Ping An Insurance of China : Mar 2024 2023 Sustainability Report

Ping An Sustainability Report 2023

Contents

Opening

Sustainable Development Strategy ManagementSustainable Business

Sustainable Operations And Community

About this Report Corporate Profile Awards and Recognitions

• 03 Strategic Planning

• 04 Management System

• 05 Materiality Assessment Stakeholder Engagement Risk Management

  Sustainable Governance

  Corporate Governance Business Code of Conduct Information Security and AI Governance

• 91 Governance

  Climate Change And Carbon Neutrality

  108 Annual Key Performance 117

• 95 Strategy

• 100 Risk Management Metrics and Targets

  Our Measures to Reduce Emissions

09 Supporting the Real Economy 21

12 Sustainable Insurance 23

14 Responsible Banking 32

15 Responsible Investment 37

17 Responsible Products 45

Appendix

108 Statement of the Board of Directors 131

111 Independent Third-Party Assurance 132

112 Report

114 Indicator Index 135

Rural Revitalization and 49 Community Impact

Consumer Protection and 60 Experience

Development and Welfare of 69 Employees and Agents

Technology-Driven Sustainable 85 Development

Sustainable Supply Chains 88

About this Report

•Scope of the Report

•Compilation Principles of the Report

Reporting scope: The Report focuses on Ping An Insurance (Group) Company of China, Ltd., and covers its member companies.

Reporting period: From January 1, 2023, to December 31, 2023. Reporting cycle: The Report is published annually.

The Report is compiled in accordance with the Environmental, Social and Governance Reporting Guide of the Stock Exchange of Hong Kong Limited and by reference to the Guidelines on Environmental Information Disclosure for Financial Institutions in Shenzhen, Global Reporting Initiative (GRI) Standards, Insurance Association of China the Guidance for Disclosure of Environmental, Social and Governance (ESG) Information for Insurance Institutions as well as the Sustainability Accounting Standards on Commercial Banks, Insurance and Asset Management & Custody Activities published by the Sustainability Accounting Standards Board (SASB).

•Data of the Report

•Assurance of the Report

The financial data in the Report was extracted from the Annual Report 2023 of Ping An Insurance (Group) Company of China, Ltd. Other data came from the internal systems of the Group or manual collection. Unless otherwise specified, the currency in the Report is RMB.

The contents and data disclosed in the Report were approved by the Board of Directors of Ping An Insurance (Group) Company of China, Ltd. Deloitte Touche Tohmatsu Certified Public Accountants (LLP) has carried out an independent third-party assurance on the Report in accordance with International Standard on Assurance Engagements 3000: Assurance Engagements Other Than Audits or Reviews of Historical Financial Information ("ISAE3000"). Deloitte has issued a limited assurance conclusion on the selected indicators included in the Report.

•Release Form of the Report

The Reports in Chinese and English are released both in hardcopy and online. The online version can be accessed athttps://group.pingan.com/ (Ping An Official Website), www.sse. com.cn (Shanghai Stock Exchange Website) andwww.hkexnews.hk(Hong Kong Exchange and Clearing Limited Website).

Corporate Profile

Ping An Insurance (Group) Company of China, Ltd. ("Ping An", "the Group", "the Company", "Ping An Group", or "we") was established in Shekou, Shenzhen, in 1988. The Group was the first insurance company to adopt a shareholding structure (joint stock company) in China. It has developed into one of the three integrated major financial groups in China. The Group's shares are listed in the Stock Exchange of Hong Kong (Stock Code: 2318) and the Shanghai Stock Exchange (Stock Code: 601318).

Ping An strives to be a world-leading integrated financial, healthcare and elderlycare services provider. Ping An actively responds to China's 14th Five-Year Plan, focuses on core financial businesses under a people-centered approach, and strengthens the insurance protection function to serve the real economy and support national strategies including "Digital China" and "Healthy China." Ping An develops TechFin, green finance, inclusive finance, pension finance, and digital finance. Ping An also develops the "integrated finance + healthcare and elderlycare" service framework to provide professional "financial advisory, family doctor, and elderlycare concierge" services. Ping An advances comprehensive digital transformation to pursue high-quality business development and improve the quality and efficiency

of financial businesses. Moreover, Ping An accelerates ecosystem development to "empower financial services with technologies, empower financial services with ecosystems, and advance development with technologies." Remaining customer needs-oriented, Ping An continuously develops its integrated finance model of "one customer, multiple products, and one-stop services" under the people-centered philosophy. Ping An provides diverse products and convenient services to 232 million retail customers under the "worry-free, time-saving, and money-saving" value proposition.

