HONG KONG and SHANGHAI, November 21, 2022 /PRNewswire/ — Ping An Insurance Company (Group) of China, Ltd. (“Ping An” or the “Group”, HKEx:2318; SSE:601318) uses financial innovation to support China energy transition and the fight against climate risk, declared Richard Shengsecretary of the board of directors. Mr. Shengspeaking by videoconference, participated in a seminar on green and sustainable finance at the pavilion of china from 27 Conference of the Parties of the United Nations Climate Change Conference (COP 27).
“Climate is a common challenge facing all of humanity,” said Mr.Sheng. “As estimated, to achieve carbon neutrality, China needs direct investments amounting to more than 100 trillion RMBproviding opportunities for financial institutions to undertake the mission of creating social value while improving revenues.”
Managing the risks associated with climate change is an important element of the Group’s long-term development strategy. In his second Working Group on Climate-Related Financial Disclosures (TCFD) in 2021, Ping An disclosed the bank’s credit and investment portfolio and corresponding risk exposure in eight high-carbon sectors: coal, steel, cement, nonferrous metals, papermaking , aviation, petrochemical and chemical . Ping An made a visionary decision by investing in green and low-carbon assets and reducing the proportion of high-carbon assets to mitigate financial risks from climate change. It is to support China targets to peak carbon emissions by 2030 and achieve carbon neutrality by 2060.
For Chinaas the world’s second-largest economy and largest importer and consumer of energy, energy security is key, said Mr.Sheng. “A secure energy transition is a trend with fairly high certainty,” he said. “Ping An makes full use of its long-term capital advantage of insurance,” said Mr. Sheng. “In line with the long cycle of green projects, it gives new impetus to low-carbon development while obtaining regular income.”
“Ping An leveraged its integrated financing strength and also increased investment in green industries in terms of investment mix,” said Mr.Sheng. From September 30, 2022Ping An’s green investments and financing totaled approximately 319.8 billion RMB. From the end of June 2022, Ping An Capital’s equity investment in carbon neutrality totals 25.6 billion RMBincluding 13.2 billion RMB related to clean energy. In November 2021, Ping An Capital was an investment consultant for Ping An Life’s RMB2 billion Investment in CGN Wind, which develops clean energy projects such as wind and photovoltaic. After investment, Ping An Life holds a 2.16% stake in the company.
Insurance is one of the major financial industry sectors facing climate change risks, Sheng said. Ping An’s pursuit of innovation in insurance products aims to make insurance an economic “shock absorber” and a social “stabilizer”. For example, Ping An combined Parametric Catastrophe Insurance and index insurance, which uses data on heavy rains and typhoons as parameters for insurance payouts. Once the conditions for compensation are met, the amount of compensation can be determined without on-site inspection, which helps to speed up post-disaster reconstruction and the resumption of business activities. In 2022, Ping An also piloted remote sensing index insurance of forest carbon sinks in six provinces: Hebei, Guangxi, Hunan, Anhui, Guangdong and Guizhou. It offered protection against the risks of carbon sinks with 34.28 million RMB for 340,000 mu (22,667 hectares) of forest land.
According to Ping An’s 2021 TCFD report, less than 2% of the estimate 7,920 billion RMB Ping An’s assets in investment and banking services were linked to the eight major high-carbon sectors, or “brown” sectors. While supporting the transition of traditional coal-fired and carbon-intensive customers, Ping An also helped to raise their awareness of emission control and consumption reduction, and offered technology to monitor emission data and better navigate the path of transition. Ping An will continue to improve the accuracy and precision of climate risk assessment, while fulfilling its corporate social responsibility as a financial institution. The Company will also dynamically adjust the control of carbon-intensive industries and support for green industries according to relevant national policies and market conditions. It will promote quality industrial and social transformation through its professional financial products and services to enable sustainable developmentis lying.
A Bout Ping a group
Ping An Insurance Company (Group) of China, Ltd. (“Ping An”) strives to become a global leader in retail financial services. With nearly 228 million retail customers, Ping An is one of the largest financial services companies in the world. Ping An advances intelligent digital transformation and uses technologies to improve the quality and efficiency of its financial operations and improve risk management. The company believes that “expertise creates value” and “expertise makes life simple”. Ping An develops the “integrated finance + health care” service system and builds the “finance + elder care” and “finance + health care” industrial ecosystems to provide professional services of “financial consulting, family doctor and elderly care concierge. As China The premier equity insurance company, Ping An is committed to the highest standards of corporate reporting and corporate governance. The Group is listed on the stock exchange in hong kong and Shanghai. Ping An ranked 17th in the Forbes Global 2000 list in 2022 and 25th in the Fortune Global 500 list in 2022.
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