LUFAX HOLDING LTD 2023 Environmental, Social and Governance Report
HKEX Stock Code: 6623
NYSE Stock Ticker: LU
2023
Environmental,
Social and
Governance report
About This Report | 1 |
2 | |
3 | |
4 | |
Sustainable Development Strategy | 6 |
Appendix I | 63 |
Appendix II | 64 |
Appendix III | 68 |
Contents
More Warming Finance
Deeply Engaging in Inclusive Finance | 12 |
Fulfilling Social Responsibilities | 15 |
More Efficient Finance
Promoting Technology Empowerment | 23 |
Optimizing Customer Services | 25 |
Building a Quality Team | 28 |
2023 Environmental, Social and Governance Report
More Reliable Finance
Consolidating Governance Foundation | 35 |
Redoubling Efforts to Protect Financial | 45 |
Consumers | |
Protecting Information Security | 50 |
More Sustainable Finance
Co-establishing a Green Future | 57 |
Jointly Building the Industry Ecosystem | 61 |
2023 Environmental, Social and Governance Report | 1 |
Lufax Holding Ltd. (hereinafter "Lufax", "Lufax Holding", "the Company" or "We"), is delighted to present its 2023 Environmental, Social and Governance Report (hereinafter "the Report") to demonstrate the philosophy, management, actions and achievements of the Company and all its subsidiaries (hereinafter "the Group") in Environmental, Social and Governance (hereinafter "ESG") aspects.
Reporting Period
This Report is an annual report, which covers the period from 1 January 2023 to 31 December 2023 (hereinafter "the Reporting Period"). To make the Report more comparable and comprehensive, we include partial information before 2023 or at the date of publication.
Reporting Scope
This Report primarily discusses Lufax Holding and covers all Lufax subsidiaries and branches. The environmental and social key performance indicators (hereinafter "KPIs") disclosed in this Report apply to our headquarters, subsidiaries, and all branches. If otherwise specified, please refer to the relevant instructions.
Reporting
Principles
Materiality
Quantitative
Balance
Consistency
Definition
The threshold at which ESG issues determined by the Board are sufficiently important to investors and other stakeholders that they should be reported.
KPIs in respect of historical data need to be measurable. The issuer should set targets to reduce a particular impact. In this way the effectiveness of ESG policies and management systems can be evaluated and validated. Quantitative information should be accompanied by a narrative, explaining its purpose, impacts, and giving comparative data where appropriate.
The ESG Report should provide an unbiased picture of the issuer's performance. The Report should avoid selections, omissions, or presentation formats that may inappropriately influence a decision or judgment by the report reader.
The issuer should use consistent methodologies to allow for meaningful comparisons of ESG data over time.
The Company's Response
The Company has identified sustainability issues crucial to its development through ongoing stakeholder communication.
The Company records and discloses quantitative ESG performance indicators on an ongoing basis, and interprets the data disclosed in this Report.
This Report has truly and accurately reflected the Company's management performance in the ESG field.
Unless otherwise stated, the Company ensures that the reporting scope and methods are generally consistent each year.
Reporting Standards
This Report is prepared in accordance with the Environmental, Social and Governance Reporting Guide set out in Appendix C2 to the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited (hereinafter "HKEX"), with reference to the United Nations' Sustainable Development Goals (hereinafter "SDGs"). The Report follows the reporting principles of "materiality", "quantitative", "balance" and "consistency" to ensure the authenticity and accuracy of the content, fully reflecting the current status of the Company's management and achievements in ESG aspects and providing readers with valuable information.
Information Source and Reliability Statement
All the information, data and cases mentioned in this Report are collected from the Company's statistical reports and relevant documents. The Company guarantees that this Report is free from any false records or misleading statements, and is responsible for the authenticity, accuracy and completeness of this Report. All amounts in this Report are stated in RMB unless otherwise specified.
Reporting Language
This Report is published in Chinese (Simplified and Traditional) and English. Should there be any discrepancies between the two versions, the Chinese one (Simplified) shall prevail.
Reporting Statement
The business plans, development strategies and other forward-looking descriptions involved in this Report do not constitute the Company's substantive commitment to investors.
