wide 
Health and Safety policy that applies to all 
our companies, locations and activities. 
In 2018, Jackson launched a staff 
engagement campaign encouraging 
employees to commit to safer driving 
behaviours. Our businesses are 
increasingly looking to computer-based 
training solutions to improve occupational 
health and safety standards, with Jackson 
rolling out Ergopoint and our UK businesses 
commencing the roll-out of Healthy 
Working for ergonomic assessment 
and training for office workstations. 
We seek accreditation where relevant 
to help us manage health and safety 
across our occupied estate and to drive 
improvements. For example, our 
UK property estate is certified to the 
occupational health and safety standard 
OHSAS 18001.
In 2017, we reported for the first time the 
number of working days lost due to injury 
or ill-health (excluding the day of the 
accident or illness, modelled on US OSHA 
standards) and any fatalities. For the 
year ending 31 December 2018, no 
fatalities were recorded (2017: zero) and 
13 accidents/instances of work-related 
ill-health were recorded, resulting in 274 
days of lost time (2017: six accidents and 
38 days lost). Nine of these incidents 
related to physical injuries (one each in 
Malaysia, Cambodia and the US and two 
each in Germany, Hong Kong and the UK). 
Seven of these physical injuries were 
caused by slips, trips and falls, one from 
a falling object and the other a fall from 
height, resulting in a total of 48 lost 
working days. Four incidents were due 
to work-related medical illness, resulting 
in long-term absence from work totalling 
226 lost days. Physical injuries were 
comparable to 2017 and improved 
awareness of illness at work may have 
contributed to reporting of medical 
illnesses for the first time. Investigations are 
carried out locally and support is provided 
where appropriate, for example through 
external occupational health providers. 
Our business units continue to be active 
in wellbeing programmes, with PruThrive 
workshops remaining popular in the UK. 
M&GPrudential’s sponsorship of the 
Chelsea Flower Show was used to bring 
the workplace closer to nature through 
planting programmes, including a winter 
garden, and workplace design features 
inspired by nature. Employee wellbeing 
was integral to the design and fit-out of 
M&GPrudential’s new corporate 
headquarters at 10 Fenchurch Avenue in 
London. Staircases have been installed to 
encourage walking between floors as 
opposed to taking the lift, racking installed 
for 194 cycles and showers provided for 
cyclists and runners. All workstations have 
been fitted with sit-stand height-adjustable 
desks as standard to allow for flexible 
working styles. Close attention has also 
been paid to indoor air quality by 
specifying paints, adhesives and soft 
furnishings with low volatile organic 
compound content.
People (continued)

www.prudential.co.uk
Environmental, Social and Governance Report 2018  Prudential plc  19
Our supply chain
Managing ESG risks when sourcing goods and services, 
and throughout the lifecycle of our third-party relationships, 
is vital to our position as an ethical and responsible business. 
We take this position seriously and seek to both maximise 
value and minimise risk throughout our interactions with 
our supply chain.
Managing our supply chain risk
We work with a range of partners who 
support our business units with our IT 
network and systems, specialist 
professional and advisory services, 
facilities management, contractors and 
agents that form our distribution network. 
Our Group Code of Business Conduct 
outlines the values and standards that are 
required by each of our suppliers. Our 
Group Third Party Supply Policy is core to 
our supply chain governance and specifies 
our position on supply chain management, 
setting out our approach to due diligence, 
selection criteria, contractual requirements 
and ongoing monitoring of relationships. 
Our business units are responsible for 
managing third-party supply arrangements 
and are able to adopt further policies as 
they require, to meet localised operating 
conditions. Business units conduct due 
diligence before engaging with and 
ultimately selecting a new supplier. During 
this process, our employees are trained to 
ensure that the contractual arrangements 
reflect the requirements of those policies. 
Our supplier relationships are managed on 
an ongoing basis. We perform regular due 
diligence, review meetings and audits, 
where required, and our policies and 
procedures are supported by regular 
employee training exercises. Our ‘Speak 
Out’ whistleblowing service enables 
employees to raise any concerns they may 
have in relation to our third-party 
relationships, and our contractors and 
third-party suppliers are also able to use 
this service. The confidential service is 
available on our website and intranet, and 
through email, hotline and written format. 
More information on our whistleblowing 
service is available on page 14. 
Conducting due diligence on Babylon
We recognise that as society innovates 
there is a need to equip our customers 
with both traditional and modern services 
that support their long-term planning. 
This underpins our ambition to make 
healthcare accessible and affordable. 
Starting with our Asian markets, we 
partnered with Babylon to offer a world-
leading AI health assessor. Further 
information on Babylon is available on 
page 7 of this report. No matter how 
beneficial a service is it, we believe it is 
vital that all our partners meet the same 
procurement standards that we apply to 
ourselves. Before signing the partnership 
with Babylon we conducted extensive due 
diligence, carried out by our Group 
Security and Privacy teams. This covered 
Babylon’s processes and documentation 
around data protection and management. 
Though in most cases the existing 
procedures were already robust, where 
we believed they required strengthening 
these requirements were stipulated in the 
contract. We were conscious that this 
partnership would be multi-country, in 
a field where technology and regulations 
are changing very quickly. As such, 
our contract allows for navigating the 
regulatory landscape, giving our 
local business units sign-off that the 
deployment in their territory meets 
the local market regulations. We are 
contractually able to audit Babylon and 
ensure that it continues to meet our best 
practice standards.

