Embracing New Climate, Focusing on Future …...Corporate Profile Ping An Insurance (Group) Company of China, Ltd. ("Ping An", the "Company" or the "Group") was established in Shekou,

Embracing New Climate, Focusing on Future Opportunities

Ping An Insurance (Group) Company of China

2018 Climate Change Report

Ping An Insurance (Group) Company of China Ping An Insurance (Group)Company of China02 0101

CONTENTS Preface

About this Report

Corporate Profile

Governance

Risk Management

Metrics and Targets

Prospects

Strategy

04 Scope of the Report

04 Reporting Principles

04 Data of the Report

08 ESG and Climate Change Governance Structure

10 Group Risk Management System

12 Overall Strategy

14 Sustainable Insurance Strategy

18 Responsible Investment Strategy

22 Climate-Related Risks Identification

28 Insurance and Investment Screening

29 Promote Progress on Sustainable Development

30 Carbon Emissions Reduction Potential

32 Greenhouse Gas Emission

33 Targets

Ping An Insurance (Group)Company of China


Climate change has varied impacts on different organizations. TCFD classified climate risks into transition risks and physical risks. Physical risks result from climate change can be event-driven (such as more frequent extreme weather events) or longer-term shifts (such as prolonged drought) in climate patterns. Physical risks may affect organizations’ assets, operations, supply chain, transport demand, and employee safety. While transitioning to a lower-carbon economy may entail extensive policy, legal, technology, and market changes to address mitigation and adaptation requirements related to climate change. Depending on the nature, speed, and focus of these changes, transition risks may pose varying levels of financial and reputational risk to organizations.

With regards to insurance industry, the intensified climate change increases the frequency of extreme weather events. The impact of natural disasters on product pricing, reimbursement, and underwriting strategies may also increase the compensation amount to be paid by Ping An. Thus, Ping An has developed Sustainable Insurance System to guide on the sustainable development of insurance product design. Ping An Sustainable Insurance System has embedded Environmental, Social and Governance (ESG) elements into insurance business, considering climate and social impacts to insurance pricing and risk management of underwritten companies, while creating sustainable insurance products. As an investment institution, Ping An must be cautious of investing in industries and regions that are vulnerable to climate change. To provide more effective guidance on future investment strategy and direction, Ping An has formulated Responsible Investment Strategy in accordance with the Principles for Responsible Investment (PRI), to incorporate ESG issues into investment analysis and decision-making processes. Ping An has integrated climate related factors into financial business through internal policies, regulations and so on, and continued to manage climate change impacts on business operations.

Based on the above considerations, from the Board of Directors to the management, Ping An highly recognizes impacts brought by climate change. Ping An implements a sustainability transformation strategy to avoid adverse influences caused by climate change and to achieve long-term stable operation and value creation. In August 2019, Ping An becomes the first asset owner signatory of PRI in China. By implementing responsible investment mechanism, Ping An will create a demonstration of responsible investment for financial

PrefaceClimate change is one of the most significant global issues

in recent years. On 22 April 2016, the Paris Agreement was

deposited in New York and opened for signature. The universal

agreement aims to keep a global temperature rise this century

well below 2 and to limit the temperature increase even further

to 1.5℃ above pre-industrial level. On 8 October 2018, the

Intergovernmental Panel on Climate Change (IPCC) issued the

IPCC Special Report on Global Warming of 1.5℃ (the“Report”).

The Report stated that limiting warming to 1.5℃ compared

to 2℃ would bring greater advantage to human societies and

natural ecosystem and to uphold sustainability and fairness of the

society. Climate change has far-reaching effects on the economy

and society, especially when the market does not have a proper

way to tackle climate risks. Potential crises such as damage to

infrastructure, decrease in crop production, rise in commodity

prices and loss of bank loan might affect financial stability.

To assist financial institutions in assessing and pricing the

climate-related risks and opportunities in assets, G20 Financial

Stability Board (FSB) has established Task Force on Climate-

related Financial Disclosures (TCFD) to provide recommendations

for developing voluntary, consistent climate-related financial

disclosures. In June 2017, TCFD released Final Report of its

recommendations. Since then, financial and non-financial

institutions and organizations have started to assess and price

for enhancing climate-related financial disclosure. 1 The number of TCFD Supporters has grown to 867 organizations as of

September 2019 1.

02

1 Data retrieved from TCFD’s disclosure on its website on 25 October 2019.

and insurance groups in China. The Group continues to deepen and improve its sustainable development, and transform into a leading enterprise for sustainable development in China and the world. In addition, as a global leading comprehensive financial institution, Ping An actively faces climate risks and opportunities in the insurance and investment operations. Ping An has echoed with the FSB to join the China-UK TCFD Pilot Group and released its first TCFD report.

This Report describes the governance and strategies adopted by Ping An to cope with climate change with reference to TCFD recommendations. It analyzed the material climate-related risks and opportunities in business operations and set up climate-related targets. At the same time, Ping An expects this Report would improve the understanding of investors, lenders, underwriters and other stakeholders on the climate-related risks. Ping An represents different roles in financial sectors in this Report. As a leading insurance company in China, it holds insurance policies of RMB818 billion in total. As an asset owner, it holds asset of RMB7,143 billion in total. As an asset manager, it manages assets of RMB2,795 billion in total.

Although the number of TCFD Supporters increases every year, organizations sti l l encounter many challenges and difficulties when analyzing the risks and opportunities of climate change. According to the status report released by TCFD in June 2019, only around a quarter of companies globally disclosed information aligning with more than five recommended disclosures. To date, among the Global Systemically Important Insurers (GSIIs), only AXA and AVIVA have released standalone TCFD reports. In China, ICBC took the lead in 2017 in the China Green Finance Committee and co-authored Environmental Risk Analysis by Financial Institutions, the world's first case study book on environmental risk analysis theory, methods and models. In 2018, UK–China Climate and Environmental Information Disclosure Pilot Action Plan was published with 10 China and UK financial institutions joined the Pilot Action Plan on voluntary basis. Ping An attended the fifth meeting of the pilot of climate and environmental information disclosure and has referred to peer’s best practice and experience. Ping An thus joined the China-UK TCFD Pilot in 2019. Ping An understands that there is for improvement for the Report and hopes the stakeholders can offer constructive advice on the improvement of our climate change-related governance and management, and contribute to building a sustainable investment environment.



About this Report

Scope of the ReportReporting scope: The Report is mainly about Ping An Insurance (Group) Company of China, and covers its subsidiaries.

Reporting period: Data analysis covering the period from January 1, 2018 to December 31, 2018, events happened during the preparation of the Report are included in part of the Report.

Reporting cycle: The Report is released annually.

Reporting PrinciplesThe Report is prepared in accordance with the Recommendations of TCFD established by FSB. The Recommendation of TCFD covers four thematic areas, including governance, strategy, risk management, and metrics and targets.

