Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility
• Green Finance
• Sustainable Development
• Environmental Protection
• Financial Inclusion
• Youth Development
• Community Investment
• Employee Wellbeing
• Governance

Environmental Achievements

• Purchased 250,000 kWh of electricity produced locally by renewable energy sources.
• Over 1.9 million customers opted to receive consolidated e-statements (a 30% increase).

Social Achievements

• Donated HK$627 million net proceeds from the sale of the “Bank of China (Hong Kong) Centenary Commemorative Banknote” to local charities.
• Sponsored more than 40 charity projects, benefiting over 3 million people.
• Launched the “BOCHK Centenary Charity Programme”.
• Supported the “Food Angel x BOC Food Rescue and Assistance Project”, adding two food rescue vehicles.
• Co-organised the “BOCHK Hackathon” with Hong Kong Science and Technology Park.
• Employee volunteer team completed over 42,000 hours of volunteer service.

Governance Achievements

• Established a Sustainability Committee under the Board of Directors.
• Maintained full compliance with all code provisions as set out in the Corporate Governance Code.
• Improved corporate governance standards and procedures to ensure transparency in information disclosure.

Climate Goals & Targets

Environmental Challenges

• Social unrest in Hong Kong in the second half of 2019, resulting in vandalism of some branches and self-service facilities.
• Economic downturn in Hong Kong due to weak external demand and domestic social unrest.

Mitigation Strategies

• Launched a variety of financial service and relief measures to help individual and corporate customers.
• Staff united to deliver high-quality financial services despite challenges.
• Donated HK$15 million to aid the fight against the novel coronavirus outbreak.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green bonds, green loans

Awards & Recognition

• Best Bank for CSR in Hong Kong (Asiamoney)
• Constituent stock of the Hang Seng Corporate Sustainability Index Series
• AA rating from MSCI ESG Research LLC
• Caring Company (Hong Kong Council of Social Service)
• Financial Services Awards of Excellence - Sustainable Corporate Social Responsibility (Hong Kong Economic Journal)

Environmental Metrics

ESG Focus Areas

• Good Governance
• Green Banking and Finance
• Employee Wellbeing
• Contributions to the Community
• Responding to the COVID-19 Pandemic
• Climate-related Risks
• Sustainable Finance
• Financial Inclusion
• Technology Innovation
• Business Development and Economic Contributions
• Responsible Business Practices

Environmental Achievements

• Total greenhouse gas emissions (Scopes 1, 2 and 3) decreased by 2.5% compared to 2018; total energy consumption reduced by 2.4%; total paper purchases decreased by 19.8% and paper purchases per capita fell by 21.6%; total hazardous waste recycling increased by 38.0%; total waste disposal decreased by 676.4 tonnes and total waste disposal per capita dropped by 71.4%
• Launched the first third-party certified corporate green time deposit scheme in Hong Kong.
• Arranged multiple green loans during the year, with the balance of green loans increasing by over 60% compared to the prior year-end.
• Served as the lead manager for green bonds and actively assisted customers in green bond issuance.

Social Achievements

• Launched five major financial relief initiatives in response to the COVID-19 pandemic.
• Donated a total of HK$15 million to local charities.
• Actively supported the HKSAR Government’s “Employment Support Scheme” and “Cash Payout Scheme”.
• Customer satisfaction with branch services steadily increased, with an overall average score of 8.83 out of 10.
• Staff turnover rate of the Group was around 7.6%, which was lower than the average level of major local banks.

Governance Achievements

• Established a Board-level Sustainability Committee.
• Consolidated CSR Policy and Environmental Policy into a new Sustainability Policy.
• Enhanced risk management mechanism by integrating climate and environmental risk factors.
• All Board members received sustainability training.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic causing economic recession, rising unemployment, and developmental difficulties.
• Climate change posing potential risks to business development.
• Long queuing times at branch teller counters.
• Customer demand for more comprehensive investment information via mobile banking.
• Customer suggestions for optimising the user interface of online banking.

