HONG KONG and SHANGHAI, October 21, 2022 /PRNewswire/ — Ping An Insurance Company (Group) of Chinaltd. (“Ping Anor the “Group”, HKEx:2318; SSE:601318) announced that subsidiary Ping An Bank (the “Bank”, SHE:000001) has released its 2021 Environmental Disclosure Report. This first report provides information 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 400 billion RMB and a total green insurance premium target of 250 billion RMB by 2025. As part of the Group’s sustainability guidelines, Ping An Bank has integrated green finance into its long-term strategy and strengthened its 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 activities
Ping An Bank has prioritized supporting 15 sub-industries in six sectors, including clean energy, environmental protection, transformation of carbon-intensive industries, green transportation, green buildings and green services. The Bank has created tailor-made credit policies, using the advantages of the Group’s integrated financing business model. From December 31, 2021the total balance of green finance activities increased by 199.6% year-on-year to reach 113.727 billion RMB. This included a meteoric growth in the green credit balance of 204.6% year-on-year, to 69.135 billion RMB. The share of green loans in the Bank’s credit balance rose from 0.84% at the start of the year to 2.23% at the end of the year. From December 31, 2021Ping An Bank granted a total amount of 41.607 billion RMB green credits for the modernization of infrastructures, 12.041 billion RMB clean energy, 9.533 billion RMB energy conservation and environmental protection, 4.582 billion RMB to clean production and 1.373 billion RMB green environmental initiatives.
Ping An Bank calculated the environmental benefits generated by green credit projects in accordance with China Banking and Insurance Regulatory Commission guidelines: annual standard coal savings could reach 474,200 tons, annual carbon dioxide emission reductions of carbon could reach 1,038,600 tons and annual water savings could reach 140,833.00 tons.
By December 31, 2021the credit balance of high pollution and high emission industries of Ping An Bank 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 actively promotes the development of green bond issuance, underwriting and investment. In 2021, the Bank subscribed to green bonds for 5.2 billion RMB. At the end of 2021, the balance of investments in industries related to carbon neutrality and green development reached 5.225 billion RMB.
Improve 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 activities, promoting economic and 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 created 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 services in finance. green finance and green industry. In order to continuously improve relevant management standards, the Bank has adopted strict list-based management to control credit to industries with high energy consumption, high pollution and overcapacity. The Bank also published measures implemented for business credit approval to accelerate eligible green credit projects to support green industries.
Ping An Bank said it will continue to be the leader in green financial services, develop innovative green financial products and strengthen support for the real economy, especially green, low-carbon and circular economies. . The Bank will mobilize its financial resources to contribute to China targets to peak carbon emissions by 2030 and achieve carbon neutrality by 2060.
The report has been prepared in accordance with the Guidelines for the Disclosure of Environmental Information by Financial Institutions issued by the Banque Populaire de China and the Shenzhen Special Economic Zone Regulation on Green Finance. The report also refers to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
Click on here for Ping An Bank’s 2021 Environmental Information Disclosure Report.
SOURCE Ping An Insurance (Group) Company of China, Ltd.