Climate Governance Pioneer of The Life Insurance Industry
China Life Insurance Co., Ltd
Project Commitment to Sustainable Development Goals (SDGs)
INTRODUCTION
China Life is on a Mission to become the most trusted life insurance company, spearheading the industry’s transition to green finance. With a comprehensive climate governance framework in place, it seamlessly integrates carbon reduction and responsible financial principles into its operations.China Life’s climate governance involves key stakeholders, including the Board of Directors, Corporate Sustainability and Risk Management Committees, and the senior management. It proactively monitors global climate trends and effectively integrates climate issues into its core business practices.
Its investment management adheres to the esteemed Responsible Investment Principles, bolstered by a robust “Responsible Investment Policy” and “Sustainable Finance Commitment”. China Life also actively supports alternative energy industries and is committed to divesting from coal, unconventional oil, and gas investments by 2040.
Notably, China Life holds the prestigious ISO 14097 and ISO 14067 certifications, demonstrating its commitment to reducing carbon emissions, investing in renewable energy, and assessing its carbon footprint. The company serves as a benchmark for low-carbon operations, setting an example for the entire industry.
China Life has redefined the landscape of life insurance, leading the charge toward a sustainable future.
FRAMEWORK AND STRATEGY
China Life has taken the lead in establishing a comprehensive TCFD governance framework and has achieved the highest level of BSI compliance verification. Guided by its Board of Directors and sustainability committee, the company is committed to reducing the impact of climate risks and seizing new opportunities.In terms of operations, China Life has introduced insurance service carbon footprint assessments that analyze carbon emissions associated with every aspect of the policy life cycle. This information serves as the foundation for its ongoing efforts to promote a low-carbon transformation. According to the ISO 14067 certification results, China Life’s policies average carbon footprint per policy is 2.619kg, the lowest among Taiwan’s life insurance industry. This demonstrates the positive impact of initiatives such as incorporating green energy, promoting remote facial recognition insurance applications, and digitalizing service processes.
Regarding investments, China Life has been following the PRI and PSI principles for years, investing in renewable energy power plants, green bonds, and implementing ESG engagement with companies in high-carbon emission industries. These climate actions have allowed it to actively manage the risks and opportunities associated with climate change and become the world’s first enterprise to achieve the ISO 14097 certification.
ACHIEVEMENT AND IMPACT
With the Vision to become the most reliable life insurance company, China Life has committed to being a leader in green finance. China Life strives to demonstrate the sustainable value of the life insurance industry as an important force for social stability. The company is ahead of its peers in establishing a comprehensive climate governance framework and actively integrating carbon reduction and responsible financial principles into its investment and operational activities.China Life reviews the progress of its climate risk management achievements every quarter and reports them to the Sustainable Committee and the Board of Directors. As of the end of 2022, key achievements include a 44% reduction in the carbon footprint of China Life’s investment portfolio compared to 2020, and the proportion of high-carbon emitting industries in the investment portfolio has decreased to 18%. The headquarters building has been certified with ISO 50001 and a business continuity management mechanism has been established, which has been verified through the ISO 22301 certification.
FUTURE DIRECTION
As a delegated manager of financial assets, China Life leverages its influence on climate issues through investment management. In addition to following the Responsible Investment Principles, the company has also established a “Responsible Investment Policy” and “Sustainable Finance Commitment” internally, integrating ESG into investment portfolio management and continuously supporting the development of alternative energy industries through investments. More importantly, the company has jointly responded to decarbonization commitments with its parent company, China Development Financial, aiming to completely divest from industries such as coal, and unconventional oil & gas before 2040. China Life continuously monitors the carbon emissions of its investment portfolio and implement carbon reduction targets at each stage.China Life continues to promote process digitalization, including electronic policies, mobile insurance applications, and various online services. It is the first company in Taiwan to launch a remote facial recognition insurance application process, which successfully enabled business promotion and protection services to continue during the Covid-19 period and received international recognition with several awards. At the same time, through the integration of AI and big data databases, China Life continues to enhance AI intelligent coach to train and support newly recruited agents, enabling them to learn and serve policyholders more efficiently.
Established in 1963, China Life Insurance Co., Ltd (China Life) is a
subsidiary of China Development Financial and one of Taiwan’s
top five life insurance companies. With a focus on asset-liability
management, the company consistently delivers solid operational
performance. China Life is committed to embedding sustainability in
its core business and implementing low-carbon transition.
