New China Life Insurance: Governance Weighs on the ESG Progress

4.96
28 ratings

New China Life Insurance is a provider of life insurance services and products such as personal life insurance, group life insurance and wealth management. An analysis of the company's environmental, social, and governance policies are as follows:


Environment


From an environmental perspective, the company scores reasonably, outperforming on the Emissions Score front, but underperforming on the Environmental Innovation Score front.


For instance, it has implemented a resource reduction policy, which compares to the presence of a clear policy in the prior year. The company has not implemented a water efficiency policy, with an energy efficiency policy not implemented as well. This compares to the lack of a similar policy in the prior year.


Environmental policy areas where the company is currently lacking include Resource Reduction Targets, while areas the company has addressed include Environmental Supply Chain Policy and Environment Management Training.


The company has also not implemented renewable energy use, which compares to the lack of a clear policy in the prior year. The company has also notably implemented green buildings as well, which compares to the lack of a defined policy in this regard in the prior year.


In terms of its carbon footprint, the company's Estimated CO2 Equivalents Emission Total stands at 53,174 in the latest fiscal year, which compares to 51,761 in the prior year and 66,378 in the year before based on a Median CO2 Estimation Method.


Social


From a social standpoint, the company scores favorably, particularly outperforming on the Product Responsibility Score front, but underperforming on the Community Score front.


For instance, it has implemented a health and safety policy, which compares to the presence of a clear policy in the prior year. The company has also implemented an Employee Health & Safety Policy, with a Supply Chain Health & Safety Policy not implemented as well. This compares to the lack of a similar policy in the prior year.


The company has produced a decline in Net Employment Creation. The Number of Employees from CSR reporting totals 38,542, relative to 41,044 in the prior year.


As of the latest fiscal year, there have not been Management Departures, while the prior year saw no departures. Meanwhile, the company experienced no strikes this year, which compares to no strikes in the prior year.


Governance


From a governance standpoint, the company scores unfavorably, particularly underperforming on the Management Score front.


The company does not have a Corporate Governance Board Committee, does not have a Nomination Board Committee, has an Audit Board Committee, and does not have a Compensation Board Committee. The company does have a Board Structure Policy and does have a Policy Board Independence in place. The Board has held ten meetings in the last fiscal year, which compares to 11 in the prior year. The Board size currently stands at 15 members based on the latest annual/ESG report.


The Board has an average tenure of 7.25 years, which compares to 6.55 in the prior year. Board diversity stands at 6.7% for cultural diversity and 6.7% for gender diversity.


The company has implemented a Policy Executive Compensation Performance and has not implemented a Policy Executive Compensation ESG Performance. The company has not implemented a Policy Executive Retention, and has not implemented a Succession Plan, and has not implemented an External Consultants policy.


The company has implemented CEO-Chairman Separation and does have its CEO as a Board member. Its chairman is an ex-CEO. Board member term duration stands at three years. In total, senior executives' compensation rose in the latest fiscal year. Notably, the CEO compensation is not linked to total shareholder return. Meanwhile, executive compensation is also not linked to long-term objectives. Sustainability compensation incentives have not been implemented. Thus far, there have not been any executive compensation controversies.


Sources:


https://www.csrhub.com/CSR_and_sustainability_information/New-China-Life-Insurance-Co-Ltd


https://www.newchinalife.com/sen/info/50086

Related Tags
Topics Entities
Business FinanceBusinessCorporate GovernanceInformation GovernanceManagementRecords ManagementInsurancePolicyUnited States Environmental Protection AgencyExecutive Compensation