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ping an leads in esg risk showcasing sustainability in chinas insurance market 56

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Ping An Leads in ESG Risk, Showcasing Sustainability in China's Insurance Market

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Michael Chen

April 9, 2024 - 09:23 am

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Ping An Tops Mainland China's Insurance Sector with Stellar ESG Risk Management

HONG KONG and SHANGHAI, April 9, 2024 /PRNewswire/ -- The prestigious Ping An Insurance (Group) Company of China, Ltd., often simply referred to as Ping An, continues to demonstrate exceptional proficiency in Environmental, Social, and Governance (ESG) risk management by securing a "Low Risk" ESG Risk Rating from the esteemed ESG research firm Sustainalytics for the second time. This notable achievement positions Ping An at the forefront of Mainland China's insurance sector, reflecting their commitment to sustainability and responsible corporate behavior, marked by a remarkable risk rating score of 17.

Sustainalytics, a global leader in ESG research, meticulously evaluated six vital ESG issues that significantly influence Ping An's operational performance. These include areas such as corporate governance, data security and privacy, business ethics, human capital, product governance, and financial ESG integration. Ping An's proficient risk management strategies across these domains earned it a comprehensive score of 17, reaffirming its status as a "Low Risk" entity, with product governance and financial ESG integration being recognized as areas with negligible risks.

According to the insightful analysis from Sustainalytics, "Ping An's meticulous management of material ESG issues is robust. The company's commitment to data protection is highlighted by its attainment of the ISO 27001 certification — a globally recognized standard for information security management. Moreover, the vigilant coordination of data security efforts by its technology development committee has further strengthened its privacy management practices." The report acknowledges Ping An's thorough approach to ethics in business practices, where responsibility is placed on the audit and risk management committee within the Board of Directors, indicating a strong parallelism between corporate governance and ethical integrity.

Recognizing the demographic challenge of an aging population in China and the rising emphasis on health management, Ping An persists in centering its operations around the evolving needs of its customers. The company has unceasingly refined its pioneering "integrated finance + healthcare and elderlycare" strategy, crafting an innovative "managed care model" tailored to the Chinese market. This model extends beyond traditional insurance coverage; it marries top-tier healthcare and elderlycare services with the astute use of premium resources, all while excelling in cost-effectiveness and underpinned by proprietary business models. By the close of 2023, Ping An's operating profits attributable to shareholders of the parent company soared to RMB 117,989 million. Demonstrating the synergy of the company's ecosystems, nearly 64% of Ping An's 232 million retail customers engaged with its healthcare and elderlycare services, of which over 73% were beneficiaries tied to the newfound business value generated by Ping An Life.

In the sphere of corporate governance, Ping An's ambitions to set the standard and provide shareholder value are unwavering. In 2023, the institution distributed a year-end cash dividend of RMB 2.43 per share, marking a modest yet positive year-on-year growth of 0.4%, and an unbroken trend of dividend increases spread across 12 consecutive years. When convening its Board of Directors, Ping An emphasizes diversity across many dimensions, encompassing gender, age, culture, and professional skill sets. By late 2023, women accounted for 20% of its Board Directors, who collectively boast extensive expertise from a variety of sectors, including legal, financial, investment, actuarial, and technology sectors, both locally and internationally. Additionally, Ping An actively promotes sustainability-related training initiatives for board members, encapsulating digital transformation, information security, climate risk management, and sustainable finance.

Ping An's commitment to fortifying its information security management is unyielding. The company executed an impressive 59 security drills in collaboration with its affiliates throughout 2023, addressing nine different emergency scenarios such as ransomware, anti-DDoS attacks, and phishing emails. Additionally, drills for database backup and recovery were undertaken, shoring up the group's emergency response capabilities regarding information security. Moreover, the company offered a suite of over 50 information security training initiatives covering a wide array of topics, targeting all staff and relevant stakeholders.

A pillar of the company's success is its investment in talent development; Ping An rendered 375 diverse training courses available to all levels of employees. In 2023, each employee received, on average, 44.9 hours of training. To foster long-term commitment and service among key employees, Ping An has instituted long-term incentive and restraint mechanisms, launching both a Key Employee Share Purchase Plan and a Long-term Service Plan. As evidence of the effectiveness of such programs, over 103,232 employees participated, which is indicative of substantial internal satisfaction and alignment with the company's vision for sustained, healthy growth. This claim is further bolstered by the impressive overall satisfaction score of 87/100 from the 2023 employee satisfaction survey.

For investors and companies looking to navigate the complexities of ESG metrics, Sustainalytics presents an illuminating lens through its risk rating and assessment system, tailored specifically for various industries. This system offers an intricate analysis of a company's exposure to industry-specific material ESG risks and their subsequent risk management capabilities. Such insights are vitally important for understanding ESG-driven risks and opportunities within industries. The ESG risk ratings are stratified into five distinct levels — negligible, low, medium, high, and severe risks — with lower scores signifying a reduced risk profile.

About Ping An Group

Ping An Insurance (Group) Company of China, Ltd., with a ticker symbol of HKEx:2318/82318 and SSE:601318, aspires to ascend as a globally preeminent provider of integrated financial and healthcare services. Their customer base encompasses a staggering 232 million retail customers, making Ping An one of the largest financial services conglomerates in the world. The company fervently advances its technology-driven strategy, melding finance and healthcare, to offer professional consultation ranging from financial advice to personalized family doctor and elderlycare concierge services. Ping An spearheads intelligent digital transformations, capitalizing on innovative technologies to augment the quality and efficacy of its financial services while enhancing its prowess in risk management. The group boasts prominent positions on both Hong Kong and Shanghai stock exchanges. Concluding 2023, Ping An held an astonishing RMB 11,583,417 million in total assets, securing the 16th spot on the Forbes Global 2000 list and 33rd on the Fortune Global 500 list.

For those keen on delving deeper into Ping An's endeavors and milestones, the group extends an invitation to visit their official website and to join their network on LinkedIn. These platforms provide continuous updates and in-depth information on Ping An's comprehensive range of services and initiatives.

Explore Ping An's official presence at www.group.pingan.com and connect with them on LinkedIn.

The enterprising journey of Ping An reflects a broader commitment to corporate responsibility and ethical business conduct. Adherence to such principles is showcased not only in their financials and strategies but also in the recognition they receive. Ping An's repeated attainment of a "Low Risk" ESG rating by an authority like Sustainalytics underscores their proactive stance on managing risks and integrating ESG principles into the core of their operations. Other companies may look to Ping An as a benchmark in ESG risk management, a testament to their diligent approach in safeguarding the present and building a sustainable future.

Conclusion

Ping An stands as a visionary leader within Mainland China's insurance sector, demonstrating an unwavering dedication to sustainability, data protection, and the ethical conduct of business. By skillfully navigating the intersection of finance and healthcare, and investing in the long-term growth and satisfaction of its workforce, Ping An sets a commendable example. The group’s strategic initiatives and robust frameworks for ESG risk management have laid down a blueprint for success that simultaneously serves their clients, employees, and shareholders, and will likely influence industry standards for years to come.

Ping An Insurance (Group) Company of China, Ltd. continues its ascendancy not just within the realm of insurance but also as a paragon of corporate governance, with its sights set firmly on the future. In an era where sustainability is no longer a preference but a necessity, Ping An’s leadership in ESG serves as a beacon for the global corporate community, a reminder that aligning profit with purpose is not only possible but also profoundly rewarding.

SOURCE: Ping An Insurance (Group) Company of China, Ltd.