20  Prudential plc  Environmental, Social and Governance Report 2018
www.prudential.co.uk
Our business units are required on an 
annual basis to formally attest that they 
are meeting the requirements of our Group 
Third Party Supply Policy, which is used to 
confirm the satisfactory state of compliance 
and, in the event of any problems, to allow 
for prompt corrective actions. Our Group 
Head Office uses an e-procurement 
system across all departments. This creates 
end-to-end automation for supplier spend 
at Group Head Office, covering supplier 
ordering, invoicing, payments and 
contracting. The system adds a new layer 
of control and visibility across our and our 
suppliers’ supply chain and enables 
purchasing and approvals to be conducted 
securely online. Our invoices are scanned 
then transmitted, with contracts signed 
and shared electronically – all part of our 
drive to be a transparent, accountable and 
responsible business. To ensure the correct 
due diligence is being applied, a weekly 
‘Deal Review Panel’ at Group Head Office 
reviews all new contract awards and 
renewals. This forum checks that standards 
are upheld, with departments including 
Group Compliance, Group Security, Group 
Privacy and Group Risk as key attendees.
Upholding our commitments 
to human rights 
Being a responsible business requires 
organisations to ensure that they meet and 
strive to surpass commitments to the UN’s 
Universal Declaration of Human Rights. 
We act with integrity to ensure that modern 
slavery, human trafficking, child labour or 
any other issue that subjugates human 
rights is eradicated from our supply chain. 
For more information around how we are 
identifying and managing our risks in 
relation to modern slavery, human 
trafficking, child and forced labour, please 
read our Modern Slavery Statement. 
2018 highlights
In 2018, we introduced a new ‘Responsible 
Business’ module to our third-party 
contract terms and conditions for our 
Group Head Office contracts, detailing 
new compliance conditions for our 
suppliers. Supplementing our existing 
conditions on modern slavery and human 
rights were new parameters on the Living 
Wage and ESG commitments. This 
contractually requires our suppliers to 
pay their employees either the London 
or UK Living Wage as set by the Greater 
London Authority and Centre for Research 
in Social Policy, respectively. We recognise 
the requirement for our business units to 
adhere to localised ESG-related regulatory 
requirements. Our supply chain forms 
part of that, and we similarly require 
all third parties to uphold relevant 
ESG legislation. If requested, suppliers 
to Prudential plc should be able to 
demonstrate their compliance with 
this contractual obligation.
At Group Head Office, we invested in 
Workday, a finance and human resources 
system. Becoming live in 2019, Workday 
will change the way we pay our suppliers. 
Many of the suppliers we work with are 
financially and operationally smaller than 
us, and we are committed to ensuring that 
we pay them promptly. Through the use of 
the Workday e-Procurement and General 
Ledger system, we seek to accelerate the 
processes for managing supplier invoices 
and increase accountability at Group Head 
Office for resolving queries. 
Our new partnership with Tata Consultancy Services 
Our new partnership with Tata 
Consultancy Services (TCS) consists of 
two separate agreements. The first is with 
Diligenta (the FCA-regulated subsidiary 
of TCS) and covers the administration 
of around 6 million life and pension and 
annuity contracts for an initial term of 
10 years, and commenced in August 
2018. The contract also provides for 
the migration and consolidation of 
Prudential UK’s systems over a four-year 
transformation programme, ensuring 
that the business is more adept at 
responding to the needs of customers 
and other stakeholders.
The second contract with TCS covers 
infrastructure hosting, telephony and 
network provision of the existing IT 
estate, across all of the Prudential Group’s 
UK business, including M&GPrudential 
and Group Head Office functions. 
Services commenced on 1 May 2018, 
and will run for up to seven years.
Implementation of the IT services 
agreement in May 2018 resulted in 
the transfer of around 200 roles from 
Prudential to TCS under TUPE. The 
transition of Capita (life and pensions 
administration) services to Diligenta 
on 1 August 2018 involved the transfer 
of over 1,100 UK roles under TUPE 
arrangements. In India, where TUPE 
regulations do not apply, around 700 
further Capita colleagues were rehired by 
TCS. Annuities servicing was transitioned 
from Prudential to Diligenta on 1 October 
2018, resulting in the transfer of around 
450 UK-based colleagues under TUPE, 
and the rehire of close to 200 colleagues 
in India by TCS.
Since the strategic partnership began, the 
customer service team have worked hard 
to deliver new ways of working refocused 
on end-to-end customer journeys. This 
has driven significant improvements in 
customer satisfaction and operational 
efficiency, reducing end-to-end 
customer journey times.
A number of significant digital 
improvements have already been 
delivered, including:
—
— Introducing new best-in-class contact 
centre infrastructure, significantly 
reducing call waiting times and 
ensuring customers get through to the 
right colleague much more quickly 
than before; 
—
— Moving a number of our operational 
teams to the new industry-leading TCS 
BaNCS platform, making it quicker and 
easier for customers to self-serve and 
access funds from their bonds online. 
This has reduced the time to release 
customer funds by over 80 per cent, 
and has now been rolled out to advisers 
acting on behalf of their clients; and 
—
— Deployment of a new platform for 
MyPru, the engine for growing our 
self-service proposition, and an 
enhanced registration process, cutting 
the time it takes to just minutes, and 
removing reliance on paper.
Our supply chain (continued)

www.prudential.co.uk
Environmental, Social and Governance Report 2018  Prudential plc  21
Technology
New technologies present new risks and we are vigilant in 
working to identify these and to manage both old and new 
risks in ways that are proportionate to and commensurate 
with the threats our business faces. At the same time, we are 
making significant investments in technology as we continue 
to upgrade our digital capabilities to provide a more seamless 
customer experience.
Delivering digital
The Group is making significant 
investments in technology. These new 
technologies help us to provide better 
service that gives our customers what they 
want, when they want it. This is delivered 
through channels that suit their needs 
and fast-changing expectations. New 
technologies also help us as an organisation 
to better manage risk. As asset managers 
and asset owners, technology is also 
helping us to make more informed 
decisions about how and where to invest. 
As part of our ongoing digital 
transformation strategy, the Jackson 
Digital Advisor Success Hub (DASH) was 
launched in 2018. A publicly accessible 
website, Jackson DASH connects advisers 
with client-friendly tools and resources, 
helping consumers understand the value 
that annuities can provide. The Purpose 
Meets Planning Tool enables financial 
professionals to quickly and easily assess 
the benefit of adding an annuity to a client’s 
retirement plan. It provides three different 
scenarios for clients to explore their 
options: plug an annuity in, take it back out, 
and see instantly how different their 
circumstances can be. In September 2018, 
Jackson announced that it would offer its 
complete product suite of advisory 
annuities on the Envestnet Insurance 
Exchange. The new collaboration brings 
together Jackson, a leading provider of 
annuities in the US, with a leading provider 
of intelligent systems for wealth 
management and financial wellness.
For the second year, we invited scale-ups 
from all over the world to take part in 
Prudential Singapore’s digital innovation 
programme, the PRUFintegrate 
Partnership. The programme aims to 
foster innovation and collaboration, using 
technology to make insurance as simple as 
possible for our customers. Highlighting 
our commitment to digital innovation, we 
will be a Grand Sponsor of the Singapore 
FinTech Festival until 2022. In Singapore, 
we also launched PRUworks, a digital 
ecosystem designed to help small and 
medium-sized enterprises (SMEs) grow 
their business as well as attract and retain 
talent. This one-stop portal is designed for 
SMEs, which make up make more than 
99 per cent of Singapore’s businesses and 
employ up to 65 per cent of the workforce 
in the country. PRUworks gives business 
owners, human resources teams and 
employees easy and convenient access 
to insurance, employee benefits and 
business solutions in one seamless digital 
experience. Since its launch in June 2018, 
we have onboarded more than 200 SME 
customers and aim to increase this number 
to 5,000 by the end of 2019. In Singapore, 
we were awarded the Innovation and 
Emerging Technologies award for askPRU. 
Launched in-country last year, askPRU was 
described by the judges as an example of 
service excellence and innovation in the 
insurance industry.
We continue to explore how technology 
can be harnessed to process data into 
insights, enabling us to provide increasingly 
personalised services to our customers. For 
example, PCA Life Taiwan has established 
a strategic partnership with Taiwan Medical 
University to develop ‘health propensity 
models’, using AI to help provide people 
with greater insights into their health. 
Using National Health Insurance’s data, 
the AI-powered models analyse the risks 
of chronic diseases and cancers based on 
an individual’s personal information such 
as age, blood type and family medical 
history. Users then receive customised 
health tips and recommendations on how 
to lead healthier lifestyles. 
As well as constantly enhancing the 
services that we offer to customers, we 
use technology to enhance our internal 
operations. During 2018, M&GPrudential 
focused on implementing Aladdin, 
BlackRock’s operating system for 
investment managers, with 1,200 
portfolios and over 500 users going live 
in April. This has enabled us to proceed 
with simplifying and modernising our 
technology estate by decommissioning 
several systems. During 2018, Eastspring 
rolled out Aladdin across more than 600 
portfolios managed in Singapore, Malaysia, 
Indonesia, Japan and Vietnam. Taiwan and 
Thailand are to follow in 2019.

