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Corporate responsibility review

Building stronger and more sustainable communities

Through our Group-wide corporate responsibility programmes around the world, we help to build stronger and more sustainable communities, supporting our customers, our colleagues and the environment. This review gives an overview of our activities and progress in 2016. More detailed information is available online at www.prudential.co.uk/corporate-responsibility and in our first environment, social and governance (ESG) report to be published later in 2017.

Rob’s story
Chairman’s Challenge, Jakarta

The first week of the 2016 Chairman’s Challenge saw more than 200 employees from Prudential Indonesia head to Taman Mataram in south Jakarta. Every Saturday for four weeks, the volunteers worked with Prestasi Junior Indonesia and the local community to regenerate an under-utilised park into a green community space incorporating fun activities and a financial education theme.

Rob Gardiner, Management Advisor Prestasi Junior Indonesia said, ‘The 2016 Chairman’s Challenge was just what the name suggests – a very challenging undertaking. The initiative required both Prestasi Junior Indonesia and Prudential Indonesia to move outside of their “comfort zones” and combine financial literacy resources with the rejuvenation of the Taman Mataram city park. The end result was, however, beyond our expectations. The corporation has set exceptionally high standards in its efforts to improve the welfare of those within the communities in which it operates.’

Performance highlights

  • £20 million total community investment
  • 83,284 hours volunteered by employees across the Prudential Group
  • £460,167 donated by employees through payroll giving across the Group

It is in our customers’ and shareholders’ interests for Prudential to be a responsible business which invests in and gives back to our local communities, alongside the jobs, growth and tax revenue we provide.

Paul Manduca
Chairman

Paul Manduca, Chairman

Serving our customers

Prudential has been meeting people’s needs for 168 years and today provides long-term savings and protection products to around 24 million customers in markets on four continents, enabling them to look to the future with confidence.

Asia

In Asia, the demand for savings and protection products continues to grow as people seek greater financial security and peace of mind. We continue to broaden our offering to help meet the distinct individual needs of our customers.

Prudential Hong Kong’s new Customer, Digital and Innovation Centre enables the business to embed customer insights into multiple business initiatives, including product, service and technology. The Centre is equipped with state-of-the-art focus group facilities, fully networked to allow for real-time user testing of our digital platforms. These include the myPrudential online portal where customers can manage their insurance policies, the PRUmobile app for on-the-go information and policy access, and the PRUone integrated sales and advisory platform.

There is increasing customer awareness of the impact of lifestyle choices on their well-being in many markets across Asia and 2016 marked Prudential Hong Kong’s first time to offer customers access to an innovative DNA-based nutrigenomic test. The health and protection promotion campaign included access to a nutrigenomic test, ‘myDNA’, offering individual DNA-based insights into how genetics affects an individual’s nutrition needs, dietary sensitivity and well-being. The offer also provided online access to nutrition experts through a mobile app for personalised recommendations. Our customers can personalise their approach to diet and nutrition according to their unique genome in order to achieve their health goals.

Prudential Singapore became the first insurer in Singapore to launch an online community portal for customers to share ideas and to provide direct feedback on products and services. Through Pru-for-you, regular dialogue with customers allows the business to better understand their needs and in turn, create an offering that is tailored to their financial and lifestyle requirements.

US

Prudential’s US operation, Jackson, provides retirement income strategies aimed at the 75 million baby boomers in the US. Jackson offers a diverse range of variable, fixed and fixed-index annuity products, designed with a variety of custom options to fit different financial goals.

In 2016, Jackson launched Perspective Advisory, the company’s first fee-based variable annuity. Perspective Advisory offers the same investments and optional benefits, for an additional charge, as Perspective II ®, Jackson’s flagship commission-based variable annuity. The introduction of the new product was designed to meet increased market demand for products compatible with fee-based accounts and platforms as a result of the 2016 US Department of Labor Fiduciary Rules. The addition of Perspective Advisory to Jackson’s suite of products also allows the business to expand into advisory distribution channels where insurance products historically have not been widely utilised.

Jackson is committed to providing education, service support and digital tools to increase the ease of doing business. The Center for Financial Insight is a resource designed to help investors and employees gain a better understanding of important financial and investing topics. The mission of the Center is to raise the overall level of financial education and confidence in the US by providing useful content framed in a way that is relevant, consumable and engaging for the modern customer.

Since the re-launch of the site in July 2016, more than 70,000 unique visitors have visited the content on the Center, 55,000 of whom are new visitors to Jackson.com. In addition, the most viewed articles on the site are seeing average viewing times of up to five minutes, showing a sustained level of interest.

UK and Europe

Following reform of the UK’s pension and retirement income system in 2015 Prudential has continued to develop both products and processes to meet an evolving set of customer expectations and requirements that increasingly include having to manage and take responsibility for their own savings and the associated risks of longevity, inflation and investment.

Most notably in 2016, we responded to changes in the market following the introduction of pension freedoms by launching the Prudential Retirement Account – an online account based plan that provides customers with the flexibility to save for their retirement, provide an income in retirement and facilitate access to their fund as they save.

