Aflac Incorporated Publishes Second-Year Sustainability Bond Report

COLUMBUS, Ga., March 6, 2023 /PRNewswire/ -- Aflac Incorporated announced today that it has published its second Sustainability Bond Report two years after issuing its first sustainability bond on March 8, 2021. The sustainability bond reinforces the company's longstanding commitment to uphold the core values of our business approach that balances purpose and profit. With the publication, the Company has fulfilled its commitment to publish such a report every year until fully allocated.

The report details that since the issuance, $397 million, which represents 100% of the net proceeds, has been allocated to four Eligible Categories under Aflac Incorporated's Sustainability Bond Framework: Communities, Green Buildings, Renewable Energy and Socioeconomic Advancement and Empowerment. These categories also align with and incorporate the priorities set forth in the Sustainable Development Goals (SDGs) adopted by all United Nations Member States in 2015. The report also describes, where feasible, the estimated environmental and social impacts of the assets, which range from 268,700 megawatts of solar power generation to 18,064 patients receiving access to quality healthcare.

While the Framework permits net proceeds to be attributed to investments in or financings of Eligible Sustainability Assets completed up to 36 months before the issuance of a Sustainability Bond, 88% of the investments were new investments.

Commenting on the report, Aflac Incorporated President and Chief Operating Officer Frederick J. Crawford said: "In today's environment, there is a demand from both customers and investors to balance purpose and profit like never before, and that is what we are doing. Call it corporate social responsibility; environmental, social and governance; or just doing the right thing. At Aflac, we believe that helping our stakeholders and the people in our communities have a better quality of life, while being mindful of environmental impacts, is not only the right thing to do, but that it also makes good business sense and gives people a greater desire to be affiliated with of our company. As we strive to deliver value to the people who depend upon us, we will continue to identify ways to advance the approach that is known as The Aflac Way."

Investors may learn more about Aflac Incorporated and its commitment to environmental, social, and governance (ESG), and social responsibility, including through its 2022 Task Force on Climate-related Financial Disclosures (TCFD) Report, at investors.aflac.com under "Sustainability."

ABOUT AFLAC INCORPORATED
Aflac Incorporated (NYSE: AFL) is a Fortune 500 company helping provide protection to more than 50 million people through its subsidiaries in Japan and the U.S., paying cash fast when policyholders get sick or injured. For over 67 years, the insurance policies of Aflac Incorporated's subsidiaries have given policyholders the opportunity to focus on recovery, not financial stress. In the U.S., Aflac is the number one provider of supplemental health insurance products.¹ Aflac Life Insurance Japan is the leading provider of cancer and medical insurance policies in force in Japan, where it insures 1 in 4 households. In 2021, the company became a signatory of the Principles for Responsible Investment (PRI). In 2022, the company was included in the Dow Jones Sustainability North America Index, as one of the World's Most Ethical Companies by Ethisphere for the 16th consecutive year, on Fortune's World's Most Admired Companies for the 22nd time and in Bloomberg's Gender-Equality Index for the fourth consecutive year. To find out how to get help with expenses health insurance doesn't cover, get to know us at aflac.com or aflac.com/espanol. Investors may learn more about Aflac Incorporated and its commitment to ESG and social responsibility at investors.aflac.com under "Sustainability."

¹ LIMRA 2021 U.S. Supplemental Health Insurance Total Market Report

FORWARD-LOOKING INFORMATION
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" to encourage companies to provide prospective information, so long as those informational statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those included in the forward-looking statements. The company desires to take advantage of these provisions. This document contains cautionary statements identifying important factors that could cause actual results to differ materially from those projected herein, and in any other statements made by company officials in communications with the financial community and contained in documents filed with the Securities and Exchange Commission (SEC). Forward-looking statements are not based on historical information and relate to future operations, strategies, financial results or other developments. Furthermore, forward-looking information is subject to numerous assumptions, risks and uncertainties. In particular, statements containing words such as "expect," "anticipate," "believe," "goal," "objective," "may," "should," "estimate," "intends," "projects," "will," "assumes," "potential," "target," "outlook" or similar words as well as specific projections of future results, generally qualify as forward-looking. Aflac undertakes no obligation to update such forward-looking statements.

The company cautions readers that the following factors, in addition to other factors mentioned from time to time, could cause actual results to differ materially from those contemplated by the forward-looking statements:

difficult conditions in global capital markets and the economy, including those caused by COVID-19
defaults and credit downgrades of investments
global fluctuations in interest rates and exposure to significant interest rate risk
concentration of business in Japan
limited availability of acceptable yen-denominated investments
foreign currency fluctuations in the yen/dollar exchange rate
differing interpretations applied to investment valuations
significant valuation judgments in determination of expected credit losses recorded on the Company's investments
decreases in the Company's financial strength or debt ratings
decline in creditworthiness of other financial institutions
concentration of the Company's investments in any particular single-issuer or sector
major public health issues, including COVID-19 and any resulting or coincidental economic effects, on the Company's business and financial results
the Company's ability to attract and retain qualified sales associates, brokers, employees, and distribution partners
deviations in actual experience from pricing and reserving assumptions
ability to continue to develop and implement improvements in information technology systems and on successful execution of revenue growth and expense management initiatives
interruption in telecommunication, information technology and other operational systems, or a failure to maintain the security, confidentiality or privacy of sensitive data residing on such systems
subsidiaries' ability to pay dividends to the Parent Company
inherent limitations to risk management policies and procedures
operational risks of third party vendors
tax rates applicable to the Company may change
failure to comply with restrictions on policyholder privacy and information security
extensive regulation and changes in law or regulation by governmental authorities
competitive environment and ability to anticipate and respond to market trends
catastrophic events, including, but not limited to, as a result of climate change, epidemics, pandemics (such as COVID-19), tornadoes, hurricanes, earthquakes, tsunamis, war or other military action, terrorism or other acts of violence, and damage incidental to such events
ability to protect the Aflac brand and the Company's reputation
ability to effectively manage key executive succession changes in accounting standards
level and outcome of litigation
allegations or determinations of worker misclassification in the United States