Mitigation Strategies

• Launched five financial support initiatives for customers.
• Actively supported government’s anti-pandemic measures.
• Launched Smart Branch model with eZone and new smart devices.
• Launched a brand-new mobile banking service with enhanced user experience and “BOC Live” for investment updates.
• Launched the new iGTB with enhanced functions and user-friendly design.
• Actively working on building a sustainable development risk management framework.
• Planning to become a TCFD signatory (became signatory in May 2021).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supply Chain Code of Conduct Assessment Questionnaire for new suppliers.
• Sustainable Procurement Policy combining environmental and social factors with market best practices.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of green finance products and services

Reporting Standards

Frameworks Used: GRI Standards: Core option, HKEX ESG Guide, TCFD Recommendations, SASB Standards, ISO 26000:2010, UN Sustainable Development Goals

Certifications: ISO 14001, ISO 50001, ISO 27001, ISO 45001, ISO 9001

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

UN Sustainable Development Goals

• 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16

The report maps its disclosures against the UN SDGs.

Sustainable Products & Innovation

• Green time deposit, green loans, green bonds, ESG funds.

Awards & Recognition

• Best Bank for CSR in Hong Kong (Asiamoney’s 2020 Best Bank Awards)
• Excellent Sustainability CSR Award (Hong Kong Economic Journal’s Financial Services Awards of Excellence 2020)
• Top Donor of the Year Award (The Community Chest of Hong Kong)
• Benefactor of the Year Award (The Community Chest of Hong Kong)
• Strongest Bank in Asia Pacific and Hong Kong (The Asian Banker)
• Financial Education Champion (Investor and Financial Education Council)
• Outstanding Award for Green Loan Structuring Advisor (Hong Kong Sustainable Finance Awards 2020)
• Outstanding Award for Green Bond Lead Manager (Hong Kong Sustainable Finance Awards 2020)
• Best SME’s Partner Gold Award (Hong Kong General Chamber of Small and Medium Business)
• Excellent SME Commercial and Financial Services Award (Hong Kong Economic Journal’s Financial Services Awards of Excellence 2020)
• Training Academy Award (Bloomberg Businessweek’s Financial Institution Awards 2020)
• Best Talent Acquisition & Onboarding Strategy Award (CTgoodjobs’ Best HR Awards 2020)
• Best L&D Technology Implementation Award (CTgoodjobs’ Best HR Awards 2020)
• Good MPF Employer Award (Mandatory Provident Fund Schemes Authority)
• Smart Energy Award 2020 - Renewable Energy Contribution Award (CLP)
• Charter on External Lighting - Platinum Award (Environment Bureau)

Environmental Metrics

ESG Focus Areas

• green finance
• sustainable development
• carbon neutrality
• corporate social responsibility
• digital transformation

Environmental Achievements

• Launched Hong Kong’s first green mortgage plan
• Issued “sustainable and smart living” themed green bonds
• Balance of green and sustainability-linked loans increased by 3.1 times compared with the previous year-end
• Issuance amount of newly underwritten ESG-related bonds increased by 1.7 times year-on-year
• Placement of green deposits by corporate customers rose threefold compared with the same period last year
• Promoted paperless payment receipt scheme with about 10,000 merchants covering approximately 15,000 sales outlets

Social Achievements

• Launched more than 70 charity projects and more than 90 volunteer events throughout the year
• Awarded the “9th Hong Kong Volunteer Award: Corporate Award” from the Agency for Volunteer Service
• Issued the Commemorative Banknote of the Olympic Winter Games Beijing 2022, donating net proceeds for local charitable purposes
• Actively implemented enhancements to the SME Financing Guarantee Scheme and the Hong Kong Monetary Authority (“HKMA”)‘s Pre-approved Principal Payment Holiday Scheme
• Supported the HKMA’s initiative to build the Commercial Data Interchange, becoming the first local bank to use business data throughout the process of credit assessment for SME customers
• Launched the ERP Cloud Services – Accounting Cloud to help SMEs enhance their operational management capabilities

Governance Achievements

• Officially became a signatory of the Task Force on Climate-related Financial Disclosures (TCFD)
• Upgraded to the highest “AAA” ESG rating by MSCI
• Strengthened corporate governance and information disclosure

Climate Goals & Targets

Environmental Challenges

• Persistently low interest rates adversely affecting profitability
• COVID-19 pandemic threatening public health and roiling the world’s economy
• Global economic recovery unfolding along divergent trajectories
• Inflationary pressures
• Volatile financial markets
• Emerging economies in Southeast Asia considerably impacted by the pandemic
• Supply chain disruptions in Southeast Asia
• Inbound tourism in Hong Kong severely affected by the global pandemic

