Global Environmental Commitment

Maintaining the strength of our business requires ongoing education around climate change and the use of natural resources. We must ensure the long-term value of both our operations and investments by acknowledging the risk of global climate change, meeting the challenges and opportunities that climate change presents for our business, and reducing our own environmental impacts. We believe that instilling the principle of environmental stewardship throughout our global businesses benefits our clients, employees, and shareholders – as well as future generations.

Prudential’s Global Environmental Commitment was created to acknowledge the risks presented by global climate change and to address this important issue through our business operations and investments. This document describes the status of these Commitments as of December 31, 2021.

Global environemnt commitment
Topic Goals Status
Environmental Reporting
  • Increase robust reporting in annual sustainability report
  • Prudential’s 2021 ESG Report includes comprehensive information on both the impact of our operations on the environment and the action we are taking to reduce the impact we have.
  • Achieve and maintain Management-Level CDP scores
  • Received A- CDP Climate Rating in 2020 and B in 2021. Prudential will participate in the 2022 CDP climate questionnaire.
  • Publish specific asset level reporting
  • Approximately $375B of the General Account’s assets have an ESG identifier.
  • Publish information and progress on General Account investment allocations
  • The 2021 ESG Report describes the General Account’s total sustainable investments and each category.
Responsible Use of Natural Resources
  • Prudential commits to achieve net zero emissions across its primary home office operations by 2050 and set an interim goal to become carbon neutral by 20401
  • 84% progress towards 2030 interim goal and 48% progress towards 2040 interim goal. See Prudential’s 2021 ESG Report for more detail.
  • Achieve 65% waste diversion by 2025
  • Achieved goal in 2021 with 72% waste reduction in reporting countries. 2
  • Continue internal initiatives to reduce paper use
  • Continued partnership with American Forest partnership to support our Zero Paper aspiration.
  • Develop both internal and public facing ESG Policy
  • The Chief Investment Office updated its Responsible Investing Policy in November 2021.
  • Invest in companies and projects that responsibly reduce emissions, water consumption and/or waste generation
  • The General Account’s sustainable investment allocation is described in the 2021 ESG Report.
  • Allocate 10% of Impact Investments portfolio to companies and projects that promote sustainability and resiliency by 2025
  • As of 12/31/2021, Impact Investments has 4% of its fair market value of investments in companies and projects promoting sustainability and resiliency.
  • Grant $25 million by 2025 to support response to climaterelated natural disasters via Prudential Foundation
  • Prudential Foundation provided $12.7 million (as of 12/31/2021) in grants and investments to support climate-related natural disasters.
Resiliency Preparation
  • Continue strengthening our business continuation activities
  • Identified flood risk for the Newark, New Jersey properties.
  • Invest in long termism and businesses and projects that support resiliency
  • Hired engineering firms to develop decarbonization capital plan for two Newark, New Jersey-based Prudential office properties.
Engagement & Education
  • Create robust employee engagement opportunities to creatively and consistently communicate the importance of environmental sustainability
  • Green Teams hosted a virtual Earth Day and beach cleanup in Monmouth, New Jersey.
  • Removed vending machines to reduce plastic bottle use in all Newark, New Jersey properties.
  • Implementing responsible cafeteria waste reduction activities in two Newark, New Jersey owned properties.
  • Commit to engaging 100% of our top vendors to support progress toward the Global Environmental Commitment Invite 100% of our top vendors to report on climate change KPIs by 2022
  • Engaged 100% of top vendors to complete the CDP Supply Chain survey resulting in 69% participation.
  • Expand our public policy engagement to support topics aligned with the Global Environmental Commitment
  • PGIM’s paper, Weathering Climate Change, proposes a climate change agenda for institutional investors that encompasses both hidden portfolio vulnerabilities and potential opportunities in the transition to a lower carbon world.
  • Become a go-to provider for thought leadership on sustainable investing strategies
  • PGIM Quantitative Solutions, PGIM Fixed Income, Jennison Associates and PGIM Real Estate (PGIM asset managers) are Principles for Responsible Investment (PRI) signatories.
  • Invest or grant dollars to companies and organizations that change public perception toward a more environmentally responsible society
  • PGIM Real Estate financed more than $9.5 billion in loans secured by properties with green certifications, including ENERGY STAR labels. More than 60% of our affiliated investors’ office portfolio is green certified (as of 12/31/2021) demonstrating a commitment to sustainable loan production.
1 As documented in Prudential’s Inventory Management Plan, the Company defines its organizational boundaries using the Operational Control approach per the World Resource Institute (WRI)/World Business Council for Sustainable Development (WBCSD) Greenhouse Gas (GHG) Protocol. Under this approach, Prudential will account for 100% of the GHG emissions from operations over which it has control. This includes domestic and international properties (home offices, data centers, and garages) which are either owned or leased by Prudential Financial and for which Prudential has operational control

2 Reporting countries include 2019 and 2020: U.S., Brazil, Taiwan, Japan; 2021: U.S., Brazil, Taiwan (pro-rated), Japan

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