Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Risk Management
• Compliance
• Green Finance
• Inclusive Finance
• Customer Rights
• Employee Well-being
• Community Engagement
• Rural Revitalization

Environmental Achievements

• Reduced energy consumption of daily lighting at the head office by 16% year-on-year.
• Green credit balance of RMB 22,696 million, an increase of RMB 5,690 million or 33.46% over the end of the previous year, accounting for 7.28% of the total credit balance.
• Jiangxi Financial Leasing invested RMB 868 million in green leasing, accounting for 32.90% of various leasing businesses.

Social Achievements

• Inclusive small and micro enterprise loan balance of RMB 35.387 billion, up RMB 11.876 billion or 50.51% from the end of the previous year. 30,855 loan users, up 5,804 from the end of the previous year.
• Balance of agriculture-related loans amounted to RMB 48,425 million, representing an increase of 42.15% as compared to the end of the previous year, serving 11,430 agriculture-related customers.
• Implemented preferential interest rates and waived fees for inclusive small and micro enterprises.
• Launched online versions of “Guaranteed Loans for Business Start-Ups” and “Discounted and Convenient Loan” to support innovation and entrepreneurship.
• Launched a low-carbon lifestyle-themed credit card.

Governance Achievements

• Improved internal control compliance management and case prevention and control capabilities.
• Formulated and implemented the Implementation Plan for Compliance Management System and Mechanism Optimization and the Internal Control Construction Plan.
• Conducted anti-corruption training for all Directors, Supervisors, and senior management.
• Revised seven internal control systems for anti-money laundering.

Climate Goals & Targets

Environmental Challenges

• Potential impact of climate change on the Bank, including physical and transition risks.
• Difficulties faced by small and micro enterprises in accessing loans due to the epidemic.

Mitigation Strategies

• Built a climate-related risk management system.
• Opened a “Green Channel” for enterprises in business of fighting against the epidemic and provided credit loans to help enterprises tide over difficulties.
• Implemented policies such as deferred repayment of principal and interest to support enterprises.

Supply Chain Management

Supplier Audits: 144 suppliers cooperated with the Bank during the Reporting Period out of 472 potential suppliers.

Responsible Procurement

• Strict management requirements for suppliers, including good business reputation, sound financial and accounting system, and no record of major violations.
• Supplier evaluation standards combining contract performance with regular evaluation.
• Requirement for ISO14001 certification for product suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Acute and chronic risks

Transition Risks

• Policy and legal risk, technology risk, market risk, and reputation risk

Reporting Standards

Frameworks Used: GRI, SEHK ESG Reporting Guide

Third-party Assurance: CECEP (HK) Advisory Company Limited

Sustainable Products & Innovation

• Running Loan, Super Mortgage Loan, Tobacco Business Loan, Micro Enterprise Loan, Green + Inclusive financial products

Awards & Recognition

• 2022 China Digital Finance Golden Award – Best Smart Marketing Award for Mobile Banking
• 2022 Outstanding Contribution Award for Fintech Empowerment Business Innovation in Financial Industry (Rural Revitalization)

Environmental Metrics

ESG Focus Areas

• Governance
• Finance
• Social
• Sustainable Development
• Environment

Environmental Achievements

• Carbon dioxide emission reductions by unspecified percentage; Green credit projects saved unspecified tons of standard coal; Green credit balance reached RMB 20.3 billion, a year-on-year increase of 20.0%; Green loans resulted in a saving of 20,300 tons of standard coal

Social Achievements

• Launched Jiangyin P&W mobile operation platform to improve operational efficiency; Established "Soul Station" initiative to address employee mental health concerns; Organized 1,000+ volunteer activities, serving over 10,000 individuals; Completed the inauguration of 100 "Jiangyin Love the Elderly" Community Activity Centers and launched more than 100 thematic activities

Governance Achievements

• Revised two systems including the "Board of Directors Related Transaction Control Committee Work Rules"; Established three systems including the "Code of Professional Ethics for Directors and Senior Management Personnel"; Developed the "Interim Measures for 'Grey List' Shareholder Management" and "Major Shareholder Commitment Management Methods"; Implemented the risk management system optimization plan, perfecting the comprehensive risk management system

Climate Goals & Targets

Environmental Challenges

• Adapting to evolving national and local regulations promoting green, low-carbon, and circular economic development; Inadequate assessment of borrowers' environmental compliance; Lack of sufficient knowledge of green technology transformations among bank personnel; Failure to promptly master and deploy leading information technologies; Negative impact on climate or environment leading to reputational risks; Increased frequency and severity of extreme weather events; Global warming causing sea level rise and changes in precipitation patterns

Mitigation Strategies

• Strategically prioritizing green finance, establishing a top-down governance framework; Rigorously researching laws and regulations related to climate change and green finance; Participating in training on green finance and carbon finance; Advancing digital transformation by increasing investment in information technology; Monitoring and providing early warnings for reputation risks; Monitoring weather changes and preparing contingency plans; Considering climate conditions when selecting locations for facilities

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• The Procurement Management Measures specify the scope, mode and procedure of centralized procurement

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of extreme weather events such as torrential rain, floods, strong winds, and droughts; Global warming causing sea level rise and changes in precipitation patterns

Transition Risks

• Changes in consumer behavior; Negative media coverage related to support for projects or activities with adverse climate impacts; Failure to meet expectations for climate response performance in the capital markets; Failure to adjust credit structure in response to changes in energy structure

Opportunities

• Promoting energy-saving and emission-reduction technologies to reduce operating costs; Leveraging support from the government and regulatory bodies to develop green finance-related businesses; Exploring carbon finance, expanding carbon collateral and carbon credit financing services; Meeting the diversified and personalized green financing needs of industrial and agricultural customers

Reporting Standards

Frameworks Used: The Stock Exchange of Hong Kong Limited’s Environmental, Social and Governance Reporting Guidelines, Global Reporting Initiative (GRI)’s Sustainable Reporting standards

Certifications: Null

Third-party Assurance: Hong Kong Quality Assurance Agency (HKQAA)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green credit products, green leasing products, carbon finance products, inclusive finance products

Awards & Recognition

• Ranked 130th in "2023 Top 1000 World Banks ranking"; Ranked 20th among commercial banks in the "2023 China Banking Top 1000 List"; Ranked 1st among City Commercial Banks in the Overall Evaluation 2023 by the GYROSCOPE Evaluation System of China Banking Association