exo-is/governance-reporting-on-listed-companies huggingface dataset:
Keyword: governance
strategy and governance framework, encompassing role
where we operate.
definitions, risk assessment and a privacy-centric culture.
We integrate privacy principles into our development
The Privacy Center not only fulfills AbbVie’s legal
processes through Privacy by Design, employing privacy-
responsibilities but also reflects our commitment to privacy
enhancing technologies and adhering to a structured data
and transparency regarding the processing of personal data.
lifecycle management approach from collection to deletion,
Users can access information on how their data is used and
ensuring compliance with cross-border regulations.
the robust controls we have put in place to safeguard their
Respecting individuals’ data rights, we manage subject
information.
reques
Keyword: governance
the Privacy Center.Our Approach to ESG Environmental Social Governance 83
2023 ESG Action Report
Cybersecurity
Oversight Cybersecurity Training & Periodic
Assessments
Our cybersecurity program is led by our Chief Information
We rely on complex information technology systems and
Security Officer, who is responsible for assessing and
various software applications to operate our business, and We have implemented a cybersecurity awareness program
managing our information security and technology risks
as such, we have developed a comprehensive cybersecurity designed to educate and train our entire employee network
(including cybersecurity).
program designed to protect our systems and the on how to identify and report cybersecurity threats. Training
confidentiality, integrity and availability of our data.
programs
Keyword: governance
reducing cyber risks.Our Approach to ESG Environmental Social Governance 84
2023 ESG Action Report
Supply Chain Sustainability
Our Approach
We aim to deliver a consistently high-quality supply of innovative medicines
that positively impact people’s lives and we consider our key suppliers to be an Criticality Continuous
Criticality-based Relationship
assessment and monitoring and
extension of our own operations in achieving this. To ensure that our suppliers
controls management
stratification assessment
share and uphold our standards, we maintain a comprehensive supplier
management program built around four central components:
Assurance of Supply for production volumes on a monthly basis. This informs Lake County, IL
decision making about the need to expand capacity,
Because AbbVie delivers vital lifesaving medi
Keyword: governance
manufacturing sites every year and analyze the forecastsOur Approach to ESG Environmental Social Governance 85
2023 ESG Action Report
Drug Shortage Prevention AbbVie’s manufacturing and distribution centers are
strategically located so that critical products and
Drug Shortages pose a public health threat that can delay,
components are manufactured at multiple geographically
and in some cases even deny, critically needed care for
diverse sites operating with resilient and redundant
patients. They can occur at multiple points within the
systems. AbbVie’s Procurement, Quality Assurance and
prescription drug supply chain for many reasons, including
Supply Chain teams also proactively identify and qualify
product quality issues, manufacturing delays, unexpected
backup suppliers, leverage real-time monitoring to map
demand or shortages of raw material
Keyword: governance
Lake County, ILOur Approach to ESG Environmental Social Governance 86
2023 ESG Action Report
Supplier Sustainability Supplier Code of Conduct or services that are patient-facing or are applicable across
multiple AbbVie brands. We also consider suppliers that
Our Supplier Code of Conduct defines our expectations
Our Supplier Sustainability program requires our
provide materials or services that are technically complex
for all suppliers doing business with AbbVie. We expect all
suppliers to maintain fair labor practices, foster worker
and/or difficult to substitute.
suppliers to understand and comply with the principles,
safety, actively assess and manage risks, and maintain
guidelines and expectations set forth in the Code.
To ensure the quality and reliability of our suppliers, we
environmentally responsi
Keyword: governance
for making our calculations more robust and auditable. give due consideration to suppliers that provide materialsOur Approach to ESG Environmental Social Governance 87
2023 ESG Action Report
Supplier Diversity
Supporting diverse suppliers, including underrepresented
populations, women, military veterans and the disabled
community, is important to our EEDI strategy. In 2023, we
spent more than $1.03 billion working with more than 2,500
small and diverse businesses in the United States and
Puerto Rico.
Our Supplier Diversity program enhances our
competitiveness in the market by advancing opportunities
to partner with small, veteran, women- and minority-owned
businesses.
Our Diverse Supplier Mentoring program, in partnership with
Diversity Alliance for Science, provides business owners
with tools, resources and counsel.
We take a broad and active approach to connecting with
these businesses and developin
Keyword: governance
Barceloneta, Puerto RicoOur Approach to ESG Environmental Social Governance 88
2023 ESG Action Report
Key Performance Indicators: Supplier Spend and Diversity 2021 2022 2023
Total Supplier Spend (USD$ Billions) $14.504¹ $15.038¹ $15.188
Total Spend with Small and Diverse U.S. (including Puerto Rico) Suppliers
$715 $897 $1,033
(USD$ Millions)²
Supplier Sites Assessed In-Depth for Quality 470 478 462
Supplier Sites with Greatest Impact on Product Quality and Safety
49% 40% 31%
Assessed In-Depth
¹ The calculation methodology for the 2023 Total Supplier Spend value was updated, and as a result, we are restating the 2021 and 2022 Total Supplier Spend values to align with the new calculation methodology, which
will be used going forward.
