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2020 BUSINESS & SUSTAINABILITY REPORT

Fred Crawford Discusses Aflac Incorporated’s ESG Program

Fred Crawford, Aflac Incorporated President and Chief Operating Officer: “The number one reason Environmental Social Governance (ESG) is important to us is, it’s extremely consistent with the corporate culture we have at Aflac in driving a company's growth and profitability, balanced with an eye toward doing right by our employees, doing right by our policyholders and, of course, proper governance and doing right by our investors.

It's brought a level of formality of specific measurement and expectations in the eyes of the governance side of our institutional investors, index funds who have been very out in front of driving that initiative worldwide around climate, social justice and just strong governance overall.

And then it's also becoming very important to constituencies, such as the rating agencies, regulators and legislators, whether it be in Washington DC or the legislatures that we work with in Tokyo. That has made it absolutely strategically vital for us to be achieving a level that is considered top tier.

And we think that's important in order to attract capital to our company, such that we can continue to grow and then circulate that growth and the profits and capital we generate off that growth back into ESG efforts. And so, it's always important to balance those two – balance the purpose and the profit. We've always had purpose, but now we have the measurement tools and the expectations to bounce off against that.”

Environmental Overview: Managing the Environment Responsibly

David Young, Vice President of Investor and Rating Agency Relations & ESG: “For Aflac and probably for a lot of companies, the greatest challenge is around the environmental aspect because there is a lot of science behind it, and making sure that you're looking at the scientific information and data and conducting the right studies to ensure that you are approaching the risks related to the environment.”

Teresa White, President of Aflac U.S.: “I think of it as an ecosystem that a company lives in. We have to care as organizations – as companies. We have to care about our environment because we exist in that environment. Our employees exist in that environment.”

Yoshinari Kobori, General Manager of the General Affairs Department at Aflac Japan (in Japanese subtitles): “We believe that climate change has an impact on human life. And in the life insurance business, disease and death can make our benefit liabilities increase. How we design our products can have a huge impact; therefore, we believe it’s important to pay attention to climate change.”

Max Brodén, Aflac Incorporated Executive Vice President and Chief Financial Officer: “So our business is a function of the economy that we operate in. If we don't manage the environment properly, there will be additional expenses to society long term and lower growth in the markets where we operate, and ultimately lower profit for us as a company.”

Eric Kirsch, Executive Vice President and Global Chief Investment Officer: “When we think about the business of Aflac, which includes investments, that we want to have purpose and do good for the greater world, and in that light there's many ways to do it. Some of it is through the environment as we think about climate change and we think about technologies that are being developed to improve our climate. Well, we're interested in that, and we have the capital and resources to do that.”

Alfred Blackmar, Vice President of Facilities: “ ‘E’ matters to all groups, including investors. With investors, they're looking for companies that are sustainable – sustainable, being they are going to be here a long time, and the ability to make smart decisions. And Aflac has always been thinking about the future; our investors think to the future, not the present. And that's where Aflac wants to be. We want to be a leader today and a leader in the future on all things environment.”

Rob Holleman, Manager; Facilities, Maintenance & Construction: “Our approach to sustainability from day one has been what we call ‘Smart Green.’ ” In other words, not investing money just to invest money in technology. It has to make sense financially for the company.”

David Young, Vice President of Investor and Rating Agency Relations & ESG: “It's really balancing the profit with the eye toward doing what's right when it comes to the environment.”

Eric Kirsch, Executive Vice President and Global Chief Investment Officer: “Well, you can't just sort of hide in a corner and say, ‘Oh, that happens over in Europe.’ It happens worldwide.”

Yoshinari Kobori, General Manager of the General Affairs Department at Aflac Japan (in Japanese subtitles): “In order to meet the expectations of our customers and shareholders, it is very important for us to take a leadership role in addressing environmental issues that are becoming global problems as well as in our business.”

Eric Kirsch, Executive Vice President and Global Chief Investment Officer: “The good majority of companies, particularly public companies, are global. And if you’re a global company, you're most likely impacting the environment or you're making investments in your company that have some impact to the environment or social good, and it's only gaining momentum and becoming more stronger and important as we go forward.”