As of the end of December 2023, Ping An had 288,751 employees and RMB 11,583,417 million in total assets. The Group's operating profit attributable to shareholders of the parent company reached RMB 117.989 billion. Net profit attributable to shareholders of the parent company reached RMB 85.665 billion. The basic EPS was RMB 4.84, and the annual dividend per share was RMB 2.43. In 2023, Ping An ranked 33rd on the Fortune Global 500 List , 16th on Forbes Global 2000 List of the World's Public Companies and 2nd among global insurance companies.

Indicators

2023

2022

2021

Operating profit attributable to shareholders of the parent company (in RMB 100 million）

Net profit attributable to shareholders of the parent company (in RMB 100 million）

Basic earnings per share (in RMB）

Dividend per share (in RMB）

1,180

4.84

Ping An had 288,751employees

857

1,469

1,110

1,480

1,016

6.36

5.77

2.43

2.42

2.38

Total assets of

11,583,417in RMB million

Awards and Recognitions

In 2023, we were recognized and well-received by domestic and international rating agencies and media in terms of corporate governance and corporate social responsibility and won multiple awards.

A (1st in the multi-line insurance and brokerage industry in the Asia-Pacific region)

B (The highest level for financial companies in Chinese mainland)

Constituent of the FTSE4Good Index SeriesBest 1% of Chinese Companies in S&P Global ESG Score (The highest level for insurance companies in China (including Hong Kong and Macao)

Awarded the "China Charity Awards" for the 4th timeSelected as one of Forbes China TOP 50 ESG Innovative Companies

1st among Chinese financial companies and 5th in the global insurance industry in Forbes' World Best Employers 2023

ESG Best Practice Cases for Chinese Listed Companies 2023

Awards of Excellence in ESG-Hang Seng Index ConstituentCSR Initiative of the YearListed (7th on the list, 1st in the financial industry)

Industry Engagement of Sustainability

Ping An is dedicated to leveraging its influence on sustainable development by actively engaging in peer exchanges and implementing sustainable development strategies with domestic and global sustainable development initiative organizations to facilitate the co-building of sustainable ecosystem. Complying with the domestic regulatory requirements for sustainable development, Ping An maintains its leading position in the industry and serves as the vice director of the ESG Committee of China Association for Public Companies, member of the Asian Corporate Governance Association and council member of the Green Finance Committee of the China Society for Finance and Banking. Meanwhile, Ping An also participates in the formulation of industry standards for sustainable development, such as the the Guidance for Disclosure of Environmental, Social and Governance (ESG) Information for Insurance Institutions and Green Insurance Classification Guidelines to support sustainable development activities in the industry. In alignment with world's leading sustainable development standards, Ping An has become the first asset owner signatory from Chinese to the UN Principles For Responsible Investment (UNPRI) and the first company in China' mainland to sign the United Nations Environment Program Finance Initiative (UNEP FI) Principles for Sustainable Insurance (PSI), and the only Chinese representative of the UNEP FI Global leadership Council and Steering Committee. Additionally, Ping An participates in and endorses sustainable development initiatives such as Climate Action 100+ and the Green Investment Principles (GIP) for the Belt and Road Initiative. We are committed to implementing the Global Development Initiative and the Sustainable Development Goals to further enhance the global sustainability image of Chinese companies and increase their influence in global sustainable development.

Global Partnership

Ping An's Involvement in the Formulation of ESG Management Standards in the Insurance Industry

In 2023, under the guidance of the Insurance Association of China, Ping An Group participated in the formulation of two industry-wide ESG standards. They are the self-regulatory Green Insurance Classification Guidelines (2023 Edition) covering green insurance products, green investment of insurance funds and green operation of insurance companies and the Guidance for Disclosure of Environmental, Social and Governance (ESG) Information for Insurance Institutions the first domestic self-regulatory document aimed specifically at enhancing ESG disclosure frameworks and content in the insurance industry.