² In accordance with the Small Business Administration Standard, suppliers and spen
Keyword: governance
San Francisco, CaliforniaOur Approach to ESG Environmental Social Governance 89
2023 ESG Action Report
Transparency, Accountability
and Reporting
Report Scope and Data Assurance Approach
Boundaries AbbVie is committed to transparently disclosing ESG data
and information and has adopted processes that help
This ESG Action Report covers the period from January 1,
maintain the data integrity of its ESG disclosures. Many of
2023 to December 31, 2023. Unless otherwise stated, the
the KPIs included in this report have been assured through
scope of this report includes data and information from
limited third-party assurance. Our limited assurance
all of AbbVie’s global operations, including all owned and
statements are accessible through our 2023 ESG Action
leased facilities, for which we have operational control.
Report
Keyword: governance
collection and governance. We use this ESG data reporting
annual ESG Action Report prior to publication.
platform to capture and approve our key performance
indicator (KPI) data disclosed in this report. AbbVie is
committed to continually improving existing processes
and implementing new procedures to further improve our
Learn more about AbbVie’s
ESG disclosures.
positions and views on key issues
that affect our business, patients,
employees and stakeholders.
Lake County, IllinoisOur Approach to ESG Environmental Social Governance 90
2023 ESG Action Report
Looking Ahead
Since AbbVie’s inception, our commitment to investing in
innovation, serving patients, and delivering growth has been
the driving force behind our success. We are proud of the
progress we have made
Keyword: tax
investment gains of $0.70, income tax benefit on items excluded from adjusted earnings of $0.56, and foreign currency impact of $0.34.
In this document, we may refer to Aflac Incorporated’s businesses collectively as “Aflac” or the “Company,” the Company’s U.S. businesses as “Aflac U.S.” and the Company’s Japan
businesses as “Aflac Japan.”
3 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Sustainability
at Aflac
In today's environment, there is a demand from both customers and
investors to balance purpose and profit like never before. Call it
corporate social responsibility; environmental, social and governance;
or just doing the right thing. At Aflac, we believe that helping our
stakeholders and the people in
Keyword: tax
expanded to include cancer insurance sales at Tax Partner
implemented a virtual sales system, “Aflac Online Consultation,”
Associations, which are taxpayer associations in the six Kinki-
that enables customers to complete the solicitation process online
region prefectures surrounding Osaka.
from insurance consultations to applications, with our agencies.
Aflac Japan introduced such capabilities ahead of other
Banks
companies in October 2020, and today, Aflac Online
Aflac Japan was represented by 359 banks in Japan at the end
Consultation serves not only as a COVID-19 countermeasure, but
of 2022, or approximately 90% of the total number of banks
is also increasingly being used in conjunction with existing face-
in Japan.
to-face sales methods, for example, to guide customers in remote
* In
Keyword: tax
Income taxes 403 997 (619) 1,141 1,063
Net earnings $ 4,201 $ 4,325 $ 4,778 $ 3,304 $ 2,920
SHARE AND PER-SHARE AMOUNTS
Net earnings (basic) $ 6.62 $ 6.42 $ 6.69 $ 4.45 $ 3.79
Net earnings (diluted) 6.59 6.39 6.67 4.43 3.77
Items impacting net earnings
Realized investment (gains) losses $ (0.70) $ (0.68) $ 0.32 $ 0.02 $ 0.38
Other and non-recurring (income) loss — 0.11 0.04 — 0.10
Income tax (benefit) expense on items excluded from adjusted earnings (0.56) 0.12 (0.10) — (0.11)
Tax reform adjustment — — — (0.01) 0.02
Tax valuation allowance release — — (1.97) — —
Cash dividends paid 1.60 1.32 1.12 1.08 1.04
Weighted-average common shares used for basic EPS (In thousands) 635 674 714 742 770
Weighted-average common shares used for diluted EPS (In thousan
Keyword: tax
Income taxes 1,296 4,339 4,661 5,370 4,020
Notes payable and lease obligations 7,442 7,956 7,899 6,569 5,778
Other liabilities 6,656 6,922 4,576 5,316 3,958
Shareholders’ equity 22,365 33,253 33,559 28,959 23,462
Total liabilities and shareholders’ equity $ 131,017 $ 157,542 $ 165,086 $ 152,768 $ 140,406
SUPPLEMENTAL DATA
Stock price range: High $ 72.70 $ 53.46 $ 57.18 $ 48.19 $ 44.91
Low 52.07 23.07 44.28 41.41 33.25
Close 71.94 44.47 52.90 45.56 43.89
Yen/dollar exchange rate at year-end (yen) ¥ 132.70 ¥ 115.02 ¥ 103.50 ¥ 109.56 ¥ 111.00
Weighted-average yen/dollar exchange rate (yen) 130.17 109.79 106.86 109.07 110.39
24 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Key Operationa
Keyword: tax
dividend tax forms, or direct deposits of dividend
payments, please contact:
ON THE INTERNET:
https://shareholder.broadridge.com/aflac
BY TELEPHONE:
+1.800.227.4756 or +1.706.596.3581
BY EMAIL:
shareholder@broadridge.com or shareholder@aflac.com
Aflac Incorporated
1932 Wynnton Road
Columbus, GA 31999
+1.706.596.3431
79 2022 BUSINESS & SUSTAINABILITY REPORT"If you take care of your employees, they'll take care of the business."- Dan Amos, Aflac Incorporated Chairman and Chief Executive Officer
