Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Introduced CZBank Headquarter Energy Conservation Action Plan and CZBank Office Building Management Regulations; implemented various energy and water saving measures; adopted recycling and green technologies in building construction; promoted green procurement; established a workgroup for the project of Photovoltaic panels for a million residential homes; carried out research of the photovoltaic industry chain and pioneered financial services for the whole photovoltaic industry chain.
• Reduced office water consumption to 32,653 tons, office electricity consumption to 5,607,079 kilowatt hours, and company car fuel consumption to 45,603 liters. Increased the ratio of video conferences in overall meetings to 79%.

Social Achievements

• Improved customer satisfaction to 99.61%; achieved 100% resolving rate of complaints; implemented sound risk management strategies; rigorously controlled environmental and social risks of suppliers; implemented the “Three Lines of Defense” model for internal control and compliance; strictly complied with the Anti-Money Laundering Law of PRC; developed a long-lasting anti-bribery mechanism; enhanced consumer rights protection; organized various finance-themed public education events; conducted philanthropic activities including poverty-aids, disaster relieves, education-aids and volunteering; implemented fair employment practices; offered competitive salaries and benefits; provided employee training (36.9 million Yuan, 1,544 sessions, 141,629 participants); ensured 100% employee health check coverage; and promoted work-life balance.

Governance Achievements

• Constantly observed corporate governance compliance requirements of the listed market; systematically managed corporate governance; implemented comprehensive risk management system; established a corporate culture which holds the responsibility for anti-corruption; adjusted the Customer Rights Protection Committee and the workgroup on customer rights protection; compiled and amended policies such as the Guidelines on Consumer Rights Protection Management and the Guide on Managing the Customers’ Complaints; improved customer information management; established an instant-update abnormal accounts database; and signed a cooperative agreement on overall information regarding abnormal accounts database with Dow Jones.

Climate Goals & Targets

Environmental Challenges

• Complex economic and financial environment

Mitigation Strategies

• Embraced economic changes with innovations and sustained ethical operations; created a combination of economical, social and environmental values; constantly explored corporate social responsibility approaches that match our business characteristics.

Supply Chain Management

Responsible Procurement

• CZBank Centralized Purchasing Management Plan (Pilot Programme); supplier databases were constructed; supplier access and dynamic management mechanisms were implemented; suppliers were graded and ranked annually.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Hong Kong Stock Exchange (2016) ESG Reporting Guide

Environmental Metrics

ESG Focus Areas

• Economic Development
• Environmental Protection
• Social Responsibility
• Governance

Environmental Achievements

• Reduced carbon emissions (quantified data not explicitly provided, but mentions initiatives like green banking, green credit, and energy conservation)
• Increased green credit balance by 4.42 times year-on-year to 3.6 billion yuan
• Promoted the use of environmentally friendly materials in 110 branches

Social Achievements

• Launched Rainbow Plan, a large-scale public welfare program for students in mountainous areas, raising 1.76 million yuan in 2017
• Provided financial services to 167,300 micro, small, and medium-sized enterprises
• Maintained a customer satisfaction rate of 99.81%
• Implemented various employee care initiatives, including training programs and welfare benefits

Governance Achievements

• Improved corporate governance structure in accordance with relevant laws and regulations
• Strengthened risk management and compliance systems
• Enhanced information disclosure

Climate Goals & Targets

Environmental Challenges

• Maintaining risk control in a complex and changing financial environment
• Balancing economic and social benefits in the context of financial inclusion

Mitigation Strategies

• Strengthened risk management and compliance systems
• Implemented the "Internal Control Safeguarding and Compliance Escort" special action plan
• Developed a sustainable model for inclusive finance

Supply Chain Management

Supplier Audits: 100% coverage

Responsible Procurement

• Environmental and social risk assessment of suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of green financial products and services

Reporting Standards

Frameworks Used: GRI 4.0, China Banking Association's Corporate Social Responsibility Guidelines, Hong Kong Stock Exchange's Environmental, Social and Governance Reporting Guide (2016), ISO 26000

Certifications: Null

Third-party Assurance: PwC ZhongTian LLP

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green credit products
• Digital credit accounts (Zero Carbon Credit Card)

Awards & Recognition

• Various awards and recognitions are mentioned in the report, but a comprehensive list is not provided.

