Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Responsible Investment
• Sustainable Insurance
• Information Security and AI Governance
• Sustainable Supply Chain
• Employee Rights and Benefits
• Sustainable Ecology
• Green Business and Operations
• Poverty Alleviation
• Climate Change
• Inclusive Finance
• Technology for Social Good

Environmental Achievements

• Indirectly reduced 64,497.2 tons of carbon emissions in 2019 (a year-on-year increase of 4.78%)
• Achieved progress towards environmental protection targets in carbon emission intensity, paper use intensity, carbon emission reduction potential, and green building.
• Jinan Ping An Financial Center passed China’s Green Building Label (3-star) certification, while its tower office part passed the LEED gold-level pre-certification. Tianjin Ping An Teda Financial Center passed China’s Green Building Label (2-star) certification.

Social Achievements

• Implemented Ping An Rural Communities Support initiative, including Village Officer, Village Doctor, and Village Teacher programs, benefiting over 500,000 people.
• Provided over RMB1 trillion in insurance coverage and financing services for farmers and rural enterprises.
• Served over three million small and micro enterprises with integrated financial services.
• Launched “Ping An Guardian Action”, training 1,565 people in safety and rescue knowledge.
• Ping An Good Doctor benefitted over 300 million patients.
• Ping An Smart City provided services for over 50 million people.

Governance Achievements

• Established ESG policy system covering business code of conduct, corporate governance, responsible investment, sustainable insurance, information security, AI governance, and sustainable supply chain.
• Developed Ping An AI-ESG platform for ESG performance management and investment applications.
• Achieved remarkable progress in authoritative ESG Ratings; MSCI upgraded Ping An's rating.
• Became the first insurance company from mainland China to be selected in the 2019 Dow Jones Sustainability Emerging Markets Index.

Climate Goals & Targets

Environmental Challenges

• Climate change and extreme weather pose severe challenges for agricultural production, water resources, ecological environment, energy, major projects, social and economic development.
• Inadequate social insurance supply capacity to meet the fast-growing health insurance needs of people.
• Gap between the fast-growing health insurance needs of people and the social insurance supply capacity.

Mitigation Strategies

• Integrated ESG risk management into the Group’s investment risk management system.
• Categorized ESG risks into climate change and social risk, setting criteria for risk assessment based on the Group’s asset portfolios.
• Developed sustainable insurance products, including climate insurance.
• Established a “green credit regime” management system and business development mechanism to strictly control business related to high-pollution, high-energy consumption, and excessive production capacity industries.
• Launched comprehensive insurance for the elderly, critical illness insurance, obesity insurance, and special insurance for frequently occurring diseases.

Supply Chain Management

Supplier Audits: 100 suppliers participated in ESG-themed training

Responsible Procurement

• Ping An Sustainable Supply Chain Policy
• ESG requirements integrated into supplier contracts

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products
• Green investment

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 27001

Third-party Assurance: Deloitte Touche Tohmatsu Certified Public Accountants (LLP)

Sustainable Products & Innovation

• Sustainable insurance products
• Green credit products

Awards & Recognition

• Dow Jones Sustainability Emerging Markets Index
• MSCI ESG Rating BBB
• Hang Seng China Index ESG Index
• Hang Seng Corporate Sustainability Index Series A+
• Greenway Group Most Socially Responsible Award
• International Financial News Annual Poverty Alleviation Enterprise Award
• Sina Finance Annual Sustainability Award

Environmental Metrics

ESG Focus Areas

• ESG Investing in China

Climate Goals & Targets

Environmental Challenges

• ESG ratings and data coverage in the domestic market need to be further enhanced to improve alignment with the Chinese market to support the enrichment of ESG themed investment products
• Lack of historical data for backtesting strategy development
• Improving coverage for fixed-income is another challenge due to lack of information disclosure for bond issuers
• Lack of established ratings and data for fixed income resulting in a small number of fixed income ESG products
• Gap in financial products that specifically focus on climate risk mitigation

Mitigation Strategies

• Developing NLP based transparency indicators to distinguish between Brown vs. Green firms and detect areas of under-reporting by Brown firms
• Using several ESG ratings to detect anomalies between companies that do disclose vs. those who do not
• Improving data and rating providers in Chinese market by adjusting indicators and evaluation standards beyond integrating with international guidelines
• Taking advantage of the diversity of existing data and rating providers in China
• Actively proposing measures to address climate change, engaging in better information disclosure and providing data support for financial market research and development of corresponding financial products

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainable Insurance
• Responsible Banking
• Responsible Investing
• Responsible Products
• Consumer Protection and Experience
• Development and Welfare of Employees and Agents
• Rural Revitalization and Community Impact
• Climate Change and Carbon Neutrality
• Corporate Governance
• Business Code of Conduct
• Information Security and AI Governance
• Technology-driven Sustainable Development
• Sustainable Supply Chains

Environmental Achievements

• Greenhouse gas emissions in the workplace decreased by 24% over the previous year.
• Green investment and financing reached over RMB 282.3 billion, green banking over RMB 182 billion, and green premiums exceeded RMB 25.1 billion in 2022.
• 19 projects obtained green building certification.
• Achieved carbon neutrality in operations by 2030 (target).

