The 2025 Sustainable Global Leaders Conference was held from October 16 to 18 at the Expo Park in Huangpu District, Shanghai. Lei Dapeng, Assistant General Manager of China Pacific Insurance Co., Ltd. (CPIC), attended the conference and stated that in the context of ESG becoming a global consensus, green insurance is emerging as a stabilizer and accelerator for implementing ESG principles due to its unique risk management and financing functions.

Lei Dapeng introduced that CPIC is actively engaged in the innovation of green insurance products and services, promoting sustainable economic and social development. Their practices and explorations can be summarized in five main aspects. First, continuously improving the standards system to guide the industry's development direction. Second, innovating product services to support the green transformation of industries. Third, actively encouraging public participation to build a low-carbon societal ecosystem. Fourth, voluntarily practicing low-carbon operations to establish a green benchmark in the industry. Fifth, innovatively conducting climate research to strengthen the industry's resilience in response to climate challenges.

Here is the full text of his speech:

Honored guests, Good afternoon! It is a great honor to be invited to participate in the 2025 Sustainable Global Leaders Conference and to discuss sustainable development with you all. In the backdrop of ESG becoming a global consensus, green insurance is becoming a "stabilizer" and "accelerator" for implementing ESG concepts with its unique functions in risk management and financing. Since 2020, CPIC has collaborated with various partners, including governments, universities, and professional institutions, to innovate green insurance products and services, thereby promoting sustainable developments in the economy and society. Today, I would like to share the theme "Collaborating with Ecological Partners to Build a New Pattern of Sustainable Development," which mainly focuses on five areas of practice and exploration:

1. Continuously improving the standards system to guide the industry’s development direction. Standards are a vital support for leading industry transformation. In terms of product standards, CPIC has drawn from the latest framework of the EU-China "Sustainable Finance Classification Directory" to establish pioneering green insurance corporate standards covering 12 fields under 4 major categories, and has contributed relevant experience to the industry's "Green Product Directory" to lead the direction of green insurance development. Regarding low-carbon operations, we launched the "Technical Specifications for Low-Carbon Operations Management of Insurance Companies," which sets low-carbon management standards for key processes such as energy management, vehicle management, and business travel, becoming the first group standard for low-carbon operations in the insurance industry. In the area of carbon equity, our "Carbon Equity Methodology for Pure Electric Passenger Vehicles" was among the first carbon equity methodologies in Shanghai, providing authoritative accounting bases for carbon emissions reduction in new energy vehicles and effectively guiding individual green actions.

2. Continuously innovating product services to support industrial green transformation. The green transformation of industries is a core engine for sustainable societal development. CPIC focuses on key fields such as green energy, decarbonization in shipping, brown industry transformation, and biodiversity protection to effectively address decarbonization targets set by the EU carbon border adjustment mechanism (CBAM), the International Maritime Organization (IMO), etc. We aim to safeguard customers during their green transitions. So far, we have launched over 37 innovative green insurance products, with green insurance risk coverage nearing 10 billion yuan in the first half of 2025. In the compulsory carbon market, we introduced products such as loan guarantee insurance for carbon quotas and performance guarantee insurance for carbon repurchase, helping companies convert carbon assets into financing tools, enhancing their liquidity and efficiency. In the voluntary carbon market, we have innovatively developed carbon sink insurance for grasslands and wetlands, and pioneered the "Judicial Carbon Sink" insurance mechanism, incorporating carbon sink subscriptions into ecological damage compensation to promote effective conversion of ecological value and proactive ecological governance.

3. Actively promoting public participation to build a low-carbon societal ecosystem. Public participation is the social foundation for constructing a low-carbon society. CPIC has launched the insurance industry’s first carbon equity platform, scientifically calculating the emission reductions of individuals' green actions through various scenarios, such as electronic policies and the use of remanufactured parts, and providing corresponding incentives. This initiative has already expanded to over 300 cities, attracting more than 650,000 users. We have also extended this concept to the international stage by pioneering a comprehensive risk guarantee and carbon neutrality solution for major events, providing all-round services for international exhibitions such as the Import Expo, Carbon Expo, and Service Trade Fair, and receiving recognition from the government, authoritative media, and the public, thereby becoming a "standard" for national major exhibitions. Additionally, we collaborated with the United Nations Global Compact (UNGC) to launch the "Zero Plastic" initiative, creating an internationally impactful model for reducing plastic and carbon emissions.

4. Proactively practicing low-carbon operations to set industry green benchmarks. CPIC deeply integrates the concept of green development into all aspects of corporate operations by establishing an "integrated management model of physical, financial, and carbon emissions," which enables the construction of an intelligent low-carbon operational system. To reduce energy consumption, we published a workplace green agreement, advocating for "paperless offices, turning off lights when no one is present, and resource sharing," and are in the process of establishing a green low-carbon demonstration park. When promoting green business travel, we innovatively implemented a "Carbon Guidance Tax" mechanism, converting business travel carbon emissions into management metrics through internal carbon pricing, ensuring participation in energy saving and emissions reduction from every department and employee. We have achieved results such that as of August 2025, the carbon emission intensity per hundred million yuan of premium has declined by 6.1 percentage points year-on-year.

5. Innovatively conducting climate research to strengthen the industry's response capability. CPIC is undertaking climate scenario analysis and stress testing in response to the climate-related disclosure requirements by the International Sustainability Standards Board (ISSB), the Ministry of Finance, and regulators, filling a gap in the domestic insurance industry regarding the quantitative assessment of climate physical risks at the liability end. This has resulted in three major groundbreaking innovations: first, the establishment of a localized model that integrates climate parameters from the Intergovernmental Panel on Climate Change (IPCC) and data from the China Meteorological Administration, avoiding the "lack of adaptation" seen in international models; second, the introduction of mid- to long-term temperature increase scenarios, establishing an evaluation system encompassing damage analysis and risk exposure calculation, accurately quantifying potential physical losses from typhoons and floods under various scenarios by 2030 and 2060; third, the establishment of a climate risk information disclosure mechanism, proactively disclosing stress test results to both fulfill social responsibility and provide references for the industry to effectively respond to climate risks.

Colleagues, China is currently unfolding a grand blueprint of collaborative progress toward peak carbon emissions, carbon neutrality, and green economic development. On this hopeful journey, CPIC is willing to collaborate with all partners, continuously innovating to converge green forces in a collective effort to propel the wave of sustainable development forward!

Thank you all!