Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate governance
• social
• environmental sustainability

Environmental Achievements

• Annual growth rate of green credit reached 23.7%
• Loan balance of the "two highs and one surplus" industry decreased by 15% compared with the beginning of the year
• RMB 1.55 billion invested in green debt financing instruments, ranking first among city commercial banks and rural financial institutions
• Actively advocated green office and green operation, promoting energy conservation and emission reduction

Social Achievements

• Donated more than RMB 3.4 million for epidemic prevention
• Provided preferential interest rates for loans of RMB 60.8 billion affected by the epidemic, with a profit sharing of RMB 1.75 billion
• RMB 28.6 billion of loans provided to meet the policy of refinancing small businesses
• 7,147 small and micro customers were newly added, and nearly RMB 30 billion of small and micro loans were invested, achieving a growth rate of 36%
• Nearly 100 functions such as "banking and tax interconnection", "industrial and commercial registration" and "social security services" were launched on smart devices in business outlets
• Successfully issued the third generation social security card
• Implemented the "Supporting Village Construction" project, investing a special fund of RMB 1 million
• Organized more than 450 training programs, covering more than 50,000 trainees

Governance Achievements

• Established a governance structure “three meetings and one management”, consisting of a general meeting, the meeting of the board of directors, the meeting of the board of supervisors and senior management
• Strengthened the party's work style and clean government, and persevered in upholding disciplines
• Formulated an activity plan for the construction of clean culture and incorruptible financial culture
• Strictly abides by the Advertising Law of the People's Republic of China, Trademark Law of the People's Republic of China and other national and local laws and regulations

Climate Goals & Targets

Environmental Challenges

• Severe challenges brought by the century's epidemic situation and changes in the past century

Mitigation Strategies

• Thoroughly studied and implemented the important instruction spirit of General Secretary Xi Jinping's important speech on promoting epidemic prevention and control and economic and social development
• Implemented the decision-making arrangements of the CPC Central Committee and the State Council and the work requirements of the provinces and municipalities
• Made concerted efforts and forge ahead in the major examinations of the Great War

Supply Chain Management

Responsible Procurement

• Adhered to the principles of openness, fairness and impartiality
• Explicitly requires suppliers to be legal and honest

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, ESG Guide, Appendix 27 of Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Third-party Assurance: PricewaterhouseCoopers Zhongtian Certified Public Accountants (Special General Partnership)

Awards & Recognition

• Friendly Partners of 100 Public Welfare Foundations
• Public Welfare Love Unit Against COVID-19 Epidemic
• Most socially responsible listed company
• 2019 A-level Certificate of Transparency of Charity Organizations in Guangzhou
• National "Best Inclusion Finance Rural Commercial Bank"
• 2020 Excellent Cases of Financial Services for SMEs
• 2020 Outstanding Competitiveness Sannong Financial Service Bank”,
• 2020 China Golden Ding Award Special Contribution Award for Supporting Local Economic Development
• Golden Lion Award “Best Anti-epidemic Financial Service Bank of the Year"
• “Most Popular Inclusive Financing Service Institution”
• Best Retail Service Bank and Best Small and Micro Enterprise Credit Bank in 2020
• 2020 Regional Service Leading Bank
• Best Rural Commercial Bank in 2020
• 2020 "Five-Star Guangzhou Charity Unit"
• Guangzhou Daily Gold Financial Service Brand

Environmental Metrics

ESG Focus Areas

• Green and Low-carbon, Energy Saving and Environmental Protection
• Supporting Development of Agriculture, Rural Areas and Farmers, Helping Micro- and Small-sized Enterprises
• Corporate Governance
• People-oriented, Care for the Staff
• Development for the Benefit of All and Contribution to Society

Environmental Achievements

• GHG emissions per capita reduced by 2% compared with 2021.
• Successfully issued its first green financial bond of RMB3 billion.
• Green loans reached RMB24.895 billion with a growth rate of 69%.

Social Achievements

• Launched the “Jinmi New Urban Resident Business Loan”, extending RMB5,392 million of loans to 1,733 new urban residents.
• RMB7,643 million of loans were covered by deferred principal repayment services, benefiting 2,184 enterprises.
• More than 32,000 people dispatched to help the pandemic control work in Guangzhou.

Governance Achievements

• Established a three-tiered green finance governance structure.
• No legal case filed and concluded for corrupt practices of the Bank or its employees in 2022.
• Improved the internal control system for anti-money laundering, revising nine systems.

Climate Goals & Targets

Environmental Challenges

• Severe and complex macroeconomic environment and the arduous and heavy task of reform and development.
• Impact of environmental risks on the business of the Bank, particularly key business such as loans.
• Financing needs of small and micro enterprises.

Mitigation Strategies

• Implemented multiple policies and measures to support the economy and alleviate difficulties for enterprises affected by the COVID-19 pandemic.
• Allocated special credit resources, optimized business processes, and developed multiple flagship products.
• Formulated a green finance development and implement plan for “14th Five-Year Plan”, implemented a three-tiered green finance governance structure.

Supply Chain Management

Responsible Procurement

• Prioritising green, energy-saving and environment-friendly products.
• Requiring suppliers to be legal and honest.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme climate disasters

Transition Risks

• Changes in policy, market, technology and investment preference

Opportunities

• Development of green finance products

Reporting Standards

Frameworks Used: GRI (Version 2021), ESG Guide (Appendix 27 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited)

Third-party Assurance: Zhongcai Green Index Consultant Co., Ltd.

