On April 28th 2023, the Inception Workshop “Promoting Environmental, Social, and Governance Investments of Insurance Funds” was successfully held in collaboration with Asian Development Bank (ADB), China Banking and Insurance Regulatory Commission (CBRIC) and Insurance Asset Management Association of China (IAMAC) in Beijing, China. The project aims to strengthen the integration and regulation of Chinese insurance institutions in environment, social, and governance (ESG) investment considerations. It also aims at assisting the China Banking and Insurance Regulatory Commission in formulating ESG investment guidelines for Chinese insurance funds.
Mao Qian, Director of the International Cooperation Department of the International Institute of Green Finance at the Central University of Finance and Economics, presided over the meeting.
The event witnessed the participation of experts from insurance institutions, consulting firms, and academic institutions, who engaged in in-depth discussions on key issues and future developments related to ESG investments. Notable speakers included:
- Xi Yongchun, Deputy Director of the Insurance Fund Utilization Supervision Department of the China Banking and Insurance Regulatory Commission
- Jennifer Romero-Torres, Senior Financial Sector Specialist at the Asian Development Bank
- Cao Deyun, Executive Vice President and Secretary-General of the China Insurance Asset Management Association
- Bao Jie, Co-Director of the ESG Center at the International Institute of Green Finance (IIGF)
Xi Yongchun highlighted the relevant work and challenges that need to be addressed at the regulatory level to promote ESG investments. Furthermore, he set several KPIs for the specific implementation of the project. He expressed hope that the expert team represented by IIGF would shoulder the project’s responsibilities, leverage their professional knowledge, and conduct in-depth research.
Jennifer Romero-Torres emphasized that this project represents an important milestone in addressing ADB’s objective to promote the co-development of humans and nature. The project also aims to enhance capacity building and knowledge sharing in ESG integration, promote the inclusion of ESG investments in relevant Chinese financial regulatory provisions, and improve the performance of Chinese enterprises in ESG investments.
In his speech, Cao Deyun introduced the many achievements from Insurance Asset Management Association of China in the field of green finance and emphasized the need for collaborative efforts between China and other countries. This is essential in promoting global ecological protection and creating industry responsibility towards fighting climate change.
At the event, Bao Jie presented the inception report which was developed with technical assistance from IIGF. The report examined the background, scope and stakeholders engagement of ESG investment of insurance funds in China. It encompassed preliminary research on theoretical foundations, relevant policies for ESG investments in China, and the current status of ESG investments in Chinese insurance funds. The report aimed to strengthen capacity building and knowledge sharing for ESG integration and contribute to achieving Sustainable Development Goal 13, “Climate Action,” by 2030.
The event was followed by a panel discussion where numerous experts shared their experiences and future developments they are ready to contribute such as:
- Shi Yichen stated that he anticipates that this initiative would significantly advance ESG investing in the Chinese insurance asset management sector and offer a framework for global markets;
- Wang Zhongkun described the scope of insurance asset management as well as the ESG evaluation approach that China Life Asset Management Co. is now using;
- Ren Jianchang discussed the development of TaiKang Asset Management Co.’s ESG investment work and stated that this project could take advantage of opportunities for green investment development;
- Zhang Jia addressed the difficulties encountered while putting ESG investment principles into practice at Ernst & Young (China) Advisory and the most recent developments in this area of work;
- Wang Yao, General Director of IIGF, expressed her hope that this project would harness the professional guidance from the China Banking and Insurance Regulatory Commission and the Insurance Asset Management Association of China, as well as the international expertise of the Asian Development Bank’s experts. She emphasized the need to identify the key points in promoting ESG investment and push forward the research.
While ESG is still in its early stages in China, the IIGF team will continue collaborating with experts and conducting research, supported by the Asian Development Bank. This collaboration will involve industry surveys, literature analysis, and policy interpretation. It aligns with the shared vision of IIGF, ADB, CBIRC and IAMAC to accelerate ESG regulations and provide recommendations for formulating and improving ESG investment guidelines for China’s insurance funds.