Mitigation Strategies

• Formulated and implemented a five-year strategic plan
• Redoubled efforts in Hong Kong, Southeast Asia and Greater Bay Area markets
• Pursued regionalised, digitalised, and integrated development
• Adhered to stringent risk management
• Proactively seized market opportunities
• Strengthened cost management while ensuring ongoing investment in strategic priorities
• Proactively managed assets and liabilities
• Implemented optimisation measures to the credit guarantee products and Special 100% Loan Guarantee under the Hong Kong Mortgage Corporation Limited’s SME Financing Guarantee Scheme
• Implemented prudent risk management to maintain solid asset quality

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

• RMB personal green time deposit plans
• Hong Kong’s first green mortgage plan
• BOCHK All Weather ESG Multi-Asset Fund

Awards & Recognition

• “AAA” ESG rating by MSCI
• “Hong Kong’s Best Digital Bank 2021” by Asiamoney
• “Strongest Bank in Hong Kong and Asia Pacific” by The Asian Banker
• “Bank of the Year in Hong Kong” by The Banker

Environmental Metrics

ESG Focus Areas

• Green Finance
• Sustainable Development
• Corporate Social Responsibility

Environmental Achievements

• Completed a green energy-saving upgrade project for Bank of China Tower, earning the highest – BEAM Plus Platinum rating
• Set the goal of “carbon neutrality in operations by 2030”
• Green and sustainability-linked loans increased by 155.3% from the end of 2021 to HK$64,660 million.

Social Achievements

• Launched more than 80 charity projects
• Successfully organised and supported a series of activities to celebrate the 25th anniversary of Hong Kong’s return to the motherland
• Upgraded its “Volunteer Day” to “Volunteer Week” and organised over 120 volunteer activities throughout the year, totalling over 20,000 hours of service to the community.

Governance Achievements

• Received the highest “AAA” rating from MSCI ESG Research for the second consecutive year
• Named “Market Leader for ESG in Hong Kong” and “Market Leader for CSR in Hong Kong” by Euromoney.
• Implemented comprehensive risk management

Climate Goals & Targets

Environmental Challenges

• Volatile pandemic situation
• Financial market volatility
• Sluggish economic performance and declining demand for financial services
• Weak global market sentiment, with anemic levels of IPO activity

Mitigation Strategies

• Actively responded to market volatility and captured business opportunities
• Proactively explored opportunities amid a volatile market environment
• Strengthened its risk management systems for all types of risks
• Implemented a series of measures and undertook an on-going review on the effectiveness of the internal control mechanism

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Green Mortgage Plan
• RMB-denominated decarbonisation-themed fund
• Green personal loan
• BOC Chill Card

Awards & Recognition

• Strongest Bank in Hong Kong and Asia Pacific 2022
• Best Bank for CSR in Hong Kong
• Best Chinese Bank for the Greater Bay Area
• Asia-Pacific Climate Leaders 2022
• Market Leader for ESG in Hong Kong
• Market Leader for CSR in Hong Kong
• ESG Corporate Awards 2022 – Platinum Award
• Most Sustainable Trade Finance Initiative
• Asia’s Best CSR
• Best Environmental Responsibility
• ESG Leading Enterprise Award
• Leading Social Initiative Award
• Outstanding Award for Green and Sustainable Bond Lead Manager
• Outstanding Award for Green and Sustainable Loan Facilitator
• Pioneering Organisation in Climate Disclosure Planning
• Hong Kong International Carbon Market Council Inaugural Member
• Hong Kong International Carbon Market Inaugural Participant
• Excellence in ESG Governance – Grand Award
• Excellence in Social Positive Impact – Grand Award
• Best ESG Report (Large-cap) – Commendation
• Market Leader for Digital Solutions in Hong Kong
• Digital Transformation of the Year – Hong Kong
• Mobile Banking & Payment Initiative of the Year – Hong Kong
• Best in Future of Customer Experience – Hong Kong and Asia Pacific
• Banking Securities Sector Digital Innovation – Excellence
• Smart Business (Solution for SME) – Gold Award
• Extraordinary Participant in RMB Cross-border Payment Clearing Business
• Innovative Participant in Finance Market’s RMB Cross-border Payment Clearing Service Excellence
• Best Wealth Management Bank in Hong Kong
• Best Cash Management Bank in Hong Kong
• Most Selected Main Retail Bank in Hong Kong and 10th in Asia Pacific
• Best Chinese Bank for Wealth Management Connect in GBA
• Hong Kong Domestic Trade Finance Bank of the Year
• Hong Kong Domestic Cash Management Bank of the Year
• Hong Kong Domestic ESG Liquidity Management Initiative of the Year
• Best China Fund House
• Best RMB Fund Manager
• Best Treasury & Finance Strategies in Asia Pacific
• Best Cross-border RMB Services Award
• Best Overseas Treasury Management Bank Award
• Best Industry Solutions Award
• Banking Securities Sector Cross Border Wealth Management (Personal) – Excellence
• Insurance Sector Bancassurer of the Year – Excellence
• Banking Securities Sector Wealth Management Platform – Outstanding
• Banking Securities Sector Brokerage Service – Outstanding
• Best SME’s Partner Award for 15 consecutive years
• Most Influential Market Participant
• CIBM Offshore Institutional Investor Excellence Award
• Northbound Top Custodian Award
• Gold Rated Scheme – My Choice MPF Scheme for 10 consecutive years
• Banking Sector Training Programme – Excellence
• Best Innovative L&D Initiative Award – Grand
• Best Innovative HR Initiative Award – Grand
• Best Talent Management Strategy Award – Gold

