Incentivising management and empowering staff with robust climate-governance

Prudential plc provides life and health insurance for 18 million customers across 24 markets in Asia and Africa. Prudential’s leadership at both board and management level places great emphasis on governance for sustainability matters, including climate change. The Group Sustainable Finance Committee (GSFC) was recently established to oversee and manage certain issues and processes susceptible to greenwashing risk, through ensuring transparency and consistency in Prudential’s definition and approach to sustainable finance and qualifying investments. Sustainability has been included as a strategic priority for Executive Directors since 2022, and remuneration is used to incentivize progress on climate change. Carbon-reduction targets aligned with updated WACI targets have now been attached to their Prudential Long Term Incentive Plan (PLTIP) awards for three annual cycles. As of December 2023, sustainability metrics comprise 10% of the total 2024 Executive Director’s PLTIP award, with 5% linked to carbon reduction and 5% linked to gender diversity. To continually strengthen governance, the carbon reduction target is now underpinned by a new investment target on financing the transition.