Our PruFund franchise provides a unique range of investment fund options for advisers and savers, across the risk spectrum. From ISA and bond, to pension and income drawdown, the range of six different funds continues to flourish, with assets under management reaching £24.7 billion in 2016.

An important part of our service offering is the ongoing hands-on support for intermediary advisers from our regional sales units, technical helpline and business development and consultancy teams.

In 2016, Prudential hosted a series of national seminars covering over 20 locations nationwide, and a structured WebEx programme covered a range of topical and technical subjects, to help these advisers deal with the changing regulatory landscape. Our financial planning business, Prudential Financial Planning, also grew significantly in 2016, increasing its number of advisers to 288.

A number of technology improvements were delivered in 2016, including the introduction of a fully flexible online application process for the popular Prudential ISA product. Additionally, improvements were made to the tele-underwriting service for the Prudential Investment Plan, reducing the amount of time advisers spend on administration and giving them more time with their clients.

Prudential UK & Europe’s success in the Financial Adviser Service Awards continued in 2016, with the retention of the coveted Five Star ratings in the Life and Pensions and Investments categories for the sixth consecutive year. Prudential was the biggest winner at the Investment Life & Pensions MoneyFacts Awards in 2016, scooping the top awards for the Best Investment Service, Best Investment Bond Provider and Best Online Service, once again achieving incredible success at one of the most sought-after awards in our industry.

Asset management

M&G, Prudential’s UK and European asset management business, is a long-term investor that takes seriously its responsibilities as a steward of clients’ assets, often working closely with the management of the companies in which we invest. M&G’s investment teams incorporate environmental, social and governance (ESG) factors into investment analysis and decision-making processes, wherever they have a meaningful impact on risk or return: www.mandg.com/en/corporate/about-mg/responsible-investment/

Active voting is an integral part of the investment approach, both adding value and protecting our interests as shareholders. The M&G website provides an overview of voting history: www.mandg.com/en/corporate/about-mg/investment-philosophy/voting-history/

Reflecting this approach, M&G is a signatory to the UN Principles for Responsible Investment (UNPRI), an international network of investors working together to promote responsible investment practices.

M&G provides market insights to clients, intermediaries and direct investors through a number of channels, including a programme of roadshows and events and multiple digital platforms. To better reflect the diversity of our customer base, during 2016 we significantly increased the size of our M&G Client Council, the panel of our direct investors that helps us design products, services and communications to better meet their needs. Members of our Client Council played a key role in the early stage of product concept testing for our two newest retail funds: the M&G Absolute Return Bond Fund and the M&G Global Target Return Fund, which we launched just before the end of the year.

Supporting local communities

The inherent long-term social value of our business is complemented by investments in communities in each of the markets in which we operate. We provide support to charitable organisations through both funding and the experience and expertise of our employees.

Our investments in communities are designed to support the communities in which we operate and deepen engagement with colleagues. As such, our community investment programme is linked to our strategy and is focused around four principal areas:

  • Social inclusion;
  • Education and life skills;
  • Disaster preparedness; and
  • Employee engagement.

We establish long-term relationships with our charity partners to ensure that the projects we support are sustainable, and we work closely with them to ensure that our programmes continuously improve.

Education and life skills

Cha-Ching – the first global financial education programme

We have a long-standing commitment to financial literacy and Cha-Ching is our flagship financial education programme. Launched in Asia in partnership with the Cartoon Network in 2011, it is a multimedia programme built around three-minute animated music videos aimed at children aged seven to 12. Developed with Cartoon Network and Dr Alice Wilder, an award-winning children’s education specialist, the programme helps children learn the fundamental money management concepts of earn, save, spend and donate. The programme has gained international recognition for promoting financial literacy and has won several industry awards. Over the past few years it has grown to become one of the top-rated children’s television programmes in Asia. Cha-Ching is now available in 10 languages and reaches 54.3 million households a day across Asia through the Cartoon Network. The Cha-Ching School Contact Programme brings Cha-Ching directly to schoolchildren across Asia and has reached more than 200,000 schoolchildren in nine Asian countries to date.

Now a Group-wide programme, Cha-Ching has been launched in Poland, the US, the UK and Africa. In the US, Jackson plans to distribute Cha-Ching with national educational partners and via social media to increase financial literacy with youth. In addition, partnering with Junior Achievement USA, Jackson plans to distribute a five-week teaching curriculum using the Cha-Ching topics and characters to help students engage with personal finance topics.

In the UK work will continue to roll out the Cha-Ching education website, which provides teachers with financial education resources built around the animated music videos, with supporting lesson plans and teacher’s guidance designed to improve the financial capability of Key Stage 2 pupils. The online educational resource will also support expansion across our African markets.

First Read – developing children’s skills

The Prudence Foundation has funded and supported the First Read programme since 2013, partnering with Save the Children to focus on investing in early childhood care and development in Cambodia and the Philippines. First Read is a unique programme that helps parents to develop their children’s numeracy and literacy skills by providing books in the local language or dialect, and encouraging them to read, sing and count together. It also helps parents understand the importance of healthy and nutritious food for children’s development.