These Aflac team members are among the 1,003 employees who have been taking care of our policyholders and customers for 25-plus years•:
D,-1 11-1..::·I P. Amos Terri J. Murrell Dcborc1h F. Connell Lindel C. Shchc,1nc Melissa Arm Hcfflin Gregory A. Wilson P,1ulc1 B
Keyword: governance
2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
About Aflac Incorporated Table of
Contents
Aflac Incorporated (NYSE: AFL) is a Fortune 500 company helping provide protection to our
policyholders through its subsidiaries in Japan and the U.S., where it is a leading supplemental insurer
by paying cash fast when policyholders get sick or injured. For more than 67 years, insurance policies
of Aflac Incorporated’s subsidiaries have given policyholders the opportunity to focus on recovery, not 2 A Message from
financial stress. In the U.S., Aflac is the number one provider of supplemental health insurance Daniel P. Amos,
products.* Aflac Life Insurance Japan is the leading provider of cancer and medical insurance in Japan. Aflac Incorpor
Keyword: governance
Aflac Incorporated’s Goal 30 Governance
To provide customers with the best value in
35 Protecting Our
Customers and Data
supplemental insurance products in the
with Cybersecurity
United States and Japan. 37 Political Activity
Report
38 Investments
Long-Term Growth Strategy
42 Environment
47 Workforce
57 Care on Purpose:
Aflac’s Strategic
RELEVANT EXPANSIVE Philanthropy
CUSTOMERS
PRODUCTS DISTRIBUTION
68 Appendix
* LIMRA 2021 U.S. Supplemental Health Insurance Total Market Report
1 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
A Message
from Daniel P. Amos, Aflac Incorporated
Chairman and CEO
Every day we are open for business, we are reminded that one
thing has not changed since our founding in 1955: People de
Keyword: governance
2 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
In 2022 we reported net earnings per diluted share of $6.59 and
adjusted earnings per diluted share of $5.67, excluding the impact “We are continually working on
of foreign currency,* which was the company’s second-best year
leveraging our diverse and productive
in history following a record 2021. This latter measure of
profitability is one of the principal financial measures used to distribution; recognized, trusted and
evaluate management’s performance and allows us to continue
powerful brand; product innovation
fulfilling our purpose as a socially responsible corporation that
and customized, high-quality service;
benefits shareholders and stakeholders alike over the long term.
We a
Keyword: governance
governance initiatives.
• Industry-leading market share and scale in Japan and the U.S.
I continue to believe that our compassionate approach and the
We are pleased to share one remarkable achievement in 2022—
trust we build with those who depend upon us establishes a
our 40th consecutive year of increasing our dividend. We are
stronger brand that consumers, employees and all of our
proud to be able to continue that long track record even amid the
stakeholders want to associate with. This approach ultimately
backdrop of a global pandemic.
helps us generate long-term value for shareholders. We hope that
We at Aflac remain committed to being there for our policyholders you will enjoy what you find on the pages of this report, as well as
in their time o
Keyword: governance
3 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Sustainability
at Aflac
In today's environment, there is a demand from both customers and
investors to balance purpose and profit like never before. Call it
corporate social responsibility; environmental, social and governance;
or just doing the right thing. At Aflac, we believe that helping our
stakeholders and the people in our communities have a better quality
of life is not only the right thing to do, it also makes good business
sense and gives people—customers, employees, sales professionals
and investors—a greater desire to be a part of our company.
Ultimately, we believe this is a more sustainable approach to business
and one that will continue to increase shareholder value. Af
Keyword: governance
4 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
About This Report
At Aflac, we strive to report openly and Reporting Scope and Boundaries
transparently about our organization’s ESG
This report includes financial and nonfinancial information from
strategy and activities by capturing our ongoing
Aflac Incorporated and its reporting segments, Aflac U.S. and
efforts to balance purpose with profit. This Aflac Japan, and covers our environmental, social and governance
strategies, progress, data and performance for the 2022 fiscal
Business and Sustainability Report integrates a
year (January 1 to December 31) unless otherwise noted. All
review of our operations and financial results
financial information is presented in U.S. dollars, unle
Keyword: governance
5 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
of New York (Aflac New York); Continental American Insurance This report uses certain terms, including those that the reporting
Company (CAIC), branded as Aflac Group Insurance; and Tier One frameworks refer to as “Material Topics,” to reflect the issues of
Insurance Company (TOIC); as well as Argus Dental & Vision, Inc. greatest importance to Aflac Incorporated and our stakeholders.
