In the context of globalization, the participation of foreign capital in China's capital market is increasing, which requires enterprises in China for better corporate governance and long-term returns to shareholders. Therefore, it is imperative to use sustainable development theory as the corporate strategy to guide the development. As a dual-listed company of Hong Kong and Shanghai Stock Exchange, Ping An has upgraded its corporate sustainable development strategy to the group strategy, so as to promote the deep integration of sustainability with business practices throughout the whole group, and to strengthen corporate governance in a more scientific, professional and systematic way. Therefore, Ping An could fulfill its responsibilities to all stakeholders, and realize the sustainable development of the company.

In 2018, Ping An issued the group's sustainable development report for the first time, elaborating on the unified business and social values of Ping An in three main chapters: ESG (environment, society and governance) strategy and management, Ping An' s six core issues of the year, and the specific practices for five major stakeholders.

1. ESG management structure: Ping An has established an effective management structure for Group ESG management according to the group structure, which enables the work of ESG to run effectively from the board of directors to the business unit. Since 2017, the management function of ESG has been added at the level of the company's executive committee and formed investor relations and ESG management committee to ensure that the company's directors and senior executives are informed of the influence and implementation of ESG risk management. The overall plan is coordinated by Group ESG office and executed by the ESG executive team. The effectiveness of ESG management is ensured from top to bottom through strategy, risk management, project planning, information disclosure and performance appraisal.

2. Ping An annual core issues: Considering the sustainable development trends and requirements both in China and across the world, and the characteristics of our own business, Ping An has extracted six core issues as the focus of annual sustainable efforts:

● Targeted poverty alleviation: Poverty eradication is the focus of worldwide concern in the 21st century, and also the basic of China's national strategy for poverty alleviation. Ping an launched the "Ping An Rural Community Support" in 2018, as the practice of impact investment, and upgraded to "Smart Poverty Alleviation" mode relying on our industrial advantages and technological strength.

● Embracing technological change: Ping An continuously promotes technological transformation, we, provides customers with intelligent products and services with deep understanding of customers’ demands, and maximizes the value brought to the society by our commercial means. While embracing technological change, we also attach great importance to information security and AI ethical governance.

● Financial services to real economy: Ping An actively supports the implementation of major national strategies, and makes use of multiple finance and technological advantages, aiming to become the backbone force in promoting the transformation of the national real economy and industrial restructuring.

● Addressing Healthcare Challenges: Medical care has always been an urgent social issue concerning people's livelihood in China. The impact of demographic and health-related risks and opportunities on insurance companies has drawn great attention from the capital market. Ping An responds by strategic planning on medical and health industry and strengthening the development of related insurance products.

● Addressing climate change risks: Climate change risks have become the world’s top three risks and aroused great attention from different stakeholders.On the one hand, Ping An conducts in-depth research on climate change-related risks and actively manages risks to reduce the impact of climate change on its multiple businesses. On the other hand, Ping An leverages business strengths of "finance + technology" to continuously develop and explore climate change-related products and services.

● Responsible investment: The pursuit of long-term and stable investment returns is a sign of the maturity of investment philosophy, as well as the expectation of domestic and foreign institutional investors. Ping An believes that responsible investment is not charity, but an investment method that can effectively avoid risks and obtain long-term returns. It constantly carries out responsible investment practice through various professional companies.

3. Sustainability Practice with stakeholders in 2018: Over the past 30 years, Ping An has been committed to building a benchmark of corporate responsibility, fulfilling its obligations to shareholders, customers, communities and environment, as well as its partners, and to achieve sustainable development together. In 2018, we continue to reward all stakeholders through business development and activities, and have achieved good results.

Please download our 2018 Sustainability report in PDF for more details.