China Life supports the parent company's goal to achieve net zero emissions by 2045, and follows the competent authority's policies by monitoring domestic and overseas development trends in climate risk management. The Company has set important milestones in terms of climate risk management, from initiatives and commitment, to realization through an "action-based" approach. China Life aims to work hand-in-hand with internal and external stakeholders to achieve its sustainable environment through sustainable finance actions.
In light of the growing threat of climate change, China Life engages in carbon reduction actions to lower its impact on the environment, and has also planned adaptation measures to mitigate the potential impact of climate change on its own operations. Aside from further optimizing the Company’s current climate risk management framework, the Company has expanded scenarios and subjects of its scenario analysis, in order to conduct comprehensive evaluation of potential climate risks. China Life has also compiled an "insurance service carbon footprint inventory" in 2022, which provides the baseline for carbon reduction of future operations.
Completed Climate Governance Framework
Formulated internal rules and regulations on climate risk management
China Life established a dedicated management organization and relevant procedures for climate-related risks, incorporated physical and transition risks into the scope of risk management, and periodically discloses climate-related risk management information; including governance, strategies, risk management, indicators, and goals, according to the TCFD framework.
China Life included climate-related risks into its three lines of defense for internal control
Expanding Scenarios and Subjects for Scenario Analysis
China Life expanded the application of scenario analysis on climate risk assessment from the perspective of its life insurance value chain. In addition to physical risk scenario analysis for real estate investments and supplier business locations, the Company also applied transition risk scenario analysis to climate risk assessment of business locations.
Insurance service carbon footprint inventory
China Life compiled its first insurance service carbon footprint inventory in 2022 to plan comprehensive carbon emission management of its own operations. Focusing on the insurance policy life cycle, the Company carried out systematic and consistent inspections to analyze sources of carbon emissions in business operations, and then compiled, as well as summarized inventory results for future planning and pursue continuous improvement.
China Life implemented ISO 50001 Energy Management Systems and improved the energy use efficiency of the head office building to gradually lower the carbon emissions of operations. In addition, to installing solar panels at the head office building to generate electricity for self use, China Life also purchased renewable energy from external institutions to reduce carbon emissions from energy use. China Life continues to implement green services, digitalize operating procedures and insurance services, as well as set short, mid-, and long-term management goals to gradually reduce carbon emissions from transportation and paper use when providing services to its customers. Regarding the future, China Life will use inventory results as the basis to further discover development opportunities for zero carbon insurance services.