2019 ESG REPORT
GOVERNANCE. SOCIAL. ENVIRONMENTAL.
Aflac's goal is to be transparent in its reporting.
Select the tiles below to learn more about Aflac's alignment with the Global Reporting Initiative, UN Sustainable Development Goals, Task Force on Climate-related Financial Disclosures and the Sustainability Accounting Standards Board.
Corporate responsibility oversight
TCFD
GRI 102-22
Board of directors
GRI 405-1
Cybersecurity/data privacy system
GRI 418-1
Business ethics and anti-corruption policy
GRI 102-17
SDG16
Annual employee ethics training
GRI 102-17
Supplier Code of Conduct
GRI 413-1
Political contributions transparency
GRI 415-1
SDG16
Transparent information and fair advice for customers
GRI 417-1
SASB FN-IN-270a.1, FN-IN-270a.4
Incorporation of environmental, social and governance factors in investment management
SASB FN-IN-410a.1, FN-IN-410a.2
Diversity and inclusion
GRI 405-1
SDG 4 5
Gender diversity
GRI 102-8, 405-1
SDG 5
Global workforce
GRI 102-8, 405-1
Equal opportunity policy
GRI 406-1
SDG 4
Equitable compensation practices
GRI 405-2
SDG 5
Leaving our duckprints
GRI 413-1
Energy and environmental stewardship
TCFD
GRI 307-1
SDG 7 12 13
Energy reductions
TCFD
GRI 302-3, 302-4
SDG 13
Carbon emissions reductions
TCFD
GRI 305-1, 305-2, 305-4, 305-5, 307-1
SDG 13
Waste and responsible consumption
GRI 302-5
SDG 12
Governance
Corporate responsibility oversight
TCFD
GRI
102-22
Aflac Incorporated governance, as described in the Proxy Statement, includes corporate responsibility oversight by the board of directors' Corporate Social Responsibility and Sustainability Committee. The committee sets our corporate social responsibility (CSR)/sustainability performance objectives, monitors implementation and performance of objectives, and oversees progress made against our social and environmental goals.
Operationally, our CSR working group is comprised of company officers who are integral in steering the strategy and performance of the Company, and also represent various Aflac stakeholder groups.
Aflac Incorporated's Proxy Statement.
Governance
Board of directors
GRI
405-1
The board oversees an enterprise-wide approach to risk management designed to achieve organizational and strategic objectives, to improve long-term performance and to enhance shareholder value. Risk management requires more than just understanding the risks we face and the steps management takes to manage those risks. The board also must understand what level of risk is appropriate for the Company. The directors are equipped to make all of these determinations because they are integral to the process of setting the Company's business strategy.
Aflac Incorporated's board of directors
91%
Independence
64%
Diversity
45%
Industry Expertise
Governance
Cybersecurity/data privacy system
GRI
418-1
A dedicated information security team detects and blocks millions of attacks per month, protecting policyholders and employees.
Aflac Incorporated's Privacy Policy.
Governance
Business ethics and anti-corruption policy
GRI 102-17
SDG16
For 13 consecutive years, Aflac has been recognized by Ethisphere as one of the World's Most Ethical Companies.
At Aflac, our values form the foundation on which we build relationships of trust with our fellow employees, customers, shareholders, business partners and suppliers, government regulators. These values — teamwork, respect, fairness, honesty, integrity and responsibility — are the same values upon which the company was founded. This Code of Business Conduct and Ethics (our "Code") shows us how to apply these values to our everyday business conduct.
Aflac Incorporated's Code of Business Conduct and Ethics.
Governance
Annual employee ethics training
GRI 102-17
Aflac Incorporated's anti-fraud teams monitor, investigate and stop fraudulent claim submissions from inside and outside the company.
In 2019, for example, Aflac U.S. and Aflac Japan provided ethics training through their e-learning program on topics such as Aflac's Code of Business Conduct and Ethics and compliance to all employees, which includes more than 10,000 employees and executives.
Governance
Supplier Code of Conduct
GRI 413-1
At Aflac, we believe acting ethically and responsibly is not only the right thing to do, but is also the right thing to do for our business. Aflac is the only insurance company to be named to the Ethisphere Institute's annual list of World's Most Ethical Companies every year since its inception.
Aflac's Supplier Code of Conduct
Governance
Political contributions transparency
GRI 415-1
SDG16
Aflac is firmly committed to good governance and corporate citizenship. Part of this commitment involves being fully participatory in the democratic process. Aflac, as stewards of the trust that our policyholders, employees, independent agents, shareholders and communities place in us, understands the importance of all of our constituencies having a voice to ensure their rights and values are protected. By engaging in the legislative process, we secure that voice for them.
Aflac's Political Activity Report.
Governance
Transparent information and fair advice for customers
GRI 417-1
SASB FN-IN-270a.1, FN-IN-270a.4
In accordance with Securities and Exchange Commission requirements, Aflac Incorporated discloses all material legal proceedings, other than ordinary routine litigation incidental to the business, in its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. In 2018, legal proceedings and/or losses, if any, associated with marketing and communication of insurance product-related information were de minimis.
