Prudential plc.
Basis of Reporting: Diversity, Community Investment, GHG emissions and
other Environmental Metrics 2014 Reporting Period
Summary
This Basis of Reporting document outlines the scope of KPIs reported covering diversity, community investment, GHG emissions data and other environmental
metrics by Prudential plc. for the Prudential plc.2014 CR Report and annual statement in the directors report.
Diversity
KPI Published: Gender Diversity
Gender Diversity - Male and Female total headcount reported for the following breakdown:
 Non-Executive Directors (including the Chairman);
Definition
 Executive Directors;
 Group Executive Committee [GEC] (includes Executive Directors);
 Senior Managers (does not include the Chairman, Directors, and GEC members);
 Whole company (includes the Chairman, Directors, and GEC members).
Scope of indicator
Permanent employees, across the Prudential Group, covering Prudential Corporation Asia, Jackson in the US, Prudential UK &
reported
Europe, M&G and Group Head Office.
Reporting period
Unit/Normalisation:
Total headcount breakdown is reported as at 31st December 2014.
All permanent employees in each Business Unit/Group Head Office
Data collection method:
Permanent employee total headcount, and split by Male /Female, was requested of the HR Director for each Business Unit, as at
31st December 2014.
Total numbers were downloaded from each respective Business Unit’s HR Information System, and submitted to Group Head
Office HR for Group wide consolidation. Validation was performed by Group Head Office HR and consolidated, consistently both
with previous years’ approaches and across the different Business Units / Group Head Office.
Main assumptions:
Total headcount reported excludes Joint Ventures.
The ‘Senior Manager’ population represents the most pivotal roles across the Prudential Group, typically one level below GEC.
Third party data
verification:
Third party data verification has been carried out by Deloitte.
Community Investment
KPI Published: Community Investment
Community investment spend:
 UK and Europe (charitable cash donations) (£m)
Definition
 Asia and US (charitable cash donations) (£m)
 In-kind donations across the Group (£m)
Scope of indicator
We calculate our community investment spend using the internationally recognised London Benchmarking Group standard. This
reported
includes cash donations to registered charitable organisations, as well as a cash equivalent for in-kind contributions including staff
time and the donation of office space and equipment.
Reporting period
Unit/Normalisation
Data collection method
Main assumptions
Information is gathered from across the Prudential Group, covering Prudential Corporation Asia, Jackson in the US, Prudential UK &
Europe, and M&G
1 January 2014 - 31 December 2014
Amounts are reported in UK Sterling using YTD average exchange rates as at December 2014.
Cash donations are extracted from our financial reporting and accounting system by Group Finance using a specific communication
investment cost-allocation code. This is reconciled by the Group Corporate Responsibility team with internal community investment
activity reported through the non-financial reporting system.
In-kind donations are collated by the Business units using a generic non-financial reporting template. The templates are
consolidated by the Group Corporate Responsibility team, using values determined in the Assumption list below.
Average hourly rate – used for volunteering hours
Total number of staff employed and total costs of employment sourced from Prudential Annual Report 2013 (p.160).
http://www.prudential.co.uk/~/media/Files/P/Prudential-Corp/financial-reports/2013/prudential-plc-ar-2013a.pdf
Average cost of Prudential employee = total employment costs/total number of staff.
Average hourly value determined by applying the following assumptions to the average Prudential employee cost; 52 weeks in
reporting year, 5 working days in a week and a 7.5 hour working day.
Currency conversion calculations
YTD average exchange rates as at December 2014 were sourced internally from Finance.
Office space assumptions
UK and US office: £700/day
UK and US auditorium: £1000/day
Asia office: £450/day
 The value of office space was based on the cost recovery rate for average meeting room size rather than commercial value
for prudence;
 Cost recovery rate calculated using an average square footage of meeting rooms at London office;
 Discount applied to Asian office space (35%); and
 Costs of catering and equipment were excluded from the office space rates.