Data of the ReportData of the report are extracted from the internal systems of the Company or manual collection. Unless otherwise specified, the currency in the Report is RMB.

04 05Ping An Insurance (Group) Company of China Ping An Insurance (Group)Company of China


Corporate ProfilePing An Insurance (Group) Company of China, Ltd. ("Ping An", the "Company" or the "Group") was established in Shekou, Shenzhen, in 1988. The Group was the first insurance company adopting a shareholding structure in China. With the support of different levels of the government and regulatory authorities, customers and society, Ping An has developed into one of the three major financial groups in China.

Ping An endeavors to become a world-leading technology-powered retail financial services group, focusing on "pan financial assets" and "pan health care". Ping An is committed to bringing positive impacts to the society through finance and technology in the five ecosystems, i.e. financial services, health care, auto services, real estate services, and smart city services, and creating value for shareholders, customers, employees, community, the environment and business partners, to promote a shared sustainable development along with its stakeholders.

The subsidiaries of Ping An include Ping An Life, Ping An Property & Casualty, Ping An Annuity, Ping An Health, Ping An Bank, Ping An Trust, Ping An Securities, Ping An Fund and so on. Covering the entire financial services spectrum, Ping An has become one of the few financial groups in China that can provide customers with a full range of financial products and services, including insurance, banking and investment. In addition, Ping An also actively explores fintech business via subsidiaries including Lufax, Ping An Good Doctor, OneConnect, and E-wallet, and has seen significant growth in terms of size and user base.

The Group principally engages in financial business. Since the climate risks and opportunities encountered by the financial business are more diversified than that of the non-financial business, this Report focuses on the description and analysis of the climate-related risk management of the financial business. According to the TCFD recommendations, this Report comprehensively explained the analysis, management and control of the climate change related risk and opportunities encountered by Ping An Group in four areas, including governance, strategy, risk management, and metrics and targets, which help to promote the transformation of the sustainability development.



Ping An deeply understands the impacts of climate change to the company’s businesses. Therefore, it adopts ESG-governance structure integration as an approach to standardize management. The Board of Directors is fully accountable to the company’s ESG management and climate change issues. The Group Executive Committee discusses and approves the company’s overall ESG management targets and strategies. It is also ultimately responsible for approving the interim and annual sustainability results and reports. In terms of climate change-related issues, the Board focuses on the processes of identifying, assessing and managing important climate issues. It also regularly evaluates the progress against the related targets with the periodic approval process.

Under the Group Executive Committee, Ping An has established Investor Relations (IR) and ESG Committee. The IR and ESG Committee is chaired by the Senior Vice President & Chief Financial Officer of the Group. The Company Secretary of the Group serves as the executive secretary and management team as other committee members. The Committee convenes regular meetings to develop corresponding strategies for risks and opportunities on economic, environmental and social issues, and improve Ping An’s ESG governance and performance. It ensures that the company’s directors and senior management are timely informed of the implementation and progress of ESG risk management and internal control. It is also fully responsible for the company’s ESG affairs. The Committee coordinates with the Risk Management Executive Committee and Investment Management Committee to provide professional opinions. This raises ESG management to the company’s strategy level and facilitating full consideration of the impacts of ESG factors when making decision for investment and business development. The Committee also leverages Ping An’s products and investment to address various

social and environmental problems and conflicts, realizing responsible product development and investment.

The ESG Office under the IR and ESG Committee cons ists of the ESG team f rom the Branding Department of the Group, re levant funct ional departments, as well as ESG-related departments from the member companies. Ping An Group’s ESG team is responsible for ESG strategy implementation, internal communications, planning and execution of related projects and performance appraisal. The ESG-related departments in the Group and member companies are involved in the planning and execution of daily ESG work. To cater to the ESG processes and risk management, the Group releases guidance documents for its member companies to holistically review and refine their business operations. The Group’s ESG Office regularly analyzes impacts of various ESG issues to the company, and reports results of ESG risk analyses and status of ESG work to the IR and ESG Committee.

Specifically for climate change governance, Ping An’s ESG Office is responsible for coordinating with the Group Risk Management Department, Asset Management Center, Planning and Actuarial Center and four relevant departments in the insurance business (e.g. Risk Management Department, Market Research Department, Insurance Actuarial Department, Reinsurance Department etc.) for the identification, assessment, risk management and performance evaluation of climate change issues. Please refer to Section 5.2 Sustainable Insurance Strategy for how climate change-related risks are managed in insurance products. For information about how Ping An considers ESG and climate change elements in responsible investment, please refer to Section 5.3 Responsible Investment Strategy.

Ping An has established the ESG and climate change governance structure. It clearly defines the Board’s and senior management’s responsibilities in monitoring and managing the risks and opportunities associated with climate change. It also holds the Board accountable to the Group’s risk management. The Audit and Risk Management Committee under the Board submits comments and suggestions to the Board of Directors on risk management regularly. By doing so, it minimizes the negative impacts caused by climate change-related risks, such as market adjustment, delay or potential instability, etc.

Governance

4.1 ESG and Climate Change Governance StructurePing An’s ESG management runs from the Board to all business units. The internal sustainable development management is led by the Board of Directors, driven by the committees, Group ESG Office and other functional departments. With matrix management, the member companies are the primary force for ESG execution. Through strategy formulation, risk management, project planning, information disclosure and performance appraisal, the top-down governance structure can ensure the effectiveness of Ping An’s ESG management.

Board of Directors

Group Executive Committee

Group ESG Office

Group Functional Units

Insurance

Investment

Banking

Technology

Finance

Procurement

Planning

IT

AssetManagement

Labor

InternalControl

Union Others

Ping An Group Execution Matrix

Mem

ber C

om

panies

ESG Taskforce(CSR/IR/PR/Group Functional Representatives)

RiskManagement

ExecutiveCommittee

InvestorRelationsand ESG

Committee

InvestmentManagementCommittee

TechnologyDevelopmentCommittee

08 09

Authorization

L1

L2

L3

L4

Ping An Insurance (Group) Company of China Ping An Insurance (Group)Company of China


4.2 Group Risk Management System

The Board is the highest decision-making body for the company's risk management and takes the responsibility for the effectiveness of the overall management. The Audit and Risk Management Committee under the Board has thorough understanding of each significant risk and the corresponding management status. It also monitors the implementation effectiveness of the risk management system and reviews material matter on risk management to provide comments and recommendations to the Board.

Ping An has always regarded risk management as an integral part of our operational management and business activities. We took steady steps to establish a risk management system that aligns with the Group’s strategies and the characteristics of the businesses. Building on the ground work, Ping An continuously optimizes the organizational structure of risk management, standardizes risk management procedures, adopts the integrated qualitative and quantitative risk management method to identify, evaluate and mitigate risks. On the basis that the risks are controllable, the company facilitates the sustainable and healthy growth of each type of business. The growth maintains the Group on its path to the long-term target as a world-leading personal financial service provider. The risk appetite system is one of the core contents of Ping An’s overall strategy and comprehensive risk management. With reference to the overall strategic layout of the company, and in consideration of the development demands of each subsidiary, Ping An has gradually built a risk appetite system that matches the business strategies. It connects risk appetite with management decisions and business development to promote the healthy operation and development of the Group and each subsidiary.

