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Ping An Assists China’s Power Transition and Combats Local weather Change Threat with Monetary Innovation

HONG KONG and SHANGHAI, Nov. 21, 2022 /PRNewswire/ — Ping An Insurance coverage (Group) Firm of China, Ltd. (“Ping An” or the “Group”, HKEx:2318; SSE:601318) is utilizing monetary innovation to help China’s vitality transition and fight local weather change danger, stated Richard Sheng, Secretary of the Board of Administrators. Mr. Sheng, talking through videoconference, joined a seminar on inexperienced and sustainable finance on the China Pavilion of the twenty seventh Convention of the Events of the United Nations Local weather Change Convention (COP 27).

“Local weather is a typical problem confronted by all mankind,” stated Mr. Sheng. “As estimated, in an effort to obtain carbon neutrality, China wants direct funding amounting to greater than RMB100 trillion, presenting monetary establishments with alternatives to undertake the mission of making social worth whereas enhancing revenues.”

Managing the dangers associated to local weather change is a vital a part of the Group’s long-term growth technique. In its second Taskforce on Local weather-related Monetary Disclosures (TCFD) report in 2021, Ping An disclosed the financial institution’s credit score and funding portfolio and the corresponding danger publicity in eight high-carbon emission sectors: coal energy, metal, cement, non-ferrous steel, paper making, aviation, petrochemical, and chemical. Ping An has made a visionary transfer to put money into inexperienced and low carbon property and scale back the proportion of high-carbon emitting property to mitigate the monetary dangers associated to local weather change. It’s supporting China’s targets of peaking carbon emissions by 2030 and attaining carbon neutrality by 2060.

For China, because the second largest economic system on the planet and the most important importer and client of vitality, vitality safety is essential, stated Mr. Sheng. “A safe transition of vitality is a pattern with slightly excessive certainty,” he stated. “Ping An is totally harnessing its benefit in long-term capital from insurance coverage,” stated Mr. Sheng. “In coherence with the lengthy cycle of inexperienced initiatives, it offers recent impetus to low-carbon growth whereas acquiring regular revenue.”

Ping An has leveraged its power of built-in finance and has additionally scaled up the funding in inexperienced industries by way of funding combine,” stated Mr. Sheng. As of September 30, 2022, Ping An’s inexperienced funding and financing totaled roughly RMB319.8 billion. As of the top of June 2022, Ping An Capital’s carbon neutrality fairness funding totaled RMB25.6 billion, together with RMB13.2 billion associated to wash vitality. In November 2021, Ping An Capital served as funding marketing consultant for Ping An Life’s RMB2 billion funding in CGN Wind Energy, which is growing clear vitality initiatives comparable to wind and photovoltaic energy. After investing, Ping An Life holds a stake of two.16% within the firm.

Insurance coverage is among the main sectors of the monetary trade confronting local weather change dangers, stated Mr. Sheng. Ping An’s pursuit of innovation in insurance coverage merchandise goals to make insurance coverage an financial “shock absorber” and a social “stabilizer”. For instance, Ping An has mixed Disaster Parametric Insurance coverage and index insurance coverage, which makes use of heavy rainfall and storm knowledge as parameters for insurance coverage payouts. As soon as the compensation situations are met, the compensation quantity could be decided with out on-site inspection, which helps speed up post-disaster reconstruction and resumption of enterprise operations. In 2022, Ping An additionally piloted forest carbon sinks distant sensing index insurance coverage in six provinces: Hebei, Guangxi, Hunan, Anhui, Guangdong and Guizhou. It supplied carbon sink dangers safety with RMB34.28 million for 340,000 mu (22,667 hectares) of forest land.

In keeping with Ping An’s 2021 TCFD report, lower than 2% of the estimated RMB7.92 trillion in Ping An’s property in funding and banking providers have been associated to the eight main high-carbon emission, or “brown”, sectors. Whereas supporting the transition of conventional coal-powered and high-carbon emitting purchasers, Ping An has additionally helped to lift their consciousness of emission management and consumption discount, and supplied know-how to observe emission knowledge and higher navigate the trail of transition. Ping An will proceed to boost the accuracy and precision of local weather danger evaluation, whereas fulfilling its company social duty as a monetary establishment. The Firm can even dynamically alter the management of high-carbon industries and help for inexperienced industries in line with related nationwide insurance policies and market situations. It should promote high quality industrial and social transformation by way of its skilled monetary services to empower sustainable growth.

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SOURCE Ping An Insurance coverage (Group) Firm of China, Ltd.

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