Over the last three years of the partnership, over 220,000 children and adults have benefited directly and over 483,000 community members indirectly. In 2017, the partnership will continue with Save the Children, with a particular aim to conduct long-term research and use evidence of First Read’s impact to advocate for replication and greater scale at the national level.

Teen Zone at the Boys & Girls Club

In September 2016, the Boys & Girls Club of Lansing opened the Jackson Teen Zone. This renovation and 4,680-square-foot expansion was funded by support from the business and individual employees. The new Jackson Teen Zone allowed the Boys & Girls Club to repurpose the previous Teen Rooms into innovative tutoring and educational spaces, providing much-needed quiet space for homework, college prep and financial literacy support. The Boys & Girls Club of Lansing annually serves more than 5,200 at-risk youths, aged seven to 18.

Supporting young people with employability and financial skills in London

In the UK, one of the core areas of focus is ensuring that young people have the employability and financial skills they need to get on in life. Prudential UK & Europe has been directly involved in building the knowledge and skills of young people through three secondary school partnerships in Paddington, Reading and Stirling. Delivered as part of Business in the Community’s Business Class and the Scottish Government’s Developing the Young Workforce programmes, the partnerships have supported over 3,550 young people since 2013, with 336 employees giving their time and sharing their knowledge and skills. Prudential’s partnership with MyBnk, which delivers financial literacy programmes in secondary schools in London, helps develop money skills for 5,000 young people every year in deprived areas of the capital.

Learning with Magic Bus in India

In India, Prudential UK & Europe’s employees work in partnership with Magic Bus, which provides children from marginalised communities with opportunities for learning, leading and earning through a sport-focused activity curriculum, mentorship and employability programmes. This year the business in Mumbai helped 1,826 students in rural areas take more interest and gain more by introducing a mechanism for learning by seeing and doing rather than just learning from books.

Secondary school scholarships across Africa

In our new markets in Africa we have committed to provide support for academically able but financially disadvantaged high school students, and to help build capacity for training in actuarial sciences at local universities. Prudential has worked with a number of charities operating in Ghana, Kenya, Uganda and Zambia by funding educational programmes and projects since 2014. These programmes have focused on allowing vulnerable children in these countries to access quality education, through the provision of scholarship awards.

Jackline’s story
Prudential Scholarship programme, Kenya

Jackline is the sixth of eight siblings. She lives in rural Oloitokitok, and is the first child in her family to go to school, which is something she is very proud of. She was fortunate to attend primary school, as Masai children are normally expected to take on herding and childcare responsibilities, but did not anticipate that it would be possible for her to continue her education, as her mother is the sole provider for the whole family.

Through the Prudential Scholarship programme with the Kenya Education Fund, Jackline now attends St. Clare Girls’ High School, where she has taken a keen interest in civil engineering and wants to continue her studies so that she is able to support her community and country by advancing infrastructure.

‘My friend Beatrice was married when she finished class eight because her parents did not have the money for fees and she now has a child. I know I was also very close to sharing the same story. That is why words can’t possibly explain how grateful I am to Prudential, because now I know my dreams will come to life.’

Disaster readiness and relief

Regional commitment to disaster preparedness with Safe Steps

As a life insurance and asset management company, our core business is the provision of protection, security and risk mitigation to individuals and families. We focus on disaster relief and preparedness in our Asia markets, as Asia Pacific is the world’s most disaster-prone region. Prudence Foundation is working with NGOs and governments to help communities better prepare for such disasters before they strike, as well as providing support at times of emergency response and recovery.

Safe Steps National Disasters was launched in 2014, and is a first-of-its-kind pan-Asian public service initiative to enhance disaster preparedness and awareness through the dissemination of educational survival tips for natural disasters. It is a multi-platform programme including on-air video messages, an informative website and educational collateral that can be shared among communities. Core to the programme is a series of 60-second educational videos that advise individuals and households on what they should do when disasters strike. In 2015, Prudence Foundation launched its second Safe Steps programme, Safe Steps Road Safety, in partnership with National Geographic Channel and the Fédération Internationale de L’Automobile and endorsed by the International Federation of the Red Cross.

The programme has been well received and a number of partnerships across Asia have spread the campaign, including free-to-air channels, radio stations and cinema. Through these partnerships, Safe Steps currently has a potential reach of 200 million people a day in Asia.

Safe Schools programme

Prudence Foundation continues its support of the Safe Schools programme, partnering with Plan International and Save the Children in Cambodia, Indonesia, the Philippines, Thailand and Vietnam. The programme focuses on capacity-building for students, teachers and local community members on disaster preparedness, placing schools at the heart of building a culture of disaster preparedness within communities. The programme trains students and their teachers in key disaster management skills and supporting the organisation of disaster simulations and evacuation drills for students and their community. Since 2013, more than 70,000 students and 18,000 teachers have participated. In 2017, the Prudence Foundation will continue to support this programme and explore further partnerships to increase its scale.

