Prudential plc
Sustainability Report2023

For Every Life,For Every Future
Sustainability for Real-world Impact and Long-term ResilienceIn brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Our commitment to sustainability isembedded in our company purpose,

Managing climate-related risks and opportunities

Reference tables

Prudential plc

The Prudential philosophy of supporting our customers
and communities has remained steadfast over the
past 175 years. This report sets out how we deliveredon that during 2023.
In brief

reflected in our values, and underpinning ourbusiness strategy. Our mission is to be the mosttrusted partner and protector for this generationand the generations to come, by providing simple
and accessible financial and health solutions.

Prudential at a glance
Our sustainability highlights
Sustainability at Prudential
Our sustainability strategy
Foreword from CEO

2
4
5
6
7

Our approach to sustainability
From ESG to sustainability
Our targets and progress
Challenges and future goals
Sustainability governance
What shapes our approach
Aligning with the UN SDGs
Our approach to reporting
Rising to the climate challenge

9
11
12
13
15
18
19
20

Sustainability Report 2023

1

Good governance and responsible business practices
69
69
70
71
71

Corporate governance
Combatting modern slavery
Responsible tax strategy and practices
Fighting financial crime
Whistleblowing

Managing climate-related risks and opportunities
72

TCFD disclosures

Reference tables
81
81
83
87
89

Hong Kong Stock Exchange requirements
Environmental
SocialSASB Insurance Standard
TCFD Index
Our Group-wide policies relating
to our sustainability strategy
SECR report95
97

Our activity: strategic pillars

Our strategy goes beyond managing environmental, social and governance (ESG) risks
As individuals and as anorganisation, we want tocontribute to a greener,
more inclusive, andresponsible future for ourcustomers, people,
shareholders and thecommunities in which
we operate.

Our activities in 2023
provide good examples
of how we are delivering
for the next chapter ofgrowth and taking proactive
steps to achieve oursustainability ambition.

As we evolve ourterminology to use themore comprehensive
umbrella of ‘sustainability’,
we demonstrate ourambition to run asustainable business thathas real-world impact andbuilds long-term resilience.

In 2024, we will be taking
a strategic and integrated
approach to sustainability,
tracking ourselves against
key metrics to hold ourselves
accountable to all
our stakeholders.

Simple and accessible health and financial protection
Delivering partnerships and digital innovation
for health outcomes
Developing sustainable and inclusive offerings
Building resilient communities
Responsible investment
Financing a just and inclusive transition
Decarbonising our portfolio
Mainstreaming responsible investmentsin emerging markets
Sustainable business
Empowering our people
Establishing sustainable operations and value chain
Harnessing thought leadership to shape the agenda

24
26
28
32
37
39
41
42
48
50
57
65

Prudential plc
Annual Report 2023

For Every Life,For Every Future
A strategy to protect Asia & Africa

Reporting suite overview
Visit prudentialplc.com

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Prudential at a glanceManaging climate-related risks and opportunities

Prudential plc Sustainability Report 2023

Reference tables

2

Leading positions in high-growth markets driven by significant need for protection and rising wealth.

Top 3

positions in 12 Asia life markets1

We provide life and health insurance and asset management in
24 markets across Asia and Africa. We are headquartered in Hong Kong,and have dual primary listings on the Stock Exchange of Hong Kong
(2378) and the London Stock Exchange (PRU).

Top 5

positions in 6 Africa life markets1

Trusted household brand18 million
customers2

Our markets

175 yearsof history

Life insurance

Broad footprint across Asia and Africa

Asset management

Chinese
MainlandJapan

4 billion
combined population3

c.$1 trillion

growth opportunity in our markets over the next 10 years4

Korea

Multi-channel distribution at scale
India

Myanmar

Macau
Laos

TaiwanHong
Kong

Thailand

Côte
D’Ivoire

Nigeria

Cambodia
UgandaTogo
Cameroon

ZambiaMalaysia
Singapore

Kenya
Indonesia

active agentsThe #1independent insurer in Asia bancassurance5

Strong and highly resilient capital position

VietnamGhana

68,000+Philippines

Strong and highly resilient capital position, with limited exposure
to market risk reflecting a long-held quality focus.

295%

GWS coverage ratio over GPCR
1. As reported at full year 2023 unless otherwise specified. Sources include formal (eg competitors results release, local regulators and insurance association) and informal(industry exchange) market share. Ranking based on new business (APE sales, weighted new business premium, full year premium or weighted first year premium)or Gross Written Premium depending on availability of data. Rankings in the case of Chinese Mainland, Taiwan and Myanmar are among foreign insurers, and for
India is among private companies. Countries based on nine months ended September 2023: Philippines, Ghana (Africa) and Kenya (Africa) and full year 2022:
Laos, Zambia (Africa) and Togo (Africa) and full year 2020: Nigeria (Africa).
2. Full Group, including joint ventures.
3. Source: United Nations, Department of Economic and Social Affairs, Population Division, World Population Prospects 2022.
4. Source: Swiss Re forecast (July 2023) Forecast incremental annual gross written premium in 2033 compared with 2022.
5. Based on FY2022 data from local regulators, industry associations and Prudential' internal data. Estimates are based on market intelligence, if data is not publicly available.

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

At Prudential, we aim to be the most trusted
partner and protector for this generationand generations to come, by providing simple
and accessible health and financial solutions.
Our sustainability ambition: Deliver real-world
impact and long-term resilienceAs a life and health insurer and long-term investor, ourapproach to sustainability is at the core of our purpose: ‘For
Every Life, For Every Future’. We want to have a positive impact
on the future and wellbeing of our planet and our societies.
For us, positive impact means creating value and ensuring
this is underpinned by good governance and responsible
business practices. Our sustainability strategy centres on
three pillars: Simple and accessible health and financial
protection, responsible investment and sustainable business.

Our strategic approach: From ESG
to sustainability
The evolution of our sustainability journey is in line with our
mission, our purpose and our 175-year history. To reflect our
new purpose, we have adopted a refreshed strategic approachto our sustainability journey, evolving from ESG to sustainability.

Our impact: Long-term value creation
for society
Creating a sustainable, inclusive, and responsible future forour customers, people, shareholders and the communities
in which we operate.

Managing climate-related risks and opportunities

Reference tables

Prudential plc

Sustainability Report 2023

3

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

Prudential plc

Sustainability Report 2023

4

Our sustainability highlights
Simple and accessible
health and financial protection

Responsible
investment

Sustainablebusiness

Increase access to health andfinancial protection for every life

Enable a just and inclusive transition
to net zero for every future

Embed sustainability into our business and value chain
to amplify the pace and scale of our impact

17.4 million

Upgraded our weighted average carbon intensity (WACI)
reduction target from 25% toTargeting all people managers to have a

total life segment policies in force
Launched PruBabies to provide free protection for over

18,000 infants

against infectious diseases in the Philippines
Since launching our microinsurance product PRUKasih Aman
in Malaysia in 2022, we have protected

9,700 individuals

55%
by 2030

Established a new

75 percentile

largest equity ETF fund in Singapore
Eastspring voted in

Nearly 28,000
employee volunteering hours

40% women

Anchor investor of thewhich operates as an underpin for our WACI reduction$13 million
2 million

Targetingin our Group Leadership Team by the end of 2026

(at time of launch) – iShares MSCI Asia ex Japan Climate Action ETF

students reached and over 66,000 teachers trained
through Cha-Ching curriculum (since 2016)

by the end of 2026

investment target on financing the transition,from low-income communities and those with disabilities

invested in building community resiliencesustainability-linked KPI

97.2%

Targetingth

on the employee Net Promoter Score (eNPS)

10%

of proxy votes for which it was eligible to vote, andconducted 875 corporate engagements in 2023of the total Executive Directors' 2024 Prudential Long Term Incentive Planawards linked to sustainability, of which 5% will be linked tocarbon reduction and another 5% linked to diversity

87%

22%

of Eastspring’s international funds (SICAV) received EU SFDR Article 81 status

Signed Nairobi Declaration
on Sustainable Insurance,

confirming our commitment to the Sustainable Development Goals (SDGs) in Africa
1. Under the European Union Sustainable Finance Disclosure Regulation, Article 8 refers to funds that
promote investments or projects with positive or social qualities.

Reduction in global absolute Scope 1 and 2 (market-based) GHG emissions
compared to 2022

Connecting Health and Climate

Prudential EOS Climate Impacts Initiative and Prudence
Foundation’s partnership with the IFRC

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Sustainability at Prudential
Index inclusion and ESG ratings
MSCI

AA

2022: AAAwardsPlatinum Award for the Most Sustainable
Company (non-Hang Seng Index Large
Market Capitalisation) Category

Sustainalytics

2023 Best Corporate Governance and ESG
Awards, The Hong Kong Institute ofCertified Public Accountants

2022: 18.2

International Life Insurer of the Year
– Malaysia, Philippines and Vietnam

16.3
CDP

B

Insurance Asia Awards 2023
ESG Initiative of the Year – Malaysia
and Vietnam

2022: A-

Insurance Asia Awards 2023

S&P Global CSA

Silver Award – Education, Art & Culture,
Special Projects for Cha-Ching Money
Adventures

53/100

ranked in the 72nd percentile2022: 61/100 ranked in the 71st percentile

ISS

Prime, 2nd decile
2022: Prime, 2nd decile

Silver Award – Education, Art & Culture,
Digital and Innovative Experiences for
Cha-Ching Money Adventures
Anthem Awards 2023

Memberships and signatories
Principles for
Responsible
Investment

Asia Investor
Group onClimateChangeTCFD

Workforce
Disclosure
Initiative

Climate Action
100+

Women’s
Empowerment
Principles

HMT Women
in Finance
Charter

FTSE4Good

3.6/5
2022: 4.3/5

United Nations-convened Net Zero Asset
Owner Alliance (NZAOA)

Reference tables

Prudential plc

Sustainability Report 2023

5

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Prudential plc

Reference tables

Sustainability Report 2023

6

Our sustainability strategy
Sustainability for real-world impact and long-term resilience

Ambition
PurposeFor Every

For Every

Pillars

Priorities

Simple and accessible health and financial protection

Responsible investment

Sustainable business

Increase access to health and financial protection for every life

Enable a just and inclusive transition to net zero for every future

Embed sustainability into our business and value chain to
amplify the pace and scale of our impact

Delivering partnerships and digital innovation for health outcomes
Drive positive health outcomes through partnerships
and digital innovation

Decarbonising our portfolio
Committed to decarbonise our portfolio and become a net zero asset
owner by 2050

Empowering our people
Empower our talent pool by upgrading​their sustainability capabilities
and advancing​our diversity, equity, inclusion and belonging strategy

Developing sustainable and inclusive offerings
Develop sustainable and inclusive offerings to increase access toprotection for underserved customer needs and communities

Financing a just and inclusive transition
Financing a just and inclusive transition​with emerging markets
considerations​at the forefront

Establishing sustainable operations and value chain
Embed sustainability in our day-to-day operations as a business,
including with our suppliers and partners

Building resilient communities
Support the communities in which we operate, building resiliencethrough the work of our business units and Prudence Foundation

Mainstreaming responsible investments in emerging markets
Leverage our influence as asset owner to mainstream responsible
investments in emerging markets

Harnessing thought leadership to shape the agenda
Leverage our advocacy power to shape a sustainability agenda thatplaces emerging markets considerations at the forefront

Foundation

Good governance and responsible business practices
Corporate governance, conduct and ethics, risk management, external reporting and benchmarking

New targets> For more on how we areprogressing against ourtargets, see Page 11

55% weighted average carbon intensity (WACI)
reduction by 2030

Established a new investment target on financing
the transition, which operates as an underpin for our
WACI reduction target

40% female representation in Group Leadership
Team by the end of 2026

All people managers to have sustainability-linked
KPIs by the end of 2026

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

Prudential plc

Sustainability Report 2023

7

Foreword

Delivering real-world impact and long-term resilience
Continuing our journey to provide simple andaccessible health and financial solutions.
At Prudential, sustainability is at the core of what we do. As a lifeand health insurer and long-term investor, we have been on oursustainability journey for more than 175 years, including 100
years in Asia.
2023 was a transformative year for us as we aligned oursustainability strategy with our new purpose, mission andbusiness strategy.
With our new purpose, ‘For Every Life, For Every Future’, as our
guiding light, our mission is to be the most trusted partner andprotector for the current and future generations, by providing
simple and accessible health and financial solutions.
Our refreshed sustainability strategy brings this to life, exemplifying
Prudential’s collective responsibility to deliver real-world impact andbuild long-term resilience. This will see us contributing to a greener,
more inclusive, and responsible future for our customers, people,
shareholders, and the communities in which we operate.
More than just words on a page, our refreshed strategy is an
integrated, purposeful approach, which goes beyond managing ESG
risks to developing long-term value creation for society. As acollective and as individuals, we are all rolling up our sleeves tocontribute to the targets set for our entire organisation and toachieve sustainable growth together.
I’m proud of the achievements we have already made in 2023 todemonstrate commitment to three pillars – simple and accessible
health and financial protection; responsible investment; andsustainable business.

We have made great strides to further our aspiration to fill thesignificant health and financial protection gap in our 24 markets.
In the Philippines, we launched the PRUBabies programme,
offering free protection for any four infectious diseases to over
18,000 infants. As the impact of climate change can facilitate thetransmission of vector-borne diseases, this product brings families
security and peace of mind.
We also believe that financial inclusion starts with education andliteracy, and as of the end of 2023, over two million children and
66,000 teachers have been reached and trained by Cha-Ching,
our award-winning financial literacy programme owned by ourphilanthropic community investment arm, The Prudence Foundation.
We remain committed to becoming a net zero asset owner by 2050.
Our responsible investment approach believes that supporting
Asia and Africa to transition from ‘brown’ to ‘green’ in a just andinclusive manner will be pivotal. This year, we revised our interim
portfolio decarbonisation target up, committing to deliver a 55%
reduction in the carbon intensity of our investment portfolio (WACI)
by 2030 against our 2019 baseline. We also took tangible steps
towards financing the transition, and I’m proud that Prudential was
the anchor investor (with $300 million) in Singapore’s largest andfirst-ever climate-focused equity ETF (at time of launch), tracking
companies in Asia (excluding Japan) that are demonstrating climatetransition leadership.
For us, operating a sustainable business is critical to the successof our strategy. Having met our 2023 target of employing 35%
of women in senior management, we have challenged ourselves
further with a new target of 40% of women representation in ourGroup Leadership Team by the end of 2026. My personal ambition
is for us to reach gender parity.

2023 was a transformative year for
us as we aligned our sustainability
strategy with our new purpose,
mission and business strategy.”
Investing in our current and future talent, training, systems andour overall culture is critical to continuing to serve billions of people
across Asia and Africa. As part of establishing this culture, we havecommitted to setting sustainability-linked KPIs for all our people
managers by the end of 2026, and will launch foundationalsustainability training to ensure our people have access to
key knowledge.
While we have made significant progress over the years, werecognise there are areas where we can still do more. In 2024,
we will work on further refining our social strategy and targets,
including advancing our diversity and inclusion efforts as we
contribute to increasing access to health and financial protection
across our markets. On the topic of environment, we are looking
towards developing our position on nature and biodiversity, andexploring how we can integrate it into our net zero ambition andclimate management approach.
I am really looking forward to bringing our strategy to life to deliver
value to all our stakeholders. Here’s to what we can continue toachieve together, ‘For Every Life, For Every Future’.
Anil Wadhwani
Chief Executive OfficerIn brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Our approach tosustainability

Managing climate-related risks and opportunities

Reference tables

Prudential plc

Sustainability Report 2023

From ESG to sustainability
Our sustainability purpose and strategy
Our targets and progress
Challenges and future goals
Sustainability governance
What shapes our approach
Aligning with the UN SDGs
Our approach to reporting
Rising to the climate challenge

8

9
9
11
12
13
15
18
19
20

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

Prudential plc

Sustainability Report 2023

9

From ESG to sustainability
As our approach to sustainability has evolved, how we talk aboutsustainability has evolved too. Our commitment to sustainability
is embedded in our new purpose ‘For Every Life, For Every Future’
and reflected throughout our values and business strategy.
Our move to embrace sustainability as a clear driver of value forboth our business and society goes beyond a focus on our ESG
targets. While ESG remains the framework we use to identify,
assess and manage non-financial risks and opportunities material
to Prudential, we have evolved from using the terminology ESG tosustainability, an all-encompassing term that signifies the creationof value and growth through the positive impact we strive to havein our markets. This signifies the latest step of a journey we havebeen on for more than 175 years.

Our sustainability purpose
and strategy
As a life and health insurance provider and long-term investor in Asia
and Africa, we are committed to playing our part in increasing accessto health and financial protection, enabling a just and inclusivetransition to a low-carbon future and paving the way to long-term
resilience for our customers, people, communities and shareholders.
Our sustainability strategy is core to who we are as a businessand our purpose ‘For Every Life, For Every Future’ that speaks to
our ambition to deliver real-world impact and long-term resiliencein the markets where we operate for a more sustainable, responsible
and inclusive future.
Our sustainability strategy reflects our business strategy, purpose
and values. It speaks to the societal and environmental contexts
in our markets across Asia and Africa and leverages the strengthsof our organisation to create long-term value for the business andour stakeholders.

Our sustainability strategy actively places the considerations ofemerging markets at the forefront reflecting the needs of manyof the markets in which we operate. There is broad recognition of
the need to manage the energy transition in a just and inclusive
way, yet there is limited emphasis in mainstream discussions on
exactly how difficult this process for emerging markets can be.
They are currently the largest greenhouse gas emitters, but havehistorically contributed the least, have the largest financing gaps
and are most vulnerable to the physical impacts of climate change.
With our sustainability strategy we aim to bridge the gap between
developed and emerging markets. We align to global standards asmuch as possible, but are willing to do things differently if we
believe that will create more positive outcomes for the world andemerging markets in particular.
Affordability is still a key hurdle for many in emerging markets
to access health and financial protection. As a result, we strive
to provide more affordable products and solutions to help close
the health and protection gaps between emerging and developed
markets. By putting our customers at the centre of our productdevelopment process, we aim to adapt to changing demographics
and meet the evolving needs of our customers.
Our new sustainability strategy is centred on three pillars that reflect
who we are as a business, and each pillar has three key priorities
that map out our opportunities for impact:– Simple and accessible health and financial protection:
As an insurer, we have been offering products and services thattransform societies for the past 175 years, 100 of those in Asia.
This puts us in a good position to increase affordable access tohealth and financial protection ‘For Every Life’, across our markets.
We aim to drive positive health outcomes through partnerships
and digital innovation, develop more sustainable and inclusive
offerings, and build resilient communities through the work of
the Prudence Foundation and our markets in Asia and Africa.

– Responsible investment: As an asset owner and asset manager,
we can deploy our investments and stewardship strength toenable a just and inclusive transition to net zero ‘For Every Future’.
We have pledged to become a net zero asset owner by 2050,
and be responsible custodians of the environment. We will dothis by decarbonising our portfolio, financing a just and inclusivetransition, and leveraging our influence to mainstream
responsible investment in emerging markets.
– Sustainable business: As a responsible business owner, weendeavour to embed sustainability in our day-to-day operations.
We do this by empowering our people through our culture, building
future-ready capabilities and advancing our diversity and inclusion
efforts, to deepen belonging at Prudential by respecting andappreciating differences; driving a sustainable value chain andsustainable operations that amplify the pace and scale of ourimpact; and leveraging our 175-year history and advocacy power
to shape a sustainability agenda that places emerging market
considerations and future generations at the forefront, including
raising awareness of the intersection of climate change and health.
Good governance and responsible business practices form thecritical foundation of our sustainability strategy, covering key
aspects of corporate governance, conduct and ethics, risk
management and third-party oversight. As guardians of ourcustomers’ and shareholders’ assets, we consider all material risks,
including ESG risks, in fulfilling our fiduciary duty.

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

Prudential plc

Sustainability Report 2023

10

From ESG to sustainability continued

We have the potential to protect
4 billion people across our four
geographic regions of Greater China,
ASEAN, India and Africa. Our actions
as a partner and protector will
ultimately support a sustainable andinclusive future, for this generationand the next.”
Ben Bulmer, Chief Financial Officer,
Chair of the Group Sustainability Committeewith Ben Bulmer, Chief Financial Officer, Member of the Group Executive Committee
responsible for sustainability, and Chair of the Group Sustainability Committee

What does sustainability mean for Prudential?
Sustainability signifies the creation of value and growth
for all our stakeholders through positive impact. As a result,
we have refreshed our strategic approach, shifting from ESG
to sustainability to reflect this. This shift encompasses ourenvironmental, social and governance commitments, yet at thesame time recognises the opportunity given our unique position
to support a just and inclusive future for existing generations
and generations to come.

How can sustainability enable Prudential tocreate value?
Embedding sustainability into all pillars of our organisational
strategy is driven by our purpose, our commitment to preserveand deliver value for all stakeholders. It allows us to identify andmanage developing risks that could have financial, non-financial
or reputational implications.

There are four main aspects:
1. For our customer: By integrating sustainability considerations
into our customer offerings, we will be in a better position toalign with the evolving needs of customers.
2. For our employees: Our people are critical to our continued
success. They want to be part of an organisation that is socially
responsible and guided by a strong purpose – where everyone
can build a rewarding career and have a strong sense of
belonging. Walking the talk as a leading organisation canhelp us ensure we can keep attracting and retaining talented
individuals who find fulfilment in serving our business today
and in the future.
3. For our shareholders: Maintaining effective sustainability
governance and risk controls help us to mitigate risks to thebusiness’ daily operations arising from sustainability factors orsustainability-related opportunities, which we can leverage tocreate shareholder value. To build investor confidence and maintain
trust from rating agencies, we must demonstrate actionablecommitments to sustainability. This is to create the necessary
foundation for aligning with investors’ long-term interests.
4. For our communities: We invest in developing resilient
communities by supporting initiatives that champion financial
education and inclusion, health and safety protection andclimate adaptation. Our community investment strategy aligns
with our purpose and reflects our values and impact ambition.

What has been the most significant sustainability
achievement in 2023?
In 2023, Prudential was the anchor investor for the largest
and first ever climate-focused equity Exchange Traded Fundin Singapore (at time of launch), investing $300 million.
This is an evolutionary step, giving investors access to best-in-classcompanies across Asia Pacific (excluding Japan) positioned at theforefront in the transition to a low-carbon economy.

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

Prudential plc

Sustainability Report 2023

11

Our targets and progress
We have committed to becoming a net zero# asset owner by 2050.
In line with the recommendations of the Paris Agreement, we haveset shorter-term targets. In 2022, we committed to reviewing our
climate-related ambitions for our investment portfolio, including
setting a 2030 decarbonisation target by the end of 2024, in linewith the Net Zero Asset Owner Alliance (NZAOA) Protocol. Since

then, we have established a new target that is outlined in the tablebelow. We have established a new investment target on financing
the transition, which operates as an underpin for our portfolio
decarbonisation target, as we believe that decarbonisation and thetransition from brown to green of our economies are inherently
connected. When we refreshed our sustainability strategy to alignTargets

Timingwith our new business strategy, we also set additional targets
around sustainable business and put measurement processes
in place, to obtain data and set baselines.
> For more information on our climate-related metrics,
please refer to the section on Managing our climate-relatedrisks and opportunities.

Board’s evaluation of progress

Detail in report

Responsible investment
New

New

Deliver a 55% reduction in the carbon emissions^ intensity of our investment
portfolio by 2030 against our 2019 baseline

By 2030

Internal investment target on financing the transition to a lower-carbon future.
(Note: This is a critical underpin for the WACI reduction target and is linked to our
executive remuneration)

By 2030

New target> Page 78

Engage with the companies responsible for 65% of absolute emissions in ourinvestment portfolio

Ongoing

Fully met

> Page 42

Deliver a 25% reduction in our operational emissions intensity from a 2016 baseline,
and abating the remaining emissions via carbon offsetting initiatives, to becomecarbon neutral across our Scope 1 and 2 (market-based) emissions by the end of 2030

By 2030

On track> Page 78

During 2023 we reduced the weighted average carbon intensity(WACI) of our portfolio by 50% against our 2019 baseline

This is an ongoing annual target, which we have fully met in2023 for the identified cohort of companies
On track> Page 78

We achieved an intensity ratio of 0.95 tCO2e/FTE for 2023,
putting us on track to meet our 2030 target of 1.65 tCO2e/FTE

Sustainable business
Employ 35% of women in senior management† by the end of 2023

By 2023

Fully met

> Page 54

At 31 December 2023, the representation was 35%, in line withour 2023 target
New

Ensure 40% of women in Group Leadership Team‡ by the end of 2026

By 2026

New target> Page 54

New

All people managers to have sustainability-linked KPIs by the end of 2026

By 2026

New target> Page 49

The above performance against targets is as of 31 December 2023. The Board will continue to review and evolve this as the Group progresses on its sustainability journey to consider evolving scientific data and stakeholder expectations.

The carbon footprint of the investment portfolio is calculated forthe following assets, in line with industry practice and standards:– Assets from wholly owned businesses only;– Shareholder and policyholder assets only;– Assets in the following asset classes only: listed equities
and classified corporate bonds, using industry practice; and– Assets in the following investment vehicles: segregatedmandates, collective investment schemes and exchange tradedfunds (ETFs).
Further information is provided in the Basis of Reporting here:
www.prudentialplc.com/~/media/Files/P/Prudential-V13/
sustainability/2023/basis-of-reporting-2023.pdf# In the context of Prudential, net zero and carbon neutral have the following
meanings: ‘Net zero’, in regard to greenhouse gas emissions, refers to a state bywhich the greenhouse gases going into the atmosphere are reduced as close tozero as possible and any residual emissions are balanced by removals from theatmosphere. When translating these emissions to the activities in the value chainof an organisation, net zero is a state in which the activities of the value chain
for an organisation result in net zero greenhouse gas emissions, in a time frame
consistent with the Paris Agreement. ‘Carbon neutral’ for an organisation refers
to relying on carbon offsets to balance its value chain’s greenhouse gas emissions,whereas net zero refers to prioritising reductions in an organisation’s value chain
greenhouse gas emissions to as close to zero as possible. Only then are any
residual emissions balanced by removals from the atmosphere.
^ Carbon emissions refers to carbon dioxide equivalent emissions (CO2e) per
the Greenhouse Gas (GHG) Protocol, including carbon dioxide (CO2), methane(CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs),
sulphur hexafluoride (SF6) and nitrogen trifluoride (NF3).
† The senior management definition was previously defined as all senior
managers who represent the most pivotal roles in our Group below the Group
Executive Committee (GEC). It excludes the Chair, Executive Directors, and
GEC members.
‡ Group Leadership Team (GLT) is defined as the direct reports of all GEC members,
all CEOs of our Life businesses and their direct reports, all CEOs of our Eastspringbusinesses, and select roles that are essential in delivering our strategy.

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

Prudential plc

Sustainability Report 2023

12

Challenges and future goals
In 2024, our priority will be to operationalise our new sustainability
strategy across our businesses in a way that is proportionate to eachmarket’s level of developed sustainability. This includes piloting a
new operating model that can enable our markets to advance how
they approach sustainability.
As part of this transformation, we also recognise that we still needto evolve our approach to social sustainability, which is why our
immediate priority will be to develop a social sustainability strategy
that can potentially contribute to increasing people’s access tohealth and financial protection, while considering diversity andinclusion across our markets.
We are also seeking to further our ambitions and progress onenvironmental topics. In 2024, we will be looking to develop
our initial position on biodiversity and nature, evaluating how
we can integrate this into our net zero ambition and climate
management approach. Through our philanthropic arm,the Prudence Foundation, we are also setting up a fund toadvance efforts on enhancing climate-related health resiliencein communities, as well as continuing with our support on
researching the interconnectedness between climate and health.
Our success depends on our people. Our goal is to embedsustainability across our organisation, and build a socially
responsible organisation where our people fully understandhow to apply their skills and understanding of sustainability
into their day-to-day roles, and contribute meaningfully to oursustainability ambition. We are also advancing our diversity,
equity, inclusion and belonging efforts so that everyone can builda rewarding career and feel a strong sense of belonging. We arebuilding internal capacity through foundational sustainability
training. Investing in our current and future talent, training,systems and our overall culture is critical to continue to servebillions of people across Asia and Africa.
We recognise that implementing our strategy and meeting ourtargets won’t be without challenges. The table sets out someof our areas of focus over the next three to five years:

Topic

Description of challenges

Steps we are taking

Climate-related
data

The quality and availability of carbon intensity data is an ongoingchallenge, with limited coverage of WACI and financed emissions within
our investment portfolio.

Increasing the coverage and quality of our Scope 3 investment book data.
Developing specific decarbonisation pathways for engagement and ESG integration by portfolio managers.
Increasing the coverage of our Scope 3 emissions for the rest of our value chain (eg supply chain).

Customers

Transition toa low-carbon
economySystems andprocesses

Products and services aimed at underserved segments including women,
minorities, the elderly and low-to middle-income individuals, particularlyin emerging markets, can be broadened and further refined.

Developing a social strategy looking at how we can contribute more to offering inclusive and affordable
health and protection products, recognising that protection is itself a measure to enhance climate
resilience through adaptation.

Insufficient research and data on how climate change will impact
individual health.

Continuing to explore the intersection of climate change and adverse health impacts, including throughresearch, thought leadership and product development.

Inability of emerging markets to meet global decarbonisation thresholds
that are set by developed markets due to differences in economic
development stage.

We have established a new investment target on financing the transition, which operates as an underpin
for our portfolio decarbonisation (WACI reduction) target, as we believe that decarbonisation and thetransition from brown to green of our economies are inherently connected.

Lack of industry standards on climate change that address the needto finance brown to green companies.

Building internal capabilities and external partnerships to deliver our strategy on financing the transition.

Today we have a set of 24 local market operations with varying degrees
of sustainability processes, systems and governance.

Implementing our new sustainability operating model approach to drive further standardisationof sustainability processes, utilising existing systems where feasible.

Continuing to explore innovative opportunities to finance the net zero transition in a just and inclusive
manner, working with the private and public sector.

Improving data governance processes and business ownership of ESG data so that we are assured of quality
and completeness across different metrics. We will continue to conduct regular training and collaborate
with both internal and external auditors to enhance and improve our processes and controls in 2024.

Markets

Many of our major markets such as India, China, Malaysia and Thailand
remain highly reliant on coal and other fossil fuels, making it challenging
to balance the interests of stakeholders across both developing anddeveloped markets.

Continuing to work alongside governments, multi-lateral development banks and standard setters
so that the interests of all our stakeholders across both developing and developed markets take abalanced approach.

PeopleContinuing to attract and retain high-quality talent across our markets
to support us in our business and sustainability ambitions.

Upgrading talent capabilities, particularly within the areas of customer, distribution, healthand technology, by investing in internal talent via targeted development programmes.
Strengthening our focus on values-based leadership and aligning reward structures that will help build
a culture that is customer-led and performance-driven.

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

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Sustainability governance, including climate change

Sustainability governance
Sustainability governance
The Board considers sustainability to be integrated and alignedwith our ambition to be the most trusted partner and protector forthis generation and generations to come. It recognises the majorrole that Prudential can continue to play in shaping sustainability
across Asia and Africa, as well as in ensuring the long-term success,resilience and health of the communities in which we operate. As
such, sustainability matters, including climate change, are overseenby the Board, which is responsible for determining overall strategy
and prioritisation of key focus areas.
The Responsibility & Sustainability Working Group (RSWG), chairedby Non-executive Director George Sartorel, focuses on customer,
culture, digital, people and community matters. The RSWG
was established in 2021, and comprises only independentNon-executive Directors.
The Risk Committee, another Board-level committee, oversees
environmental and climate-related issues, including theimplementation of the Group’s commitments to decarbonise its
operations and investment portfolio and other climate-focused
responsible investment commitments. The Committee, chairedby Non-executive Director Jeremy Anderson, is also responsible
for external reporting, via the Sustainability Report, where it
relates to those areas within its remit, including monitoring
progress on the Group’s reporting against the recommendationsof the TCFD.

In 2024, the Board plans to establish a Sustainability Committee toreplace the RSWG and to take over from the Risk Committee oversightof environmental and climate-related issues. The Committee will bechaired by Non-executive Director, George Sartorel.
The Risk Committee has a regular item on its agenda in relation
to its oversight of climate change, including progress against our
climate targets. In setting future targets or commitments, the Risk
Committee considers and makes appropriate recommendations
to the Board. The remit of the Risk Committee also includes theconsideration of climate-related issues when reviewing and guiding
overall strategy, major plans of action, risk management policies,
annual budgets and business plans. To support the Risk Committee
in executing its duties, the Group’s policies and processes aroundsignificant decisions and transactions include consideration of how
the matter requiring approval supports and/or impacts the Group’s
sustainability strategy, including setting and overseeing major
capital expenditures, acquisitions, and divestitures.

In respect of the review of the FY2023 Sustainability Report:– The Risk Committee reviewed the disclosures made in thesections of the Sustainability Report that relate to areas
within its remit (such as financial crime and conduct) in detailand confirmed their inclusion in the report to the RSWG;– The RSWG reviewed the Sustainability Report in its entirety
and recommended it to the Audit Committee and the Board;– The Audit Committee considered the Sustainability Report within
its broader review and recommendation of the full Annual Reportand Accounts to the Board; and– The Board approved the Annual Report and Accounts, of which
the Sustainability Report is an integral part.
Since 2022, sustainability has been included in the strategic
priorities for the Group’s Executive Directors by way of a specificobjective to drive the climate transition and responsible investment
focus across the organisation. To support this ambition, theRemuneration Committee has adopted a transition financeunderpin target for this element of the Prudential Long Term
Incentive Plan (PLTIP). This underpin will consider the value ofqualifying investments committed to supporting the transitionof the world to a lower-carbon future.
In line with our updated target to reduce emissions from allshareholder and policyholder assets by 55 per cent by 2030,
in December 2023, the Remuneration Committee agreed to attachcarbon reduction targets to Executive Directors’ 2024 PLTIP awards,
making this the third cycle of awards with carbon reduction targets.
Sustainability metrics constitute 10 per cent of the total 2024
Executive Directors' PLTIP award, including 5 per cent linked tocarbon reduction and 5 per cent linked to diversity.
> Further information regarding both measures can be foundin the Directors’ remuneration report within the Annual Reportand Accounts.

Management oversight
Sustainability activities, including the impacts of climate change,
are overseen at a management level by the Group Sustainability
Committee. The Chief Financial Officer chairs the Committee,
which met five times in 2023. Membership of the Committee
includes the Chief Risk and Compliance Officer, Chief Investment
Officer, Chief Corporate Affairs Officer, Chief Human Resources
Officer and senior representatives from the Group’s asset owner
and asset management businesses, including the chief executivesof Eastspring and Prudential Singapore’s business.
One of the Group Sustainability Committee’s responsibilities is
to oversee the Group’s progress towards fulfilling our commitment
to report against the recommendations of the TCFD. The policies
and procedures to support how the Group operates in relation tocertain sustainability topics are included in the Group Governance
Manual. Prudential manages key sustainability issues througha multi-disciplinary approach across functions.

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

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Sustainability governance, including climate change continued

Prudential plc Board ​Oversees all aspects of sustainability including people, culture and communities, with ultimate responsibility for determining strategy and prioritisation of key focus areas
Provides rigorous challenge to management on progress against goals and targets
Ensures the Group maintains an effective risk management framework, including over climate-related risks and opportunities
The Board delegates specific sustainability, including climate change, oversight matters to its committees

Risk Committee

Responsibility ​andSustainability Working Group

Audit Committee

Remuneration Committee

Oversight responsibilities for environmental
and climate-related issues

Oversees the embedding of the Group’s sustainability
strategy, focusing on customer, culture, digital, people
and community matters

Oversees the Group’s Annual Report and Accounts, of which
the Sustainability Report is an integral part

Supports the sustainability strategy through alignment of
the Group’s incentive plan to external sustainability targets

Oversees implementation of external
climate-focused commitments

Oversees whistleblowing programme

Reviews climate-related information presented
within the Sustainability Report
Supports the sustainability strategy by ensuring
sustainability risks, including climate-related risks andopportunities, people and culture are effectively managed

ReportingInforming

Oversees the Group’s ongoing commitment relating to TCFD

Chief executive and management team
The chief executive has responsibility for implementation of the Group’s sustainability strategy, including people, culture and climate change risks and opportunities, with support from the executive management teamGroup Sustainability Committee

Group Investment Committee (GIC)

Focused on the holistic assessment of sustainability matters, including climate change, that are material to the Group

Oversees Group-wide investment performance and risk exposures, including those impacting policyholders

Chaired from February 2023 by CFO

Members include asset manager CEO, CIO and Chief Actuary.

Members include asset manager CEO, CRCO, CHRO and business entity CEOGroup Responsible Investment Working Group (GRIWG)
Operational responsibility for oversight of Responsible Investment activity|

Co-chaired by CIO and Eastspring CIO|

Members include local business CIOs

Local businesses
Supports the implementation of the Group’s sustainability strategy, including climate change risks and opportunities

In brief

Our approach to sustainability

Strategy pillars

What shapes
our approach
Approach to materiality and stakeholder
engagement
To deliver sustainable value in the long term, we need to alignour business and impacts with our shareholder and stakeholder
expectations. In 2022, we carried out a robust materiality
assessment through deeper and more structured stakeholder
engagement. This included formal surveys and interviews withstakeholders, including customers, distributors and employees.
The assessment helped us examine various issues, risks andopportunities as they related to our stakeholders while focusing
on where we can create positive impact through our products,
services and initiatives.
In 2023, we reviewed the findings, analysed external trends
and held regular dialogues with our key stakeholders. We
concluded that the 2022 assessment’s findings remained
broadly in line with our stakeholders’ expectations.

Good governance and responsible business practices

Managing climate-related risks and opportunities

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Sustainability Report 2023

15

Materiality assessment process 2023

Step 1:

Step 2:

Step 3:

Step 4:

Identify
and definematerial topics

Prioritise topics
based onstakeholder views

Analyseand evaluate

Validation andapproval by senior
management

Our list of material topics isdrawn from prior material topics,
HKEX and SASB requirements,
and peer reviews. We reviewed
the list of 21 topics from 2022
and they were maintained
as relevant.

Prioritisation was based on theformal assessment carried out
in 2022, which took into
consideration normal-course
interaction with stakeholders,
and through formal ESG surveys
with nearly 1,000 customers,
more than 1,000 employees, andover 7,000 agency distributors.
Our priorities remain consistent.

We analysed and evaluated the2022 outcomes and concluded
that the topics continued to be of
relevance to us as a business andremained important key areas ofconcern for our stakeholders.

The final step of our materiality
assessment involved getting
validation and approval fromsenior management through thegovernance of our Group
Sustainability Committee andResponsibility & Sustainability
Working Group (RSWG).

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Prudential plc

Reference tables

Sustainability Report 2023

16

What shapes our approach continued

Materiality matrix

For more details on our material topics, how they are aligned with our sustainability strategy, and where
they are covered in our report, please refer to the table below.

Our assessment identified 21 topics and ranked them as either high, medium or emerging priority. The topics are
mapped according to their importance to stakeholders and Prudential’s business, and their impact on the economy,
environment and society.

Pillars

Our high-priority material topics are consistent with our findings in 2022: responsible investment, fair treatmentof customers, customer satisfaction, inclusive products and services, digital health innovation, climate change,
privacy and data protection, ethics and responsible business practices, corporate governance and diversity,
inclusion and belonging. These are areas where we believe our efforts can contribute to a more sustainable future.