22  Prudential plc  Environmental, Social and Governance Report 2018
www.prudential.co.uk
The cyber risk landscape
For all businesses, the theft of large 
quantities of personal data has become 
increasingly common, at significant cost to 
consumers and businesses. For us, as for 
many other businesses, the impact of such 
events has the potential to be more severe 
in the future as our business changes and 
becomes increasingly digital. These types 
of incidents also have the potential to have 
a significant impact on the continuity of our 
business, our customer relationships and 
our brand reputation, as well as to diminish 
customers’ trust in engaging digitally with 
us and all businesses. The knock-on effect 
of this could be that many of the social 
benefits of new technology, such as 
financial inclusion and greater access to 
primary healthcare, may not be realised. In 
this context, cyber risk remains a prominent 
concern and focus area for ourselves, 
regulators and businesses globally. 
How we manage cyber risk 
Our cyber strategy is designed to deliver 
against three objectives: protect the 
business, comply with applicable laws 
and regulations, and support the growth 
of the business. A number of workstreams 
underpin the delivery of the strategy, 
covering risk prevention, the Group-wide 
baseline of security controls and capability, 
and resilience. This strategy supports the 
business to prioritise and make informed, 
risk-based decisions. These benefits will 
continue to be delivered throughout 2019 
as the strategy matures under the recently 
appointed Group Chief Information 
Security Officer, who leads the Group-
wide Security team (a ‘first line of defence’ 
team) and reports to the Group Chief 
Digital Officer. 
A key element to managing cyber risk 
and strategies is to have good information, 
which our executives and other 
stakeholders across the business can use 
to inform their decision-making and to 
satisfy themselves that cyber risk is being 
appropriately managed. We monitor our 
cyber risks through our Group-wide cyber 
key performance indicators (KPIs), which 
map to the industry-leading National 
Institute of Standards and Technology 
(NIST). Our cyber KPIs cover 10 key areas 
of cyber security and were created using 
the ‘Goal, Question, Metric’ approach first 
developed by Victor Basili at the University 
of Maryland. 
This approach seeks to derive business-
focused insights from KPIs, focusing on the 
effectiveness of current risk management 
practices and levels of residual risk for the 
executive to consider. Our cyber KPIs are 
collated and analysed by the Group 
Information Security team (a ‘second line 
of defence’ team) and are reported to the 
Group Risk Committee on a monthly basis. 
In addition, each business unit has an 
embedded security team, ie in the ‘first line 
of defence’, that measures, analyses and 
makes regular reports to the respective 
executive team regarding the effectiveness 
of the controls environment.  
An annual in-depth, evidence-based 
analysis of our Group-wide cyber 
capabilities, also aligned to the NIST 
standard, was also completed in 2018. 
This is a key element of the assurance 
programme, which follows an annual cycle 
of information-gathering, attestation and 
assessment, with reports and reviews 
presented monthly to committees and 
forums with oversight responsibility, 
including the Group Information Security 
Committee and the Group Executive Risk 
Committee. Recommendations and 
management actions are highlighted 
to these committees where necessary 
to drive action across the Group. This 
augments the governance and risk 
management performed within each 
business unit and provides a Group-wide 
global view and assurance. During the 
course of 2018, 18 reports on topics such 
as cyber security performance, as well as 
threat intelligence updates, have been 
provided to various Executive Committees, 
including the Group Executive Committee 
and the Group Risk Committee. The 
analysis we conduct, the programme 
delivered and the KPIs we gather as part 
of this programme are kept under constant 
review to ensure that they remain aligned 
to the business and continue to facilitate 
business decision-making and thus 
reduce cyber risk.
The assurance programme continues to 
evolve to ensure that the way we manage 
cyber risk remains effective and includes all 
three elements of cyber risk management 
– people, processes and technology. 
This is vital as changes to our business, 
the technologies we use and our operating 
environment continue to gather pace. For 
example, throughout 2018 we continually 
reviewed and made adjustments where 
necessary to our KPIs. This is to ensure 
that they provide appropriate oversight 
and cover areas of cyber risk that may 
have been introduced as a consequence 
of new technologies. Similarly, we continue 
to identify, adjust and review the cyber 
capabilities we need. The Group-wide 
policies and standards for information and 
cyber security, which were refreshed in 
2018 to reflect the rapid advance in cyber 
threats, have been introduced and will be 
reviewed annually and adjusted where 
necessary to reflect a changing operational 
environment. Third-party and supplier 
assurance is also critical to our cyber risk 
management and as such we run a 
programme of assurance which spans the 
life cycle of the third-party relationship. 
This includes pre-contract screening and 
assessment, ongoing review, contractual 
protections and agreements on minimum 
controls, robust network access controls, 
and termination procedures to protect 
business and customer data. 
Throughout the year, Board members, 
including non-executives, have received 
one-to-one training on cyber threats, 
including privacy, by a senior manager 
of the Group Information Security team. 
All staff and contractors are also provided 
with comprehensive information security 
training annually. This is further supported 
by simulated phishing exercises at least 
quarterly, where staff receive imitation 
phishing emails to test their responses 
and raise awareness of new and 
common attacks.
Technology (continued)

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Environmental, Social and Governance Report 2018  Prudential plc  23
Resilience has long been a key 
consideration in cyber risk management 
and the cyber security strategy for 
Prudential Group. This was further 
emphasised in 2018 by the FCA and 
PRA’s joint publication of the discussion 
paper ‘Building the UK Financial Sector’s 
Operational Resilience’, which highlighted 
cyber security as a key factor of operational 
resilience. As it is impossible to guarantee 
that no incident will ever occur, preparation 
for rapid and appropriate response is 
critical to ensuring resilience. For this 
reason, well defined response plans 
and training for staff involved in cross-
functional incident management 
teams form a fundamental component 
of our strategy to protect the business. 
Not only are incident response plans 
developed, maintained and tested 
regularly, but the Group Information 
Security team works closely with business 
continuity and disaster recovery teams to 
ensure alignment of plans and support in 
the event of an incident. Regular scenario-
based testing of these processes serves to 
both confirm the effectiveness of the plans 
and provide assurance that staff, including 
senior executives, are prepared for such 
an event. 
The Group has an established Cyber Threat 
Intelligence team that assists our businesses 
with understanding the cyber threats we 
face and provides guidance on how to 
protect and mitigate against these threats. 
The principal threat we face is that of 
criminality, but we continue to monitor 
a number of threat actors ranging from 
‘hacktivists’ through to nation states. While 
the risk of a sophisticated, targeted attack 
from one of these actors remains low, 
there is a higher risk of our systems being 
‘collateral damage’ in a more widespread, 
untargeted attack similar to those that have 
been highlighted in the press.
We believe that knowledge-sharing 
across our businesses is key to a mature 
intelligence function and we use a variety 
of mechanisms, including a Group-wide 
threat intelligence-sharing platform and 
weekly telephone conferences with 
representatives of each of the business 
security teams, to ensure timely visibility 
and dissemination of intelligence to 
proactively defend the business. In the 
last year, we have further enhanced our 
collaboration tools and launched a weekly 
threat bulletin to provide situational 
awareness to a wider audience in 
information security.
In 2019, recognising that the threat landscape 
will continue to evolve, we continue to 
develop and strengthen our cyber 
defences and management of cyber risk. 
To maximise effectiveness and efficiencies 
we are looking to establish global cyber 
centres of excellence. We shall be exploring 
new machine learning and augmented 
intelligence technologies to identify if 
they can be used Group-wide to enhance 
and/or improve our understanding and 
management of cyber risk. 
2018 highlights 
In Asia, the focus of our 2018 cyber 
programme has been around improving 
the efficacy of the security operations, 
through automation and deployment of 
machine learning and data analytics tools, 
to promptly detect and respond to any 
potential threat encountered. For example, 
an advanced hacking simulation tool has 
been implemented across the region to 
enable automated validation of our 
security controls. In Asia we are also 
rolling out an endpoint security tool, 
with machine learning, to strengthen 
threat detection capabilities. 
Embedding cyber security 
Good cyber security culture is pivotal 
to the management of our business 
operations and our customers’ data. The 
Group-wide Information Security team 
has developed an approach to understand 
and measure the cyber security culture 
across the various IT and security teams in 
the Group. Based on recognised academic 
research, a small Group-wide pilot was 
rolled out in 2018. The results to date are 
promising. In addition to adding 
granularity to our understanding of the 
management of cyber risk across the 
Group, the results have the potential to 
drive changes in awareness and personal 
development programmes. Further 
work is required and there is the potential 
to better understand regional and 
occupational group differences in 
attitudes towards managing cyber 
security risk.