(Argus), a benefits management organization and national network Used in this context, these terms should not be confused with
dental and vision Company. The term “Aflac Japan” refers to Aflac terms such as “material” or “materiality,” as defined by or
Life Insurance Japan Ltd. The term “Aflac Global Inve
Keyword: governance
6 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
About Aflac U.S.
and Aflac Japan
Leading Provider of High-Quality
Supplemental Insurance
By delivering on our promise to be there when our policyholders need us most and by running
our business The Aflac Way, we’ve gained the trust of our millions of policyholders and
customers worldwide who count on us to pay claims fairly and promptly.
PROVIDER OF CANCER AND
MEDICAL INSURANCE IN JAPAN 2022 REVENUE (in billions) 2022 PRETAX ADJUSTED EARNINGS (in billions)
#1
65% 35% 70% 30%
$12.3 $6.5 $3.1 $1.3
PROVIDER OF SUPPLEMENTAL
Japan U.S. Japan U.S.
HEALTH INSURANCE AT THE
WORKSITE IN THE UNITED STATES
#1
MARKET CAP
$44.7
1 2022 NET EARNED PREMIUMS BY SEGMENT
billion
JAPAN U.S.
7%
FY22 REVENU
Keyword: governance
7 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Introduction to
Aflac Japan
Japan’s life insurance market is the third largest in In 2024, Aflac will celebrate its 50th year in Japan. As we look
the world behind the United States and China. As toward this milestone, Aflac Japan has developed the strategic
vision, Aflac VISION 2024, with the aim of positioning Aflac
of the end of March 2022, Aflac Japan was the
Japan as the leading company in “creating living in your own
leading company in Japan’s growing third sector,
way.” Aflac Japan’s Medium-Term Management Strategy
which includes cancer, medical and nursing care provides a roadmap for achieving VISION 2024. Aflac Japan
insurance. Aflac Japan generated solid overall aims to prov
Keyword: governance
8 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
2022 Aflac Japan Financial Highlights
NET EARNED PREMIUMS* TOTAL ADJUSTED REVENUE TOTAL BENEFIT RATIO INCREASED
DECREASED 4.2% TO DECREASED 2.2% TO 170 BASIS POINTS TO
¥1.2 ¥1.6 68.9%
trillion trillion
ADJUSTED NET INVESTMENT INCOME TOTAL ADJUSTED EXPENSE RATIO THIRD SECTOR BENEFIT RATIO
INCREASED 5.5% TO REMAINED FLAT AT INCREASED 260 BASIS POINTS TO
¥351.5 21.5% 59.2%
billion
PRETAX ADJUSTED EARNINGS PRETAX PROFIT MARGIN
DECREASED 3.1% TO DECREASED 30 BASIS POINTS TO
¥399.3 24.9%
billion
* Net earned premiums are net of reinsurance.
9 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Distribution That Reaches Aflac Ja
Keyword: governance
10 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Product Strategy Overview The third initiative is the comprehensive promotion of asset-
forming products (e.g., WAYS and child endowment products) with
Citizens of Japan are covered by a national health care insurance third sector products. To further strengthen its product line-up, in
system that provides a standard level of medical insurance. Amid November 2022, Aflac Japan revised the premium rates for its
Japan’s rapidly aging population and declining birthrate, the whole life insurance product WAYS and its child endowment
national health care system has faced increasing financial strain, insurance to meet the asset formation needs of young and
leading to an increasing level of fi
Keyword: governance
11 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Aflac Japan Insurance Products
Third Sector Insurance
Cancer Medical Nursing Care Work Leave
Cancer Insurance Nursing Care Insurance
In 1974, Aflac pioneered cancer insurance in Japan, and we remain the In September 2021, Aflac Japan launched a new nursing care insurance
number one provider of cancer insurance today. For more than 48 years product, "Aflac Reliable Nursing Care Insurance". This product is
since Aflac introduced Japan’s first cancer insurance, we have revised supplemental insurance that covers the amount equivalent to the co-
our cancer insurance products to match the changing medical payment of public long-term care insurance, with benefits linked to the
environment, t
Keyword: governance
12 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
First Sector Insurance
Life insurance products, including:
PROTECTION TYPE: Life (Term and Whole), GIFT ASSET-FORMATION TYPE: WAYS, Child Endowment
Life (Term and Whole) WAYS*
Aflac first introduced term-life and whole-life insurance products in
WAYS was introduced in 2006. WAYS can be converted to a
1996. These products have smaller face amounts and provide
fixed annuity, medical coverage or nursing care benefits when
death benefits. They are available as stand-alone policies and
the policyholder reaches a predetermined age.
riders. Aflac Japan also launched Prepare Smart Whole-Life
Insurance in 2018, with lower cash surrender value and lower Child Endowment*
premium for non-smokers.
Keyword: governance
13 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Technology and Digital
Investments Drive Productivity,
Service and Value
Aflac Japan is moving forward with digital transformation, or
DX, initiatives.
