Prudential 2021 ESG Report Message from As I re昀氀ect on the tumultuous events of the past two years, I’m proud • PGIM, our asset management business, appointed a global head of that all of us at Prudential have remained steadfast in our commitment ESG, who is responsible for shaping and coordinating the ESG strategy to our Company’s purpose — to make lives better by solving the 昀椀nancial and approach across its operations. the Chairman challenges of our changing world. We celebrated a milestone in our longstanding work to drive social progress: To ensure we continue ful昀椀lling that purpose and delivering on our promises, • The Prudential Foundation surpassed $1 billion in total contributions we are challenging ourselves to evolve, so we can seize new opportunities, since its inception in 1978. The foundation works to close the reach new customers and deliver increased value to all our stakeholders. 昀椀nancial divide by creating inclusive workplaces and communities, To guide our work, we recently unveiled a new vision: to become a and accelerating economic mobility for those who need it most. This global leader in expanding access to investing, insurance, and milestone follows the achievement in 2020 of $1 billion in assets under retirement security. management in our impact investing portfolio. Employees around the world have embraced this vision for the future of We reinforced our commitment to transparency and accountability: Prudential. We will achieve it by executing a three-pronged strategy: • We continued annual disclosure of our EEO-1 data on U.S. employee • Investing in growth businesses and markets around the world. representation in addition to the results of a comprehensive analysis on • Delivering industry-leading customer and client experiences that blend pay equity across our U.S. workforce. human touch with advanced technology. • We expanded our long-term executive compensation plan’s diversity • Creating the next generation of 昀椀nancial solutions to serve the diverse goals to reach deeper into the organization with an emphasis on Black needs of a broader range of customers and clients. and LatinX colleagues. Sustainability will remain integral to our ability to ful昀椀ll our purpose, As a global insurer and investment manager, we recognize the urgent achieve our vision and strategy, and deliver on our long-term promises to need to play our part in addressing societal issues. I thank our employees our customers and other stakeholders. around the world for their hard work and unwavering dedication, which enable us to live our purpose and deliver on our promises, every day. In 2021, we reinforced our efforts to drive sustainability with signi昀椀cant We will continue to take meaningful action to create a more sustainable enhancements to our environmental, social and governance (ESG) practices. future for our customers, employees, investors, and communities. I look We enacted new standards and commitments: forward to sharing news of our progress with you. • We announced our intention to achieve net-zero emissions across our primary global home of昀椀ce operations by 2050, with an interim goal of becoming carbon neutral by 2040. In addition, PGIM Real Estate committed to achieve net zero operational carbon by 2050 across all of its managed assets. Charles F. Lowrey • We’re assessing the emissions impact of our General Account’s Chairman and Chief Executive Of昀椀cer investment portfolio and have restricted new direct investments in companies that derive more than 25 percent of their revenues from thermal coal. • We formed a Climate Change Steering Council, headed by Robert Falzon, Prudential’s Vice Chairman, which will work closely with a cross- functional group to develop our climate policy. Home Introduction Governance Sustainable Investing People Community Environment About this Report Appendix 4