Environmental Metrics

ESG Focus Areas

• COVID-19 response
• Poverty alleviation
• Serving MSEs and the real economy
• Green development
• Customer service
• Employee development
• Social responsibility
• Risk management
• Corporate governance
• Inclusive finance
• Fintech innovation
• Green finance
• Community investment
• Employee wellbeing

Environmental Achievements

• Green loan balance reached RMB 78.526 billion, a 45.75% increase from the beginning of the year.
• Reduced office paper consumption by 34.28 tons through online approval.
• Total greenhouse gas emissions (Scope 1 and 2): 19,572.91 t CO2 equivalent

Social Achievements

• Launched several public welfare programs (One Bank Branch for One Primary School, CZBank Rainbow Program, Salute to City Guardians), donating RMB 33.6277 million (0.23% of annual income).
• Provided RMB 265.162 billion in loans for COVID-19 prevention and control, reduced RMB 3.5 billion in interest and fees.
• Assisted poor households through direct and indirect poverty alleviation initiatives.
• Agricultural loan balance totaled RMB 171.148 billion; outstanding industrial loans related to poverty alleviation amounted to RMB 1.618 billion.
• Average training time per employee: 57.08 hours.

Governance Achievements

• Issued Administrative Measures on Social Responsibility Management in 2018.
• Board of Directors reviewed and approved major CSR resolutions.
• Strengthened internal control and compliance management, including anti-money laundering measures.
• Successfully registered 475 trademarks.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic
• Economic slowdown
• Environmental risks
• Supply chain disruptions

Mitigation Strategies

• Implemented platform-based service strategy
• Provided financial support to businesses affected by COVID-19
• Enhanced risk management and control measures
• Developed green finance initiatives
• Improved online services and customer experience

Supply Chain Management

Supplier Audits: 100% of suppliers under centralized purchasing were audited.

Responsible Procurement

• Incorporated business reputation, financial systems, tax payment certificates, and violation records into supplier qualification assessment.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Opinions on Strengthening the Social Responsibility of Banking Financial Institutions (CBIRC), China Banking Association's Guidelines for Corporate Social Responsibility, Shanghai Stock Exchange's Notice on Strengthening Listed Companies’ Assumption of Social Responsibility, Guidelines on Listed Companies’ Environmental Information Disclosure, Hong Kong Stock Exchange's Environmental, Social and Governance Reporting Guidelines, ISO 26000:2010, GRI Standards

Third-party Assurance: Ernst & Young Hua Ming LLP

Awards & Recognition

• Ranked 97th among the “Top 1000 World Banks” by The Banker
• Various other awards listed in section IV. Honors and Awards

Environmental Metrics

ESG Focus Areas

• Common Prosperity (Zhejiang Demonstration Zone)
• Green Finance
• Inclusive Finance
• Digital Reform
• Employee Care
• Public Welfare

Environmental Achievements

• Reduced office paper consumption by 12.33% over the previous year.
• 99.70% of deals were made through E-banking.

Social Achievements

• RMB 1 billion of fees and interest reduced for 360,000 MSEs and self-employed individuals.
• 95527 Service Hotline recorded a customer satisfaction rate of 99.86%.
• Each employee received 62.61 hours of training on average.
• RMB 17.3869 million donated, accounting for 0.12% of total profit.
• Launched the Hive Community to encourage frontline employee feedback.

Governance Achievements

• Improved corporate governance structure, internal control & compliance system, and comprehensive risk management.
• Implemented a series of ESG plans at various levels.
• No significant corruption lawsuits.