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Recognising the importance of the human 
element of security, a new cyber awareness 
programme, a phishing simulation 
campaign, a security control self-
assessment and an external cyber 
surveillance tool have been rolled out to 
enhance overall cyber awareness and 
cyber risk management practices.
Building upon work undertaken during 
2017, Jackson made investments in 2018 
designed to further protect client data. 
New technology was deployed to address 
growing threats related to impersonation 
attempts. For example, capabilities were 
enhanced to more quickly detect 
fraudulent callers with real-time monitors, 
and multi-factor authentication using a 
mobile application was deployed for 
advisers and customers who connect for 
online self-service. Jackson also created 
a new data protection team to improve 
protection of customer data and prepare 
for expanding regulatory requirements.
2018 was a year of significant change 
for our UK and Europe business following 
the merger of M&G Investments and 
Prudential UK & Europe to create 
M&GPrudential. In this context the Security 
teams have merged into a single function 
and continue to help the business manage 
its cyber risk, which includes the risk of a 
malicious cyber attack resulting in the loss 
of data or impact to availability or integrity 
of Prudential systems. This new team will 
continue to identify further efficiencies 
and effectiveness opportunities.
Privacy and data protection 
In 2018, the Group Privacy Policy 
and supporting guidance documents 
became operational and the programme 
to implement the standards required for 
the General Data Protection Regulation 
(GDPR) continued across the in-scope 
businesses, in order to prepare for the 
new law, which came into force on 25 May. 
Working groups were mobilised across 
key areas including training and awareness, 
data subject rights, third parties and data 
protection by design. The focus is now 
on maintaining awareness as well as 
enhancing and embedding activities that 
were implemented as part of the GDPR 
programme, in order to strengthen and 
sustain ongoing compliance. 
A Data Protection Officer has been 
appointed to monitor compliance with the 
GDPR, provide advice on the firm’s privacy 
obligations and act as a point of contact for 
European data subjects and supervisory 
authorities. A Group Privacy Office has 
also been established, which owns the 
Group Privacy Policy and maintains 
oversight of privacy compliance. In 
addition, the office is working with Group 
businesses across Asia, Africa and the US 
to support and advise on ongoing privacy 
compliance. This is being done through 
privacy reviews, ongoing awareness 
activities and ensuring that privacy is a key 
consideration during change activities.
Technology (continued)

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Environmental, Social and Governance Report 2018  Prudential plc  25
Environmental performance 
We recognise the risks and opportunities posed by climate 
change and our impact on the environment, and we strive to 
play our part in reducing both our direct and indirect impacts 
where possible. Our approach includes not only understanding 
our impact on the environment, through measuring and 
improving the environmental performance of our global 
operations, but also developing our understanding of the 
environment’s potential impact on our business.
This section covers our programmes to 
manage the direct environmental impacts 
of our operational property estate. Further 
information on our role as an asset 
manager and owner and how we manage 
our indirect environmental impacts can 
be found in the Responsible investment 
section on page 9. This includes work 
undertaken in response to the need 
for enhanced climate-related financial 
disclosures established by the FSB’s 
TCFD recommendations.
Managing our direct impacts
Our Group Code of Business Conduct 
underpins all our activities, including 
minimising the direct impacts of our 
operations on the environment. In addition, 
our Group-wide Environment Policy 
applies to our operational properties 
worldwide, guiding our approach to the 
management of the direct impacts of our 
business units, including compliance with 
environmental regulations, energy 
consumption, water use, waste disposal, 
environmental supply chain management 
and the adoption of risk management 
principles for all property-related matters, 
such as leasing and development.
Our Corporate Property team has global 
accountability for the Group-wide 
Environment Policy, reviewing business 
unit performance against targets, sharing 
best practice and reporting progress to 
the Board. This section summarises our 
progress against these targets.
Prudential Corporation Asia launches 
energy and water audit programme 
The first six energy and water audits of the 
20 largest sites in the Asia region (based on 
energy intensity/cost) were conducted 
during 2018. Assessments were completed 
in Hong Kong, Indonesia, the Philippines 
and Thailand against the ASHRAE Level 1 
requirements for commercial building 
energy audits. Total savings of 1.6 MWhs 
from improvement opportunities were 
identified and shared with all local business 
units within the region. 
Of the total savings, 38 per cent were 
through lighting upgrades and motion 
sensors, a further 28 per cent from simple 
operational changes (such as reducing 
speeds of fan coil units and increasing 
temperature set points in server room air 
conditioning systems) and the remainder 
from IT equipment (switching to energy-
saving mode), optimising back-up power 
requirements in server rooms and 
assigning designated air-conditioned 
zones for out-of-hours working. 
Cost‑effective improvements for water 
reduction were more limited (single 
WC replacement identified).
A further seven audits are scheduled for 
delivery in 2019, with a view to completing 
the full programme of audits by 2020. 
We will report further on improvements 
identified and delivered through the audit 
programme in future reporting.