Computer assumptions
Value for computers assigned using externally sourced value of factory refurbished computers taken from RM with a 20%
devaluation applied.
Third party data
verification
Third party data verification has been carried out by Deloitte.
Greenhouse gas (GHG) emissions and other environmental metrics
Summary
For the purpose of the 2014 CR report ‘GHG emissions’ data has been accounted for by adopting an ‘Operational Boundary’ approach. That is, Prudential plc.
has accounted for emissions where;
“it or one of its subsidiaries has the full authority to introduce and implement its operating policies at the operation.” (Green House Gas Protocol, A Corporate
Accounting and Reporting Standard).
Under this approach, our GHG emissions from all owned and leased facilities globally over which we have operational control are included Additionally, the
operational control boundary includes estimated usage for full service gross leased offices and collected data centres where the energy utilities are paid and
met.
Under this boundary reporting covers emissions generated from 415 occupied leases, covering 551,120 square meters. To determine the sites where emission
reporting was required, lease information was taken from our central lease database. The central database is maintained for all regions and contains information
about whether a site is subleased, the area which the lease covers and the period with which the lease is valid.
Within our investment portfolio reporting covered approximately 3,250,500 square meters.. Information about investment sites was provided by a number of
sources and was collated centrally to determine total emissions under operational control.
Methodology
Prudential plc. uses ‘The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (GHG protocol (revised edition) as the global standard)’
2004, as the guiding methodology for calculating carbon emissions. The GHG Protocol was co-developed by the World Resources Institute and the World
Business Council for Sustainable Development.
The environmental data is collected and aggregated to provide a group wide picture based on a combination of actual, extrapolated and estimated data,
depending on the type of data and the market the data comes from. Please see below table for further information.
This basis of the data is sourced from invoices, supplier reports, and expenses systems. The following table details our approach to a number of key decisions in
our GHG reporting approach:
Decision Point
1. Estimation for missing data, or exclude
and explain?
2. Selected Reporting Period?
Comment
We estimate for missing data where possible. Accrual methodology is used for missing invoices, and
estimation methodology is used for sites with no invoices. All methods will use proxy data based on
benchmarking data developed from Prudential’s portfolio (where invoices have been received).
01 October 2013- 30 September 2014.
This period does not correspond with the Directors’ Report period (January 2014 to December 2014).
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.
3. Are there any material differences to the
Directors’ report?
4. Inclusion of leased assets?
Prudential is reporting based on operational control. Businesses and assets where Prudential does not
have operational control are excluded from GHG reporting due to operational control considerations.
These businesses appear in the Directors’ Report.
All leased assets will be included.
In the event that the landlord pays the invoice (and Prudential does not see an invoice), electricity will be
estimated based on proxy data. Training rooms, subleased offices and serviced offices are excluded.
Prudential has set a materiality threshold of 5%. The following exclusion have been made based on this:
Prudential now have insurance operations in Kenya and Ghana (approximately 14 leases). We are
currently gathering information about the buildings and starting the process of data collection for inclusion
in 2015/16 reporting once we have a full year of data. .
5. Materiality considerations/exclusions.
Within Asia, Agents’ business travel, (scooters – these do not come under Prudential’s operational
control and collection of this information would be extremely difficult).
Minor works (gardeners, minor construction works, so small as to be immaterial, anticipated < 1%)
Emissions from refrigerants from small split-system air conditioning units are so small as to be immaterial
(anticipated< 0.1%). The electricity use from these units has been reported.
Emissions from refrigerants from investments portfolio were not available for regions outside of the UK.
As a proportion of total investment emissions they are so small as to be immaterial.
Decision Point
Comment
Travel booked outside of the UK is not included. We are working to improve our reporting in this area.
6. What intensity ratio will be used?
7. Baseline Year
A complete data set for our occupied building in Ireland was unavailable and therefore 2013 data was
entered
Tonnes of CO2-e/SQ. meter. Net Lettable Area. Includes floor area for all properties with reportable
emissions for reporting period; including any acquisitions and disposals.
