Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions by 17.51% (Scope 1) and increased by 3.8% (Scope 2) compared to 2017. Achieved LEED Gold certification for Hangzhou Xizi International building.
• Implemented energy conservation measures in offices (reducing air conditioning temperature, turning off lights and computers when leaving).

Social Achievements

• Launched the “Multi-protection Critical Illness Insurance” product, covering multiple diseases and claims.
• Improved customer service, achieving a 92.28% positive feedback rate on claim settlement.
• Implemented various public welfare programs, including donating insurance to sanitation workers (515,000 beneficiaries) and targeted poverty alleviation programs (donating over RMB 3 billion).

Governance Achievements

• Established a risk-oriented management framework, incorporating seven types of risk management systems.
• Formulated accountability measures for non-compliance and internal cases.
• Implemented measures for reporting and handling insurance illegal activities.

Climate Goals & Targets

Environmental Challenges

• Complex and severe economic and financial situations in China in 2018.
• Negative growth in the life insurance industry during the reporting period.

Mitigation Strategies

• Stayed committed to high-quality development, actively prevented operational risks, strengthened supply-side reform, and improved customer services.
• Implemented a prudent investment philosophy, resulting in a 4.6% total investment yield and no defaults.

Supply Chain Management

Supplier Audits: 558 suppliers signed contracts with the Headquarter in 2018

Responsible Procurement

• Supplier screening process considers production safety and environmental protection (environmental protection policies, energy saving and emission reduction, employee safety).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: CSRC – Standards for the Contents and Formats of Information Disclosure by Companies Offering Securities to the Public No.2 – Contents and Formats of Annual Reports (2017 Revision), SSE - Guidelines on Preparation of Report on Company’s Fulfillment of Social Responsibilities, SEHK – Guidelines for Environmental, Social and Governance Reporting, CBIRC – Guiding Opinions on the Insurance Sector’s Implementation of Social Responsibility, China Academy of Social Sciences – Guideline to the Compilation of China Corporate Social Responsibility Report (CASS-CSR4.0)

Sustainable Products & Innovation

• Multi-protection Critical Illness Insurance

Awards & Recognition

• LEED Gold certification for Hangzhou Xizi International building

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Renovated gas boilers in Yizhuang Park, expected to save 600,000 kWh to 700,000 kWh of electricity each year
• New Era Sales Platform reduced paper consumption, equivalent to 23.5 tonnes of carbon dioxide equivalents reduction

Social Achievements

• Launched "Winning in NCI" organizational development activity, increasing sales agents by nearly 40%
• Implemented "Large-scale public welfare action: Caring for sanitation workers across the country", benefiting more than 735,000 sanitation workers
• Implemented targeted poverty alleviation projects, benefiting more than 20,000 people

Governance Achievements

• Strengthened risk control management system
• Improved anti-corruption system
• Enhanced anti-money laundering system

Climate Goals & Targets

Environmental Challenges

• Intensifying market competition
• Business growth lower than peers
• Team size failed to expand for years
• Resource allocation deviated from the market
• Insufficient internal management coordination

Mitigation Strategies

• Intensive research to identify and solve problems
• Established a business strategy of "team expanding before business growth"
• Revised basic law for agents to improve retention
• Pushed forward the reform of the individual insurance channel
• Improved IT research and development capabilities
• Optimized the management of existing subsidiaries

Supply Chain Management

Responsible Procurement

• Production safety and environmental protection as critical evaluation factors; differentiated environmental protection standards for suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Standards for the Contents and Formats of Information Disclosure by Companies Offering Securities to the Public No.2 – Contents and Formats of Annual Reports (2017 Revision), Guidelines on Listed Companies' Environmental Information Disclosure, Guidelines on Preparation of Report on Company's Fulfilment of Social Responsibilities, Guiding Opinions on the Insurance Sector's Implementation of Social Responsibility, China Academy of Social Sciences – Guideline to the Compilation of China Corporate Social Responsibility Report (CASS-CSR4.0), Environmental, Social and Governance Reporting Guide

Awards & Recognition

• A2 by Moody's
• A by Fitch
• 226th in Top 500 Asian Brands
• 336th in Forbes Global 2000
• 126th in Top 500 Chinese Enterprises
• "3·15 National Excellent Model Enterprise of Quality and Integrity Brand"
• "Five-star Service Quality Award"
• 64th in Fortune 500
• "Award for Gold-medal Innovative Bank-insurance Products of 2019"
• "Ark Award for Gold-medal Insurance Products of 2019"
• "The Most Social Responsible Happy Enterprise of 2019"
• "Pioneer Award for Targeted Poverty Alleviation"
• 94th in China's Top 500 Most Valuable Brands
• 60th in BrandZ™ Top 100 Most Valuable Chinese Brands
• "Top 100 Financial Service Provider of 2019"

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced food waste in Yizhuang Support Center canteen by 2.2 tonnes compared to the previous month.
• Renovated gas boilers in Yizhuang, expecting to save 1,866,100 kWh of electricity annually.
• Replaced old lamps with voice-activated lamps in NCI Tower underground garage, reducing lighting by 50%.