Environmental Metrics

ESG Focus Areas

• Carbon neutrality
• Green finance
• Sustainable development
• Community investment
• Diversity and inclusion

Environmental Achievements

• Announced goal of achieving carbon neutrality in operations by 2030
• Released first Task Force on Climate-related Financial Disclosures (TCFD) report
• Increased balance of green and sustainability-linked loans by 86.9% year-on-year
• Assisted HKSAR Government in issuing world’s first government-issued tokenised green bonds
• Launched “BOCHK Greater Bay Area Climate Transition ETF”
• Completed first green RMB reverse repo transaction

Social Achievements

• Supported events such as Hong Kong Tree Planting Day and Hong Kong-Zhuhai-Macao Bridge Half Marathon
• Sponsored exhibitions at the Hong Kong Palace Museum
• Awarded “Outstanding Corporate” award at Hong Kong Volunteer Award 2023
• Carried out more than 80 charity projects
• Provided over 1,600 internships and jobs for local university graduates and young people
• Supported HKSAR Government’s “Strive and Rise Programme” and awarded its first “Strategic Partner Award”

Governance Achievements

• Maintained robust financial and risk indicators
• Improved asset quality management mechanisms
• Strengthened risk prevention and control capabilities
• Established end-to-end climate risk management framework
• Revamped institutional money laundering risk assessment model
• Adopted regulatory technology solutions in transaction screening

Climate Goals & Targets

Environmental Challenges

• Global economic slowdown
• Persistently high interest rates
• Geopolitical risks
• Financial market volatility
• Spillover risks from European and American regional bank crises

Mitigation Strategies

• Upholding “bottom-line” thinking in risk management
• Seizing business opportunities
• Strengthening risk management systems
• Improving asset quality management mechanisms
• Intensifying control over centralisation of loans to high-risk industries
• Managing market, interest rate, and liquidity risks

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

• Green Mortgage Plan
• Green deposits
• Sustainable income strategy fund
• BOCHK Greater Bay Area Climate Transition ETF
• Sustainability-linked aircraft financing

Awards & Recognition

• Strongest Bank in Hong Kong and Asia Pacific (The Asian Banker)
• Second Strongest Bank in the World (The Asian Banker)
• Bank of the Year in Hong Kong (The Banker)
• Asia-Pacific Climate Leaders 2023 (Financial Times)
• Market Leader for CSR in Hong Kong (Euromoney)
• Market Leader for ESG in Hong Kong (Euromoney)
• Many other awards related to ESG, digital solutions, cash management, and RMB business

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity Loss
• Sustainable Finance

Climate Goals & Targets

Environmental Challenges

• Climate risks impacting Asia-Pacific financial institutions
• Low percentage of financial institutions in Asia-Pacific with net-zero targets (13.4%)

Mitigation Strategies

• Integrating climate risk into financial decision-making
• Applying scenario analysis and risk management strategies
• Engaging stakeholders
• Addressing financed emissions
• Adapting business models to mitigate biodiversity loss

Supply Chain Management

Climate-Related Risks & Opportunities