Simple andaccessible healthand financial
protection

High

Environmental> Page 24

Priorities

Material topics

Delivering partnerships
and digital innovation
for health outcomes– Digital health innovation*

Developing sustainable
and inclusive offerings– Inclusive products and services*

Building resilient
communities– Community engagement
and investment– Financial literacy– Volunteerism

Decarbonising ourportfolio– Responsible investment*– Climate change*– Biodiversity and nature-based
considerations

SocialWorkplace healthand safety

Influence on stakeholder assessments and decisions

Responsible
environmental
practices

Inclusiveproducts
and services

Governance

Responsible
investment

Customersatisfaction

Fair treatmentof customers

Responsible
investment> Page 37

ClimatechangeFinancial
literacy

Training anddevelopment

Employment,
recruitment andrewards

Emerging

Biodiversity andnature-based
considerations

Emerging

Ethics and responsible
business practices

Diversity, inclusion
and belonging
Corporate
governanceCommunity
engagement
and investment

Responsible
procurement
practices

Volunteerism

Digitalhealthinnovation

Privacy anddata protection

Financing a just andinclusive transition
Mainstreaming
responsible investmentsin emerging markets
Empowering our people– Diversity, inclusion and belonging*– Training and development– Employment, recruitment and rewards

Establishing sustainable
operations and value
chain– Responsible environmental practices– Responsible procurement practices– Workplace health and safety

Harnessing thought
leadership to shape theagendaNote: Selected material topics suchas climate change and responsible
investment are highlighted in our
thought leadership activities.

Corporate governance,
conduct and ethics, risk
management, externalreporting andbenchmarking– Corporate governance*– Fair treatment of customers*– Customer satisfaction*– Ethics and responsible business practices*– Privacy and data protection*– Anti-bribery and corruption– Labour rights

Sustainablebusiness> Page 48

Labour rights
Anti-bribery
and corruption

Significance of Prudential’s economic, environmental and social impact

High

Good governanceand responsible
business practices> Page 68* Top 10 material topics

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

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Sustainability Report 2023

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What shapes our approach continued

Understanding our impact
Stakeholder engagement
We collaborate with various stakeholders and engage with them
regularly to help us understand their priorities. This dialogue iscritical for maintaining meaningful and mutually beneficial
relationships while keeping us on top of changes and focusedon staying relevant to our stakeholders.
Engaging with our stakeholders’ perspectives keeps us nimble,
and enables us to determine our material topics, strategy andinitiatives to deliver long-term value for more people.
In 2022, as part of our thorough materiality review, we maintained
ongoing engagement with governments, regulators and investors,
and started engaging with selected key stakeholder groups,
including customers, employees and agency distributors acrossmajor markets in a more structured manner.

Rating agencies

Employees

Mode of engagement

Mode of engagement

Mode of engagement– Annual meetings– Employee engagement surveys– Collaboration Jam– Townhalls– GEC roadshows– Roundtables– Consultations– Public events– Regulatory colleges– Regular meetings (direct and indirect, eg with sector-wide/industry bodies)

Topics of interest or concern where indicated by
the stakeholder group– Climate change– Inclusive products and services– Responsible investment– Diversity, inclusion and belonging– Responsible procurement practices– Data privacy and cyber security

The tables here provide an overview of the different stakeholder
groups we continue to engage with, how we have engaged withthem, what their key areas of interest are and our response to these.

Topics of interest or concern where indicated by
the stakeholder group– Responsible environmental practices– Financial literacy– Responsible investment– Climate change– Employment, recruitment and rewards– Diversity, equity and inclusion in the workplace> Further information on stakeholder engagement can be found in
our Section 172 Companies Act Statement in our Annual Reportand Accounts www.prudentialplc.com/~/media/Files/P/
Prudential-V13/reports/2023/prudential-plc-ar-2023.pdf

Investors

Governments and regulators

Customers

Agency distributors

Topics of interest or concern where indicated by
the stakeholder group– Healthcare access and insurance– Financial inclusion– Climate change and sustainable finance– Technology and innovation– Data privacy– Ethics and responsible business practices– Responsible tax

Peers and other financial institutions

Mode of engagement

Mode of engagement

Mode of engagement

Mode of engagement– Regular meetings– Investor conferences– Investor Perception Study– Contact centres– Focus groups– Customer survey– Agency distributor survey– NZAOA– Just Energy Transition Partnership (JETP) Vietnam– Hong Kong Green Finance Association (HKGFA)

Topics of interest or concern where indicatedby the stakeholder group

Topics of interest or concern where indicatedby the stakeholder group– Climate change– Responsible investment– Inclusive products and services– Diversity, inclusion and belonging– Digital health innovation– Fair treatment of customers– Customer fair dealing– Data privacy and protection– Responsible investment– Customer satisfaction– Financial literacy– Customer satisfaction– Inclusive products and services– Training and development– Digital innovation– Customer fair dealing

Topics of interest or concern where indicatedby the stakeholder group

Topics of interest or concern where indicatedby the stakeholder group– Portfolio decarbonisation– Sustainable and transition finance– Challenges in financing emerging markets– Disclosures and reporting standards– Carbon offsets

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

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Sustainability Report 2023

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Aligning with the United Nations Sustainable Development Goals (UN SDGs)
The 2030 Agenda for Sustainable Development provides a blueprint for peace and prosperity for people and the planet. At its heart are the 17 SDGs, representing a call for action by all UN member states. The goals recognise that ending deprivation must go together with strategies
that improve health and education, reduce inequality, and spur economic growth – all while tackling climate change and working to preserve the environment.
We reviewed our new sustainability strategy against the goals, and the table below outlines our contribution:
SDG and targets

1. No poverty
SDG target: 1.4, 1.5

3. Good healthand wellbeing
SDG target: 3.8, 3.d

5. Gender equality
SDG target: 5.5

8. Decent work andeconomic growth
SDG target: 8.3

12. Responsible
consumption andproduction

Intended outcome

How Prudential can support the outcome

Link to our material topics– Increase access to quality healthcare services and financial services, including
microfinance for the poor and underserved; and– Improve resilience of low-income communities and reduce their exposureand vulnerability to climate-related extreme events and other economic, socialand environmental shocks and disasters, in locations where there are no, or limited,social safety nets.

– Develop sustainable and inclusive offerings such as bite-sized insurance products;– Enable financial literacy to promote understanding of the need for health and protection
products; and– Support the communities in which we operate by building community resilience throughthe Prudence Foundation and local market operations.

– Inclusive products and services*– Achieve universal health coverage, including financial risk protection, access to quality
essential healthcare services and safe, effective, quality and affordable essential
medicines and vaccines; and– Strengthen the capacity of all countries, in particular developing countries, for early
warning, risk reduction and management of national and global health risks.

– Deliver partnerships and digital innovation for health outcomes; and– Collaborate with community organisations to support health, safety and resilience activities.

– Digital health innovation* ON PAGE 26 >– Community engagement andinvestment ON PAGE 32 >– Ensure women’s full and effective participation and equal opportunities for leadershipat all levels of decision-making in political, economic and public life.

– Set and implement targets for the female participation rate in senior leadership.

– Diversity, inclusion and belonging*– Promote development-oriented policies that support productive activities, decent
job creation, entrepreneurship, creativity and innovation, including through accessto financial services.

– Invest in business and industry underpinning growth and supporting the developmentof capital markets; and– Create jobs and pay taxes in the markets we operate in.

– Responsible investment*– Continue to publish disclosures on our operational emissions and our initiatives to reduce
them; and– Encourage suppliers to consider environmental, social and governance practices throughour responsible supplier guidelines.

– Responsible environmental practices– Measure, manage and publicly disclose our investment portfolio’s carbon footprint;– Allocate capital to finance a just and inclusive transition;– Continue to explore the intersection of climate change and adverse health impacts,
including through research, thought leadership and product development; and– Collaborate with community organisations to support climate resilience and disasterrecovery activities.

– Responsible investment*– Encourage companies, especially large and transnational companies, toadopt sustainable practices and integrate sustainability information into
their reporting cycles.

SDG target: 12.6

13. Climate action
SDG target: 13.1, 13.2, 13.3

* Considered as priority material topics.

– Strengthen resilience and adaptive capacity to climate-related hazards and natural
disasters in all countries;– Integrate climate change measures into national policies, strategies and planning;and– Improve education, awareness and human and institutional capacity on climatechange mitigation, adaptation, impact reduction and early warning.

ON PAGE 28 >– Financial literacy ON PAGE 32 >– Community engagement andinvestment ON PAGE 32 >ON PAGE 50 >ON PAGES 39, 41, 42 >– Employment, recruitment and rewards
ON PAGE 50 >ON PAGE 57 >– Responsible procurement practices
ON PAGE 57 >ON PAGES 39, 41, 42 >– Climate change* ON PAGES 89 >– Community engagement andinvestment ON PAGES 32 >

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Our approach to sustainability reporting
We have observed our obligations under: (i) sections 414CA and414CB of the UK Companies Act 2006; (ii) the UK’s Financial
Conduct Authority’s Listing Rules in respect of climate-related
disclosures; and (iii) the ESG Reporting Guide contained inAppendix C2 to the Rules Governing the Listing of Securities
on the Stock Exchange of Hong Kong Limited.
The HKEX sets out five reporting principles, which we haveaddressed as follows:

Materiality

The process of materiality assessment andstakeholder engagement is outlined in the
What shapes our approach section above.

Quantitative

Consistent with our approach in 2022, metrics
have been provided in compliance with the
HKEX requirements and voluntary adoptionof the SASB Insurance Standard. An index
to this report covers HKEX and SASB
Insurance requirements.

Consistency

The FY23 report is consistent with the FY22
report to support compatibility.

Balance

We have endeavoured to provide an unbiased
account of our performance and to use
objective presentation formats.

Reportingboundary

Consistent with previous years, the scope ofthe report, and data therein, is available in theBasis of Reporting, and excludes joint venture
partnerships, notably our joint ventures inIndia and China, and the Takaful business
in Malaysia, unless otherwise stated.

We have made disclosures consistent with the Task Force on
Climate-related Financial Disclosures (TCFD) recommendations
and recommended disclosures throughout this Annual Report. Inline with our ‘comply or explain’ obligation under the UK’s Financial
Conduct Authority’s Listing Rules, we can confirm that we havemade disclosures consistent with the TCFD recommendations andrecommended disclosures in this Annual Report. Our TCFD disclosures
also meet the new climate-related financial disclosure requirements
contained in section 414CB of the Companies Act 2006.
A TCFD index is included in the Reference tables section (pleaserefer to the TCFD index).
In 2023, Prudential continued participating in the Climate Change
questionnaire of CDP, scoring B (2022: A-). This was due in partto survey changes, as CDP asks financial institutions to quantify
revenue and costs aligned with their climate transition, consistent
with strengthening global sustainability reporting framework
requirements. To address this moving forward, we are looking
to prepare for alignment with the International Sustainability
Standards Board (ISSB) disclosures (particularly the new S2 Climate
Standard), and report on climate-related disclosures through thislens once it becomes mandatory.
In line with HKEX guidance, the Group has sought limited
assurance on select indicators covering Scope 1, Scope 2
and Scope 3 financed emissions, community investment cash
contributions and employee diversity as per the prior year.
We appointed EY LLP (EY) to provide limited independent
assurance over these. EY will be the Group’s external auditor
from FY2023. In 2023, we also strengthened our internal
procedures for verification of our disclosures covering nonfinancial statements, to improve the accuracy of our information.

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Sustainability Report 2023

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In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Rising to the climate challenge
Climate change is a significant challenge that requires immediate
action to decarbonise at speed. However, globally, we are notdoing enough to limit warming in line with the 1.5˚C target,
leaving emerging markets especially vulnerable to the impacts of achanging climate. As an asset owner and manager with a long-term
investment horizon, and a heritage of investing and operating in
Asia and Africa, we have a unique perspective on the challenges
faced by emerging markets as well as a unique opportunity toeffect meaningful change.
We recognise that a changing climate impacts some communities
disproportionately. Despite having historically contributed less to the
cumulative greenhouse gas (GHG) emissions in our atmosphere,
emerging markets will suffer more keenly from the physical effects
of climate change. For example, Asia and the Pacific are home to 70
per cent of the global population most susceptible to rising sea levels1.
Meanwhile, the Intergovernmental Panel on Climate Change (IPCC)
found that mortality from floods, droughts and storms between
2010 and 2020 was 15 times higher in highly vulnerable regions,such as Africa and South Asia2. Unfortunately, many responsible
investment frameworks do not differentiate between emerging
and developed markets, thereby disincentivising much-needed
investment for emerging markets to finance the transition to alower-carbon economy.

Protecting the future is at the very core of Prudential’s
purpose: ‘For Every Life, For Every Future’. And a future
where everyone can thrive relies on limiting the humanimpact of climate change. Therefore, we are strongly
committed to facilitating a just and inclusive net zerotransition that fosters sustainable growth and promotes
economic wellbeing within the communities we serve.
Doing so will involve keeping capital in countries thatcurrently rely heavily on fossil fuels, to ensure they havevital funds to invest in lower-carbon transformation.
Climate change is an issue that cuts across all pillars of
our sustainability strategy and our business, and we will
coordinate our efforts across responsible investment,
products and services, engagement and advocacy, andour own operations, to achieve our climate ambitions.
In March 2023, we published our first Climate Transition
Plan. It sets out our approach to fulfilling our climate-related
commitments and details the specific actions we will takeand the metrics that will guide us on the path to net zero1.
Updates to our Climate Transition Plan are integrated
throughout this report within the Responsible investment
and Sustainable business sections. We have also included
an index in this report to show how this report aligns withthe recommendations of the TCFD.
> See TCFD reference table section on page 89.

1. www.undp.org/asia-pacific/news/asia-pacific-climate-change-poses-existential-threat-extreme-weather-worsening-poverty-and-risks-public-health-says-undpreport
2. www.ipcc.ch/report/ar6/wg2/downloads/report/IPCC_AR6_WGII_SummaryForPolicymakers.pdf

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In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

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Sustainability Report 2023

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Climate story continued– Endorsed the TCFD
recommendations– Established ESG Executive
Committee

2018
Eastspring
becomes PRI
signatory– Published our first TCFD-aligned
disclosure (investments not included)– Set operational climate targets
for 2030

2019– Undertook scenario analysis
and stress testing across three
climate scenarios– Disclosed material climate risks
and response– New Group ESG Committee
established– Established Board Responsibility
and Sustainability Working Group– Committed to net zero by 2050
– Set short-term climate investment
targets– Joined the Net Zero Asset Owner
Alliance– Disclosed weighted average carbon
intensity (WACI) and impact ofclimate scenario across geographies– Initiated subtrack within NZAOA:
Emerging Markets Transition
Investment (EMTI) projects– EMTI published paper onrecommendations of acceleratingtransition investment in EM– Launched the ‘Just and Inclusive
Transition’ paper articulating ourview on the climate transition forour markets– Formulated sectoral climate views– Further enhanced disclosure
on metrics, including absolute
financed emissions– Joined the Vietnam Just Energy
Transition Partnership working group

2020

2021

2022

Eastspring joins
Climate Action
100+

Implemented
climate risk into
enterprise risk
management

Updatedour Group
Responsible
Investment
PolicyLaunched our
new Group ESG
Strategic
Framework– Revised up interim portfolio
decarbonisation target, committing
to deliver a 55% reduction in the
carbon intensity of our investment
portfolio (WACI) by 2030 against
2019 timeline– Developed new internal investment
target on financing the transition,as an underpin to the WACI
reduction target– Anchor investor (with $300 million)in Singapore’s largest climate-focused
equity ETF (at time of launch)– Published our first Climate Transition
Plan in March 2023

2023

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

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Sustainability Report 2023

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Climate story continued

Decarbonising our investment portfolio

Phase 2 Phase 3

Phase 1

Implementing
our Responsible
Investment Policy

Focusing on executing ourpolicy, including coaldivestment, WACI budgets
within equity strategies,
and corporate engagement

100%

Strengthening our
engagement withinvestee companies
and stakeholders, bothbilaterally and throughcollaborative
mechanisms

25%

reduction

Phase 4

Decarbonisation by
underlying investee companies

Engagement
and education

Continuing to encourage and influencedecarbonisation by our underlying investee
companies in line with the Paris Agreement

We have made good progress towards our decarbonisation goals.
In May 2021, we committed to achieving net zero emissions by
2050 for our insurance assets. We also resolved to reduce emissions
intensity within our investment portfolio by 25 per cent by 2025.
By the end of 2023, we had successfully reduced the weighted
average carbon intensity (WACI) of our investment portfolio
by 50 per cent from our 2019 baseline.

Whole economy transition

Broader changes that occur as part of the whole
economy transition, at both local and aninternational level

40%–60%Net
Zero

NZAOA* target
range required

Carbonneutral100%

Scope 1 & 2

2016

2019

Baseline for
operations

Baseline forinvestments

Investments targets

Operations targets

2025

2030

2040

2050
Net Zero* Net Zero Asset Owner Alliance (NZAOA), of which we are a member

As a result of the strong progress we have made to date, we revised
our WACI target up in August 2023, committing to deliver a 55 percent reduction in the carbon intensity of our investment portfolio by2030, against our 2019 baseline. This commitment puts us aheadof the expected WACI target update timeline for NZAOA signatories.
While we are committed to reducing the carbon intensity of ourportfolio, we acknowledge that this alone may not be enough toachieve long-term climate resilience across our markets. We believethat lasting real-world impact can be achieved through engagementwith our portfolio companies, and by focusing on financing thetransition. We are also aware that WACI performance can be
impacted by a variety of other factors – such as data coverage,
the revenues of investee companies (which is a component of
the WACI calculation), or changes in the weights of companies in
portfolios – that could result in upward or downward movementsof the WACI despite targeted portfolio decarbonisation efforts.
Therefore, we do not expect our decarbonisation progress to belinear, and do not rely solely on WACI as an indicator of our progress.

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Climate story continued

Financing a just and inclusive transition towards
net zero

information about climate and environmental metrics andperformance, please refer to the Sustainable Business section.

We aim to be the leading investor in the climate transition in
emerging and developing economies, particularly in Asia. With thisin mind, we have developed a strategy to guide how we will financethe transition towards a low-carbon future across our markets toaddress the challenges outlined in our Just and Inclusive Transition
paper. Supporting Asia and Africa to transition from brown to green
is pivotal for the world to achieve net zero. This implies not only
investing in the transition itself, but also actively engaging withcompanies within our investment portfolio, using our influence
as a long-term investor to support them in the development ofcredible climate transition plans.

To empower our employees with foundational knowledge about
the relevance of climate change, we plan to roll out sustainability
capacity building programmes from 2024, please refer to the
Sustainable Business section.

As part of our responsible investment approach, we aim to maximise
our influence as a large asset owner focused on Asia and Africa,
bringing to bear our capabilities as a domestic investor in thosemarkets. We are also working in partnership with regulators andleading investors to build an investment ecosystem for transition
finance in Asia. Our goal is to enable others to invest moresustainably. For example, we were proud to be the anchor investorof Singapore’s largest (at time of launch) climate-focused equity
exchange-traded fund (ETF), along with a consortium of investors
including Temasek, for the iShares MSCI Asia ex Japan Climate
Action ETF. The fund aims to provide exposure to companies
positioned to lead the transition to a low-carbon economy in
the region.

Climate actions within our own operations
We strive to minimise the impact of our operations on theenvironment, to support both our decarbonisation efforts
and the wellbeing of our customers and their communities.
To understand our environmental footprint, we monitor our
performance across a range of environmental metrics andlook for opportunities to improve.
Our goal is to achieve carbon neutrality across our Scope 1 and 2
emissions by the end of 2030. We are aiming to reduce ouroperational emissions per full-time employee (FTE) by 25 per centfrom a 2016 baseline. The remaining emissions will be abated bycredible carbon offsetting initiatives. We are currently on track toexceed our emissions reduction target by 2030 and continue toassess the feasibility of updated operational targets. For more

What’s next?
Climate change is a fast-moving issue, and we expect both newchallenges and new solutions to emerge over time. We know we willneed to learn and adapt throughout our climate transition journey.
We regularly review our climate targets to ensure they align with thelatest scientific data, and we continually review our approach toidentify opportunities to increase our impact. For more information
on how we are refining our approach, please refer to the section
Evolving our climate actions.
We will actively pursue climate action in line with our ambition toplay a critical role in safeguarding our customers from the impactsof climate change and building resilience for the future. In line with
our purpose, ‘For Every Life, For Every Future’, we will update ourclimate transition actions and progress, aiming to contribute moreproactively to a just and inclusive net zero transition across ourbroad footprint in Asia and Africa. This will include mapping aclearer trajectory of our journey to net zero, identifying
opportunities to drive positive change across our business andcustomer interfaces, our operations and our supply chains. We
expect to be able to share more details of these in upcoming
sustainability reports and climate transition plans.

Further climate-related informationin this report> TCFD disclosures, pages 72-79> TCFD reference tables, pages 89-94> Responsible investment information, pages 37-47> Environmental metrics, pages 63-64

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In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Simple and accessible

health and financial protection

Reference tables

Prudential plc

Sustainability Report 2023

2023 pillar highlights
Our priorities
Delivering partnerships and digital
innovation for better health outcomes
Developing sustainable and inclusive offerings
Building resilient communities

24

25

26
28
32

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

Prudential plc

Sustainability Report 2023

25

Simple and Accessible Health & Financial Protection continued

2023 pillar highlights

87%

17.4m

Customer retention rate

Total life segment
policies in force

We believe everyone should have the opportunity
to build a more secure future. Giving our customers
affordable access to good health services and financial
protection drives our business.
While Asia is becoming increasingly prosperous, the low levels of
insurance cover and limited social safety nets have left millions ofpeople vulnerable to unforeseen health and economic challenges.
The markets in which we operate are characterised by low levels of
insurance cover1 and significant out-of-pocket health expenditure2.
In Africa, only 3 per cent of the population is covered by insurance3.
As a leading savings and protection provider, we are in a uniqueposition to make a significant positive impact in these underserved
markets across both Asia and Africa.

Established partnership benefiting
insured customers in five markets,
offering treatment options forbreast cancer with cost certainty

To increase access to health and financial protection, we are using
technology to develop new innovative solutions for customers toaccess our products and services. We seek to create more affordable
and inclusive products that are designed to meet the needs ofunderserved customers and communities, broadening our positive
impact. And we are investing to build the resilience of thecommunities we serve through initiatives that promote financial
inclusion, health and safety, and climate change preparedness.

2m

students reached andover 66,000

teachers trained through Cha-Ching
curriculum (since 2016)

Launched PruBabies to provide
free protection for over

1. Swiss Re No 3/2023: World insurance: stirred, and not shaken– Insurance as percentage of GDP.
2. World Health Organisation. Out of pocket as percentage of total
health expenditure.
3. Brookings, 2021: Capturing Africa’s insurance potential for shared prosperity$13m

invested in building
community resilience

18,000infants against infectious diseases
in the Philippines

Nearly28,000employee volunteeringhours

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

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Sustainability Report 2023

26

Simple and Accessible Health & Financial Protection continued

Our priority

a. Digital innovation

Delivering partnerships anddigital innovation for better
health outcomesa. Digital innovationb. Telemedicine

26
27

To better connect individuals with the best possible healthcare
providers and preventative care, we are constantly exploring new
ways for technology to help us make a real difference to theexperience of our customers in all our markets, and create value forour employees, shareholders and communities. Digital innovation
can drive distribution of our products and services, empower the
next generation of agents, and strengthen our relationships withexisting customers through increasingly personalised and userfriendly access to our offerings.

One of our key
priorities is toestablish a'connected care'programme tofurther extend our involvement inour customers' healthcare journeys
through deep integration withpreferred partners across thehealthcare continuum.”

In recent years, technological advances have unlocked evengreater potential for transforming the delivery of our healthand financial protection cover, making it more cost-effective,
affordable and accessible. This is an important development,
as many of our products are not currently affordable for manycustomers in emerging markets. Adopting the right technology
will help us deliver the most fitting solutions to support morecustomers to live a better life.
As part of our purpose, we have a mission to become the mosttrusted health partner across Asia and Africa. We proudly insure thehealth of over five million customers, and are just at the beginningof our journey. Our markets have large and growing populations
that often lack adequate health insurance. This, coupled withincreasing medical costs, mean that customers often resort topaying their expensive medical bills out-of-pocket.
Our new health strategy aims to enable customers better accessto quality and affordable healthcare. We intend to evolve fromour traditional role as ‘payer’, focused on reimbursing medical costs,
to that of ‘partner’. As a partner, we will focus on connecting withcustomers throughout their healthcare journey – from illness
prevention to detection, treatment and rehabilitation. We arefocusing on two priorities to achieve this: (a) upgrade our healthinsurance propositions across all our markets to create operating
leverage and economies of scale; and (b) extend our involvementin the customer’s healthcare journey via digital integration withpreferred partners across the healthcare continuum. We strive to
become a trusted partner to our customers with simple, connected
technology journeys that use differentiated propositions fordifferent life stages, all supported by AI and data analytics.

Digital innovation market highlights – Asia
Malaysia
Launched a new marketplace in our app where
customers can redeem their no claims benefits(NCB) against preventative care services.
Customers can choose services from their preferredhealth providers – including health screening,
vaccination, diagnostic tests, health subscription
programmes – all through the marketplace.
In Malaysia, PruGenAI is being tested to reducethe information search for customer enquiry
from an average of 4 mins to 30 seconds in our
Contact Centre and Customer Engagement Centre
nationwide. These initial results show the potential
to improve the experience of customers, agentsand employees in various areas of business.

TaiwanHowMaji (meaning ‘buddy’ or ‘good friend’) isa digital platform aimed at potential customers
who don’t have any immediate insurance needs.
It provides various free features, health information
and benefits for HowMaji members. Features
include 10 questions which enable users to accesstheir traditional Chinese medicine consultation
and recipes to nurture their metabolism andincrease their resistance to pathogens.

Singapore
Solmaz Altin, Managing Director, Strategic Business Group

Launched a savings insurance plan – Digital
Endowment 2.0 – via digital platforms, allowing
customers to sign up instantly, with details sent toagents to drive online-to-offline sales. The digitalendowment plan was well received by customers,
with 2.3 million online sales generated. The
platform enabled our agency distributors togenerate over 1,000 high-quality leads of which
18 per cent were converted to offline sales.

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

Prudential plc

Sustainability Report 2023

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Simple and Accessible Health & Financial Protection continued

Digital innovation market highlights – Africa
Our markets in Africa made notable progress in providing
affordable insurance to underserved populations, throughtheir partnerships with local telecommunications
service providers:Cashless collaboration
ThailandIn Cameroon, a partnership between Prudential and Smart for
Health insurance cards enables people to have cashless medical
consultations and treatment. Around 100 healthcare partners
have signed up, including hospitals, pharmacies and laboratories.

Ghana
Continued collaboration with AirtelTigo, which
distributes products by microinsurance specialist
BIMA. Benefits include access to quality
healthcare, cashless payment and portability
benefits. To date, there are over 220,000 active
BIMA policies.

Kenya
A strategic partnership with MYDAWA, the firstregistered and licensed online pharmacy in
Kenya which provides convenience, quality,
affordability and great service in access tohealthcare products online.

In order to offer the most efficient, effective and affordable
technology-based services to our customers, we partner withsome of the world’s biggest and best technology providers.
By collaborating strategically, we can provide real innovationin health and financial protection across all our markets,
especially to underserved communities. Examples of ourpartnerships include:

In Thailand, Prudential has collaborated with True Digital
Group to provide telemedicine services via its Mordee
application, giving convenient access to healthcare services
without wasting time travelling to the hospital and waitingin queues.

In Uganda, we have partnered with Stanbic Bank to launch adigital health product – Stanbic MediProtect – which customers
can access via the bank’s website. So far it has generated over
450 million Uganda shillings/$117,800 and provided cover forover 600 people.

Prudential customers with a group health insurance policy,
or an individual health insurance policy that comes with
outpatient coverage (OPD), can make a cashless claim
without having to make an advance payment.

In Singapore, we partnered with DBS to distribute PRUShield via
DBS.com, bringing it to even more customers. The pilot phase of
the partnership encompasses an online customer journey from
DBS.com to Prudential’s digital platform. Customers will be able topurchase PRUShield directly and eventually be serviced by DBS
representatives for any follow-up.

Over 300,000 people have access to the Mordee app andcan make an appointment to consult with a doctor online
in real-time, anywhere and whenever they want. They canchoose a telephone or video call, enjoy home delivery
service for prescribed medicines and receive advice froma pharmacist via a seamless online–offline link.
More than 500 medical and health professionals can be
consulted via the app, including specialised doctors fromleading institutions covering 20 departments.

300k+ 500+
people use theMordee app

medical and healthprofessionals can be
consulted via the app

b. Telemedicine
We continue to offer customers access to telemedicine services
by collaborating with medical providers. This gives individuals theability to seek healthcare consultation from the convenience andprivacy of their own choice eg home or office via a secure online
connection. The Covid-19 pandemic was also a driver of expansion
in telemedicine, as people are more cautious about in-person
consultation when it can be more easily managed online.
In Uganda, over 5,000 unique telemedicine users have accessed
free remote consultations, lab tests, home-based immunisations,medicine deliveries and support on the management of chronic
health issues like diabetes and high blood pressure.

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

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Sustainability Report 2023

28

Simple and Accessible Health & Financial Protection continued

Our priority

The health protection and savings gap in our markets has been
estimated at $1.8 trillion1 – meaning many underserved groups
miss out on access to benefits, insurance and health coverage,
even though they are the people who need them most.

Developing sustainable
and inclusive offerings
Catering to different customer groups with diverse needs
a. Protection for every familyb. Islamic financec. Protecting womend. Bite-sized insurance

28
29
29
29

Fair treatment of customers and customer satisfaction
are important to us. ​e. Meeting the changing needs of our customers
f. Customer conduct
g. Responsible product development
h. Protecting vulnerable customers
i. Acting on customer feedback
j. Our claims promise

30
30
31
31
31
31

At Prudential, our customer is our compass. This is underpinnedby our fundamental values – the PruWay – which define how weapproach our strategy. We immerse ourselves in understanding
our customers and commit ourselves to addressing their concernswith speed and empathy.
Inclusion at Prudential starts with ensuring accessibility to adiverse and continuously evolving range of products and services
designed to meet the ever-changing needs of often-forgotten
customers, while serving the needs of the majority. We seek toprovide simple health and financial protection for our customers
in a way that is accessible and affordable to all people and cultures
across the communities we serve.
We aim to develop a more holistic approach to refine our social
strategy in 2024, in line with our refreshed sustainability strategy.
This includes our ambition for more sustainable and inclusive
offerings so that we are providing health and financial protection,
including to historically underserved populations, for example,
women, minorities and low-income families.

a. Protection for every family
We recognise the evolution of society and the changing andvaried needs of our customers: families, women, small andmedium-sized enterprises and lower-income groups. We arecommitted to ensuring that our products and services support
every family.
This includes not only the traditional nuclear family, but extended
families, blended families and single-parent families, and it meansthat we have reassessed the traditional definition of ‘beneficiary’to ensure that all customers know they are included. For example,
grandparents, stepchildren and cousins can be named as abeneficiary, and, in some of our markets, same-sex married
couples can be accepted as the lives assured for designatedinsurance products.

1. Swiss Re Institute: The health protection gap in Asia, October 2018.

Prudential has been an absolute blessing for me and myfamily. With a long history of critical illnesses in my family,
including breast and nose cancer, as well as diabetes, I
have always been aware of the risks I face. As the main
source of income for my family of 10, including my threechildren and several nieces and nephews who are living withme in Phnom Penh for their education, protecting my wellbeing and healthis of utmost importance.
That's why discovering the PRUCare product felt like a lifeline. As a working
woman, prone to critical diseases, I am incredibly grateful that such a productexists. It is not only affordable but also provides comprehensive coverage for
critical illnesses. Even though I am currently in good health, knowing that the
future of my family and the wellbeing of my children are safeguarded by
Prudential brings me an incredible sense of peace.”
Sopheap Dorn, Trader/Market SellerIn brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Prudential plc

Reference tables

Sustainability Report 2023

29

Simple and Accessible Health & Financial Protection continued

In June, our business in Thailand joined forces with the Bangkok
Dusit Medical Services (BDMS) hospital network to launch an
inclusive health insurance plan that caters to customers seeking
high-quality healthcare services within the BDMS network or otherhospitals. For the first time, customers can share coverage for both
outpatient and inpatient admissions for up to five family members(including LGBTQ+ life partners) on one single policy. Customers
can easily add or remove family members on the policy andeven transfer ownership of the policy to the next generation.
The partnership with BDMS is also a regional one in that it gives
all insured customers of Prudential in Hong Kong, Indonesia,
Vietnam, Cambodia and Myanmar treatment options for breast
cancer with cost certainty at BDMS’s renowned Bangkok Hospital.
It is important to our customers that they can access insurance tocover themselves and their families at all stages of life. Our businessin Hong Kong this year introduced two new critical illness plans:
PRUHealth Guardian Critical Illness and PRUHealth Baby Guardian
Critical Illness, extending cover to include newborns and women in
pregnancy and expanding coverage for dementia. The Company
also relaxed its guidelines in May to ensure critical illness cover
could be extended to children with autism over the age of two,instead of the previous eight years.

b. Islamic finance
Islamic finance is a growing market which incorporates risk-sharing
and removes exposure to companies whose operations are notpermitted under Sharia law.
In 2022, our business in Indonesia was the first international
business in the country to establish a dedicated service – Prudential
Syariah – for the Sharia market. It operates on the basis of ‘Sharia
for All’: a set of principles embracing the concept that Sharia values
are universal, inclusive and relevant to all Indonesians.
The country has the fourth-largest population in the world andtotal assets under the Sharia industry reached 17 per cent in 2021.
This puts it in the top three countries for Islamic finance, according
to the 2022 Islamic Finance Country Index – yet only two in 10
Indonesians understand insurance.

Later in the year, we launched a digital Sharia product in partnershipwith United Overseas Bank tailored to provide access to financial
and health protection for more Indonesians, especially Millennials
and Gen Zs who are the main users of the TMRW application fromUOB. We also introduced the Sharia Knowledge Centre (SKC), an
online educational hub providing information on new products andservices and a discussion and collaboration platform for the Sharia
finance industry.

c. Protecting women
We have been supporting women with independent policies
for over 100 years. As well as ensuring our broader products andservices are more inclusive, in many of our markets we offer specificprotection to address issues around pregnancy, motherhood andother female-specific conditions.
These include products like PRULady Cancer Care and PRUMumin Thailand; and PRUMy Health in Cambodia, the first individual
medical reimbursement solution in the market from a local life
insurer which provides coverage against actual medical expenses
for 10 types of pregnancy complications, including stillbirths,
ectopic pregnancies and post-partum haemorrhages requiringa hysterectomy. In the Philippines we continue to offer themarket’s first digital bite-sized breast cancer-specific policy.

d. Bite-sized insurance
Bite-sized health insurance (or micro-insurance) products andservices provide support for specific needs and/or periods of time.
They appeal to customers who cannot or prefer not to pay forcomprehensive long-term cover by offering affordable protectionthat can be accessed online via Prudential and partner networks.

Innovation in sustainable and inclusive

offerings
Philippines

Malaysia

Launched the PRUBabies programme, which granted 175,000
redeemable vouchers providing six months’ free infectious disease
coverage to newborns (aged seven days to 11 months) who wereenrolled in PRUMedCare Select Infectious Disease. Over 18,000
vouchers were redeemed, safeguarding these infants against
illnesses such as dengue, measles malaria, and typhoid.

Transitioned from PRUKasih CSR scheme to PRUKasih Aman
– an online micro-insurance product aimed at safeguarding evenmore individuals and families in Malaysia. PRUKasih Aman provides
enhanced coverage (up to $3,900/RM18,000), which includes adaily hospitalisation allowance and funeral expenses, as well as
both a death benefit and an extra accidental death payout.
PRUKasih Aman has provided protection to 9,700 individuals from
low-income communities and disabled groups since its introduction
in late 2022.

Hong Kong
Launched PRUHealth Guardian critical illness plan and PRUHealthBaby Guardian critical illness plan: comprehensive multiple critical
illness products addressing customers’ families’ protection needs
at different life stages.

Cambodia
Launched PRUCare, a digital low-cost critical illness product,
offering low-income customers coverage on five common critical
illness conditions with prices as low as $25 per year.

Ghana
Introduced Mekakrawa, a micro-insurance product, specificallydesigned to cater to the needs of the informal sector, including
the unbanked, petty traders, vendors and retailers. Available on
the market at an affordable premium of between $0.25 and $3.77,
Mekakrawa covers over 3,000 individuals for death, accidental
death, critical illness and total permanent disability.

Accessible, affordable protection – Thailand
PRULife Care is a bite-sized product launched through digitalchannels, providing more accessible and affordable protection.
Customers pay a premium that starts from $20/720 baht annuallyfor protection. In the case of death or a diagnosis of a terminal
illness, the policy pays a lump sum of 100 per cent of theinsured amount.
The premiums can be tax-deductible up to $2,800/100,000 baht
per year and policyholders can choose to receive coverage forcancer, critical illnesses, and income compensation in the eventof hospital admission.

To date, more than

300 people

from the middle-income segment with an averageannual income of approximately $14,000 havetaken up the policy.

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

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30

Simple and Accessible Health & Financial Protection continued

1. Treat customers fairly, honestly, and with integrity.

In launching Prudential’s new purpose, our customer
is our compass. We aspire to become the most trusted
partner for our customers. To achieve this we seek todrive efficiency and enhance their overall experience.
Prudential uses innovative technology and data insights toaddress customer pain points and build a high-performance agency force.
Delivering on our customer ambitions can foster greater loyalty, improvehealth outcomes, and enhance the overall customer experience. This is justthe beginning of Prudential’s journey, as partner and protector.”
Lilian Ng, Managing Director, Strategic Business Groupe. Meeting the changing needs of our customers
With our customer as our compass, we are committed to developing
our products and services to ensure that we can meet or exceed ourcustomers’ expectations and provide protection for them at every
stage of their life.
In recent years, we have increased our focus on tailoring products
and services to meet the diversity of our customers’ needs, as well as
ensuring we can meet the developing requirements of local markets.
Our increasing customer focus has helped our customer retention
rate stay healthy at 87 per cent in 2023.
As part of our emphasis on customer-centricity, we havestandardised our approach to measuring and analysing customer
advocacy, centred around Net Promoter Scores. We started ourjourney in 2023 and have seen initial traction with four of ourmarkets in the top quartile (up from three in 2022), and eightout of 10 markets showing improvement in their quartile ranking
or maintaining their top ranked quartile in the latest relationship
Net Promoter Score (NPS) results.

Our leadership prioritises customer voices in the business, taking
part in initiatives such as a monthly CEO customer experience
forum in all our markets, along with an active approach to serving
customers who report unsatisfactory experiences.

f. Customer conduct
At the core of our work is helping customers achieve their healthcare
and financial goals.
Our Group Code of Conduct sets out how we do business, and
the Group Customer Conduct Risk Policy establishes a customer
conduct risk management framework, embedding our five
Customer Conduct Principles, which inform every aspect of thecustomer journey. By adhering to these principles, we strive todeliver excellent customer service, maintain trust, and help ourcustomers achieve their goals.

We ensure our customers are treated transparently throughout
their journey with us, and embed proper controls to identify andmanage any risks that could compromise this principle. We also
pay attention to managing conflicts of interest and avoiding bias,
including in the use of AI.

2. Provide and promote products and services thatmeet customer needs, are clearly explained, and deliver
real value.
Though our customers may have straightforward financial needs,
they could find it potentially challenging to understand thecomplexity of our products (ie costs, value, and using themeffectively). We consider product design, clear customer
communication, and value assessment with our products,
by actively assessing factors such as customer behaviour,
circumstances, and long-term market trends.