Social Achievements

• Launched new product Huijiabao, widely recognized by the market.
• Increased agent headcounts by 19.5% year on year, totaling 606,000.
• Implemented “benchmarking and surpassing” internal management project, fulfilling 98 out of 119 benchmarking indicators.

Governance Achievements

• Established an ESG Working Committee responsible for CSR strategy and target implementation.
• Conducted three ESG and green finance training sessions at the Board level.
• Issued “Terms of Reference of the Environmental, Social and Governance (ESG) Working Committee”.

Climate Goals & Targets

Environmental Challenges

• Sudden outbreak of COVID-19 impacting business targets and sales.
• Uncertainty in the insurance industry due to changes in the market and environment.

Mitigation Strategies

• Convened seminars to set business scale and development pace, mobilizing workforce and resources.
• Relaxed assessment policy, launched new basic law for agents, and offered resources to address urgent needs.
• Innovatively adopted online recruitment and online live broadcast to reach more people.

Supply Chain Management

Responsible Procurement

• Production safety and environmental protection are critical evaluation factors when screening suppliers.
• Differentiated environmental protection standards are set for suppliers based on project characteristics.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Standards for the Contents and Formats of Information Disclosure by Companies Offering Securities to the Public No.2, Guidelines on Listed Companies’ Environmental Information Disclosure, Guidelines on Preparation of Report on Company’s Fulfilment of Social Responsibilities, CASS-CSR4.0, ESG Reporting Guide (Appendix 27 to Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited)

Awards & Recognition

• Golden Jubilee Award - Excellent Insurance Company of 2020
• Excellent Socially Responsible Enterprise Award
• Ark Award for High-quality Development Insurance Company of 2020
• Excellent Chinese Life Insurance Company of 2019-2020
• Golden Tripod Award - Outstanding Life Insurance Company of 2020
• Excellent and Competitive Life Insurance Company of 2020
• Outstanding Life Insurance Company
• Outstanding Insurance Charity Award

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced kitchen waste in the canteen by about 0.6 tons compared with 2020.
• Electricity consumption in the public area of Yizhuang Support Center declined by 6.70% year-on-year compared with last year.
• Reduced electricity consumption in NCI Building by 6% compared to 2019.

Social Achievements

• Launched the “NCI walks with you to create a beautiful city -donating insurance to sanitation workers nationwide” project, benefiting more than 900,000 sanitation workers.
• Invested 9.7 million yuan in Shibing, Guizhou for rural revitalization.
• Improved employee catering quality by upgrading canteen equipment and implementing a buffet system.

Governance Achievements

• Established an Environmental, Social and Governance (ESG) Affairs Working Committee.
• Conducted three ESG training sessions at the board level.
• Implemented a comprehensive risk management system integrating ESG risks.

Climate Goals & Targets

Environmental Challenges

• Severe market environment and complex industry situation.
• Structural over-capacity and structural under-capacity challenging the life insurance industry.

Mitigation Strategies

• Implemented the new development philosophy, served the real economy and national development.
• Intensified the leadership of the Party and promoted various reforms.
• Adhered to high-quality development, focused on life insurance business, and scientifically responded to market changes.

Supply Chain Management

Supplier Audits: Annual evaluation of 151 service providers

Responsible Procurement

• Centralized Procurement Supplier Management Rules
• Detailed Rules for Centralized Procurement Leading Group
• Incorporating supplier’s social responsibility management into centralized procurement management.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Standards for the Contents and Formats of Information Disclosure by Companies Offering Securities to the Public No.2, No. 1 Guidelines for Self-Discipline Supervision of Listed Companies of Shanghai Stock Exchange, Guidelines on Preparation of Report on Company’s Fulfilment of Social Responsibilities, Guiding Opinions on the Insurance Sector’s Implementation of Social Responsibility, Guideline to the Compilation of China Corporate Social Responsibility Report (CASS-CSR4.0), Environmental, Social and Governance Reporting Guide

Awards & Recognition

• Beijing Water Saving Unit
• 2021 China ESG Golden Award - Best Responsible Investment Insurance Company
• The Most Influential Insurance Brand of 2021
• Ark Award for High-quality Development Insurance Company of 2021
• Golden Financial Management · Annual Corporate Social Responsibility Award 2021
• Golden Jubilee Award - Excellent Insurance Company of 2021
• Golden Tripod Award - Outstanding Life Insurance Company of 2020

Environmental Metrics

ESG Focus Areas

• Climate Change
• Employee Rights
• Technology Empowerment
• Public Welfare
• Supply Chain Management
• Risk Management
• Responsible Investment
• Consumer Rights Protection
• Information Security
• Rural Revitalization
• Serving the National Strategy

Environmental Achievements

• Reduced electricity consumption in the NCI Building by approximately 5.30% year-on-year.
• Reduced water consumption in the NCI Building through various measures.
• Implemented green initiatives at the NCI Yizhuang Support Centre, reducing food waste.