Access to This Report
This Report and other information related to the Company's sustainable development activities are available in the "Investor Relations" section in the Company's website: https://ir.lufaxholding.com/home/default.aspx
Sustainable Development Strategy
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Appendix
Lufax Holding is a leading company which mainly provides financial services to empower small and micro business owners (SBOs) in China, whose business covers retail credit and enablement, consumer finance and other financial services. By integrating our financial expertise with advanced technology and leveraging online and offline resources, we provide SBOs with access to financial products and services and empower institutional partners to efficiently reach and serve SBOs to support the inclusive development of small businesses and help improve their competitiveness and sustainability. As for retail credit services, Lufax relies on its technology-empowered retail credit service platform, Ping An Puhui, and is committed to providing end-to- end lending services for SBOs and individual business households with innovative technology and improved risk control. In the consumer finance sector, we work with funding partners and third-party credit enhancement providers to provide comprehensive consumer financial services to residents to meet their consumer credit needs and enhance the financial accessibility to small and micro businesses.
2023 Environmental, Social and Governance Report | 2 |
The total outstanding balance of loans managed by Lufax Holding reached RMB 315.4 billion
With approximately 20.94 million borrowers in total
The amount of unsecured loans reached RMB 207.9 billion
The amount of secured loans reached RMB 70.4 billion
The amount of consumer finance loans reached RMB 37.1 billion
2023 Environmental, Social and Governance Report | 3 |
Sustainable Development Strategy
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Appendix
It is my honor to once again share with all stakeholders the annual Environmental, Social, and Governance Report of Lufax Holding Ltd.As we look back on the year 2023, the macro environment remains fraught with uncertainty, posing emerging challenges to global sustainable development and economic growth. However, we stay true to our original aspiration and steadfastly uphold our mission to provide accessible and convenient financial services to small businesses, individual businesses, and new urban residents, among other groups. Aligned with our ESG strategy of "Four More Finance"1, we are committed to deeply integrating the ESG principles into corporate operations. Our goal is to achieve enduring, balanced and high-quality sustainable growth while pursuing economic benefits and fulfilling our environmental and social responsibilities.
1. More warming finance, more efficient finance, more reliable finance and more sustainable finance.
Upholding our commitment to serving people with heartfelt financial services
As a leading financial service provider empowering small business owners in China, we possess a profound understanding of the vital role they play in ensuring stable national economy and social development as a significant component of the real economy. Our mission is to foster small business competitiveness and sustainability by continuously developing products and services tailored to their unique characteristics and development needs. With the help of innovative service models, we channel financial resources to small businesses. We consistently prioritize the well- being of people, wholeheartedly embrace our social responsibilities, and fully leverage our professional expertise and background to integrate finance and charity. This synergy gives rise to our distinctive "Finance Plus" approach to charity, which concretely embodies our dedication to providing heartfelt financial services for more people.
Leveraging technology to create an efficient financial engine The landscape of finance is undergoing a profound transformation driven by technological innovation and digitalization. Powered by core technologies such as big data, artificial intelligence, blockchain and cloud computing, our advanced technological infrastructure is in place to accelerate the efficiency of financial services for the real economy. We are fully embracing the digital revolution in customer services, employing a range of intelligent solutions to accurately anticipate customer needs and dynamically track changes in customer sentiments in real time. Our goal is to provide customers with worry-freefinancial services that are both efficient in time and cost. Furthermore, we recognize that talents are our most valuable assets. We have established a robust talent evaluation and development system, fostered an inclusive culture, offered competitive employee benefits, and implemented a diverse range of support initiatives. By cultivating a sense of belonging and unlocking the full potential of our employees, we are cultivating a strong talent pool that drives our high-qualityand efficient development.
Enhancing corporate governance to establish a more reliable financial system
Our sustainable development relies on a well-regulated governance mechanism. We have put in place a clear and effective corporate governance framework that ensures a balance of power and incorporates ESG principles into our comprehensive risk
management system, thereby enhancing our resilience against risks. Guided by our commitment to integrity and fairness, we actively oppose any behaviors that violate business ethics while constantly reinforcing a culture of integrity. Moreover, we adhere to the principle of "Finance for people" by prioritizing consumers. In our governance strategy, we focus on safeguarding consumer rights, privacy and security, thus protecting their legitimate interests such as property security, information rights, and fair trading rights and fulfilling our obligations in data security. By doing so, we actively contribute to fostering a stable, secure, fair, and just financial market environment.