2013
KPIs published
KPI Published:Fuel combustion (Scope 1 emissions)
Definition
CO2e emissions resulting from; gas use for heating and cooking. Quantity of diesel consumed for back up power generation.
Scope of indicator
reported
The Scope covers all Prudential plc. occupied and investment buildings where there is operational control.
Reporting period
Unit/Normalisation
01 October 2013 -30 September 2014
kWh and litres converted to CO2e using Defra 2014 Emissions.
Data collection method
Invoices and supplier reports are collated and entered into GHG calculation models. Where data has not been obtainable,
extrapolation over time period days has been conducted with existing data; an average daily rate per meter squared has been
applied to any missing invoiced days.
Where no data has been received, benchmarking data has been used to estimate kWh for gas use for that property. Further
information is provided within the assumptions section of this report.
Main assumptions
Any sites with missing gas consumption data, an estimation has been applied. An average substitute is calculated using internal
benchmarks following the below levels:.
o Level 1 (best option): Is an average figure available for the country in question by property type?
o If no…Level 2 (next best option): Is an average figure available by country level?
o If no…Level 3 (final option): Use the average contained within the Prudential data model.
Any sites that do not have a property type (e.g. Sales office) will assume the average benchmarking figure for their respective
country.
In the event that there is incomplete information on lease Start Date and End Date, assumes a conservative approach, i.e. the
property is open for the full reporting period
o All costs have been converted to a common currency (GBP) based on Prudential’s end of month spot rate at
30/09/2014. This allows for a normalised GBP/kWh (or other energy unit) to be used for accruals and/or
estimation purposes in the model.
Third party data
verification
Third party data verification has been carried out by Deloitte over total Scope 1 emissions.
KPI Published: Fugitive emissions (Scope 1 emissions)
CO2e emissions resulting from loss of fugitives released into atmosphere.
Definition
Scope of indicator
The Scope covers all Prudential plc. occupied buildings where there is operational control.
reported
Reporting period
01 October 2013-30 September 2014
Unit/Normalisation kg converted to CO2e using Defra 2014emission factors.
Data collection
method
Main assumptions
Third party data
verification
Based on invoices from the provision of top up gases as well as reports from air conditioning engineers and catering equipment
engineers.
No estimations have been applied.
Third party data verification has been carried out by Deloitte over total Scope 1 emissions.
KPI Published: Vehicle Fleet (Scope 1 emissions)
Definition
CO2e emissions resulting from vehicles owned or leased.
Scope of indicator
reported
The Scope covers all Prudential plc. owned cars, vans, planes and minibuses including leased cars operating for business use.
Reporting period
Unit/Normalisation
Data collection
method
01 October 2013-30 September 2014
km travelled by size of vehicle converted to CO2e using Defra 2014 emissions factors. Where km were not available, quantity of fuel
consumed was converted to CO2e using Defra 2014 emissions factors.
Extraction from the expenses system on a quarterly basis for leased cars by number of km travelled by vehicle type and size of engine.
Company owned vehicles, mileage or cost supplied by property contacts.
Main assumptions
Any missing fuel and mileage data has been extrapolated for the full reporting year using average miles or litres per day multiplied by
missing days.
Only registered assets are included. Transport is calculated either based on litres of fuel consumed/purchased or distance travelled.
Data providers were requested to provide litres of fuel where possible, or if not, distance travelled.
For the UK, leased cars conducting business miles were included in reporting.
Third party data
verification
Third party data verification has been carried out by Deloitte over total Scope 1 emissions.
KPI Published: Electricity (Scope 2 emissions)
Definition
CO2e emissions resulting from electricity consumed in kilowatt hours (kWh). Operations utilise energy to generate light, heat,
power, cooling and provide refrigeration.
Scope of indicator
The Scope covers all Prudential plc. occupied and investment buildings where there is operational control.
reported
Reporting period
01 October 2013 -30 September 2014
Unit/Normalisation
kWh converted to CO2e using Defra 2014emissions actors.