In 2018, Ping An created a common r isk management platform to which members companies needed to set up comprehensive risk management monitoring indicators according to the Group’s risk management requirements. Till now, major member companies have been assigned to complete the development of the risk management indicator system and start conducting quarterly risk monitoring and tracking. Ping An Life and Ping An Property & Casualty have initiated research and developed a management system for climate change-related risks. Under the leadership of Risk Management Committee and Chief Risk Officer, Ping An evaluates the member companies’ abilities to conduct risk management assessments. The results form part of the internal control assessment criteria for compliance, to continually enhance the risk management capability in every aspect of the member companies.

In terms of investment risk management, under the supervision and guidance of the IR and ESG Committee, the Group’s ESG Office and Asset Management Center, together with the investment teams in major businesses have established a responsible investment panel. It provides support and guidance on strategy formulation and investment application for different investment businesses across the Group. The Group has gradually integrated ESG risks with its investment risk management system. Through subdividing climate change and social risks into thematic risk categories, Ping An subsequently set the corresponding risk

criteria and conduct risk determination by taking the Group’s asset portfolio (i.e. industry, region) into consideration. In addition, the ESG Office organizes seminars with subsidiaries on a regular basis to help the companies understand the basic elements of ESG and share industry best practices. They bring about continuous advancement and effective guidance for implementing ESG strategies and project planning.

With respect to insurance risk management, the ESG Office coordinates with the Group Planning and Actuarial Center and four relevant departments in the insurance business (e.g. Risk Management Department, Market Research Department, Insurance Actuarial Department, R e i n s u ra n c e D e p a r t m e n t e t c . ) f o r t h e identification, assessment, risk management and performance evaluation of climate change issues. The Group Planning Center’s Insurance Risk Management Office would then refine the details according to the circumstances of each subsidiary. It would develop full-cycle management measures from product design to underwriting.

As for its own operation, one of the major missions of Ping An’s ESG management is the continual expansion of low-carbon businesses and operations. The ESG Office drafts the policies which are reviewed by the IR and ESG Committee. Finance, Corporate Planning and other relevant functional departments as well as all member companies would carry out the work. It adopts matrix management to supervise and appraise low-carbon businesses and operations.

Group Risk Pool

Business Line

Business Unit

Application

Risk Management Center of the Group

The Group Asset Management Center

Investment

ESG risk and opportunity matrix for investment

Integration Products Reports

Insurance

ESG risk map for insurance products

Actuarial Office of Planning Center of

the Group

ESG Office of the Group

10 Ping An Insurance (Group) Company of China


Sustainable Insurance Strategy Responsible Investment Strategy

Ping An endeavors to embed ESG concepts into insurance business. From the perspectives of insurance product pricing and underwriting risk management, Ping An fully considers climate change, social and demographic factors in the development and design of insurance products. ESG risk assessments are conducted to achieve effective risk pricing. Besides, Ping An fulfills environmental and social responsibilities through the creation of sustainable insurance product system. Ping An seizes new profitable niche and aligns social and economic interests. For example, Ping An's continuous development of green and inclusive insurance products have promoted green and inclusive development in the society.

Ping An is committed to implementing the Principles for Sustainable Insurance (PSI) of the United Nation’s Environment Program Finance Initiative (UNEP FI) according to the following aspects:

In the investment management process, Ping An always adheres to the principle of sustainability. Ping An has formed risk appetite for investment from multiple dimensions, such as financial, actuarial, risk and return. Three-dimensional quantitative indicators were established. Together with investment judgment, Ping An determines strategic asset allocation based on the quantitative simulation technique and investment strategy.

In response to ESG-related risks, the Group has gradually integrated them into the Group's investment risk management system. Ping An subdivides climate change and social risk into thematic risk categories and sets clear risk criteria and conducts risk determination with the Group’s asset allocation (e.g. industry, region).

The responsible investment assessment criteria are as follows:

Embed ESG factors into Ping An’s decision-making model in insurance business

Work together with clients and business partners to raise awareness of environmental, social and governance issues, manage risks and develop solutions

Collaborate with governments, regulatory authorities and other key stakeholders to promote action across society regarding ESG issues

Demonstrate accountability and transparency by regularly disclosing the progress on the Group’s strategy implementation

Environmental standards: environmental protection, low carbon and reuse, including but not limited to improving energy efficiency, reducing emissions,using cleaning and renewable energy, environmental protection and rehabilitation, circular economy and other projects; mitigation to property loss caused by climate disasters and changes in climatic conditions.

Socia l and inc lus ive f inance cr i ter ia : investing in social infrastructure construction; supporting poverty alleviation projects in rural areas and core agricultural enterprises; responding to national and regulatory calls on supporting the development of small and micro businesses through financial means and providing inclusive loans to individual industrial and commercial businesses; supporting investment projects for elderly medical care, education and culture; and investments for rural area renovation.

Under the guidance of Ping An’s ESG and climate change management framework, the IR and ESG Committee has reviewed each ESG issue. It subsequently confirmed insurance and investment as the main targets in the current planning of sustainable development. In addition, the Committee reported strategies on sustainable insurance and responsible investment to the Board. They were approved by the Board and, at this stage, form the two major parts in Ping An’s overall sustainability strategy. In the future, the IR and ESG Committee will continue to explore further growth in climate change-related businesses according to business plan and development.

Strategy

5.1 Overall StrategyPing An is committed to realizing business growth by green and sustainable means. Through developing sustainable business strategies, Ping An lowers different types of risks and seizes the low-carbon opportunities to achieve win-win cooperation with stakeholders. Ping An’s insurance, banking, investment and other member companies have thoroughly implemented sustainable insurance and responsible investment strategies. They have madeclimate change and environmental performance as one of the core considerations in investment decision-making. Ping An makes prudent investments in highly polluting and energy-intensive industries. It does not involve in loans, insurance guarantees and other businesses relating to high emissions, high pollution, and destruction to ecological reserves. On the other hand, Ping An shows its proactive support for new energy and environmentally-friendly industries, fueling the prosperous growth in clean and green industries.