Volunteering to build disaster-resilient homes

Prudence Foundation continues to provide support to major emergency relief efforts across the region. In 2016, support was provided in Cambodia to emergency drought response efforts. The long-term commitment of the business to the Typhoon Haiyan recovery efforts in Bantayan Island was demonstrated by sending a team of volunteers to continue the building of new houses for the community. The first 64 houses have been completed and families have now moved in. Around 80 volunteers in June supported the construction of the final 62 houses, which were due to be completed by the end of the first quarter in 2017. In September, over 50 regional volunteers spent time in Vietnam to support the construction of a new school in Quang Binh province. This formed part of Prudential Vietnam’s partnership with Plan International and the Vietnamese government, which are collaborating together to build new disaster-resilient schools in poor regions throughout the country.

Emergency fund relief

Prudential has also been a Group-level supporter of Save the Children since 2010 and is one of the Children’s Emergency Fund’s major supporters. This allows us to act swiftly when disasters occur in any of our markets and provides an instant, effective fundraising mechanism for employees when needed. In 2016 more than 98 allocations from the Fund were made to more than 46 countries and we will continue to support this partnership in 2017.

Social inclusion

Prudential RideLondon – social inclusion in the UK

In the past four years Prudential RideLondon has raised £41 million for charity and become one of the UK’s largest fundraising events. In 2016 alone, more than 740 charities benefited from riders’ fundraising. We have renewed our sponsorship for a further three years to 2018.

As title sponsor, in 2016 we partnered with three charities – Teach First, Greenhouse Sports and the Invictus Games Foundation – to provide aspirational challenges for 62 young people and injured service personnel tackling Prudential RideLondon for the first time. We provided support including bikes, equipment and training as well as employability and coaching workshops. Over £500,000 was raised as a result of fundraising from Prudential rider places by our charity partners and our employees.

  • The riders' journey begins

    The riders' journey begins

  • The challenge

    The challenge

  • The training day

    The training day

  • The event

    The event

Prudential RideLondon has inspired many to take control of their health and well-being. A BBC2 documentary called Fixing Dad featured Geoff Whitington, who was encouraged and supported by his sons to regain his health and reverse his Type 2 diabetes through significant changes to his diet and lifestyle, including taking on the challenge of riding the Prudential RideLondon-Surrey 100. The Fixing Challenge will continue in 2017.

We are developing a new Prudential RideLondon programme for 2017 in partnership with Teach First, which will use the event as a focal point to promote inclusion and help eradicate educational inequality. The new PruGOals programme will have national reach, working with more than 15 schools with an increased focus on well-being and mental health.

Employee fundraising

Jackson employees are actively engaged in our commitment to communities by taking part in programmes such as the Jackson National Community Fund Advisory Committee and the employee-nominated matching programme. The Jackson National Community Fund supports charities that help the elderly and children through quarterly grants in communities where Jackson’s four largest offices are located. Jackson’s matching programme offers a two-to-one match on all employee donations made to approved charities. This programme ensures that causes important to employees are given charitable consideration and that Jackson’s support is received by responsible organisations where funding will create a significant impact.

The elderly in the community

Prudential UK is a long-standing partner of Age UK, working to make a difference to the lives of the elderly. Building on the successful Planning for Later Life programme the business has launched a new programme – Later Life Links. This is focused on supporting older people in six communities across the UK to become more involved in their communities, through the provision of long-term companionship, advice and practical support.

Apprenticeships in the UK

Youth unemployment is a huge social challenge. As one of the most respected brands in the UK, Prudential is taking a major role in helping to shape future job prospects for young people. Over the past three years we have recruited 178 young people to our apprenticeship programme, providing them with important work and life skills and starting them on the first step of their careers.

Support for disadvantaged communities

M&G continues to care for and enable disadvantaged communities near to its offices and during 2016 more than 200 charities received support either by donation or as a result of employee volunteering. In 2016, M&G held its first City Giving Week, an onsite event which each day showcased and highlighted the services provided by charities that had received support. The Lord Mayor of the City of London attended M&G’s event as part of his initiative to promote the varied charitable activities undertaken by City businesses.

Colleague engagement

Successful volunteering programme – Chairman’s Challenge

Many of our employees play an active role in their communities through volunteering, charitable donations and fundraising. In the UK, the US and Asia we offer our employees the opportunity to support charities through payroll giving.

Chairman’s Challenge is our flagship international volunteering programme, bringing together people from across the Group to help in their communities. Colleagues from across the Group give their time and skills to support our global charity partners, including Plan International, Help Age International and Junior Achievement.

The programme continues to appeal to colleagues, with the number of volunteers signing up increasing year-on-year. From its launch in 2006, when 2,603 employees signed up, volunteer numbers have increased by 208 per cent. Last year, 8,011 colleagues around the world took part, volunteering over 27,000 hours to support 30 projects, benefiting over 92,000 individuals across the world.

Each volunteering project focuses on one or more of our CR priorities and allows us to support both large, well established charities and innovative, smaller-scale activities with volunteers as well as financial support. Prudential donates £150 to our charity partners for every employee who registers for the programme. Charity partners use this money to seed-fund charitable projects for Prudential volunteers. Each year employees across the Group are involved in the voting process to decide on the most innovative projects, which receive extra funding towards their charitable objectives.