As the leading company for “insurance for living,” Aflac Japan will
leverage digital technology to offer its customers useful products
and services. Through digital technology, and by combining
insurance services with non-insurance services, Aflac Japan will
create new value in new business areas beyond traditional
insurance that address societal changes. Digital Insurance Shop:
1. Provision of cloud-based digital service In May 2022, Aflac Japan opened a “Digital Insurance Shop” that
helps foster customer awareness of the need for ins
Keyword: governance
14 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Aflac Japan Awards
Aflac receives highest
“Chairman’s Award” at
22nd Telework Promotion
Awards sponsored by Japan
Telework Association
Recognized as one of “2022 Leading
Companies in Health and Productivity
Management” by the Nippon Kenko
Kaigi and the Ministry of Economy, Trade
and Industry
Aflac receives “Minister
of Health, Labour and
Welfare Award First
Prize” in “FY2021
Leading Companies in
Promoting Cancer
Control Measures
Awards”
15 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Aflac Japan Awards
Ranked 3rd overall in the Nikkei WOMAN Best 100 Companies for Women
Aflac recognized in Strategy
Division of Conta
Keyword: governance
16 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Aflac U.S.
Introduction to Aflac U.S.
As part of Vision 2025, we seek to further develop “a world where people are better prepared for
unexpected health expenses.” The need for the products we offer is as strong or stronger than it has ever
been. At the same time, we know consumer habits and buying preferences have been evolving, and we are
looking to reach them in ways other than traditional media and outside the worksite. This is part of our
strategy to increase access, penetration and retention. In the United States, Aflac once again earned the
distinction of being the number one provider of supplemental health insurance products.* We continue to
work toward reinforcing our positio
Keyword: governance
17 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Aflac U.S. Marketing Strategy Aflac expanded its world in 2022 to include a character to
represent the dreaded gap, the Gap Goat. This character debuted
Our marketing strategy centers always on educating individuals in a new commercial campaign, “Aflac Duck vs. Gap Goat,” which
that Aflac closes the gap in what health insurance doesn’t cover. featured two other G.O.A.T.s: Coach Saban and Coach Prime.
This year, we took a deeper dive and looked at where consumers Throughout the campaign, the Gap Goat served as an antagonist
are spending their time and adjusted our media spend who shows up with unexpected medical bills for hard working
accordingly. This meant showing up on more digital
Keyword: governance
18 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Product Solutions + Sales Effectiveness + Service Excellence =
Customers
Aflac’s supplemental insurance policies pay cash benefits directly to the customer to help provide a layer of protection against income
and asset loss associated with an illness or medical event. Policyholders can utilize these benefits to help cope with unexpected
out-of-pocket medical expenses, such as medication, copays and even household expenses. Our broad portfolio of both individual and
group product solutions is designed to provide our policyholders with outstanding value and enable businesses of all sizes to offer their
employees an affordable and comprehensive array of benefits solutions.
As needs chang
Keyword: governance
19 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Aflac strives to be there for consumers when
they need us most.
We continue to see a significant need for Aflac benefit solutions in Network dental & vision products continue to be the second
the marketplace, and we are well positioned to capitalize on that most requested policies after health insurance, with over two-
opportunity. Health care costs continue to rise with minimal wage thirds of small businesses offering these products. With these
growth, and Aflac is here to help solve the significant challenge of added products, Aflac is able to provide a more complete offering
coming up with cash for out-of-pocket expenses. Within the U.S. to employers. During 2022, the Aflac Dental
Keyword: governance
20 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Growth Strategy We continue to make broad-based investments in digital
enhancements and innovation within our U.S. platform, in
Our growth strategy remains consistent and is strongly aligned to
response to rapidly changing market trends. We believe our
the market opportunity. We continue to make strategic
platform investments will contribute to improved persistency and
advancements to our business model and are pleased with the
high customer experience and satisfaction levels. We have also
progress we have made.
continued our One Digital Aflac strategy to create a digital
experience across the employee, customer and distribution
Technology Drives Value and lifecycles—launching new tec
Keyword: governance
21 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Financial Highlights
Aflac Incorporated (NYSE: AFL) Investor Facts
(as of 12/31/22)
The year 2022 marked the 40th consecutive year Aflac Incorporated increased its annual dividend. Including
reinvested cash dividends, Aflac’s total shareholder return increased 26.4% in 2022. This compares with a
10.3% increase in total shareholder return for the S&P Life and Health Index, an 18.1% decrease in the S&P 500
and a 6.9% decrease for the Dow Jones Industrial Average.
We have always managed our business with a long-term view in mind. If an investor bought 100 of our shares
when Aflac was founded in 1955, it would have cost $1,110. After twenty-nine stock dividends and splits, they
would have
Keyword: governance
22 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
ANNUAL CASH DIVIDENDS PAID PER SHARE* PRETAX ADJUSTED EARNINGS BY SEGMENT
(in dollars as of 12/31/22)
Aflac Incorporated has increased its annual dividend for
40 consecutive years. Total cash dividends paid in 2022 were
21.2% higher than in 2021.
