#China #Beijing #Fintech #ESG #Yiren Digital

Yiren Digital Achieves Global Recognition in ESG

Yiren Digital Ltd. (NYSE: YRD), a prominent fintech firm, has recently been celebrated for its exceptional performance in the Environmental, Social, and Governance (ESG) criteria. The company has been ranked within the top 10% of its peers in the global "Diversified Financial Services and Capital Markets" category according to SP Global’s latest assessment. This achievement reflects Yiren Digital's strong commitment to sustainability and responsible business practices in the fintech sector.

A Commitment to Sustainability in Fintech

Yiren Digital’s focus on integrating technology and sustainability is evident through its strategic application of artificial intelligence (AI) aimed at enhancing its ESG initiatives. The company's cutting-edge AI solutions have played a pivotal role in improving risk management, client service, and expanding financial access, while also diminishing its carbon footprint.

Among the key highlights, Yiren Digital uses its proprietary risk management system, known as "Hawkeye," which successfully intercepted over 16,800 fraudulent loan applications last year, helping prevent potential losses of around RMB180 million. The company has implemented 37 rigorous security tests to bolster its information security protocols, thereby mitigating millions of malicious cyberattacks in 2024.

In addition, regulatory approval for its innovative "Zhiyu" model has facilitated automation in customer services and contract assessments. Meanwhile, their platforms, such as the "LingShu Intelligent Marketing Platform" and the "Fengchao Intelligent Voice Interaction Platform," have been recognized as exemplary cases in the industry for elevating service efficiency.

Advancing Financial Inclusion

In 2024, Yiren Digital made significant strides in promoting financial accessibility for underrepresented groups. It facilitated loans amounting to RMB53.6 billion, benefiting approximately 4.2 million borrowers, including:

• - RMB14.8 billion allocated to support 791,400 small business owners.
• - RMB2.8 billion in loans directed towards 172,700 female entrepreneurs, an initiative aimed at fostering gender equality in business sectors.
• - Insurance offerings catering specifically to gig economy workers, which delivered over RMB98 billion in coverage.

This inclusive financing model underscores Yiren Digital's mission to empower diverse demographics and enhance economic participation from all social strata.

Progressing Towards Environmental Targets

Yiren Digital is also committed to meeting China's national climate objectives, targeting a carbon peak by 2030 and achieving net-zero emissions by 2060. The company has noted a commendable 5% reduction in total greenhouse gas emissions year-over-year. Notably, over 90% of the electrical equipment in its Beijing operations complies with energy-saving standards, while its data centers have achieved a power usage effectiveness (PUE) of 1.25, indicative of significant energy efficiency improvements compared to the previous year.

Yiren Digital plays an active role in backing green industries, having provided financial support amounting to:

• - RMB0.69 million to 22 new energy businesses.
• - RMB88.48 million to 3,156 energy-efficient enterprises.
• - RMB9.96 million to 368 recycling companies.
• - RMB16.46 million to 593 environmental monitoring initiatives.

The company is committed to declining loan requests from businesses that have been flagged for environmental violations.

Acknowledgment of ESG Achievements

This recent SP Global rating adds to Yiren Digital’s accolades for its commitment to ESG principles, following previously earned honors like the People's Daily Social Responsibility Award and its inclusion in the "2024 Top 100 Global Zhejiang Business ESG Classic Cases." Since its listing on the NYSE in 2015, Yiren Digital has consistently woven AI innovation into its core strategies to promote sustainable practices.

Moving forward, Yiren Digital aspires to strengthen the intersection of AI and ESG, fostering a future that is more intelligent, inclusive, and sustainable for all.

About Yiren Digital

Yiren Digital Ltd. is at the forefront of fintech innovation, specializing in digital consumer lending, insurance, and financial technology across China and Southeast Asia. By harnessing advanced AI and other emergent technologies, Yiren Digital seeks to provide enhanced customer experiences, optimize financial operations, and drive broader financial inclusivity. With its recently launched Magicube Agent Platform and a strategic move into the digital assets arena, Yiren Digital is establishing itself as a leader in AI-powered and blockchain-driven global fintech.