Alfred Blackmar, Vice President of Facilities: “It’s important that Aflac not rest on what it's done. It’s important that we continue to build upon what we’ve done to expand it. This is all part of the decisions that we're making today will impact the future, and we understand that.”

Environmental Responsibility in Action: Reducing our Environmental Footprint

Sharon Baker, Supervisor: “Once you get in and start working for Aflac, you realize there's a culture here like nowhere else.”

Rob Holleman, Manager; Facilities, Maintenance & Construction: “We're always looking for ways to put that caring into action.”

Sharon Baker, Supervisor: “In addition to taking care of policyholders, we want to make sure our environment is in a good place.”

David Glover, Strategic Sourcing & Procurement Consultant: “Aflac being a family-oriented company, this kind of stuff comes easy, because you always want to do the right thing.”

Rob Holleman, Manager of Facilities, Maintenance & Construction: “When I first got to Aflac, we had begun to do some simple things like recycling of our paper and cardboard. Over time, we began to increase that focus; increase our recycling efforts. Fast forward to today – we cut our energy usage on a square foot basis by 50%.”

Alfred Blackmar, Vice President of Facilities: “We understand the importance of having a carbon neutral policy. Increasing the amount of solar helps us get there.”

Rob Holleman, Manager; Facilities, Maintenance & Construction: “Our solar initiative culminated in 2017, when we installed our solar array on top of our customer service building, and that was truly a partnership between Aflac, Georgia Power and at the time, Hannah Solar.”

Alfred Blackmar, Vice President of Facilities: “We are focused on the future. What can we do to continue to reduce the amount of energy that we use in our facilities, to increase renewables?”

Alfred Blackmar, Vice President of Facilities: “Somewhere between 12% and 15% of our overall consumption of this building has come from the solar panels, and we're currently in negotiations for a much larger project out at our Corporate Ridge facility.”

Alfred Blackmar, Vice President of Facilities: “We’re looking to the future, and that's where Aflac wants to be. We want to be a leader today and a leader in the future on all things environment.”

Sharon Baker, Supervisor: “It goes well outside of Aflac. It’s our world. The main responsibility of the Green Committee is to bring attention to Aflac’s green activities, our intention of doing things to make our environment better, our recycling efforts that we have within our buildings. Then we have other events that continue to encourage them to bring in their waste. We also have a place where they could bring electronics; what we call our e-waste.”

David Glover, Strategic Sourcing & Procurement Consultant: “E-cycle is our current supplier, and they’re e-Steward compliant. What that means is that when they destroy the devices, they do it in an environmentally safe and effective way. We get a percentage back of those funds, and then those funds go over to the Aflac Cancer Center so they can use them. It's been a good thing all around.”

Rob Holleman, Manager; Facilities, Maintenance & Construction: “Even today, we’re continuing to look at ways to reduce our energy further.”

David Glover, Strategic Sourcing & Procurement Consultant: “At the end of the day, it's the right thing to do.”

Sharon Baker, Supervisor: “Overnight, you're not going to become this person that just wants to save the world, but as you become more and more educated – and that's really what the premise of the Green Ambassador program was is the education, because a lot of people don't do things because they don't know.”

David Glover, Strategic Sourcing & Procurement Consultant: “It's been a great opportunity to help Aflac, you know, reduce their environmental footprint, their carbon footprint. So, if we can make those small incremental changes at Aflac, then those things eventually lead to big changes. And, you know, for Aflac to be out front, so that way other companies can say, ‘Well, you know, hey, if Aflac is doing that, then we can do the same thing, too.’ ”

Rob Holleman, Manager; Facilities, Maintenance & Construction: “On a personal basis, I'm a grandfather. I'm vested in the future of this community, and I've got an 11-year-old grandson and 18-year-old granddaughter. And it gives me pleasure to know that we're playing a small part in making the future better for them than we've enjoyed over the last 30 years here.”

Social Responsibility Overview

Teresa White, President of Aflac U.S.: “Social is the way we treat people. It's the way we interact with the communities around us. It is truly the outward manifestation of our values.”