Volunteering across the Group

As well as volunteering efforts on behalf of the Chairman’s Challenge, employees around the Group volunteered on a huge range of other charitable projects, from providing relief following disasters to mentoring schoolchildren, supporting the elderly and skills-sharing. In 2016, employees across the Group volunteered in their communities on a range of projects, providing a total of 83,284 hours of volunteering, up from 51,979 hours in 2015. This includes the Chairman’s Challenge hours. We recognise that employee volunteering brings benefit not only to the charities but also to the development of our people, and we actively encourage colleagues to participate in our programmes.

Amy’s story
Prudential Skills for Life programme

In partnership with the Transformation Trust, a national education charity, staff volunteers for the Prudential Skills for Life programme provided mentoring support to disadvantaged young people aged 16 to 17 as they prepared to move into further education or the world of work. The volunteers shared their skills and expertise on topics including CV writing, body language, communication and preparing for an interview.

Amy Brocklehurst, Director of Group Strategy and Corporate Development at Prudential said ‘The Transformation Trust is a fantastic charity giving real opportunities to disadvantaged young people as demonstrated by the Prudential Skills for Life programme. The students were a real inspiration and it was fantastic to see them grow in confidence’.

Students described how the support has helped them prepare for further education and the workplace, and according to the Transformation Trust, 86 per cent of students felt the programme helped prepare them better for life after sixth form.

Charitable donations

We calculate our community investment spend using the internationally recognised London Benchmarking Group (LBG) standard. This includes cash donations to registered charitable organisations, as well as a cash equivalent for in-kind contributions.

In 2016, the Group spent £20 million supporting community activities. The direct cash donations to charitable organisations amounted to £16 million, of which approximately £5 million came from our UK and EU operations, which are principally our UK insurance operation and M&G. The remaining £11 million was contributed to charitable organisations by Jackson National Life Insurance Company, Prudential Corporation Asia and Prudential Africa.

The cash contribution to charitable organisations from our UK and EU operations is broken down as follows: education £2,667,000; social, welfare and environment £2,036,000; cultural £142,000; and staff volunteering £88,000.

The balance includes in-kind donations and is prepared in accordance with LBG guidelines. This included more than 10,675 employees (including 8,011 who volunteered for the Chairman’s Challenge) who dedicated more than 83,284 hours of volunteer service in their communities. Furthermore, over £460,000 was donated across the Group by our employees through our payroll giving scheme.

Political donations

It is the Group’s policy neither to make donations to political parties nor to incur political expenditure, within the meaning of those expressions as defined in the UK Political Parties, Elections and Referendums Act 2000. The Group did not make any such donations or incur any such expenditure in 2016.

Valuing our people

At Prudential we encourage an inclusive working environment where we develop our talent, reward great performance and recognise our differences in order to continue to deliver outstanding results for our customers, shareholders and communities. This is achieved through our continued focus on diversity and inclusion, talent development and performance and reward.

Diversity and inclusion

Prudential believes that diversity of experience, thought and background is vital to success, both today and in the future. The Board has therefore decided to make diversity and inclusion one of the strategic objectives for Prudential and appointed Penny James, Group Chief Risk Officer, to act as executive sponsor for diversity and inclusion.

Our policies and plans support an inclusive culture sensitive to the needs of all employees. We protect all our employees against discrimination and provide opportunities for our people regardless of their age, caring responsibilities, disability status, ethnicity, gender, religion or sexual orientation. We make appropriate disability adjustments as required, and provide training and career development opportunities for all. We give full and fair consideration and encouragement to all applicants with suitable aptitude and abilities.

We aim to foster a working environment where individuals are empowered and differences recognised. We aspire that over time our senior management better represents the experiences and background of our customers and stakeholders.

The Board monitors progress on diversity and inclusion through quarterly updates and the annual talent review process.

We have a strategic, long-term approach to diversity and inclusion at Group level and in each business unit and we invest in targeted activity across 10 priority areas ranging from diversity and inclusion-focused development through support for various affinity groups, including, among others, ethnicity/nationality, gender, LGBT, disability, age, social mobility, parenting and care. Across our businesses, our commitment to diversity and inclusion is supported by initiatives such as reviews of pay and performance management consistency, providing training to staff and engaging with recruitment firms to mitigate unconscious bias, and awareness campaigns to diversify the pool of potential candidates.

For example, in 2016, PCA rolled out the PRU+YOU programme to help colleagues to achieve personal well-being goals and promote family-friendly practices. Our North America business has expanded the existing College Relations initiative with the addition of partnerships with Morehouse College, Spelman College and Clark Atlanta University in order to support diversity of ethnicity at entry level. The apprenticeship programme offered within our UK insurance business continued to demonstrate its success and has recruited its fourth cohort. M&G further improved the nationality, academic and social diversity of its graduate schemes and for the first time ensured 50 per cent women on investments schemes. Group Head Office has increased its focus on gender diversity through development of talented women, with 46 per cent female participation in available talent programmes. Africa’s scholarship programme has supported the education of 628 children in Ghana and Kenya.