26  Prudential plc  Environmental, Social and Governance Report 2018
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We continue to adopt environmental 
accreditation where appropriate to help us 
minimise the environmental impacts of our 
operations, validate good performance and 
drive continual improvement. As part of 
our ongoing environmental management 
system (ISO 14001:2015) in the UK, we 
achieved zero non-conformities in 2018, 
and focused on improving recycling rates 
and minimising single-use vending cups 
and plastics, as well as completing the 
roll-out of advanced energy analytics 
software across our largest UK properties 
following a successful trial. In 2018 we 
joined more than 150 other leading 
corporates in signing up to RE100, 
committing to achieving the use of 
100 per cent renewable energy. We also 
pursue sustainability certifications for 
major property projects, such as BREEAM 
Excellent for M&GPrudential’s new 
headquarters in London.
Our 2018 environmental 
performance and initiatives
Sector benchmarks
We participate in external benchmarks 
on our management of climate change 
risks and opportunities. In 2018, the CDP 
(formerly the Carbon Disclosure Project) 
aligned its annual climate change 
disclosure assessment with the FSB’s TCFD 
Framework. The Group scored strongly, 
with a B grading, although this is down 
from our score of A- in 2017. Changes to 
the questionnaire this year have made it 
more challenging for financial services 
companies, but we remain committed to 
enhancing our climate change disclosures, 
in line with TCFD. We continue to make 
progress against the six core principles for 
insurance industry action on climate 
change in ClimateWise, managed by the 
Cambridge Institute for Sustainability 
Leadership. We increased our 
ClimateWise score to 78 per cent (2017: 
71 per cent), placing us joint second out 
of 16 participants, our highest-ever 
ranking. We believe this is due to our 
increased focus on ESG within reporting, 
covering our operational sustainability 
work, such as projects in the UK and 
energy efficiency work in Asia.
Global environmental targets 
framework
In 2016, we established a global 
environmental targets framework and 
roadmap to drive progress across a range 
of environmental aspects and impacts 
for our operational property portfolio 
worldwide. This framework aligns to our 
regional footprints covering Asia, the UK 
and the US, reflecting the maturity of our 
environmental management practices 
in these markets and the autonomy given 
to our business units in managing their 
operations. We have reviewed the 
framework, added our RE100 target 
and completed a full update on progress 
against the targets in the roadmap, 
summarised below under the headings of:
1	 Energy and climate change
2	 Construction and refurbishment
3	 Waste and recycling
4	 Water consumption
5	 Sustainable procurement
For the year ending December 2018, we 
have completed or are on track with 18 of 
our targets, nine are running behind plan 
but with actions in place to get back on 
track, and four have not progressed. We 
continue to improve the scope and quality 
of our data collection, moving away from 
estimation to direct measurement and 
billing. For example, we have improved the 
scope of our air travel data to capture flights 
booked from the UK, Europe and Africa for 
the first time. With the demerger 
underway, some elements of the roadmap, 
such as the development of science-based 
targets, have been put on hold and will be 
reviewed in 2019. 
1 Energy and climate change – 
understanding our impacts, reducing 
our greenhouse gas emissions and 
developing longer-term actions
We recognise the importance of our 
own internal environmental targets and 
decarbonisation goals in reducing our 
direct footprint. In 2018, global energy use 
across our occupied estate was 127,098 
MWh (2017: 129,324 MWh), a decrease 
of 1.7 per cent. Our absolute Scope 1 and 
Scope 2 (market-based) greenhouse gas 
emissions decreased by 7 per cent to 
61,317 tCO2e (2017: 65,979 tCO2e 
restated) across our occupied estate. 
When normalised against net lettable 
floor area, our Scope 1 and 2 emissions 
fell by 13 per cent to 99 kg CO2e/m2, 
influenced by a number of factors such 
as decarbonisation of the UK/European 
grid (cleaner electricity generation), 
outsourcing our UK data centres and a 
7 per cent increase in occupied floor area. 
We continue to apply energy reduction 
programmes across our estate, including 
installing energy-efficient equipment 
such as LED lighting, improved efficiencies 
with Variable Speed Drives and air 
handling units. Use of advanced data 
analytics at key UK buildings identified 
147 actions to reduce energy wastage, 
resulting in estimated potential cost 
savings of £85,000. 
In 2018, Jackson completed a further 
three Energy Star assessments, in addition 
to the two completed in 2017. The US 
Environmental Protection Agency 
Energy Star scheme is a certification 
programme and performance benchmark 
identifying the buildings nationwide 
that use 35 per cent less energy than 
typical buildings.
As a Group, we signed up to RE100 in 2018 
to achieve 100 per cent renewable electricity 
by 2025 across our occupied and managed 
investment estates. Thirty per cent of our 
global electricity consumption is procured 
from 100 per cent certified renewable 
sources (solar PV and onshore wind). 
Looking ahead, we will develop roadmaps 
in 2019 for the demerged businesses to set 
out strategies to achieve this target, on 
a country-by-country basis. 
As our business becomes increasingly 
global, we recognise the importance of 
understanding the impact of air travel on 
our overall carbon footprint. We have 
disclosed Scope 3 greenhouse gas 
emissions data from air travel booked from 
the UK, Europe and Africa. Our reported 
air travel data amounted to 21,622 tCO2e, 
representing a 50 per cent increase over 
preliminary estimates made in the prior 
year (2017: 14,413 tCO2e). We aim for 
completeness in reporting of Scope 3 
emissions across all our business units and 
all the markets in which we operate and 
will work to extend our reporting to include 
business travel emissions by air for Asia 
and the US.
Our carbon footprint from air travel is 
a significant contribution to our emissions. 
As part of a holistic approach to the 
management of our operational emissions, 
we will focus management effort on 
reducing the need for travel through the 
deployment of digitally enabled office 
working practices and offsetting emissions 
from unavoidable flights as final mitigation. 
This offsetting programme will be 
developed in 2019 for deployment across 
both Prudential plc and M&GPrudential 
post-demerger. 
Environmental performance (continued)

