Ping An Insurance has introduced its responsible investment system to promote Environmental, Social and Governance (ESG) investing and encourage long-term value creation in China’s capital market.
CN-ESG Smart Rating System created by the company offers a suite of China-specific smart ESG investment tools.
The system will assist companies to better understand and scale up their ESG performance and disclosure standards while also helping to eliminate ESG-related risks.
Furthermore, it will identify new value of companies, and offer supplementary information to facilitate investment decisions in order to find investment-worthy industries and companies.
The CN-ESG system is powered by artificial intelligence (AI) technologies including natural language processing, remote sensing image analysis and machine learning. These technologies will enhance high-frequency assessment to support timely investment decisions.
Companies in China got off to a late start in ESG information disclosure, compared to companies in other major capital markets, the company noted.
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By GlobalDataIt added that ESG investing demonstrated strong resilience in the global market and has been increasingly favoured by investors during the pandemic.
Ping An Group board secretary and brand director Richard Sheng Ruishengsaid: “ESG is emerging in China. As a pioneer of ESG in China, by tapping on our experience and technology, Ping An has established its proprietary methodology, investment know-how, and product toolkit in the ESG space.
“These first-mover advantages have enabled us to create an ESG system with unique Chinese characteristics for the industry.”
Ping An established a 4-in-1 responsible investment systemto promote its long-term sustainable investing and corporate sustainable development. Driven by the system, the company’s green investments reached CNY51.2 bn last year and socially-inclusive investments came toCNY903.2 bn.