We have further developed affinity networks: M&G Pride for LGBT employees and allies, and the UK-based Prudential Women’s Network.

As part of our broad diversity and inclusion agenda, we have publicly committed to having at least 30 per cent of women in senior management by the end of 2021 and we have signed the HM Treasury Women in Finance Charter. As an important step in this direction, we aim to achieve 27 per cent female representation in senior management by the end of 2019.

Gender diversity within the senior leadership

Gender diversity within the senior leadership

Download as excel file

Headcount Notes Total   Male Female
  1. Excludes PCA joint ventures.
Chairman and Independent Non‑executive Directors   9 = 7 2
Executive Directors   7 = 5 2
Group Executive Committee (GEC) Includes Executive Directors 13 = 11 2
Senior managers Excludes the Chairman, all Directors and GEC members 93 = 71 22
Whole company1 Includes the Chairman, all Directors and GEC members 23,673 = 11,139 12,534

We believe in supporting human rights and acting responsibly and with integrity. Our policies are guided by the principles of the UN’s Universal Declaration of Human Rights and the International Labour Organisation’s core labour standards. These are also incorporated into our Group Code of Business Conduct, which sets out the Group values and expected standards of behaviour for all employees, and in our Group Outsourcing and Third Party Supply Policy.

Talent development

People development is essential to deliver our strategy. The quality of leadership across the Group is fundamental to the future growth and success of the business and we therefore review our talent annually, and offer a range of programmes that enable our people to continue to grow and develop. The majority of our programmes are managed by our business units, while Group Human Resources focuses on tailored programmes for senior leaders across the organisation, succession planning for senior roles and development of our leadership talent pipeline. We invest in succession planning for our leaders and critical specialists, and segment our talent to identify short-, medium- and long-term successors. We support them with the appropriate development and career planning, to ensure that we maintain an appropriate balance of internal progression and external hires.

Individually tailored development offerings are provided for our most senior executives so they are well prepared to deliver the long-term ambitions of the Group. In 2016, more than 143 senior high-potential individuals participated in our Group-wide leadership development programmes ‘Impact’ and ‘Agility’. These programmes have been developed in partnership and co-delivered with world-leading academic institutions.

Within our businesses there are many examples of our continuing commitment to talent development. Prudential Corporation Asia develops CEOs with programmes such as cross-company experience, which are continually reviewed, incorporating new thinking and future capabilities as required. In the US, Jackson University provides a highly customisable approach for associates’ personal development and professional learning; and Prudential UK provides a fully differentiated management development offering, distinguishing the requirements of aspiring managers and experienced leaders. M&G Real Estate supports career development through a fund manager job-shadowing programme; and Group Head Office provides innovative programmes designed in partnership with top academic institutions, which offer leadership development and the opportunity to gain valuable experience through relevant business projects.

Employee engagement

An array of initiatives are in place within our different businesses to drive employee engagement. Depending on the business this engagement can start as soon as a new employee joins us, with an induction programme to learn about the history and strategy of the Group. Throughout the employee’s career, additional opportunities may include being offered a number of high impact training sessions as well as workshops on resilience, managing energy and enhancing productivity.

Each of our businesses manages its own intranet, providing all employees with access to regular updates, articles and internal and external news items relevant to the business and its geographical location. Each intranet also gets updated with material news from across the Group.

Some of our businesses hold regular employee open-forums with senior management, conduct yearly engagement surveys or organise away-days to discuss the business, our performance and internal management. Any highlighted issues are then used to improve the way in which we work. In addition, there are informal opportunities to meet senior managers and facilities to network with both peers and senior leaders across functions; and well-being programmes to support sustainable high performance. We also have policies to encourage and support volunteering for charitable causes. The success of our efforts has again been recognised internally and externally.

In addition, our businesses in the UK have a long-standing relationship with the union Unite.

We encourage volunteering through which our employees can support our communities and acquire new skills. See Colleague engagement above for further details.

Performance and reward

Our reward packages are designed to attract, motivate and retain high-calibre people across all levels. Each individual contributes to the success of the Group and should be rewarded accordingly.

We recognise and reward high performance while operating a fair and transparent system of reward. Reward is linked to the delivery of business goals and expected behaviours and we ensure that rewards for our people are consistent with our values and do not incentivise inappropriate risk taking. To enable this, employees are not only regularly assessed on ‘what’ they have achieved, but also on ‘how’ they did so.

There are recognition initiatives running across our businesses, such as the Prudential Stars awards at Group Head Office, which are made to individuals nominated by their colleagues for outstanding examples of execution, impact and engagement. We also believe in the importance of giving employees the opportunity to benefit from the Group’s success through share ownership, and operate employee share plans for employees in the UK and Asia. This includes PruSharePlus, which enables employees in Asia to share in the longer-term success of the business, and actively encourages share ownership and engagement.

Protecting the environment

We carefully monitor our environmental impact and the management of environmental issues is an integral part of managing the total risks faced by our business.