Social Achievements

• Launched Premier Preferred Exclusive Commercial Pension Insurance, the first personal pension insurance product sold in three banks.
• Implemented policy-based health insurance programs covering 17.95 million people in nine provinces.
• Carried out 32 beneficiary insurance projects, benefiting over 1.6 million people.
• Provided insurance coverage to 2,679 sanitation workers.
• Implemented the “Warm Heart Plan,” providing comprehensive protection services for families who have lost their only child.
• Provided financial support to micro, small, and medium-sized enterprises (MSMEs), with investments reaching RMB3 billion.
• Created 35 volunteer teams nationwide, with 46,308 volunteers participating in 3,649 activities.
• Donated more than RMB18.01 million to public welfare causes.

Governance Achievements

• Established a sound compliance management system, an anti-corruption system, and improved money laundering risk management.
• Implemented a standardized procurement management system.
• Improved the construction of a consumer rights protection system and implemented an intellectual property management system.
• Strengthened Party discipline and improved the institutional mechanism for Party supervision.
• Strengthened risk control management and improved the internal control system.

Climate Goals & Targets

Environmental Challenges

• Climate change physical risks (extreme weather events impacting operations and investments).
• Climate change transition risks (shifts in policies, market preferences, and technology impacting business models).
• Supply chain disruptions.
• Maintaining compliance with evolving regulations.

Mitigation Strategies

• Developed emergency plans for severe weather conditions.
• Actively seeking investment opportunities in green and low-carbon areas.
• Developing green financial products.
• Strengthening compliance operations and risk management systems.
• Implementing various energy-saving and emission reduction measures.

Supply Chain Management

Responsible Procurement

• Incorporating supplier’s social responsibility management into centralized procurement management.
• Annual evaluation of service providers based on performance.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events affecting human health, investment returns, and operations.

Transition Risks

• Uncertainty in green and low-carbon transformation, potential stranded assets, and challenges in achieving comparative advantage in green technologies.

Opportunities

• Investment opportunities in green investment-related areas.
• Development of green financial products.

Reporting Standards

Frameworks Used: Standards for the Contents and Formats of Information Disclosure by Companies Offering Securities to the Public No.2, Guidelines for Self-Discipline Supervision of Listed Companies of Shanghai Stock Exchange, Guidelines on Preparation of Report on Company’s Fulfilment of Social Responsibilities, Guiding Opinions on the Insurance Sector’s Implementation of Social Responsibility, Guideline to the Compilation of China Corporate Social Responsibility Report (CASS-CSR4.0), Environmental, Social and Governance Reporting Guide

Awards & Recognition

• Beijing Pioneer Worker
• Beijing Advanced Collective for the 2022 Winter Olympic Games and Winter Paralympic Games
• 2022 Outstanding Contribution to the Digital Transformation of the Financial Industry through Technology
• Insurance Industry Customer Service Model Case

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Issued the Twenty Articles to Practice Economy (《總公司厲行 節約「二十條」倡議書》) to save energy and reduce emissions; applied mobile platform and mobile terminals for customer and order management, thereby reducing paper consumption in traditional service.

Social Achievements

• Supported the development of strategically emerging industries and specialized, refinement, differential and innovation enterprises with an investment balance of RMB22,647 million; assisted micro, small and medium-sized enterprises in solving the problem of difficult and expensive financing with an investment balance of RMB3,655 million; invested RMB155,557 million to promote coordinated regional development and put RMB18,684 million to support energy conservation and carbon reduction of traditional industries, to support green and low-carbon industries; actively promoted policy-oriented medical insurance projects, undertook 11 such projects and achieved premium income of RMB610 million, covering 17.4962 million insured people; continued to carry out the “Public Welfare Activity for Sanitation Workers” nationwide through the Foundation, benefiting more than 920,000 sanitation workers; total number of volunteers reached 44,094.

Governance Achievements

• Held two shareholders’ general meetings, six meetings of the Board and five meetings of the Board of Supervisors; shareholders’ general meeting, the Board, the Board of Supervisors and senior management all operated legally and independently; all directors, supervisors and senior management have complied with the code of conduct specified in the Model Code and Administrative Measures for Shareholding and Changes Thereof of Directors, Supervisors and Senior Management of New China Life Insurance Company Ltd. during the reporting period.

Climate Goals & Targets

Environmental Challenges

• Slowing global economic growth; China’s economy recovering as a whole, but the foundation for such recovery is not solid; complex and severe international environment; changes in the social and economic environment, demographic structure and customer needs; industry still in deep adjustment and transformation; risk prevention and control in key areas still need continuous attention.

Mitigation Strategies

• Strive for high-quality development, deepen transformation and development, continue to improve product and service and strictly prevent risks; promote the collaboration and integration development; strengthen the building of high-performing sales team; optimize customer management; strictly abide by compliance operation; optimize comprehensive risk management system, further consolidate the foundation of risk management, improve tools, mechanism and system for risk management, and strengthen risk monitoring in key areas.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Fortune 500 (2023), Forbes 500 (2023), World’s top 50 most valuable insurance brands (9 consecutive years), Fitch Ratings Insurer Financial Strength (IFS) Rating at “A” (Strong), China’s 500 Most Valuable Brands (2023), World’s 100 Most Valuable Insurance Brands (2023), Top 10 Most Influential Chinese Insurance Brands of BrandZ (2023)