In 2021, we set the target to achieve operational net zero emissions by 2025. To meet our goal, we have set the following priorities: Avoid or reduce emissions, use fewer natural resources and promote environmental responsibility across our network and ecosystem. 

The process of tracking and minimising our carbon footprint has started in 2017. We conducted a study to estimate the overall operational carbon footprint in accordance to the GHG Protocol Corporate Standard in 2020. The following types of emissions are material to Great Eastern and we can assess them reliably and accurately:

GHG Scope 1 - Diesel consumption of backup generator

                              - Fuel consumption of company vehicles

GHG Scope 2 - Electricity consumption of own business operations

GHG Scope 3 - Business air travel by staff

Accordingly, targets have been set for main operating subsidiaries to reduce electricity consumption and scope 2 emissions. Key Principles are implemented across the entire Great Eastern network to ensure that we conduct our business in an environmentally conscious manner. 

Key Principles to minimise negative environmental effects of our business include:

Setting a 2019 baseline for a 2025 Operational Net Zero ambition

2019 has been selected as the operational emissions baseline. We track emissions by absolute amounts of tCO2e (tCO2e) per Full-time Employee (tCO2e/FTE). Reduction targets by intensity is an important metric so that we can adjust for business growth over time.

In 2019, our operational emissions stood at 16,094 tCO2e. By 2021, operational emissions had reduced by 17% to 13,342 tCO2e. Emission intensity has reduced 20% (from 3.54 tCO2e/FTE to 2.81 tCO2e/FTE).

These reductions were a result of two key factors – (i) Various Group-wide initiatives undertaken during the period, and (ii) The COVID-19 impact of increased remote working and new ways of doing business.

We target to further reduce emissions per FTE by another 10% by 2025 by incorporating energy-saving features for our buildings in Malaysia and integrating environmental considerations in the upcoming office transformation projects.

We are exploring options to reduce energy consumption and emissions across the Group. When feasible, we will adopt the use of renewable energy for our office buildings. We plan to procure credible carbon credits to offset residual and unavoidable emissions.

The above plans and actions will enable us to achieve net zero operational emissions targets by 2025.

Resource utilisation - The paperless journey

It is an ongoing effort to digitalise paper-centric processes. In 2021, we achieved 39% in paper reduction from the baseline year of 2019. This is a 45% reduction from the peak volume in 2018.

• Digitalisation of documentation and communication via e-policy and e-correspondences for both financial representatives and customers. We are aiming for 80% digital adoption by 2022.
• To achieve more than 80% of electronic submissions and e-payments by customers by 2022, by promoting the use of our suite of online platforms.

We are aware that digitalisation can create a larger digital carbon footprint through the use of power and other resources. This – together with the overall impact of the business digital transformation - is being tracked and managed, and the carbon mitigation hierarchy will apply.

Climate change will impact our insurance businesses.  We provide life insurance protection to individuals over extended periods that can span several decades. The long-term impact of climate change – together with transitional costs and possible impact on asset value – are risks which we as insurers face and risks which our customers seek to mitigate.

In the General Insurance business, we have created a dedicated ESG Taskforce to design and implement the ESG strategy across the business. The team has embarked on an exercise to assess the likely impact of environmental risks and to formulate appropriate responses to climate change through the offering of appropriate products.

Environmental risks are difficult to manage because of the uncertainties and magnitude of impact.  We are closely engaging with our regulators and reinsurers, and tracking research in the public domain to acquire a better understanding of the likely impact, in order to formulate suitable products for our customers. There is a lot more work to be done, with potential collaboration opportunities with other market players. 

Product innovation – GREAT Green Single Premium (SP)

Besides looking at the impact of ESG risks on our business, we are also interested to learn about our clients’ response to sustainability and how we can serve them better. In 2021, we embarked on a customer survey to assess client interest in sustainable or green insurance products. The survey results indicated the existence of some interests from a growing number of customers who want to participate in sustainability outcomes. 

In July 2021, we launched our very first green life insurance plan – the GREAT Green SP. It is a three-year single premium endowment plan offering competitive guaranteed returns backed by green investments. Great Eastern also pledged to donate a portion of the premiums to a sustainable cause.