5.2 Sustainable Insurance Strategy

Ping An actively fulfills the UNEP-FI PSI and integrate that with the requirements in TCFD to integrate insurance-related ESG issues into product decision-making process. A sustainable insurance product system has been developed, and the product requirements include:

Ping An Environmental Pollution Liability Insurance

Environmental pollution and deterioration

Ping An Employer Liability Insurance

Occupational health and safety

Ping An Cybersecurity Corporate Property Insurance

Technological development and information security, customer data protection

Ping An Directors, Supervisors and Senior Manager Liability Insurance

Corporate Governance

Ping An Product Liability Insurance

Product safety and product quality

How Ping An assesses and manages the ESG issues of insurance products:

Environmental: Supporting environmental protection, low carbon and reuse, including but not limited to energy efficiency improvement, emissions reduction, clean and renewable energy implementation, environmental protection and rehabilitation, circular economy, property damage mitigation caused by natural disasters and climatic conditions.

Social: Providing personal and property insurance products covering serious illness, the underprivileged, frequent illness and health threat caused by living environment and lifestyle (e.g. unhealthy diet, staying up late, air pollution, etc.) and social instability caused by extreme anti-society phenomena.

Inclusive: Supporting the development of small and micro enterprises with insurance business and provide coverage for agricultural, forestry, animal raising, fishing, and other ancillary production industries, aimed towards poverty alleviation and covering socially disadvantaged communities.

Before insurance application, the company needs to fill out the underwriting questionnaire for understanding the basic risk level. Risk investigation wil l be conducted, and Ping An wil l require company to rectify the situation in time to reduce the risk of occurrence.

Named insured is, in principle, required for high-risk industries, and it is stipulated in the policy that workers need to implement safety protection measures.

The product terms exclude legal and controversial risks. Before client selection, database and security tools are introduced to reject clients with significant risks. During the underwriting period, clients will be given relevant dynamic risk consultation and safety assessment, and they will be required to mitigate any identified problems.

At the time of underwriting, a quality assurance certificate issued by a national or provincial quality inspection agency shall be provided.

Ping An monitors by means of underwriting with focus on the client’s own corporate governance, financial status and the integrity of ESG information disclosure, and further reference to the comments of third-party auditors on the effectiveness of internal control.

5.2.1 Sustainable Insurance Product System

Ping An launches insurance products corresponding to the opportunities from environmental changes, while enriching the types of insurance and opening up new profitable niche. ESG-related risks will encourage the development of new insurance products. For example, Ping An has launched catastrophe insurance, environmental liability insurance, agricultural catastrophe insurance due to increasing probability of happening of extreme weather to ensure customers’ property security. Urbanization in China brings about change in demographic structure, aging population, rising frequency of diseases and increasing demand for nutrition. Ping An has responded by introducing themed insurance such as elderly comprehensive insurance, serious illness insurance, obesity insurance, and high incidence of diseases insurance, etc. In addition, Ping An has purposefully developed inclusive insurance products. For example, small and micro enterprises credit guarantee insurance is to provide them with letter of credit. It thereby helps the enterprises obtain unsecured small and short-term loans from counterparty banks to solve their urgent financial needs. Besides, agricultural insurance, insurance for rural areas, insurance for farmers and insurance for the disadvantaged groups also prevent the underprivileged groups from falling into financial difficulties due to their own diseases, natural disasters and accidental death.

Currently, Ping An has developed a unique sustainable insurance product system that promotes Ping An's own business growth and fulfills its environmental and social responsibilities while serving its customers. From client’s perspective, climate insurance provides guarantee to property security in case of natural disasters. Social insurance addresses the high incidence of diseases and health threats caused by changes in the living environment and lifestyles. Inclusive insurance offers protection for the disadvantaged groups. On one hand, the sustainable insurance product system not only effectively helps Ping An avoid ESG risks. On the other hand, it is the key for Ping An to seize new profitable niche from ESG risks.

For the six months ended on June 30, 2019, Ping An’s premium income for climate insurance products2 was RMB40 million, and the insurance amount was RMB6,159 million.

Original insurance premium income

Insurance amount

Insurance Type Relevant ESG Issues ESG Risk Management Measures

15

2 Climate insurance products include environmental liability insurance, catastrophe insurance, and so on.

Ping An Insurance (Group)Company of China

40,000,000￥

6,159,000,000￥


To control climate risks in insurance products, Ping An has developed insurance risk management mechanism and a scientific and consistent insurance risk management system within the Group. Together with the corresponding mechanisms and procedures, they help manage insurance risks. Each member company needs to establish insurance risk management system and procedure according to the standard. It covers different aspects of an insurance product, including product development, underwriting, claims, product management, premium reserve assessment, and reinsurance management etc. The companies also need to implement specific ESG risk management measures.

At the same time, Ping An carries out research on climate change risks, and has established a risk management system. For example, leveraging the competitive edge in data technology, it comprehensively manages business risks associated with climate change issues by using the Digital Risk System (DRS) to assess risk levels of nine natural disasters.

In order to seize the opportunities of climate change, Ping An has launched different climate-related insurance products to alleviate the negative impacts of climate change on clients. Ping An Property & Casualty launched climate-related products for different asset classes in consideration of client’s needs, such as:

Ping An strives to reduce the risks in the underwriting process while launching climate-related insurance products. By taking advantage of the DRS, the risks of climate change on client’s assets and insurance claims are considered when pricing insurance products. During the policy period, the emergency risk team will externally inform clients by sending a disaster warning in advance of the typhoon, heavy rain and other climate disasters to help protect client’s assets. The team will also internally carry out early warning notifications and initiate disaster warnings and deployment work. With a series of risk management procedure, Ping An can effectively reduce the risks caused by climate change to the company.

• Motor vehicle comprehensive commercial insurance• pecial vehicle comprehensive commercial insurance• Ping An shipping pollution responsibility insurance• Ping An Property Insurance Sichuan Province Hongya County local fiscal tea tree low temperature index insurance • Ping An Property & Casualty Sichuan Province commercial rapeseed arid weather index insurance• Ping An Property & Casualty Heilongjiang Province rice planting disaster insurance• Ping An Property & Casualty Heilongjiang Province wheat planting disaster insurance• Ping An Property & Casualty Heilongjiang Province corn planting disaster insurance• Ping An Property & Casualty Inner Mongolia Autonomous Region central financial agricultural disaster insurance• Ping An Property & Casualty Shangdong Province Rushan City local finance oyster farming wind index insurance (Type A)

Apart from mitigating the climate change risks faced by client assets, Ping An has formulated a Statement on Low Carbon Business Policy. It will gradually tighten the environmental performance underwriting requirements of the coal-fired industries. Ping An will assess environmental impact of the project subject to insurance policy and the requirements specified in Ping An Sustainable Insurance Policy, including project location, technology, project management, pollution control and environmental protection related measures. Moreover, Ping An has established a set of underwriting restrictions for the coal-fired industries, and actively exclude coal mining and coal-fired power projects with low production efficiency.

5.2.2 Insurance Risk Management

Each member company establishes effective product development management system. It reviews the climate risks of new insurance product to manage the risks in insurance through reasonable pricing.

Member companies assess the insurance risks and propose risk management measures. For new and material insurance risks, member companies obtain assessment recommendation from relevant departments.