In the formulation of the the Guidance for Disclosure of Environmental, Social and Governance (ESG) Information for Insurance Institutions, Ping An Group as the leader among the well-known insurance companies, led the initiative and collaborated with them to establish a specialized task force. Drawing on its rich experience in ESG practices and leveraging its proprietary CN-ESG evaluation system, the Group thoroughly analyzed ESG indicator system for disclosure tailored to the insurance industry. We set the indicators with distinctive industrial and Chinese characteries, covering areas such as insurance agent management improvement, sustainable insurance products, green investments in insurance funds, and rural revitalization to provide guidance on for high-quality ESG information disclosure and management practices in the sector.

Annual Performance Review for Sustainable Development

Sustainable Business

Sustainable Operations and Community

Accumulated funds for industrial revitalization

1,178.82

in RMB 100 millionGreenhouse gas emissions in the operation 426,082.62tCO2e, a decrease of 13.5% over the previous year

Training hours per employee

45.1hoursNumber of volunteers from Ping An employees and agents over

500,000

Number of employees participating in key employee stock ownership plan and long-term service plan

103,232

Sustainable Governance

Since 2012, the cumulative total of dividends distributed over

300in RMB billionIn 2023, Ping An participated in investor meetings

354timesTax payment

1,001.7in RMB 100 millionCoverage rate of ethical standards and anti-corruption training

100%

Coverage rate of operations certificated by the ISO/IEC 27001 Information security management system

02

Sustainable

Development

Strategy

Management

Utilizing its comprehensive financial capabilities, Ping An, in collaboration with its member companies such as Ping An Property & Casualty, Ping An Bank, and Ping An Securities, supports the construction of the "Baihetan Hydropow-er Station" using various financial instruments, including insurance, credit, debt financing, and direct equity investments.

Strategic Planning

Sustainable development is one of Ping An's development strategies and the basis for maximizing long-term value. Ping An is dedicated to enhancing its practices in ESG-related areas, thoroughly integrating ESG requirements into the Group's operational and management processes. The Group regularly conducts analyses and assessments of sustainable development topics, aligning them with the Group's strategic and business goals to review its sustainability planning. In pursuit of long-term, balanced and high-quality sustainable development, Ping An has established five-year goals for thirteen core sustainability-related issues, effectively enhances sustainability-related actions and management and provides guidelines for its practice in ESG-related areas.

Ping An tracks the progress of core sustainability topics quarterly and reports its advancements to the Sustainable Development Committee semi-annually and to the Board of Directors and its Strategy and Investment Committee annually. This process ensures that the strategic plans for sustainable development are effectively implemented.

Five-year goals for core sustainability-related issues

Sustainability Issues

Sustainable Insurance

Contributing to economic development, social progress and environmental improvement with comprehensive and professional risk assurance

Responsible Banking

Promoting economic development, social progress and environmental improvement with responsible banking business

•Realizing a 5-year compound growth of over 10%

Responsible Investment

Supporting economic development, social progress and environmental improvement with long-term capital of insurance assets

Responsible Products

Offering customers "worry-free, time-saving and money-saving" healthcare and elderlycare services

•Steady growth from around 65% in terms of individual customer coverage and Internet user coverage

Key Quantitative Goals

•Maintaining growth in total sustainable insurance premium

•Integrating ESG into the process of investment decision-making management and enhancing active shareholder behavior and related disclosure

Annual Progress

•This year's total sustainable insurance premium income reached RMB 557.725 billion.

•Overall amount of responsible banking reached RMB 1.21 trillion.

•The annual total of responsible investments made by insurance funds amounted to RMB 725.3 billion.

•ESG factors have been fully integrated into the entire investment decision-making process for the Group's insurance funds.

•The coverage rate of individual clients and internet users has reached 64%.

•More than 147 million individual clients of the Group have used services provided by the healthcare and elderlycare ecosystem.

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Disclaimer

Ping An Insurance (Group) Co. of China Ltd. published this content on 21 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 March 2024 04:16:03 UTC.