China Pacific Insurance : CPIC ESG Achievements

CPIC ESG Achievements

November 2023

Innovation & Practice

in Green Insurance by CPIC P/C

Articulated strategic directions, road-map & implementation measures for green insurance, incorporating ESG elements into management process and Enterprise Risk Management (ERM) system, enhancing information disclosure and communication with stakeholders, improving relevant polices, regulations and management process.

Exploratory efforts date back to the end of 2020. Based on insights into ESG and the role of insurance, CPIC P/C became the first P/C insurer with a clear strategic plan for sustainable insurance

and a systematic approach towards its implementation.

In August 2022, formulated Strategic Plan and Implementation

Programme for Green Insurance (sustainable insurance) between 2022

and 2024, seeking to advance green agenda at strategic level.

Our sustainable (green) insurance classification was based on areas and directions of professional service,

a reflection of industry needs for green insurance business development. Implementation follows the principle

of unified design, prioritisation and step-by-step improvement.

First to Develop

Corporate Standards

In July 2022, developed guidelines for green insurance,

first of its kind in industry, which covered all types of

encouraged green insurance business, while completing

statistical platform for green insurance.

Coordinating Formulation

of Industry Standards

Joined in drafting Guidelines of Green Insurance Classification for the industry, leading document interpretation, which was publicly distributed.

Promoted innovation in products and services centring on green energy, reduction of pollution and carbon emissions, green transport, and environment protection, with a total of 26 "first-of-its-kind"products on the market, and 4 of them launched in 2023. By the end of September 2023, CPIC P/C provided cumulatively 12 trillion yuan in SA.

Green Energy

Cumulative 1.2 trillion yuan in SA in the past 20-odd years,

contributing to China's energy security and energy mix transition.

Innovation "Feng Guang Wu Xian" platform; maritime weather early-

warning platform

Green Transport

Covering more than 2mn new-energy vehicles, with SA totalling over 2 trillion yuan Serving risk protection for Rail Transit over 600billion yuan in SA

First in industry New business model for NEV auto insurance

Reducing pollution & carbon emissions

Served nearly 700,000 clients in 8 sectors with high energy consumption

and carbon emissions, with SA nearing 9 trillion yuan.

First in industry	Insurance against loss in carbon trading of machinery damage for low-
carbon projects, guarantee insurance for carbon-secured loans,

guarantee insurance for performance of carbon-assets repurchase, insurance for oil CCUS

Environment

Contributing to farmland fertility, carbon sequestration, water quality, and bio-diversity

First in industry	Carbon sink insurance for forestry, wetland, grassland, and oysters;
indemnity insurance for carbon leakage in cases of fire; water quality
	insurance, liability insurance for relief & rescue of environment-related
	emergencies; liability insurance against damage caused by wildlife

Developed comprehensive risk solutions integrating all- around risk protection and carbon neutrality for large events, a benchmark for insurance to serve exhibitions of green industries.

Carbon Neutrality	All-around Risk
Service	Protection
Carbon neutrality	Comprehensive
insurance coverage
for large events
Tan Puhui system	Risk reduction
service

Launched Tan Puhui for insurance, the first of its kind in the industry, a

user-authorised,single-purpose platform to measure and incentivise low-

carbon behaviours.

Tan Puhui of CPIC

Internet + big data + carbon finance

1 unified		3 channels of
account system	1 single	consumption

methodology	8 customer	1	shared reward
	points platform
	scenarios

No. of provinces	No. of cities
covered (6)	covered (38)
Cumulative users	NEVusers
(115,000)	(74%)

Green actions completed Total interactions

(25,000)(66,000)

To lower carbon emissions, we built an integrated management model of "physical objects + finance + carbon emissions" based on combinations and upgrading of various measures across asset types and operational processes, such as improvement of rules and policies, regulation of work process, system support, follow-up and tracking, and institutional innovation.

By the end of September, our carbon emissions fell by 8.4pt year on year.

6 typical asset types

Motor vehicles		Low-value but	Work-places
important fixed assets
Key office supplies	IT equipments Business travel &
			commuting

1 low-carbon operating manual

0102

Low-carbon

Operating

System

0403

1 low-carbon operating platform

1. closed-loopintegrating carbon information collection, measurement, and presentation, which enables differentiated monitoring and management of data for low-carbon operation. Completed data collection from 2022 till now.
   1 set of mechanisms to promote innovation and reduce carbon emissions

Put in place guidance for corporate low- carbon, first used in business travels.

Support for Rural Invigoration

Since 2018, CPIC P/C has actively engaged in serving the national rural revitalisation strategy, focusing on the overall initiative of "thriving industry, livable ecology, civilised village style, effective governance, and prosperous life". Giving full play to the advantages of the main insurance business, CPIC P/C follows the path of "products + technology + services" to boost innovation, with vigourous efforts and positive results in ensuring food security, improving rural financial services, protecting rural ecology and improving the life of farmers.

In 2019, the Leading Group for P o v e r t y A l l e v i a t i o n a n d Development of The State Council awarded the Company the "National Poverty Alleviation Aw ard for Organisational Innovation Award".

I n 2 0 2 1 , t h e P a r t y C e n t r a l Committee and The State Council awarded the Company the honorary t i t l e o f " N a t i o n a l A d v a n c e d

Collective in Poverty Alleviation".

In 2020, "Anti-poverty insurance", was awarded Best Poverty Reduction Case at the 1st Global Cases of Poverty Alleviation.

In 2021, Price index insurance for sugar canes in Guangxi was awarded Best Poverty Reduction Case at the 2 n d G l o b a l C a s e s o f P o v e r t y Alleviation.

In 2022, "Insurance + futures" programme for corn income protection in Shandong was awarded Best

Poverty Reduction Case at the 3rd

Global Cases of Poverty Alleviation.

Thriving industry	Livable ecology		Civilisedvillagestyle		Effectivegovernance		Prosperous life

Facilitate agricultural development, continuously innovate in products

We push for higher standards, expanded coverage and diversification of products for agricultural insurance, put in place a product system of "government-sponsored basic insurance + commercial insurance + rural-related riders", and have developed cumulatively over 3,500 agricultural insurance products, covering agriculture, forestry, fishery, animal husbandry. In 2022, we provided 507.7bn yuan in SA of agricultural insurance to 24.49mn rural households.

Food security is a national priority. Developed a wide range of products such as insurance for the 3 staple food crops, full cost indemnity and income protection. In 2022, we offered risk cover of nearly 100bn yuan in SA to the 3 staple food crops.

Seeds are like "chips" of agriculture. We write a range of seed insurance, and in 2022, provided SA of over 600mn yuan to seed production of wheat, corn and rice in 22 provinces/municipalities.

Achieved integration of building and management of high - standard f a r m l a n d v i a " i n s u r a n c e + service".

In 2022, provided 1.4bn yuan in risk cover to high- standard farmland in 15 provinces/municipalities.