Reinsurance is an important means for a company’s risk management. I t p lays an i r rep laceab le ro le in transferring risks, stabilizing operations, enhancing technology a n d ex p a n d i n g u n d e r w r i t i n g capacity. It also helps company rea l ize stab le operat ions and sustainable development.

Each member company establishes r e i n s u r a n c e m a n a g e m e n t system, and reasonably arranges catastrophe and other reinsurance. It ensures the function of reinsurance runs smoothly, and transfers climate risks through reinsurance contract.

Each member company establishes e f f e c t i ve u n d e r w r i t i n g a n d compensation system. It helps the insured understand his or her risks and perform reasonable management. In the customer service process, it reduces the loss induced by climate risks (e.g. climate disaster) through measures such as dispatching risk alert, disaster warning.

Member company strengthens direct and indirect climate risk-related insurance products to reflect insurance risks in a timely manner. This includes monitoring, analysis and regular experience review.

For innovative products without experience data, the companies proactively pay attention to the experience trend to avoid excessive r isk exposure. They exchange with industry-specific reinsurance company to gather more data for analysis.

Product Development

Reinsurance

Underwriting

Product Management

Managing climate change risks in insurance products by DRS

1716 Ping An Insurance (Group) Company of China Ping An Insurance (Group)Company of China


5.3 Responsible Investment StrategyAs a responsible investment company, Ping An hopes to promote positive environmental and social values with every investment decision. Ping An believes that responsible investment extends beyond mere green and charitable acts. It also means effectively evading risks for stable and long-term returns, and ultimately realizing economic, social and environmental benefits. Thus, in addition to the consideration of financial returns, Ping An actively incorporates ESG factors into the investment decision-making process.

Ping An is committed to considering ESG and climate change elements in investment to yield long-term returns. Therefore, Ping An has formulated Ping An Group Responsible Investment Policy to incorporate ESG and climate change risks into investment analysis process through various investment strategies. The table below summarizes the responsible investment strategies adopted for different types of assets.

5.3.1 Integration of ESG and Investment Analysis

Asset Class

Exclusion (Negative screening)

ESG integration

Active Ownership

Norm-based screening

Positive screening (Best-in-class)

Sustainability themed investing

Impact investing

Equity Class Fixed Income Class Other Equity AssetsStrategy


Awarness

APPlication

Policy &tools

Strategy

CIO

Mgt Structure

Roles and Responsibility

Engagement

BOD

Position and Commitment

Guidebook

Portfolio Integration

Biz Line

Champions

Tools and models

Reporting


Ping An continually strengthens the exchange with both domestic and international responsible investment organizations, government institutions and industry advocacy groups and outstanding peers, such as Ministry of Environmental Protection of the People's Republic of China, the China Securities Regulatory Commission, the Insurance Association of China, the Green Finance Committee of China, and the Principles for Responsible Investment (PRI). Through an array of channels including public seminars and research reports, Ping An supports and drives the implementation of responsible investment and green finance in China. Furthermore, the Group has maintained close contact and communicated multiple times with different types of domestic and international investors to work together from the theory to application of responsible investment.

In March 2018, Ping An Asset Management became the first insurance asset management company to join the Green Finance Committee of China. On June 19, 2018, Ping An Asset Management, attended a ESG Investment Development of the Insurance Sector seminar to discuss the application of ESG investment strategies to pension investment with PRI, Japan Government Pension Investment Fund, etc.

On October 9, 2018, in the Shenzhen Green Insurance Innovative Product Pilot kick-off ceremony, Futian District People's Government of Shenzhen Municipality, Ping An Property & Casualty Insurance, and Green Finance Committee of Financial Society of Shenzhen Special Economic Zone launched the country's first-ever green insurance product to address indoor air pollution in public areas.

In August 2019, Ping An joined PRI as a first asset owner signatory in China. To validate responsible investment as a core issue of Ping An Group's ESG sustainable development, and establish a robust responsible investment system, Ping An has developed the Ping An Group's Responsible Investment Policy to provide solid guidance for the implementation of PRI.

The Policy is in accordance with the international ESG standards established by the PRI and relevant guidelines of domestic regulatory agencies. Itcovers organizational structure and policy, responsible investment strategy and product application and communication and exchange. The system is based on the two essential requirements of responsible investment evaluation, namely environmental standard and social inclusion standard. In the future, Ping An will continue to enrich the system in accordance with the ESG investment strategy framework. As of 30 June 2019, Ping An has achieved a total investment of more than RMB1 trillion (refer to green, social and inclusive financial products; finance and product side inclusive).

5.3.3 Communication with Industrial Associations on Responsible Investment

21

As an integrated financial group, Ping An has always leveraged its financial resources to foster societal development. The Group facilitates social transition to low-carbon development, such as the development of clean energy, to address climate change issues. Each member company strengthens support to low-carbon development through various financial instruments, including equity and fixed-income investment products, while mitigating impacts of climate change on Ping An’s investment.

Ping An Bank supports several industries with its green lending operations. These include clean energy, new energy vehicle, environmental services, energy efficiency technology, and green construction. As of December 31, 2018, Ping An Bank had granted a total of RMB62.693 billion in green credits with a loan balance of RMB26.284 billion. The Bank supports its green credit strategy with the following practices in its credit approval and compliance process:

Other member companies also promote low-carbon investments from diverse perspectives. Ping An Securities participated in the underwriting of the first renewable energy green debt in China with green asset-backed securities issuance value of RMB2.4 billion in 2018. It maintains the leading position in domestic green debt issuance. Ping An Asset Management also incorporates the concept of responsible investment into the process of investment research and invests in environmentally relevant securities such as green debt.

In addition to expanding green credit and investment business, Ping An also intentionally limits its investments in high carbon emissions industries. Ping An has set a goal to gradually reduce its coal-related industry investment by 30% by 2030, benchmarking with 2015 as reference year. The Statement on Low Carbon Business Policy also clearly defines the exclusion list for investment in the coal industry. For new investment, Ping An’s member companies have an investment standard which is beyond the government’s regulation as their minimum requirement to follow. Ping An will also actively communicate with investment companies to improve their abilities to address climate change-related risks.

Ping An has always increased investment and underwriting in clean energy. It supports green economic development in areas including emerging industries, low-carbon economy, circular economy, energy efficiency and emissions reduction. Recently, Ping An has planned to join Climate Action 100+ to promote low-carbon transition of high-emitting corporates in China.

Set up green banking development goals: formulated the Ping An Bank Green Credit

Policy guidance document according to the Equator Principles.

Ancillary arrangement for specialized projects: Established the Energy Finance

Department, specifically tasked to track the development of green credit businesses.

Embed process: Execute a single-vote veto system for green lending to ensure that ESG

related risks are monitored properly.

Enhanced asset categorization and asset portfolio management: Support industrial

restructuring in China by withdrawing investments in non-government-supported

industries.