Dan Amos, Aflac Incorporated CEO and Chairman: “Well, probably part of it is just my family. We've always been inclusive. That's always been an important part of our life, and I don't know how to explain it to you other than it’s the way I've lived and the way I was brought up.”

Brenda Mullins, Vice President of Human Resources; Chief People Officer: “We have been supportive in the community and trying to do the right things, the fair things, the just things for decades.”

David Young, Vice President of Investor and Rating Agency Relations & ESG: “Yes, it starts with our founders who were involved with the Civil Rights movement and goes from there. And really, it's reflected from our Board through executive management down to our ranks.”

Brenda Mullins, Vice President of Human Resources; Chief People Officer: “How do we permeate diversity throughout this organization? Because we have to mirror the community in which we live.”

Dan Amos, Aflac Incorporated CEO and Chairman: “Diversity is important, because you're selling to a diverse group of people. In my staff meeting, if I've got a bunch of 60-year-old white guys, then I really don't have what's going on in America.”

Brad Knox, Senior Vice President of Federal Relations: “From the head of the boardroom and you look around the table and everyone looks like you, you don’t have diversity, which means you can’t have diversity of thought, which means you can’t have diversity built into your system or your company, which means you're missing opportunities to actually engage more people.”

Max Brodén, Aflac Incorporated Executive Vice President and Chief Financial Officer: “If we are not a reflection of society, we cannot produce products that are viable and economical.”

Teresa White, President of Aflac U.S.: “People want to invest in companies that are socially responsible, but certainly, they don't invest to lose money.”

Max Brodén, Aflac Incorporated Executive Vice President and Chief Financial Officer: “Aflac’s core customer base is the middle class in the United States and in Japan. We have a true economic interest to make sure that that middle class is strong and growing.”

Yukari Hashimoto, General Manager, Diversity Promotion, Aflac Japan (in Japanese subtitles): “The business environment is changing dramatically, and customer needs are diversifying. If we don’t flexibly adapt and respond to these changes, we will not be able to win as a company.”

Teresa White, President of Aflac U.S.: “If we don't think that all of that's not connected, we're fooling ourselves. And we can’t, as a corporation, sit outside of that and say, ‘That's not our problem.’ ”

Brenda Mullins, Vice President of Human Resources; Chief People Officer: “Let's look and let's see how we can continue to be more inclusive. What are the things that we need to continue to focus on to make sure that we're being equitable, to make sure that we're being inclusive, because of our diverse environment.”

Yukari Hashimoto, General Manager, Diversity Promotion, Aflac Japan (in Japanese subtitles): “A diverse workforce that is able to express their opinions and work actively and vibrantly, I think it is important to create such a workplace.”

Dan Amos, Aflac Incorporated CEO and Chairman: “That's always been important to us, and I don't think it's any coincidence that it's one of the reasons we've been successful as a company.”

Teresa White, President of Aflac U.S.: “I think it's important that we continue to be a leader because it allows other people to see that you can do the right thing and be profitable. I don't want this to be a moment. I need this to be a movement.”

Social Responsibility in Action

James Mailman, Field Liaison Manager: “Well, a lot of people go to work for a paycheck. That’s it. They don’t care about anything else. Aflac cares about everything else. When I first got out of the Navy, I came here, and I applied to several different places. And I was hoping to get on at Aflac for the simple reason that they take care of people. When I found out their philanthropic deal with the Cancer Center, I just thought that was amazing. They support the Beads of Courage. They've purchased a little NASCAR for the kids. They’ve bought video games, backpacks, books, you know, just things that the kids need for day to day. And it’s really, really took off.”

Kim Huddleston, Experience & Diversity Consultant: “The diversity council was birthed, if you will in 2001, at the request of our CEO Dan Amos, and the main focus of the diversity council was just to carry out the focus on diversity initiatives, whether it was internally or externally.”

Sherricka Day, Consumer Response & Resolution Coordinator: “We all look different. We all have different backgrounds, and we come from different areas. And so you have to acknowledge that and allow for that platform so that we can have those conversations.”

Kim Huddleston, Experience & Diversity Consultant: “A lot of the work that they do comes through the way of education. It also comes in the way of events.”