Social Achievements

• Launched innovative package of exclusive products and green channels to satisfy the financial needs of new citizens.
• Ping An Property & Casualty provided accident insurance for food delivery drivers and housekeeping staff.
• Ping An Life offered new integrated healthcare solutions of "fee-paying + medical service".
• Ping An Annuity provided Hui Min Bao (inclusive supplementary medical insurance) for over 50 million people.
• Invested over RMB 77.1 billion in supporting the development of rural industries.
• Ping An Property & Casualty assisted 433,000 farmers from 19 provinces in steadily increasing their income with the policy of "Revitalization insurance".
• More than 145 million customers used medical and health services, and home-based elderly care services covered 32 cities.
• Over 571,515 volunteers from Ping An employees and agents participated in various activities.

Governance Achievements

• Established an ESG policy statement system for 13 material ESG issues.
• 100% coverage of ethical standards and anti-corruption training.
• 100% compliance with regulations on anti-monopoly and fair trade, anti-money laundering, anti-terrorist financing and sanctions.
• Verification rate of reported issues in letters was 100%.

Climate Goals & Targets

Environmental Challenges

• Demographic Change and Health Risk: Urbanization and aging population create new demands for insurance products and increase health risks.
• Climate Risk: Climate change impacts agricultural production, water resources, and energy, posing investment and operational risks.

Mitigation Strategies

• Optimizing the supply of protection and savings products; creating responsible products based on "integrated finance + healthcare"; implementing a responsible investment strategy; Ping An Bank gradually reducing the scale and proportion of carbon-intensive loans; establishing a comprehensive governance mechanism to manage climate-related issues; integrating climate risk management into product development, risk prevention, underwriting and claims, product management and reinsurance.

Supply Chain Management

Supplier Audits: 8,840 suppliers approved after audit; 127 suppliers eliminated.

Responsible Procurement

• Incorporating sustainability clauses into 100% of supplier cooperation contracts; requiring suppliers to participate in Ping An's ESG training; enhancing integrity in supply chain management.

Climate-Related Risks & Opportunities

Physical Risks

• Climate disasters causing physical losses to assets.

Transition Risks

• New economic policies on low-carbon transition; emerging low-carbon technologies; price fluctuation in carbon market; higher environmental standards.

Opportunities

• Market opportunities driven by carbon neutrality policies; increasing demands for green products and services; improved resource efficiency; resilience through green finance services.

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, SASB Standards

Certifications: ISO 27001

Third-party Assurance: Deloitte Touche Tohmatsu Certified Public Accountants (LLP)

Sustainable Products & Innovation

• Green insurance products; ocean carbon sink index insurance; green building performance liability insurance; Xin An - Million Medical Insurance; Xin'an - Travel Accident Insurance.

Awards & Recognition

• Awards of Excellence in ESG, CSR Initiative of the Year, CDP Environmental Leadership Award, KPMG China "Future·ESG" ESG Award, Top 10 Caring Enterprises, etc.

Environmental Metrics

ESG Focus Areas

• Climate Change Adaptation
• Disaster Risk Management
• Green Insurance
• Sustainable Development

Environmental Achievements

• Invested over 500 million yuan (US$ 70m) in disaster prevention and mitigation in 2023.
• Achieved green insurance premiums of 37.296 billion yuan (US$ 5.2b) in 2023, with a year-on-year premium growth rate of over 40% from 2022.

Social Achievements

• Issued 572,000 major disaster alerts, sent 8.57 billion warning messages, covering 87.04 million individual and corporate clients in 2023.
• Provided on-site hazard inspection services to more than 127,000 enterprises and conducted 829 safety training sessions, covering 72,000 enterprises and 169,000 participants in 2023.

Governance Achievements

• Established a comprehensive management framework to drive and oversee ESG management, with the Board of Directors overseeing ESG matters and the Executive Committee's Sustainability Committee guiding the practical management of key ESG issues.

Climate Goals & Targets

Environmental Challenges

• Increased disaster risks due to climate change leading to higher compensation costs for insurance companies.
• Higher premiums potentially becoming unaffordable for policyholders, pushing some risks beyond the insurability threshold.
• Widening global insurance protection gap.
• Traditional actuarial theory being challenged by changing global weather patterns.

Mitigation Strategies

• Investing over 1%-2% of premiums in risk reduction over five years, and gradually increasing to 2%-4% over the following 5-10 years.
• Adopting a business model of "loss compensation + risk reduction services + risk transfer."
• Incorporating loss reduction elements into insurance pricing.
• Establishing a multi-level risk diversification mechanism involving primary insurers, reinsurers, capital markets, etc.
• Establishing a longer-term (multi-year) unearned premium reserve.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons
• Heavy rain
• Floods
• Wildfires
• Droughts

Opportunities

• Green insurance
• Investment in green finance
• Risk reduction services

Sustainable Products & Innovation

• Green insurance products such as environmental liability insurance, carbon insurance, and green project loan guarantee insurance