5. Act fairly and in a timely manner to address customer
complaints and any errors we find.
Customer complaints provide valuable feedback about our business.
We analyse complaints to understand their root causes and workon reducing their overall number. Through ongoing monitoring,
we identify any issues that could harm customers and take
immediate action to rectify errors.
Our local businesses have independent and dedicated teams
responsible for managing complaints and maintaining complaint
databases. Across the Group, our level of complaints has remained
broadly flat at two per 1,000 policies in force (2022: two per
1,000 policies in force).

3. Maintaining the confidentiality of our customer
information.
It is our duty to collect, use and safeguard customer, supplier andrepresentative personal information, both within our systems andwhen handled by our partners.

4. Provide and promote high standards of customer service.
We aim to provide consistent, high-quality service and communication
to ensure that our products meet customer needs and expectations.
We have established customer service metrics that cover the entire
product life cycle and customer journey, and prioritise timely, fair,
and transparent handling of claims. We also promptly disclose any
product, contractual or relevant updates, and ensure timely
customer payments.

Demographic change
is one of the mostimportant megatrends
impacting the life andwellbeing of families worldwide. At
Prudential, we have made progressivechanges to protect a wider group offamily members and make protection
more affordable, adapting tochanging demographics and ourcustomer’s ever evolving needs.”
Priscilla Ng, Chief Customer and Marketing OfficerIn brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Prudential plc

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Simple and Accessible Health & Financial Protection continued

g. Responsible product development
We have an established framework for new productdevelopment that ensures we focus on responsibility
at every stage.

The Prudential Customer Proposition Council is the forum we use
to innovate new products and services that can be rolled out
across our markets. During 2023, we focused on prototyping
innovative solutions for Gen Z customers and reviewing progressive
underwriting assessment frameworks for underserved individuals
with autism, to increase inclusivity across diverse market segments.

The Group Product Approval Committee oversees this process
to ensure that product-related conduct risks, at both productand portfolio level, are appropriately managed in accordance with
our Customer Conduct Risk Policy. This applies to the developmentof new insurance products, alterations to existing products (including
the launch of new funds on investment-linked products) andpermanent changes in underwriting requirements.

Firstly, we conduct customer research so we can truly understand the needs,
concerns, financial security pain points and resilience at the different life stagesof various types of customers. We use insights from market intelligence andfindings from a customer needs analysis to get a holistic review of the concept,
proposition and overall viability of the product. Further input is evaluated via
focus groups before the final product is created.
Once the product concept is approved from thecustomer perspective, local businesses will further refine
it with detailed product design and pricing assessment,
including examining the financial metrics and operationalrisk assessments, stress and scenario tests to understandsensitivity to key risks, and the preparation of disclosurematerials to ensure regulatory compliance.
Following the product launch, local businesses source feedback andsuggestions from customers and financial advisers regularly for overall
relationship Net Promotor Scores (rNPS) and at key touchpoints (tNPS) in thecustomer’s journey. This helps ensure the product delivers its intended service
and value and allows us to evolve the proposition to stay relevant forcustomers. A control cycle is in place to regularly monitor product approvalconditions and the financial viability of currently marketed products, preparerisk reports for currently marketed and legacy products, and provide updates
to the relevant governance bodies.

h. Protecting vulnerable customers
In each market, we define vulnerable customers based on local
circumstances, regulatory and business requirements, as wellas the customer’s age and level of education/literacy. Local
businesses further customise their definition of a vulnerable
customer by adding in additional criteria as necessary –financial status or disability, for example.

These have improved net promotor scores across all transactionalcustomer touch points. At the end of 2023, Thailand and thePhilippines piloted Service Huddles, and other markets aim to rollout the programme in 2024.

j. Our claims promise

All sales staff and distribution partners receive appropriate training
on protecting vulnerable customers (including the definition of‘vulnerable’ and what additional care is needed when dealing
with them), with their understanding validated afterwards.

Our Group claims promise stipulates that all our local businesses
must handle claims in a timely, fair and transparent manner,
promptly disclosing product, contractual and relevant updates.
We will only ask for relevant information, and we strive to explain
our decisions as clearly as possible, and proactively providing
updates on the progress of a claim.

i. Acting on customer feedback

Timeliness

At Prudential, we have an ambition to enhance customer
experiences and serve even more people in Asia and Africa. We
pursue continuous improvement with the power of collaboration.
To achieve this, we need to understand our customers so we canserve them better. In 2023, Prudential implemented Service
Huddles. These are regular meetings where staff within theirteams or across different functions come together and discuss
feedback, including complaints from customers who have recently
interacted with Prudential ie purchased a policy, made a claim or
contacted a call centre. We also used customer complaints as asource for service improvement. The goal of a Service Huddle isto empower our staff to deliver a good customer experience,by creating an environment where they can actively engage, share,
and learn from each other consistently, and successfully integrate
solutions into our daily operations with customer inputs andfeedback. This demonstrates our commitment to live our
PRUWay value: Customer is our compass.
In October, Service Huddles officially kicked off in Hong Kong.
Subject matter experts from various functions, including Policy
Servicing, Claims, Health Operations, Product, and Finance, came
together regularly, with the aim of developing compelling solutions
that enhance the customer experience. Prudential focused onbuilding capacity and enhancing efficiency to improve on average
waiting time, call abandoned rate, and call pickup timeliness going
forward. In addition, we addressed customer feedback on user
experience with our online portal, such as shortening the log in
loading times and landing pages, and sharpening digital interfacesof policy services (eg changing contact information).

We handle each claim as soon as we receive it and will keep thecustomer informed of its progress.

Communication with care
We let the customer know when we receive his or her claim, require
additional documents, and the outcome of the claim. Our staff andagents are professionally trained to guide customers whenever theyneed help.

Fairness
We understand customers’ claims are important to them. We treat
every customer fairly. We ensure our claims process is clear,transparent and without customer bias.

Customer experience
Customer feedback is important to help us serve customers better.
If a customer has a complaint, we will deal with it professionally.

Privacy
We take customers’ privacy
seriously and will protect it
at all times.

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

Prudential plc

Sustainability Report 2023

32

Simple and Accessible Health & Financial Protection continued

Our priority

Q. The Foundation has been able to achieve a hugeamount through its flagship programmes. What do you
attribute this success to?

Building resilient communities

A. Our strategy allows us to take a long-term view of our initiatives
so we can achieve meaningful and lasting change. We haveremained focused on our priority areas, so we can learn what works
and what does not, and invest further to expand on our successes.

Prudential is committed to enhancing the lives of communities
across our markets by helping them grow and succeed. We invest
in developing resilient communities by supporting initiatives thatchampion financial education and inclusion, health and safety
protection, and climate adaptation.

Working in partnership with local communities has also been crucial
to our success. Sustainable change is only achieved by listening to
the needs of communities and working closely with local partners,
like NGOs and local government authorities, to roll out programmes.
We want our solutions to become self-sustaining in the long run, so
they build momentum as they grow and empower communities totake the work forward.

Our community investment strategy aligns with our purpose
and reflects our stakeholders’ areas of interest, including financial
education and inclusion, health and safety protection andclimate adaptation. Over the course of 2023, we invested
a total of $13.0 million through the Prudence Foundation –our philanthropic community investment arm – and othercommunity programmes led by our local markets.

A great example of the impact of this approach is our Cha-Chingfinancial literacy programme in the Philippines. By partnering withthe government, Cha-Ching is now part of the local school curriculum
across several regions in the Philippines, improving the financial
literacy of many more children.

Prudence Foundation partnerships
Nicole Ngeow
Director of the Prudence Foundation,
outlines our flagship initiatives
and the long-term vision.

Monitoring and measuring community
investment
Programme updatesa. Financial education and inclusionb. Health and safety protection
c. Climate adaptation
Other activity in building resilient
communities

33

Q. Can you explain how Prudence Foundation’s
approach aligns with Prudential’s corporate strategy?

33
33
35

A. As an insurance company, we offer protection, mitigate
risk and help people build a better future. Our community
investment strategy has the same DNA. We thought carefully
about ways we could make a real difference by buildingmuch-needed resilience within communities across our markets.

36

We are focusing on areas that are relevant and can bestrengthened across our markets: financial education andinclusion, health and safety protection, and climate adaptation.
Since the Foundation was set up in 2011, our strategy andapproach have remained consistent, but we have harnessed
technology to increase our focus on and improve our delivery
approach to climate adaptation.

Q. Can you share an example of how you incorporate theviews of local communities in developing yourprogrammes?
A. The initiatives we offer need to cater to the specific needs of thelocal communities. Road safety is a great example of the way weadapt our programme for local contexts. The markets we operate inare at very different stages of traffic safety development and havevarious forms of transport. In Uganda, for example, motorbike taxi
drivers, known locally as boda boda riders, are crucial to the economy
but are responsible for a significant number of road traffic accidents.
According to the Uganda Police Annual Crime Report 2020, boda
boda riders constituted 31 per cent of road fatalities. To help reducethese accidents, our SAFE STEPS programme recently provided roadsafety training to more than 4,000 motorbike taxi riders in the country.
By understanding the local dynamics, we were able to target oursafety programme for the boda boda riders, giving them the skills
they need to avoid accidents where possible and provide life-saving
first aid to victims of accidents. The programme has become
well-known and highly praised, with drivers now displaying their
SAFE STEPS t-shirts with pride.

Q. How do you ensure your investments align withPrudential’s values?
A. We follow Prudential’s Group-wide Community Investment Policythat sets out standards and guidelines. For example, we do notmake any investments or contributions that are prohibited by law
or regulation, and we do not make political or religious donations.
We also do not make donations to political parties or incur politicalexpenditure, as defined in the United Kingdom Political Parties,
Elections and Referendums Act 2000.
We are also careful to follow the Corporate Social Responsibility
and Sponsorship Anti-bribery and Corruption guidelines tomake sure our programmes and activities are not exploited
for sales opportunities.

Q. What were your key achievements during 2023?
A. I am thrilled to say all our programmes have achieved a hugeamount this year. After 12 years of operation, Cha-Ching has seen
exponential growth. By the end of 2023, we had taught over two
million children and more than 66,000 teachers. Our Safe Schools
programme is set to be rolled out to all schools in the Philippines,
significantly expanding our reach. The success of the SAFE STEPS
training in Uganda was another highlight.
The Regional PRUVolunteers programme has resumed for the
first time since the pandemic. We partnered with Posko Jenggala
to organise two disaster recovery efforts, leading a total of 120
employees from Asia, Africa and the UK to Cianjur, Indonesia toprovide on-the-ground support to rebuild shelters, sanitation
facilities and a library, and help the local community recover froma devastating 5.6 earthquake that occurred in November 2022.

Q. Looking ahead, what will you be focusing on in 2024?
A. Our efforts will continue to focus on helping communities
become more resilient to future challenges. Now that we havecompleted our research project into the impact of extreme heat,humidity and air pollution on health, a priority will be to expand
our programmes around climate adaptation and explore how
best to implement them across our communities.
Thanks to our efforts in addressing the severe and adverse
effects of the Covid-19 pandemic, we are now able to transition
our $2 million Covid-19 fund to programmes that build resilience
to climate-related health impacts.

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

Prudential plc

Sustainability Report 2023

33

Simple and Accessible Health & Financial Protection continued

Monitoring and measuring community investment
The RSWG oversees Prudential plc’s community engagement
and investment activities on behalf of the Board. The Prudence
Foundation is governed by a statutory Board of Directors that meetsregularly to review community investment strategies, initiatives andbudgets. It is also guided by the Group’s sustainability strategy.
Prudential invested $13.0 million in community programmes
during 2023 – a six per cent increase from US$12.2 million in 2022
– reflecting our continued commitment to bringing our sustainability
goals to life with action and investment. The total figure has been
calculated using the internationally recognised Business for Societal
Impact (B4SI) Framework and includes cash donations to charities
as well as spending on community initiatives in partnership with
NGOs, non-profits, social enterprises and other third parties. On top
of financial investment, our employees have contributed around
28,000 hours of volunteer service in their local communities.

Programme updatesa. Financial education and inclusion
Cha-Ching
Cha-Ching is an award-winning financial literacy programmethat provides children with foundational knowledge of basic
money management, building their life skills and promoting
financial responsibility. The programme is currently beingtaught in 16 markets. By the end of 2023, over two million
children have been taught and over 66,000 teachers trained
cumulatively. The programme is available in English, French,Bahasa Indonesia, Bahasa Malaysia, Chinese, Cambodian,
Vietnamese and Thai. This year, a pilot programme waslaunched in Cameroon.
Cha-Ching has experienced impressive growth in its
programmes this year, particularly in the Philippines,
Indonesia, and Thailand. In the Philippines, over 850,000
students were taught, and we are aiming to reach over one
million in 2024. In Indonesia, over 390,000 students were
taught. In Thailand, 230,000 students were reached. Looking
ahead, Cha-Ching is celebrating five years in Vietnam
in 2024 and, by mid-2024, it has committed to reaching
100,000 students and equipping 3,000 teachers to reachseven provinces in the country.
2023 highlights include:
The global launch of Cha-Ching Money Adventures,a web-based interactive learning game, designed tocomplement the existing curriculum and foster greater
financial literacy in seven- to 12-year-olds, as well as
encourage families to talk about financial decisions.
Cha-Ching Money Adventures won two Global Silver Anthem
Awards in the category of Education, Art and Culture –Special Projects and Education, and Digital and Innovative
Experiences. The game launch and mall tour were also
awarded the 2023 IABC Gold Quill Award of Merit forCommunication Skills – Special and Experiential Events.
A children’s TV show, ‘Cha-Ching Money Show’, launchedin Africa this year and received over 1.5 million views across
six TV networks and online in Ghana and Nigeria.

b. Health and safety protection

SAFE STEPS Road Safety Africa

SAFE STEPS Kids

SAFE STEPS Road Safety Africa was created and developedby Prudence Foundation in partnership with the Federation
Internationale de l’Automobile (FIA), IFRC and Didier Drogba
Foundation. International football player Didier Drogba is the
programme ambassador. The programme launched in Ivory
Coast in October 2019 and has since expanded to Ghana,
Kenya, Uganda and Zambia, helping to improve safety on
Africa’s roads and in turn save lives.

SAFE STEPS Kids is a multi-platform public-service programme
created by Prudence Foundation, in partnership with theInternational Federation of Red Cross and Red Crescent Societies(IFRC) and Cartoon Network.
Launched in 2019, SAFE STEPS Kids aims to prepare young
children for life-threatening situations. It provides life-saving
information via educational videos and materials featuring
beloved Cartoon Network characters. The programme covers
topics including natural disasters, road safety, first aid, healthand, more recently, climate change.
The videos air across Cartoon Network channels in eight markets
in Asia: Hong Kong, Indonesia, Malaysia, the Philippines,
Singapore, Taiwan, Thailand and Vietnam, reaching between
21 and 36 million households.

2023 highlights include:
Uganda: Boda boda drivers offer an essential form of transport
in the community. However, according to Uganda Police,
boda-bodas are responsible for a growing proportion of roadtraffic accidents that cause 1,500 deaths and 4,000 serious
injuries every year. Prudential Uganda partnered with Uganda
Red Cross to roll out a SAFE STEPS Road Safety campaign andtrained over 4,000 boda boda drivers in Kampala region.

2023 highlights include:
Vietnam: Prudential Vietnam and Prudence Foundation
continued the partnership with AIP Foundation for the third yearof implementation in schools from August 2022 to March 2023:– Nearly 3,000 quality helmets distributed; helmet wearing
improved from 23% to 83%; road safety knowledge improved
from 44% to 88%; and– More than 635,000 people reached via public awarenesscampaign (30-day pedestrian campaign through billboards
and schools’ media channels).
Regional: In September 2023, Prudence Foundation launched
the latest SAFE STEPS Kids series, Climate Change, in Malaysia
together with the Minister of Natural Resources, Environment
and Climate Change of Malaysia, Nik Nazmi bin Nik Ahmad.
The new series aims to build children’s awareness of climatechange and provide simple actions that they can take to reduce
their impact on the environment. The programme was developedin collaboration with IFRC and Cartoon Network.

Prudential invested$13.0min community
programmes
during 2023

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

Prudential plc

Sustainability Report 2023

34

Simple and Accessible Health & Financial Protection continued

Early childhood care and development
Prudence Foundation supports several programmes to advanceearly childhood care and development (ECCD) in Asia. They aim
to help children reach their full potential.

REACH and School Nutrition Intervention programmes
implemented by China Development Research Fund (CDRF)
The Rural Education and Child Health (REACH) programme focuseson early-stage development from 0 to three years of age. The
programme is designed to help improve child-rearing methods
and provide nutritional supplement support and packages tosupport children’s health.
School Nutrition Intervention aims to improve the quality andstandards of school food in poverty-stricken areas. It includes
a number of initiatives, such as school canteen infrastructure
upgrades, nutrition knowledge-sharing, building healthy schoolsupply chains, a canteen star rating programme, parent-led diet
committees, school meal capability improvement planning anda comparative study of school meals.

School Nutrition
Programme
The School Nutrition Programme has proven effectiveat improving children’s wellbeing and physical fitness
amongst rural students in China. Recognising this,Prudence Foundation commissioned a third-party
research organisation to build a case study and document
CDRF’s experience so that we can share learnings withwider communities. The research output is published
www.prudentialplc.com/en/prudence-foundation/publications/latest-stories-and-updates/stories/addressing-malnutritionamong-children-in-impoverished-regions-of-china

Prudence Foundation has been supporting the REACH and School
Nutrition Intervention programmes since 2018 and renewed its
support to the two programmes for another three years (from 2022
to 2024). The programmes have also been implemented in a new
region, Bi Jie, a rural child development demonstration zone in
Quizhou Province.

Community Healthcare partnership with IFRC Africa

UNICEF Indonesia: Support reopening of ECD centres withimproved quality

The programme will focus on strengthening the capacity of 2,000
community healthcare workforce to provide and facilitate equitable
access to essential health services, and enhancing community
preparedness and responsiveness to health emergencies.

In 2023, a three-year programme was initiated to improve thequality of early learning and development services in 50 Early
Childhood Development (ECD) centres. The programme is set tobenefit more than 1,600 children and 100 teachers. Principals andteachers are trained to improve their teaching practices and engage
parents and caregivers in improving knowledge and skills in nurturingchildren. Local government regulations were developed to enable its
replication. These regulations prioritise local government resources
to improve the quality of these services in the future. They will be
instrumental in shaping interventions and refining the programme
to transform early childhood education.
Prudence Foundation and UNICEF partnered to support the Social
Behavioural Change Communication (SBCC) on Parenting initiative.
This initiative has informed the development of the National
Parenting Strategy, which was launched by the national
government in December 2023.

UNICEF Thailand: Integrating of Nurturing Care Frameworkwith childcare services
In 2023, an assessment tool of child-focused services wasdeveloped to guide effective steps for integrating components fromthe Nurturing Care Framework into other programmes. Off the backof the findings, the content for the Early Moments Matter on Mobile(EMMM) initiative was amended.
The EMMM is a messaging service that provides childcare information
to parents of children aged 0 to six years old. It was revised toencompass all aspects of Nurturing Care, and over 40,000 new
subscribers were added in 2023. Training and capacity building
were also provided to 975 caregivers and service providers to improve
the quality of care and education for over 14,000 young children.

In 2023, Prudence Foundation entered a partnership agreementwith IFRC Africa to support its existing Resilient and Empowered
Africa Community Health (REACH) programme in collaboration
with Africa CDC, which aims to strengthen the community
healthcare systems in African countries.

28,000

Employee volunteering hours

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

Prudential plc

Sustainability Report 2023

35

Simple and Accessible Health & Financial Protection continued

c. Climate adaptation
SAFE STEPS D-Tech
The SAFE STEPS Disaster Tech (D-Tech) Awards were created by
Prudence Foundation in 2019 to find, fund and support technology
solutions that protect and save lives before, during or after natural
disasters. With the increasing threat of climate change leading
to more intense and frequent weather-related disasters, the needto generate awareness, build resilience and support solutions
that mitigate or respond to disasters has never been greater.
This year, we held the third D-Tech Awards, supported by IFRC,
technology partner Amazon Web Services (AWS) and strategic
partners e27 and Jubilee Capital. Wateroam, a Singapore-based
enterprise that develops portable water filters to provide safe
drinking water to communities in rural and disaster-hit regions, won
the award. In the coming year, the SAFE STEPS D-Tech Awards willcontinue its work to build a business network, raise awareness of thedisaster innovation sector, and help startups to grow and scale.

Safe Schools
Over the past 10 years, Prudence Foundation has been supporting
the implementation of Safe Schools in partnership with Save theChildren and Plan International. It aims to build education resilienceagainst disasters and protect students, teachers and local
communities. It also helps to address the targets of the Sendai
Framework for Disaster Risk Reduction (DRR) and the UN SDGs. The
programme is based on the Global Comprehensive School Safety
Framework (CSSF) and focuses on three pillars: safe learningfacilities, school disaster management, and risk reduction andresilience education.
Prudence Foundation takes an innovative and collaborative approachto deepen the impact of Safe Schools, both at country and global
level. Through our long-term partnership with Save the Children and
PLAN International, we provide critical investment, strategy
development, thought leadership, governance and advocacy.
Thailand: In 2023, 260 children and youth from Chiang Rai and
Chiang Mai provinces participated in STEM-DRR training anddeveloped innovations and inventions to reduce disaster risks in andaround schools. In collaboration with the National Office of Basic
Education Commission (OBEC), the CSSF curriculum and a digitalplatform for Safe Schools assessment, training and capacity
building are being developed. These resources are expected to be
finalised and rolled out in 2024.

Cambodia: In 2023, all 60 schools in the Stung Treng province,
having been part of the previous Safe Schools implementation
phase, successfully integrated a school disaster risk reduction action
plan and community investment plan to mobilise resources.
Additionally, 36 target schools in newly supported provinces,
Siem Reap and Ratanakiri, were provided with capacity building
and a Safe Schools assessment. As a result, all 96 schools acrossthe three provinces now have a Hazard, Vulnerability and Capacity
Assessment (HVCA), contextualised DRR action plan and Emergency
Preparedness and Response Plan (EPRP) put in place.
Indonesia: Prudence Foundation supported the National
Comprehensive School Safety (CSS) Task Force to launch the
CSS Facilitator Module, which guides the implementation of CSS.
In Yogyakarta, we supported the development and roll-out of aprovincial model of CSS that can be easily replicated and includes
a set of CSS minimum criteria. We also supported the launch of
the Provincial CSS Roadmap 2023–2026 to ensure its successfulroll-out. The programme has been implemented in 100 senior highschools in Yogyakarta. In 2024, the programme will be fully handed
over to the local government to maintain momentum on its roll-out.
Additionally, we will launch Safe Schools in Bali.
Philippines: The CSS Ecosystem project, launched in 2018, is aninnovative multi-stakeholder partnership between the Philippines
Department of Education (DepEd), Prudence Foundation and Save
the Children to build the resilience of the education system andimprove school safety.

Core to the project was the development of the Disaster Risk
Reduction Management Information System (DRRMIS), whichleverages innovation, technology and data to provide timely andaccurate analysis for school improvement plans.
In 2023, DRRMIS was integrated into the DepEd’s Basic Education
Information System (BEIS), the central platform for school datacollection and analysis across all 47,000 schools nationwide.
A midline evaluation by an independent consultant has shownthat using the Rapid Assessment of Damages Report (RADaR)
app has helped drive an 11-fold increase in the DepEd’s budget
for disaster responses.
Global: Since 2021, Prudence Foundation has been working with
Save The Children and the Global Alliance of Disaster Risk Reduction
and Resilience in Education Sector (GADRRRES) to update andenhance the Comprehensive School Safety global framework, policy
advocacy and guidance. The CSSF was revised in response to
growing evidence of the acceleration of climate change and otherrisks, such as Covid-19 and new conflict dynamics, all of which will
impact education globally. The CSSF 2022–2030 was launched inlate 2022, providing governments across the world with a policy
framework and practical guidance to strengthen their education
systems against all hazards and threats. In 2023, Prudence
Foundation continued to support global advocacy efforts witha second phase programme focusing on the development andimplementation of a Global School Safety Survey. This survey isdesigned to provide baseline data to inform action and solutions.
Additionally, Prudence Foundation will continue to support capacity
building for four countries (to be identified in 2024) to develop
in-country advocacy strategies.

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

Prudential plc

Sustainability Report 2023

36

Simple and Accessible Health & Financial Protection continued

Other activity in building resilient communities

Taiwan22 years ago, we jointly launched the ‘Wishing Doll Programme’ with the Taiwan Fundfor Children and Families (TFCF). This programme has helped more than 28,000 children
to escape the shadow of violence and provided 70,000 trauma recovery interventions forchildren and families who have been mistreated.
In 2023, we invited renowned illustrator ‘Blackeyebow’ to join the Wishing Doll
Programme and design LINE Stickers for charity sales. The profit generated from
Wishing Doll LINE Stickers will be donated to TFCF to help protect children fromdomestic violence.

ThailandPrudential is working with two government hospitals – Somdet Chao Phraya Hospitaland Srithanya Hospital – to support underserved communities impacted by Covid-19
with a PRUWellness Clinic. This clinic will become a one-stop service for primary
treatment, with consultancy systems to support and reduce the workload of the twolarge hospitals.
Services include screening to determine what stage the patient’s condition is at, before
passing them through to the treatment process. In addition, the clinic supports homelessand underserved groups with their physical and mental health, helping them prepare to
re-enter society and potential employment.

Philippines
PRU Life UK’s community-based financial literacy programme, ‘Wais sa Pera si Juana’reached 1,374 Filipino farmers and fisherfolk from Lian, Batangas.
Conducted in partnership with our NGO partner, Asia Society for Social Improvement
and Sustainable Transformation (ASSIST), the programme was developed via a grantfrom the PRUInclusion Award, which we received as a runner-up in 2021 for ourcustomer propositions for the ‘Made for Every Family’ brand campaign.
The programme included, for the first time, a discussion on the impact of climate change
on health, including mental health, to educate farmers about climate health resiliency aswell as financial management.
The session featured Dr Renzo Guinto, planetary health expert and author of PruLife UK’s
2021 commissioned independent study, ‘How will climate change affect the health ofFilipinos in the next decade?’, and Dr John Aruta, an Associate Professor at De La Salle
University, Manila.

This programme hashelped more than

28,000children to escapethe shadow ofviolence

One-stop service

PruWellness
ClinicSet up to support
underserved communities

This community-based
financial literacy
programme reached1,374

Filipino farmers andfisherfolk from Lian,
Batangas.

Clean and safe

drinking water – Uganda
Prudential Uganda has partnered with Tusafishe Limited –an NGO which seeks to enhance the provision of clean andsafe drinking water through technology – to benefit over
15,000 students at five schools in the Mbale District,western Uganda.

75%

of all diseases diagnosed at the Mbale Regional
Referral Hospital can be attributed to theconsumption of unsafe water and poor hygiene.

The schools have always grappled with the daunting
challenge of securing clean water for their students.
Traditional solutions for water purification in schools, suchas boiling and the use of chlorine and disinfecting tablets,
come at a high environmental and financial cost.
Tusafishe’s water purification system has the capacity
to purify up to 4,880 litres daily, eliminating up to 99.999%of all disease-causing pathogens from water sources. It isa transformative technology that not only purifies water
but also safeguards the environment.

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Responsible

investment

Managing climate-related risks and opportunities

Reference tables

Prudential plc

Sustainability Report 2023

2023 pillar highlights
Our priorities
Financing a just and inclusive transition
Decarbonising our portfolio
Mainstreaming responsible investmentsin emerging markets

37

38
39
41
42

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Prudential plc

Reference tables

Sustainability Report 2023

38

Responsible Investment continued

Developed

new internal investment
target on financing thetransition,

2023 pillar highlights
At the centre of our responsible investment approach is
our view that the transition to a lower-carbon economy
should be a just and inclusive one. As a large asset
owner and manager focused on Africa and Asia, weare keenly aware that emerging markets face uniquechallenges as they seek to decarbonise. Typically, they
are more reliant on fossil-fuels than developed markets,
while having pressing social and development needs tomeet, making it very difficult for them to meet global
decarbonisation thresholds.

Anchor investor of thelargest equity
ETF fundUpgraded our WACI
reduction target
from 25% to55%
by 2030

Ongoing engagementwith the companies
responsible forin Singapore (at time of launch) –iShares MSCI Asia ex Japan

Climate Action ETF

875

Our 2022 ‘Just and Inclusive Transition’ paper outlines the issues
we want to help address through responsible investment. Currently,
most global responsible investment frameworks do not differentiate
between emerging and developed markets – applying the same
standards and thresholds to both, despite the different risks andchallenges they face. This is a barrier to much-needed investment
to finance the transition and not in line with the ‘common but
differentiated principle’ of the Paris Agreement.

corporate
engagements
conducted in 2023

We want to use our scale and position to drive positive change
by ensuring that the needs of emerging markets are considered in
our investment decisions. Our approach to responsible investment
is built around three key themes:

Eastspring voted in– Financing a just and inclusive transition;– Decarbonising our portfolio; and– Mainstreaming responsible investments in emerging markets.

of proxy votes for which
it was eligible to vote

Our efforts are informed by our climate transition plan, which setsout our long-term net zero pledge and interim targets. We havemade good progress towards our own decarbonisation, but recognise
the opportunities to be proactive in enabling the transition to alower-carbon economy for emerging markets in the coming years.

as an underpin to the WACI
reduction target

97.2%

87%

of Eastspring’s international funds(SICAV) received EU SFDR Article
8 status; and Eastspring voted in
97.2 per cent of proxy votes forwhich it was eligible to vote.

65%of the absoluteemissions in ourinvestment portfolio

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

Prudential plc

Sustainability Report 2023

39

Responsible Investment continued

Our priority

Prudential’s efforts and commitment to reach net zero by 2050 arealigned with science and the Paris Agreement. At the same time,
operating in a breadth of markets across Asia and Africa demands
a considered and dynamic approach to the low-carbon transition.
The climate-related risks and opportunities in developed markets
with diversified and mature economies are very different to thosein emerging markets. This can be seen in the large divergence
between countries and regions in their efforts and ability to act
on climate change by reducing their carbon footprint.

Financing a just and inclusivetransitiona. Allocating capital to climate-related investment
opportunities
b. How sustainability enables Prudential to createshareholder value

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40

Some of the countries that remain the most carbon-intensive arethose least likely to be able to fund the transition to lower-carbon
technologies and practices. There are structural challenges that
hamper their ability to secure much needed funding. There is a lackof industry standards relating to transition finance; and limited
industry standards on climate change do not address the need tofinance carbon-intensive companies through the transition process.
Prudential supports and follows industry standards on decarbonisation,for example, by setting targets for portfolio aligned to a 1.5°C
scenario. We also recognise that these targets might discourage
investors from financing carbon-intensive companies that needto transition from brown to green on the path to net zero.
Companies operating in emerging markets might not be able tomeet the high decarbonisation thresholds set by developed markets
as they are at very different stages of economic development,
as reflected in the net zero scenario of the International Energy
Agency. As a result, emerging markets are underrepresented inclimate-related investment strategies. Shifting capital away fromregions where transition financing is most needed hampers not
only the climate transition, but also long-term sustainable socialand economic growth in these regions.

Our strategy on financing the transition seeks to address thesechallenges by using our capital to advance a just and inclusivetransition. It takes a differentiated approach towards our markets,recognising that Singapore and Hong Kong are well placed to leadthe way towards climate transition in Asia, while emerging markets
will take a longer time to transition. For example in developed
markets, the focus lies on financing green energy solutions. In many
emerging markets in Asia, finding ways to finance the phase out ofcarbon-intensive assets like coal plants has the potential to achievesignificant absolute carbon reductions. Therefore, our strategy also
identifies categories across the transition financing spectrum,including both ‘green’ and ‘brown-to-green’ investments, which
includes the phase out of carbon-intensive assets.
In our aim to be an active investor in financing a just and inclusive
climate transition to net zero in emerging and developing economies(especially in Asia), we have defined a transition finance investment
target in this direction. While this target will not be communicatedand will remain internal for the time being, it is a clear signal of ourcommitment to net zero as an asset owner and asset manager.
We are now working to develop guidelines to identify suitable
investment opportunities to finance companies as they transition
from brown to green.

Prudential believes
there is a tremendous
investment opportunity
in Asia. There is a criticalneed to drive scalable positivechange in the region, which faces a
multitude of physical climate risks andcorresponding adverse socioeconomic
impacts. Our aim is to enable green
transformation across all sectors,
through investing in companies that
demonstrate transition leadershipand long-term strategic thinking. Thisis how asset owners such as Prudential
can support a just and inclusivetransition in emerging markets.”
Don Guo, Chief Investment OfficerIn brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

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a. Allocating capital to climate-related investment
opportunities

b. How sustainability enables Prudential to createshareholder value

Asia Pacific is the largest and fastest growing region for energy
transition investment, offering transformational opportunities forinvestors with climate-focused objectives. Climate investing in Asia
will be a critical enabler of the global transition to a low-carbon
economy, due to the region’s large population and continued
reliance on fossil fuels1. However, the region also faces a large
financing gap. For investors, this means that investment opportunities
are limited and financing for climate mitigation and adaptationneeds to be scaled up for the market to further develop.

In a nutshell, sustainability means using key business drivers
and levers to create and preserve value.

As the anchor investor for the iShares MSCI Asia Ex Japan Climate
Action ETF, we are committed to supporting companies
demonstrating climate-transition leadership. The largest equity
ETF (at time of launch) in Singapore, the fund gives investors accessto best-in-class companies across Asia Pacific (ex-Japan) that arecommitted to reducing emissions. Helping other investors strengthen
the climate resilience of their investment portfolios is part of ouraspiration to facilitate the green transformation.

1. www.iea.org/regions/asia-pacific

For our shareholders, there are four main aspects:
1. Risk mitigation. We maintain effective sustainability
governance to ensure that all necessary controls are in place.
This is to meet regulations effectively, and reduce the risk ofgreenwashing and social washing.
2. Customer. We integrate sustainability concerns into ourcustomer offerings to align with the changing demandsof customers and elevate our overall customer proposition.
3. Investor confidence. To win investor confidence and maintain
trust from rating agencies, we must demonstrate actionablecommitments to sustainability in alignment with investors’
long-term interests.
4. Brand differentiation. Creating a holistic approach tosustainability, such as developing inclusive products and strong
responsible investment offerings, can differentiate our brandfrom peers.
Building strong relationships with a broad set of stakeholders
creates value and enhances the resilience of Prudential’s businessmodel. We strive to fulfil the needs of customers, employees, andcommunities to maximise value creation.

Exploring green financing
solutions with Vietnamesestakeholders

We focus our local engagement on initiatives that enable
real change through practical solutions. Green bonds makeup a significant segment of the sustainable finance market
and are a key financing tool to support emerging markets
to achieve a just and inclusive transition. There is growinginterest from international and domestic investors to fundclimate-related projects in Vietnam. However, a lackof consistent framework remains a challenge and theVietnamese government has identified the pressing needto establish a legal framework for green bonds.
In 2023, our Vietnam business and Climate Bonds Initiative(CBI) organised a thematic bond and transition investment
workshop. The session brought together a broad range ofstakeholders from government, banks, rating agencies andfinancial institutions, to non-profits. The objective was tosolicit feedback from market participants to understandthe issues involved in scaling-up the labelled bond market
development in Vietnam.
The next step will be to prioritise challenges with policymakers
and establish a working group to explore policy solutions.

Pioneering sustainability
bond issuance inCambodiaLabelled bonds are gaining traction in Cambodia.
In November 2023, Prudential Cambodia was one of
two global insurance investors that fully subscribed to
Cambodia’s first corporate sustainability bond. Issued bydomestic telecommunications company CamGSM PLC,
the bond will channel its proceeds of $20 million into
supporting local projects that address climate-related risks,
including investment in renewable energy and connectivity
infrastructure (ie network capabilities) within underserved
communities. Investing in digital solutions can ultimately
enable access within the community, including greater
availability of information on health and financial security.
Additionally, in December 2023 Prudential Cambodia
became the main investor in CIA FIRST International
School’s bond listing, the first education-sector bondin Cambodia.
These two bonds are respectively guaranteed by GuarantCoand CGIF2 respectively, and demonstrate how blended
finance can effectively mobilise private finance and growlocal currency capital markets.

2. Credit Guarantee and Investment Facility (CGIF), a trust fund of the
Asian development Bank (ADB)

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Responsible Investment continued

Our priority

Decarbonising our portfolio

Decarbonising our portfolio
Local context is a key consideration in our assessment of how
best to enable the transition to a low-carbon future. Companies
operating within emerging markets are often more carbon intensive
than their developed market counterparts1, which could lead someinvestors to shift capital away from emerging markets. We believe
this would hamper the ability of emerging markets to transition toa lower-carbon future, hence we are exploring and implementing
a wider variety of strategies to achieve net zero.
In May 2021, we committed to achieving net zero emissions by
2050 for our investment portfolio. We also resolved to reduce
emissions intensity within our investment portfolio by 25 per centby 2025. At the end of 2023, we had successfully reduced the WACI
of our investment portfolio by 50 per cent from our 2019 baseline.
Based on this strong progress, in August 2023, we revised our WACI
target upwards, committing to deliver a 55 per cent reduction in the
carbon intensity of our investment portfolio by 2030, comparedwith our 2019 baseline.
Decarbonising our portfolio remains a priority, yet our progress in
reducing our WACI is unlikely to be linear. It can be influenced bya range of market factors that could cause the WACI to rise or fall.
Our strategy to finance the transition aims to actively support
carbon-intensive companies on the implementation of theirtransition plans from brown to green. While this will make ourdecarbonisation pathway more volatile, our interim targets alignto a 1.5°C degree pathway.

1. www.iea.org/regions/asia-pacific

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In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

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Responsible Investment continued

Our priority

Mainstreaming responsible
investments in emerging markets
a. Market influenceb. Corporate engagement strategy
c. Engagement process
d. Central engagement
e. Collaborative engagement
f. Investment-led engagement
g. Shareholder proposals
h. Scope
i. Responsible investment governancej. Responsible investment approach

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45
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a. Market influencec. Engagement process

Our long heritage of owning and managing assets across Asia
and Africa gives us a unique perspective on investing in bothdeveloped and emerging markets. It also gives us the opportunity
to understand the range of issues and structural challenges these
economies face in transitioning to a low-carbon economy. As an
active member of global initiatives such as the UN-sponsoredNZAOA and the Just Energy Transition Partnership (JETP), we
contribute by providing a voice on behalf of these markets.

To maximise the impact of our engagement, our asset manager,
Eastspring, interacts with portfolio companies on our behalf via
three main channels:

In 2023, this included advocating in the NZAOA for an explicit
appreciation of the developing market context when investors use
a public framework1 to assess sovereign bond issuers on climatechange. In a similar vein, Prudential actively contributed to shaping
NZAOA position papers, including on the need for investors to give
more in-depth consideration to the unique transition challengesof emerging markets when investing and engaging in the oil andgas sector www.unepfi.org/industries/position-on-oil-and-gassector/. We also provided input into GFANZ2 guidelines supporting
the early retirement of coal-fired power plants in the Asia Pacificregion, again with an emphasis on the unique developing economy
challenges around phase-out activity.
> See our section on Harnessing thought leadership to shape theagenda for more details.

b. Corporate engagement strategy
We work closely with our investee companies to support theirtransition to a net zero business model. Each year, we havecommitted to engaging with the companies responsible for65 per cent of the emissions related to our investment portfolio,
which is aligned to the recommendations of the Net Zero Asset
Owner Alliance. By addressing key topics – such as improving
disclosure, setting net zero targets and decarbonisation targets,
adapting business models, and financing green projects – our goal
is to encourage them to accelerate their progress.