We have processes in place to measure and report on our global greenhouse gas (GHG) emissions, together with waste and water data for the 12 months, October through to September. In 2016, we increased our absolute GHG emissions from our occupied estate and company-owned vehicles by 1 per cent to 72,568 TCO2-e (2015: 71,704 TCO2-e). The increase was driven by growth in our business and increased data centre activity. When normalised against net lettable floor area, our GHG emissions efficiency metric improved by 7 per cent to 123 kgCO2-e/m2 in 2016 (2015: 132 kgCO2-e/m2) and 12 per cent over the past three years (2013: 139 kgCO2-e/m2) driven through our energy efficiency efforts focusing on the larger properties in the portfolio. This data refers to Scope 1 and 2 only.

We continue to deploy energy management strategies across our business. A new 100 per cent renewable energy contract for electricity purchased for our UK occupied property estate was introduced during the year, replacing an earlier low carbon energy contract. Our US business increased the Energy Star performance score for its Corporate Head Office in Lansing by 80 per cent over the year, placing it in the top 20 per cent of its type in the country https://www.energystar.gov/buildings/about-us following an earlier energy efficient re-fit. In Asia, we delivered our first LEED Gold certified refurbishment for our One Island East offices in Hong Kong through LED lighting, daylight sensors, energy and water-efficient appliances and a green ‘living’ wall in reception.

We maintained our sector positioning in key benchmarks, including the Carbon Disclosure Project, with a B rating in 2016 (level with our peers), and ClimateWise, the insurance sector climate initiative managed by the Cambridge Institute for Sustainability Leadership, maintaining our position of ninth out of 19 participants www.cisl.cam.ac.uk/business-action/sustainable-finance/climatewise. Our performance in ClimateWise against six core principles is independently audited.

M&G Real Estate forms part of the M&G group of companies, the asset management arm of Prudential plc in the UK and Europe. Its approach to responsible property investment enables it to manage and respond to the growing range of environmental and social issues that can impact property values. It also helps M&G Real Estate to protect and enhance fund and asset performance for its clients. Responsible property investment is integrated within M&G Real Estate’s day-to-day investment practices. Carbon emissions from the investment portfolio of M&G Real Estate have halved over the past four years. It has achieved six Green Stars (2015: four Green Stars) in the 2016 Global Real Estate Sustainability Benchmark survey out of eight participating funds. M&G Real Estate’s progress can be found in its annual Responsible Property Investment report at www.mandg.co.uk/institutions/realestate/responsible-investing/

We expect continued developments on environmental factors in the years ahead, including increasing disclosure of climate-related risks and opportunities for financial companies. The work of the Financial Stability Board in particular could be a major development in the transition to a low-carbon economy, with its guidance on strategy, risk management, metrics and reporting on climate risks www.fsb.org/2016/12/fsb-welcomes-task-force-consultation-on-recommendations-for-climate-change-disclosure/

Michele’s story
Jackson, US

Michele Fedewa, Jackson’s Strategic Support programme manager, has championed the adoption of recycling and composting programmes as part of Jackson Smartcycle in its Lansing offices.

‘There has been a tremendous amount of interest for more recycling options in the office. The business sent approximately 1,138,000lbs of refuse in Lansing to landfill in 2015 and the aim of this new programme is to reduce waste sent to the landfill to zero. Many of our associates are students at Michigan State University and already recycle on campus. I’ve had numerous employees reach out to me with ideas and questions about how we can make more of a difference environmentally. We’re thrilled to support this programme and see it make an impact on reducing our carbon footprint.’

Prudential plc greenhouse gas emissions statement

We have compiled our greenhouse gas emissions data in accordance with the Companies Act 2006 (Strategic and Directors’ Reports) Regulations 2013.

We have included full reporting for Scope 1 (direct emissions such as combustion of gas for heating fugitive emissions and emissions from owned vehicles) and Scope 21 (indirect emissions for consumption of electricity, heat or steam) emissions where operational control of the emissions of the sources concerned was demonstrated.

We have also reported on a number of Scope 3 emissions as a matter of best practice. These are emissions arising as a consequence of the activities of the company, but occur from sources not owned or controlled by the company. For the purpose of 2016 report, these Scope 3 emissions include: business travel booked from the UK, global water consumption (occupied and investment properties) and waste. The waste reporting covers, all investment properties with operational control, UK and US occupied properties. We do not currently collect waste data for our occupied buildings in Asia and continental Europe. We are continuously working with our business units to review the extent of our Scope 3 reporting and increase where practicable.

Assessment parameters Baseline year: 1 October 2014 to 30 September 2015
Reporting year: 1 October 2015 to 30 September 2016

Note

  1. This is calculated using location-based methodology (GHG protocol).

Assurance

Deloitte LLP has provided limited assurance over selected environmental metrics in accordance with the International Auditing and Assurance Standards Board’s (ISAE3000 (Revised)) international standard. www.prudential.co.uk/responsibility/performance/external-assurance-of-responsibility-reporting

Consolidation approach

Operational control.

Boundary summary

All entities and all facilities under operational control (including those owned) are included.

