Ping An Enhances AI-Based ESG Rating System to Drive Responsible Investment – InsuranceNewsNet

HONG KONG AND SHANGHAI, July 27, 2022 /PRNewswire/ — Ping An Insurance (Group) Company of China, Ltd. (HKEx:2318; SSE:601318) upgraded its ESG rating system to meet the Group’s growing demand for high-quality ESG rating data.

Increased attention to environmental, social and governance (ESG) investments has led to an increase in demand for data on ESG factors. Most ESG performance assessment relies heavily on manual data collection and processing, which is inefficient and slow and results in poor data quality.

Ping An unveiled its ESG rating system in 2021 powered by natural language processing (NLP), knowledge graph, machine learning and satellite remote sensing. The system was able to collect ESG disclosure-based regulatory data as well as alternative non-disclosure-based data to provide richer and multidimensional information. The recently upgraded ESG rating system has further improved the accuracy and comprehensiveness of the data. It consists of 21 first-level indicators, 90 second-level indicators and 278 data points to measure ESG risks and opportunities for 37 industry sectors. The system can make real-time adjustments based on news and public sentiment.

A unique feature of the AI-based system is its ability to separately generate company disclosure and performance scores for a more complete assessment of a company’s ESG disclosure and performance. The disclosure score primarily examines the level of information disclosure by companies in traditional ESG data sources, such as ESG reports and annual results reports, with a focus on qualitative indicators. The performance score measures ESG performance with an emphasis on quantitative indicators.

The system covers more than 4,500 A-share listed companies and more than 2,700 Hong Kong listed companies. It rates more than 4,600 issuers of corporate credit bonds and 58,000 green bonds in the bond market, and about 140 fund management companies and more than 14,900 funds in the fund market. The system updates various data points frequently – daily, monthly or semi-annually, depending on the type – and adjusts real-time scores based on news sentiment scores.

Ping An’s CN-ESG assessment framework incorporates domestic and international disclosure standards and key frameworks to suit the Chinese context. The assessment framework refers to a number of ESG assessment frameworks, including the GRI, HKEX, SASB, TCFD, the Shenzhen Stock Exchange’s Social Responsibility Guidelines and the Shanghai Stock Exchange’s Social Responsibility Guidelines. Of all the core issues included in the CN-ESG framework, 87% overlap with at least one international framework and 13% of the indicators are specific to the Chinese context. Subsequently, the CN-ESG framework will also focus on the development of material industry-specific indicators, driven by in-depth fundamental industry analysis that will complement the existing set of core indicators.

Ping An believes that responsible investment helps manage risk and contributes to sustainable long-term returns. This system has been applied within Ping An’s investment business subsidiaries to support ESG investments. Regarding December 2021Ping An’s responsible investment and financing scale reached approx 1.22 trillion RMBof which Ping An’s green investment and financing was almost 224.58 billion RMB. Comprehensive investment and financing was ready 68.467 billion RMBand social investment and funding were ready 926.860 billion RMB, with 2,303 sustainable insurance products offered. The group is the first underwriting owner of the assets from China who joined with the support of the UN Principles for Responsible Investment network.

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Ping An Insurance (Group) Company of China, Ltd. (“Ping An”) strives to become a world-leading retail financial services group. With over 223 million retail customers and nearly 657 million Internet users, Ping An is one of the largest financial services companies in the world. Ping An focuses on two comprehensive areas of activity, “integrated finance” and “healthcare”, covering the provision of financial and healthcare services through its integrated financial services platform and ecosystems in financial services, healthcare, services of automobiles and smart city services. . The “finance + technology” and “finance + ecosystem” strategies aim to provide customers and Internet users with innovative and simple products and services using technology. like of China The first joint stock insurance company, Ping An is committed to the highest standards of corporate reporting and corporate governance. The group is listed on the stock exchanges in Hong Kong AND shanghai. Ping An was ranked 6th on the Forbes Global 2000 list in 2021 and ranked 16th on the Fortune Global 500 list in 2021.

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

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