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Environmental, Social and Governance Report 2018  Prudential plc  27
Further information about our greenhouse 
gas emissions reporting can be found here, 
including an assurance statement provided 
by Deloitte.
2 Construction and refurbishment 
– delivering sustainable outcomes 
through property projects and improved 
wellbeing of our employees 
Refurbishment projects and new office 
builds provide an opportunity to improve 
the environmental performance of our 
estate. Each business unit has the 
autonomy to deliver sustainable building 
certification most relevant to its region and 
develop standards or guidelines 
considered most appropriate in its market. 
For example, Prudential Corporation Asia 
developed a Smart Leasing Toolkit for use 
by local business units to leverage good 
and best-practice environmental outcomes 
during lease negotiations with landlords. 
Topics included the sharing of utility 
information, sub-metering, shared energy 
reduction targets and minimising 
unnecessary restatement works prior to 
surrendering leases. Environmental 
construction guidelines have also been 
prepared for reducing the environmental 
impact of fit-outs and refurbishment works 
where appropriate. A range of options is 
set out in the guide, with progressively 
more demanding requirements, including 
suggested environmental certification 
ratings (eg LEED and Green Mark), energy 
efficiency standards, renewable energy 
targets, low volatile organic compound 
materials (eg low-solvent content paints 
and adhesives), indoor air quality, 
responsible sourcing, waste segregation 
and recycling.
M&GPrudential’s new headquarters 
building in London is targeting BREEAM 
Excellent, with a 64 per cent rating 
achieved year-to-date, and is on track 
to deliver the 70 per cent required by 
this sustainability standard on project 
completion. As part of the move from its 
existing office, M&GPrudential worked 
across its supply chain to target zero waste 
to landfill in terms of surplus office 
equipment and furniture disposals. 
Furniture was either redeployed to other 
office locations, auctioned off to other 
users or recycled.
Leveraging our supply chain to  
deliver a sustainable community legacy  
for M&GPrudential’s new HQ 
The fit-out of the new HQ building for 
M&GPrudential was one of the largest 
construction projects commissioned 
by the Group in recent years. With 
M&GPrudential’s strong track record in 
supporting disadvantaged communities, 
we brought together the skills of our 
supply chain and volunteers from 
M&GPrudential and Corporate Property, 
to deliver new green space for a primary 
school in a disadvantaged neighbourhood 
of East London.
Through partnering with the Royal 
Horticultural Society, we supported 
and challenged the students to meet 
our sustainable design brief and develop 
their team-working, research, creativity, 
problem-solving and presentation skills. 
A total of 59 Year 6 pupils (ages 10–11) 
were set the challenge of designing 
three sustainable garden spaces at their 
school, including: 
i	
Using plants specifically selected to 
combat air pollution from vehicles;
ii	 Providing enhanced green space for 
both students and residents to enjoy 
(many of whom live in high-rise 
residences with limited or no garden 
space); and
iii	 Establishing an outside classroom and 
refreshed garden club space to bring 
students closer to nature, enabling 
them to grow their own fruit and 
vegetables, encourage wildlife and 
develop a deeper understanding of 
sustainability and the value of gardens 
for improved health and wellbeing.
These ideas were used to inspire the 
design of each garden. Staff volunteers 
re-used surplus materials from the 
project and we applied the skills of our 
fit-out contractor, joiners, bricklayers, 
landscaping supplier and total facilities 
management provider to turn these 
ideas into reality. Over 750 hours of 
volunteering time from our staff and 
supply chain were provided to deliver 
the project over the year. In establishing 
these sustainable garden spaces, we 
now have a platform to further build our 
relationship with the school, improve 
educational outcomes and raise 
aspiration for future career choices.

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Our new Group Head Office in London is 
rated as BREEAM Excellent. The building 
operates a mixed recycling and residual 
waste system, and the building’s Property 
Management Team is committed to 
diverting 100 per cent waste from landfill. 
The building also features 296 bicycle 
parking spaces with locker and 
shower facilities. 
3 Waste and recycling – reducing 
the waste we generate and diverting 
waste from landfill through recycling 
and recovery 
Significant improvements were made to 
the scope and quality of our non-
hazardous waste reporting during 2018. 
We generated 2,026 tonnes of waste from 
the UK and US (2017: 1,947 tonnes, UK 
and US only). It is common practice in the 
Asia region for landlords to manage 
general/non-recyclable waste on a 
collective basis for all the tenants in a 
building, with tenants then looking after 
recycled streams. These data are not 
reported here and we will continue to 
explore how best to report waste data 
for this geography.
Of the UK and US total, 82 per cent was 
diverted from landfill through recycling 
or incineration (2017: 82 per cent, UK and 
US only). The greenhouse gas emissions 
associated with our waste are calculated 
at 72 tCO2e, a small overall contribution 
to our corporate footprint in comparison 
to buildings’ energy use and air travel. 
The development of waste management 
guidelines for our Asia businesses to raise 
awareness of the waste management 
hierarchy and good practices has been 
rescheduled for delivery in 2019.
We continue to collaborate with our 
suppliers to seek opportunities to increase 
our recycling rate. We do not currently 
report the waste associated with our 
products and services, as this is considered 
immaterial to our overall waste footprint. 
Furthermore, as an office-based business, 
we are not large producers of hazardous 
waste (1 per cent of UK waste) and so do 
not currently capture this in our global 
reporting. We continue to review the use of 
disposable plastics in our offices. 
4 Water consumption – assessing 
and reducing our use of water
Absolute use of water across our global 
occupied estate increased by 1.6 per cent 
to 264,355 m3 (2017: 260,100 m3, restated) 
following improvements in the quality of 
data collection. When normalised against 
headcount, our use of water increased 
by 0.8 per cent to 11.03 m3/employee 
(2017: 10.94m3/employee restated). 
No sourcing issues were identified in 
2018. Water audits were completed in 
six of our larger serviced offices in Asia 
during 2018 (see page 25), although 
opportunities to reduce consumption 
at these sites were considered low. 
Opportunities to reduce consumption in 
our larger UK and US offices offer more 
potential where we exercise greater control 
on facility-related investments. 
In the US, computer control monitoring and 
additional metering have been installed at 
Jackson’s Corporate Way campus. This 
automatically detects a variance in flow of 
greater than 10 per cent and shuts down 
the water supply to the affected zone to 
enable investigation. Since its introduction, 
there has been a 6.7 per cent reduction in 
water use across the campus. Accurate 
baselines will be established to enable 
targets to be set. In the UK, additional 
metering will be installed at our Craigforth 
campus in Scotland in 2019 to help track 
consumption and inform the setting of 
reduction targets as part of a wider UK 
portfolio approach.  
5 Sustainable procurement – 
partnering with our supply chain 
to deliver sustainable solutions and 
source responsibly
Our procurement and supplier relationship 
management teams ensure that 
environmental sustainability requirements 
feature in key contracts with our supply 
chain partners. For example, in the UK 
the Group re-tendered our total facilities 
management and catering contracts for 
our operational property portfolio in 2018, 
including sustainability deliverables for 
both. Corporate Property continues to work 
with our new catering supplier to set targets 
and establish improvement programmes.
Enforcement actions
No fines or regulatory enforcement actions 
occurred during the year for environmental 
incidents (2017: zero). 
Environmental performance (continued)

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Environmental, Social and Governance Report 2018  Prudential plc  29
Our community investment strategy 
is closely aligned with our business 
purpose and with our stakeholders’ 
concerns and interests, focused on 
four principal themes: social inclusion, 
education and life skills, disaster 
preparedness and employee engagement.
We establish long-term relationships 
with our charity partners to ensure that the 
projects we support are sustainable, and 
we work closely with them to ensure that 
our programmes continuously improve.
Our approach to community 
investment 
We maintain long-term relationships with 
our charity partners, providing support 
through both funding and skills-based 
volunteering led by our employees. 
Our business units have the autonomy 
to manage their community investment 
programmes, depending on the local 
market need. They are guided by our 
strategy and framework for investing in 
the community. This is set out in our 
Group-wide Community Investment 
Policy. The policy outlines minimum 
standards expected from our community 
investment programmes and prohibits 
political funding and contributions to 
religious organisations with a clear aim 
to propagate a set faith. 
Being a responsible business requires 
a connection to, and an understanding 
of, the local issues communities face. 
We believe that our business units are 
best placed to manage community 
investment. In the US and Europe, Jackson 
and M&GPrudential have governance 
committees in place that regularly review 
community investment activity, strategy 
and spend. In Asia, the Prudence 
Supporting our 
communities
We take an active approach in helping tackle environmental 
and social challenges. Our strong contribution, harnessing 
the commitment of our people, continues to improve lives 
and build communities, wherever we work.
Jackson Charitable Trust –  
building access to financial education
In 2018, in addition to Cha-Ching, 
Jackson’s Charitable Foundation 
sponsored Ramsey Education’s 
Foundations in Personal Finance 
curriculum in 250 high schools across 
the US. The Foundation, which has a 
mission to advance financial knowledge 
on a national scale, has teamed up with 
Ramsey Education to ensure that more 
than 20,000 high school students have 
access to this critical financial education 
programme that teaches valuable skills 
to prepare them for a life of financial 
freedom. More than 3 million students 
have benefited from Foundations in  
Personal Finance in middle schools, 
high schools and universities nationwide. 
Foundations in Personal Finance can 
be used as a primary resource to 
fulfil requirements in mathematics, 
economics, family consumer science, 
business mathematics and personal 
finance. Educators who use this 
programme see their students build 
confidence, security and hope. They 
share stories of students going to college 
debt-free, paying cash for their first car, 
or even helping their parents learn about 
the importance of an emergency fund.