Sherricka Day, Consumer Response & Resolution Coordinator: “When school rolls around we're doing bookbag drives and school supply drives. We’re on the front lines. When there's a disaster or different things that happen, Aflac is a part of that with giving food and goods. Aflac is really known for its philanthropy, and I'm proud to be a part of that.”

Teresa White, President of Aflac U.S.: “It's very important that we keep a pulse on what's going on outside of this company.”

Brenda Mullins, Vice President of Human Resources; Chief People Officer: “When you have things that happen, like the injustices that happened this year, it’s difficult sometimes to stay ahead of those things. But when you have a company, they hear it and get it. They’re on board immediately. We're able to make a difference.”

Teresa White, President of Aflac U.S.: “We're trying to look at fair representation across the board.”

Brenda Mullins, Vice President of Human Resources; Chief People Officer: “We have our DC team who's sitting at the table with us trying to figure out, ‘Who do we need to have conversation with to talk about these policies and practices that we need to address?’ ”

Brad Knox, Senior Vice President of Federal Relations: “My job here is to really represent Aflac's interests in Washington – that’s from the White House to the Capitol buildings. We’re responsible to make sure that we can see ahead and protect those policyholders, our employees, our shareholders, all those things that matter to the company.”

Teresa White, President of Aflac U.S.: “We have various Senators from different areas come in and talk about how they see social justice, and what they're doing from a government perspective on diversity. I'm not asking people to vote any way, one way or the other. I'm just asking people to be informed and giving people a platform to be able to ask the questions they have.”

Kim Huddleston, Experience & Diversity Consultant: “We had such a strong foundation that when turbulent times hit, that we pivot. And we do it as a team and as a company and we make it work.”

James Mailman, Field Liaison Manager: “They work so hard to take care of not just the policyholders and people who work here and the field force, but then they give millions of dollars to the Cancer Center. Cancer runs rampant in my family. I appreciate that more than I can tell you.”

Kim Huddleston, Experience & Diversity Consultant: “It's a beautiful thing that you just don't find with many companies, and it's one of the beauties of Aflac is their commitment to diversity.

James Mailman, Field Liaison Manager: “Aflac cares about everybody. Aflac cares. That's the bottom line.”

My Special Aflac Duck

Dan Amos, Aflac Incorporated CEO and Chairman: “I think it symbolizes all the things we are and want to continue to be, and that is to help kids and to try to make a difference in their lives.”

Jon Sullivan, Director of Corporate Communications: “Well you know, children are like consumers in a way in that when you give them something that they like, they want to see it advance year in and year out. So, we are constantly adding things to the program.”

Buffy Swinehart, Senior Manager, Corporate Responsibility: “So, this year we actually did a child life care kit.”

Aaron Horowitz; Co-Founder & CEO of Sproutel: “We built a suite of physical medical tools: a stethoscope, an injector, a pulse oximeter, a temporal thermometer. We designed an MRI carry case – an MRI CT scan carry case. All of these tools that can help child life specialists continue this physical medical play with children.”

Buffy Swinehart, Senior Manager, Corporate Responsibility: “We love those items so much. Going forward, we want every child who gets a My Special Aflac Duck to also get those medical accessories.”

Aaron Horowitz; Co-Founder & CEO of Sproutel: “Some of the really fun aspects come in app improvements, so we built into the app something that we call the Music Maker feature. Kids can go in. They can customize all sorts of different music, and when they hit a button, their duck starts to dance along to the music as it's being performed.”

Lindsey Carrick, Aflac Cancer Center Child Life Specialist: “It's a really unique position to be in to have not only, you know, the support of the hospital, but to have the support of the Aflac corporation behind us. It is so powerful knowing that they are constantly seeking to create tools to make our jobs easier and better. It's kind of beyond words for me.”

Buffy Swinehart, Senior Manager, Corporate Responsibility: “It was always the plan to expand to Japan, but we definitely had to move up the time frame once we got a letter from a little boy in Japan who had seen the My Special Aflac Ducks here in the United States and wanted one himself.”

