Lufax publishes its first ESG report highlighting its commitment to inclusive finance
SHANGHAI, September 23, 2021 / PRNewswire / – Lufax Holding Ltd (âLufaxâ or the âCompanyâ) (NYSE: LU), a leading technology-based personal financial services platform in China, today published its first environmental, social and governance (ESG) report. The report highlights the company’s long-term commitment to inclusive finance, improving access to financial services for owners of small and microenterprises, reducing rural poverty, supporting the real economy and other societal benefits thanks to FinTech innovations.
The report provides an overview of the company’s ESG performance for 2020 and offers a comprehensive overview of its commitment to making retail borrowing and wealth management easier, safer and more efficient. Among the many areas covered in the report, a few to highlight include achievements in corporate governance, providing inclusive finance to small and micro enterprises, strengthening consumer protection, contributing to reduction poverty and rural revitalization, and the promotion of green finance.
âIn this report, we showcase our sustainability achievements and express our determination to develop long-term value,â said Guangheng Ji, president of Lufax Holding. âFor the future, Lufax Holding will continue to stay ahead and seize emerging opportunities. With positive financial services as a starting point, we will innovate and move forward. We will strengthen inclusive finance, support the wider economy, shoulder our corporate responsibilities and create our own path to sustainability. “
âOur goal is to become a benchmark of best practice in compliance and governance among Chinese companies listed overseas,â Ji commented.
Among the many focus areas discussed in the ESG report, the highlights of the past year are:
Offer inclusive financing to small and micro-enterprises
Small and micro-enterprises make a significant contribution to economic and social development. However, they generally face funding challenges in their development process, especially in 2020, as the COVID-19 pandemic has posed unprecedented challenges across the world. Making retail borrowing easier, safer and more efficient is at the very heart of Lufax’s mission. As part of the company’s commitment to provide convenient financial services to owners of small and microenterprises, in 2020, Lufax’s retail credit facilitation platform subsidiary, Ping An Puhui (“Puhui”), set up a special lending channel during the pandemic to provide affected businesses and individuals with loans for small and micro businesses. This initiative alleviated problems caused by capital shortages and limited lending channels due to the pandemic.
In 2020, Lufax has helped over 1.24 million small and micro businesses and provided inclusive funding to 2.76 million people. By the end of the year, Lufax’s total all-inclusive credit reached 564.961 billion RMB, with its balance of inclusive credits reaching 545.149 billion RMB.
Support public welfare and revitalize the rural economy
As highlighted in the ESG report, Lufax is committed to reducing poverty by offering products and services tailored to empower vulnerable groups for long-term rural revitalization. Lufax Puhui’s subsidiary launched innovative projects to improve access to finance for vulnerable groups in less developed regions. Initiatives to improve rural women’s employment and entrepreneurship include a program offering preferential agricultural loans to women entrepreneurs in less developed regions. Puhui also founded a special “Mom’s Sewing” program that provides sewing machines, production materials, and social ties to help local women in Liangshan Prefecture monetize traditional crafts. Puhui has also focused on rural revitalization in its Preferential Agricultural Lending Project which provides diversified, affordable and convenient lending services to rural entrepreneurs. Additionally, Puhui is promoting rural revitalization through its âNew Farmers for Poverty Reductionâ project, which targets talented young farmers who wish to return to their hometowns and build there by setting up businesses. Under this program, Puhui offers emerging agricultural technologies to support sustainable development. These projects have breathed new life into rural economic and industrial development in poor areas and are supporting rural revitalization.
At present, Puhui has agricultural and rural initiatives in 13 provinces and cities, covering planting, animal husbandry, forestry, fishing and other specialties. By the end of 2020, Puhui had provided aid funds worth more than 123 million RMB to nearly 300 rural cooperatives and entrepreneurs, directly supporting more than 800 households in financial difficulty.
In addition, Lufax and the China Foundation for Poverty Reduction (CFPA) jointly launched “Big Country, Small Towns”, a poverty reduction plan designed to raise the level of industrial development of villages and towns in order to increase the level of industrial development. ” improve local public welfare and income levels. By combining the client resource advantages gathered by Lufax’s online wealth management platform with the intelligent public financial system, the company has created a series of measures to reduce poverty, improve local career prospects for younger generations and improve environmental protection.
Alongside local industries, Lufax has identified a way for people to lift themselves out of poverty and gain wealth by developing an âIndustry + Ecologyâ model of sustainable development that lays a solid foundation for poverty reduction. By focusing on initiatives that provide affordable funding to rural communities instead of donations, Lufax invests in rural development and long-term sustainability.
Develop green finance to support carbon neutrality
To support national and international carbon neutrality goals, Lufax has also set up a green finance office to conduct its activities in a greener manner, support the development of green finance and create a low carbon model for financial institutions. As highlighted in the ESG report, Lufax will continue to support the development of green finance by improving access to green financial products and services as well as by introducing more green funds and equity products like equity related products. ESG offered in conjunction with âLu Funds. âOnline financial services like Lufax’s ‘Wealth Cloud’ may offer a lower carbon future for financial services. With its paperless system, ‘Wealth Cloud’ has already saved 64,884 tonnes of paper compared to traditional systems By continuing to replace traditional offline marketing approaches with environmentally friendly cloud-based alternatives, Lufax hopes to continue its quest for green finance and operations.
Improving the quality of financial services through technology
Lufax has built up a thriving and professional team providing services to small and micro business owners and individuals with financing needs across the country by combining online and offline services. In addition, the Lufax service team also helps clients improve their financial literacy in key areas such as financing, planning, financial product compliance, and preventing investment pitfalls.
Lufax has leveraged its Artificial Intelligence (AI) technologies to improve the customer experience and protect consumers’ rights and interests with an AI-powered customer service platform. Customers can submit their inquiries and inquiries to AI bots and human agents by phone, online or on the mobile app. AI Customer Service provides access to financial education and 24-hour customer service and has achieved a 99.8% intelligent recognition rate and 93% customer satisfaction rate, helping to quickly resolve issues or customer requests. With the support of the AI ââcustomer service platform, Lufax customer service agents have also achieved a high level of customer satisfaction, with a response rate of 98% and an on-site settlement rate of 95%.
Lufax Holding’s ESG report is formulated in accordance with the Environmental, Social and Governance Reporting Guide of the Main Board Listing Rules of the Stock Exchange of Hong Kong Limited (“HKEx”) and the reporting standards of the Global Reporting Initiative (GRI standards). ). To learn more about Lufax’s ESG efforts and to view the full report, please visit https://ir.lufaxholding.com/files/doc_downloads/2021/2021-9-18-ESG.pdf
About Lufax Holding Ltd
Lufax Holding Ltd is one of the leading technology-based personal financial services platform in China. Lufax Holding Ltd primarily uses its customer-centric product offerings and offline to online channels to provide retail credit facilitation services to small business owners and employees in China, as well as wealth management solutions. tailored to China’s rapidly growing middle class. The Company has implemented a unique, small-cap, star-shaped business model, combining specially designed technology applications, extensive data and financial services expertise to effectively deliver the right products to the right customers. For more information, please visit www.lufaxholding.com.
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