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Foundation, established as a unified 
charitable organisation governed by a 
statutory Board of Directors, maximises 
the impact of its investment across a large 
geographical reach. In Africa, Group Head 
Office oversees community investment 
initiatives that are vetted and approved 
during our annual reviews. 
The Board regularly reviews the Group’s 
community investment performance and 
scrutinises and approves the strategy on an 
annual basis. Paul Manduca, Chairman of 
Prudential plc, is the Board sponsor for 
corporate responsibility. The Material 
Subsidiary Boards oversee the business 
unit corporate responsibility initiatives. 
All business units submit comprehensive 
Board Reports to the Subsidiary Board 
and to the Board of Prudential plc annually, 
providing detailed information on major 
strategic initiatives. 
Monitoring and measuring 
our programmes
As a Group, we review all community 
investment activities to ensure they meet 
expectations. We believe that being a 
responsible business means going beyond 
charitable cash donations for programmes. 
We believe the focus of our community 
activities should be strategic and long-
term. Programmes that we support include 
significant in-kind support and skills-based 
employee volunteering. 
We use performance metrics that are 
aligned to the London Benchmarking 
Group (LBG) guidelines. These are used 
by Group Head Office to monitor progress 
and cover the value of: cash and in-kind 
contributions, employee volunteering and 
management costs. 
In 2018, the Group spent £27.3 million 
supporting community activities. The 
direct cash donations to charitable 
organisations amounted to £19.6 million, 
of which approximately £4.4 million came 
from our UK and Europe operations. The 
remaining £15.2 million was contributed 
to charitable organisations by Jackson 
and Prudential Corporation Asia.
The cash contribution to charitable 
organisations from our UK and EU 
operations is broken down as follows: 
education £2,337,000; social, welfare 
and environment £1,995,000 and 
cultural £64,000.
The balance includes in-kind donations 
as set out on the Group website 
and is prepared in accordance with 
LBG guidelines. This included 11,710 
employees who dedicated 117,491 hours 
of volunteer service in their communities, 
both of which were record figures for 
the Group. Furthermore, £479,633 
was donated across the Group by our 
employees through our payroll 
giving scheme.
Our 2018 community investment reporting 
is assured by Deloitte LLP. Further 
information and Deloitte’s assurance 
statement can be found here.
2018 highlights
Prudential RideLondon 
Prudential RideLondon has established 
itself as a major mass-participation and 
charity fundraising event in the UK and 
in the past six years has raised more than 
£66 million for charity. In 2018 it raised 
more than £13 million for charity to set 
a European record for a cycling event, 
beating the previous year’s record of 
£12.75 million. There was a sharp rise in the 
number of participants riding for charity – 
55 per cent, up from 44 per cent in 2017. 
More than 900 charities have benefited. 
Prudential has sponsored the event since 
inception in 2013 and in 2018 our own 
community engagement partnership, 
PruGOals, supported 420 16 to 18-year-
olds from 41 schools across the UK to 
improve their self-esteem, aspiration and 
educational outcomes. The PruGOals 
programme helps young people to achieve 
their goals regardless of social or economic 
background by providing aspirational 
challenges, culminating in taking on the 
Prudential RideLondon Surrey 46. The 
2018 post-event evaluation report from the 
charity Teach First reveals that students’ 
‘resilience’ and ‘determination’ rose by 
a third after completing the programme.
Cha-Ching – the first global 
financial education programme 
Developed by Prudential to address 
financial illiteracy, Cha-Ching is a global 
financial responsibility and education 
platform. Now in its eighth year, the 
programme is aimed at primary school-age 
children and has expanded from its origins 
in Asia to each of the four continents where 
the Group does business. In all of the 
markets where it has been launched, it has 
been very positively received, with strong 
feedback from parents, teachers, children 
and political stakeholders. 
In Asia, the programme reaches over 
34 million households a day through 
a multi-distribution platform including 
Cartoon Network Asia, and through its 
own standardised curriculum and school 
contact programme it has reached 
more than 400,000 children so far. The 
curriculum, developed in partnership with 
Junior Achievement, continued to be well 
received during 2018 and was rolled out 
to a further 180,000 students in Indonesia, 
the Philippines, Malaysia and Thailand. 
A new song titled ‘10 Things’, summarising 
key Cha-Ching learnings, was launched 
in Asia in August 2018. The song is 
a collaboration with six child stars from 
across South East Asia who donated their 
time to record it. It has since generated 
more than one million views on social 
media and digital platforms. Cha-Ching 
was also selected to be showcased at the 
Paris Peace Forum in November 2018, 
where around 900 projects were 
submitted worldwide and only around 
100 were selected. 
In the US, the Jackson Charitable 
Foundation has brought Cha-Ching 
to more than 1.5 million elementary 
school students annually through 
partnerships with Junior Achievement USA 
and Discovery Education. The Cha-Ching 
videos and lessons have been integrated 
into Junior Achievement’s third-grade 
classroom programme. 
In the UK, working with Young Enterprise, 
Prudential has developed an online 
educational resource for primary school 
students in England and Wales that 
has enabled the Cha-Ching programme to 
be brought into the classroom. The Quality 
Marked teaching resource is linked to 
the Personal Finance Education Group’s 
Financial Education Framework and has 
guidance for teachers on how most 
effectively to integrate activities into 
their teaching as well as activities for 
home learning. Since its launch in late 
2016, the resource has been downloaded 
28,478 times in 1,179 schools across 
the UK. 
In other markets, the online educational 
resource has also been utilised to support 
the roll-out of the Cha-Ching programme 
across our African markets as part of a 
financial literacy campaign delivered jointly 
by Junior Achievement Africa and 
Prudential Africa employees. 
Supporting our communities (continued)