Fostering green development to build a sustainable financial ecosystem
Promoting green and sustainable development has become a shared responsibility of humanity worldwide. We are actively implementing the nationwide "dual carbon" strategy, and taking proactive actions to address the challenges and opportunities brought about by climate change. By championing initiatives such as promoting green offices, setting environmental targets, and enhancing energy management, we have integrated the concept of green development into all aspects of our business operations. We firmly uphold our commitment to biodiversity conservation. We utilize our resources to actively engage in relevant practices and initiatives that safeguard biodiversity, effectively contributing to biodiversity conservation. Additionally, we are dedicated to assisting our suppliers in jointly building a responsible management system, with a focus on building a sustainable value chain, and engage with partners from all sectors to foster a sustainable development ecosystem.
Looking ahead to 2024, we will forge ahead and seize new opportunities presented by the times and the market. Our mission is to support the growth of the real economy. Driven by technological innovation and supported by a robust governance framework and a comprehensive risk management mechanism, we will prioritize green operation and sustainable development. Together with all our colleagues, we will embrace a greener future that is more inclusive and more open.
Chairman and Chief Executive Officer of Lufax Holding Mr. Yong Suk CHO
Sustainable Development Strategy
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Appendix
We provided loans to 6,841,751SBOs, with the total loan amounts reaching RMB 315.4 billion.
Consumer finance has covered major regions across the country, providing consumer finance services to over 5.5 million customers, with nearly 92% of users in third tier cities and below
We cumulatively served more than 310,000 agricultural small and micro businesses, with the loan amounts exceeding RMB 60 billion.
Upgrade the AI intelligent loan solution "Xingyun", reduce 50% of loan application process breakpoints, and reduce average time by 31%, greatly improving the borrowing experience and efficiency of users.
We served 7.84 million customers and actively answered their inquiries, customer complaint rate was 0.0009%, with a response rate of 100%
In total, 6,136 micro-courses and 7,535 training sessions were launched on the Zhiniao platform, involving 1.97 million learners and 195,500learning hours.
2023 Environmental, Social and Governance Report | 4 |
The "Bugle Call" campaign of combating corruption and upholding integrity was carried out, including 29 kick-off meetings, 120 policy publicity sessions, 28 notifications of typical cases, and 20 learning courses on the Zhiniao platform.
A total of 157 tweets were posted on the official Weibo and the Lu Hui Rong APP to promote consumer protection publicity and education, with 375 offline consumer publicity and education activities conducted.
The information security management system involved in our businesses are accredited by ISO 27001: 2013 information security management system certification, with 100% coverage.
Compared to the same period last year, electricity consumption was reduced by 35%, water consumption by 17%, paper consumption by 28% and greenhouse gas (GHG) emissions by 31%
The "Ping An Guardian Action -National Parks" program has achieved its goals of protecting 1,000 species of animals and plants, guarding 10,000 square kilometers of land, transplanting 50,000 seedlings, restoring over 604 mu of panda habitat and training over 50,000champions in rural green development.
100% of our partners signed the Integrity Commitment, and 100% of our suppliers completed on-site assessments and annual evaluations.
2023 Environmental, Social and Governance Report | 5 |
More Warming Finance
More Efficient Finance
More Reliable Finance
More Sustainable Finance
Xinhuanet | China Banking and | 2023 "Excellent | Stockstar |
The 9th Financial Corporate | Insurance News | Value List" | ESG New |
Golden Promise | ESG Practice of the | ||
Social Responsibility Forum - | Benchmarking | ||
Excellent Social | Award | Year | Enterprise Award |
Responsibility Practices |
Stockstar
Listed Company of the Year
for Social Responsibility
Xinhua Finance
JinlanCup - Excellent ESG
Responsibility Practices
Appendix
National Business Daily | CAILIANPRESS.COM | Securities Daily | The 10th Financial Corporate | China Times |
Golden Tripod Award - Listed Company of | ESG Practice Pioneer | 2023 Best ESG Practices | Social Responsibility Forum | Golden Cicada Award - ESG |
Excellent Practice for "Serving | ||||
the Year for Social Responsibility, Annual | Award | Excellent Enterprise Award | ||
Award for Contribution to Serving the Real | the Real Economy" | |||
Economy |
2023 Environmental, Social and Governance Report
Sustainable Development Strategy
2023 Environmental, Social and Governance Report | 7 |
More Warming Finance
More Efficient Finance
More Reliable
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More Sustainable Finance
Appendix
Lufax Holding attaches great importance to the sustainable development of the Company and the fulfilment of corporate social responsibility. We integrate the ESG principles into our corporate strategy and continuously optimize and improve the ESG system to achieve a harmonious and win-win outcome between the Company's development and the broader environment and society.