Sustainable Products & Innovation

• Jinmi Green Enterprise Loan
• Jinmi Carbon Emission Right Mortgage
• Jinmi Rural Revitalisation Forest Loan
• Jinmi Easy Housing Loan
• Jinmi Financing Guarantee Rapid Loan
• Jinmi New Urban Resident Business Loan

Awards & Recognition

• Excellent Cases of Digital Service of the Year
• Excellent Cases and Most Concerned Cases in the Practical Activity of “I Do Practical Things for the Masses” in Guangdong Financial Industry
• Top 10 Inclusive Financial Services Innovation Award
• Inclusive Financial Bank with Excellent Competitiveness
• Demonstration Bank for Rural Revitalisation
• Sannong Financial Service Innovation Award
• Golden Pilot Golden Quality Financial Selection
• Nanfang Zhijing Brand Enterprise of the Year
• The First Batch of Guangzhou Green Finance Reform and Innovation Cases
• Excellent Cases of Green Finance in Banking Industry
• Organisations with Outstanding Service of Green Finance in Guangdong-Hong Kong-Macao Greater Bay Area
• Economic Development Contribution Award
• Outstanding Contribution Institution of Private Enterprises in Financial Services
• Excellent Green Finance Case in the Banking Sector in 2022
• Excellent Service Institution of Green Finance in the Guangdong-Hong Kong-Macao Greater Bay Area in 2022
• Guangdong Silk Cotton Cup of Poverty Alleviation – Golden Cup

Environmental Metrics

ESG Focus Areas

• Environmental sustainability
• Social responsibility
• Corporate governance

Environmental Achievements

• Green loan balance of RMB 432.49 billion (increased from RMB 248.95 billion in 2022)
• GHG emissions reduced by green credit assets of 258,542.22 tons of carbon dioxide equivalent (increased from 176,601.18 tons in 2022)
• Established two "zero-carbon outlets"
• Gasoline consumption of official vehicles decreased by 2.31% year on year

Social Achievements

• Balance of inclusive small and micro enterprise loans reached RMB 45.473 billion (growth rate of 10.31% compared to the beginning of the year)
• Number of small and micro customers increased by 695 to 36,821
• RMB 16.75 billion invested to support the construction of key projects in the Guangdong-Hong Kong-Macao Greater Bay Area
• Launched “Medical Credit No-touch Payment” service
• Issued the first social security card in the province loaded with transportation functions
• Organized the third Guangzhou Thousand Village Football Championship, with 180 village teams participating and over 3,660 participants

Governance Achievements

• No legal case filed and concluded for corrupt practices of the Bank or its employees in 2023
• Issued 7 anti-money laundering internal control systems
• Conducted over 250 anti-corruption training sessions, covering over 7,600 people
• Improved the mechanism for talent introduction and selection
• Established a fair and reasonable salary increment mechanism and job promotion mechanism

Climate Goals & Targets

Environmental Challenges

• Increased extreme weather events affecting business continuity and potentially damaging facilities
• Climate change risks impacting customer industries (energy, transportation, manufacturing, agriculture, etc.)
• Potential impact on the Bank's operations if credit recipients interrupt operations due to extreme weather or collateral damage

Mitigation Strategies

• Adequate contingency plans for extreme weather events
• Coordination of outlet operations while safeguarding employee safety
• Quantitative analysis system for scenario analysis or stress testing to quantify the impact of climate change on credit assets
• Post-lending risk management including tracking and monitoring of environmental risks

Supply Chain Management

Responsible Procurement

• Centralised procurement management adhering to principles of openness, fairness and impartiality
• Priority given to green, energy-saving and environment-friendly products
• Suppliers must be legal and honest with no major illegal record in the past three years

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (high temperature, heavy rain, typhoons) affecting business continuity and potentially damaging facilities

Transition Risks

• Changes in national and regulatory environmental policies

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards (Version 2021), Environmental, Social and Governance Reporting Guide (Appendix C2 of the Listing Rules issued by HKEx)

Third-party Assurance: China Chengxin Green Finance Technology (Beijing) Limited

Sustainable Products & Innovation

• Jinmi Green Low-Carbon Credit Card
• Jinmi Green Enterprise Loan
• Jinmi Rural Revitalization Forest Easy Loan
• Jinmi Easy Housing Loan
• Jinmi Technology Loan
• Mini Credit Loan

Awards & Recognition

• Financial Institution with Outstanding Contributions to Rural Revitalization
• SME Service Bank with Excellent Competitiveness
• Wealth Management Award of the Year
• The Gamma Award of Bank for Inclusive Financial Service in 2023
• 2023 Excellent Cases of Innovative Green Finance
• 2023 Excellent Cases of Innovative Rural Revitalisation Financial Services
• 2023 High-Quality Development Financial Institution Award
• 2023 Shining Cases of Financial Support for High-Quality Development
• 2023 Nanfang Zhijing Innovative Enterprise of the Year
• 2023 Financial Institutions with Outstanding Contributions to Rural Revitalization
• 2023 Gold Smart Award of Outstanding Small and Micro Business Service
• 2023 Small and Medium-sized Enterprise Service Bank with Excellent Competitiveness
• Excellent Cases of Innovative Financial Support for the Hundred, Thousand and Ten Thousand Project
• High-Quality Development·Annual “Specialized, Refined, Special and Novel Enterprises” Pioneer Bank
• 2023 Green Finance Practice Model
• Excellent Cases of Serving the Real Economy
• Outstanding Member Unit of the Year (Guangzhou Green Finance Association)
• Green Finance Practice Model of the Year (China Finance Billboard)