With a wide range of customers, we leverage our employees, data and technology to inform policyholders and improve their experience.
Aflac Japan has formulated and announced its customer-centric best practice policy and established the framework periodically confirming the content of initiatives based on the policy and disclosing on its website the results thereof.
Aflac Japan employs FinTech to respond to customer comments and suggestions. Aflac Life Insurance Japan is the first in Japan's life insurance industry to provide a 24-hour, 365-days-per-year cash receipt service at convenience stores when returning premiums to insurance policyholders.
Aflac has enhanced customer convenience through the provision of braille forms for the visually impaired and sign language translation services for the hearing impaired. Through our independent agents in the U.S., MyAflac Resource Center, MyAflac App and other supplemental insurance product videos, we continuously educate, engage and inform our customers.
Governance
Incorporation of environmental, social and governance factors in investment management
SASB FN-IN-410a.1, FN-IN-410a.2
Aflac Global Investments manages more than $120 billion in general accounts assets at the end of September 2019, which are primarily fixed income securities. Our largest holdings are in government and sovereign, industrial, financial institutions, utility, real estate, local authorities and agencies.
For a discussion of our investment portfolio, please see Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018.
Aflac Global Investments currently has a multi-pronged approach to ESG investing and continues to adapt our ESG integration processes. Our internal ESG scoring system uses a mixture of E, S and G external and internal factor indicators to construct a comprehensive rating for securities.
These ESG scores are viewed as supplementary data to the dozens of financial metrics we use in our credit underwriting analysis. Low ESG scores of an issuer will be discussed so far as it could impact the credit quality or future cash flows of an issuer.
Our external equity managers have engaged management teams on ESG issues. Companies on the low end (with a 1 or 2 score) will be addressed in a typical credit discussion.
We have invested in Tokyo Metropolitan green bonds and will continue to look for opportunities to invest in other green and social bonds so long as it meets our strict credit underwriting process and return requirements.
Social
Diversity and inclusion
GRI 405-1
SDG45
Our commitment to maintaining a diverse corporate culture highlights our commitment to including people who represent different viewpoints and also shows the importance of maintaining a balance of historical perspectives with fresh viewpoints and new ideas at all levels of the company.
Aflac Japan's 2020 target is to have 30% of leadership roles filled by women by 2020, and it achieved that goal one year ahead of schedule. Aflac Japan's 2025 target is to have 30% of line manager positions filled by women by 2025.
At Aflac U.S., 66% of all employees are women and 56.8% of new hires were women. Fourty-eight percent of all new hires were ethnic minorities, while 32.74% of all new hires were women and ethnic minorities.
Social
Gender diversity
GRI 102-8, 405-1
SDG5
We believe fostering and welcoming all forms of diversity in our daily operations, throughout our management team and on our board enhances our ability to respond to our constituents the best way we can — The Aflac Way.
Aflac Incorporated women in the workforce
(in percent)
66%
Aflac U.S.
51%
Aflac Japan
Aflac Incorporated women in middle management
(in percent)
35%
Aflac U.S.
16%
Aflac Japan
Aflac Incorporated women executives
(in percent)
35%
Aflac U.S.
17%
Aflac Japan
Social
Global workforce
GRI
102-8, 405-1
We believe our employees are the heart and soul of our company, and we do everything we can to keep them as part of our growing Aflac family.
Aflac Incorporated
(Global workforce in percent)
43%
Aflac U.S.
57%
Aflac Japan
Social
Equal opportunity policy
GRI 406-1
SDG4
We must each embrace diversity and work to promote equal opportunity at every level of our company. This means that we make all employment decisions based on merit and not on a person's race, color, national origin, country of citizenship, veteran status, medical condition, religion, age, gender, sexual orientation, gender identity, marital status, disability or any other basis prohibited by law.
Aflac Incorporated's Code of Business Conduct and Ethics.
Social
Equitable compensation practices
GRI 405-2
SDG5
As a top employer in the insurance industry, we recognize that a sound compensation process is a big part of what makes Aflac an employer of choice and ensures that we provide equal pay for equal work.
Aflac works with nationally recognized compensation consulting firms to aide in the review of compensation practices, including the competitiveness of pay levels, design structures, market trends and other technical considerations that validate the consistency, legitimacy and equitability of the Company’s compensation practices and processes.
Aflac Incorporated's 2018 CSR Report.
Social
Leaving our duckprints
GRI 413-1
Aflac's steadfast philanthropic initiatives and volunteerism are grounded in "leaving our duckprints."
In the U.S., employees and independent sales agents donated more than $140 million to support research and treatment for childhood cancer and the Aflac Cancer and Blood Disorders Center through 2019. Volunteer hours, largely throughout our Southeastern U.S. and Japanese business hubs, collectively totaled 15,356 hours (a 29% increase year-over-year).
In Japan, we support those facing childhood cancer through initiatives such as the Aflac Parents House, where children being treated for diseases such as childhood cancer and their families can stay at a low price; scholarships for high school students who have lost their parents to cancer or who have experienced childhood cancer themselves; and Gold Ribbon fundraising activities and more, including things like improving the cancer screening rate in Japan.