5.3.2 Low-Carbon Investment

million million

Total in green credits Loan balance

626.93￥￥262.84

��20 Ping An Insurance (Group)Company of China


Risk ManagementClimate change presents risks and opportunities, encouraging Ping An to transform the sustainability strategy and incorporating climate change mitigation measures into the daily operations and long-term strategies. While developing business opportunities such as sustainable insurance and responsible investment, climate change also brings risks to Ping An. As such, Ping An has developed a risk identification framework concerning climate-related transition and physical risks. The result will be used for insurance and investment screening. Assets that fail the investment screening will be excluded to reduce risks associated with climate change to Ping An.

Transition risks have profound influence on long-term investment. Factors such as changes in policies and laws, technological improvements or innovations and expectations of the market for investment institutions under the low-carbon economy transition trend will affect return of investment business in the long run. We are fully aware of the potential impact of transition risks. Ping An Life was selected as a pilot to conduct a transition risk assessment for its investment business, and the evaluation coverage will be gradually extended.

Transition Risks Analysis Methodology

A top-down analysis is adopted to categorize six major industries in Ping An Life's investment portfolio according to Shenyin and Wanguo Industry Classification Standard (2014 edition). Ping An analyzes significant public policy and planning for each industry through reviewing literature, policies and relevant standards. Then, a comparison of policy and planning requirements is conducted using low-carbon transition scenarios to identify the major transition risks and opportunities for the six major industries.

In the analysis process, Ping An mainly referred to Reference Technology Scenario (RTS) purposed by the International Energy Agency (IEA) Energy Technology Perspective (ETP) 2017. In particular to industry with higher low-carbon transition risk (i.e. power generation) in Ping An Life’s investment portfolio, the PACTA tool

These specify the abatement technologies (technology standard) or minimum requirements for pollution output (performance standard) that are necessary for reducing emissions.

Direct payments, tax reductions, price supports or the equivalent thereof from a government to an entity for implementing a practice or performing a specified action.

Required public disclosure of environmentally related information, generally by industry to consumers. These include labelling programs and rating and certification systems.

These are also known as marketable permits or cap-and-trade systems. This instrument establishes a limit on aggregate emissions by specified sources, requires each source to hold permits equal to its actual emissions and allows permits to be traded among sources.

Activities that involve direct government funding and investment aimed at generating innovative approaches to mitigation and/or the physical and social infrastructure to reduce emissions.

Other policies not specifically directed at emissions reduction, but which may have significant climate-related effects.

An agreement between a government authority and one or more private parties with the aim of achieving environmental objectives or improving environmental performance beyond compliance to regulated obligations. Not all VAs are truly voluntary; some include rewards and/or penalties associated with participating in the agreement or achieving the commitments.* Voluntary Agreements (VAs) should not be confused with voluntary actions which are undertaken by corporations, NGOs and other organizations independent of government authorities.

A levy imposed on each unit of undesirable activity by a source.

Energy efficiency standards, Renewable energy targets

Green bond subsidies, Energy efficiency subsidies

China Energy Label

Emissions trading scheme (ETS)

R&D to drive technological advances relating to climate change

These include policies focused on poverty, land use and land use change, energy supply and security; international trade, air pollution, structural reforms and population policies

Climate Leaders by US EPA -An agreement between US companies and the government to develop GHG inventories, set corporate emission reduction targets and report emissions annually to the US EPA

Carbon tax, Pollution charge6.1 Climate-Related Risks Identification

6.1.1 Transition Risks

Policy Categories

Regulations and standards

Subsidies and incentives

Information Instruments

Tradeable permits

Research and Development (R&D)

Non-Climate Policies

Voluntary agreement

Taxes and charges

ExampleDefinition

In the Fourth Assessment Report (AR4), IPCC specified a list of selected greenhouse gas (GHG) abatement policy instruments to provide countries with guidance for better response to climate change. According to the IPCC's definition of policy instruments, Ping An classifies a variety of policy, measures instruments and approaches that directly control GHG emissions or used to manage activities that indirectly lead to GHG emissions into the following categories:


of 2° Investing Initiative, is used to compare power generation industry trend of Ping An Life’s portfolio and the market portfolio from now to next five years. The tool considers a range of transition risk scenarios including the IEA's Sustainable Development Scenario (SDS) and the Beyond 2°C Scenario (B2DS).

Ping An Insurance (Group) Company of China Ping An Insurance (Group)Company of China24 2524 25

Regarding Ping An Life’s current investment portfolio, more than 51% of the investment is allocated to the financial sector, including banking, securities and diversified financial services, which facing lower climate risks than those of other non-financial industries in public policy aspect. Financial sector, driven by policies, is being provided more opportunities on green finance and new investment opportunities while facing climate risks.

On the other hand, utilities, real estate and building construction sectors are involving in higher climate policy risks, owing to nationwide carbon emissions trading scheme regulating carbon emissions in eight target industries. The trading scheme will put pressure on the operating expenses of the invested companies in the medium term (2030) and long-term (2050).

Power generation industry may bear the brunt of policy risks. The Chinese government is gradually tightening the requirements of coal-fired power plant operational efficiency and promoting“coal-to-gas”policy planning. Meanwhile, under the 2DS and B2DS scenarios, governments are also likely to further limit corporates’carbon footprint. Therefore, coal-fired power plants may need to phawer generation equipment shorter than its planned useful life, leading to an increase in capital expenditures.

The Paris Agreement proposed the target of keeping a global temperature rise this century well below 2°C. Countries are working towards the target through public policy and technology. Ping An understands the importance and urgency of achieving this target. Apart from using investment as a tool to encourage decarbonization in various industries, Ping An also analyzes the gap against the 2°C scenario. Power generation is one of the most carbon intensive industries among Ping An’s investment portfolio. Different power generation corporates may have different carbon emission pathway based on technology, asset and business strategy, resulting in different level of transition risks. Ping An analyzes Ping An Life’s investment in power generation industry against the 2°C scenario using the PACTA tool. The PACTA tool is dedicated to determining the gap between industrial trend of the three carbon-intensive industries in investment portfolio and IEA's 2°C Scenario over the next five years. This year Ping An focused on investment in power generation industry in the open market (comprising of about 53% of the total power generation investment in Ping An’s Life), and integrated the results into review work of Ping An's investment strategy to optimize future investment decision-making.

In addition to ongoing climate risks analysis, the Group continues to revise the investment restriction of fossil fuel and related industry to minimize the portfolio risk. For example, Ping An utilizes different means such as in-depth research and continued policy development on responsible investment and low-carbon investment, adjust the investment portfolio by resource allocation. Ping An strives to move forward to the global goal of keeping temperature increase below 2°C. At the same time, Ping An is also committed to encouraging investee companies and insurance clients to manage and disclose relevant climate-related financial information. Ping An is planning to participate Climate Action 100+ to actively communicate the need for greater disclosure around climate risk to investee companies.