Climate Goals & Targets

Environmental Challenges

• Climate change risks
• Supply chain disruptions
• Maintaining high customer satisfaction while implementing digital transformation

Mitigation Strategies

• Developed a general “dual carbon” plan and implementation measures.
• Established the Leading Group to Support Carbon Peaking and Neutrality.
• Improved climate change risk management system by strengthening green credit, green bonds, and green investment.
• Developed innovative supply chain financial services (e.g., Dealer Credit).
• Improved digital services and age-friendly customer experiences.

Supply Chain Management

Supplier Audits: 176 suppliers screened for social responsibility (Head Office)

Responsible Procurement

• Centralized procurement following principles of openness, fairness, impartiality, and good faith.
• Priority given to eco-friendly and sustainable suppliers.
• CSR requirements incorporated into supplier qualifications.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: HKEX Environmental, Social and Governance Reporting Guidelines, GRI Standards, ISO 26000:2010

Certifications: ISO 27001, ISO 20000, ISO 22301

Third-party Assurance: Ernst & Young Hua Ming LLP

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 2: Zero Hunger
• Goal 5: Gender Equality
• Goal 6: Clean Water and Sanitation
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 10: Reduced Inequalities
• Goal 11: Sustainable Cities and Communities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 16: Peace, Justice and Strong Institutions
• Goal 17: Partnerships for the Goals

CZBank actively responded by optimizing its CSR approaches and responsible management system inline with the SDGs.

Sustainable Products & Innovation

• EasyCarbonLoan
• PVLoan

Awards & Recognition

• Ranked 95th by total assets and 99th by Tier 1 capital on the list of Top 1000 World Banks 2021
• Various other awards listed in the report

Environmental Metrics

ESG Focus Areas

• Common prosperity in Zhejiang
• Green finance
• Inclusive finance
• Human capital development
• Climate change
• Customer experience
• Community contribution

Environmental Achievements

• Green loan balance of RMB 145.923 billion, up 39.98% from the beginning of the year
• Clean energy loan balance of RMB 12.501 billion, up 58.34% from the beginning of the year
• Issued a RMB 10 billion green bond
• Participated in China's first ESG-related syndicated loan
• Reduced carbon emissions by 39,206.25 tons through CERF loans

Social Achievements

• Customer satisfaction rate of 99.85% for the 95527 service hotline
• 100% customer complaint handling rate
• Average training time per employee of 64.9 hours
• RMB 25.4808 million donated to various social causes
• Launched the "One Bank Branch for One Primary School" Plan
• Launched the CZBank Agricultural Support Program
• Launched Hive Community to gather employee feedback

Governance Achievements

• MSCI ESG rating upgraded from BBB to A
• Implemented a series of ESG plans at various levels
• Defined ESG governance policy focusing on strategic planning, serving the real economy, promoting green finance, and consumer protection
• Reviewed ESG progress and approved ESG-related documents

Climate Goals & Targets

Environmental Challenges

• Climate change-related risks
• Financing difficulties for MSEs
• Fluctuations in pig prices
• Financing needs of culture and tourism businesses

Mitigation Strategies

• Developed a clear green finance development strategy and a general "dual carbon" plan
• Launched innovative products such as Carbon Easy Loan, PV Loan, and green bonds
• Provided RMB 9.005 billion of loans and bailout policies to reduce fees and interest costs and defer repayments for MSEs
• Launched the "Insurance + Futures + Financing" Pilot Program for pig farmers
• Reduced fees and interest costs and deferred repayment for culture and tourism MSEs

Supply Chain Management

Supplier Audits: 100% coverage

Responsible Procurement

• Centralized procurement management measures
• ESG performance evaluation of suppliers

Climate-Related Risks & Opportunities

Opportunities

• Green finance development

Reporting Standards

Frameworks Used: HKEX Environmental, Social and Governance Reporting Guidelines, TCFD Recommendations, GRI Standards for Sustainability Reporting, ISO 26000:2010