– Central engagement – Our central sustainability team conducts
specific engagement on discrete themes (including
decarbonisation and climate change, palm oil, and UN Global
Compact violations);– Collaborative engagement – Our investment teams participate
in industry working groups on key sustainability topics; and– Investment-led engagement – Our equity and fixed income
teams drive investment-led engagements on company-specificissues (eg earnings and corporate governance).
Across all three channels, Eastspring has conducted a total of 875
engagements with companies in 2023.

Responsible investment
continues to be a key
priority for Eastspring.
Our investment andsustainability teams
practise stewardship throughvarious means, from actively
engaging portfolio companies,
to voting at shareholder meetingsand challenging management
recommendations when appropriate.
We also continue supporting
Prudential’s ambitions to decarbonise
the investment portfolio, and drive
initiatives that enable the transition
to a just and inclusive future.”Bill Maldonado, Chief Executive Officer, Eastspring Investments

1. Assessing Sovereign Climate-Related Opportunities and Risks (ASCOR), a collaboration by asset owners and asset managers to incorporate financially material climate change information when assessing sovereign bond investments.
2. Glasgow Financial Alliance for Net ZeroIn brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Prudential plc

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Responsible Investment continued

d. Central engagement
Eastspring’s sustainability team engages companies to bothenhance positive material ESG traits and mitigate material
ESG risks. The engagement process of the Sustainability team isresearch-driven, and this research (step 3 and 4) complements
the fundamental research of the active equity and fixed income
investment teams.
The engagement process continues until the company has resolved
the sustainability issue in question. This can be a multi-year process.
Eastspring monitors and reports engagement progress, whichis rated using milestones. Each engagement is approachedwith continuous effort, until reaching the highest milestone of‘Company has satisfactorily resolved the issue’. Measuring andmonitoring the progress towards positive engagement outcomesis an important element of active ownership. Additionally, this isan essential element for the escalation process (see A customised
approach to engagement below).

Central engagement cycle

1

2

3

4

5

6

Identify topic forengagement

Identify companies
that are in scope forthe engagement topic

Cross-check company
disclosures against
selected standards,
initiatives, targets, andstrategy

Assess quality ofmanagement, targets,and strategy toshortlist target
companies

Compose engagement
letter and email totarget companies

Monitor progresse. Collaborative engagement
On certain issues, Eastspring works collectively with other investors
to express concerns to a company’s management team. These
collaborative engagement initiatives seek to maximise investor
influence to improve a business’ sustainability practices. The
Eastspring stewardship approach is in line with the International
Corporate Governance Network (ICGN) Global Stewardship
Principles. Collaborative engagement is an important way tomaximise investor influence to preserve or enhance value on
behalf of beneficiaries or clients.

A customised approach to engagement

Milestone 1

Milestone 2

Milestone 3

Milestone 4

Milestone 5

Raised awareness of
issue with company

Dialogue in process

Company has agreed
to address the issueCompany has
developed oris planning to
implement a plan toaddress the issueCompany has
satisfactorily
resolved the issue

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

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Responsible Investment continued

f. Investment-led engagement
Eastspring’s investment teams evaluate material risks to holdings,
which include ESG risks. The level of engagement with portfolio
companies will vary based on materiality, investment size and thenature of any risks identified. These ongoing dialogues tend to
focus on long-term factors that influence companies’ earnings.

Engagement in action

A customised approach to engagement
Each engagement is unique, and appropriate escalation strategies
are determined on a case-by-case basis. Typical escalation
measures include:– Direct dialogue with management – We may raise concerns
around a company’s progress directly with management
representatives or Non-executive Directors;– Proxy voting – By actively exercising our votes, we seek to add
value and protect our interests as shareholders. This may include
voting against management resolutions, supporting shareholder
resolutions, or voting against or withholding votes on director
re-elections;– Shareholder resolutions – We may signal ongoing concerns
to investee companies by submitting shareholder resolutions
on specific issues where engagement has failed; and– Divestment – We may choose to exit an investment as alast resort if identified material risks impact our conviction,
and where we believe further engagement is likely to fail. Thisis an important way to uphold accountability and protect ourclients’ interests.

Voting to drive change
Voting is a crucial element of being an active shareholder and an
important opportunity to influence a company. Eastspring’s voting
and engagement activities are closely aligned when seeking tochange a company’s actions or approach.
Eastspring engages Institutional Shareholder Services (ISS), a fellow
signatory to the United Nations-supported Principles for Responsible
Investment (PRI), to provide administrative assistance in connection
with voting proxies. These services include vote processing andrecommendations.

Engaging to improve the transparency of a major
steel producer
The Eastspring Investment team met with the CFO of a major
Japanese steel producer during 2022 and 2023, to gain clarity
on the company’s transition strategy towards carbon neutrality.
This helped the team gain confidence in the robustness andambition of the company’s transition strategy and its progress
towards implementation. During the engagement process,the investment team emphasised the importance of adequate
disclosure of emissions data (especially Scope 3), climate change
scenario analysis, and concrete steps to align with the Paris
Agreement. In a follow-up engagement in 2023, the company
shared updates on its transition strategy that included a detailed
explanation of their efforts in carbon neutral steel (started in 2022),
carbon capture, and acquisitions to support low-carbon steel.

Engaging on better disclosures around a
Just Transition
In 2023, Eastspring added ‘just transition’ as a new criterion in
its assessment of companies on the theme of climate change
and decarbonisation. This is the principle that a healthy economy
and clean environment can co-exist, and that companies can achieve
this vision without costing workers or community residents theirhealth, jobs, or economic assets.

Eastspring engaged a Singaporean transportation company on theprinciple of the just transition, as its Sustainability Report did not
address the issue. The company’s management identified its talentpool as one of its most valued resources, with ongoing dialogue on
reskilling and upskilling training programmes for its employees tosupport the company’s transformation initiatives. Despite theserious business downturn the company encountered during theCovid-19 pandemic, it continued to spend on upskilling training
programmes for its employees. Through a live engagement callwith the company, Eastspring persuaded its management to add
its perspective on the just transition in its next Sustainability Report.

Engaging a cement company in Greater China on
climate change
Eastspring began engaging this state-owned enterprise at the endof 2021. In its latest 2023 review, the company had set short- andlong-term carbon reduction targets, using the country’s Nationally
Determined Contributions (NDC) as guidance.
The company had a relatively clear decarbonisation plan,
primarily via solar panel installation around its manufacturing sites.
Eastspring engaged management on the capital expenditurebudgeted to align with its decarbonisation plan, climate governance,
and the just transition. While management shared its energy
transition spend for previous years, the company has yet to finalisesuch spend for the next five to 10 years.
During Eastspring’s engagement on the principles of the justtransition, management articulated its progress of constructing
its own solar panels, with commitments to retain and upskill all
employees, including workers involved in coal-generated powersources, via training programmes.

Although the company has yet to publicly report on a remaining
few relevant metrics, the management’s willingness to explore andcommit to disclosing of capital expenditure warranted a milestone
upgrade, from Level 2 to Level 3.

Engaging a Middle East utility company on interim
climate decarbonisation goals
Eastspring first engaged this utility company in the Middle Eastin early 2022, as the firm was one of the top 65 per cent of carbon
emitters in Prudential’s investment portfolio. Eastspring determinedthat the company had undeveloped short- and medium-term targets
to reduce carbon emissions, even though the utility had establisheda long-term net zero emissions goal by 2050. Our engagement wasmade on the grounds that the company needed to fulfil the basic
requirements of a climate action plan, which the utility started
making progress on in late 2023 (ie start disclosing to CDP and set
clear medium-term carbon reduction targets). In a positive
development, the company also started integrating ESG targets
into the Group Chief Executive Officer’s Key Performance Indicators.
At the start of Eastspring’s engagement, the utility company was
rated as a Level 2 milestone, due to lack of near-term targets andtransparent climate-relevant disclosures. As progress continued,
Eastspring upgraded the company to Milestone 4 in recognitionof its positive developments.

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

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Sustainability Report 2023

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Responsible Investment continued

Eastspring reviews these recommendations and decides whether
to follow or vote differently.
Shareholders’ long-term interests are paramount, so Eastspring
does not always support company management and may voteagainst management from time to time. In 2023, Eastspring votedon 97.2 per cent of proxy votes in which it was eligible to vote.
Eastspring voted with management recommendations on 89.4 percent of these and voted against management recommendations
on 10.6 per cent of these.

Voting on climate change
Eastspring votes in line with the following guidance for any
proposals related to climate change. In general, we vote in favourof decarbonisation strategies and climate change approaches thatare in line with the goals of the Paris Agreement. Eastspring assesses
proposals on a case-by-case basis, taking into account the following
considerations, including decarbonisation parameters (ie company
strategies should cover Scope 1 and 2 emissions, and material
Scope 3 emissions where possible), clear prioritisation of emissions
reduction activities over carbon offsets, and evidence of support
via a capital expenditure plan. In terms of disclosures, the company
should report climate-related financial risk, preferably aligned to
the TCFD recommendations.

g. Shareholder proposals
We generally vote in favour of shareholder proposals that are in linewith the Paris Agreement and take the above considerations into
account. However, we may vote against shareholder proposals that
we believe are unrealistic or put the company in an unfair position
in relation to competitors and/or the government.

h. Scope
This requirement applies to Eastspring and at best effort’s basis toother asset managers across the Group, depending on the capabilitiesof the asset managers. This requirement will eventually apply to all
asset managers.

i. Responsible investment governanceTo oversee our responsible investment activities and monitor our
progress towards our commitments, we have established a robust
governance framework.
At the Board level, the Risk Committee oversees environmental andclimate-related risk, our commitment to decarbonise our operations
and investment portfolio, and other responsible investmentcommitments. The Responsibility and Sustainability Working Group(RSWG) also sits at Board level and oversees the integration of ourGroup sustainability strategy throughout the organisation. In 2024,
the Board plans to establish a Sustainability Committee to replace
the RSWG.

Risk Committee
Board committee that
reviews the Group’smaterial risk exposures,and monitors the Group’sreporting against
the recommendationsof the TCFD

Responsibility &Sustainability
Working Group(RSWG)
Board-level working
group that oversees
embedding the Group’s
sustainability strategy.

Group Sustainability Committee
Responsible for assessing sustainability matters
holistically at Group level.

Group Investment Committee (GIC)
Oversees Group-wide investment performance and risk
exposures, including those impacting policyholders
Members include asset manager CEO, CIO and Chief
Actuary

Group Responsible Investment Working Group(GRIWG)
Oversees all responsible investment activity
across the Group.

The management-led Group Sustainability Committee oversees
responsible investment activity and has delegated operational
responsibilities to the Group Responsible Investment Working Group(GRIWG). The GRIWG is co-chaired by Prudential’s Chief Investment
Officer (CIO) and the CIO of Eastspring, and provides a regularforum for discussing responsible investment approaches andmonitoring progress towards decarbonising our investment
portfolio. During 2023, the GRIWG met 10 times and discussed
a range of responsible investment topics.

Investment screeningin action

j. Responsible investment approach
ESG considerations are becoming increasingly important elementsof good investment practices. Managing ESG risks by applying our
Responsible Investment Policy is part of our effort to generate
long-term returns on assets.
Our Responsible Investment Strategy includes six key strategies
for using our influence to make a meaningful real-world impact –see our Responsible Investment Policy for more details.
The policy sets out clear criteria for screening investment portfolios,
identifying and assessing sustainability-related risks and processes
for ongoing corporate engagement. To address priority themes, suchas decarbonisation, human rights and biodiversity, we have identified
criteria for excluding companies involved in certain activities.
Looking ahead, we are increasing our focus on preventing
biodiversity loss. Our asset managers screen for exposure to palm oil
producers who are not certified by the Roundtable on Sustainable
Palm Oil (RSPO). We require engagement with corporate palm oil
consumers to raise awareness around the benefits of paying more
for sustainable palm oil to ensure producers in emerging markets
are not penalised for meeting the demand for cheap palm oil frommanufacturers in developed economies. We also review theportfolio for companies that produce, or depend on, commodities
that contribute to deforestation, particularly timber extraction,and engage with them at least annually to assess their exposure.

Supporting responsible palm oil
During 2022, its first year of engagement, Eastspring
identified 22 palm oil-related entities to engage on thistheme. These included 17 plantations and supply-chain
companies, 4 FMCG companies, and RSPO itself. However,further due diligence confirmed that one company is a rubber
grower and producer, which was therefore excluded from
subsequent engagement. As such, the revised first year
engagement group stands at 21 entities. Now embarking
on its second year, Eastspring has identified 23 companies
in total for engagement:18 plantations and supply-chain
companies, 4 FMCG companies, and RSPO itself.

Tackling deforestation
In 2023, Eastspring identified 23 companies that produce,
are dependent on, or use commodities that contributeto deforestation (particularly timber extraction). It hasestablished a plan and commenced engagement to uplift
the standards of sustainability, transparency, and traceability
amongst this group of 23 companies in 2024.

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

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Responsible Investment continued

Integrating ESG throughout the investment process
Step 1:

Step 2:

Step 3:

Step 4:Asset
allocation

Manager
selection

Portfolio
management

Risk
management

We integrate ESG into the strategic asset allocation (SAA)
process in several ways: analysing the ESG profiles of countries,
asset classes and investment strategies; changing SAA
benchmarks to ESG benchmarks; and including ESG
considerations in the asset-liability management (ALM)
process. Our investment teams consider how different
allocations influence the ESG risk profile of the portfolio,
and how allocations to ESG strategies impact specificportfolio characteristics (eg sector allocation).
Our SAAs vary based on differences in regional decarbonisation
targets. In 2023, Prudential Taiwan altered its benchmark to
the MSCI US ESG Enhanced Focus CTB (Climate Transition
Benchmark), to align more closely with Prudential’s overall
responsible investment priorities. Along with Prudential Hong
Kong and Singapore, Taiwan has started to align with themore mature ESG markets of Europe and the United States.

Our in-house asset manager, Eastspring, has integrated ESG
considerations into its fund manager screening, due diligence,
selection and ongoing monitoring processes, to ensure
underlying managers are aligned to our Group ESG
requirements.
We also outsource some asset management to third-party
asset managers, and ESG considerations are included during
manager selection and due diligence, when establishinginvestment mandates with third parties, and throughout therelationship with any asset manager.

Eastspring uses ESG ratings to gain a better understanding of
the ESG risks facing a particular country, sector or company.
The number of third-party ESG rating providers has increased
dramatically, yet score variation between these solutions on
the same portfolio company can represent conflicting signals
for asset managers. To address this challenge, Eastspringdeveloped a proprietary ESG Ratings & ESG Integration tool,
launching within its Singapore fundamental active equity
and fixed income investment teams in 2023.
The platform leverages ESG data from external ESG
rating sources but combines the data components using aproprietary framework. It draws on Eastspring’s internal ESG
materiality matrix which references the industry’s best-in-classframeworks but includes additional context that increases
relevance to our investment universe. Potential biases andlimitations specific to particular ESG ratings are acknowledged
and qualified to ensure investment teams focus on how
sustainability risks might impact returns rather than taking
rating agency conclusions at face value.
For more detail on Eastspring’s use of ESG scores to holisticallyvisualise company sustainability issues, please see https://www.eastspring.com/insights/thought-leadership/why-itsimportant-to-do-your-own-esg-homework-a-credit-perspective.

The Group Responsible Investment policy supports our efforts to manage andmitigate the environmental, social, and governance-related risks of our investment
assets. This approach is consistent with our established risk management frameworkthat embeds risk considerations in first line policies. The six implementation
strategies of the Group Responsible Investment policy each play their role inmanaging the various risks associated with our investment activities, including
financial risks to the investment portfolio and reputational risks to the Group.
Whilst the Group Responsible Investment Policy plays a role in managing risks
associated with ESG considerations in our investment portfolio, we recognise that
implementation of the policy could also amplify other risks such as greenwashingaccusations, legal threats of acting in concert, and conflicts of interest arising
between and within stakeholder groups. These themes were identified as priority
areas of focus in 2023, and a cross-functional working group was formed to build
knowledge, awareness, and monitoring of these topics.

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Responsible Investment continued

Localising responsible investment initiatives

Enabling investment inemerging market lowcarbon opportunities

As of September 2023, Eastspring’s Global Emerging Markets
Carbon Transition strategy has been operational for one
year. Launched in 2022, the strategy manages equities
against the MSCI Climate Change Index and commits todelivering a diversified equity portfolio that has a WACI
below this Index. The strategy will also look to identify
attractively valued low-carbon opportunities in developing
countries (ie wind energy, solar energy and water treatment).
By design, this strategy delivers a lower WACI than that of
the broader Emerging Market Equity universe. This in turnaims to provide a potential solution to institutional investors
that want to lower their carbon footprint, but remain
invested in emerging markets.

Throughout 2023, we have been implementing localised andmarket-specific initiatives to effectively integrate responsible
investment into our diverse markets.
In the case of emerging markets such as Malaysia, the responsible
investment team at Group led a cross-functional task force. The aim
was to provide in-depth capacity building to our local colleagues,
enabling Prudential to identify the ESG megatrends relevant tothe socio-economic profile, and barriers and opportunities for
scaling sustainable investment locally. The insights gained throughthis effort were developed into comprehensive manuals and used
to engage in constructive dialogues with local peers and regulators
at various events. By facilitating these dialogues, we aimed tofoster collaboration and explore avenues for scaling sustainable
investment opportunities.
In Vietnam, Prudential hosted a roundtable that brought together
key local bond market participants to discuss challenges andopportunities for scaling up the labelled bond market in the country.
We also supported regional stewardship by co-delivering speaking
engagements with financial regulators in Thailand. These efforts
aimed to raise awareness, educate stakeholders, and promoteenabling sustainable markets in our regions.

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In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Sustainablebusiness

Managing climate-related risks and opportunities

Reference tables

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Sustainability Report 2023

2023 pillar highlights
Our priorities
Empowering our people
Establishing sustainable operations and value chain
Harnessing thought leadership to shape the agenda

48

49
50
57
65

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Prudential plc

Reference tables

49

Sustainability Report 2023

Sustainable Business continued

Targeting2023 pillar highlights
Our mission is to be the mosttrusted partner and protector
for this and future generations –a goal that requires us to embedsustainability throughout
everything we do, in every market
we serve.
As part of Prudential’s refreshed sustainability strategy, we
continued to stay focused on accelerating the pace and scale ofthe positive impact we want to make, ensuring that sustainability
principles are foremost in all our business decisions and throughout
our supply chain.

Connecting Healthand Climate:Over

15,000Prudential EOS Climate
Impacts Initiative andPrudence Foundation’s
partnership with the
IFRC

22%

Reduction in global
absolute Scope 1 and 2(market-based) GHG emissions
compared to 2022

total employees

sustainabilitylinked KPIby 2026‡ Data as of 30 September 2023

percentile on theemployee Net Promoter
Score (eNPS)

10%13,000of the total Executive Directors’
2024 Prudential Long Term
Incentive Plan awards linked
to sustainability, of which 5%
will be linked to carbon reduction
and another 5% linked
to diversity

suppliers‡

Our sustainable business pillar speaks to who we are as a company
and has three priority focus areas: empowering our people,
establishing sustainable operations and value chain, andharnessing thought leadership to shape the agenda.

Targeting all people
managers to have a

75thTargeting40%

women in our Group
Leadership Team by theend of 2026

‘This is Me’partnershipto normalise
conversation on mental
health, neurodiversityand disabilities

45%

women on Board asof December 2023

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Prudential plc

Reference tables

Sustainability Report 2023

50

Sustainable Business continued

Our priority

To deliver our ambitious strategy, we are mobilising our more than
15,000 colleagues behind our new purpose. We have developed a
new people and culture strategy to create an environment where
our talent can grow, and maintain a high-performance culture forlong-term resilience.

Empowering our people
a. Culture
Values-driven leadership
Belonging
Employee experience and wellbeing

51
51
51
51

b. Capability
Strategic capability acquisition
Talent and leadership acceleration
Learning academies

53
53
53
53

c. Talent vitality
Succession
Mobility
Diversity

54
54
54
54

d. Performance and rewards
e. People insights and processes
f. Our agents

Our people are critical to our continued success. They want to bepart of an organisation that is socially responsible and guided bya strong purpose – where everyone can build a rewarding careerand feel they belong. To ensure we can keep attracting andretaining talented individuals to serve our business today and in
the future, we have strengthened our focus on rewarding highperformance and creating an outstanding employee experience.

Ambition

Strategic goals

Our leaders are driven by values and nurture a culture that fully
understands who we intend to be and how putting our people
and customers at the heart of everything we do will help us win.
We will invest further in developing the capabilities of our workforce,through strategic talent acquisition and internal talent development
focusing on building the skills we need to deliver on our company
purpose and strategy, including sustainability skills.

Create an environment where talentthrives and powers growth

Priorities

CultureCapability

Talent vitality

A winning spirit thatis customer-led andperformance-driven

Unparalleledcapabilities in digital
distribution, customer
and health

A robust succession
pipeline and dynamic
talent marketplace

Values-driven
leadership

Strategic capability
acquisition
Talent and leadershipacceleration

Succession

Belonging
Employee experience

55
55
56

Performance and rewards

Learning academies

Diversity

People insights and processes

We place our people at the heart of everything we do. While each of us is unique, we all have one thingin common: we are united by our Prudential purpose and our values which form the cornerstone of ourculture. When we live our values, we build an environment where there is trust and transparency, where
we can grow and thrive. And in turn we can deliver the best outcomes for our people, and for ourcustomers, shareholders and communities”.
Catherine Chia, Chief Human Resources Officer

MobilityIn brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

Prudential plc

Sustainability Report 2023

Sustainable Business continued

a. Culture
Values-driven leadership
An important step towards embedding our new business strategy
was the launch of the PruWay – the fundamental values, shapedby our employees, which define who we are and what we represent.
The PruWay defines new ways of working with one another anddelivering value for all our stakeholders – our people, our customers,
our shareholders and our communities. No matter where we are orwhat role we play at Prudential, we are all expected to behave withintegrity, care and respect for one another.
In another new development for us, the strategy and values wereshared with colleagues in all markets via a series of 11 employee
engagement roadshows promoting the PruWay, in which our people
had the opportunity to engage closely with all eight members of theGroup Executive Committee (GEC). The event significantly
increased understanding of our message and how to consistently

deliver it. The GEC, in conjunction with country CEOs, used theplatform to engage with market leaders and talent, letting themhear first-hand the top-level thinking behind where Prudential isheaded in the next five years. Roundtable dialogues between the
GEC, leaders and selected talent helped adapt the strategy to
specific market context.
We also held workshops with our Group Leadership Team (GLT) of
about 200 leaders across the organisation, who will drive the culture
by cascading the values to their teams. The GLT will be supported
by Culture Influencers across the business to ensure the habits ofdemonstrating the values are embedded in the organisation.
In 2024, we will be engaging with all 15,000 staff to understandwhat our purpose and values mean for them. The first six months of2024 will focus on ensuring people are up to speed with our refreshedperformance management approach, and look to embed ourvalues, accelerate the talent agenda and upskill the relevant people.

Belonging
PRUCommunities
Following the launch of PRUCommunities in 2021, our employeeled networks continued to strengthen connections, enabling a senseof belonging at Prudential. Local businesses have set up their own
PRUCommunities, demonstrating their commitment to celebrate
different cultures and our shared identities within the organisation.
In 2023, we established PRUAbility, a network led by the talentacquisition team which has made visible progress in raisingawareness and offering support to individuals who areneurodivergent and disabled. One of the key initiatives that
PRUAbility supported was the development of ‘Disability and
Neurodiversity Recruitment’ guidelines in our Recruitment Playbook.
This guideline outlines the factors that Human Resources, hiring
managers, and interviewers should consider during the recruitment
process for this underrecognised group.

Employee experience and wellbeing
We are looking to transform our employee experience and ensure
our people can visualise their career progression at Prudential, whiledeveloping the strategic skills we need to build the business. This
goes beyond performance and considers their future potential. It
is important that our people feel included in our plans, which is why
we are clear about what we want to achieve in developing them.

PruWay values

Our customer
is our compass
We immerse ourselvesin understanding ourcustomers. We commit
to our customers’ needs
and address their pain
points with speed andempathy.

We pursue ourentrepreneurial spirit
We push boundaries andexplore new possibilities.
We are resilient,bouncing back from ourfailures and moving
forward with new insightand energy.

We succeed together
We win by collaborating
as one team. We actively
break down silos andwork across all levels of
the organisation.

We respect and carefor one anotherWe are empathetic
and treat each otherthe way we would like to
be treated. We respectdifferences and create
an environment that issafe, where everyone
can be themselves.

We deliver on ourcommitments
We make responsible
decisions and areaccountable forour actions to all
stakeholders. We areresponsive and executewith excellence
and integrity.

Our wellbeing pillars

In 2023, we decided to switch to conducting shorter employee
engagement surveys to enable us to gain regular feedback andrespond quickly to emerging issues across markets. This approachallows our people to provide timely feedback as they help to shape
our culture and ensures they feel valued by the swift actions wetake. At the same time, it will help us detect early warning signs,
track actions and measure impact against key people metrics. A full
people survey is scheduled for the second half of 2024.
We are targeting the 75th percentile on the employee Net Promoter
Score (eNPS) – reflecting our ambitions for a truly engaged
workforce. Currently, we are slightly below the 50th percentile,
from the most recent survey, done in December 2023.

HealthWe create a workplace that
fosters a healthy lifestyleand provide competitive
protection benefits for
employees and theirdependents.

MentalWe promote mental healththrough access to support,
when and where our people
need them, within anenvironment of psychologicalsafety at work.

Financial
We support you to achievefinancial security throughinnovative financial tools,
financial literacy andplanning.

Work-Life Blend
We recognise different
ways of working andprovide and inclusive,
family-friendly andcommunity focused work
environment.

51

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

Prudential plc

Sustainability Report 2023

52

Sustainable Business continued

Employee wellbeing underpins sustainable performance. Hence, wehave continued to create a supportive, inclusive and conducive work
environment to foster health, wellbeing and work-life blend. On topof existing policies and programmes such as hybrid work, wellness
leave, sabbatical leave and volunteering leave, in 2023 we rolled out
a digital wellbeing and coaching app to further support individuals.
The app provides coaching on topics such as fitness, nutrition,
mental health, career and financial planning, and individuals havequick access to personal coaching support.
As part of our continuous efforts to promote wellbeing, the third
Group Wellness Day, on September 15 was rebranded to ‘Prudential
Recharge Day’ to encourage our people to collectively recharge andspend quality time with family and friends.
Our PRUCommunity’s We DO Wellness members continued toregularly share tips on healthy lifestyles and held learning sessions
to promote wellness practices. We have more than 300 certified
Mental Health First Aiders (MHFA), comprising 2 per cent of ourworkforce and, of which, 39 per cent of those are people managers.
These voluntary individuals consistently support our colleagues
and advocate for the programme’s objective to cultivate a
psychologically safe workplace. We also recognise the importanceof continuous support for our MHFA and will be looking to offer
regular refresher workshops as needed.
On World Mental Health Day in October 2023, we announced
a two-year partnership with ‘This is Me’, a global initiative tonormalise conversations around mental health and disabilities.
This step signifies our commitment to fostering an open andinclusive workplace for psychological safety, and also demonstrates
our values of respect and care for one another. Catherine Chia, ourChief Human Resources Officer, inaugurated the campaign as the
Executive Sponsor. She shared her own experience of burnout over
20 years ago, to illustrate the importance of the more supportive
work environment we nurture today.

In our follow up employee survey at the end of 2023, results
showed a positive trend in employee wellbeing, with an overall
wellbeing factor score of 73 per cent, showing a 3 per centimprovement from the 2023 global people survey conducted in
January, particularly in the ‘work & life blend’ category. Feedback
from the survey showed a supportive culture and flexibility inmanaging workload challenges. However, wellbeing ratings remain
relatively low at 70 per cent in the aspect of being ‘able to effectively
switch off from work to make time for rest’. These insights underscorethe ongoing support needed from us to address employee wellbeing
challenges in 2024.
As we continue to prioritise workplace wellbeing and mental
health in 2024 with our established strategy and programmes,
we acknowledge that there are challenges in monitoring andmeasuring the direct impact of this for our employees. The reason
for this is that mental health covers a broad spectrum of issues withmany dependencies, eg personal matters that are beyond our
influence as a company. As a responsible employer, we will continue
to support our people and enhance our programmes where relevant.

Employee turnoverIn 2023, we saw a total turnover of 17.0 per cent for employees,
including our call centre staff. This represents a reduction comparedto the 2022 rate of 22.6 per cent, and was driven by our continuous
focus on initiatives for improving people engagement, wellbeing
and culture across our businesses. The employee turnover rate
reflects the number of employees who leave employment
voluntarily or involuntarily during the reporting period.
The total voluntary employee turnover, excluding call centre staff,
improved at 10.4 per cent (2022: 16.7 per cent). Employees include
permanent and contract (fixed term) employees but exclude
contingency workers and interns. A breakdown of our employee
turnover rate by gender, age group and region is reflected in the
Reference tables section.

Employee relations
Prudential is committed to fostering an inclusive, diverse andopen environment for our employees. Our Employee Relations
Policy recognises that people have always been our mostimportant asset and governs the way we engage with them.
This is fundamental to attracting the talent we want, retaining
our current people and motivating them to achieve success forthemselves and the Group.
The policy is published externally, and promotes positiveand constructive relationships with our employees and theircollective representative bodies, such as trade unions. Eachmarket must demonstrate this with approaches in place
to safeguard our people’s rights of freedom of associationand collective bargaining.
Given the diverse markets in which we operate, union
representation and collective bargaining practices varyby market. Our businesses in Malaysia, Singapore, Vietnam,
Zambia, Côte d’Ivoire, Togo and Cameroon all have tradeunion representation.
Prudential strives to promote inclusive employment andprovide equal opportunities for growth and career progression,
giving fair consideration to applications regardless of race,
gender, religion, national or ethnic origin, marital status, sexual
orientation, age, disability or any other characteristic protectedby law. We make appropriate arrangements for continuing theemployment of employees who become disabled, and we seek
to promote training, career development and progression forpeople with disabilities, making appropriate adaptations
where required.

If we are to build a diverse, equal and inclusive workplace
where employees can speak openly, it is important that wetake employee grievances seriously. There are various channels
available to people to express their concerns, and we havegrievance policies and procedures in place to ensure timely
and fair investigation of any concerns raised. In addition,
our employees are encouraged to raise any concerns throughseveral available channels, including Speak Out, our third-party
managed confidential hotline and platform.
Our Discrimination and Harassment Policy prohibits any
form of discrimination, harassment, bullying and other typesof misconduct where the behaviour is contrary to Prudential’svalues and standards. This policy further reinforces Prudential’scommitment towards creating a safe and inclusive work
environment which fosters and supports our people’s mental
health and wellbeing.

Prudential strives to promote
inclusive employment andprovide opportunities for growthand career progression, giving
fair consideration to applications
regardless of race, gender, religion,
national or ethnic origin, marital
status, sexual orientation, age,or disability.

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

Prudential plc

Sustainability Report 2023

53

Sustainable Business continued

b. Capability
Strategic capability acquisition
To deliver on our commitment to customers and stakeholders, wehave established workstreams to define the organisational andbusiness capabilities we need. Our goal is to ensure we have boththe functional and technical skills needed to prepare for the future.
To do this, we need to identify the capabilities that we have today,
define the capabilities that we want to have tomorrow, and conduct
a skills gap assessment. We recognise that emerging technologies
may have an impact on our people and their future skills. Ourpreference is to build capabilities internally where possible, butwhere that is not feasible, we will acquire the strategic capabilities
we need to be prepared for the future.

Talent and leadership acceleration
LeadershipA priority of our people strategy is to build a pipeline of adaptive
leaders with both depth and breadth of capabilities. This will prime
our 200 leaders to confidently respond to future challenges, while
continuing to navigate existing challenges.
We have identified leadership segments to create greater
accountability to enable us to deliver on our strategy. The GEC
is unchanged. It is now also supported by two new leadershipgroups – the Group Leadership Team and the CEO Forum. These
groups have been designed to promote transparency and clarity,with membership based on respective roles.

Management associate and internship programmesPrudential’s management associate and internship programmes aredesigned to provide early career candidates with the necessary skills
and knowledge to succeed. Our businesses have the flexibility todevelop these programmes according to their market needs. In
Malaysia for example, we support initiatives to promote the life
insurance industry among undergraduates, offering internships withprofessional development, mentoring, and allowances. In
Cambodia, we help fresh graduates kick start their careers via theManagement Associate Programme, an 18-month rotation anddevelopment programme, as well as the Intern Programme, which
is a short-term project-based programme for senior year university
students. In Taiwan, the Management Trainee Programme
fast-tracks the careers of recent graduates or those with less than
two years of experience, offering in-class and on-the-job training,
while the Internship Programme supports college students invarious roles across eight departments.

The Group Leadership TeamThe GLT meets bi-monthly and its core aim is to drive change,
ensure the company’s culture is led from the top, develop talentand cascade communications and actions throughout the business.
It includes leadership roles that are the direct reports of GEC, allCEOs of our Life businesses and their direct reports at Chief level(for the Africa Regional Hub and the Cambodia-Laos-Myanmar
Hub, only the Hub leaders are included); all CEOs of our Eastspringbusinesses; and selected roles in both our Life and Eastspringbusinesses essential to delivering our strategy.

The CEO ForumThe CEO Forum focuses on people and performance management
across our markets, ensuring our purpose, strategy and values areembedded throughout the business. It also acts as a forum to share
feedback and best practices as we look to drive economies of skill
and scale. The CEO Forum includes Life and Eastspring CEOs. It
meets bi-monthly, on the alternate month to the GLT.

Learning Academies
We offer an internal learning
library, Udemy: an online learningmarketplace with more than

24,000online training courses
in 15 languages

As the business landscape continues to evolve, we must equip our
employees with necessary, future-proofed skills so we can continue
to deliver on our strategy. We offer our people a learning experiencethat includes e-learning, in-person and virtual classroom training
and mentoring. In 2023, we developed our learning academies
and will be launching these in 2024.
We focused our learning efforts on our people leaders in 2023.
To build cornerstones of high-performing teams that createcustomer and stakeholder value and support our growth strategy,
our Leadership Academy supported people leaders to develop theircore leadership skills. The Academy kicked off in July with the LEAP
(Leadership Excellence at Prudential) programme: a 30-day learningjourney that provides a certification pathway for people managers
to oversee their teams successfully. More than 200 people managers
across nine cohorts took part in face-to-face or virtual sessions. This
programme has an overall NPS of 79.

More broadly, we support all employees to own their learning
through an internal learning library, Udemy: an online learningmarketplace with more than 24,000 online training courses in 15
languages. It provides over 200 industry-recognised certification
exams and can identify emerging skills gaps, learning trends andindustry benchmarks. In 2023, our employees focused on developing
business skills such as leadership and management, project andproduct management and business operations. They also dedicatedtime to building technology skills such as Microsoft Officecompetency, data science and IT operations.
Our plan for 2024 is to introduce a foundational training course on
sustainability for our employees. The aim of this course is to help us
continue our sustainability journey together by creating a common
understanding of what sustainability means at Prudential and how
it aligns with our business strategy.
Our learning also includes annual mandatory training on key topics
such as anti-bribery and corruption, anti-money laundering, privacy
and competition law, with employees completing an average of 15hours’ training during 2023. The total training hours per employee islikely to far exceed this as the number of hours that employees taketo complete their non-mandatory training and learning courses is
not wholly captured in our system.

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

Prudential plc

54

Sustainability Report 2023

Sustainable Business continuedc. Talent vitality
Succession
Building a robust succession pipeline is critical to ensure organisation
resilience and leadership sustainability. We are focused on doing
this for our CEOs and GLT members by strengthening our talent
identification and management processes. Select individuals will
be included in targeted development programmes including
opportunities for mobility and strategic projects. Succession plans forCEOs and GLT members are reviewed regularly and discussed at theGroup Talent Council.

Mobility
We want our people to be able to build long and rewarding careers
at Prudential. Promoting internal mobility is one way that wedemonstrate our commitment to creating an environment where
talented individuals can thrive. Internal opportunities are publishedon our Opportunity Marketplace to ensure full transparency acrossthe Group. We measure the percentage of roles that are filled byinternal candidates and we report this metric regularly to the Board
via the RSWG.
In 2023, our mentoring and gig marketplace platforms that werepiloted in 2021 continued to create transparency of internal growth
opportunities for all employees. Through independently establishedmentoring relationships, myMentor provides an opportunity for
employees to seek and connect with mentors to further theirdevelopment.

Diversity
We are a business that celebrates diversity and values inclusion
for our people, customers and partners. Our Global Diversity
and Inclusion (D&I) Council drives D&I initiatives across ourbusinesses, providing updates to the Board biannually, and to
the RSWG quarterly.

We are1 of 6

FTSE 100 companies
with a non-white Chair
As of 31 December 2023,
the representation of
women on our Board was

45%

The D&I Council continues to define our global D&I Strategy
and action plan, outlining objectives and initiatives to promote D&I
across our businesses. While we have seen progress in our diversity
metrics in recent years, we acknowledge that there is room for further
progress. This year, we onboarded new Council members to focus
on inclusion. The Council continues to be guided by its Charter andupholds the principles of employee empowerment, transparency
and community building.
In 2023, we continued to implement our Global Inclusion course,
making it mandatory for new hires.

As of 31 December 2023, the representation of women on our
Board was 45 per cent.
We are one of only six FTSE 100 companies with a non-white Chair.
We have also exceeded the recommendation of the Parker Review
for the FTSE 250 to have at least one non-white director on the
Board by 2024, with seven of our 11 directors fulfilling these criteria.
Non-white representation on our GEC continued in 2023, with 63
per cent of members meeting these criteria compared to previous
years, following our restructuring of this body to better reflect thecommunities we serve.
As a signatory of the HM Treasury Women in Finance Charter since2016, the increased representation of women in our senior
management team remains a priority. At the end of 2022, we hadalready met our target of 35 per cent women in senior management
by 2023. Following changes in the way we define senior management,
we have since set a new target of 40 per cent women representationfor our GLT by the end of 2026. Consistent with prior years, theDirectors’ 2024 PLTIP award will continue to have a diversity
measure to emphasise the importance of this target. For full details
on our 2023 diversity metric linked to the Directors’ 2024 PLTIP
award, please see the Directors’ remuneration report in our Annual
Report and Accounts.
To achieve our new goal, we need a diverse selection of candidates
to choose from – not just new recruits, but also women who havecome through the business. We are creating visibility so thattalented women can see the route to the top.
As part of our ongoing commitment to transparency, we continued
to submit responses to the ShareAction Workforce Disclosure Initiativein 2023, with a 79 per cent disclosure (2022: 87 per cent), and wereawarded a special mention in the ’Workforce Action’ category.

Gender diversity – total workforce‡
2023*

FemaleMale
Unspecified^
Total

2022

% change

8,713.1 8,363.4
6,541.3 6,299.3
3
18
15,257.4 14,681.7

4
4
(83)
4

Gender diversity‡
Group Leadership Team
(GLT)Group Executive
Committee (GEC)
Executive Directors
Chair & IndependentNon-executive Directors

2023*

2022

% change

Female
Male

65
121#

39†
71†

67§
69§

FemaleMale
Female
Male

2
6
–
1

2
6
–
2

–
–
–
(50)

Female
Male

5
5

4
7

25
(29)

* Within the scope of EY assurance – see Basis of Reporting^ No specification or information is captured on gender for an immaterial numberof our employees. These employees are regarded as ‘unspecified’.
‡ Total workforce is reported as FTE, while gender diversity (Board/GEC/Executive
Directors/Chair and Independent Non-executive Directors) are reported asheadcount to align with internal data definition. Newly created this year, we
extended the headcount usage to GLT for diversity reporting to align withinternally approved metrics and provided further guidance on the definition
such that leaders would only be counted as either GEC or GLT. The overall
impact on this change is 0.7 Headcount.
† In 2022, the senior management definition was previously defined as all senior
managers who represent the most pivotal roles in our Group below the Group
Executive Committee (GEC). It excludes the Chair, Executive Directors and GEC
members. We are unable to restate the 2022 figures because the GLT category
was only formed in 2023. From 2024 onwards, our gender diversity figures willbe tracked against our newly created definition in 2023.
§ Increase was due to the broadening out of our leadership definition to support
the new strategy driving collaboration across the organisation.
# GLT members hired by joint ventures are excluded.