Aflac Incorporated's 2018 CSR Report.
Environment
Energy and environmental stewardship
TCFD
GRI 307-1
SDG71213
Aflac Incorporated's leadership in corporate responsibility is centered around limiting the Company's carbon footprint and ultimately helping make our communities, cities and planet a better place.
Risks including climate change, natural disasters, epidemics and related risks are identified and evaluated based on financial impact and probability. These risk profiles are monitored, and every three months our "Risk Register" is reported to the management Global Risk Committee (GRC) and its interdepartmental executives. Overall, Aflac Incorporated believes environmentally friendly and prudent business actions serve to enhance our corporate reputation, improve talent recruitment and retention, and reduce business expenses, making them integral to our performance.
Aflac U.S. is ISO 14000 certified in its operations. Before that, Aflac became the first insurance company in the U.S. to be ISO 50001 Energy Management System registered, which represents the latest best-practice in energy management. We became recertified in 2019 with zero nonconformance issues.
Aflac Japan's Chofu Square and the Aflac U.S. CSC building are LEED Gold certified. In addition, we installed 500 solar panels on one of our Columbus, Georgia, buildings and in the U.S., 86% of our eligible space has earned the Environmental Protection Agency's Energy Star Rating. Our data center was the 10th data center in the U.S. to become Energy Star certified.
Environment
Energy reductions
TCFD
GRI 302-3, 302-4
SDG 13
Through sustained and deliberate energy-saving measures, the company has reduced its total electricity consumption for corporate real estate by 3.5% this year.
Since 2007, the electricity consumption in Aflac U.S. has been reduced by over 50% KWH per square foot. This has saved Aflac U.S. nearly $18 million in expenses and successfully marks the goal of reducing electricity consumption in the U.S. by 50% by 2025 against the 2007 baseline. This year, we plan to revise our goal and expand to our Japanese buildings and facilities.
Environment
Carbon emissions reductions
TCFD
GRI 305-1, 305-2, 305-4, 305-5, 307-1
SDG 13
The absolute Scope 1 emissions (by facilities) in Aflac U.S. for 2018 were 2,653 mtCO2e (metric tons of carbon dioxide equivalents). This represents more than a 60% reduction since the 2007 baseline (6,805 mtCO2e).
The Scope 2 emissions (location-based) in Aflac U.S. for 2018 were 11,396 mtCO2e, representing a 8.5% decrease year over year and a 61.7% reduction from the 2007 baseline of 29,765 mtCO2e.
In 2018, Aflac Japan's Scope 1 and Scope 2 (location-based for Aflac Chofu Square) emissions decreased by about 48% since our 2004 baseline of 5,815 mtCO2e. Aflac Japan's 3,040 mtCO2e Scope 1 and Scope 2 emissions in 2018 represent a 5.3% decrease from the prior year.
Aflac Japan has increased the ratio of hybrid cars used by sales employees, reducing gasoline consumption by 34% since 2016.
Aflac U.S. and Aflac Japan Scope 1 and 2 Emissions in MT
| YEAR | Scope 1 | Scope 2 | Total | Change |
| 2007 | 7,617 | 33,795 | 41,412 | |
| 2017 | 4,038 | 14,325 | 18,363 | |
| 2018 | 3,200 | 13,890 | 17,090 | -24,322 |
| Reduction | 58.0% | 58.9% | 58.7% |
Aflac U.S. Scope 1 and 2 Emissions in MT
| YEAR | Scope 1 | Scope 2 | Total | Change |
| 2007 | 6,805 | 29,765 | 36,570 | |
| 2017 | 3,436 | 11,718 | 15,154 | |
| 2018 | 2,653 | 11,396 | 14,049 | -22,521 |
| Reduction | 61.0% | 61.7% | 61.6% |
Aflac Japan Scope 1 and 2 Emissions in MT
| YEAR | Scope 1 | Scope 2 | Total | Change |
| 2007 | 812 | 4,030 | 4,842 | |
| 2017 | 602 | 2,607 | 3,209 | |
| 2018 | 547 | 2,494 | 3,041 | -1,801 |
| Reduction | 32.6% | 38.1% | 37.2% |
In 2020, the plan is to revise the Company's carbon footprint goals.
Environment
Waste and responsible consumption
GRI 302-5
SDG 12
Our commitment to policyholders also importantly helps us reduce our footprint, waste and costs. Aflac U.S. pioneered SmartApp®, launched the Aflac SmartClaim® Mobile App. In addition, the waste reduction and recycling strategy for Aflac U.S. diverted more than 900,000 lbs. of paper waste from the landfill in 2018, and our recycling strategy diverted over 1 million lbs. of solid waste (60%) from the landfill. Our senior vice president of Shared Services and Greenbassador employee network strive to increase the amount of printed materials printed on Forest Stewardship Council-certified paper to 90% by 2025.
In Japan, recycled plastics are used for power generation and recycled paper is reused, earning Aflac Japan a 65% recycling rate. Aflac Japan's green purchasing accounts for 81.9% of office stationery supplies.