Jon Sullivan, Director of Corporate Communications: “When we saw that, our CEO Dan Amos said that we're going to have to accelerate the program, and we're going to have to bring it to Japan.”

Buffy Swinehart, Senior Manager, Corporate Responsibility: “And so we decided, why wait? Let's go ahead and launch in Japan. It's been very successful there as well.”

Haruka Itoh, General Manager, Social Responsibility Activity Office, Aflac Japan (in Japanese subtitles): “We were able to donate about 300 units through about 20 hospitals and organizations. At the hospitals that received it, we heard that the children were very happy to play with it, and that it made them smile more than before.”

Aaron Horowitz; Co-Founder & CEO of Sproutel: “We’re so excited that Aflac has kicked off a bit of work for this coming year to create really a special package and support materials to use My Special Aflac Duck with patients with sickle cell.”

Dan Amos, Aflac Incorporated CEO and Chairman: “The African American community plays an enormous role in the success of our company, so the ability to be able to help with sickle cell has been very important.”

Jon Sullivan, Director of Corporate Communications: “No child should have to face a diagnosis of cancer, but until we get to that day, Aflac is committed to ensure that terrible diagnosis will be eased as much as we can have that sort of an impact. And the My Special Aflac Duck is having that impact.”

Haruka Itoh, General Manager, Social Responsibility Activity Office, Aflac Japan (in Japanese subtitles): “I want to help as many children as possible who are suffering from painful treatments. We hope to expand our efforts to bring My Special Aflac Duck to more hospitals.”

Dan Amos, Aflac Incorporated CEO and Chairman: “It’s just our way of giving back and telling people, ‘We love you and we want your kids healthy.’ And really, the best gift is the gift to us of being able to give it away.”

Governance Overview: The Aflac Way

Audrey Tillman, Executive Vice President; General Counsel, Aflac Incorporated: “Well, it absolutely started with the founding of the company, and the founders, and their approach to business, and their approach to just life and decency. People want to do business with companies that do things the right way.”

Brad Knox, Senior Vice President of Federal Relations: “I think you start with asking the question, ‘What's the right thing to do?’ When you ask that question first, these other things sort of fall in line.

What assets do we have in place that make sure we can do the right thing?”

Audrey Boone Tillman, Executive Vice President; General Counsel, Aflac Incorporated: “Governance, as I see it, is really how you do things – and how the employees and the leaders go about conducting the business of the company.”

Matt Loudermilk, Vice President; Corporate Secretary: “The methodology – it’s the framework, it’s the structure that governs your business practices. It’s making sure that decisions are made properly.”

David Young, Vice President of Investor and Rating Agency Relations & ESG: “It’s making sure that you have the right oversight and controls in place to make sure that the business is running as it should.”

Tomoya Utsude, Director; First Senior Vice President, Aflac Japan (in Japanese subtitles): “The management team has a responsibility to our customers and society as a whole to ensure that governance is carried out properly. I think it is important for people to know that a company is actively engaged in such initiatives. That’s why many investors choose to invest in our company. We believe that by appealing to people in society, in addition to investors, to think about the importance of these issues is a major element of ESG activities.”

Audrey Boone Tillman, Executive Vice President; General Counsel, Aflac Incorporated: “There’s also a really strong cultural piece. We always want to get to our employees with the thought that the Aflac Way is to do the right thing.”

Brad Knox, Senior Vice President of Federal Relations: “Leadership is top down. Culture is top down, and you can't say we as a company believe ‘X’ when it's not reflected in the leadership.”

David Young, Vice President of Investor and Rating Agency Relations & ESG: “Our original founders were focused on doing what's right, and that included a sense of corporate social responsibility. That has given us a head start, I would say, because for the last 65 years, it's been a part of the fabric of Aflac Incorporated.”

Brad Knox, Senior Vice President of Federal Relations: “It’s the right thing, right? Making sure that we're transparent in what we do and how we operate. People want to invest in something they can trust, and governance is an important piece of that.”

Max Brodén, Aflac Incorporated Executive Vice President and Chief Financial Officer: “If we have strong governance in terms of processes, procedures, to do things right, it should manifest itself in lower risk for the company, i.e., you are making less mistakes.”