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

Sustainable Business continued

d. Performance and rewards
There is a strong link between employee performance andremuneration and reward at Prudential. Our performance
management framework ensures people are supported toachieve peak performance and reach their career goals while
delivering on our business strategy.
Performance is managed in a balanced and holistic manner,with managers expected to support the performance and careerdevelopment of their teams in a purpose-led, collaborative culture
where our values are consistently demonstrated.
Our Group-wide COACH framework reinforces our purpose-led
culture, driving performance through five key principles:– Clear: goals are specific, measurable, achievable, relevant
and time-bound (SMART);– Ownership: employees take responsibility for their own
performance and development;– Authentic: we encourage authentic conversations in a trusted,
respectful, honest and motivating manner;– Continuous: feedback, given or received, is constructive, timely
and ongoing throughout the year; and– How and what: how employees demonstrate our values at work
and what they achieve is linked to how we assess performance.

Sustainability-linked remuneration
Sustainability is included in the strategic priorities for theGroup’s Executive Director by way of a specific objective todrive our climate ambitions and responsible investment focus
across the organisation. This is reflected in the Executive
Directors’ Prudential Long Term Incentive Plan (PLTIP) via
KPIs linked to our commitment to reduce the WACI of ourinvestment portfolio and carbon reduction targets.
Sustainability metrics constitute 10 per cent of the total 2024
Executive Directors’ PLTIP award, including 5 per cent linked
to carbon reduction and 5 per cent linked to diversity. For more
information, please refer to the Directors’ Remuneration
Report within the Annual Report and Accounts.

Prudential values the dedication and contribution of our employees,
and we are committed to providing fair opportunities for our people
to be rewarded and recognised for their efforts. Our Remuneration
Policy ensures that we pay our employees a fair and competitivecompensation package in all our markets, which is benchmarked
annually with our peers.
We continue to actively encourage employee share ownership andengagement through share plans. Our share purchase, share saveand equivalent Sharia-compliant plans offer all employees anopportunity to benefit from the organisation’s success. Engagement
remains steady with one in three employees participating.
The Group’s executive remuneration arrangements reward theachievement of Group, business, functional and individual targets,provided that performance is aligned to the Group’s risk management
framework and appetite, and that it meets our conduct expectations,as well as those of our regulators and other stakeholders. Since ourUK headcount is below the threshold that triggers mandatory
gender pay gap and CEO pay ratio reporting, we will not be
disclosing this information on a voluntary basis in 2023.
Information on executive remuneration and its alignment
with the pay of other employees is provided in the Directors’
remuneration report within the Annual Report and Accounts.

e. People Insights and Processes
We are constantly reviewing opportunities to improve our
performance and processes, which are an important foundation
for supporting and empowering our people through their career
lifecycle, providing the employee experience they want.

Using AI in workforce management
The potential for AI in our employment practices is significant.
We take a highly responsible approach to using AI, ensuring wefully understand its impact now and its potential for the future.
Generative AI has helped us understand our employee voice, byextracting key themes from verbatim comments received in annual
engagement surveys. The dissatisfaction drivers identified via thisprocess helped us create the key People KPIs to improve employee
engagement in the following year.

We created a predictive attrition risk dashboard in two local
business units which is available to every manager, enabling themto proactively engage with at-risk individuals, improving engagement
and reducing attrition. In addition, we ran a machine learning pilot
in recruitment to reveal objective and data-driven insights byscanning and summarising resumés against the job attributes
for recruiters. This helped recruiters prioritise the most relevant
candidates for the position.

Prudential plc

Sustainability Report 2023

55

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

Sustainable Business continued

f. Our agentsTraining, learning and development

PRUExpert manager series

We hold our agents to the same high standards as our employees,
expecting them to adhere to our Code of Conduct and Ethics. As
part of our Agency Governance process, controls have been put inplace requiring agents to attend annual training that covers sales,
product knowledge and compliance-related matters, with sanctions
in place for non-compliance.

In 2020, we began to shift from simply training our agentsregularly on responsible product offering and marketing toempowering them to take charge of their own learning journeys.
We have moved to a blended learning model which focuses on
experiential, activity-based training – from focusing on knowledge
and skills in e-learning or classroom settings to intentionally shaping
desired behaviours on the job, where performance really matters.

Agency Growth (AG) Directors are assigned to collaborate withthe market agency team on strategic initiatives and various
agency-related items, including compensation and recruitment
schemes, for example, and potentially supporting agency operations.
Recent example includes the Transform to Accelerate (TAG)
project in Indonesia and Project Catalyst in Malaysia.

We aim to equip our agents to be the best they can be, not just in
the provision of financial advice but also in prioritising customer
experience. We deliver our learning solutions through three channels– digital learning via our PRUExpert learning management system,
instructor-led training by our learning catalysts, and work-basedlearning through agency supervisors as coaches and mentors.

The PRUExpert manager series is designed to continuously
and systematically develop future leaders who are committed
to building and growing their agencies. We want to enable
managers to increase the quality and quantity of talent recruitment
and equip them to improve the onboarding process, time toactivation and retention rate. This series provides guidance on theactivities, skills and knowledge required for them to manage theirteams and ultimately build their own agencies.

In Indonesia, AG Directors conducted two series of training in
2023, to build capabilities of the local agency management team.
These sessions provided agency executives with the latest
knowledge and techniques for managing their daily tasks more
effectively. AG Directors also collaborated with the local teamas part of the ‘agency acceleration’ workstreams, a series ofprogrammes aimed at driving workforce transformation to enableagency teams to adapt to the evolving business landscape.

Our approach is intentionally crafted to follow a more vocationalmodel. We develop our people as deliberate and reflective
practitioners, building their proficiency in their role.

In Malaysia, Project Catalyst was established to focus on agency
sales and performance management. AG Directors collaborated
closely with the Chief Agency Officer on activation, recruitment
and a leadership development strategy for both insurance andTakaful distribution.
In both projects, senior members of the team were also involved
in regular steering committee meetings to provide feedback
and ensure the effectiveness of initiatives.

We have created tailored-to-role programming for three key roles– agents, managers and leaders – with clear core programmes
and needs-based interventions.

PRUExpert induction programme for agents
The third iteration, launched in 2023, of our PRUExpert induction
programme focuses on training our new agents in the basic
foundations of our sales advisory process, with chapters dedicatedto addressing customer needs and applying product knowledge.
As they embark on their new career with Prudential, they should
feel supported, empowered and equipped so that they can hit the
ground running and influence, guide and provide professional andsound financial advice for our customers. This helps new agentsbuild a sustainable pipeline that empowers them to achieve one
case in 30 days, three cases in 60 days and five cases in 90 days,
setting them up to achieve eight cases per month thereafter andputting them on track to achieve MDRT membership within theirfirst year.

Though the series’ focus is on managers, its benefits
extend beyond that. Our agency leaders will be able
to nurture successors who can expand theirbusinesses and ensure sustainability and highquality of management in their agencies.
For agents reporting to the managers,
we ensure competent leaders support
the agents, creating role models.
As well as this, the series provides
a structured development planfor career progression.

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In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

Prudential plc

Sustainability Report 2023

57

Sustainable Business continued

a. Digital responsibility

Our priority

Our new business strategy underscores the critical role oftechnology as a key enabler for all three strategic pillars: enhancing
customer experiences, powering our distribution with technology
and transforming the health business model. We are revamping
our technology platform, growing our data platform and using AI
to generate commercial value.

Establishing sustainable
operations and value chain
a. Digital responsibilityGroup information security and privacy framework
Oversight and governance of information security
Group Information Security Policy
Cyber strategy and risk management
Cyber Security Awareness Month 2023
Security metrics
Privacy

57
57
57
57
57
58
58
59

b. Artificial intelligence
AI governance

60
60

c. Responsible procurement practices
Supply chain onboarding

61
62

d. Responsible environmental practices
Emissions reporting
Driving reductions in our operational energy
consumption

63
63

e. Responsible working practices and health andsafety procedures
Our approach to health and safety
Health and safety initiatives in 2023

64
64
64
64

Group information security and privacy framework
We increasingly depend on technology when delivering our businessobjectives. The ever-growing threat landscape, and evolution oftechnology such as generative AI, makes it imperative that weenhance information security and manage privacy risks effectively.
The Group Information Security and Privacy team operates bydrawing on skillsets, knowledge, experience and resources acrossour global footprint. This enables us to ensure our security defences
and responses across Asia, Africa and the UK are as good as they
can be. We are committed to protecting our customers’ dataand privacy through our information security and privacy
management framework.
In 2023, we focused on uplifting the security and privacy control
environment while reducing risks based on the threat landscape.
As part of the optimised model, we integrated new threat
intelligence into our monitoring tool, increased supply chain
monitoring and expanded internal penetration test capabilities.
In light of the increased regulatory interest in AI, we formed the
AI Working Group (AIWG) in 2023, to replace the Global AI Council
and provide guidance and approval for all AI-related projects. It is
one of the working groups that reports into the Data and AI
Governance Council (DAGC). The Global Security and Privacy team,as part of AIWG, acts as a gatekeeper to ensure that thoroughsecurity and privacy guidance are guaranteed during the adoptionof digital technology, encouraging the responsible use of Generative
AI and similar digital solutions.
According to a report from Zscaler, ransomware attacks witnesseda staggering 37 per cent increase from April 2022 to April 20231.
This is the Group’s top cyber-security risk and the most widespreadcyber threat for financial institutions. During the year, we ran aglobal cyber-security incident simulation across all local businesses
to drive enhanced cyber resilience and preparedness.
1. www.info.zscaler.com/resources-industry-reports-2023-threatlabz-ransomware-report

Oversight and governance of information security
Group Executive Risk Committee (GERC)Group Technology Risk Committee(GTRC)The GTRC continued to provide strong risk
governance over cyber security and privacy
issues this year. The GTRC provides regular
updates on cyber threats facing theorganisation and progress of our security
programme to GERC and the Board-level
Risk Committee

Group Chief Technology Officer
Holds dedicated sessions, if required,with the Risk Committee and Audit Committee
on cyber risks facing the business

The Group Chief Technology Officer also holds dedicatedsessions, if required, with the Risk Committee and Audit
Committee on cyber risks facing the business. On top of this,the Group Technology Risk Management (GTRM) team andGroup-wide Internal Audit (GwIA) provide second- andthird-line assurance over the robustness of information
security and privacy controls across the Group.

Group Information Security Policy
The Group Information Security (IS) Policy is central to how wegovern and manage information security. All relevant businesses
within Prudential are covered by the IS Policy, which is developedwith reference to numerous international and local standards
including:– ISO 27002;– NIST Cyber Security Framework;– The Hong Kong Insurance Authority Guideline on Cybersecurity;– The Monetary Authority of Singapore’s Guidelines on Technology
Risk Management; and– The Bank Negara Malaysia Risk Management in Technology
Policy Document.
The policy is also supported by a set of technical standards toenable consistent implementation. Our global security function
retains its comprehensive commitment to protecting the business,complying with all applicable laws and regulations, and supporting
the growth of the Group.
As we transition to a hybrid multi-cloud environment, we areinvesting in the adoption of Google Cloud Platform (GCP) services
to complement our existing Microsoft Azure services. We are also
developing further technical standards and conducting an extensivearchitectural review as part of our integration of GCP-based security
services. This has, in part, led to a positive outcome from a recent
GCP security audit conducted by GwIA.

Cyber strategy and risk management
Our global information security programme was further enhanced
in 2023, to strengthen cyber defence and enable an increased paceof digitalisation in the business. Our crisis incident management
capability and readiness has been improved by expanding the cyberdrill programme with simulated scenarios for local businesses, secured
adoption of Google Cloud, and a focus on key risk areas such as ourbusinesses in Africa. Cyber insurance coverage is in place as a
response for catastrophic cyber events.

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Sustainable Business continued

Cyber Security Awareness Month 2023
October’s Cyber Security Awareness month saw the launch of
weekly cyber security awareness content and best practice articles
online around strategic themes such as cloud and internet security,
data handling and Generative AI, along with quizzes to test staff
awareness of the topic.

Security metrics
Cyber security incidents
Total number of incidents
escalated‡ to the Security
incident response team (SIRT)
Number of incidents confirmed^by the SIRT
Number of incidents related toransomware

2023

2022

40

39

3

12

1

2

‡ Total incidents reported by employees to the Security Operations Centre.
^ Total incidents confirmed by the Security Operations Centre.

While the total number of incidents fluctuates year on year, thenumber of incidents that are confirmed has continued to decline,
falling to only three confirmed incidents for 2023. However, it has
been observed that global cyberattacks have become more advanced
and sophisticated (eg the MOVEit data breach). As such, we
continue to uplift Prudential’s security controls and capabilities
to combat these increasingly complex attacks.

The top three data breaches were related to the unauthorised
disclosure of personal data by staff, unauthorised telemarketingby financial consultants, and data breaches originating from bankpartners or vendors. One data breach incident involved healthinformation that affected customers and employees.
Compared to 2022, the total number of data breaches andbreaches involving sensitive personal information did not
significantly change. However, the total number of customers
and employees affected by the Company’s data breaches has
significantly increased, due solely to two major incidents in thenotes. Both were caused by vendors and are part of the recognised
supply chain risk that continues to be a priority area for improving
security and privacy controls.
The privacy controls put in place within Prudential continue tobe effective, but further enhancement in terms of managing
employees and vendors is a key initiative for 2024. Regular internaland external privacy and security audits are carried out as and whenneeded, and we work closely with regulators to ensure this works
effectively. We conduct monthly scanning of our external
environment for vulnerabilities, and all public-facing applications
undergo penetration testing, including vulnerability assessments
as part of the application launch. They are also regularly reviewed
as part of our governance process.

Data privacy breach metrics
Total number of (privacy) data
breaches
Total number of (privacy) data
breaches involving healthinformation
Total number of customers andemployees affected byCompany’s data breaches
Total number of customers andemployees affected byCompany’s data breaches
involving health information

2023

2022

22

20

2

1

2,087,219‡

24,250391

1‡ This significant increase is attributed to two specific incidents: a) MOVEit
software data breach publicly disclosed in June 2023, resulting in 2,023,314
records affected by Malaysia’s life entity; and b) 59,000 records affected in an
incident where a vendor sent information belonging to one Prudential businessto another Prudential business.

Reference tables

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In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

Sustainable Business continued

Privacy
As a business with a large global footprint, Prudential must navigate
a number of different privacy laws. Our Group Privacy Policy sets out
the standard of privacy expected to be achieved across our businesses
to ensure that we handle personal data in compliance with regulatory
requirements and in line with customer and employee expectations,while meeting the demands of a competitive commercialorganisation. For more information on our data and privacy policy,
please visit our company website www.prudentialplc.com/en/
investors/governance-and-policies/policies-and-statements
The information we generate through technological solutions suchas Generative AI allows us to engage more effectively withcustomers, while keeping their personal data safe and freefrom unauthorised access.
We continue to maintain strong privacy governance, and our personal
data processing activities are conducted within lawful bases.
Privacy impact assessments are also conducted by relevantbusinesses on their processing activities, including the deploymentof any new or enhanced technologies and practices affecting
personal data. The Group Information Security and Privacy teamhas created guidelines to support the future adoption of Generative
AI. It is also critical that, as an organisation, we embrace and adopt
privacy-enhancing technologies (PETs) to enable greater data
analytics to improve our insights, leads and products.
As a global corporation, Prudential must navigate multiple privacy
laws and deal with ongoing processes for emerging regulations or
enhancements to existing regulations:– In April 2023, Vietnam published new privacy regulations (Decree
No. 13/2023/ND) which became effective in July, with certain
remediations to be completed by 31 August 2023. It is worth
noting the incredibly brief time given to comply.
– The Nigeria Data Protection Act 2023 was enacted in June
and took effect immediately.
– In October 2022, the Indonesia Personal Data Protection Act
was enacted to take effect from October 2024. While the India
Digital Personal Data Protection Act was agreed in August 2023
to take effect from June 2024.
– Taiwan revised its privacy law to create a privacy regulator,
with an enhanced financial penalty.
– China passed the Interim Measures to Regulate Generative AI
Services, covering the use of personal information.
– Other jurisdictions such as South Korea and the European Union
are also presenting their draft bills for consideration.
– Singapore chose to embrace AI with its Model AI Governance
Framework (stating that high-level principles of AI-assisted
decision-making should be explainable, transparent and fair,and AI systems should be human-centric and safe) and AI Verify
initiative (providing ‘a self-testing toolkit to demonstrate
responsible deployment of AI’) promoted by the Infocomm
Media Development Authority. Both are being considered by the
Prudential AI Team.
The influx of new laws makes it even more important that our
privacy systems, policies, processes and controls, and personal
data processing activities respect these new or enhanced legal
requirements. A key focus in 2023 was to further embed privacy
across the Group: training to increase competency, conducting
privacy gaps remediation and enhancing privacy processes.

ChatGPT dos and don’ts were explored in a Digital Town Hall,and annual privacy computer-based training rolled out to all staff
members to raise their privacy awareness and the protectionof our customers’, agents’ and employees’ personal information.
Privacy tabletop drills and specialised training focusing on the latest
regulations and trends has been provided by external law firms to
all Data Privacy Managers.
The Group Privacy Office continues to have oversight of privacy
compliance through implementation of the Group-wide Operational
Standard, which sits within the Group Privacy Policy; and regularly
reports to the Group Executive Risk Committee on privacy
compliance. The Group Head of Privacy is also involved with theTechnology Architecture Working Group and AI & Data GovernanceCouncil to ensure privacy issues are addressed early and effectively.
The Group Privacy Office works closely with privacy officers acrossAsia and Africa to offer guidance on ongoing privacy compliance,
as well as providing a point of escalation for resolving data privacy
issues.
Monthly privacy roundtables with all privacy teams across different
entities in the Group are held to ensure sufficient supervision on
the local entities and share privacy knowledge and updates acrossthe Group. In 2023, a new data incident platform to report privacy
incidents, together with a new standard operating procedure, wasintroduced to enhance the timeliness of the reporting and incident
management capabilities across the Group. Standard operatingprocedure has also been implemented for privacy impact assessment
to ensure consistency and quality of the assessment throughout LBUs.

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In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

Prudential plc

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60

Sustainable Business continued

b. Artificial intelligence
As the field of artificial intelligence (AI) continues to evolve andexpand, we are committed to ensuring that our machine learning
solutions are designed, developed and deployed in a responsible,
trustworthy and ethical manner. This is so we can maximise thepotential of AI to transform the way we live and work, and how ourcustomers interact with us. The possible applications and benefitsof AI are immense. As we continue to adopt AI, machine learningand other related technologies in our business, we are hopeful that
this new understanding can help drive better decision-making,unlock competitive advantage, increase efficiency and improvedelivery of our services.

AI governance
Prudential’s eight AI ethics principles continue to guide our actions
and decisions regarding the use of AI. This year, we have updated
them to address the specific challenges and opportunities posedby Generative AI, a branch of AI that can create content such as
text, images, audio and video. We have developed a set of guidelines
for using Generative AI in a way that respects human dignity, values
and rights.
Central to our AI governance process are rigorous assessments of
our own and third-party AI solutions against our AI ethics principles,
as well as financial and non-financial risks. Models are evaluated toensure that they are suitable for their intended purposes, deliver
value to our business and customers, handle the data and insightsfrom the models securely and sensitively and have safeguards inplace to prevent misuse.
Our ambition is to incorporate AI ethics into the essence of all
our solutions from conception to post deployment. We have runawareness sessions and communicated across the region during2023 about responsible AI, a process that is continuing.

Our eight AI ethics principles
Value
Design Al with a clearly defined purpose, and alignedwith customer values

Transparency and explainability

Case studies

Be transparent that Al is used as part of our products
and services, explain this simply and be prepared tojustify decisions madeFairness
Treat people fairly, avoiding bias and unfair
discrimination

Accountability and responsibility
Accept accountability and responsibility transparently
for the outcome of the use of Al

Compliance
Comply and respect relevant regulations, including
human rights laws

Reliability
Design Al that is highly reliable and robust

Privacy and security
Respect user privacy and security

Using Generative AI to improve customer
service support
A significant use case for Generative AI in the business is insupporting our call centre customer service staff, allowing themto quickly search and extract information from any Prudential
document to answer customer queries. This has reduced theaverage customer enquiry information search time from four
minutes to 30 seconds and cut customer waiting time by up
to 75 per cent.

Microsoft Copilot
We are currently trialling Microsoft Copilot, which combines
the power of large language models (LLMs) with data in theMicrosoft Graph and the Microsoft 365 apps to turn words into
powerful productivity tools. Our aim with the trial is to help our
people change the way they fundamentally work by saving timeand energy, eliminating low-value tasks, and generating
innovative ideas.

Microsoft Copilot with Bing (previously known as
Bing Chat Enterprise)
We have recently enabled Microsoft Copilot with Bing across thebusiness, allowing colleagues to optimise the latest Generative AI
technology to enhance personal and team productivity. We
have also published guidelines for employees around the useof Generative AI, including safe and responsible usage witha human in the loop (HITL).

AssuranceContinuously review and monitor our Al deployment
and outcomes to continually meet all principles

With increasing demand for Generative AI solutions to transform our business processes and deliver superior customer service, we havedeveloped Prudential’s Generative AI reference architecture, which includes components and controls, including to protect personal dataand prevent hallucinations.

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

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Sustainable Business continued

c. Responsible procurement
practices
Our Group Third Party Supply and Outsourcing (GTPSO) Policy forms
part of our Group Governance Manual (GGM) and is a core part ofour system of governance. The policy sets out our position on supply
chain management, outlining our approach to due diligence, selection
criteria, contractual requirements and ongoing monitoring of our
supplier relationships. Implementing this policy will help us meetboth the expectations of our stakeholders and our legal and regulatory
requirements. The GTPSO Policy ensures all third parties go througha consistent onboarding process and are subject to standardisedmonitoring and oversight activities.
In 2023, we further enhanced our existing GTPSO Policy to drivecompliance to use our procurement and third-party risk management
system, Coupa, to ensure that the Group’s Third Party Risk
Management (TPRM) framework is consistently applied. The
policy was further additionally enhanced by introducing an
updated third-party risk assessment methodology that is clearer
in identifying elevated third-party risks, strengthens risk monitoring
and remediation processes, emphasises market tendering
requirements and further clarifies the roles and responsibilities ofbusiness contract owners across the company. These enhancements
are designed to strengthen third-party risk identification, mitigationand monitoring controls, and increase procurement integrity
requirements. Ultimately, this will lead to more sustainable supplierselections for the Group. The new changes to the GTPSO Policy tookeffect on 1 January 2024.
All our material and outsourcing suppliers are subject to annual
and quarterly performance reviews, ongoing risk assessments
and compliance attestation activities.
Our third-party management processes are overseen by theThird Party & Outsourcing Working Group (TPOW), and onward
by the Group Executive Risk Committee (GERC) and GEC.

Sustainability is embedded in Prudential’s TPRM framework.
Profiling and identifying material and outsourcing arrangements,
and identifying and mitigating third-party risks, helps support therealisation of sustainable outcomes with the suppliers Prudential
engages with.
The GTPSO Policy also includes responsible supplier guidelines which
outline additional considerations for a supplier’s environmental,social and governance practices, in addition to the existing supplierqualification requirements tied to their capabilities, competitivenessand assessment of third-party risks. We apply these additionalguidelines to suppliers that are material to the Group, or that
operate in industries where base-skilled labour is often employed,
including cleaning services, catering, security services and low-cost
manufacturing. It is also applied in geographies affected by conflicts,
countries with a weak rule of law and countries with a high numberof migrant workers. Our responsible supplier guidelines alsoemphasise a commitment to ensuring that slavery, humantrafficking and child labour, or any other abuse of human rights,
has no place in our organisation or supply chain. Our businesses
conduct due diligence before engaging with and ultimately selecting
a new supplier. We carry out regular due diligence, review meetings
and audits where required, and our policies and procedures aresupported by regular employee training exercises. All our employees
must complete annual mandatory training around the Group’s
regulatory and legal obligations.
Our stringent supplier onboarding measures start with the vendor
selection process. There are many controls in place across ourbusiness, including rigorous due diligence checks, third-party contract
evaluation and post-onboarding monitoring activities. Our selection
processes are commensurate with financial and third-party riskmateriality, and where appropriate take into account a supplier’s
track record in delivering goods and services to a high standard andthey must demonstrate stable financial performance. We also
assess suppliers’ data security control procedures to make sure they
have proper data privacy and personal data security protection
controls in place.

To ensure our suppliers are aligned with our sustainability strategy,
we use Coupa to aim ESG-related questions at suppliers thatprovide services in high-risk labour categories or that are material
to our business. To assess and manage compliance across all ourmarkets, we require all suppliers to undergo due diligence activities,
which include human trafficking, anti-money laundering andanti-bribery and corruption checks. Lastly, we encourage our
employees, contractors and third-party suppliers to raise any
concerns around our vendor relationship through our Speak Out
whistleblowing platform.

As a Group, we have recognised the need to develop a clearer
modern slavery risk mitigation and remediation approach, and inparticular the governance and processes to follow when a modern
slavery-related risk or issue is identified with a supplier. To assess
how effective our engagement methods are at identifying
instances of modern slavery, we are reviewing how we document
our modern slavery approach effectiveness in early 2024, as partof our updated 2023 Modern Slavery Statement.
Please refer to the section on Good governance and responsible
business practices for more information.

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

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Sustainable Business continued

Supply chain onboarding

Monitoring
Incidents reported
Whistleblowing to
our Speak Out line

Contracting
Supplier
contractually
obliged to meet
ESG standard

Due diligence

Issue ESG questions
to supplier via
Coupa Risk Assess

Selection
Reviewmarketplace
options for
reputable
suppliers
Seek supplier
for a newrequirement
or contract
renewalIssue RFP
and consider
environmental
impacts

Adverse answers orconcerns escalated
to Sustainability
team for review and‘go’ or ‘stop’
decisionsDue diligenceon stability, tax,
privacy, IT security
and businessresilience asneededAdverse publicity
Negative news
(via Fiserv system)In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

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Sustainable Business continued

Our responsible supplier guidelines provide further detail of our expectations:
Theme

Summary of responsible supplier guidelines

Environmental

Given the planet’s finite resources, Prudential encourages our suppliers to build sustainable businesses. They
should have sound environmental management principles in place, and be working towards reducing negative
external impacts on the environment where they operate.
In our assessment check, we review suppliers for:– Written environmental and/or sustainability policies and governance systems in place that are appropriate
to the size and nature of their operations; and– Compliance with relevant laws and legislation.

SocialIn line with Prudential’s values and standards, we expect suppliers to respect the human rights of their employees.
They must comply with all relevant legislation, regulations and directives in the countries and communities where
they operate.
In the United Kingdom, our suppliers must pay their employees the London or United Kingdom Living Wage,as set by the Greater London Authority and the Centre for Research in Social Policy respectively.
Key requirements include:– Prohibition of forced and child labour practices;– Paying legally mandated minimum wages and/or industry standards;– Prohibition of any form of discrimination, harassment, bullying and other types of misconduct;– Providing safe working environments and abiding by local laws and regulations;– Support fair trade and ethical sourcing practices; and– Promote diversity and inclusion within their operations.

GovernanceWe expect our regular suppliers to have good ethical and management governance processes in place to comply
with our responsible supplier guidelines. Suppliers must make reasonable efforts to monitor their supply chain
and make their own suppliers aware of, and compliant with, the aims of our guidelines.

d. Responsible environmental
practicesManaging our direct operational environmental impacts
To help improve the lives of our customers and communities, we
actively seek to reduce our environmental impact. We measure ourenvironmental performance so that we can understand our impact
and take appropriate actions.
Our approach to, and management of, our property footprint aligns
with our Group Environment Policy which covers environmental laws
and regulations with respect to emissions, energy consumption,water use, waste disposal, environmental supply chain management
and the application of risk management principles for all propertyrelated matters.

Emissions reporting
Our 2023 reporting covers the period 1 October 2022 to
30 September 2023, and includes our global property portfolio,
which spans Asia, Africa, and the United Kingdom. The first threemonths of this reporting period still reflect some limited ongoing
impacts of the Covid-19 pandemic, although all offices returned tobusiness as usual working practices from Q2 (January–March 2023).

Our global absolute Scope 1 and 2 (market-based) GHG emissions
were 14,426 tCO2e, down 22 per cent from 2022, primarily driven
through the benefit of green power and renewable energy
procurement. Electricity use in our buildings is the largest contributor
to our operational footprint at 12,318 tCO2e (market based),
making up 85 per cent of our total Scope 1 and 2 emissions.
Scope 3 emissions increased by 52 per cent, with more businesstravel contributing 12,414 tCO2e and accounting for most of theincrease as many locations returned to business-as-usual travel.
Although this is higher year-on-year compared with 2022, it is still
significantly lower than pre-Covid levels. However, as businesses
continue to return to normal and air travel increases, we will closely
monitor our emissions associated with air travel, and ensure thatenvironmental sustainability considerations are properly factored inbusiness travel needs and planning.
As part of our initiative to improve our management and reportingof business travel, we appointed a single travel service provider tosupport the UK and Africa offices. Data gaps remain across someof our Scope 3 categories, and as data accuracy and calculation
methodologies continue to evolve, we will align with best practices
to broaden our Scope 3 reporting where possible.

A consolidation of our property portfolio continued in 2023, witha 3.2 per cent reduction in floor space. It is important to note thatour premises portfolio will change with our business operations.
We have included full reporting for Scope 1 and 2 and selected
Scope 3 reporting. Our Scope 1 emissions remain a small percentage
of our overall operational emissions. However, there was a
year-on-year increase of 28 per cent in Scope 1 emissions related
to increased company car use. In 2023, we have added an electricvehicle (EV) in Korea, a hybrid vehicle in Thailand, and we continue
to assess the feasibility of increasing the EV and hybrid fleet as partof fleet renewal strategies.

Our Scope 1 and 2 (market-based)
GHG emissions fell by

22%
when
compared
to 2022

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

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Sustainable Business continued

Breakdown of GHG emissions (tCO2e)
2023

2022

% change

Direct Scope 1
Direct Scope 2 (market based)
Direct Scope 2 (location based)
Scope 3 (upstream activities)

2,108*
12,318*18,334*
14,462*

1,645
16,93819,880
9,487

28%
(27%)
(8%)
52%

Total: Scope 1 and 2 using market based
Total: Scope 1, 2 and 3 (upstream) using market based

14,426*28,88818,58328,096(22%)
3%

Tonnes per employee – Scope 1 and 2
kg per m2 – Scope 1 and 2
kg per m2 – Scope 1, 2 and 3 (upstream)

0.95
43.30*
86.70*

1.21
54.01
81.59

(22%)
(20%)
6%

* Within the scope of EY assurance – for further information, see the Basis of Reporting,which notes those Scope 3 categories that were within the scope of EY assurance

Driving reductions in our operational energy
consumption
We continue to focus on driving down our operational energy
consumption to reduce emissions through a range of initiatives
and policies. When creating new working environments, we takethe opportunity to implement best practice environmental
performance features from the outset. These include LED lighting,automated lighting controls, lighting zones and climate controls.
To date, we have completed energy audits and assessments at
30 sites across our Asia Pacific portfolio. These assessments
identified 169 potential energy conservation measures that coulddeliver estimated savings of 5,700 MWh/3, 172 tCO2e, along withestimated cost savings of US$1 million. Additional energy audits
were carried out in Thailand and Taiwan in 2023.
During 2023, all our local business units were issued with updated
environmental roadmaps detailing their Scope 1 and 2 emissions,
their 2030 target, and the actions that businesses have committed
to over the next three years to reduce their emissions.

Providing excess office furniture with a new life
Our Hong Kong life business unit conducted several office
refurbishments in 2023 across the portfolio. Much of theoffice furniture and many of the computer monitors that wereno longer needed were given to colleagues who were creatinghome office spaces as part of the move to hybrid working.
With obsolete equipment that could not be reused sent to athird party for reprocessing, this recycling of furniture under
the principles of a circular economy helped us avoid
generating nearly 70 tCO2-e of waste to landfill. The carbon
savings were the equivalent of planting 2,660 trees or
reducing road travel in an average petrol passenger vehicle
by 288,000km.

We have procured green power and renewable energy in the United
Kingdom, Hong Kong and Malaysia through green procurement
strategies including Energy Tariffs and International Renewable
Energy Certificates (I-RECs) programmes.

e. Responsible working practices
and health and safety procedures

We continue to face two key challenges in procuring renewableenergy. Most of the markets where we operate do not currently
offer direct renewable energy procurement, and as we are often
a short-term tenant in the buildings where we operate, we have
limited opportunities to install on-site generation capabilities.

Through our Group Resilience Policy and Health & Safety Standards,
we operate a holistic, risk-driven health and safety management
process that seeks to ensure the best working environment for ourpeople in all business units. We prioritise the prevention of injury
and ill health, and the reduction of health and safety risks toemployees, contractors, visitors and any others who may beaffected by our business operations.

Improving our data collection programme remains a priority, andwe have seen data quality and completeness improve significantly.
For more details, please view our 2023 Basis of Reporting file.
Once again, we incurred no fines or regulatory actions forenvironmental incidents during the year.

Our approach to health and safety

We aim to ensure that our health and safety management
processes meet and exceed regulatory and statutory requirements,
follow best practice where possible, and are integral to the way inwhich we manage our business operations.
The Group Resilience Policy and its health and safety standards
provide a framework for our local businesses to establish, implement

and maintain comprehensive health and safety measures thatprevent work-related physical injury and mental illness. The Group
Chief Security Officer has overall responsibility for the Group healthand safety programme, which is coordinated by the Group Security& Resilience team. Health and safety representatives in our local
businesses are responsible for implementing and managing the
programme and measures daily, and for reporting progress inquarterly management information reports and annual attestations.
The Group Security & Resilience team is assigned day-to-day
operational management responsibilities for the Group Resilience
Policy, consolidates the data from local businesses and reports its
findings to the Group Chief Security Officer, cross-functional
working groups and, ultimately, the Risk Committee.
Our policy and standards are aligned with ISO 45001:2018
occupational health and safety, ensuring:– A risk-based approach to health and safety management;– Compliance with current legislation where we operate worldwide;– That significant health and safety risks are identified, assessedand controlled; and– That our programmes adapt, improve and tackle changing
and emerging workplace health and safety risks and contexts.
These measures seek to continually improve our reputation asa safe place to work, raise employee morale and help us meet
our strategic and business objectives.

Health and safety initiatives in 2023
We continued to create a supportive, inclusive and conducive work
environment to foster health, safety and wellbeing at work. For
more information on this, please read the Empowering our people
section under Sustainable Business.
We have also added neurodiversity as a new risk on the Group
Health and Safety Risk Register, recognising that colleagues cansuffer psychosocial, mental, physical or neurological related
diversity, injury or ill-health at work.

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

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Sustainable Business continued

Our priority

We are actively involved in advocating for emerging market
sustainability and climate-related concerns on a global level. Our
advocacy efforts extend beyond exploring the role that investors
can play in a just and inclusive transition in Asia and Africa. We also
engage with policy and regulatory stakeholders to promote awarenessof sustainability issues and to understand government andregulatory priorities and the role we can serve. Our outreach has
focused on regulatory development, blended finance, alignmentof standards and taxonomies, and nature preservation.

a. International Association of Insurance
Supervisors (IAIS)
b. Institute of International Finance (IIF)
c. Net Zero Asset Owner Alliance (NZAOA)
d. Emerging Markets Transition Investment (EMTI)
e. Insurance Development Forum (IDF)
f. World Bank Private Sector Investment Lab
g. Nairobi Declaration on Sustainable
Insurance (NDSI)
h. At major events and summits
i. Advocacy within a local context

a. International Association of Insurance
Supervisors (IAIS)

Harnessing thought
leadership to shape the agenda

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Throughout 2023, we engaged with the IAIS on climate-relatedrisks, including taking part in a series of closed virtual meetings.
Alongside other insurance industry peers, we met with the Chairof the IAIS Executive Committee, Shigeru Ariizumi, to discuss
financial inclusion and protection gaps, and explore ways in which
the industry could support the work of the IAIS on these topics.
We also provided input on an upcoming consultation on the IAIS
Application Paper on climate scenario analysis, and attended a
stakeholder engagement event to discuss climate-related disclosure
practices for insurers. Looking ahead to 2024, we have the opportunity
to contribute to two more consultations on climate-related issues,
including one on market conduct regarding greenwashing.

b. Institute of International Finance (IIF)
During 2023, Prudential was the co-chair of the IIF Asia-Pacific
Subgroup, with an agenda focusing on digital developments andclimate-related risks in Asia markets. Through our participationin the IIF, we contributed to a range of consultation responses,
including part one of the IAIS Climate-risk Guidance. We
participated in various advocacy activities of the IIF Sustainable
Finance Expert Group, including the MAS Transition Planning
Consultation and the NGFS Roundtable. We also participatedin IIF’s annual Sustainability Summit and spoke about the roleof insurers in financing a just transition in Asia through a co-hosted
seminar during the Asian Development Bank’s annual meeting.

c. Net Zero Asset Owner Alliance (NZAOA)
Since 2021, Prudential has been a key supporter and member of
the United Nations-convened Net Zero Asset Owner Alliance, whose
members have committed to transitioning investment portfolios
to net zero greenhouse gas emissions by 2050, consistent with amaximum temperature rise of 1.5˚C above pre-industrial levels;
establishing intermediate targets; and to regularly reportingon progress.
During COP28, Prudential’s Chair Shriti Vadera took part in a
discussion organised by the UN and the NZAOA, and a roundtablewith the Financial Stability Board and other regulators on transition
planning and transition finance.

d. Emerging Markets Transition Investment (EMTI)
As part of our involvement with the NZAOA, Prudential initiatedand leads a sub-track on ‘Financing the Transition in Emerging
Markets’, which includes the EMTI project as a key component.
The EMTI project was organised to identify practical,
near-term solutions to accelerate investment in the
net zero transition of emerging markets. This year,
the EMTI released its second whitepaper in its‘Code Red’ series. The whitepaper focuses
on responsible corporate engagement
in emerging markets, and presents fiveguiding principles on effective
engagement for financial market
participants and financial regulatorsthat are supplemented by practical
recommendations for implementation.

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Sustainable Business continued

e. Insurance Development Forum (IDF)
During 2023, through our membership of the IDF, we engaged withsenior representatives from the UN, UNDP, World Bank, UNICEF,
OECD, government authorities and the insurance industry on theintersection between climate risk and social inclusion for growth.

f. World Bank Private Sector Investment Lab
Since its launch in mid-2023, Prudential’s Chair, Shriti Vadera,
has co-chaired the World Bank’s Private Sector Investment Lab
alongside Mark Carney, Co-Chair of GFANZ. The Lab’s focus is on
developing and rapidly scaling solutions that address the barriers to
private sector investment for climate and development in emerging
markets. At the COP28 in December, the Lab’s focus on practicalways to mobilise private finance at scale and speed to support
climate action and economic development in emerging anddeveloping markets was discussed.

g. Nairobi Declaration on Sustainable
Insurance (NDSI)In 2023, Prudential became an NDSI signatory, joining morethan 150 other signatories (including African insurers, reinsurers,
and local regulators) to support the implementation of the UN
Sustainable Development Goals. NDSI has highlighted climate
challenges and sustainable insurance awareness-building as key
priorities. Prudential has participated in working groups on numerous
relevant activities, including sustainability reporting, taxonomy andframework construction, and communication and advocacy
activities. We intend to continue our collaborative industry
involvement and knowledge sharing going forward.

h. At major events and summits
Our senior leaders and Directors also take part in key events thatare shaping the global conversation on climate-related issues.
Examples include:– In May 2023, we participated in the Net Zero Delivery Summit
held in London and contributed to a panel discussion on the bestpractice and illustrative case studies of channelling green financeto emerging markets for a fair transition, together with leadersfrom Vietnam and a number of African markets.