Data collection
Invoices and supplier reports are collated and entered into GHG calculation models. Where data has not been obtainable,
method
extrapolation over time period days has been conducted with existing data; an average daily rate per meter squared has been applied
to any missing invoiced days.
Where no data has been received, benchmarking data has been used to estimate kWh for gas use for that property. Further
information is provided within the assumptions section of this report.
Main assumptions
Every building in the site list either has invoice/accrual or estimated electricity consumption/cost.
Estimates and accruals are only applied to months where lease is active.
If we have received an invoice for only part of a month, then data is accrued for the remaining days of the month.
Any sites with no consumption data, an estimation has been applied. An average substitute is calculated using internal benchmarks
following the below levels:.
o Level 1 (best option): Is an average figure available for the country in question by property type?
o If no…Level 2 (next best option): Is an average figure available by country level?
o If no…Level 3 (final option): Use the average contained within the Prudential data model.
Any sites that do not have a property type (e.g. Sales office) will assume the average benchmarking figure for their respective country.
Third party data
verification
In the event that there is incomplete information on lease Start Date and End Date, assumes a conservative approach, i.e. the property
is open for the full reporting period
o All costs have been converted to a common currency (GBP) based on Prudential’s end of month spot rate at
30/09/2014. This allows for a normalised GBP/kWh (or other energy unit) to be used for accruals and/or estimation
purposes in the model.
Third party data verification has been carried out by Deloitte over total Scope 2 emissions.
KPI published: Business Travel (Scope 3 emissions)
Definition
CO2e emissions resulting from air and rail travel.
Scope of indicator
reported
Reporting period
Unit/Normalisation
Data collection method
Main assumptions
Third party data
verification
The Scope covers air and rail travel booked by UK business only
01 October 2013-30 September 2014
km converted to CO2e using Defra 2014 emission factors.
Report provided by two travel agent companies and multiplied. All distances are reported in km and conversion figures use the
DEFRA 2014 including radiative forcing uplift.
Business travel does not include travel booked by individuals and claimed via the expenses system.
N/a
KPI published:Waste (Scope 3 emissions)
Definition
Total CO2e emissions resulting from recycled and non-recycled waste.
Scope of indicator
reported
The Scope of waste reporting covers, all investment properties with operational control, UK occupied properties, US occupied
properties. We do not currently collect waste data for our occupied buildings in Asia, and Continental Europe.
Reporting period
Unit/Normalisation
Data collection method
01 October 2013 -30 September 2014
Tonnes converted to CO2e using Defra 2014 emission factors.
Report provided by waste management companies, property managers and waste transfer notes.
No assumptions or estimations have been made for missing data.
Waste figures do not include buildings where Prudential plc. is a tenant without operational control of waste.
Main assumptions
Weight of waste is based on the assumed weight per ‘uplift’ of different types of recycling, based on industry averages, and
multiplied by the number of ‘uplifts’ in the year at each property.
Waste figures within the UK are inclusive of feminine hygiene.
Third party data
verification
N/a
KPI Published: Water Consumption (Scope 3)
Definition
Total quantity of water recorded in cubic metres.
Scope of indicator
reported
Reporting period
Unit/Normalisation
Data collection method
The Scope covers all Prudential plc. occupied and investment buildings where there is operational control.
Main assumptions
Third party data
verification
N/a
N/a
01 October 2013 -30 September 2014
Cubic Metres.
Consumption recorded for Prudential Occupied from on site weekly meter readings and invoices.
Regional summary of environmental KPIs where data has been disclosed
Scope 2
Scope 1
Fuel
Combustion
Fugitive
emissions
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Scope 3
Business
Travel
Waste
produced
Waste
Recycled
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
Vehicle Fleet Electricity Use
Asia Occupied
Continental
Europe Occupied
UK Occupied
US Occupied
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



















Investments
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N/A
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N/A
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
No data
from EU