Certifications: ISO 27001, ISO 20000, ISO 22301

Third-party Assurance: Ernst & Young Hua Ming LLP

UN Sustainable Development Goals

• Goal 1: No poverty
• Goal 2: Zero hunger
• Goal 3: Good health and well-being
• Goal 4: Quality education
• Goal 5: Gender equality
• Goal 6: Clean water and sanitation
• Goal 7: Affordable and clean energy
• Goal 8: Decent work and economic growth
• Goal 9: Industry, innovation, and infrastructure
• Goal 10: Reduced inequalities
• Goal 11: Sustainable cities and communities
• Goal 12: Responsible consumption and production
• Goal 13: Climate action
• Goal 16: Peace, justice and strong institutions
• Goal 17: Partnerships for the goals

The report details how various initiatives contribute to these SDGs.

Sustainable Products & Innovation

• Green loans
• Green bonds
• Carbon Easy Loan
• PV Loan
• Common Wealth Loans
• Digital Common Wealth products

Awards & Recognition

• MSCI ESG rating of "A"
• Ranked 79th by Tier 1 capital on the list of Top 1000 World Banks 2022
• Various awards for green finance, inclusive finance, and social contribution

Environmental Metrics

ESG Focus Areas

• Governance
• Social
• Environmental

Environmental Achievements

• Green loan balance stood at RMB 203.436 billion, marking an increase of 39.41% from the start of the year
• Facilitated the issuance of green and blue bonds, realizing a financing scale of RMB 3.153 billion
• Achieved an online transaction conversion rate of over 99%

Social Achievements

• Established 90 Senior Service Stations nationwide
• Customer satisfaction rate of the 95527 hotline service reached 99.84%
• Annual donation amounted to RMB 22.7051 million

Governance Achievements

• Successfully brought strategic investors onboard while executing a double A+H share placement
• Renamed the Strategy Committee within the Board as the “Strategy and Sustainable Development Committee”, revising its procedural rules to better delineate its ESG responsibilities
• Approved a series of ESG-related documents, such as the CZBank CSR Report 2022, the CZBank Green Finance Report 2022, the CZBank Consumer Protection Report 2022 and Plan for 2023, and the CZBank Anti-Money Laundering and Anti-Terrorist Financing Report 2022

Climate Goals & Targets

Environmental Challenges

• Economic fluctuations greatly influence the operational performance of commercial banks
• Reaching carbon peaking and neutrality poses challenges to the risk management and control capabilities of banks
• Climate change poses physical risks (extreme weather events) and transition risks (credit risk, liquidity risk, market risk, reputation risk, IT risk, strategic risk) to the bank

Mitigation Strategies

• Created a “ballast” of assets that display low sensitivity to economic cycles
• Fortified our end-to-end credit environment and risk management protocols, while also robustly conducting environmental stress tests
• Developed and introduced financial products and services that align with ESG principles, thereby fortifying our portfolio of green financial solutions
• Integrated climate risk into our reputation risk management system
• Fortified the development of data security management, technology, and operation systems
• Framed a green finance development strategy as well as a “dual carbon” master plan

Supply Chain Management

Supplier Audits: 100% coverage

Responsible Procurement

• Declaration of Supplier Integrity and Contractual Compliance

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Long-term climate risks (global warming, rising sea levels)

Transition Risks

• Credit risk
• Liquidity risk
• Market risk
• Reputation risk
• IT risk
• Strategic risk

Opportunities

• Transformation opportunities (cost reduction)
• Market opportunities (revenue growth)
• Product and service innovation opportunities (broaden revenue sources)

Reporting Standards

Frameworks Used: GRI Standards, UN Sustainable Development Goals (SDGs), MSCI ESG ratings, S&P Global Corporate Sustainability Assessment (CSA), TCFD