– At the Windsor Climate Finance Mobilisation Forum in July 2023,
hosted by the US and UK governments, we discussed alongsideother international investors the barriers and opportunities, andthe role of the public-private finance models to mobilise private
finance at scale for climate and development.
– During New York Climate Week 2023, we focused our advocacy
on the incentives and barriers to mobilising capital for transitionin emerging markets, and on our lessons and experiences fromour work developing and publishing our 2023 Climate Transition
Plan. Shriti Vadera, Prudential’s chair, highlighted the essential
role of data to understand the effectiveness of our climaterelated initiatives.

i. Advocacy within a local context
As an Insurance Corporate Partner with the European Chamberof Commerce of the Philippines’ Special Committee on OpenFinance and Financial Inclusion, we convened an industry dialogue
in November 2023, on climate health and financial risks withinsurance and financial regulators in the Philippines.
We partnered with the Climate Bonds Initiative (CBI) and the British
Chamber of Commerce in Vietnam to organise the Thematic Bonds
and Transition Investment Workshop in July 2023. The workshop
explored the growing thematic bond market in Vietnam and how
financing mechanisms like these can mobilise private capital tofund the transition to net zero by 2050.
At COP28, Prudential also participated in a meeting with
the Vietnamese Energy Minister on the Just Energy Transition
Partnership (JETP), as well as attended discussions around transition
finance, and health and climate.

It’s about data.
Data onemissions for
emerging markets
and companies in emerging
markets. Otherwise, we don’t know
if we’re pricing risk correctly and we
don’t know if we’re actually financing
the transition without this data.”
Shriti Vadera, Chair of Prudential plc

We strive to continuously improve customer and distribution
interactions, via responsible technology usage. During the 2023
Singapore FinTech Festival (SFF), CEOs of Prudential Group,
Prudential Singapore, and Eastspring Investments engaged
Singapore regulators in support of a regulatory framework
to ensure the safety of customer data. This discussion comesat a crucial time, since technology can enable more convenientand seamless customer journeys, such as using data analytics todrive personalised insights, without sacrificing information security.

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Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Sustainable Business continued

Understanding the link between
climate and health

Human health is significantly impacted by climate change,
particularly by air pollutants and increasing temperatures. We
want to help people around the world prepare for such changes
and better protect their health and livelihoods.
In 2022, we initiated a two-year research partnership with the
Earth Observatory of Singapore (EOS) at Nanyang Technological
University (NTU) in Singapore. The Prudential EOS Climate
Impacts Initiative aims to explore the intersection of climatechange and health in 10 key markets across Asia and Africa:
Singapore, Hong Kong, Indonesia, Malaysia, the Philippines,
Thailand, Vietnam, Côte d’Ivoire, Nigeria and Kenya. The firstphase of the two-part project involves examining historical dataon air quality and health impacts in these countries and cities
over the past two decades.
In October 2023, NTU shared interim findings with a wide groupof Prudential colleagues who discussed the potential implicationsof air quality on how we offer our health products and services.
The findings, which showed that worsening air quality is
associated with health risks, were also shared publicly withexternal stakeholders at media events.
The second phase of the partnership will focus on projecting
future air quality and its impact on health, considering various
emissions scenarios such as SSP370 and SSP585. We plan to use
the findings and outcomes of the research to generate ideas
and assess market opportunities for investments and products
centred around climate resilience.

In addition, through the Prudence Foundation, Prudential
provided funding for research conducted by the International
Federation of the Red Cross (IFRC)’s Climate Centre. This
research investigated the combined health risks posed by heat,humidity, and air pollution, and identified effective earlyinterventions for mitigating these risks.
The findings were published in November 2023, which you canread here www.prudentialplc.com/en/news-and-insights/
insights/climate-change-impact-on-human-health With support
from the Prudence Foundation, the IFRC will use this research todevelop an early action protocol for the compound risk ofhumidity, heat and air pollution in Thailand in 2024.

In 2022, we initiated a

two-year research
partnershipwith the Earth Observatory of Singapore (EOS)at Nanyang Technological University (NTU)
in Singapore

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Managing climate-related risks and opportunities

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Good

governanceGood governance
Combatting modern slavery
Responsible tax strategy and practices
Fighting financial crime

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Good governance and responsible business practices continued

Corporate governanceOur business is overseen by strong governance structures, from our
Board of Directors at the highest level and throughout our Groupto our local business management structures. At all levels of theCompany, we recognise that managing our business responsiblyis paramount, and we ensure that our people are clear about thestandards of behaviour we expect and how these inform their work.
We have clear policies and systems in place to ensure high standards
on fundamental issues such as anti-bribery and corruption, fighting
financial crime, responsible tax practices and our expectations.

Trust and integrity
are critical to thesuccess of ourbusiness. At Prudential,
in order for us to operate in themost responsible and sustainable
way, we need to hold ourselvesto the highest standards ofprofessional and ethical conduct.”Dennis Tan, Managing Director, Strategic Business Group

Our Governance Framework
Our Group Governance Manual (GGM) sets out our framework
for ethical business practices, governance, risk management
and internal control. Central to this is our Group Code of Conduct,
which provides a consolidated view of how we conduct our businessand the expectations that the Board sets for itself, our employees,
agents, suppliers and others working on behalf of the Prudential
Group, in order to ensure that we adhere to the highest professionaland ethical standards of conduct. This code is further supported
by a set of Group-wide principles and values.
A review of the Code is undertaken each year to ensure it remains
fit for purpose, taking into consideration both internal and external
factors, and it is approved by the Board. In 2023, the Code of Conduct
went through a complete revamp, which was approved at the
October 2023 Board meeting. A comprehensive communication
and awareness campaign followed the launch of the new Code of
Conduct that included a video rolling out the Code of Conduct, apanel discussion, an awareness poster and a quiz covering key aspectsof the Code to enhance engagement from staff and embed learning.
The GGM contains our full suite of policies and is designed to ensurethat we comply with all applicable laws and regulations. Given its
importance, the GGM is subject to regular review to ensure that
we continue to meet the expectations of our stakeholders.
We run a comprehensive mandatory training programme covering
our employees and contingent workers across the Group that covers
the key policies that are referenced in the Code of Conduct. These
include Anti-Money Laundering, Anti-Bribery and corruption, Fraud
awareness, Information Security, Privacy, Corporate Communications,
Conflicts of Interest, Information Sharing and Securities Dealing,
and Speak Out. All training includes scenario-based practical examples
to embed the learnings, as well as an assessment. All staff are
expected to complete an annual declaration to confirm that they
have read and complied with the Code of Conduct. Prudential’s
Annual Report and Accounts includes a comprehensive Governancesection, which provides further information on how the Governance
Framework operates, the Board of Directors, the Board committee
reports, and an overview of the risk management.

Combatting modern slavery
Prudential is committed to ensuring that slavery, human trafficking,child labour and any other form of human rights abuse have noplace in our Group or in our supply chain of close to 13,000 suppliers
globally. Our most recent Modern Slavery Transparency Statement,
issued in June 2023, sets out the steps we are taking to identify,
monitor, report and proactively mitigate any modern slavery risks inour supply chain in support of the UK activities of Prudential plc andits subsidiaries under the scope of the UK Modern Slavery Act 2015.
Since 2022, we have sought to introduce the same measures
deployed in the UK to our Asia and Africa supply chain, leveraging
our third-party risk management due diligence and risk assessment
system (Coupa Risk Assess) across these regions to drive consistency
and control. The nature of our business as an international insurance
and fund management services group drives our spend towards
professional services, IT services and the maintenance of our office
infrastructure. In common with our financial services peers, we are
not a major consumer of low-cost manufactured or agricultural
goods, where Modern Slavery risks are more inherent.

Our focus in 2023 was on increasing awareness and training formodern slavery, and broader human rights issues within our supply
chain across our procurement and risk teams in the Group. In
December 2023, Group Procurement conducted Modern Slavery
risk awareness training in partnership with the Remedy Project,a not-for-profit organisation that focuses on responsible businessconduct, mechanisms for the remediation of worker grievances on
supply chains, and combatting trafficking in persons, forced labourand other forms of exploitation. The training sought to provide an
overview of Modern Slavery, and raise awareness of where and how
these issues may exist in the Group’s supply chain, along with an
overview of how these risks can be mitigated, and monitored andthe type of positive actions that can be taken to remediate. One
hundred and eighty staff attended the training across our markets
in Asia and Africa, with representation from procurement managers,
risk assessors, legal teams and sustainability representatives acrossthe Group.
For more information on how we are identifying and managing ourrisks in relation to modern slavery, human trafficking, child andforced labour, please read our most recent Modern Slavery
Statement on the Prudential plc website www.prudentialplc.com/~/
media/Files/P/Prudential-V13/policies-and-statements/modernslavery-statement-2022.pdf

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Good governance and responsible business practices continued

Responsible tax strategy
and practices
Prudential is committed to upholding a fair and transparent tax
management approach, which we view as a critical aspect ofconducting responsible business in the communities we serve.
Our tax strategy is backed by the Group Tax Risk Policy, which:– Provides a consistent Group-wide definition of tax risk;– Describes the governance structure around managing
and identifying tax risk;– Sets the appetite limits for tax risk and describes our risk culture;– Defines the requirements of tax risk identification, categorisation
and reporting; and– Defines assurance requirements.
We conduct an annual review of our Group Tax Risk Policy to ensure
it stays aligned with evolving risk management practices and meetsthe expectations of stakeholders. Our tax risk management processincludes risks identification, compliance monitoring, escalation andreporting. These assurance activities ensure any risks undertaken
are within appropriate limits and transparent to stakeholders.
The management of our tax affairs reflects the regulatory, legal
and commercial environment in which our business operates.
All decisions are taken after careful consideration of all the issues
and potential impacts. We do not base our decisions on aggressiveinterpretation of tax law. We do not engage in tax avoidance
strategies. When we choose to operate in a tax-efficient manner, we
ensure that it is a responsible and sustainable choice, consistent
with our business strategy.

In 2023, we contributed a total of $969 million in taxes (2022:$1,009 million), reaffirming our commitment to paying theappropriate amount of tax and contributing to the wellbeing
and growth of the societies in which we operate.
Our Tax Strategy Report complies with the mandatory requirementsof the UK Finance Act 2016, and adheres to the following principles:
1 We act responsibly and with integrity in all of our tax matters;
2 We seek to comply fully with all our tax obligations, including
paying the right amount of tax in each jurisdiction;
3 We apply rigorous management over tax uncertainties and risk
through our Group Code of Conduct, Group Governance Manualand Group Tax Risk Policy;
4 Where the tax treatment of a particular transaction or activity isunclear, we will follow the generally accepted interpretation of tax
law, which means the common view across the informed tax
community of how the tax laws and regulations are interpreted
and applied;
5 We deal with tax authorities in an open and constructive manner;
and6 We provide transparent disclosure of our tax affairs to better
inform our stakeholders of the amount and type of taxes we pay
and our tax governance processes.
Our updated Tax Strategy Report, which will include informationon the tax we paid in 2023, how we manage our tax affairs andthe governance and management of tax risk, will be published by
31 May 2024. Information on our tax charge and effective tax rate
can be found in our 2023 Annual Report and Accounts.

As Tax Director, I am responsible for balancing
our business strategy with ensuring sustainable tax
revenues are contributed to the communities in which
we operate. The Prudential Tax Risk Policy provides aconsistent framework for ensuring all our businesses
act with integrity when managing risks and taking
on business opportunities that enable growth.”
Jean Ho, Director, Tax, Prudential plc

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Good governance and responsible business practices continued

Fighting financial crime
The Group works to protect its employees, customers and thecommunities in which it operates from the risks associated withfinancial crime. In doing so, Prudential maintains a series of internal
policies, guidelines, procedures, and systems aligned to regulatory
expectations and good practice. These risks include sanctions,money laundering, terrorist financing, fraud, bribery and corruption.
We periodically assess all financial crime risks to identify anddetermine the nature and scale of the Group’s exposures, andensure controls are in place. The Group’s overall performancein effectively managing financial crime risk is overseen by the
Board-level Risk Committee.
Bribery and corruption can distort markets, undermine investments
and cause harm to communities. The Group is committed topreventing bribery and fostering a culture in which corruption isnever acceptable. Throughout 2023, we continued the developmentof an anti-bribery programme following enhancements made to ourrisk assessment framework in the previous year. This included
delivering compulsory proportionate basic training for all Prudential
employees and associated people acting on behalf of the business,enhanced training for individuals operating in higher risk roles andupdates to Group Policy and Standards.
In 2023, we launched the Group’s Financial Crime Intelligence Unit
(FCIU), delivering holistic oversight of procurement spend, third-party
due diligence, conflicts of interest and gifts and hospitality. TheFCIU has been central in the development of enhanced analytics
to prevent and detect fraud within insurance policies and claims in
key markets, including links to agent misconduct. We are continuing
to roll out these analytics to other markets in 2024.
The Group monitors and reviews its financial crime prevention
procedures using a combination of benchmarking, assurance andexternal reviews. We provide a comprehensive suite of financial
crime training to our employees. For staff in higher-risk roles, weoffer advanced AML training.
In 2023, no staff were disciplined or dismissed due to noncompliance with anti-corruption policies. This demonstrates ourdedication to maintaining a culture of integrity and compliance.
Our Group AML & Sanctions Policy requirements are based primarilyon Hong Kong, UK and Financial Action Task ForceRecommendations in relation to anti-money laundering andcounter-terrorist financing. It also incorporates the requirementsof relevant sanctions legislation. It outlines the framework andrequirements for our businesses to prevent the use of the Group’s
products and services by money launderers, terrorist organisations,sanctioned individuals and organisations, and other criminals.
The policy includes detailed standards, and governance and control
requirements designed to ensure our full regulatory compliance.
These requirements include having appropriate processes, systems
and controls for risk identification and assessment; conducting due
diligence; screening customers, third parties and investments against
applicable sanctions and watchlists; ongoing monitoring; andsuspicious activity reporting. The policy requirements form partof the Group Governance Framework and businesses are required
to confirm their compliance every year.
We have refreshed our Group Compliance Standards to enhancecontrols in our name screening process. Additionally, politicalcontributions and facilitation payments are not allowed as part of
our Corporate Political Engagement and Political Donations Policy.
We have conducted a data assurance review involving both life
and asset management businesses on our name screening
and transaction monitoring system. The aim of the review wasto assess the completeness and accuracy of the records andinformation extracted by our business for name screening purposes,
ensuring our practices align with international Anti-Money
Laundering (AML) standards. In addition, we have carried out AML
deep dives at two life business units to evaluate the effectivenessof their AML and sanctions compliance programmes. Furthermore,
we implemented a new enterprise-wide AML and sanction risk
assessment using a data-driven methodology, which has helped
us reduce subjectivity in our assessments.
Looking ahead in 2024, we are looking to implement namescreening of our businesses across Africa, a crucial step in enhancing
our compliance measures. Alongside these implementations, we areconducting in-depth AML reviews for selected local businesses.

Whistleblowing
It is essential that our people feel secure and empowered to voice
their concerns openly. We encourage them to raise concerns about
any actions or behaviours that breach Prudential’s values andprinciples, or violate regulations or policies.
The Group Speak Out Policy sets out procedures for confidential
reporting of concerns, including those related to violations ofhuman or labour rights, or unethical behaviour within the Group.
Speak Out is a dedicated channel, managed by a third party,
designed to receive a wide range of concerns. It is accessible toany employees, agents, clients, suppliers, business partners orcontractors. This platform offers various reporting channels suchas web, a telephone hotline, a mobile app, post, email, andin-person communication, and it supports multiple languages.
Individuals can remain anonymous.
All employees are required to complete an online training module
on Speak Out annually, with a separate module for line managers to
guide them on how to handle whistleblowing concerns raised by
employees. Non-executive members of the Audit Committee acrossthe Group receive training which details the role of whistleblowing
in the organisation and their role in ensuring the programme iseffective. The Speak Out programme is also supported by regularcommunications containing helpful resources.
The Speak Out programme is overseen by GAC, and the procedures
for logging and investigating concerns are under the overall
supervision of the Chief Security Officer. Trained and skilled
professionals carry out investigations. Retaliation is not tolerated,
and the Chief Security Officer is required to report to the GAC if it
occurs. When investigating any concern raised, the Group complies
with all applicable laws and internal Group policies, including withrespect to document retention.

A Speak Out Report that offers detailed data and analytical insights
regarding the volume, categories, and geographical distribution ofreceived reports is generated annually. Additionally, the reportdelineates the contributing causal factors and outlines theremediation measures taken. This report is confidential and only
available to restricted audiences. In 2023, 184 concerns werereported, representing a 16 per cent increase from 2022. All reports
were investigated, with one in three being substantiated, and noneof these is related to issues such as money laundering, tax evasionor sanctions violations.
The programme is externally benchmarked, with scoring based on
an aggregate of three scored elements: governance, engagement
and operations. The 2023 overall score for Speak Out is 87 per cent(2022: 86 per cent), higher than the industry benchmark of 73 percent. Scores for the three elements are: Governance: 96 per cent(2022: 95 per cent); Engagement: 71 per cent (2022: 69 per cent);
Operations: 92 per cent (2022: 92 per cent).

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Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Managing climate-relatedrisks and opportunities

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Managing climate-related risks and opportunities continued

We recognise that climate risks pose both challenges
and opportunities for our business. We have a fiduciary
duty to our stakeholders, and that includes actively
managing climate risks to protect our financial stability
and enhance long-term value. By embracing the opportunities
presented by the transition to a low-carbon economy, we canalign our business with sustainable growth and demonstrate
our commitment to fulfilling our fiduciary duties.”
Avnish Kalra, Chief Risk and Compliance Officer

We are committed to playing our part in the transition
to a global low-carbon economy and the collective
efforts to limit the rise in global warming. In addition
to responsible investment approaches designed toaddress climate related challenges, our Climate
Transition Plan sets out how we will fulfil our climaterelated commitments, and we have included updates
against the plan throughout this report. We have also
included an index to show how this report aligns withthe recommendations of the Task Force on Climaterelated Financial Disclosures.

GovernanceOversight of climate change
At a management level, sustainability, including climate-related
responsibilities and progress towards fulfilling the TCFD
recommendations, is overseen by the Group Sustainability Committee,
which is chaired by the Chief Financial Officer. The Sustainability
Committee reports to the Board-level Risk Committee, which has
ultimate oversight of environmental and climate-related issues.
The Risk Committee has a standing agenda item relating tothe oversight of climate change, including the progress against
the Group’s climate targets, updates on principal risks, including
climate-related risk, and consideration of climate-related issues
when reviewing and guiding overall strategy, major plans of action,risk management policies, annual budgets and business plans.
They are also responsible for external reporting, via the Sustainability
Report, where it relates to those areas within its remit, including the
TCFD disclosures. In setting future climate targets or commitments,
the Risk Committee considers and makes appropriate
recommendations to the Board. The Risk Committee receives
updates on climate-related issues at least twice each year, andin 2023 they were updated four times.
In 2024, the Board plans to establish a Sustainability Committee
to replace the RSWG and to take over responsibility for the oversightof climate change from the Risk Committee.
For more information on the governance of climate-related risk,
please refer to the Sustainability governance section which outlines
our approach to sustainability and climate-related governance inmore detail.

Risk Management
We regularly analyse and assess the potential impact of the risks
associated with climate change to ensure we can continue to serve
our customers and strengthen our business resilience. Our Group
Risk Framework (GRF) considers both emerging and significant risks,
including those related to sustainability themes. Sustainability risks,
including climate-related risks, are considered principal risks at theGroup level, and subsequently receive enhanced management
focus and reporting.

Identifying climate-related risks
Climate-related risks are considered within our risk management
processes to assess their importance relative to other risks. We
continue to treat climate risk as a thematic cross-cutting risk type,with the potential to impact or amplify multiple existing risks that
we manage. By treating climate-related risks as a cross-cutting risk
type, we recognise that there could be significant interdependencies
with, and impacts on, other established standalone risks, including
credit, market, insurance, and operational risks. We also recognisethat the risks associated with sustainability topics, including climatechange, may exhibit a number of additional risk characteristics
which are not explicitly recognised in more traditional risk
management practices and frameworks. Consequently, the following
risk characteristics associated with climate and other sustainability
themes are considered in our risk management framework:
Sustainability risk
characteristics

Considerations

Longer time
horizons

Some aspects of ESG/sustainability risks
may emerge in the near term, whileothers may develop over a much longer
time period than traditional risks.

Doublemateriality

The company can be both ‘impacted by’
ESG/sustainability issues, and can havean ‘impact on’ those issues.

Dynamic
materiality

A topic can rapidly change from being
immaterial to material.

Multiplestakeholders

The company’s actions can impact awide range of stakeholders, including
employees, customers, communities
and the environment.

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

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The Group Risk Framework also includes:

Area of risk

Climate risk type

Main affected time horizon

Managing and responding to climate-related risks– As part of the risk taxonomy refresh in 2022, a double materiality
lens was introduced with the inclusion of ‘social andenvironmental responsibility’ as a strategic risk;– The non-financial risk appetite framework reflects a stakeholderfocused approach which supports the Group sustainability
strategy and recognises a broader set of stakeholders as one of
the key characteristics defining sustainability and climate risks;– The risks and control self-assessment libraries have beenreviewed to identify key risks and controls which support thesustainability strategy;– The tools developed to assist with managing against the Group’s
external Responsible Investment commitments, including the
WACI calculation and reporting tools, have been included in
the Model Risk inventory; and– Noting increasing stakeholder and disclosure expectations
around quantification of climate risk exposure, climate scenario
stress testing results were included in the Group’s Own Risk
and Solvency Assessment (ORSA) report.

Strategy implementation – As the Group implements its sustainability
strategy and climate-related commitments, there is an ongoing need tobalance potentially different interests, expectations and objectives, bothwithin and across stakeholder groups.

Transition risk

Short and medium term

Climate-related risks vary significantly in nature, focus, and impact acrossthe Group’s markets. Our emerging risk process helps us identify and adapt
to evolving climate change and sustainability topics across our business.

Financial resilience – Our assets under management are at risk of physicalclimate risk in the long term. Some of our assets under management are inhigh-emission, carbon-intensive and carbon-reliant sectors. These assets are
exposed to transition risk in the short and medium term, potentially resulting
in increased levels of price volatility, reduced levels of liquidity, taxation,
regulation and/or reduced demand, which could lead to impairments,
downgrades and/or stranding if they fail to adapt, innovate or transition
to a lower-carbon business model.

Transition risk

Short, medium and long term

Insurance and product risks – Our strategy focuses on life, health andwealth products, which excludes us from underwriting emissions-intensive
activities. Climate change could impact our customers’ health and livelihoods,
which could result in changes in mortality, morbidity and/or persistency for
our life and health underwriting portfolio.

Transition risk

Long term

Operational resilience – Climate change could have physical impacts
on our operations. The impact from such climate events on operational
resilience, including the impact on third-party providers and the servicingof our customers, is explored in our operational risk scenarios.

Physical risk

Long term

Data and model limitations – Current limitations in financial climate
data quality and availability, and asset and liability modelling tools, makeit challenging to accurately assess the financial impact on the Group,particularly for longer-term time horizons.

Transition risk

Short and medium term

Regulatory, legislative and disclosure expectations – The pace andvolume of new climate-related regulation across the Group’s markets could
pose compliance and operational challenges that may require multijurisdictional coordination. Increasing disclosure expectations heightens
the potential for litigation associated with external reporting conveying
a materially false impression or misleading information.

Transition risk

Short and medium term

Assessing climate-related risks
To develop a comprehensive view of the potential impactsof climate change on our business, the Group Risk Framework
considers climate-related risks across three time horizons by taking
into account the expected benefits and paybacks of risk-based
decisions. These time horizons are defined to reflect the periods
over which transition and physical climate-related risks andopportunities could reasonably emerge:– Short term: zero to three years;– Medium term: three to five years; and– Long term: five to 30 years.
Through this approach, we have assessed the following areas ofclimate-related risks across the short-, medium-, and long-termtime horizons.

Understanding our exposure to climate-related risks in key markets in Asia
is an ongoing priority for us, and we engage with the risk teams within key
local businesses on the climate-related topics most relevant to thosemarkets, including TCFD-aligned pillars such as internal governance, local
strategy, risk management integration, and metrics/targets. This enables
the local businesses to share knowledge and experience, leverage theGroup experience, and enable a consistent approach to addressing
climate-related risks to be adopted across our markets.
Climate change’s impact is evolving quickly, with new risks anddevelopments emerging constantly. We help our local businesses
understand the potential implications of climate-related risks andwork with them to navigate and comply with the changing regulatory
landscape, for instance in Singapore, Taiwan and Malaysia.

Identifying and responding to climate-related opportunities
We are strengthening the climate resilience of our portfolios andadopting a considered approach to assessing carbon intensity within
our investments. We are also continuing to incorporate climatechange considerations into our products and services.
As a substantial investor and asset owner with long-term investment
horizons and obligations, we actively pursue opportunities to invest
in financing mechanisms associated with climate mitigation andresilience. As an insurer focused on life, health and wealth products,
we also consider the opportunities presented to better serve ourcustomers who may experience climate-related impacts.
Some categories that we are currently looking to explore or expand include:– Financing mechanisms, such as green bonds, transition financing
and adaptation financing;– Savings and insurance products, like ESG- or impact-focusedinvestments, and climate-related health and protection offerings,
such as those that consider changes in the frequency, severity
and emergence of diseases exacerbated by climate change, likedengue fever; and– Engaging, educating and supporting our customers and employees
to build an understanding of sustainability and climate change.

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

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Across our markets, we look for ways to strengthen the
climate resilience of our investment portfolios. In Singapore,
we partnered with BlackRock and SGX Group to anchor thelargest equity ETF in Singapore, the iShares MSCI Asia
ex-Japan Climate Action ETF.
In select markets, Prudential offers ways for local clientsto invest more sustainably, while also growing capital in
the long term. In Hong Kong we manage a total of nine
SFC-authorised† ESG funds within our investment-linked
products (ILP) scope.
For more information on how we allocate capital toclimate-related opportunities, see the Responsible
investment section.
Securities & Futures Commission of Hong Kong†

Responsible Investment (PRI), the Transition Pathway Initiative(TPI), the United Nations Intergovernmental Panel on Climate
Change (IPCC), and the International Energy Agency (IEA).

Overview of our climate scenarios
To support engagement with Group and local business regulators,
we carefully considered the scenario methodologies appropriate to
the size, nature and complexity of our organisation. Since we firstbegan using scenario testing, we have become more sophisticatedin applying different scenarios based on specific business needs:– NGFS scenarios (orderly transition, disorderly transition, andhothouse world) are used for stress testing the resiliency of ourbalance sheet;– PRI scenarios, including the forecast policy scenario, assess
the economic impact of likely policy developments and inform
central market assumptions; and– IPCC, IEA, and TPI provide science-based decarbonisation
pathways aligned with Paris Agreement goals, that can support
investee engagement to drive real-world change.

NGFS-aligned scenarios

We recognise the importance of not only identifying and managing
climate-related risks and opportunities, but also considering thepotential impact on our business, and the resilience of our strategy
to climate-related changes, developments and uncertainties acrossa range of climate scenarios.

Stress testing on our balance sheet is conducted under NGFSaligned scenarios, with risks assessed over the short-, mediumand long-term time horizons. These scenarios offer insight into
the potential financial implications of the different pathways
and can simulate complex interactions between energy, economy,
and climate systems, considering both policy and technology
developments. We use data from external providers who haveadjusted the calibration of the scenarios to employ non-equilibrium
economic models to reflect real-world inefficiencies.

Climate-related scenario analysis

Carbon prices used in scenario analysis

Scenario testing is a valuable tool for enhancing understanding ofclimate-related risks and improving decision-making. It is particularly
beneficial in raising awareness of climate change risks due to thebroad range and uncertain timing of potential mitigation andadaptation measures.

Carbon prices are considered as a proxy for the impact of potential
government climate policies within our climate scenario analysis.
These prices are set to reflect differences across the regions where
we operate and they consider local market dynamics.

Strategy

We closely monitor and evaluate advancements in climate scenario
testing, including reviewing publications from regulators, globalorganisations like the International Association of Insurance
Supervisors (IAIS) and the Network for Greening the Financial
System (NGFS), as well as reports from the UN Principles forIn the long term, we expect the introduction of carbon prices andcarbon taxes to increase, as governments look for tools to combat
emissions. Imposing an internal carbon price (ICP) has been
considered as a means of establishing consistency in how carbonrelated factors are considered across our organisation.

The three NGFS-aligned scenarios used in our stress testing
are as follows:– Orderly transition: This <2°C scenario aligns with IPCC’s
Representative Concentration Pathway (RCP) 2.6. Under
this scenario, ambitious climate policies are introduced,
reducing fossil fuel demand, implementing higher carbon
taxes, and investing in low-carbon electricity generationand manufacturing. Despite emissions reductions,extreme weather events increase, leading to physical loss
and damages.
– Disorderly transition: This <2°C scenario assumes similartransition policies and physical impacts as the orderlytransition scenario, but with delayed and disorderly policy
implementation. Market volatility rises, especially infossil-fuel intensive sectors and regions, as well as across all
sectors, due to the disorderly nature of policy introduction.
– Hothouse world: This scenario forecasts a >4°C
temperature increase by 2100. It anticipates irreversible
climate damage, extreme weather events, and water
shortages in line with RCP 8.5. Some areas experiencewarming above 4°C, rendering them unsuitable for
agriculture and habitation. Few additional climate policies
are implemented, resulting in limited transition impacts.
While we see benefits in the use of forward-looking data,
particularly in supporting the assessment of how wellcompanies are prepared for the climate transition, it isimportant to acknowledge the limitations. These limitations
include but are not limited to, data quality, data availability,
data consistency, underestimation of physical climate risk,
model limitations, greater uncertainties over longer time
horizons, and extensive judgements and assumptions. In
addition, current climate models do not capture tail events
such as climate tipping points (eg ice sheet melt, Amazon
Forest dieback) or knock-on effects (eg migration, war, politicaland social instability) that could have significant impacts on
global economies. As a result, we treat forward-looking
climate data with additional caution than we would for otherdecision-useful metrics like historical financial statements.

Impact on our businesses, strategy andfinancial planning
Our scenario analysis results are translated into sensitivities
to economic factors to assess the possible financial consequencesof climate change on our business. The results of our climate
scenario stress testing have allowed us to arrive at two conclusions
with respect to our balance sheet:– Though the Group faces potential financial risks from plausible
global responses to climate change, the results of our scenario
testing are not outside observed market volatility, suggesting no
immediate need for explicit climate change considerations withincurrent valuations of our investment portfolio;– Furthermore, explicitly including additional stresses for climatechange in our internal economic capital adequacy model is notneeded currently.
The results are documented in the Group’s Own Risk and Solvency
Assessment (ORSA) report, which is regularly shared with the Board.
The results are simplified in ways which enable understanding
and comparison, for example, a static balance sheet is used,
and the potential sectoral and regional impacts are summarised
at a high level. We understand that these simplifications could resultin understating exposures and vulnerabilities, as acknowledged by
the Financial Stability Board (FSB) and NGFS. We remain mindful ofthese limitations when referring to the results of the scenario testing.
Additionally, our climate scenario analysis currently does notconsider potential management actions we could take to mitigate
the negative impacts of climate change. However, we recognise theneed to explore these opportunities in the future. At this stage,
given these models have evolved considerably and continue tochange, we do not consider the climate scenario tests suitable
for setting capital requirements.

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Prudential plc

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Impacts on assets
As a significant asset owner and manager, we rely on investment
returns to meet long-term liabilities. This leaves us vulnerable toany risks that could disrupt or diminish investment returns, andwe explore these risks under each climate scenario.
The ‘disorderly transition’ scenario had the most significant impact
in the short to medium term as markets adjusted to disorderly policychanges. As expected, the ‘orderly transition’ scenario had the least
overall impact on the Group’s balance sheet. This reinforces our
strategic objective of decarbonising our investment portfolio. The‘hothouse world’ scenario considers long-term physical climatechange impacts that could lead to financial market repercussions in
the medium to long term. While the impact of the ‘hothouse world’scenario is muted in the short to medium term, it had the largest
overall impact on the Group’s balance sheet over the long term,
reinforcing the message that investors should not be misled intoa false sense of security of maintaining current government policies
as the true cost of climate change compounds over much longer
time horizons.
The scenario analysis offers an important insight into how thedifferent scenarios might impact different sectors, as shown in
the heatmap diagram below.
In the ‘orderly transition’ scenario, the impact is confined to threesectors: fossil-based utilities, coal and manufactured fuels, and oil
and gas. In contrast, under the ‘disorderly transition’ scenario, theimpact extends beyond the three sectors highlighted.
These sectoral impacts are significant to Prudential, given ouroperational footprint across Asia and Africa, with many countries
engaged in manufacturing rather than service industries. Bothscenarios also present investment opportunities in clean energy
and water supply.

Regional impact on our operations

As extreme weather increases in frequency, our people and our operations are potentially exposed to physical risks associated withclimate change. Strengthening our organisational resilience to these risks is a key priority for us.
We use a third-party platform to assess the risks associated with natural disasters and inform our business continuity management
approach. The most recent assessment revealed potential significant physical climate impacts on our operations under the ‘hothouse
scenario’ (RCP 8.5) as shown on the map.
We also use scenario analysis to identify additional vulnerabilities in our operations, supply chains, and customer base. Using ourthird-party provider’s platform, we also investigate the potential operational risks from severe typhoons or floods, including property
damage, business interruption and market volatility.

Impact of RCP 8.5 scenario on Prudential’s locations of operation
427 Overall Risk Rating

Heatmap of climate scenario impacts over time
Orderly transition
Sectors

Financials
Information technology
Consumer staples
Consumer discretionary
Industrials
Communication services
Materials
Real estate
Healthcare
Oil and gas
Fossil-based utilities
Coal and manufactured fuels
Public administrative and defence
Education
Other low-carbon and biobased electricity
Water supply
Wind and solar
NuclearForestry
Source: Prudential internal scenario analysis work.

2025

2035

Disorderly transition
2050

2025

2035

2050

0-25

26-50

51-75

76-100In brief

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Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

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Impact on strategic asset allocation

Impact on access to capitalIn addition to climate scenario analysis, we integrate climatechange into the strategic asset allocation (SAA) process. Our SAA
process heavily relies on capital market assumptions (CMAs), which
are economic projections used across our financial metrics andasset classes. We use CMAs that are particularly focused on the
countries where we operate and invest.

Occasionally, we seek to raise capital from bond or equity markets
to fund strategic opportunities like mergers, acquisitions, or newmarket entry. Institutional investors are our primary source ofcapital, and we expect them to continue to provide access to
sufficient capital despite potential impacts of climate change.

These CMAs are developed through a rigorous process thatincorporates comprehensive research, economic models, andprojections of key drivers of economic variables. To ensure climate
risk is captured within our CMAs, we include climate data, such as
climate-related transition and physical risks.
We have partnered with an external provider to assess a climate
scenario and associated potential impacts on our CMAs. Thisevaluation will be conducted twice a year to ensure the CMAs
remain relevant. We will also continually review our data andfindings, considering the higher levels of uncertainty typicallyexperienced by emerging markets.

Impact on financial and strategic planning
We review our strategy and financial planning process annuallyand stress-test the proposed strategy to assess its resilience. These
stress tests, which are conducted as part of our usual businessactivities and consider stresses independent of climate change, aremore stringent than the scenarios outlined in the ‘Climate-related
scenario testing’ section. The results of these business stress tests,
combined with the insights gained from the climate scenario
testing, provide us with additional confidence in the strategy’s
viability for the year ahead.
We also ask our local businesses to consider our sustainability
strategy and Responsible Investment Policy in their productdevelopment processes and ongoing product evaluations.

Our credit ratings remain high, based on credit rating agencies’
assessment of our business profile and financial flexibility, including
capital market access. ESG factors are regularly discussed in ourannual meetings with ratings agencies. To date, they have notimpacted our creditworthiness.

Impacts on insurance liabilities
Potential climate change impacts may also affect morbidity,
mortality, and persistency differently across global regions. These
differences are captured in the annual review process that monitorsthese factors and considers their impact on our products. As a lifeand health insurer, while we recognise the potential for climatechange and government policies to impact the assumptions
underlying our underwriting liabilities, we believe there is currently
insufficiency of and uncertainty in data that would allow us toreliably use the assumptions for the valuation of our underwriting
liabilities. Therefore, at this stage, the Group’s assumptions for ourlife and health insurance business do not include additional
assumptions related to the impacts of climate change. At this stage,
the Group’s assumptions for the insurance business are not directly
impacted by climate change. We will continue to engage with ourregular experience analysis, to engage with reinsurers and monitor
relevant academic studies. If significant changes occur, the financial
impacts of climate-related risks on insurance liabilities will beconsidered. Additionally, we have analysed the distribution of ourcustomers across locations to assess their vulnerability to extreme
climate events. These assessments aim to improve our understandingof our customers’, and our, exposure to climate risks.

Advocating for emerging market sustainability andclimate-related issues
We are actively involved in advocating for emerging market
sustainability and climate-related concerns on a global level. Our
advocacy efforts extend beyond exploring the role of investors in ajust and inclusive transition in Asia and Africa. We also engage with
policy and regulatory stakeholders to promote awareness ofsustainability issues. Our outreach focuses on key themes, including
regulatory reform, blended finance, harmonisation of standards
and taxonomies, and the preservation of nature. We also continue
to explore the impacts of climate change and health throughresearch partnerships. It is critical that policymakers and communities
have the knowledge and tools to support them with climate change
adaptation efforts. For more information, please refer to the section
on Harnessing thought leadership to shape the agenda.

Evolving our climate actions
Climate change is a fast-moving issue, with new challenges andsolutions emerging all the time. We are continually looking to
improve our understanding of the challenges we face and theeffectiveness of our efforts to mitigate them.
As outlined in the ‘Rising to the climate challenge’ section, we plan
to continue forming and executing renewed climate action atPrudential. We are already mapping a clearer trajectory on ourjourney to net zero and identifying opportunities to drive positivechange across our business and customer interfaces, our operations
and our supply chains.

To safeguard our customers from the impacts of climate change
and build resilience for the future, we will continue to update ourclimate transition actions and progress, aiming to make moreproactive contributions to a just and inclusive net zero transition
across our broad footprint in Asia and Africa. Broadly, we will alsoseek to:– Work with data providers and our asset managers to improve theavailability and quality of our Scope 3 investment book data,
including potential monitoring of other asset classes asmethodologies continue to develop;– Develop the coverage of our Scope 3 value chain emissions
beyond financed emissions, for example our supply chain
emissions and initiatives to reduce them;– Investigate the feasibility of setting net zero operational targets,in light of the constraints of renewable energy availability within
our markets;– Examine how emerging topics, such as nature and biodiversity,
may impact our decarbonisation strategy and our overall
approach to climate change;– Continue to explore climate-related opportunities, such as thoserelating to climate financing within emerging markets, ourcustomers and digital services, climate-related health products
and services, and employee initiatives;– Further develop our approach to corporate engagement andasset manager engagement, focusing on appropriate sectorspecific and emerging market engagement approaches tomaximise our impact;– Continue to develop localised, market-specific responsible
investment approaches;– Explore additional opportunities to collaborate and partner with
relevant private and public entities on climate change andtransition financing; and– Continue to engage with other financial market participants,
local regulators and stakeholders, to advance the development offrameworks that support our climate work in emerging markets.

