Climate Change Data

Environmental Metrics

ESG Focus Areas

• Compliant Operation
• Providing Insurance Services with a Caring Hand
• Professional Service Team
• Sharing Green Ecology
• Contribution to Society and Livelihood

Environmental Achievements

• Reduced total electricity consumption by around 8% compared to the previous year.
• Reduced total water consumption by over 3% compared to 2018.
• Reduced total paper usage by 20% compared to 2018.
• Reduced total GHG emissions by around 20% compared to the previous year.

Social Achievements

• Received and properly handled a total of 3,798 complaints.
• Organized 234 training sessions amounting to more than 500 training hours with 6,728 participants.
• No cases of child or forced labor.
• No lost days due to work injury or work-related fatalities.

Governance Achievements

• Established an Environmental, Social and Governance Management Committee in 2017.
• Formulated an ESG Policy.
• Formulated Regulations on Compliance Management and Regulations on Risk Management.
• No lawsuits or cases involving corruption, bribery, extortion, fraud, or money laundering.

Climate Goals & Targets

Environmental Challenges

• Global water shortage
• Reducing GHG emissions and energy consumption

Mitigation Strategies

• Implemented a green office policy and a series of measures for energy saving, water resources management, paperless office, waste management and air emissions reduction.
• Using innovative technologies to reduce GHG emissions and energy consumption.
• Using water-saving sanitary wares, posting reminders to save water, and regularly checking water meter readings.

Supply Chain Management

Responsible Procurement

• Regulations on Procurement and Bidding Management
• Commitment Letter for Evaluation Integrity

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Hong Kong Stock Exchange ESG Reporting Guide

Awards & Recognition

• Numerous awards received by ZhongAn Insurance and ZhongAn Technology (listed in the report)

Environmental Metrics

ESG Focus Areas

• Operational Compliance and Internal Control
• Technology Leader in the Insurance Industry —Providing Insurance Services with a Caring Hand
• Humanistic Cares
• Sharing Green Ecology
• Contribution to Society and Livelihood

Environmental Achievements

• Reduced total electricity consumption by approximately 55.14% compared to the previous year (excluding canteen electricity).
• Reduced total water consumption by 2.06% compared to the previous year.
• Reduced total paper usage by 47.4% compared to the previous year (due in part to COVID-19).

Social Achievements

• Organized more than 20 training sessions amounting to more than 500 training hours with nearly 1,000 employee participants.
• Launched the second season of “Be your feather e” welfare activity, providing teachers and students with workplace experience and technology classes.
• Established a community base in Qiandao Lake to support water protection efforts.

Governance Achievements

• Formulated “Regulations on Compliance Management” and “Regulations on Risk Management” in accordance with regulatory requirements.
• Established a customized customer identification regime to ensure transaction security.
• Formulated the “ZhongAn Integrity Governance Management Policy” to strengthen integrity governance and internal control.

Climate Goals & Targets

Environmental Challenges

• Reducing greenhouse gas emissions and energy consumption.
• Managing water resources effectively.
• Minimizing waste generation.

Mitigation Strategies

• Implemented a green office policy and adopted measures for energy saving, water resources management, paperless office, waste management, and air emissions reduction.
• Used water-saving sanitary wares and posted reminders to save water.
• Implemented waste classification management and encouraged recycling.

Supply Chain Management

Responsible Procurement

• Procurement Management Policy
• Commitment Letter for Evaluation Integrity
• Prioritization of environmentally friendly suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited)

Awards & Recognition

• Numerous awards received by ZhongAn, Nova Technology, and ZhongAn International in 2020 (listed in section 4.1).

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Risk Management
• Business Ethics
• Privacy and Data Security
• Supply Chain Management and Responsible Sourcing
• Product and Service Innovation
• Financial Inclusion
• Protection of Customer Rights and Interests
• Diversity and Inclusion
• Talent Development and Training
• Employee Health and Safety
• Employee Rights and Care
• Climate Change Responses
• Responsible Investment
• Green Development and Operation
• Community Participation and Philanthropy

Environmental Achievements

• Achieved electricity efficiency goals (maintaining 130 kWh per employee)
• Achieved water efficiency target (maintaining a water consumption density of 4 cubic meters per employee)
• Did not violate any environmental laws and regulations
• Launched the “New Journey, Green Running” campaign promoting a green lifestyle
• Increased share of NEV insurance business by 6%, with an annual growth rate of 209%
• Launched over 50 green insurance products, providing over 2 million green insurance policies

Social Achievements

• Employee satisfaction was 84.1 (out of 100)
• Launched the “ZhongAn Physical and Mental Care Program” for employee mental health
• Organized multiple courses on children education for employees
• Established 8 sports clubs and carried out more than 270 activities
• Launched the “exclusive right” protection service for elderly customers
• Provided free health diagnosis in communities
• Made a targeted donation of RMB 50,000 to Chahar Right Middle Banner in Inner Mongolia for the construction and operation of the Equestrian Culture Industrial Park
• Launched the “Compassionate Management of Stray Animals” public welfare alliance

Governance Achievements

• Established or revised 102 compliance management policies
• Conducted various forms of compliance training activities
• Organized risk management training on the regulatory rules of C-ROSS for over 2,000 employees
• Formulated the 2023 Master Plan for Risk Management
• Carried out 9 business ethics training sessions and examinations with 100% coverage among employees
• Improved the anti-money laundering system
• Updated and improved the Management Regulations for intellectual property rights management
• Group’s information security management system passed the annual audit of ISO 27001, ISO 20000, and CMMI-DEV Level 5 Certification
• Conducted training and examination on security awareness for all employees
• Conducted a performance evaluation on 136 suppliers

Climate Goals & Targets

Environmental Challenges

• Climate change exacerbating extreme weather and natural disasters, leading to higher insurance risks
• Irreversible climate impacts such as rising sea levels and increasing temperatures
• Stringent climate-related policies and legal requirements
• Rapid development of clean energy technology posing challenges in accurately pricing underwriting for new technologies

Mitigation Strategies

• Predicting and minimizing the impact of climate change-induced floods on auto insurance claims
• Adjusting terms of insurance products and deductibles in reinsurance contracts
• Actively developing pricing methods for new energy vehicle insurance
• Integrating low-carbon operations, energy saving and emission reduction into daily operation management
• Optimizing various water saving actions

Supply Chain Management

Supplier Audits: 136 suppliers of important categories received communication and guidance

Responsible Procurement

• Supplier ESG risk assessment
• Training and communication mechanisms to help suppliers improve their ESG management ability
• Requirements for green products and services when selecting suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather and natural disasters
• Floods

Transition Risks

• Stringent climate-related policies and legal requirements
• Rapid development of clean energy technology

Opportunities

• Increased demand for green insurance and services
• Growth of green finance market
• Enhancing resource efficiency and utilization of clean energy

Reporting Standards

Frameworks Used: Hong Kong Stock Exchange ESG Reporting Guide, GRI Standards, UN Sustainable Development Goals (SDGs), MSCI ESG ratings

Certifications: ISO 27001, ISO 20000, CMMI-DEV Level 5

Sustainable Products & Innovation

• Green insurance products
• NEV insurance

Awards & Recognition

• Annual Outstanding Insurance Company Award
• Top 20 Green Finance Pioneer Institutions
• Top 50 Digital Finance Companies in China
• 2023 ESG Excellent Case Collection
• 2023 Shanghai Fintech Outstanding Application Scenarios and Solutions Selection