Oversight of ESG Issues
Lufax Holding is committed to long-term,high-quality and sustainable development in order to continuously create value for all stakeholders. The Board of Directors, as the highest decision-making body for ESG management, is fully responsible for overseeing the Company's overall ESG performance and developing ESG management policies and strategies to ensure that appropriate and effective management policies are in place. To effectively supervise and implement consumer protection and ESG related matters of the Group, Lufax Holding has established the Consumer Protection and ESG Committee at the Board level, under which the executive committee of Lufax Holding consists of the Consumer Protection Executive Committee and the Reporting and ESG Executive Committee. The Reporting and ESG Executive Committee is responsible for executing specific ESG targets, formulating management policies, evaluating ESG performance, identifying ESG issues that are significant to business operations and stakeholders, and regularly updating the Board of Directors on the status of ESG management and associated outcomes. Under the Reporting and ESG Executive Committee, each subsidiary has established its own Reporting and ESG Affairs Committee and authorizes the Reporting and ESG Executive Group, composed of representatives from various functional departments of the subsidiaries, to coordinate and implement specific ESG tasks.
Board of
Directors
Level
Executive
Committee
Level
Executive Level
Board of Directors
Consumer Protection and ESG Committee at the Board level
Consumer Protection Executive Committee | Reporting and ESG Executive Committee | ||||||||||||||||||||||||
Each subsidiary establishes Consumer | Each subsidiary establishes Reporting and | ||||||||||||||||||||||||
Protection Affairs Committee | ESG Affairs Committee | ||||||||||||||||||||||||
Authorize | Authorize | ||||||||||||||||||||||||
Consumer Protection Executive Group | Reporting and ESG Executive Group | ||||||||||||||||||||||||
(Representatives of each functional | |||||||||||||||||||||||||
(Representatives of each working group) | department) | ||||||||||||||||||||||||
ExaminationManagementGroup | ReportingGroup | ComplaintsManagementGroup | EmergencyGroup | AppraisalManagementGroup | Publicity andEducationGroup | BoardOffice | BrandPublicityDepartment | HumanResourcesDepartment | FinanceDepartment | …… | OtherFunctionalDepartments | ||||||||||||||
ESG Governance Framework of Lufax Holding
2023 Environmental, Social and Governance Report | 8 |
More Warming Finance
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Appendix
ESG Management Approach and Strategy
Based on global ESG development trends and changes in domestic and international macroeconomic conditions, stakeholder communication results and our strategic development plans, we promptly optimize and adjust our ESG management policies, strategies and internal management systems to ensure more scientific, systematic and standardized ESG management and provide a policy foundation for the Company's sustainable development practices. In 2023, we refined our ESG policy statement system, and released six policies to the public, including the Code of Business Conduct, the Collection Policy Statement and the Statement on Employee Rights, among others. This improved communication with stakeholders and demonstrated our commitment to ESG management. To effectively identify, manage and control ESG- related risks, and to ensure that our ESG governance meets the requirements and expectations of all stakeholders, we have incorporated ESG indicators into the performance appraisal system of senior executives, directly linking ESG governance with their remunerations.
Policy Statements on ESG
Code of Business Conduct | Code of Business Conduct |
for Employees | |
Statement on Employee | Collection Policy |
Rights | Statement |
Policy Statement on | Policy Statement on |
Information Security | |
Management | Privacy Protection |
Review of ESG-Related Goals
The Board of Directors, as the highest decision- making body for ESG management, is fully responsible for formulating specific ESG strategies and objectives, regularly reviewing ESG progress towards objectives, and providing direction and suggestions for improvement. In addition, to continuously enhance the appropriateness and effectiveness of ESG management policies and strategies, the Board also participates in assessing, prioritizing and managing important ESG issues, and reviews the results of materiality assessments and the ranking of various issues, so as to clarify the focus of ESG risk management. This will enable the Company to maintain a sustained and specific focus on relevant issues in future ESG management efforts in response to the concerns of various stakeholders.
Review and Approval of ESG Reports
The Report provides comprehensive disclosure of Lufax Holding's management and progress in ESG- related work. It was reviewed and approved by the Board of Directors in April, 2024.
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Disclaimer
Lufax Holding Ltd. published this content on 24 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 April 2024 05:53:07 UTC.
