Ping An Insurance (Group) Company of China Ltd has announced that its environmental, social, and governance (ESG) rating from global investment index provider MSCI has been upgraded to AA.
This is the third consecutive year that Ping An has achieved the highest ranking among multi-line insurers and brokers in the Asia-Pacific region.
The MSCI report recognised Ping An’s strong performance in several key areas, including:
The insurer’s initiatives in human capital development and access to finance were highlighted as industry-leading practices.
Ping An stated that sustainability remains central to its strategy and is fully integrated into its business model.
The company has established a structured ESG management system and continues to promote its “integrated finance + healthcare and senior care” strategy, aiming to align its business with environmental and social objectives.
The ESG rating update follows Ping An’s collaboration with several institutions – including Southern University of Science and Technology and Tsinghua University – to produce a report titled “Climate Change Adaptation and Disaster Risk Management: Current Practices and Future Perspectives for the Insurance Industry.”
The report discussed the growing impact of natural disasters on the insurance industry, attributing their increased frequency and severity to climate change.
Rising claims and compensation costs were identified as significant challenges for insurers, requiring enhanced strategies to manage climate-related risks.
Richard Sheng, board secretary and brand director at Ping An, noted the widespread implications of extreme weather events.
“In recent years, extreme weather events have become more frequent around the world, which has endangered the safety of people’s lives and their properties and led to massive social and economic losses,” he said.
By the end of 2023, Ping An reported substantial progress in its green finance activities. Its green insurance premiums reached RMB37.3 billion, reflecting a 49% year-on-year increase.
Meanwhile, the company’s green loan balance rose to RMB146.3 billion, and green investments in insurance funds climbed to RMB128.6 billion.
The company also announced that ESG factors are now fully incorporated into all its insurance fund investments.
Ping An plans to expand its offerings in green and climate risk insurance while collaborating with government bodies, industry peers, and research organisations to enhance society’s capacity to withstand climate-related risks.
Ping An said it was committed to long-term sustainability, emphasising its role in advancing environmental and social goals while delivering value to customers, employees, shareholders, and the broader community.