Yoshinari Kobori, General Manager of the General Affairs Department, Aflac Japan (in Japanese subtitles): “I believe that this is one of the most important factors in our business activities, and I believe that by firmly implementing this system, we will be able to increase the value of the company and provide value to our customers, which in turn will benefit all of our shareholders.”

Brad Knox, Senior Vice President of Federal Relations: “We’ve been in the conductor’s seat from the beginning. We have been doing those things that, you know, investors are looking for. These things come down to what sustainable processes have you put in place to make sure that this continues beyond a particular person.”

Audrey Tillman, Executive Vice President; General Counsel, Aflac Incorporated: “I'm grateful for the focus in the industry and in corporate America, but it's not anything new for Aflac. It's what we do and what we will continue to do.”

Governance in Practice

Ken Janke, Senior Advisor; retired: “You can’t operate in a vacuum. Aflac is part of a community. You can define it as narrowly as Columbus, Ga., but I think everyone would tell you that Aflac’s community is every market that it operates in. Governance can apply to a lot of aspects of Aflac or any business.”

Audrey Tillman, Executive Vice President; General Counsel, Aflac Incorporated: “We've got lots of policies and lots of guidelines that we utilize when conducting our business, but it absolutely started with the founding of the company and the founders.”

Brad Knox, Senior Vice President of Federal Relations: “We have a culture where we can have a conversation with business leaders and say, ‘Hey, are you being intentional about your new hires? Are you being intentional about the money that you're spending with vendors? Are you being intentional about the dollars that you're investing?’ And, because we are able to have those conversations, no one is put off by it. In fact, now, it's expected.”

Matt Loudermilk, Vice President; Corporate Secretary: “One way to look at governance is: It is the framework around which you build your business. It is the structure that governs your business practices, making sure that decisions are made properly.”

Ken Janke, Senior Advisor; retired: “We always did the right thing. We did the right thing by the customers, you know, by our policyholders, our claimants, our employees and our shareholders. And that’s just the tone that’s set to the top and it works its way throughout the entire organization. It morphed into the Aflac Way, which is code of conduct starts really at the top. And if you don't have it there, you'll never have it throughout the organization.”

Audrey Tillman, Executive Vice President; General Counsel, Aflac Incorporated: “The Aflac Way is a series of principles that guide every employee. It just sets, in a very formal way – but plainspoken –what the expectations of all of us are. Nobody is immune from what we say good governance, good teamwork, good work is.”

Ken Janke, Senior Advisor; retired: “So it's definitely evolved and it's broadened to not just speak to the integrity of the financial statements, but social responsibility and the community and a lot of other things, all of which are important not only to the company and the community, but its shareholders.”

Audrey Tillman, Executive Vice President; General Counsel, Aflac Incorporated: “We have our Code of Conduct that everyone has to have training on every year, and it goes through and it spells out what the expectations are specifically with respect to certain policies. And it's in furtherance of the Aflac Way, and a lot more detailed than the Aflac Way. Both of those documents – between the two of them – you have a very real understanding of what the expectation is of you as an Aflac team member.”

Matt Loudermilk, Vice President; Corporate Secretary: “The company is managed for the long term, so long-term investors should be aligned with the business strategy. That has always been really the focus is those ... those long term shareholders.”

Ken Janke, Senior Advisor; retired: “That's the thing that needs to be remembered that when you're dealing with investors, they're actually owners, so they have to be treated with respect. There were some individuals that I had known for 20 years. They had an investment in Aflac that was part of their retirement plan. You have relationships with them, and you have relationships with portfolio managers and analysts and again, what they expect is just the truth.”

Matt Loudermilk, Vice President; Corporate Secretary: “Why is it important to have a skeleton, you know? Why is it important to have rafters on your roof? It holds the company together. I mean, without it, the decision process breaks down. You're not funneling information in the right way in order for a decision to be made.”

Audrey Tillman, Executive Vice President; General Counsel, Aflac Incorporated: “Integrity, honesty and transparency, along with the policies that support that around the company, it's everything. “It starts there, and everything else we do bills up on that.”

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