Result of Transition Risks Analysis

The investment categories of Ping An Life are mapped in matrix consists of three levels of climate-related policy risks and climate-related policy opportunities. The results are as follows:

Risk Classification of Six Major Industries (By Investment Amount)

Opportunity Classification of Six Major Industries (By Investment Amount)

Including Building Construction and Power Generation

Including Building Construction and Power Generation

Including Real Estate

Including Transportation (mainly railway transport)

Including Transportation (mainly railway transport), Banks, and Non-bank Financial Services

Including Real Estate, Banks, and Non-bank Financial Services

12.2%

12.2%

8.7%

22.4%

79.1%

65.4%

Ping An Insurance (Group) Company of China Ping An Insurance (Group)Company of China

Low

HighMedium

Medium Low

High


In these years, extreme weather events occur more frequently and poses increasing climate risks to the underwritten assets. Extreme weather events pose a higher potential risk to claims and liabilities of the insurance business. Insurance institutions usually ignore this type of risks, which may cause serious consequences to compensation. Ping An attaches due importance to minimize physical risks under our sustainable transition strategy.

To manage risks using technologies, Ping An Property & Casualty conducts climate risk assessment focusing on extreme weather events such as typhoon, heavy rain, flood and so on by adopting a variety of advanced technologies, including satellite remote sensing, drone, Internet of Things, LBS positioning. The technologies build a robust base for sound risk assessment and management to prevent property owners from suffering financial losses.

Furthermore, Ping An internally developed DRS, a system for physical risk identification, analysis and management. The system combines our expertise in geography, disaster science, meteorology, and insurance, integrating over 1.4 billion data points on national disasters, internal underwriting and claim records. DRS can assess and rate the risk for nine types of natural disasters (including earthquake, landslide, debris flow, flood, tsunami, typhoon, tornado, lightning and snowstorm) and the major natural disaster risks for five common crops. It facilitates our risk analysis on natural disasters, extreme wind and precipitation and environmental pollution at any point across the country. Connected with the national meteorological management and warning system, DRS can issue ex-ante disaster warnings and suggest loss-mitigating actions for our customers.

Applying its disaster warning and control system, Ping An Property & Casualty has arranged flood risk investigations for over 5,000 underwritten enterprises and provided risk surveillance and on-site management services for over 400 focused construction projects in 2018. For instance, before Typhoon Mangkhut landed, Ping An Property & Casualty swiftly used DRS to identify over 8,000 customers in the landing area, issued over 13,000 disaster warning SMS messages, provided free disaster and loss prevention materials, and conducted on-site risk investigations for around 400 enterprises and construction projects. During this period, our typhoon and flood prevention guideline, issued on WeChat, was viewed more than 27,000 times. Our actions provided strong support for our client to reduce their losses from the typhoon.

By incorporating climate risk factors into pricing process, Ping An comprehensively considers the impact of climate change on client’s assets and insurance claims based on the historical data and analysis of DRS.

6.1.2 Physical Risks



Climate risk and opportunity analysis results are integrated into Ping An's group risk management system. To make informed underwriting and investment decision in industries prone to climate risks, ESG integration and norm-based screening are adopted to fully understand the climate risks in relevant industries.

Considering responsible investment and climate-related risk are emerging concepts to the investee companies, Ping An encourages subsidiaries to initiate ESG communication with the investee companies regularly and enhance their awareness of these concepts by providing guidance on mitigation implementation. This can genuinely support Ping An’s responsible investment and sustainable insurance system.

Ping An exercises shareholder activism whenever necessary to leverage the power for requesting examination and mitigation action of investee companies exposing to high climate risks. Ping An is planning to participate in Climate Action 100+, an investor initiative to enhance investee company performance on climate change disclosure regarding its management and governance information, thus reducing greenhouse gas emissions to achieving the goals of the Paris Agreement. Climate Action 100+ requires investors to exercise shareholders’rights, including attending board meeting, exercising right to speak in general meetings, exercising right to vote to exclude directors who fail to carry out their responsibility of climate risk management, to ensure board and management’s accountability and oversight of climate change issues. To date, there are more than 370 investors signatories worldwide, and collectively manage more than USD35 trillion in assets.

As a global leading insurance company, Ping An actively responds to industry initiatives in achieving the low-carbon operation goals by improving business and investment decision-making. Initiatives such as Unfriend Coal have been communicating with large-scale insurance companies on reducing or terminating any business involving coal and tar sand projects to support the Paris Agreement. Ping An will review the underwriting and investment of these companies and projects from time to time to gradually reduce the investment and express support for clean energy projects and companies.

Ping An has established Statement on Low Carbon Business Policy to limit Ping An’s underwriting and investment in the coal industry (including coal-fired industry and coal mining). By using negative screening, Ping An is considering not to underwrite for coal power and mining projects with the following conditions. Ping An will also go beyond the below standard when investing.

While restricting the underwriting and investment in the coal industry, Ping An continuously optimizes financial resources to support the development of renewable energy. On the journey to low-carbon economy, Ping An strives to manage the climate risks in business operations with responsible investment to bolster the long-term return.

Ping An Bank evaluates a diverse array of performance indicators in its annual self-assessment on green credit implementation. These indicators include governance structure, policy development, capacity building, workflow management, internal control procedures, information disclosure, and compliance monitoring. Ping An Bank has also formulated green credit principles and gradually adopts in credit assessments, market entry strategies, and analyst appraisals.

In response to the Opinions of the State Environmental Protection Administration of China, the People's Bank of China and China Banking Regulatory Commission on Implementing Environmental Protection Policies and Rules and Preventing Credit Risks, Ping An Bank implements credit control on corporates and projects that are resource-inefficient or non-compliant with industry policies or environmental regulations. Environmental compliance has become a mandatory requirement for loan approval. For example, strict controls are in place for corporate liquidity loan applications where the government finds excessive discharge, unpermitted discharge, or undue delay in rectification. In 2018 Ping An Bank's outstanding loan balance to industries with excess capacity decreased by 1.53% when compared with 2017.

Projects that build conventional coal-fired thermal power units with a unit capacity of 300MW or less, apart from small power gridProjects that the wet and cold generator set withpower generation coal consumption higher than300 grams standard coal/kWhProjects that the air-cooled generator set with power generation coal consumption higher than 305 grams standard coal/kWhProjects using backward production technology equipment

Projects with a single well type below the following scale (By regions): Shanxi, Inner Mongolia, Shanxi province: 1.2 million tons/year;

Chongqing, Sichuan, Guizhou, Yunnan: 150,000 tons/year;

Fujian, Jiangxi, Hubei, Hunan, Guangxi: 90,000 tons/year;

Other regions: 300,000 tons/year.

