Ping An’s responsible investments aligned to China’s green transition, CIO says

Written by Adam Cadle

13/03/2023

Ping An’s responsible investment priorities are aligned to the Chinese government’s green transition policy, the insurer’s chief investment officer (CIO) Benjamin Deng has said.

“ESG in China is coherent. We follow the national policies toward net-zero, and so we don’t have to fight our own battles to do better things,” Deng said.

Insurance companies are encouraged to make green investments with regulatory support, such as the 10% discount for the credit risk factor in green bonds under the China-Risk-Oriented Solvency System (C-ROSS) phase 2, Deng added. “All these things are helping in the same direction for us to invest in socially responsible and green target projects.”

In line with China’s goals to peak carbon emissions by 2030 and achieve carbon neutrality by 2060, Ping An set annual growth rates for its green investments of no less than 20%, green insurance premiums no less than 70% and green credit balance no less than 20%. Ping An aims to achieve the overall targets by 2025, with green investments and green credit of RMB 400bn and total green insurance premiums of RMB 250bn. As of 30 September 2022, Ping An’s green investment and financing totalled approximately RMB 319.8bn, and its green banking business totalled RMB 184.2bn. Premium income of environmentally sustainable insurance products totalled approximately RMB 110.5bn in the first nine months of 2022.

Ping An is investing in green and low carbon assets, while reducing the proportion of high carbon emitting assets. According to Ping An’s TCFD report published in 2021, less than 2% of the estimated RMB 7.92trn in Ping An’s assets in investment and banking services were related to major high carbon-emitting sectors. It has pledged to support innovations in clean technology, renewable energy, energy efficiency, energy technology, carbon capture and ecological carbon sinks, carbon trading and other environmental fields.

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