HONG KONG and SHANGHAI, Oct. 21, 2022 /PRNewswire/ — Ping An Insurance (Group) Company of China, Ltd. ( “Ping An” or the “Group”, HKEx:2318; SSE:601318) announced that subsidiary Ping An Bank (the “Bank”, SHE:000001) has released its 2021 Environmental Information Disclosure Report. This first report provides disclosures on environmental performance, governance structure, policies and systems, risk management, impacts on business activities and other dimensions.
In 2021, Ping An Group announced its green finance development goals, including an investment and credit target of RMB400 billion and a total green insurance premium target of RMB250 billion by 2025. Under the Group’s sustainability guidance, Ping An Bank has integrated green finance into its long-term strategy and strengthened support for green, low-carbon and circular economies. The Bank manages environmental, social, and governance risks, and has improved its ESG performance to support the green transition of the economy and society.
Boosting green finance business
Ping An Bank has prioritized support for 15 sub-industries in six sectors, including clean energy, environmental protection, transforming carbon-intensive industries, green transportation, green buildings, and green services. The Bank has created tailored credit policies, using the advantages of the Group’s integrated finance business model. As of December 31, 2021, the total balance of green finance business increased 199.6% year-on-year to RMB113.727 billion. That included soaring growth in the green credit balance of 204.6% year-on-year, to RMB69.135 billion. The percentage of green loans in the Bank’s credit balance rose from 0.84% at the beginning of the year to 2.23% at the end of the year. As of December 31, 2021, Ping An Bank granted a total amount of RMB41.607 billion green credits to infrastructure upgrading, RMB12.041 billion to clean energy, RMB9.533 billion to energy conservation and environmental protection, RMB4.582 billion to clean production and RMB1.373 billion to ecological environment initiatives.
Ping An Bank calculated the environmental benefits generated by green credit projects in accordance with China Banking and Insurance Regulatory Commission guidelines: annual savings of standard coal could reach 474,200 tonnes, annual emission reductions of carbon dioxide could reach 1,038,600 tonnes, and annual water savings could reach 140,833,00 tonnes.
By December 31, 2021, Ping An Bank’s credit balance of industries with high pollution and high emissions was RMB24.998 billion, or 0.82% of its total credit balance, down 0.1% from the end of last year. In addition, Ping An Bank is actively promoting the development of green bond issuance, underwriting, and investment. In 2021, the Bank underwrote green bonds totaling RMB5.2 billion. By the end of 2021, the balance of investment in carbon neutrality and green development-related industries reached RMB5.225 billion.
Improving governance structure and policies
The Bank has elevated green finance to a strategic level. The board of directors is directly responsible for planning green finance business, promoting economical, low-carbon environmental protection and sustainable development, and monitoring and evaluating the implementation of the Bank’s green credit development strategies. In 2021, the Bank established a Green Finance Business Department to lead the planning, promotion, and coordination of the Bank’s green finance activities, analyze potential market opportunities and risks, and promote the Bank’s innovative green finance and green industry services. To continuously improve relevant management norms, the Bank has adopted strict list-based management to control credit to industries with high energy consumption, high pollution and overcapacity. The Bank also issued implemented measures for corporate credit approval to fast-track eligible green credit projects to support green industries.
Ping An Bank said it will continue to lead in green financial services, develop innovative green financial products, and enhance support to the real economy, particularly to the green, low-carbon, and circular economies. The Bank will leverage its financial resources to contribute to China’s goals of peaking carbon emissions by 2030 and achieving carbon neutrality by 2060.
The report was prepared in accordance with the Guidelines for Financial Institutions Environmental Information Disclosure issued by the People’s Bank of China and the Regulations of Shenzhen Special Economic Zone on Green Finance. The report also refers to recommendations from the Task Force on Climate-related Financial Disclosures (TCFD).
Click here for the Ping An Bank 2021 Environmental Information Disclosure Report.
About Ping An Group
Ping An Insurance (Group) Company of China, Ltd. (“Ping An“) strives to become a world-leading retail financial services group. With over 225 million retail customers and nearly 668 million internet users, Ping An is one of the largest financial services companies in the world. Ping An advances intelligent digital transformation, and employs technologies to improve the quality and efficiency of its financial businesses and enhance risk management. The Company believes “Expertise Creates Value” and “Expertise makes life simple”. Ping An develops the “integrated finance + healthcare” service system and builds the “finance + elderlycare” and “finance + healthcare” industry ecosystems to provide professional “financial advisory, family doctor, and elderlycare concierge” services. As China’s first joint stock insurance company, Ping An is committed to upholding the highest standards of corporate reporting and corporate governance. The Group is listed on the stock exchanges in Hong Kong and Shanghai. Ping An ranked 17th in the Forbes Global 2000 list in 2022 and ranked 25th in the Fortune Global 500 list in 2022.
For more information, please visit www.group.pingan.com and follow us on LinkedIn – PING AN.