Aflac Incorporated Releases First Sustainability Bond Report

COLUMBUS, Ga., March 11, 2022 /3BL Media/ -- Aflac Incorporated announced today that it has released its Sustainability Bond Report one year after issuing its first sustainability bond. The sustainability bond reinforces the company's longstanding commitment to uphold the core values of our "people-first" business approach that balances purpose and profit. The report discloses the net proceeds raised from the March 8, 2021 Sustainability Bond issuance, the allocation of the net proceeds into each Eligible Category under the Sustainability Bond Framework (the Framework), and the balance of unallocated proceeds at the reporting period end.

The report details that since the issuance, $252 million, which represents 63% of the net proceeds, has been allocated to four Eligible Categories under the Framework: Communities, Green Buildings, Renewable Energy and Socioeconomic Advancement and Empowerment. 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, 81% of the investments were new investments. The balance of unallocated proceeds has been invested in cash and cash equivalents in compliance with the Framework.

As part of the Framework, Aflac Incorporated will allocate an amount at least equivalent to the net proceeds from the offering exclusively to existing or future investments in, or financing of, projects which provide environmental or social benefits, meeting eligibility criteria under the Framework within eight categories: Renewable Energy, Energy Efficiency, Green Buildings, Clean Transportation, Sustainable Water Management, Pollution Prevention and Control; Socioeconomic Advancement and Empowerment; and Communities. 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.

Commenting on the report, Aflac Incorporated President and Chief Operating Officer Frederick J. Crawford said: "We have lived and breathed our commitment to our employees, policyholders, investors and communities for decades as a compassionate company and good corporate citizen. Stepping up in this way with a sustainability bond embodies what our company stands for, which is just as important as the products and services we provide. The work we have done has established a foundation for us to make a direct and measurable positive impact on society and the environment. 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 2020 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., where it is a leading supplemental insurer by paying cash fast when policyholders get sick or injured. For more than six decades, 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 voluntary/worksite insurance products. Aflac Life Insurance Japan is the leading provider of medical and cancer insurance in Japan, where it insures 1 in 4 households. In 2021, Aflac Incorporated was proud to be included as one of the World's Most Ethical Companies by Ethisphere for the 15th consecutive year, Fortune's list of World's Most Admired Companies for the 21st time, and in the Dow Jones Sustainability North America Index. In 2021, Aflac Incorporated also became a signatory of the Principles for Responsible Investment (PRI), and in 2022, Bloomberg's Gender-Equality Index included Aflac Incorporated for the third 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."

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
• 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 judgments 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
• the effects of COVID-19 and its variants (both known and emerging), and any resulting economic effects and government interventions, on the Company's business and financial results
• 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
• 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
• the 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 the coronavirus 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