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Prudential plc

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Metrics and targets

Climate-related metrics

Our long-term pledge is to become net zero by 2050, and we have established interim targets to measure our progress on the path to net
zero. These targets are designed to support the achievement of the Paris Agreement goals to limit the increase in global averagetemperatures to 1.5˚C above pre-industrial levels.
Since our carbon journey began in 2018, we have continually reviewed our approach and our commitments to assess our progress towards
our net zero pledge. We have met or exceeded our interim targets at every stage, allowing us to increase our ambitions and update ourtargets to accelerate our progress.

Progress against our climate-related targets
Target2023 progress

Deliver a 55% reduction in the carbon emissions intensity of ourinvestment portfolio by 2030 against our 2019 baseline.

Achieved 50% reduction by the end of 2023 and revised target
upwards to 55% reduction by 2030 against 2019 baseline.

This is an ambitious, but realistic target that will accelerate ourprogress towards becoming a net zero asset manager.

The WACI of our portfolio is influenced by movements in the carbon
intensity of the companies we invest in, movements in markets, andchanges to portfolio weights.

Finance the transition particularly in emerging markets throughinvestments and strategy development.

Internal investment target on financing the transition to a lowercarbon future.

Divest from all direct investments in businesses that derive morethan 30% of their income from coal.

– Fully divested from coal equities by 2021
– Fully divested from coal bonds during 2023

The threshold for our coal policy has been carefully considered to
strike a balance between risk and return, and enable companies inour markets to gradually phase out coal.

This is an annual target, so our portfolio is constantly reviewed
against this threshold.

Engage with the companies responsible for 65% of the absoluteemissions in our investment portfolio.

Engagement completed for all identified companies during 2023.

Deliver a 25% reduction in our operational emissions intensityfrom a 2016 baseline, abating the remaining emissions via carbon
offsetting initiatives, to become carbon neutral across our Scope 1
and 2 (market-based) emissions by the end of 2030.

Achieved an intensity ratio of 0.95 tCO2e/FTE for 2023, putting us on
track to meeting our 2030 target of 1.65 tCO2e/FTE.

We continually review the climate metrics we use to assess theirsuitability for our markets, considering factors like practicalityof implementation, data availability and coverage.

Carbon emissions profile as of 31 December 2023
0.04%

To measure our exposure to climate-related risks, we use acombination of absolute emissions data and emission intensity
data. Absolute emissions allow us to quantify the overall carbon
footprint of investments within our portfolio, while WACI data
allows us to compare carbon footprints relative to the revenue
generated by investments.
Measuring WACI enables us to compare the intensity of emissions
for different portfolios and assess improvements over time. WACI
is also useful as a proxy for transition risk within our investment
portfolio, with a higher WACI usually indicating a gap in alignment
with the goals of the Paris Agreement.
As mentioned in the Challenges and future goals section of thereport, the calculation of the WACI is aligned to the protocol of
the Net Zero Asset Owner Alliance as follows:– Assets from wholly owned business only;– Shareholder and policyholder assets (excluding assets
in unit-linked funds);– Assets in the following asset classes only: listed equities
and classified corporate bonds, using industry practice;– Assets in the following investment vehicles: segregatedmandates, collective investment schemes and exchange tradedfunds (ETFs); and– These assets mentioned above as reported by our main portfolio
management system constitutes over 92.9 per cent of ourinvestment portfolio as at 30 September 2022.
To assess our operational emissions, we measure the reductionin emissions intensity per full-time employee.

0.04%

99.2%

Scope 1 and 2 (market-based) (tCO2e)14,426 *Scope 3 – including emissions associatedwith fuel- and energy-related activities,
waste generated in operations andbusiness travel, excluding category 15(tCO2e)14,462 *Scope 3 category 15 – including emissions
associated with investments (tCO2e)3,600,000 ** Within the scope of EY assurance – for further information, see the Basis ofReporting which notes those Scope 3 categories that were within the scope of
EY assurance.

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

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Movement in metrics

Data availability

Monitoring and shaping industry developments

Target-related metrics
WACI (weighted average of tCO2e/$mil revenue)
Coverage for the WACI of the investment portfolio
Holdings in companies with more than 30% of revenue from coal

As a data user, we rely on information disclosed by investee
companies via reporting frameworks like the TCFD recommendations
and the CDP. To enhance data availability, we are working withboth data providers and our asset managers to improve disclosures.
In time, we expect the situation to improve as companies acrossregions are increasingly required to make climate-related disclosuresand face increased scrutiny from stakeholders.

We continue to monitor developments related to the International
Sustainability Standard Board (ISSB), and guidance from theregulatory authorities in markets where we operate and willcontinue to review the completeness and robustness of oursustainability-related data and methodologies in general.

Engagement with the companies responsible for 65% of the absolute emissions
in our investment portfolio
Operational emissions intensity (tCO2e/FTE)
Our own operations
Scope 1 (tCO2e)
Scope 2 – market-based (tCO2e)
Scope 2 – location-based (tCO2e)
Scope 3 (upstream activities)† (tCO2e)
Our financed emissions
Scope 3: Downstream activities (financed emissions) (tCO2e)‡

2023

2022

2021

192*
69%
Fully divested

296
69%
Fully divested
from equities

Reviewed 100%Engaged 100%

219
67%
Substantiallydivested frombonds
Reviewed 100%Engaged 100%

Reviewed 44%
Engaged 31%

0.95

1.21

1.47

2,108*
12,318*18,334*
14,462*

1,645
16,93819,8809,487

1,481
19,986
21,5478,798

3,600,000*

3,100,000

4,700,000* Within the scope of EY assurance – for further information, see the Basis of Reporting, which notes those Scope 3 categories that were within the scope of EY assurance.
† Includes Scope 3 categories: 3 (fuel- and energy-related activities, 5 (waste generated in operations) and 6 (business travel).
‡ Reflecting the absolute emissions of the assets in the WACI calculation where the underlying data is available as detailed in the Basis of Reporting.

We are aware that expanding data coverage could impact the
WACI of our portfolio, either positively or negatively, as newly
disclosed data is included in our calculations.
For more detail on our direct environmental footprint, please referto the Sustainable Business section.

Forward-looking metrics
We are actively working with our asset management and asset
owner businesses to develop forward-looking metrics that are moresuitable for our operations. These metrics would enable us toeffectively manage and report on climate-related risks, while
integrating seamlessly into our investment processes to help us
uphold our responsible investment framework.
In assessing new metrics, we conducted a thorough review of peer
practices and industry recommendations regarding forward-looking
metrics, including Climate Value at Risk (Climate-VAR) and implied
temperature rise (ITR). We have reviewed these metrics andbelieve they are only suitable for internal use at this stage, due tolimitations to the data availability and the underlying assumptionsin their methodologies.
We have enhanced our internal reporting by incorporating ITR as anindicator of the temperature alignment of our investment portfolio,
and Climate-VAR as an indicator of the portfolio’s exposure tophysical and transition climate change risks. We will continue tobuild our understanding of these metrics and consider their use forexternal disclosure once their limitations have been appropriately
addressed or mitigated.

We have also reviewed the Science Based Targets initiative (SBTi)
as part of our ongoing evaluation of our climate targets. As part ofthis process, in 2023 we met with the SBTi specifically around theapplicability of their methodology to emerging markets. The SBTi
uses global decarbonisation targets and pathways for verificationthat do not differentiate between the requirements of emerging
markets and developed markets. In line with our commitment toa just and inclusive net zero transition, we believe it is crucial torecognise the transition challenges faced by different countries
and companies. This also aligns with the Paris Agreement that
includes the principle of ‘common but differentiated responsibilities’.
Our Responsible Investment approach seeks to incorporate thisprinciple. We will continue to engage with the SBTi and monitor
their publications to understand whether their methodology canbe applied appropriately in our markets.
For more information on our participation in regional and global
advocacy, please refer to the section on Harnessing thought
leadership to shape the agenda.

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

ReferencetablesManaging climate-related risks and opportunities

Reference tables

Prudential plc

Sustainability Report 2023

Hong Kong Stock Exchange requirements– Environmental– Social
SASB Insurance Standard
TCFD index
Our Group-wide policies relating to oursustainability strategy
SECR Report
Forward-looking statements
Cautionary Statements

80

81
83
87
89
95
97
98
99

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

Prudential plc

81

Sustainability Report 2023

Hong Kong Stock Exchange requirements
HKEX KPI Requirement

Indicator

Disclosure

Environmental
Information on: (a) the
policies; and (b) compliancewith relevant laws andregulations that have asignificant impact on theissuer relating to air andgreenhouse gas emissions,discharges into water andland, and generation of
hazardous and nonhazardous waste.

A1

The types of emissions andrespective emissions data.

A1.1 &A1.2

Our Group Environment Policy applies to our operational properties worldwide, guiding ourapproach to the management of the direct impacts of our businesses.

HKEX KPI Requirement

Indicator

Disclosure

Description of emissions
target(s) set and steps taken
to achieve them.

A1.5

We have set a target to become carbon neutral across our Scope 1 and 2 (market-based)emissions by the end of 2030. We aim to deliver a 25 per cent reduction per full-time
employee (FTE) in our operational emissions from a 2016 baseline, then abating theremaining emissions via carbon offsetting initiatives. To date, the steps we have taken are:

In 2023, there were no confirmed instances of non-compliance in relation to such laws andregulations that would have a significant impact on the Group.

Direct (Scope 1) and energy
indirect (Scope 2)
greenhouse gas emissions(in tonnes) and, whereappropriate, intensity.

A1.3

Total non-hazardous waste
produced (in tonnes) and,
where appropriate, intensity.

A1.4

To date, we are ahead of the emissions reduction trajectory required to meet our target. Moreinformation is available on page 78.

Prudential provides full reporting for Scope 1 and 2 emissions and selected Scope 3 reporting.
More information is provided in the Climate-related metrics section on page 79 andResponsible environmental practices section on page 64.
Direct Scope 1 emissions (tCO2e)
Direct Scope 1 Emissions (tCO2e/FTE)
Direct Scope 1 Emissions (kgCO2e/m2)
Direct Scope 2 (market-based) Emissions (tCO2e)
Direct Scope 2 (market-based) Emissions (tCO2e/FTE)
Direct Scope 2 (market-based) Emissions (kgCO2e/m2)

Total hazardous waste
produced (in tonnes) and,
where appropriate, intensity.

– Carrying out site assessments for the highest consuming assets in our portfolio to identify
measures to reduce our carbon intensity;– Issuing our local businesses with tailored environmental roadmaps, which are updated
on an annual basis and detail existing Scope 1 and 2 emissions, 2030 targets, and actions
required to meet these goals; and– Actively examining how we can procure renewable power for our office operations forcertain markets.

2023

2022

2021

2,108
0.14
6.33
12,318
0.81
36.97

1,645
0.11
4.78
16,938
1.11
49.23

1,481
0.10
4.02
19,986
1.37
54.21

In 2023, we revised our target to reduce the carbon emissions of our portfolio of shareholder
and policyholder assets by 55 per cent by 2030, against our 2019 baseline. Our ambition isthat the assets we hold on behalf of our insurance companies will be ‘net zero’ by 2050.
During 2023, we reduced this weighted average carbon intensity (WACI) of our portfolio
by 50 per cent against the 2019 baseline. More information is available on page 78.
A1.6
Description of how
hazardous and nonhazardous wastes arehandled, and a description of
reduction target(s) set andsteps taken to achieve them.

As a life insurer, the production of hazardous waste is not applicable to our operations.

Non-hazardous waste is sorted in our offices and where possible recycled. The waste
generated by our operations is managed by the landlord of the premises we occupy andtherefore we are restricted in materials we can recycle by their operations.
The waste we produce is not material to the overall environmental impact of our operations
and as such, we do not currently have any targets in place to reduce the waste associated with
our operations. We continue to encourage waste reduction across our operations and we have
implemented initiatives such as providing staff with reusable cups and lunchboxes to reduce
consumption of single-use plastic.
As a life insurer the production of hazardous waste is not applicable to our operations.

Total non-hazardous waste produced (tonnes)
Total non-hazardous waste produced (tonnes/FTE)

2023

2022

2021

379
0.02

357
0.02

222
0.02

Waste associated with our operations includes office waste and limited food waste fromcanteens. As we occupy leased assets and smaller offices, waste is commonly controlled by thelandlord or the municipal government via direct roadside collection. Therefore it is not always
possible to obtain waste data. We continue to work with our landlords in all the areas in which
we operate to enhance the coverage of our reporting.
During 2023, we increased the scope of reporting of waste data to cover 91 per cent of ouroccupied floor area.

Policies on the efficient useof resources, including
energy, water and other raw
materials.

A2

Direct and/or indirect energy
consumption by type in total(kWh in ’000s) and intensity

A2.1

Our Group Environment Policy applies to our operational properties worldwide, guiding ourapproach to the management of the direct impacts of our businesses.

Total Consumption (kWh)kWh/FTE

2023

2022

2021

41,985,325
2,750.73

41,200,175
2,688.60

42,131,700
2,891.48

More information is available in the SECR report on page 97.

In brief

Our approach to sustainability

HKEX KPI Requirement

Indicator

Water consumption in total
and intensity

A2.2

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Disclosure

Total water withdrawal (m )Total water withdrawal (m3/m2)
3

2023

2022

2021

138,960.00
0.42

163,720.17
0.48

123,025.82
0.33

We are not currently able to report the water consumption of all our assets as some sites do
not have water metering, or water is part of the service charge.
During 2023, we increased the scope of reporting of water data to cover 79 per cent of ouroccupied floor area.
Description of energy use
efficiency target(s) set andsteps taken to achieve them.

A2.3

We do not have explicit energy efficiency targets in place. However, 85 per cent of our Scope 1
and 2 carbon emissions are from the use of electricity. Thus, to achieve our carbon reduction
targets the implementation of energy efficiency measures are key.
We have carried out site assessments across our asset portfolio and identified measures toreduce our impact. We have in turn developed roadmaps for our businesses with measures toimplement to generate energy savings. We will continue to carry out these assessments andidentify savings opportunities to reduce our energy consumption.

Description of whether there
is any issue in sourcing waterthat is fit for purpose, water
efficiency target(s) set andsteps taken to achieve them.

A2.4

As a life insurer with office-based operations, water consumption and water efficiency are notmaterial to our business.
Currently, we do not have any targets in place to reduce the water used in our operations.

A2.5
Total packaging material
used for finished products (intonnes) and, if applicable,with reference to per unit
produced.

As a life insurer, the use of packaging material is not applicable to our business.

Policies on minimising theissuer’s significant impact on
the environment and natural
resources.

A3

Our Group Environment Policy applies to our operational properties worldwide, guiding ourapproach to the management of the direct impacts of our businesses.

Description of the significant
impacts of activities on theenvironment and natural
resources and the actions
taken to manage them.

A3.1

The most significant impact of our activities on the environment is through our investment
portfolio. More information about how we are reducing the weighted average carbon intensity
footprint of our investment portfolio is available on page 41. More information is available in
the Responsible investment section on page 37.

Reference tables

Prudential plc

Sustainability Report 2023

82

HKEX KPI Requirement

Indicator

Disclosure

Policies on identification andmitigation of significant
climate-related issues whichhave impacted, and thosewhich may impact the issuer

A4

More information is available in Identifying climate-related risks section on page 73, and theManaging and responding to climate-related risks section on page 74.

Description of the significant A4.1
climate-related issues whichhave impacted, and thosewhich may impact, the issuer,and the actions taken to
manage them.

Different scenarios, including <2°C scenarios, have different potential impacts on ourbusinesses, strategy, and financial planning, as described in the Identifying climate-relatedrisks section on page 73.
We have identified short-, medium- and long-term climate-related issues as described in
the Identifying climate-related risks section on page 73. We have taken actions, including
integrating our processes for identifying, assessing, and managing climate-related risks into
our overall risk management, as described in the Assessing climate-related risks section on
page 74.
We also identified climate-related opportunities, as described in the Identifying andresponding to climate-related opportunities section on page 74.

In brief

Our approach to sustainability

HKEX KPI Requirement

Indicator

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Disclosure

SocialInformation on: (a) the
policies; and (b) compliancewith relevant laws andregulations that have asignificant impact on theissuer relating tocompensation and dismissal,
recruitment and promotion,
working hours, rest periods,
equal opportunity, diversity,
anti-discrimination, andother benefits and welfare.

B1

B1.1
Total workforce by gender,
employment type, age groupand geographical region.
Note: The 2021 balances
have been restated to reflect
the consistent treatment oflocal sales agents in our
Africa markets who are notpermanent employees.

Prudential’s policies protect our employees by formalising its responsibilities and thoseof everyone in the organisation. More information on the following policies is available
in the Our Group-wide policies relating to our sustainability strategy section on page 95:

In 2023, there were no confirmed instances of non-compliance in relation to such laws andregulations that would have a significant impact on the Group.
Unspecified
Male
FemaleTotal workforce by employment type

Full TimePart Time
Total workforce by age group

Unspecified
Below 30
30–50
Above 50
Total workforce by region

Asia
AfricaEurope & USA

2023

2022

2021

3.0
6,541.3
8,713.2

18.0
6,299.3
8,363.4

11.0
5,911.6
7,946.1

2023

2022

2021

15,250.1
7.4

14,671.6
9.1

13,854.8
13.9

2023

2022

2021

0
2,698.0
11,428.8
1,130.7

34.0
2,880.9
10,535.4
1,230.4

31.0
2,715.4
10,030.2
1,092.1

2023

2022

2021

13,933.7
1,202.0
121.8

13,399.7
1,126.0
155.0

12,574.5
1,075.0
219.2

Prudential plc

Sustainability Report 2023

83

HKEX KPI Requirement

Indicator

Disclosure

Employee turnover rate bygender, age group andgeographical region.

B1.2

Employee turnover rate by gender

2023

2022†

2021†

Male
Female

18%
16%

24%
21%

26%
23%

Note: These numbers are
representative of the total
turnover including our callcentre staff. We also havea second category for total
turnover excluding call centre
staff and this can be foundin the section on
Empowering our people.

– Discrimination and Harassment Policy– Diversity and Inclusion Policy– Employee Relations Policy– Recruitment Policy– Remuneration Policy– Talent Policy

Total workforce by gender

Reference tables

Employee turnover rate by age group

2023

2022

2021

Below 30
30–50
Above 50

27%
14%
20%

38%
19%
20%

38%
19%
16%

Employee turnover rate by region

2023

2022

2021

Asia
Europe and USA
Africa*Overall

17%
18%
11%
17%

22%
56%
N/A
23%

24%
22%
N/A
24%

*Group Human Resources systems only began recording full-time employee (FTE) turnover
numbers from Africa in 2023.
All 2021–2022 employee turnover data excludes Africa†

Information on: (a) the
policies; and (b) compliancewith relevant laws andregulations that have asignificant impact on theissuer relating to providing asafe working environment
and protecting employees
from occupational hazards.

B2

The Group Resilience Policy and its Health and Safety Standards set the governanceframework for our local businesses to establish, implement and maintain comprehensive
health and safety measures that are focused on the physical and mental health and wellbeingof our employees, contractors, visitors, and others who may be affected by our operations, toas low as is reasonably practicable.

Number and rate ofwork-related fatalities
occurred in each of the past
three years including thereporting year.

B2.1

There were no work-related fatalities in the reporting year (2022: nil; 2021: nil).

Lost days due to work injury.

B2.2

36 incidents resulting in 4 days lost to work-related injury.

Our policy and operational standards are aligned with the global ISO 45001:2018 standards
and include prescriptive minimum requirements for health and safety governance, legal
requirements and programme framework.

In brief

Our approach to sustainability

HKEX KPI Requirement

Indicator

B2.3
Description of occupational
health and safety measures
adopted, and how they are
implemented and monitored.

Policies on improving
employees’ knowledge
and skills for discharging
duties at work. Descriptionof training activities.

B3

B3.1
The percentage of
employees trained by genderand employee category.

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

Prudential plc

Disclosure

HKEX KPI Requirement

Indicator

Disclosure

Occupational health and safety measures employ a framework and methodology based on
ISO 45001 using predictive and reactive management tools that are centrally coordinatedand locally executed. The measures are implemented and monitored using:

The average training hours
completed per employee by
gender and employee
category.

B3.2

Average training hours completed per employee by gender– Defined policies, roles, responsibilities, and governance frameworks;– Legal registers to ensure compliance with relevant laws, regulations, rules, guidelines andcodes issued by relevant regulators; and standards and codes issued by industry bodies
where appropriate;– A comprehensive and sound risk management and internal control systems to identify,
quantify, prevent and reduce risk faced by our people and the business;– Incident reporting and investigation protocols;– Programmes for managing third-party risks in the procurement of equipment and provisionof services;– Provision of appropriate information, instruction, and training;– Employee communication and consultation mechanisms;– Workplace welfare and wellbeing facilities and programmes; and– Mechanisms for monitoring, reviewing, reporting and improving performance.
Our Performance and Learning Policy sets out the importance of our people and frames how
we invest in their development to deliver against our strategy and the future success of theorganisation. This includes our Performance Management Framework.
More information is available in the Empowering our people section on page 50.
Percentage of employees trained by gender

2023

2022

2021

Unspecified
Male
Female

0%
99%
99%

65%
96%
96%

45%
97%
97%

Percentage of employees trained by employee category

2023

2022

2021

Rank and file
Middle level
Top level

98%
99%
99%

96%
93%
95%

96%
99%
99%

Unspecified
Male
FemaleNote: The total training hours
per employee is likely to far
exceed this as the numberof hours that employees taketo complete their nonmandatory training courses
are not wholly captured inour system.
Information on: (a) the
policies; and (b) compliancewith relevant laws andregulations that have asignificant impact on theissuer relating to preventing
child and forced labour.

Average training hours completed per employee by employee category

Top level
Middle level
Rank and file

B4

Sustainability Report 2023

84

2023

2022

2021

N/A
15.01
14.23

8.43
16.04
15.58

5.65
11.22
12.44

2023

2022

2021

16.90
15.39
14.09

11.54
9.91
16.06

6.09
9.19
12.63

We are committed to ensuring that slavery, human trafficking, child labour or any other abuseof human rights has no place in our organisation or supply chain.
The nature of our business means that main risk would be in our supply chain. Moreinformation is available in the Combatting modern slavery section on page 69.

B4.1,
Description of measures toreview employment practices B4.2
to avoid child and forced
labour.

We believe in supporting human rights and acting responsibly and with integrity in everything
we do. These are also reflected within our Group Code of Conduct, which sets out the Group’s
values and expected standards of behaviour for all employees, and in our Group Third-Party
Supply and Outsourcing Policy which describes how we work with suppliers.

Description of steps taken
to eliminate such practices
when discovered.

The nature of our business means that main risk would be in our supply chain. Moreinformation is available in the Combatting Modern slavery section on page 69.

Policies on managing
environmental and social
risks of the supply chain.

B5

Number of suppliers bygeographical region.

B5.1* Data as of 30 September 2023 and 2022

Our Group Code of Conduct outlines the values and standards that are required of each of our
suppliers. Our Group Third-Party Supply and Outsourcing Policy is core to our supply chain
governance and our responsible supplier guidelines cover a range of sustainability topics.
More information is available in the Responsible procurement practices section on page 69.
Asia
AfricaEurope & US
Total

2023*

2022*

10,712
1,844
451
13,007

7,362
2,103
485
9,950

In brief

Our approach to sustainability

HKEX KPI Requirement

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

Prudential plc

Sustainability Report 2023

85

Disclosure

HKEX KPI Requirement

Indicator

Disclosure

B5.2
Description of practices
relating to engaging
suppliers, number of suppliers
where the practices are being
implemented, and how they
are implemented andmonitored.

In 2023, the Group's third-party risk assessment platform, Coupa Risk Assess, continues
to strengthen our visibility of third-party risks such as information and technology security
concerns, data privacy, anti-bribery and corruption and business continuity and resilience.
Through this system we also issued due diligence questionnaires aligned to the principlesof the responsible supplier guidelines.

Description of practices
relating to observing andprotecting intellectual
property rights.

B6.3

Prudential’s brands, being the Prudential and Eastspring names and the Face of Prudence,are considered as our intellectual property. These are protected by a comprehensive process
to maintain registered trademarks in the brand across all of the markets in which we operate.
This is supported by a brand Co-existence Agreement with Prudential Financial and M&G plc.
Where we see infringements of our brand, we take active steps to enforce our rights against
third parties.

B5.3

More information is available in the Responsible procurement practices section on page 61
and the Combatting modern slavery section on page 69.

Description of quality
assurance process and recall
procedures.

B6.4

A description of our quality assurance procedures is available in the Meeting the changing
needs of our customers section on page 30.

Description of practices used
to identify environmental
and social risks along the
supply chain, and how they
are implemented andmonitored.

Indicator

Strategy pillars

Description of practices used B5.4
to promote environmentally
preferable products andservices when selecting
suppliers, and how they are
implemented and monitored.

More information is available in the Responsible procurement practices section on page 61.

In line with the Group-wide Third-Party Supply and Outsourcing Policy, we have introduced
responsible supplier guidelines. Our responsible supplier guidelines cover a range ofsustainability topics. More information is available in the Responsible procurement practices
section on page 61.

Information on: (a) the
policies; and (b) compliancewith relevant laws andregulations that have asignificant impact on theissuer relating to health andsafety, advertising, labellingand privacy matters relating
to products and services
provided and methods ofredress.

B6

Our Customer Conduct Risk Policy includes our Customer Conduct principles and sets out thecore values and standards that the Group expects all employees and persons acting on behalfof it to observe. More information is available in the Meeting the changing needs of ourcustomers section on page 30.

Percentage of total products
sold or shipped subject torecalls for safety and healthreasons.

B6.1

As a life insurer, this is not applicable to our business.

Number of products andservice-related complaints
received and how they aredealt with.

B6.2

33,070 (2022: 37,589).

Our Group Data Policy defines how we should manage data throughout its life cycle andemploy the technology best suited for the business use cases. More information is available
in the Our Group-wide policies relating to our sustainability strategy section on page 95.
Our Privacy Policy governs the protection of data and complies with the General Data
Protection Regulation. More information is available in the Our Group-wide policies relating
to our sustainability strategy section on page 95.

In 2023, complaints per 1,000 policies have remained broadly flat at 2 (2022: 2 complaints
per 1,000 policies in force).
More information on how we deal with customer complaints is available in the Meetingthe changing needs of our customers on page 30.

As a life insurer, product recall procedures are not relevant to our business.

B6.5
Description of consumer
data protection and privacy
policies, and how they are
implemented and monitored.

Our Group Data Policy defines how we should manage data throughout its life cycle andemploy the technology best suited for the business use cases. More information is available
in Our Group-wide policies relating to our sustainability strategy section on page 95.
Our Privacy Policy governs the protection of data and complies with the General Data
Protection Regulation. More information is available in Our Group-wide policies relating toour sustainability strategy section on page 95.
Our Information Security Policy supports our resilient information security programme acrossthe organisation and our commitment to protecting the data entrusted to us by customers.

Information on: (a) the
policies; and (b) compliancewith relevant laws andregulations that have asignificant impact on theissuer relating to bribery,
extortion, fraud and money
laundering.

B7

More information on the following policies is available in Our Group-wide policies relating
to our sustainability strategy section on page 95.
– Anti-Bribery and Corruption Policy– Anti-Money Laundering and Sanctions Policy– Group Escalation Policy– Group Counter Fraud Policy
In 2023, there were no confirmed instances of non-compliance in relation to such laws
and regulations that would have a significant impact on the Group.

B7.1
Number of concluded legal
cases regarding corrupt
practices brought against theissuer or its employees during
the reporting period and theoutcomes of the cases.

Nil (2022: Nil)

B7.2
Description of preventive
measures and whistleblowing procedures, and how
they are implemented andmonitored.

More information is available in the Whistleblowing section on page 71.

In brief

Our approach to sustainability

HKEX KPI Requirement

Indicator

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Disclosure

Description of anti-corruption B7.3
training provided to directors
and staff.

We provide training to our staff to ensure that they are familiar with international standards
and best practice, as well as being well equipped to implement our policies in their respective
markets. Training completion levels are monitored throughout the year.

B8
Policies on community
engagement to understandthe needs of thecommunities where theissuer operates and to ensure
its activities take into
consideration thecommunities’ interests.

Our Community Investment Policy covers how we are committed to working with thecommunities in which we operate as active and supportive members. It also outlines
our strategy for investing in the communities and how we make investments and reportagainst them.

Focus areas of contribution

B8.1

Total Cash contribution by area of focus %

2023

2022

2021 (restated)

Education
Social and welfare
Environment
Cultural
Other
Emergency relief
HealthEconomic development
Payroll giving

57%
30%
2%
0%
4%
3%
4%
0%
0%

52%
39%
0%†
0%†
1%
4%
3%
0%
0%†

51%
31%
2%
0%
1%
7%
7%
1%
0%

While each rounds to 0% on an individual line basis, the sum of environment, cultural, and payroll giving
contributes to 1% in total.

†

Resources contributed to thefocus area.

B8.2

Total Cash contribution by region %

2023

2022

2021 (restated)

Asia
United Kingdom
Africa

95%
0%
5%

95%
3%
2

91%
5%
4%

Over the course of 2023, Prudential invested a total of $13.0 million, a 6% increase versus
2022 ($12.2 million), in community programmes through the Prudence Foundation – ourcommunity investment charity – and other community programmes led by our local markets.
This demonstrated our continued commitment to bringing our sustainability goals to life withaction and investment in the communities we operate in.
More information is available in the Building resilient communities section on page 32.

Reference tables

Prudential plc

Sustainability Report 2023

86

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Prudential plc

Reference tables

Sustainability Report 2023

87

SASB Insurance Standard
SASB Topic

Accounting metric

Code

Disclosure

SASB Topic

Accounting metric

Code

Disclosure

Transparent
Information and Fair
Advice for Customers

Total amount ofmonetary losses
as a result of legal
proceedings
associated withmarketing andcommunication of
insurance productrelated information
to new and returning
customers

FN-IN-270a.1$0 (2022: $0.2m)

Policies designed toincentivise responsible
behaviour

Description of
approach toincorporation ofenvironmental, social,and governance (ESG)
factors in investment
management
processes andstrategies

FN-IN-410a.2

We integrate ESG factors into all our investment decisions. This
complements the traditional financial analysis we conduct, in order
to better manage risk and generate sustainable long-term returns forour customers. ESG integration applies to the entire investment process,and all relevant Group investment teams are expected to demonstrate
how ESG considerations are embedded into investment decisions.

Complaints-to-claims
ratio

FN-IN-270a.2

Total number of complaints received / total claims raised x 1,000 = 13(2022: 17)
Prudential believes that this metric is less applicable to the life insurance
sector, and that a more appropriate metric is the number of complaints
per 1,000 policies in force, which has remained broadly flat at 2(2022: 2 complaints per 1,000 policies in force)

Customer retention
rate

FN-IN-270a.3

87% (2022: 89%) (excludes our joint ventures, China and India entities,
and Takaful business in Malaysia)

FN-IN-270a.4
Description of
approach to informing
customers about
products

More information on the way we communicate with customers and ourapproach to responsible marketing is available in the Meeting thechanging needs of our customers section on page 30, and the
Responsible product development section on page 31.

This includes our asset manager Eastspring, which recently updated
its Responsible Investment Policy to align more closely with that of thePrudential Group, while also allowing flexibility for the investment
strategies of third-party clients (ie non-Prudential clients).

Net premiums written FN-IN-410b.1
related to energy
efficiency andlow-carbon technology

As a life insurer, this metric is not applicable to our business.

FN-IN-410b.2

As a life insurer, this metric is not applicable to our business.

Discussion of products
and/or productfeatures thatincentivise health,safety, and/or
environmentally
responsible actions
and/or behaviours

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

SASB Topic

Accounting metric

Code

Disclosure

SASB Topic

Accounting metric

Environmental Risk
Exposure

Probable Maximum
Loss (PML) of insured
products fromweather-related
natural catastrophes

FN-IN-450a.1

As a life insurer, this metric is not applicable to our business.

Systemic Risk
Management

Total amount ofmonetary losses
attributable toinsurance payoutsfrom (1) modellednatural catastrophes
and (2) non-modellednatural catastrophes,by type of event andgeographic segment(net and gross ofreinsurance)

FN-IN-450a.2

Exposure to derivative FN-IN-550a.1
instruments by
category: (1) total
potential exposure tonon-centrally cleared
derivatives, (2) total
fair value of acceptable
collateral posted
with the Central
Clearinghouse, and (3)total potential
exposure to centrally
cleared derivatives

FN-IN-450a.3
Description of
approach toincorporation ofenvironmental risks
into (1) theunderwriting process
for individual contractsand (2) the
management of
firm-level risks andcapital adequacy

As a life insurer, this metric is not applicable to our business.

Activity Metric

Our annual review process monitors potential climate change impacts
that may affect morbidity, mortality, and persistency levels acrossdifferent regions. We then consider how these factors may impact our
products. We also analyse the distribution of our customers across thesevarious locations to assess their vulnerability to extreme climate events,
in order to improve our understanding of both our exposure, and thatof our customers, to climate risks.
As a life and health insurer, we recognise the potential for climatechange and government policies to impact the assumptions underlying
our underwriting liabilities. Currently, we believe there is insufficiency
of and uncertainty in data that would allow us to reliably use theseassumptions for the valuation of our underwriting liabilities. Thus, theGroup’s assumptions for our life and health insurance business currently
do not include additional assumptions related to the impacts of climatechange. We will continue to engage with our regular experience analysis,
to engage with reinsurers and monitor relevant academic studies. Ifmaterial changes occur, we will consider the financial impacts ofclimate-related risks on our insurance liabilities.

Prudential plc

Reference tables

Total fair value of
securities-lending
collateral assets

Code

FN-IN-550a.2

FN-IN-550a.3
Description of
approach to managing
capital and liquidityrelated risks associatedwith systemic
non-insurance
activities
Number of policies inforce, by segment: (1)property and casualty,(2) life, (3) assumed
reinsurance

FN-IN-000.A

Sustainability Report 2023

88

Disclosure(1) Total potential exposure to non-centrally cleared derivatives$29,621m(2) Total fair value of acceptable collateral posted with the Central
Clearinghouse($628m)(3) Total potential exposure to centrally cleared derivatives$21,916m$16.0mA description of our approach is covered in the Risk section of our
Annual Report and Accounts, under the discussion of the Group’s
principal risks.

Total policies in force, all in life segment:
17,388,924

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

Prudential plc

Sustainability Report 2023

89

TCFD index
TCFD recommendation

Prudential Group response

Location

GovernanceAll sustainability matters, including climate change, are overseenby the Board, which is responsible for determining overall strategy
and prioritisation of key focus areas. This includes climate-related risks
and opportunities, and providing rigorous challenge to managementon progress against goals and targets. The Sustainability governancesection sets out the climate-related responsibilities which have been
assigned to the Board and relevant committees, including theprocesses and frequency by which they are informed about climaterelated issues.

Sustainability governance on page 13
Responsible investment governance on
page 45

Climate-related
responsibilities andaccountability

Identifying climate-related risks on
page 73
Risk governance on page 55 in the Annual
Report and Accounts

Our governance for responsible investment is disclosed in the
Responsible investment governance section.
Prudential treats climate risk as a thematic cross-cutting risk type,with the potential to impact or amplify multiple existing risks that wemanage, as described in the Identifying climate-related risks section.
Our enterprise risk management processes, which is how the Boardand committees are informed on climate related matters, is describedin the Risk governance section of the Annual Report.

How the Board
monitors and oversees
progress against
climate-related goals
and targets

Location

Guidance for All Sectors

Guidance for All Sectors

How the Board andcommittees
incorporate climaterelated issues into
decision-making

Prudential Group response

b. Describe management’s role in assessing and managing climate-related risks and opportunities

a. Describe the Board’s oversight of climate-related risks and opportunities

The processes andfrequency by which
the Board andcommittees are
informed aboutclimate-related issues

TCFD recommendation

All sustainability matters, including climate change, are overseen by
the Board, which is responsible for determining overall strategy andprioritisation of key focus areas. This is discussed in the Sustainability
governance section, as the Remuneration Committee has agreed toattach carbon reduction targets to Executive Directors' 2024
Prudential Long Term Incentive Plan awards. More information canalso be found in the Directors’ remuneration report section of theAnnual Report.

Sustainability governance on page 13

The Risk Committee, another Board-level structure, oversees
environmental and climate-related issues, including theimplementation of the Group’s commitments to decarbonise its
operations and investment portfolio, and other climate-focused
responsible investment commitments. The Risk Committee has aregular item on its agenda in relation to its oversight of climatechange, including progress against our climate targets. In setting
future targets or commitments, the Risk Committee considers andmakes appropriate recommendations to the Board.

Sustainability governance on page 13

Sustainability activities, including climate-related responsibilities andaccountability, are overseen at a management level by the Group
Sustainability Committee, chaired by the Chief Financial Officer, as
described in the Oversight of climate change section. These committees
report to the Board and Board committees, as described in the
Sustainability governance section.

Sustainability governance on page 13
Oversight of climate change on page 73
Responsible investment governance on
page 45

Our governance for responsible investment is disclosed in the
Responsible investment governance section.
Organisational
structure

The climate-related organisational structure is included in the
Sustainability governance, including climate change section.

Sustainability governance, including
climate change on page 14

How management is
informed aboutclimate-related issues

We have implemented appropriate processes by which management
are informed about climate-related issues, as discussed in theManagement oversight section. In addition, the Oversight of climatechange section highlights how the Group Sustainability Committee
oversees climate-related responsibilities and progress, and reports to
the Risk Committee, which has ultimate oversight.

Management oversight on page 13

Prudential treats climate risk as a thematic cross-cutting risk type, withthe potential to impact or amplify multiple existing risks that wemanage, as described in the identifying climate-related risks section.

Directors’ remuneration report on page
198 in the Annual Report and Accounts

Oversight of climate change on page 73
Identifying climate-related risks on
page 73
Risk governance on page 56 in the Annual
Report and Accounts

Our enterprise risk management processes, which is how
management are informed on climate related matters, are describedin the Risk governance section of the Annual Report.
How managementmonitors climaterelated issues

Our management committees actively monitor climate-related
issues, as described in the Management oversight section. The
Group Sustainability Committee, chaired by the Chief Financial
Officer, met five times in 2023. It is informed by other Committee
members, including the Chief Risk and Compliance Officer, andChief Investment Officer.
Prudential treats climate risk as a thematic cross-cutting risk type,with the potential to impact or amplify multiple existing risks that wemanage, as described in the Identifying climate-related risks section.
Our enterprise risk management processes, which is how
management is informed on climate-related matters, is describedin the Risk governance section.

Management oversight on page 13
Identifying climate-related risks on
page 73
Risk governance on page 56 in the Annual
Report and Accounts

In brief

Our approach to sustainability

TCFD recommendation

Strategy pillars

Good governance and responsible business practices

Prudential Group response

Managing climate-related risks and opportunities

Location

TCFD recommendation

Strategya. Describe the climate-related risks and opportunities the organisation has identified over the short, medium, and long term

Guidance for All Sectors
Definition of short-,
medium-, andlong-term time
horizons

We have defined the relevant short-, medium-, and long-term time
horizons, as described in the Assessing climate-related risks section.

Assessing climate-related risks on page 74

Climate-related issues
potentially arising ineach time horizon

Assessing climate-related risks on page 74
We have identified the specific climate-related issues potentiallyarising in short-, medium- and long-term time horizons, as described in
the Assessing climate-related risks section.

