Prudential 2021 ESG Report Prudential quanti昀椀es greenhouse gas (GHG) emissions from operationally controlled, corporate owned or leased “Home Of昀椀ces” and data centers located in the United States, Brazil, and Japan. This formal inventory process uses the Operational Control approach Consistent with previous years, Prudential included the following • Scope 3 emissions in Prudential’s GHG inventory include activities per the World Resource Institute (WRI)/World Business Council for greenhouse gases: CO2 (Carbon Dioxide), CH4 (Methane), N2O (Nitrous from business travel (commercial air transport, intercity rail, employee Sustainable Development (WBCSD) Greenhouse Gas (GHG) Protocol to Oxide), HFCs (Hydro昀氀uorocarbons): mileage reimbursements, public transit, rental cars, hotel stays), fuel de昀椀ne its organizational boundaries and account for Scope 1 and Scope • Scope 1 emissions are direct emissions that result from stationary and energy-related activities not included in Scope 1 and Scope 2 2 GHG emissions from these domestic and international sites. Prudential combustion (e.g., natural gas, propane for heating, diesel used in (FERA), purchased goods and services, waste generated in operations, maintains an internal Inventory Management Plan (IMP) which records employee commuting and upstream leased assets1. Prudential will institutional, managerial, and technical procedures and processes used emergency generators), mobile combustion (e.g., leased vehicles for continue to expand its value chain emissions, where relevant and annually to collect and manage reliable, quality GHG data. executive transport, employee shuttles, corporate aircraft) and fugitive where data are accessible. HFC emissions refrigeration/air conditioning equipment use. • Scope 2 emissions are indirect emissions that result from purchased electricity, steam, heat and cooling. Prudential’s goal to achieve net zero Scope Progress toward goals, including Year on year changes from 1 and 2 greenhouse gas emission by 2050 domestic and international market- 2020 to 2021 for domestic and 3 includes interim reduction goals of: based emissions : international facilities: 55% 97% Prudential reduced domestic and international 14% emissions (market-based) by 46% from 2017 3 by 2030 from 2017 by 2040 from 2017 decrease in emissions from 2020 for base year base year Scope 1 and 2 emissions (market-based) 84% 48% Progress towards Progress towards 2030 interim goal 2040 interim goal 1. For detailed Scope 3 emissions from 2017-2021 see Appendix. (market-based) (market-based) 2. Taiwan was divested in April 2021. Reporting is pro-rated for 2021 and included in the Appendix. 3. Scope 1 and 2 emissions (location-based): 15% decrease in emissions, also see Appendix. Home Introduction Governance Sustainable Investing People Community Environment About this Report Appendix 48
2021 ESG Report Page 47 Page 49