$1.60 30% 70%
U.S. Japan
$1.32
$1.04 $1.08 $1.12 NEW ANNUALIZED PREMIUM SALES BY SEGMENT
$0.79 $0.83 $0.87 (in dollars as of 12/31/22)
78% 22%
U.S. Japan
* Adjusted for stock splits
COMPARISON OF 5-YEAR CUMULATIVE TOTAL RETURN* COMPARISON OF 10-YEAR CUMULATIVE TOTAL RETURN*
Among Aflac Incorporated, the S&P 500 Index and the S&P Life & Among Aflac Incorporated, the S&P 500 Index and the S&P Life &
Health Insurance Index Health Insurance Index
Keyword: governance
23 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Selected Financial Data
For the Year (in millions, except for per share amounts) 2022 2021 2020 2019 2018
REVENUES:
Net earned premiums, principally supplemental health insurance $ 15,263 $ 17,647 $ 18,622 $ 18,780 $ 18,677
Net investment income 3,656 3,818 3,638 3,578 3,442
Net investment gains (losses) 363 468 (270) (135) (430)
Other income 220 173 157 84 69
Total revenues 19,502 22,106 22,147 22,307 21,758
Benefits and expenses: — — — — —
Benefits and claims, net 9,153 10,576 11,796 11,942 12,000
Expenses 5,745 6,208 6,192 5,920 5,775
Total benefits and expenses 14,898 16,784 17,988 17,862 17,775
Pretax earnings 4,604 5,322 4,159 4,445 3,983
Income taxes 403 997 (619) 1,141 1,063
N
Keyword: governance
24 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Key Operational Metrics
2022 2021 2020
AFLAC JAPAN
Policies and riders in force* 37,877 38,537 39,064
Annualized premiums in force** ¥ 1,300,951 ¥ 1,360,624 ¥ 1,426,546
New annualized premiums** ¥ 54,765 ¥ 54,764 ¥ 50,852
AFLAC U.S.
Policies and certificates in force* 13,119 13,090 13,145
Annualized premiums in force** $ 5,967 $ 6,003 $ 6,099
New annualized premiums** $ 1,483 $ 1,278 $ 1,093
* In thousands
** In millions
25 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Sustainability Highlights
Topic Goal Progress to Date Alignment
Environment Since 2020, Aflac has achieved carbon neutrality in our Scopes 1
• Develo
Keyword: governance
team and enhanced the governance process.
Investment’s responsible investing framework
by integrating ESG factors into investment Fully allocated the net proceeds from the $400 million
management. sustainability bond issued by Aflac Incorporated (on March 8,
2021) in a senior unsecure note, as reported in the Aflac
• Complete allocation of the net proceeds from the
Incorporated Sustainability Bond Report.
inaugural Sustainability Bond that reinforces the
Company's ESG strategy. Aflac Incorporated continues to integrate Principles for
Responsible Investment (PRI), as a signatory, into its processes
and developing impact investment strategies.
Continue designing impact investing strategies.
Reporting Published the 2022 TCFD Report.
• Continue advancing our reporting and Rec
Keyword: governance
26 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Topic Goal Progress to Date Alignment
Philanthropy Aflac has given My Special Aflac Ducks to more than 21,000
children in the United States, Japan, and Northern Ireland
Battling cancer is difficult enough. As the leading
through 2022.
cancer insurer, we want to be there for children as
they are diagnosed, just as we are for our Aflac and its employees and agents support:
policyholders. Aflac Incorporated aims to put a My
149,000 pediatric patients and their family members who
Special Aflac Duck® in the hands of every child, age
have called Aflac Parents House a home-away-from-home
3 and above, diagnosed with cancer in the U.S.,
while receiving treatment for serious illnesses, like can
Keyword: governance
Corporate Governance In 2022, Aflac Global Security:
Ensure data security and privacy. Updated Aflac Privacy Policy and expanded Data Subject
Access Requests to comply with changing privacy regulations.
Distributed business unit scorecards to senior leadership to
provide a quarterly view of divisional performance against key
security controls.
Completed Cyber Incident Response Global Tabletop Exercise
to validate the Global Crisis Management Plan.
Expanded Management’s Global Risk Committee platform to
extend integrated risk management capabilities for seven new
use cases.
Matured and extended existing controls to address outcomes of
2021 Global Ransomware Preparedness Assessment.
27 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIR
Keyword: governance
28 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Workforce Diversity Community Investment
and Philanthropy
• As of December 31, 2022, women account for 54% of Aflac
• My Special Aflac Duck® is a “smart” robotic companion
Japan employees and 33% of those in leadership roles. Women
designed to help children cope with their cancer and sickle cell
also held 19% of senior management roles. Aflac Japan’s goal is
treatments. Aflac aims to put a My Special Aflac Duck in the
to further increase the percentage of women in line manager
hands of every child, age 3 and above, diagnosed with cancer
positions by 2025.
or a blood disorder in the U.S., Japan and Northern Ireland and
• As of December 31, 2022, 49% of Aflac U.S. and the Company has gi
Keyword: governance
29 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Governance
At Aflac Incorporated, we are committed to a strong
governance strategy, founded on principles of
integrity, transparency and trust. This includes a
responsibility to conduct ourselves with the highest
standards of ethical behavior towards our
customers, shareholders, business partners and
suppliers, government regulators and fellow
employees. This commitment provides a solid
framework for transparent and responsible
corporate governance, which starts at the top of our
corporate structure.
