In order to implement the decisions and arrangements of the CPC Central Committee and the State Council on promoting green development, and give full play to the important role of insurance in promoting the comprehensive green transformation of economic and social development, the State Administration of Financial Supervision recently issued the "Guiding Opinions on Promoting the High-quality Development of Green Insurance" (hereinafter referred to as the "Guiding Opinions").
Establish two-stage targets by 2027 and 2030
The main objectives set out in the Guiding Opinions are divided into two phases.
By 2027, the green insurance policy support system will be relatively perfect, the service system will be initially established, the risk reduction service and management mechanism will be optimized, the product and service innovation ability will be enhanced, and a number of typical demonstration green insurance service models will be formed, and the growth rate of green insurance risk protection and green investment of insurance funds will be higher than the overall growth rate of the industry, and the role of promoting the green transformation of the economy and society will be enhanced. By 2030, important progress will be made in the development of green insurance, the service system will be basically sound, and it will become an important financial means to help the comprehensive green transformation of the economy and society, the level of green insurance risk protection and the scale of green investment in insurance funds will be significantly improved, the satisfaction and recognition of green insurance from all walks of life will be significantly improved, and the market influence of green insurance development will be significantly enhanced.
Deploy 12 key tasks
The "Guiding Opinions" put forward 9 key tasks from the liability side and 3 key tasks from the investment side.
The nine liabilities are designed to improve insurance protection and service levels in key areas:
The first is to enhance the society's ability to cope with climate change, the second is to ensure green and low-carbon scientific and technological innovation, the third is to promote the green and low-carbon transformation of energy, the fourth is to promote the consolidation and improvement of carbon sink capacity, the fifth is to support green and low-carbon national actions, the sixth is to improve the level of environmental pollution prevention and control of enterprises, the seventh is to serve the development of green and low-carbon and green manufacturing projects in the industrial field, the eighth is to promote energy conservation, carbon reduction and efficiency improvement in urban and rural construction, and the ninth is to promote the green and low-carbon development of transportation.
There are three key tasks on the investment side, aiming to strengthen the support for green investment of insurance funds:
The first is to improve the green investment management system. Establish and improve the investment management system, improve the investment management system and process, and incorporate environmental, social and governance factors into the corporate governance, investment decision-making and risk control processes.
The second is to strengthen the support for the green development of insurance funds. Give full play to the advantages of long-term investment of insurance funds, increase the allocation of green bonds under the premise of controllable risks and sustainable business, and increase investment in green industries.
The third is to strengthen the management of the green investment process. Enhance the ability to analyze the environmental, social and governance risks of the invested assets, strengthen due diligence, compliance review, investment approval and post-investment management, urge financiers to strengthen environmental, social and governance risk management by improving contract terms and strengthening social supervision, and encourage the measurement of carbon emissions of investment portfolios.
Encourage insurance companies to set up professional departments for green insurance
The "Guiding Opinions" also pointed out that all insurance companies should implement the main responsibility for the development of green insurance. On the one hand, establish a leadership and coordination promotion mechanism for green insurance organizations, designate specialized agencies or senior managers to be responsible for green insurance work, study and set up relevant performance appraisal indicators, clarify the development strategy of green insurance, determine key support directions and areas, and promote the development of green insurance as a whole. On the other hand, we will establish a working mechanism conducive to green insurance innovation, improve the internal control system and assessment and evaluation system of green insurance, and continue to promote the innovation of green insurance products and services. In addition, the "Guiding Opinions" proposes that all insurance companies should formulate green insurance work plans and give differentiated support policies in terms of business strategy and business management. For example, we will strengthen green insurance training, enrich the pool of professional talents, explore the establishment of specialized green insurance departments, characteristic branches, innovation laboratories and other specialized institutions, and actively apply new technologies and technologies to improve the level of digitalization of carbon management.
Source: Financial Times client
Reporter: Sun Rong
Editor: Yunyang
Email: [email protected]