Climate Change Data

Shanghai Rural Commercial Bank Co., Ltd.

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:43,396.69 tCO2e
Scope 1 Emissions:1,446.45 tCO2e
Scope 2 Emissions:41,950.24 tCO2e
Water Consumption:9,605 tons

ESG Focus Areas

  • Inclusive Finance
  • Green Finance
  • Rural Revitalization
  • Digital Transformation
  • Corporate Governance

Environmental Achievements

  • Signed the UN Principles for Responsible Banking (PRB), becoming the first commercial bank in Shanghai committed to observing the PRB.
  • Green credit balance reached RMB 43.567 billion, up by 120.32% year-on-year.
  • Balance of on-balance sheet green bonds reached RMB 9.034 billion, up by 150.94% year-on-year.

Social Achievements

  • Balance of loans to inclusive micro and small businesses reached RMB 64.113 billion, an increase of RMB 8.847 billion, or 16.01%, from the end of last year.
  • Launched the “Mental Home” community integrated service solution.
  • Public donations totaled RMB 21.261 million.

Governance Achievements

  • Improved corporate governance structure.
  • Strengthened internal control and compliance management.
  • Enhanced risk management.

Climate Goals & Targets

Environmental Challenges

  • Meeting the financing needs of SMEs and rural communities.
  • Managing climate-related risks.
  • Maintaining data security and privacy.
Mitigation Strategies
  • Developed innovative financial products and services.
  • Implemented climate risk management strategies.
  • Strengthened data security and privacy protection measures.

Supply Chain Management

Supplier Audits: 100%

Responsible Procurement
  • Openness, fairness and justice in centralized procurement

Climate-Related Risks & Opportunities

Physical Risks
  • High temperature and heat waves
  • Water shortages
  • Extreme cold
  • Droughts and floods

Reporting Standards

Frameworks Used: GRI Standards (2021 Version), UN Principles for Responsible Banking (PRB)

Certifications: ISO20000, ISO27001, CMMI3

Third-party Assurance: Ernst & Young Hua Ming LLP

UN Sustainable Development Goals

  • Goal 1
  • Goal 2
  • Goal 3
  • Goal 4
  • Goal 5
  • Goal 7
  • Goal 8
  • Goal 9
  • Goal 10
  • Goal 11
  • Goal 12
  • Goal 13
  • Goal 16
  • Goal 17

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

  • Green credit products
  • Green bonds
  • Inclusive finance products

Awards & Recognition

  • MSCI ESG rating of A
  • Wind ESG rating of A
  • Numerous other awards listed in the report

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:50,370.48 tCO2e/year
Scope 1 Emissions:1,878.67 tCO2e/year
Scope 2 Emissions:46,469.00 tCO2e/year
Scope 3 Emissions:2,022.81 tCO2e/year
Total Energy Consumption:8,148.17 MWh/year (purchased power)
Water Consumption:11,525 m3/year
Waste Generated:26.80 tons/year (business office paper)

ESG Focus Areas

  • Inclusive Finance
  • Fintech
  • Green Finance
  • Social Governance
  • Corporate Governance
  • Environmental Protection
  • Climate Change
  • Rural Revitalization
  • Sustainable Development

Environmental Achievements

  • Achieved carbon neutrality at Zhangjiang Science and Technology Sub-branch for three consecutive years.
  • Launched Shanghai’s first batch of “Water Conservation Benefit” businesses, resulting in significant water savings.
  • Implemented Shanghai’s first emission rights mortgage loan.
  • Successfully issued green finance bonds, investing in various green projects.
  • Yangtze Financial Leasing completed the industry’s first deal in flywheel energy storage project financing leasing.

Social Achievements

  • Launched and expanded the “Mental Home” public service project, establishing over 600 service stations.
  • Developed innovative financial products and services for new citizens, veterans, and elderly.
  • Increased loan balance for sci-tech enterprises by 30%.
  • Supported the construction of Shanghai’s first affordable rental housing project on rural collective land.
  • Completed the accreditation of 159 credit villages, 3 credit towns, and 1 credit township.

Governance Achievements

  • Established a Strategy and Sustainability Committee on the board to oversee ESG management.
  • Increased the number of female independent directors.
  • Strengthened internal control and compliance management.
  • Improved information disclosure and insider information management practices.
  • Received an A rating in MSCI’s ESG rating.

Climate Goals & Targets

Long-term Goals:
  • Developing a “long-term, professional and characteristic” model of ESG governance.
Medium-term Goals:
  • To establish a benchmark for corporate governance among small and medium-sized banks; to become the most environmentally conscious bank in the Yangtze River Delta; to create a Shanghai model for inclusive finance to empower social governance (2023-2025).
Short-term Goals:
  • To build a quality bank with stable development, a model bank for ESG management, and a pioneer bank in inclusive finance (2023-2025).

Environmental Challenges

  • Climate physical risks faced by credit debt entities (heat waves, water scarcity, etc.).
  • Transition risks related to carbon peaking and carbon neutrality goals.
  • ESG risks of credit debt entities.
Mitigation Strategies
  • Incorporated climate risks into the risk management system.
  • Conducted climate risk stress testing.
  • Introduced authoritative ESG ratings and early warning data for credit debt entities.
  • Integrated environmental and climate risk management requirements into multiple business stages.

Supply Chain Management

Supplier Audits: 100%/year

Responsible Procurement
  • Observance of the principles of openness, fairness and justice in centralized procurement.
  • Requirement for suppliers to provide green certifications.

Climate-Related Risks & Opportunities

Physical Risks
  • Heat waves
  • Water scarcity
  • Extreme cold
  • Drought
  • Floods
Transition Risks
  • Impacts on credit assets from the transition towards the carbon peaking and carbon neutrality goals.
Opportunities
  • Development of green finance products and services.

Reporting Standards

Frameworks Used: GRI Standards (2021 Version), Opinions on Strengthening the Social Responsibility of Banking Financial Institutions, Corporate Social Responsibility Guidelines for China’s Banking Financial Institutions, Self-Discipline Regulation of Listed Companies No. 1, Environmental, Social and Governance (ESG) Metrics System for Shanghai State-owned Holding Listed Companies, Principles for Responsible Banking

Certifications: ISO20000, ISO27001, TMM i3

Third-party Assurance: KPMG Hua Zhen

UN Sustainable Development Goals

  • Goal 1
  • Goal 2
  • Goal 3
  • Goal 4
  • Goal 5
  • Goal 7
  • Goal 8
  • Goal 9
  • Goal 10
  • Goal 11
  • Goal 12
  • Goal 13
  • Goal 16
  • Goal 17

The Bank aligns its operations with UN SDGs, highlighting 14 SDGs as directions for future development.

Sustainable Products & Innovation

  • Green finance products and services (green credit, green bonds, green leasing, etc.)
  • “Xinyizhilian” intelligent supply chain finance platform

Awards & Recognition

  • MSCI ESG rating of A
  • Included in the “ESG Vanguard 100 Index of State-Owned Listed Companies”
  • Shortlisted for the “Top 30 Pioneers in Finance”
  • Golden Orchid Award for Outstanding ESG Governance Cases
  • 2023 Responsible Bull Award - ESG Public Welfare Pioneer
  • 2022 Carbon Finance Practice Award
  • Best Financial Institution Award in the 2023 GF60 Green Finance Awards
  • Top Ten Reports for Social Responsibility (ESG)
  • Five-Star (Excellent) rating from the Expert Committee of China Corporate Social Responsibility Report Rating