Codes, policies and procedures that shape our corporate
governance framework:
• Aflac Incorporated Code of Business Conduct and Ethics
• Aflac Political Activity Report and Political Acti
Keyword: governance
30 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Aflac Incorporated’s Board of Directors (the “Board”) includes 11 operational execution of the holding company system. This
members with varied backgrounds, ethnicities, genders and framework is referred to as Aflac’s “Global Group Governance.”
experience who guide our strategy and decision-making through Aflac Incorporated’s direct and indirect subsidiaries in each
participation on the following committees. These committees country operate pursuant to Global Group Governance and
provide a core, values-based framework to manage the company maintain management soundness in order to continue providing
in the best interest of our employees, customers, investors products and services that
Keyword: governance
and communities. the trust of customers. Aflac’s Global Group Governance
framework ensures appropriate oversight of and organic
Aflac Incorporated has established and maintains a robust
cooperation between Aflac Incorporated’s direct and indirect
corporate governance framework to meet the expectations of
subsidiaries in accordance with Japanese and U.S. laws
stakeholders through the appropriate oversight of the
and regulations.
GENDER/RACIAL DIVERSITY AVERAGE TENURE
9.9 7
years years
for full Board for independent directors
4
11 Women AVERAGE AGE INDEPENDENT
1 Black or 65.5 91%
BOARD
MEMBERS African
7 American
Men
2 Asian
1 Black or
African American
Aflac Incorporated Global Governance & ESG
31 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Ou
Keyword: governance
corporate governance mechanisms, corporate social responsibility environment and ensure continued efforts to reduce Aflac
and sustainability goals, incorporating ESG-related goals into Incorporated’s carbon footprint in areas such as waste reduction
compensation programs, and risk management policies that and energy conservation.
identify and assess climate and social risks.
The ERM Department, in partnership with Internal Audit, conducts
an annual enterprise-wide risk assessment. Top risks of the
Board Oversight of ESG Company, including ESG risks as appropriate, are escalated to the
Global Risk Committee.
The Board’s Corporate Social Responsibility and Sustainability
Through this annual risk assessment, we use a risk scale to
(CSR&S) Committee is made up of
Keyword: governance
compensation programs, and (c) the Corporate Governance
Committee to incorporate diversity, equity, and inclusion efforts
with regard to the Company’s policies and principles relating to
succession planning and management development. The Audit
and Risk Committee oversees the Company’s policies, process,
and structure related to enterprise risk engagement and
management, which includes ESG risks and opportunities.
Through the CSR&S Committee, ESG-related risks are integrated
into organizational strategy, plans of action, management
32 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Stakeholders’ Prioritization of institutional investors, were toward the lower end of our rankings,
especially Biodiversity and Water Stewardship. A
Keyword: governance
environmental, social and governance topics using a 6-point scale Overall, we believe that the feedback represented in the matrix
where 6 was extremely important. Our stakeholders included reinforces the direction of our sustainability strategy. In addition,
customers (accounts, policyholders), employees, investors, our engagement with investors supports our efforts related to
distribution partners and suppliers, while our executive Energy and Emissions and Climate Change Risk and Resilience.
management and the Aflac Incorporated Board of Directors took The information gathered from this assessment, along with other
the survey to represent business interests. The result is the ESG stakeholder engagements, will be used to inform our strategy
issues prioritization you see in th
Keyword: governance
As the matrix demonstrates, both Governance and Social topics
process, we use trends in our industry, voluntary ESG frameworks
ranked at the top, especially Business Ethics, Privacy and
and standards, ESG rating agency reports, and local, national and
Informational Security, and Ethical Marketing and Promotion.
international ESG-related regulations to inform our decision-
Topics related to employees (e.g., Human Capital Management
making on our most important ESG issues and their prioritization.
and Corporate Culture and Diversity, Equity, and Inclusion) were
also predominately in the top. However, as a life insurer,
Environmental topics, which tend to rank higher among
33 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPE
Keyword: governance
34 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Protecting Our
Customers and Data
with Cybersecurity
At Aflac, safeguarding the information collected on behalf of
the individuals and businesses we serve is of crucial
importance. We are committed to the privacy of individuals
and the protection of data, and we do this by placing great
importance on information security to protect against threats
both external and internal.
Governance Risk Management
This commitment begins at the top of Aflac. Our Board provides Aflac has a comprehensive risk management program that
oversight of Aflac's Global Information Security Program (the performs initial evaluations and ongoing monitoring of the
Program) and has approval rights for our governin
Keyword: governance
35 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Compliance program that ensures Aflac employees, customers, shareholders,
business partners, information, assets, and business operations
are adequately protected in the event of an unplanned business
Aflac has processes in place to evaluate business practices and
disruption. Resilience is accomplished through an integrated
technology against security and privacy policies and standards.
business continuity, disaster recovery, life safety and incident/
We explain how we collect, use and share personal information on
crisis management structure. In 2022 Aflac completed a
the Aflac Privacy Center, and enable individuals to learn how to
successful annual cyber incident response tabletop e
Keyword: governance
36 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Political
Activity Report
Aflac has a long history of participating in the
democratic process; as an entity that is regulated
at the federal and state levels, it’s important that
we engage with elected officials to help us keep
the Aflac promise to our policyholders.