www.prudential.co.uk
Environmental, Social and Governance Report 2018  Prudential plc  31
Secondary school scholarships 
across Africa
In our markets in Africa we have committed 
to provide support for academically able 
but financially disadvantaged high school 
students, and to help build capacity for 
training in actuarial sciences at local 
universities. Prudential has worked with 
several charities operating in Ghana, 
Kenya, Uganda and Zambia to deliver the 
Prudential Scholarship programme, with 
the aim of improving quality and access 
to education for all and ensuring that 
everyone marginalised by society receives 
education, skills and support towards 
employability. The Prudential Scholarship 
Programme has supported more than 
7,000 academically able but financially 
disadvantaged high school students to 
complete their secondary education over 
either four or five years of high school. 
This has included financial bursaries to 
cover the cost of school fees and boarding 
fees where necessary, uniforms and 
books, as well as a programme to upgrade 
conditions to increase attendance at three 
schools in Uganda.
Disaster readiness and relief 
with the Prudence Foundation
Since its inception, Prudence Foundation 
has had a clear focus on creating social 
value through building disaster 
preparedness capabilities in communities 
and maintaining disaster relief support in 
emergencies, with a focus on three key 
areas: mass education and awareness, 
capacity building and advocacy. Natural 
disasters are a key issue in Asia, with over 
40 per cent of the world’s natural disasters 
happening in the region, making it the most 
disaster-prone area in the world. 
While focusing on disaster preparedness 
and long-term recovery, the Prudence 
Foundation also continues to undertake 
major emergency relief efforts across Asia. 
During 2018 the Foundation provided 
support to help with relief and recovery 
efforts in Taiwan (Hualien earthquake) 
and Laos (flooding) and in 2019 we will be 
supporting long-term recovery needs in 
Lombok and Sulawesi, Indonesia, which 
were both severely affected by natural 
disasters in 2018.
Safe Schools Programme –  
developing disaster response and support
Asia-Pacific is the world’s most 
disaster‑prone region, and the Prudence 
Foundation continues to focus on disaster 
preparedness, relief and recovery in our 
Asia markets. The Prudence Foundation 
works with the humanitarian, 
government and private sector to help 
communities better prepare for such 
disasters before they strike, as well as 
providing support at times of emergency 
response and recovery. 
During 2018, the Prudence Foundation 
continued to support the Safe Schools 
programme, partnering with Plan 
International and Save the Children in 
Cambodia, the Philippines and Thailand. 
The programme focuses on capacity-
building for students, teachers and local 
community members on disaster 
preparedness. Since 2013, more than 
85,000 students and 40,000 adults 
have participated. 
In 2018, the Foundation formed a new 
partnership with Save the Children and 
the Philippines Department of Education 
to implement a nationwide-focused 
programme. The three-year programme 
is based on the experience of the 
Foundation and Save the Children 
regarding the Safe Schools programme. 
It will aim to develop a disaster risk 
reduction management information 
system, together with training and 
capacity-building of teachers and local 
government officials. This innovative new 
approach to Safe Schools aims to ensure 
that every school in the Philippines will 
be able to benefit from the Safe Schools 
programme, providing the Department 
of Education with the information to help 
allocate its resources and expertise to 
support the ongoing implementation of 
the global and ASEAN Comprehensive 
Safe Schools framework. This 
programme has the potential to benefit 
20.9 million students in close to 47,000 
schools across the Philippines. The 
Foundation also aims to develop robust 
research on this programme so it can 
potentially be implemented in other 
markets across Asia.

32  Prudential plc  Environmental, Social and Governance Report 2018
www.prudential.co.uk
In addition, as part of a regional partnership 
with Habitat for Humanity for regional 
volunteering programmes to support 
communities in need, in April 2018 over 
70 volunteers from across the region spent 
one week in Yogyakarta, Indonesia, 
helping to build homes for those in need 
and an early childhood development 
centre. In November 2018, the Foundation 
led another group of over 80 regional 
volunteers to Siem Reap in Cambodia to 
build houses for families desperate for new 
homes and also support the refurbishment 
of a primary school.
Prudence Foundation believes the private 
sector has an important role to play in 
strengthening community disaster 
resilience. While there is no simple 
solution, cooperation between civil society, 
government and the private sector is key to 
reducing human and economic loss. The 
Foundation is aiming to evolve its efforts in 
encouraging more strategic investment in 
disasters by the private sector through 
focusing on technology used in this 
context. In 2019, a new programme is 
being developed to support organisations 
in using technology to protect and save 
lives in the region from the devastating 
effects of natural hazards. 
Helping to make Asia more 
prepared and safer
Globally, around 3.5 million people die 
every year due to unintentional injuries. 
Three thousand adolescent deaths per 
day worldwide could be prevented with 
better preparedness and access to health 
services, education and social support. 
To support efforts to address this issue, 
Prudence Foundation developed and 
implements the Safe Steps programme. 
Safe Steps is a first-of-its-kind, in terms 
of reach and breadth of partnerships, 
pan-Asian public service initiative to 
enhance awareness through the 
dissemination of educational survival tips 
for natural disasters, road safety and first 
aid. The programme was created and 
developed by Prudence Foundation in 
partnership with National Geographic 
and the International Federation of Red 
Cross and Red Crescent Societies. It is a 
multi-platform programme including on-air 
video messages and informative website 
and educational material that can be shared 
among communities. At its core, Safe Steps 
utilises one-minute videos to provide 
simple-to-understand messages on how 
to be prepared and stay safe in three areas 
linked to unnecessary loss of life: natural 
disasters (launched 2014), road safety 
(2016) and first aid (2017).
The programme continues to reach an 
estimated 250 million people every day 
across Asia via various partnerships with 
government, humanitarian and private-
sector organisations. In 2018, new 
partnerships were formed in Cambodia, 
Hong Kong, the Philippines, Singapore 
and Vietnam. For example, in Hong Kong 
a two-year partnership was formed with 
the Hong Kong Red Cross Society to roll out 
all Safe Steps topics to schoolchildren and 
the community, together with the support 
of Prudential Hong Kong. In Singapore 
in 2018, the Prudence Foundation and 
Prudential Singapore embarked on a new 
partnership with the Singapore Red Cross 
Society, focusing on a mass-community 
first-aid training programme aimed at 
the younger demographic. Prudence 
Foundation and Prudential Hong Kong 
also entered into a partnership with the 
Hong Kong Red Cross, working on 
a two-year partnership to build ‘Resilient 
Communities’. In Vietnam, Prudential 
formed a partnership with the Vietnam Red 
Cross Society to distribute the Safe Steps 
First Aid information to school students, 
teachers and the community in Ho Chi 
Minh City and Hanoi. 
2019 – Expanding and developing
In 2019, we will extend the Cha-Ching 
curriculum across schools in Asia, as well 
as continuing to expand the programme 
in all our markets, including the US, the 
UK and Africa, to promote greater financial 
literacy. In addition to Cha-Ching, we have 
continued to support the high-school 
scholarship programmes in Ghana, Kenya, 
Uganda and Zambia. Our Africa business 
is working to develop new community 
investment partnerships, with a focus 
on health. 
In 2019, building on the success of the 
2018 PruGOals programme, in collaboration 
with Teach First, Greenhouse Sports, 
The Transformation Trust and Dame Kelly 
Holmes Trust, we will support a further 
300 young people to take part in PruGOals. 
The programme focuses on providing 
opportunities to develop new skills and 
build resilience and greater aspiration with 
a challenging but achievable goal. In 2019 
key elements of the programme, such as 
certificated cycling proficiency, will be 
delivered directly in schools, helping to 
prepare the next generation of commuter 
cyclists. The programme is inclusive, 
with young people taking part from all 
backgrounds across the UK.
Supporting our communities (continued)

www.prudential.co.uk
Environmental, Social and Governance Report 2018  Prudential plc

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