Third-party Assurance: Ernst & Young Hua Ming LLP

Sustainable Products & Innovation

• Green loans
• Green bonds
• Carbon neutrality bonds
• Data Asset Loan
• Inclusive Data Asset Loan
• Common Wealth Loan
• Digital for Wealth series
• Intelligent Manufacturing Loan
• Rural Revitalization Card
• Talent Support Loan
• Easy Carbon Loan
• PV Loan
• Tianhe Supply Chain Credit Certificate
• Low-Carbon Credit Card
• CZBank 2023 Yongying Tianli Anxiang No. 45 RMB Wealth Management

Awards & Recognition

• 87th on the list of “Top 1000 World Banks 2023” by The Banker
• MSCI ESG rating of “A” for two consecutive years
• Many other awards listed in the report

Environmental Metrics

ESG Focus Areas

• Green Finance
• Rural Revitalization
• Consumer Rights Protection

Environmental Achievements

• Balance of green loans was RMB226.764 billion, representing an increase of RMB23.327 billion or 11.47% from the beginning of the year, which was higher than the growth rate of all loans.
• Strengthened its own carbon footprint management, strived to reduce resource and energy consumption in daily office and operation processes, and promoted green and intelligent development of financial services by upgrading personal mobile banking, optimizing corporate service platforms and accelerating the construction of green outlets; actively carried out digital office and paperless quick reimbursement, encouraged green commuting of employees, and continued to improve the eco-efficiency of operations.

Social Achievements

• Continued to increase the allocation of financial resources and investment in rural areas and poverty-stricken areas, formulated financial service plans by focusing on island counties in the mountainous areas of Zhejiang Province, and continued to explore effective rural revitalization financial service patterns with CZBank characteristics.
• Balance of large agricultural loans was RMB228.605 billion, representing an increase of RMB7.822 billion from the beginning of the year, and the balance of inclusive agriculture-related loans was RMB45.894 billion, representing an increase of RMB3.140 billion from the beginning of the year.
• Improved the customer complaint management and information protection system to create efficient, convenient, warm and quality service experience; intensified consumer protection review by conducting more than 700 reviews, identified risks in product and service design and development, pricing management, agreement formulation, marketing promotion and other aspects, and gave full play to the role of source prevention and control; continued to optimize the digital intelligent consumer protection system with demand guidance and technology empowerment, so as to further improve the quality and efficiency of consumer protection; continued to improve the complaint management mechanism, strengthen the construction of the complaint management team, handle complaints in a timely and appropriate manner, and effectively protect the legitimate rights and interests of consumers, and received 64,232 complaints, with a 100% customer complaint handling rate; carried out financial knowledge publicity and education activities, and organized 4,048 online and offline publicity and education activities, involving 53.6993 million consumers.

Governance Achievements

• Improved corporate governance structure consisting of the general meeting, the Board, the Supervisory Committee and the Senior Management according to the relevant laws, regulations and regulatory requirements.
• The Board of the Company takes corporate governance legality and compliance as the bottom line, draws on the best practices of outstanding companies as the direction, improves the system of corporate governance mechanism as the basis and gives full play to the decision-making role of the Board as the core, so as to strives to build a corporate governance mechanism with clear boundaries of responsibilities, orderly checks and balances and collaboration, democratic and scientific decision-making, and standardized and efficient operation.
• Won the 15th “Tianma Award” (天馬獎) for investor relations management of Chinese listed companies.

Climate Goals & Targets

Environmental Challenges

• Insufficient effective demand, slow recovery of real estate market and rising trade protectionism at a global scale

Mitigation Strategies

• Will comprehensively implement its philosophies of financial services for good and intelligent operation, conduct customer-oriented, comprehensive and coordinated reform, carry out the “321” operation strategy, strengthen digital reform with a focus on scenario-based finance, and create its distinctive advantages on five segments.
• Implement the “123” talent plan, optimize the composition of its talent team, and intensify internal management and risk prevention and control.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Financial Reporting Standards (IFRS)

Third-party Assurance: KPMG Huazhen LLP and KPMG

Awards & Recognition

• 15th “Tianma Award” for investor relations management