Project using non-mechanized mining technologyMore than 2 new coal mine projects with underground mining faceProject using backward production process equipment for coal mining

6.2 Insurance and Investment Screening 6.3 Promote Progress on Sustainable Development

Energy Generation from Coal Coal Mining

Case Study: Ping An Bank

29Ping An Insurance (Group)Company of China


Metrics and TargetsBased on the Group’s overall strategy and risk management on climate change, together with the TCFD requirements, Ping An has selected indicators that reflect and manage the climate change-related risks and opportunities. They include carbon emissions reduction potential, greenhouse gas emissions, carbon reduction targets, risk assessment processes and climate solutions. These show the relentless effort and effectiveness of Ping An’s sustainable development.

Ping An International Financial Centre has received multiple international accolades, including US LEED Core and Shell Gold Certification and UK BREEAM green building certification. On April 10, 2019, the Center was also awarded the “Best Tall Building 400 meters and above” by Council on Tall Buildings and Urban Habitat (CTBUH). The adoption of various green technologies in the building, such as sun-adaptive curtain system, ice storage air conditioning, rainwater and reclaimed water systems, have resulted in significant energy-saving performance for the building in general. They have reduced 46% of the energy consumption compared to that of the conventional building with identical scale.

To continuously strengthen the low-carbon management at the Group level, Ping An specifically assessed the carbon emissions reduction effect and potential by Ping An Bank’s innovative products and process transformation in 2016. It also sorted out the path and measures for the Bank’s green operations, further laying the foundation for quantitative management. In 2018, Ping An continued to use low-carbon potential index to identify all possible financial means to reduce carbon emissions indirectly. Throughout 2018, Ping An reduced carbon emissions indirectly by 61,552.3 tCO2e, which is 18.7% more than that in 2017.

Unit:tCO2 e

Through carrying out carbon reduction activities in services, products and operations, Ping An minimizes the company’s potential transition risks during the process of transitioning to the low-carbon economy. Upholding this transformative thinking, Ping An actively seeks opportunities to change by the use of energy and the demand associated with climate change.

Ping An owns multiple working premises and properties in China, and the majority of resource consumption comes from the use of electricity, water, and paper in daily operations. Thus, the effective implementation of green office program and promotion of energy conservation and emission reduction at these workplaces and properties are emphasized in Ping An’s sustainability transformation. Ping An constantly promotes innovative measures in business operations. It ensures that its operations would not result in direct damage to the environment by means of energy-saving renovations and behavioral change. In addition, it realizes energy and carbon reduction through directly curbing emissions (e.g. Ping An’s smart office) and indirect offset. Ping An is committed to adhering to relevant laws and regulations in operations and services, as well as advocating green operation to minimize the direct impacts towards the environment. This includes:

To adopt low-carbon measures in daily office operation, paperless office and the use of energy-saving lights across businesses to reduce carbon emissions and energy consumption directly;Encourage employees to participate in environmental protection activities and the use of renewable energy and new energy in architectural design and project retrofitting;Encourage all employees and our partners to contribute to carbon emission reduction and promote low-carbon ideas.

7.1 Carbon Emissions Reduction Potential

Total indirect reduction of carbon emissions 2018

33,319.1

12,338.3

10,165.7

676.4

3,491.6

547.4

1,013.8

61,552.3

25,518.3

10,586.4

6,899.2

233.5

3,036.6

640.1

5,757.3

51,871.4

2017

Ping An Property & Casualty

Ping An Life

Ping An Bank

Ping An Health

Ping An Annuity

Puhui Financial

Lufax

Total reduction of carbon emissions

30

Low-carbon potential of member companies bytechnological means

31Ping An Insurance (Group) Company of China Ping An Insurance (Group)Company of China


Greenhouse gas emission is an important indicator for the overall energy consumption of the company. In 2018, the total greenhouse gas emissions of Ping An were 197,904 tCO2 e. Due to the addition of some data sources, the greenhouse gas emissions data in 2018 was slightly higher than that in 2017.

Comparing the 2018 data scope with that of 2017, Ping An has included a new office Guangzhou Panyu Property and Casualty Insurance Telemarketing Center. Due to the renovation work of Shenzhen Ping An Tower, Ping An Technology moved to JL Pay Building in July 2018. Therefore, the report covers data of Ping An Technology in Shenzhen Ping Tower from January to July and in JLPay Building from August to December respectively. Data reported above cover 14 property buildings where Ping An is operating at, including Wuxi Ping An Wealth Centre, Shanghai Ping An Tower, Ping An School of Financial Management, Shenzhen Ping An Tower/JLPay Building, Shenzhen 826 Building, Shanghai Zhangjiang, Shanghai Jing An Plaza, Shanghai Ping An Finance Tower and Ping An Towers in Beijing, Beijing, Dalian, Zhuhai, Hefei and Fuzhou.

7.2 Greenhouse Gas Emission

Indicators 2018 2017 2016

197,904

3.68

8,957

3,774

453,477

123,860

172,981

3.43

9,186

84,860

1.85

Total GHG emission (tCO2 e)

Per-capita GHG emission (tCO2e/

employee)

Solid waste produced (tons)

2018 Greenhouse Gases Emissions (tCO2e)

Scope 1 Scope 2 Scope 3


Target setting is essential to climate change-related risk and opportunity management. The targets can effectively reflect the major achievements of Ping An’s climate change-related plans and projects. At this stage, Ping An has developed the following goals in relation to climate change:

Ping An pledges that all new buildings of Ping An Group will reach China’s Green Building Label (2-star) or equivalent LEED certification. Ping An will renovate buildings of headquarters and obtain green building certificates by 2020.

By leveraging the business advantage of "finance + technology", Ping An will continuously develop and explore climate change-related products and services to support government departments and customers in realizing green and sustainable development. By putting the idea of “lucid waters and lush mountains are invaluable assets” into practice, Ping An will help mitigate the impacts of climate change to the global societies.

Taking 2018 as the bese year



By 2025 reduce

Over next 5 years reduce

Over next 5 years increase

By 2020 reduce


Over next 3 years increase

By 2030 eventually reduce


Ultimately routinize electronic operations

Carbon emission intensity

5%

50%

60%

20%

80%

10%

60%

80%

Paper use intensity

Green building

Utilizing business advantages

7.3 Targets

Carbon emissions reduction potential


ProspectsClimate change risk assessment and analysis help corporates understand the operational and financial impacts of climate change. To date, the financial industry is still exploring how to analyze and address the risks brought about by the climate change. It is also developing a scientific, standardized methodology for analysis. This report is just the beginning of Ping An’s work in addressing climate change. In the future, Ping An will strive to enhance the work. By making reference to the practices in the financial industry, Ping An will mitigate the climate change risks in its businesses to create sustainable value for stakeholders.


Ping An Insurance (Group) Company of ChinaYitian Road, Futian District, Shenzhen, Ping An Financial Center

Postal Code 518048

Embracing New Climate, Focusing on Future …...Corporate Profile Ping An Insurance (Group) Company of China, Ltd. ("Ping An", the "Company" or the "Group") was established in Shekou,

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