AIA gives due consideration to ESG performances in all investment decisions and adopts an engagement rather than an exclusion approach. Starting from the baseline that all portfolio companies must comply with ESG regulatory requirements, AIA uses proactive engagement about ESG standards. In our experience, enterprises that comply with established ESG standards are less likely to suffer from “black swan” events (which would result in higher costs of business), and are more likely to yield higher long-term returns. Therefore, we engage rather than exclude: we work with businesses to improve their ESG practices, rather than excluding them from the invested universe. Engagement leads to enhancements in the value of both for the portfolio companies, and the communities they serve.