Consistency with the financial statements

The reporting period (1 October 2015 to 30 September 2016) does not correspond with the Directors’ Report period (1 January 2016 to 31 December 2016). The reporting period was brought forward by three months to improve the availability of invoice data (which often lags by one month or more after the usage period) and reduce the reliance on estimated data. Prudential owns assets, which are held on its balance sheet in the financial statements, over which it does not have operational control. These are excluded from the data below. Assets not included on the balance sheet but held under an operating lease and where we have operational control are included.

Emission factor data source

We have used the UK DEFRA 2016 GHG Conversion Factors for Scope 1 and 3 reporting and the IEA GHG 2016 conversion factors for global Scope 2 reporting.

Assessment methodology

The Greenhouse Gas Protocol Corporate Accounting and Reporting Standard 2004.

In 2016 Prudential reviewed its reporting methodology for Scope 2 (electricity) emissions in recognition of the release of the revised GHG Protocol Scope 2 Guidance that requires both location and market-based reporting. As the Group operates in a number of mature and emerging markets, the availability of market-based factors that met the necessary quality criteria was deemed insufficient for reporting, and as such our 2016 reporting continues to use the location-based factors already available.

Materiality threshold

5 per cent.

Intensity ratio

Kilograms of Carbon Dioxide Equivalent per metre squared (net lettable area).

Download as excel file

Emissions source   2016 2015 2014 2013

Note

  1. Comparative 2015 data for normalised emissions have been restated due to a methodology change for accounting for floor area. Please refer to the Basis of reporting at www.prudential.co.uk/responsibility/performance/greenhouse-gas-emissions for further detail. All reported normalised emissions for years prior to 2015 have not been restated under the revised basis and therefore are not comparable with the 2015 and 2016 data.
Scope 1 (tonnes CO2-e) Occupied Estate 10,155 8,409 8,486 6,019
  Investments 7,559 8,845 10,044 13,062
Scope 2 (tonnes CO2-e) Occupied Estate 62,413 62,695 61,550 65,730
  Investments 20,973 28,691 39,573 42,079
Scope 1 and Scope 2 (tonnes CO2-e) Occupied Estate 72,568 71,104 70,036 71,749
  Investments 28,532 37,536 49,617 55,141
Total Scope 1 and 2 (tonnes CO2-e) 101,100 108,640 119,653 126,890
           
Normalised Scope 1 and 2 (kg CO2-e/sq.m)1 Occupied Estate 123 132 135 139
  Investments 14 18 13 15
Total Scope 1 and 2 (kg CO2-e/sq.m) 38 42 28 31
           
Scope 3 (tonnes CO2-e) Occupied Estate 11,253 13,664 10,069 9,583
  Investments 386 418 387 840
Total Scope 3 (tonnes CO2-e) 11,639 14,082 10,456 10,423
           
Total Scope 1, 2 and 3 (tonnes CO2-e) Occupied Estate 83,821 84,768 80,105 81,332
  Investments 28,918 37,954 50,004 55,981
Total Scope 1,2 and 3 (tonnes CO2-e) 112,739 122,722 130,109 137,313
           
Normalised Scope 1, 2 and 3 (kg CO2-e/sq.m) Occupied Estate 142 157 154 157
  Investments 14 18 13 16
Total Scope 1, 2 and 3 (kg CO2-e/sq.m)1 43 47 30 33

Due to the changing size and nature of the investment portfolio, absolute and normalised comparisons between years are not comparative. Net lettable area is reported for all properties held within the reporting period. In line with best practice, environmental data is collected for properties at acquisition and at date of divestment therefore comparisons for absolute change and normalised change are not directly comparative.

Accountability and governance for corporate responsibility

The Board

The Board regularly reviews the Group’s corporate responsibility performance and scrutinises and approves the Group corporate responsibility report and strategy on an annual basis.

Local governance

We believe that CR is best managed on the ground by our people running the businesses. In M&G, Jackson and Prudential UK there are governance committees in place – with senior management representation – that agree strategy and spend. In Asia, the Prudence Foundation has been established as a unified charitable platform to align and maximise the impact of community efforts across the region. The Prudence Foundation is governed by a statutory Board of Directors, under which a Board of Trustees operates as a decision-making forum, directing the management of the programmes in collaboration with our local markets, and ensuring that we maximise the value of our spend to local communities.

Code of Business Conduct

Consideration of environmental, social and community matters is integrated in our Code of Business Conduct. Our code is reviewed by the Board on an annual basis. For more information, see above.

Risk assessment

For more information on the risks facing our business see Group Chief Risk Officer's report.

Supply chain management

It is our policy to work in partnership with third parties whose values and standards are aligned with our Group Code of Business Conduct.

Procurement practices in Prudential UK have been successfully accredited with the Chartered Institute of Purchasing and Supply certification, an industry benchmark of recognised good practice. Prudential will publish its Modern Slavery statement later in the year.

Strategic report approval by the Board of Directors

The strategic report set out in the Strategic report section is approved by the Board of Directors.

Signed on behalf of the Board of Directors

Mike Wells
Group Chief Executive
13 March 2017

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