Read more about the Political Activity Report.
“We make it a priority to be
transparent in what we do and
how we operate. I think you start
with asking the question, ‘What’s
the right thing to do?’ When you
ask that question first, the other
things fall in line.”
— Brad Knox
SENIOR VICE PRESIDENT OF FEDERAL
RELATIONS
37 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHR
Keyword: governance
38 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
In 2022, Global Investments established a dedicated ESG team
with members operating from both the U.S. and Japan focused on
enhancing our activity, improving our measurement, monitoring,
and reporting, keeping current with market developments, and
identifying new opportunities. Global Investments’ ESG team
also works closely with Aflac Incorporated’s ESG management
and teams to ensure that GI efforts support broader
corporate objectives.
“Establishing a dedicated ESG team in Global
Investments is a significant step towards supporting
• Investments in private equity and real estate equity funds with
Aflac’s sustainability-related goals for its investment
diverse ownership, staffing, an
Keyword: governance
39 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
$397M Sustainability Bond
Five-year sustainability bond to finance ESG initiatives like affordable housing.
ALLOCATION OF NET PROCEEDS
Use of Proceeds and Impact
TO ELIGIBLE CATEGORY (CUMULATIVE BASIS)
Since the issuance on March 8, 2021, $397 million, which
28% 18%
represents 100% of the net proceeds, has been allocated to four
Renewable Socioeconomic Eligible Categories under the Framework: Renewable Energy,
Energy Advancement Green Buildings, Socioeconomic Advancement and Empowerment
and and Communities. While the Framework permits net proceeds to
Empowerment
$397M be attributed to investments in or financings of Eligible
13%
Sustainability Assets completed up to 36 months before t
Keyword: governance
40 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Aflac Global Ventures
In the context of rapidly changing social and individual
Aflac Global Ventures (AGV) was established in 2016 with a needs, Aflac Global Ventures is actively engaged in
mission to help Aflac Incorporated enhance its strategic and incubating and building ecosystems in the cancer and
innovative focus globally and to enhance and defend long-term
elderly/nursing care space as well as developing
shareholder value. As part of Aflac’s continued focus on growth,
innovative non-insurance products and services while
Aflac Global Ventures strives to pursue investment opportunities
constantly enhancing the customer test experience and
in digital and innovative technological s
Keyword: governance
41 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Environment
Aflac Incorporated is dedicated to the
environment and the health and well-being of
the people we serve. As such, we strive to
Aflac Japan is promoting more strategic and
balance effective and efficient management of systematic environmental management
our operations with responsible environmental through its corporate activities. Starting with
stewardship. We are committed to doing our its Environmental Management Declaration
made in 2019, Aflac Japan has set targets
part to mitigate climate change, conserve
under three key themes: “addressing climate
natural resources and reduce greenhouse gas
change,” “sustainable resource use,” and
emissions to help ensure the long-ter
Keyword: governance
42 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Greenhouse Gas • We attained this result by using more renewable energy and
conserving more energy. To expand our renewable energy
Reduction Goals use, Aflac U.S. installed on-site solar capacity and Aflac Japan
moved to 100% renewable electricity in Aflac Square, an Aflac
Japan-owned building. To conserve energy, Aflac invested in
Aflac is committed to meeting the following greenhouse gas
energy efficient lighting, heating, ventilation, air conditioning,
reduction goals, and we anticipate setting science-based targets,
and other emissions-reduction practices. The company
provided there is no material change in industry and sustainability
reduced its Scope 2 market-based emissions by
Keyword: governance
— 2030 75% Reduction GoalABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Renewable Electricity
• Aflac U.S. has a decade-plus legacy of reducing electricity
consumption in our owned real estate. We were the first
By 2030, Aflac Incorporated intends to use only renewable insurance company in the U.S. known to achieve ISO
electricity in its owned and controlled facilities. To accelerate our 50001:2011 Energy Management Systems certification and the
efforts, Aflac is investing in smart environmental solutions that only insurance company known to achieve both ISO
contribute to a sustainable future.
50001:2011 Energy Management Systems and ISO 14001:2015
Environmental Management certifications. We re-certified
under ISO 50001:2011 in 2019 with zero nonconforman
Keyword: governance
44 2022 BUSINESS & SUSTAINABILITY REPORTABOUT AFLAC GOVERNANCE INVESTMENTS ENVIRONMENT WORKFORCE PHILANTHROPY APPENDIX
Engagement • Free Cycle Event
The Green Committee sponsors an easy way for Aflac’s
employees and departments to pick up supplies through the
Employee Engagement Free Cycle Office Supply Event and save the company money.
While cleaning out unused cubicles, we collected piles of
Aflac is committed to maintaining a sustainable work environment
paper clips, binders, binder clips, rubber bands, post-it notes
that promotes environmental awareness and contributes to the
file folders, and much more. In its twelfth year, the Free Cycle
health and well-being of our employees and the community. Our
Office Supply Event has helped us avoid more than $40,000 in
goal is for every employee to underst