Processes used todetermine which risks
and opportunities
could have a material
financial impact on
the organisation

We regularly analyse and assess the potential impact of risks
associated with climate change. Our Group Risk Framework considers
both emerging and significant risks. Climate risks are consideredprincipal risks at the Group level, and subsequently receive enhanced
management focus and reporting. An example includes review of risks
and control self-assessment libraries that support the broader
sustainability strategy.

Identifying climate-related risks on
page 73
Impact on our businesses, strategy andfinancial planning on page 75

Description of risks and We have identified specific risks and opportunities by sector andopportunities by sector geography, as described in the Impacts on assets section, the Impact
on our businesses, strategy and financial planning section, and theand/or geography
Regional impact on our operations section.

Impacts on assets on page 76
Impact on our businesses, strategy andfinancial planning on page 75
Regional impact on our operations on
page 76b. Describe the impact of climate-related risks and opportunities on the organisation’s businesses, strategy,
and financial planning
Guidance for All Sectors
How identified
climate-related issues
have affected ourbusiness, strategy, andfinancial planning

We have considered the impact on the following:– Products and services as described in the Identifying andresponding to climate-related opportunities section;

Identifying and responding to climaterelated opportunities on page 74

Prudential plc

Sustainability Report 2023

90

Prudential Group response

Location– Supply chain and/or value chain, including carbon prices, in the
Regional impact on our operations section, and the Carbon prices
used in scenario analysis section;– Adaptation and mitigation activities in the Progress against our
climate-related targets section;– Investment in research and development in the Understanding
the link between climate and health section– Operations in the Responsible environmental practices section; and– Access to capital in the Impact on access to capital section.

Regional impact on our operations
on page 76

We did not have major strategic acquisitions or divestments during
the year.

Carbon prices used in scenario analysis
on page 75
Progress against our climate-related
targets on page 78
Understanding the link between climate
and health on page 67
Responsible environmental practices
on page 63
Impact on access to capital on page 77

How climate-related
issues serve as an
input to our financial
planning process

Climate-related issues serve as an input to our financial and strategicplanning, as described in the Impact on our businesses, strategy andfinancial planning section.

Impact on our businesses, strategy andfinancial planning on page 75

The impact ofclimate-related issues
on financial
performance

We assess the potential impact of climate-related issues on our
financial performance, as described in the Climate-related scenario
analysis section. We use scenarios to assess the robustness of our
financial and strategic planning, as described in the Impact onfinancial and strategic planning section.

Climate-related scenario analysis on
page 75

Our plans fortransitioning to a
low-carbon economy

We have made GHG emissions reduction commitments, as described Progress against our climate-related
targets on page 78
in the Progress against our climate-related targets section. We haveidentified specific activities for transitioning to a low-carbon economy, Climate Transition Plan
as set out throughout our Climate Transition Plan.

Identifying and responding to climaterelated opportunities on page 74

Furthermore our risk and strategy processes have identified climaterelated risks and opportunities which could have a material financial
impact on our organisation, as described in the Identifying climaterelated risks section, the Impact on our businesses, strategy andfinancial planning section, and the Identifying and responding toclimate-related opportunities section.

Reference tables

The Group’s principal risks on page 59
These risks are prioritised using the processes described in The Group’s in the Annual Report and Accounts
principal risks and the Risk governance sections.
Risk governance on page 56 in the Annual
Report and Accounts

Impact on our businesses, strategy
and financial planning on page 75

Supplemental Guidance for Asset Owners
How climate-relatedrisks and opportunities
are factored into
relevant investment
strategies

We use our strategic asset allocation process to factor in climaterelated risks and opportunities, as described in the Impact on strategic
asset allocation section. We pursue these opportunities through our
responsible investment approach, as described in the Integrating ESG
throughout the investment process section.
Our asset manager Eastspring Investments also factors in ESG
considerations, including climate change, into their responsible
investment strategy.

Impact on strategic asset allocation
on page 77
Integrating ESG throughout theinvestment process on page 46
Eastspring Responsible Investment ReportIn brief

Our approach to sustainability

TCFD recommendation

Strategy pillars

Good governance and responsible business practices

Prudential Group response

Managing climate-related risks and opportunities

Location

TCFD recommendation

Risk management

Guidance for All Sectors

Guidance for All Sectors

We assessed the resilience of our strategy and financial plan against
three different climate scenarios and have confidence that theyremain viable, as described in the Impact on our businesses, strategy
and financial planning section. The assessment considered scenarios
both 2°C or lower and with increased physical climate-related risks, as
described in the Climate-related scenario analysis section.

Impact on our businesses, strategy andfinancial planning on page 75

How our strategy will
be affected byclimate-related risks
and opportunities

We recognise that our business purpose and strategy allows us togenerate climate-related opportunities (including our investments
and products & services) for the Group, as described in the Identifying
and responding to climate-related opportunities’ section.

Identifying and responding to climaterelated opportunities on page 74

We identify climate-related risks that affect our strategy, as describedin the Identifying climate-related risks section, and assess andmanage these risks, as described in the Managing and responding
to climate-related risks section.

Managing and responding to climaterelated risks on page 74

How our strategy
might change toaddress potential risks
and opportunities

Climate-related scenario analysis on
page 75

Identifying climate-related risks on
page 73

We recognise that our business purpose and strategy allows us
to generate climate-related opportunities (including our investments
and products and services) for the Group, as described in the
Identifying and responding to climate-related opportunities section.

Identifying and responding to climaterelated opportunities on page 74

Our strategy may also be impacted by climate-related risks, as
described in the identifying Climate-related risks section, and how
we Assess and manage these risks, as described in the Managing
and responding to climate-related risks section.

Managing and responding to climaterelated risks on page 74

Identifying climate-related risks on
page 73

Prudential plc

Prudential Group response

c. Describe the resilience of the organisation’s strategy, taking into consideration different climate-related scenarios,
including a 2°C or lower scenario

How our strategy isresilient to climaterelated risks andopportunities

Reference tables

Sustainability Report 2023

91

Locationa. Describe the organisation’s processes for identifying and assessing climate related risks

We assess climate-related risks, as described in the Assessing
climate-related risks section, and the Managing and responding
to climate-related risks section. We have appropriate enterprise risk
management processes in place, including for determining therelative significance of climate-related risks in relation to other risks,
as described in The Group’s principal risks and the Risk governancesections of the Annual Report.

Assessing climate-related risks on page 74

Existing and emerging
regulatory
requirements related
to climate change

We consider existing and emerging regulatory requirements related
to climate change, as described in the Assessing climate-related risks
section, and the Managing and responding to climate-related risks
section.

Assessing climate-related risks on page 74

Processes for assessing
the potential size andscope of identified
climate-related risks

We have processes for assessing the size and scope of climate-related Assessing climate-related risks on page 74
risks. To develop a comprehensive view of the potential impacts of
Risk governance on page 56 in the Annual
climate change on our business, the Group Risk Framework considers Report and Accounts
climate-related risks across three time horizons, by taking into accountthe expected benefits and paybacks of risk-based decisions. Thesetime horizons are defined to reflect the periods over which transitionand physical climate-related risks and opportunities could reasonably
emerge. This is described in the Assessing climate-related risks section.

Risk management
processes for
identifying andassessing climaterelated risks

Managing and responding to climaterelated risks on page 74
The Group’s principal risks on page 59
in the Annual Report and Accounts
Risk governance on page 56 in the Annual
Report and Accounts
Managing and responding to climaterelated risks on page 74

More information can also be find in the Risk governance section of
the Annual Report.

A description of theclimate-related
scenarios used

We use climate-related scenarios, including <2°C scenarios, as
described in the Climate-related scenario analysis section. We
identified the related time horizons, as set out in the Assessing
climate-related risks section.

Climate-related scenario analysis on
page 75

A description of how
climate-related
scenarios are used,such as to inform
investments inspecific assets

We use our strategic asset allocation process to inform investmentsin specific assets, as described in the Impact on strategic asset
allocation section. The climate-related scenarios we use in thestrategic asset allocation process are described in the Climate-related
scenario analysis section. We pursue these opportunities through our
responsible investment approach, as described in the Integrating ESG
throughout the investment process section.

Impact on strategic asset allocation on
page 77

Assessing climate-related risks on page 74

Climate-related scenario analysis on
page 75
Integrating ESG throughout theinvestment process on page 46

Definitions of risk
terminology used orreferences to existingrisk classification
frameworks used

Our risk classification framework, with our definitions of risk
terminology used, forms part of our Group Risk Framework, which
can be found in the Identifying climate-related risks section.
More information can be found in the Risk governance sectionof the Annual Report.

Identifying climate-related risks on page 73
Risk governance on page 56 in the Annual
Report and Accounts

Supplemental Guidance for Asset Owners
Engagement activity
with investee
companies

We have adopted an active and impactful approach to asset
ownership, which emphasises direct and constructive dialogue withinvestee companies on sustainability and governance issues, as
described in the Central engagement section.

Central engagement on page 43

In brief

Our approach to sustainability

TCFD recommendation

Strategy pillars

Good governance and responsible business practices

Prudential Group response

Managing climate-related risks and opportunities

Location

TCFD recommendation

Reference tables

Prudential plc

Prudential Group response

Sustainability Report 2023

92

Locationb. Describe the organisation’s processes for managing climate-related risks

Metrics and targets

Guidance for All Sectors

a. Disclose the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk
management process

Managing climaterelated risks

We have processes for managing and prioritising climate-related risks, Assessing climate-related risks on page 74
as described in the Assessing climate-related risks section, and theManaging and responding to climateManaging and responding to climate-related risks section.
related risks on page 74
These are also described in the Group’s principal risks and
The Group’s principal risks on page 59
Risk governance sections in the Annual Report.
in the Annual Report and Accounts
Risk governance on page 56 in the Annual
Report and Accounts

Positioning of our total
portfolio with respect
to the transition to a
low-carbon energy
supply, production,and use

Guidance for All Sectors
Key metrics used tomeasure and manage
climate-related risks
and opportunities– Absolute Scope 1, Scope 2, Scope 3 in the Climate-related
metrics section;– Proportion of executive management remuneration linked toclimate considerations in the Directors’ remuneration report in
the Annual Report.

Progress against our climate-related
We have implemented decarbonisation and coal divestment targets
to prepare the portfolio for the transition to a low-carbon economy, as targets on page 78
described in the Progress against our climate-related targets section.
Responsible investment approachon page 45
We have developed our responsible investment policy, including
our six implementation strategies to actively manage ourportfolio’s positioning, as described in the Responsible investment
approach section.

We describe the following qualitatively:– Amount and extent of assets or business activities vulnerable
to«transition and physical risks in the Impact on assets section,and the Regional impact on our operations section;– Proportion of revenue, assets, or other business activities alignedwith climate-related opportunities in the Identifying andresponding to climate-related opportunities section; and– Amount of capital expenditure, financing, or investment deployed
toward climate-related risks and opportunities in the Responsible
investment approach section and the Integrating ESG throughout
the investment process section.

c. Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organisation’s
overall risk management

Guidance for All Sectors
Integrating climaterelated risks into ouroverall risk
management

We identify, assess and manage climate-related risks, as described in
the assessing climate-related risks section, and the managing andresponding to climate-related risks section. These risks are integrated
into our risk management framework, as described in the Group’s
principal risks and Risk governance sections of the Annual Report.

Assessing climate-related risks on page 74
Managing and responding to climaterelated risks on page 74
The Group’s principal risks on page 59 in
the Annual Report and Accounts
Risk governance on page 56 in the Annual
Report and Accounts

We use a suite of key metrics to measure and manage climate-related Climate-related metrics on page 78
risks and opportunities, as described in the Climate-related metrics
Directors’ remuneration report on page
section, including absolute and intensity metrics.
198 in the Annual Report and Accounts
The following metrics are provided:
Impacts on assets on page 76

We provide, where relevant and applicable, metrics on climate-related
Metrics on climaterelated risks associated risks associated with water, energy, and waste management in the
Hong Kong Stock Exchange requirements section.
with water, energy,
and wastemanagement
How performance
metrics areincorporated into
remuneration policies

We incorporate climate-related performance metrics, as describedin the Directors’ remuneration report section of the Annual Report.

We use carbon prices in our scenario testing, as described in
The internal carbon
prices we use as well as the Carbon prices used in scenario analysis section.
climate-related
opportunity metrics

Regional impact on our operations
on page 76
Identifying and responding to climaterelated opportunities on page 74
Responsible investment approachon page 45
Integrating ESG throughout theinvestment process on page 46

Hong Kong Stock Exchange requirements
on page 81

Directors’ remuneration report on page
198 in the Annual Report and Accounts

Carbon prices used in scenario analysis
on page 75

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

TCFD recommendation

Prudential Group response

Location

TCFD recommendation

Metrics used to assessclimate-related risks
and opportunities

We provide the metrics used to assess climate-related risks in the
Climate-related metrics section. We discuss qualitatively theclimate-related risk management process in the Assessing climaterelated risks section, and the Managing and responding to climaterelated risks section, as well as opportunities from products andservices designed for a lower-carbon economy in the Identifying
and responding to climate-related opportunities section.

Climate-related metrics on page 78

Supplemental Guidance for Asset Owners

Metrics forhistorical periods

We provide historical metrics in the Climate-related metrics section,
so as to allow for trend analysis.

Climate-related metrics on page 78

Forward-looking
metrics

We qualitatively discuss forward-looking metrics in the Forwardlooking metrics section.

Forward-looking metrics on page 79

Methodologies used to We describe the methodologies used to calculate our Climate-related
metrics in our Basis of Reporting, so as to provide a single consistentcalculate or estimate
climate-related metrics description of the methodologies.
Our Scope 1 andScope 2 GHG
emissions andappropriate Scope 3
GHG emissions

Assessing climate-related risks on page 74
Managing and responding to climaterelated risks on page 74
Identifying and responding to climaterelated opportunities on page 74

Basis of Reporting

We provide our Scope 1, Scope 2 and relevant Scope 3 GHG emissions Climate-related metrics on page 78
in the Climate-related metrics section.

Prudential plc

Prudential Group response

Sustainability Report 2023

93

Location

Metrics used to assessclimate-related risks
and opportunities ineach fund orinvestment strategy

Climate-related metrics on page 78
Weighted average carbon intensity (WACI) is useful as a proxy fortransition risk within our investment portfolio, as a higher WACI
usually indicates a gap in alignment with the goals of the Paris
Agreement. Measuring WACI enables us to compare the intensity ofemissions for different portfolios and assess improvements over time.
More information can be found in the Climate-related metrics section.

Metrics considered ininvestment decisions
and monitoring

We use a suite of key metrics to assess climate-related risks andopportunities as well as for investment decisions and monitoring,as described in the Climate-related metrics section, where we explain
how these metrics have changed over time.

Climate-related metrics on page 78

Description of theextent to which assets
we own and our funds
and investment
strategies, where
relevant, are alignedwith a well-below 2°C
scenario

We qualitatively describe implied temperature rise, which can beused to describe the extent to which assets, funds and investment
strategies are aligned with a well-below 2°C scenario, in the Forwardlooking metrics section.

Forward-looking metrics on page 79

Indication of whichasset classes areincluded

The asset classes included are found in the Climate-related metrics
section. Full details are in our Basis of Reporting.

Climate-related metrics on page 78
Basis of Reportingb. Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks

Guidance for All Sectors
Climate-related metrics on page 78

How we calculate our
Scope 1, Scope 2 andScope 3 GHG
emissions

We calculate our GHG emissions in line with the GHG Protocol
methodology, as described in our Basis of Reporting, so as to provide
a single consistent description of the methodologies. We provide ourfull breakdown of Scope 1, Scope 2 and relevant Scope 3 GHG
emissions in the Climate-related metrics section.

Our historical GHG
emissions andassociated metrics, adescription of themethodologies

We provide metrics for historical periods to allow for trend analysis in Climate-related metrics on page 78
the Climate-related metrics section. We describe the methodologies
Basis of Reportingused to calculate the metrics in our Basis of Reporting, so as to provide
a single consistent referable description of the methodologies.

Basis of ReportingIn brief

Our approach to sustainability

TCFD recommendation

Strategy pillars

Good governance and responsible business practices

Prudential Group response

Managing climate-related risks and opportunities

Location

Supplemental Guidance for Asset Owners
Disclosure of GHG
emissions for assets
we own and theweighted averagecarbon intensity(WACI)We disclose the GHG emissions and WACI for our investment
portfolio, as defined in the Climate-related metrics section. The
emissions are calculated in line with the PCAF Standard, as fully
detailed in our Basis of Reporting, so as to provide a single consistentreferable description of the methodologies.

Climate-related metrics on page 78

Other carbon
footprinting metrics
we believe are usefulfor decision-making

We qualitatively discuss other carbon footprinting metrics which we
believe can be useful for decision-making, including forward-looking
metrics, in the Climate-related metrics section.

Climate-related metrics on page 78

Basis of Reportingc. Describe the targets used by the organisation to manage climate-related risks and opportunities and performanceagainst targets

Guidance for All Sectors
Key climate-related
targets

We have set key climate-related targets, as described in the Progressagainst our climate-related targets section, including the time frames
for the targets, the base years from which progress is measured, andthe key performance indicators used to assess progress made. We use
both intensity metrics and absolute metrics.

Progress against our climate-related
targets on page 78

Interim targets

We disclose our interim targets in aggregate in the Progress against
our climate-related targets section, which also includes the associatedmedium-term and long-term targets.

Progress against our climate-related
targets on page 78

Description of themethodologies used to
calculate targets andmeasuresIn our Climate-related metrics section, we describe how our WACI
calculations are aligned with the international protocol of the Net
Zero Asset Owner Alliance. For more information, please see our Basisof Reporting, where we fully describe the methodologies used to
calculate targets and measures, so as to provide a single consistentreferable description of the methodologies.

Climate-related metrics on page 78
Basis of Reporting

Reference tables

Prudential plc

Sustainability Report 2023

94

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

Prudential plc

Sustainability Report 2023

95

Our Group-wide policies relating to our sustainability strategy
Sustainability pillars
and priorities

Simple and accessible
health and financial
protection

GGM policies

Owner and date of last review

To ensure we treat our customers fairly, management of conduct risks is key. Prudential
mitigates conduct risk with robust controls, which are identified and assessed throughthe Group’s conduct risk assessment framework, and regularly tested within its monitoring
programmes. The Group Customer Conduct Risk Policy provides this framework andincludes our Customer Conduct Principles, which set out the core values and standards
that the Group expects all employees and persons acting on behalf of it to observe, andwhich further support our sustainability strategy. These values and standards include
specific requirements regarding customers. In particular, the Group has committed to:Chief Executive Officer
July 2023– Treating customers fairly, honestly and with integrity;– Providing and promoting products and services that meet customer needs, are clearly
explained and that deliver real value;– Maintaining the confidentiality of our customer information;– Providing and promoting high standards of customer service; and– Acting fairly and timely to address customer complaints and any errors we find.
Our Community Investment Policy covers how we are committed to working with thecommunities in which we operate as active and supportive members. This also outlines
our strategy for investing in the communities and how we make investments and reportagainst them.

Chief Executive Officer
July 2023

Responsible
investment

The Responsible Investment Policy articulates how environmental, social and governance Chief Financial Officer
July 2023(‘ESG’) considerations are integrated into investment activities and processes in aconsistent and coherent way. It describes our approach to ensuring external commitments
and internal targets on responsible investment are met, and to ensuring the different
objectives of responsible investment are taken into consideration when making
investment decisions.

Sustainablebusiness

Our Group Environment Policy outlines our approach in understanding and managing Chief Financial Officer
the direct environmental impact of the Group. This covers our measurement, monitoring, July 2023
review and reporting of issues associated with our environmental performance.
Our Diversity and Inclusion Policy sets out how we foster an inclusive workforce andensure all our employees are treated fairly and feel valued, and together have thediversity in skill sets and backgrounds that enriches the organisation. Our policy considersa range of diversity aspects of our employees, including gender, age, ethnicity, disability,
sexual orientation and background.

Chief Human
Resources Officer
May 2023

Our Employee Relations Policy outlines the way we engage our employees andmotivate them to achieve success for the Group: promoting positive relationships with
employees, representative organisations and trade unions, and maintaining a positive
reputation for the treatment of employees.

Chief Human
Resources Officer
April 2023

Sustainability pillars
and priorities

GGM policies

Owner and date of last review

Our Learning Policy provides a framework to ensure that our employees receive
continuous, high-quality, and relevant learning opportunities, to build skills for present
and future success. We recognised that investment in their development is essential tobuilding talent vitality, delivering against our business strategy and shaping the future
success of the organisation.

Chief Human
Resources Officer
May 2023

Our Performance Management Policy sets out the importance of our people andframes how we actively and consistently managing their performance throughout theyear, laying the foundation and investing in their development to deliver against our
strategy and the future success of the organisation.

Chief Human
Resources Officer
May 2023

Our Recruitment Policy covers the Group’s recruitment processes, reflecting fairness,equality of opportunities for all, and for all recruitment decisions to be made withoutbias and with due consideration. The Recruitment Policy aims to provide a set ofprinciples to guide hiring for all involved across the organisation, introducing consistency
in the process and decision-making across the Group, while setting standards to enable
oversight and improve quantitative and qualitative reporting of the recruitment process.

Chief Human
Resources Officer
May 2023

The Discrimination and Harassment Policy reflects our commitment to creating
and maintaining a welcoming, supportive culture in which all can work in a friendly
and professional working environment. This policy prohibits discrimination, harassment,
bullying and other types of misconduct where the behaviour is contrary to Prudential’svalues and standards. Where our people experience or witness inappropriate behaviours,
they are encouraged to report this via a range of available channels, including their line
manager, Human Resources, grievance procedures or Speak Out. Finally, the policy
reinforces Prudential’s zero-tolerance stance over retaliation against reporters of any
concerns or for those cooperating or participating in the investigation of a complaint.

Chief Human
Resources Officer
April 2023

Our Remuneration Policy outlines our effective approach to appropriately rewarding
our employees in a way that aligns incentives to business objectives and enables therecruitment, retention and incentivisation of high-calibre employees in line with our risk
appetite and Group Reward Principles.

Chief Human
Resources Officer
May 2023

Our Talent Policy demonstrates how we attract and select the best people for roles thatwill ensure high performance in the short term and improve the longer-term succession
and talent pipeline. It sets out our fair and effective approach to pursuing this.

Chief Human
Resources Officer
May 2023

The Third-Party Supply and Outsourcing Policy covers how we manage and oversee
our third-party arrangements, through due diligence/selection criteria, contractual
requirements, the ongoing monitoring of such relationships, and reporting andescalation. Additionally, our policy considers the requirements of the UK Modern Slavery
Act and the principles of the UN’s Universal Declaration of Human Rights.

Chief Financial Officer
November 2023

In brief

Our approach to sustainability

Sustainability pillars
and priorities

Good governance andresponsible businesspractices

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

GGM Policies

Owner and date of last review

The Group Code of Conduct details our required standards of business conduct to be
used across the Group, and covers both our employees and individuals or organisations
acting on our behalf. The Code sets out our values around ownership, partnership andstewardship, and the personal standards we adhere to in the areas of: protection fromfinancial crime, avoiding conflicts of interest, managing information, communicating
as a Group and providing equality for our people.

Chief Risk andCompliance Officer
November 2023

The Group Risk Framework describes the Group’s approach to risk management, andthe key arrangements and standards for risk management and internal control that
support the Group’s compliance with Group-wide statutory and regulatory requirements.

Chief Risk andCompliance Officer
July 2023

Our Anti-Bribery and Corruption Policy covers our values for reputation, ethicalbehaviour and reliability. As an organisation we are focused on financial practices thatalign to those values, and we prohibit corruption or bribery within our working practices.

Chief Risk andCompliance Officer
September 2023

Our Anti-Money Laundering and Sanctions Policy outlines how we prohibit money
laundering or terrorist financing in our working practices, setting out how we establish
parameters to prevent this taking place across the organisation and the commitment
we make to comply with sanctions, laws and regulations by screening, prohibiting or
restricting business activity, and following up through investigation.

Chief Risk andCompliance Officer
July 2023

The purpose of the Group Escalation and Investigation Policy is to set the framework
by which the Group can conduct investigations that are in line with its regulatory andlegal obligations, while meeting the demands of a competitive commercial organisation.
The principles set out in this policy are, therefore, designed to enhance commercial
opportunity, while minimising corporate risk.

Chief Risk andCompliance Office
October 2023

Chief Risk and
Our Group Counter Fraud Policy serves to support its business units in developing
Compliance Officer
and maintaining effective fraud risk management frameworks that meet regulatory
July 2023
requirements and protect the interests of customers, shareholders, and employees.
The policy also aims to enhance fraud detection, prevention, and investigation activities
across the Group, and to provide a consistent approach to tackling fraud that safeguards
the Group’s reputation and resources. The policy outlines the roles and responsibilities of
the Group Board, the Group Security function, and the business units in relation to fraud
risk management.
Chief Risk and
Our Group Resilience Policy outlines the principles and requirements for ensuring theCompliance Officer
security and resilience of the Group’s people, assets, and operations. The policy covers
various aspects of physical and travel security, health and safety, and business continuity July 2023
management. The policy also defines the roles and responsibilities of different levelsof governance and oversight within the Group, as well as the processes for reporting,investigating, and responding to incidents and crises. The policy aims to comply with
relevant legal and regulatory obligations, as well as to meet the demands of acompetitive commercial organisation.

Sustainability pillars
and priorities

Reference tables

Prudential plc

Sustainability Report 2023

GGM Policies

96

Owner and date of last review

Chief Information
The purpose of the Group Information Security Policy is to support the business todeliver on customer outcomes, business strategy, and any applicable legal and regulatory Technology Officer
July 2023
requirements by maintaining a secure and adaptable environment to do business. This
policy has been developed to ensure the confidentiality, integrity, and availability of
information systems and IT assets.
Our Group Data Policy is centred on the principle that data must be well governed andeffectively managed through its life cycle. The Policy provides a data, business, people
and technology framework, which defines how we should manage data throughout its
life cycle, and employ the technology best suited for the business use cases.

Chief Information
Technology Officer
July 2023

Our Group Privacy Policy governs the protection of data and complies with the General
Data Protection Regulation. Our Information Security Standard support our resilient
information security programme across the organisation and our commitment toprotecting the data entrusted to us by customers.

Chief Information
Technology Officer
July 2023

Our Speak Out policy sets out our framework and controls relating to whistleblowing.
It is a confidential reporting system that allows employees and other stakeholders toraise concerns about unethical or illegal activity within the Group. The policy aims tofoster a culture of openness, honesty and accountability, and to comply with all relevant
local regulatory and statutory requirements related to whistleblowing. The policy also
provides protection from retaliation for those who report genuine concerns throughthe Speak Out programme.

Chief Risk andCompliance Officer
July 2023

Our Tax Risk Policy includes our processes to manage tax-related risk, by identifying,measuring, controlling and reporting on issues considered an operational, reputationalor regulatory risk.

Chief Financial Officer
June 2023

Our Political Donations Policy outlines our position that as an organisation we do not
donate to political parties. This is defined as covering any political party or candidate or
any other organisation that attempts to elicit support for any political party. It is definedas covering any payment or gift or contribution, direct or indirect, as defined by the UK’s
Political Parties, Elections and Referendums Act 2000. The policy covers expenditure on
engagement activity on public policy discussions and applies across the Group.

Chief Executive Officer
July 2022

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

SECR Report
Our 2023 energy consumption and GHG emissions are disclosed below in accordance with the Streamlined Energy and Carbon Reporting(SECR) framework of the Companies Act 2006 (Strategic and Directors’ Reports). No energy reduction projects were undertaken in the UK
portfolio during 2023. Information on energy reduction initiatives across our Asian and African portfolio are included in the Responsible
environmental practices section. We calculate our GHG emissions in line with the GHG Protocol methodology. Full details on the calculation
methodologies used are available in the Basis of Reporting.
2023

2023

UK and offshore

Global (excluding
UK and offshore)

UK and offshore

Global (excluding
UK and offshore)

UK and offshore

Global (excluding
UK and offshore)

Emissions from activities which the company
owns and controls, including combustion of fueland operation facilities (Scope 1) tCO2e

80

2,027

123

1,522

122

3,954

Emissions from purchase of electricity, heat,steam and cooling purchased for own use(Scope 2, location-based) tCO2e

119

18,215131

19,749122

36,516

Emissions from purchase of electricity, heat,steam and cooling purchased for own use(Scope 2, market-based) tCO2e

26

12,292219

16,719177

34,900Total gross Scope 1 and Scope 2 emissions(location-based) tCO2e

199

20,242

254

21,272244

40,470Intensity ratio Scope 1 and Scope 2 (locationbased): tCO2e/m2

0.02630.06220.02220.06400.01190.0850Intensity ratio Scope 1 and Scope 2 (locationbased): tCO2e/fte

1.88801.3364

1.58751.40281.16752.3354

Energy consumption used to calculate above
emissions: kWh (Scope 1)

438,640

9,701,578

671,652

7,039,834

663,621

19,252,400

Energy consumption used to calculate above
emissions: kWh (Scope 2)

573,330

31,271,772

638,894

32,849,795

559,790

69,984,995

2022

2021

Note: 2021 Global (excluding UK and offshore) emissions data includes the US portfolio, Jackson operations, up to the demerger on
13 September 2021.

Reference tables

Prudential plc

Sustainability Report 2023

97

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

Prudential plc

Sustainability Report 2023

98

Forward-looking statements
This document contains ‘forward-looking statements’ with respect to certain of Prudential’s (and its wholly and jointly owned businesses’)plans and its goals and expectations relating to future financial condition, performance, results, strategy and objectives. Statements that are
not historical facts, including statements about Prudential’s (and its wholly and jointly owned businesses’) beliefs and expectations andincluding, without limitation, commitments, ambitions and targets, including those related to ESG and sustainability, and statements
containing the words ‘may’, ‘will’, ‘should’, ‘continue’, ‘aims’, ‘estimates’, ‘projects’, ‘believes’, ‘intends’, ‘expects’, ‘plans’, ‘seeks’ and ‘anticipates’,
and words of similar meaning, are forward-looking statements. These statements are based on plans, estimates and projections as at thetime they are made, and therefore undue reliance should not be placed on them. By their nature, all forward-looking statements involve risk
and uncertainty.
A number of important factors could cause actual future financial condition or performance or other indicated results to differ materiallyfrom those indicated in any forward-looking statement. Such factors include, but are not limited to:– Current and future market conditions, including fluctuations in interest rates and exchange rates, inflation (including resulting interest
rate rises), sustained high or low interest rate environments, the performance of financial and credit markets generally and the impactof economic uncertainty, slowdown or contraction (including as a result of the Russia-Ukraine conflict and related or other geopoliticaltensions and conflicts), which may also impact policyholder behaviour and reduce product affordability;– Asset valuation impacts from the transition to a lower-carbon economy;– Derivative instruments not effectively mitigating any exposures;– Global political uncertainties, including the potential for increased friction in cross-border trade and the exercise of laws, regulations
and executive powers to restrict trade, financial transactions, capital movements and/or investment;– The longer-term impacts of Covid-19, including macro-economic impacts on financial market volatility and global economic activity
and impacts on sales, claims, assumptions and increased product lapses;– The policies and actions of regulatory authorities, including, in particular, the policies and actions of the Hong Kong Insurance Authority,
as Prudential’s Group-wide supervisor, as well as the degree and pace of regulatory changes and new government initiatives generally;– Given Prudential’s designation as an Internationally Active Insurance Group, the impact on Prudential of systemic risk and other groupsupervision policy standards adopted by the International Association of Insurance Supervisors;– The physical, social, morbidity/health and financial impacts of climate change and global health crises, which may impact Prudential’sbusiness, investments, operations and its duties owed to customers;– Legal, policy and regulatory developments in response to climate change and broader sustainability-related issues, including thedevelopment of regulations and standards and interpretations such as those relating to ESG reporting, disclosures and product labelling
and their interpretations (which may conflict and create misrepresentation risks);– The collective ability of governments, policymakers, the Group, industry and other stakeholders to implement and adhere to commitmentson mitigation of climate change and broader sustainability-related issues effectively (including not appropriately considering the interestsof all Prudential’s stakeholders or failing to maintain high standards of corporate governance and responsible business practices);– The impact of competition and fast-paced technological change;– The effect on Prudential’s business and results from, in particular, mortality and morbidity trends, lapse rates and policy renewal rates;– The timing, impact and other uncertainties of future acquisitions or combinations within relevant industries;– The impact of internal transformation projects and other strategic actions failing to meet their objectives or adversely impacting
the Group’s employees;– The availability and effectiveness of reinsurance for Prudential’s businesses;– The risk that Prudential’s operational resilience (or that of its suppliers and partners) may prove to be inadequate, including in relation
to operational disruption due to external events;– Disruption to the availability, confidentiality or integrity of Prudential’s information technology, digital systems and data (or thoseof its suppliers and partners);– The increased non-financial and financial risks and uncertainties associated with operating joint ventures with independent partners,
particularly where joint ventures are not controlled by Prudential;– The impact of changes in capital, solvency standards, accounting standards or relevant regulatory frameworks, and tax and otherlegislation and regulations in the jurisdictions in which Prudential and its affiliates operate; and– The impact of legal and regulatory actions, investigations and disputes.
These factors are not exhaustive. Prudential operates in a continually changing business environment with new risks emerging from time
to time that it may be unable to predict or that it currently does not expect to have a material adverse effect on its business. In addition,these and other important factors may, for example, result in changes to assumptions used for determining results of operations or reestimations of reserves for future policy benefits. Further discussion of these and other important factors that could cause actual futurefinancial condition or performance to differ, possibly materially, from those anticipated in Prudential’s forward-looking statements can befound under the ‘Risk Factors’ heading of Prudential’s 2023 Annual Report and any subsequent filing Prudential makes with the US Securities
and Exchange Commission, including any subsequent Annual Report on Form 20-F.
Any forward-looking statements contained in this document speak only as of the date on which they are made. Prudential expressly disclaims
any obligation to update any of the forward-looking statements contained in this document or any other forward-looking statements it may
make, whether as a result of future events, new information or otherwise except as required pursuant to the UK Prospectus Rules, the UK
Listing Rules, the UK Disclosure Guidance and Transparency Rules, the Hong Kong Listing Rules, the SGX-ST Listing Rules or other applicablelaws and regulations.
Prudential may also make or disclose written and/or oral forward-looking statements in reports filed with or furnished to the US Securities
and Exchange Commission, the UK Financial Conduct Authority, the Hong Kong Stock Exchange and other regulatory authorities, as well as
in its annual report and accounts to shareholders, periodic financial reports to shareholders, proxy statements, offering circulars, registration
statements, prospectuses, prospectus supplements, press releases, and other written materials and in oral statements made by directors,
officers or employees of Prudential to third parties, including financial analysts. All such forward-looking statements are qualified in their
entirety by reference to the factors discussed under the ‘Risk Factors’ heading of Prudential’s 2023 Annual Report and any subsequent filing
Prudential makes with the US Securities and Exchange Commission, including any subsequent Annual Report on Form 20-F.

In brief

Our approach to sustainability

Strategy pillars

Good governance and responsible business practices

Managing climate-related risks and opportunities

Reference tables

Prudential plc

Sustainability Report 2023

99

Cautionary statements
This document does not constitute or form part of any offer or invitation to purchase, acquire, subscribe for, sell, dispose of or issue, or any
solicitation of any offer to purchase, acquire, subscribe for, sell or dispose of, any securities in any jurisdiction nor shall it (or any part of it)or the fact of its distribution, form the basis of, or be relied on in connection with, any contract therefore.

Basis of Preparation and Caution Regarding Data Limitations
The sustainability-related information contained in this document has been prepared on the following basis:i. The sustainability-related information is unaudited;
ii. All sustainability-related information, positions and statements set out in this document are subject to change without notice;iii. The sustainability-related information included in this document does not constitute any investment, accounting, legal, regulatory
or tax advice or an invitation or recommendation to enter into any transaction;
iv. The sustainability-related information included in this document may have been prepared using models, methodologies and data
which are subject to certain limitations. These limitations include: a lack of reliable data (due, amongst other things, to developing
measurement technologies and analytical methodologies); a lack of standardisation of data (given, amongst other things, the current
lack of international coordination on data and methodology standards); and future uncertainty (due, amongst other things, tochanging projections relating to technological development and global and regional laws, regulations and policies, and the inability
to make use of strong historical data);
v. The models, external data and methodologies used in sustainability-related information included in this document are, or could be
subject to adjustment which is beyond Prudential’s control;
vi. Any opinions and estimates should be regarded as indicative, preliminary and for illustrative purposes only. Expected and actual
outcomes may differ from those set out (as explained in the ‘Forward-looking statements’ paragraph above);vii. Some of the sustainability-related information appearing in this document may have been obtained from public and other sources
and, while Prudential believes such information to be reliable, it has not been independently verified by Prudential and no
representation or warranty is made by Prudential as to its quality, completeness, accuracy, fitness for a particular purpose or
non-infringement of such information;viii. For the purposes of the sustainability-related information included in this document, a number of key judgements and assumptions
have been made. It is possible that the assumptions drawn, and the judgement exercised, may subsequently turn out to beinaccurate. The judgements and data presented relating to sustainability-related information in this document are not a substitutefor judgements and analysis made independently by the reader;ix. Any opinions or views of third parties expressed relating to sustainability-related information included in this document are thoseof the third parties identified, and not of Prudential, its affiliates, directors, officers, employees and/or agents. By incorporating or
referring to opinions and views of third parties, Prudential is not, in any way, endorsing or supporting such opinions or views;
x. Whilst Prudential bears primary responsibility for the sustainability-related information included in this document, it does not accept
responsibility for the external input provided by any third parties for the purposes of developing the sustainability-related information
included in this document;
xi. Whilst third-party industry surveys, publications, consultant surveys and forecasts generally state that the information contained thereinhas been obtained from sources believed to be reliable, the accuracy and completeness of such information is not guaranteed.
Prudential has not independently verified any of the data obtained from third-party sources (whether identified in this document
by source or used as a basis for any beliefs and estimates stated herein), or any of the assumptions underlying such data. Similarly,
internal surveys, industry forecasts and market research, which Prudential believes to be reliable, have not been independently verified;xii. The sustainability-related data contained in this document reflects available information and estimates at the relevant time;xiii. Where Prudential has made use of any methodology or tools developed by a third party, the application of the methodology or tools(or consequences of its application) shall not be interpreted as conflicting with any legal or contractual obligations, and such legal orcontractual obligations shall take precedence over the application of the methodology or tools;
xiv. Where Prudential has made use of any underlying data provided or sourced by a third party, the use of the data shall not beinterpreted as conflicting with any legal or contractual obligations and such legal or contractual obligations shall take precedence overthe use of the data;
xv. This Important Notice is not limited in applicability to those sections of this document where limitations to sustainability-related data,
metrics and methodologies are identified and where this Important Notice is referenced. This Important Notice applies to the wholeof the sustainability-related information included in this document;
xvi. Further development of reporting, standards or other principles could impact the sustainability-related information in this document,or any metrics, data and targets (it being noted that Environmental, Social and Governance reporting and standards are subject torapid change and development); andxvii. While all reasonable care has been taken in preparing the sustainability-related information included in this document, neither
Prudential nor any of its affiliates, directors, officers, employees or agents makes any representation or warranty as to its quality,
accuracy or completeness, and they accept no responsibility or liability for the contents of this information, including any errorsof fact, omission or opinion expressed.

Prudential public limited company
Incorporated and registered in England and Wales

Registered office
1 Angel Court
LondonEC2R 7AG
Registered number 1397169
www.prudentialplc.com

Principal place of business13th Floor
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