Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced resource and energy consumption; controlled greenhouse gas and pollutant emissions; implemented green credit with RMB75,231 million balance; won “Excellent Green Finance Brand” award.

Social Achievements

• No child or forced labor; competitive salaries and welfare for employees; various employee care activities; public service activities; popularized financial knowledge; provided volunteer services.

Governance Achievements

• Established a sound safety production management and supervision mechanism; implemented management measures for employees to report corruption; formulated relevant management systems to specify the organizational structure and job responsibilities of anti-money laundering management; actively carried out software copyright registration and patent application.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Formulated guidelines for green purchase; multi-dimensional comprehensive assessment models including green and environmental indicators in the annual assessment of suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ESG Guide under Appendix 27 of the Main Board Listing Rules of The Stock Exchange of Hong Kong Limited

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Excellent Green Finance Brand
• Annual Outstanding Inclusive Financial Bank
• Outstanding Social Responsibility Practice Enterprise in 2016

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced carbon dioxide emissions by an unspecified amount through initiatives like the world's longest floating power plant.
• Achieved an average power utilization efficiency (PUE) of the Hefei Data Center that remained at the vanguard of data centers in the finance industry.

Social Achievements

• Granted over RMB1 trillion loans to 832 national-level poverty-stricken counties, and over RMB16.4 billion micro loans for poverty alleviation, benefiting more than 420,000 poor population.
• Launched the "PSBC Love Classes of Self-Commitment" program, providing educational funding aid for poor high school students.
• Improved customer experiences through outlet channel and mobile banking optimization.
• Increased the balance of personal consumption loans to RMB2.36 trillion.

Governance Achievements

• Issued the Guidelines of Postal Savings Bank of China for CSR Work (Version 2020), and established a comprehensive organizational structure for CSR management.
• Improved corporate governance framework and mechanism to meet the operational requirements of both A-share and H-share markets.
• Strengthened comprehensive risk management system, resulting in an NPL ratio of 0.88%.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting the economy and requiring adjustments to financial services.
• Risks associated with loan repayment deferrals for small and micro-sized enterprises.

Mitigation Strategies

• Implemented emergency response measures, provided financial support to key enterprises and individuals affected by the pandemic.
• Developed differentiated policies for small and micro-sized enterprises, closely monitored risk status of loans, and made rational adjustments to repayment arrangements.

Supply Chain Management

Responsible Procurement

• Green procurement requirements
• Supplier social responsibility evaluation

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, Opinions on Strengthening Social Responsibilities of Banking Institutions, Corporate Social Responsibilities Guidelines for China's Banking Institutions, Guidelines for Environmental Information Disclosure of Listed Companies, Guidelines for Report on Performance of Corporate Social Responsibility, Environmental, Social and Governance Reporting Guide

Third-party Assurance: PricewaterhouseCoopers Zhong Tian LLP

Awards & Recognition

• Exemplary Institution for Green Banking in Terms of Overall Performance (China Banking Association)
• Excellent Organizer of Joint Financial Literacy and Education Campaign in 2020 (CBIRC Financial Rights Protection Bureau)
• Many other awards listed in the report

Environmental Metrics

ESG Focus Areas

• Green Finance
• Inclusive Finance
• Rural Revitalization
• Consumer Protection
• Talent Development
• Digital Transformation
• Climate Change
• Biodiversity

Environmental Achievements

• Green loan balance reached RMB 372,294 million, a 32.52% increase year-on-year.
• Green financing balance reached RMB 428,105 million, a 33.89% increase year-on-year.
• Projects supported by green credit saved around 13,979,200 tons of standard coal and reduced emissions of around 31,517,600 tons of carbon dioxide equivalent.
• Won the 2021 IFF Global Green Finance Award Innovation Award.

Social Achievements

• Balance of inclusive loans to micro and small businesses reached RMB 960,602 million.
• Balance of agriculture-related loans reached RMB 1.61 trillion.
• Launched more than 43,000 online and offline training sessions, covering more than 2.71 million person-times.
• Customer satisfaction with telephone customer service reached 99.64%.
• PSBC Love Charity Foundation raised approximately RMB 41,059,900 and sponsored more than 18,000 students.

Governance Achievements

• Rated A in MSCI ESG Ratings.
• Rated A+ by Fitch Ratings and A1 by Moody’s Investors Service.
• Established a career development platform that enables both vertical promotion and horizontal transfer.
• Improved information disclosure and communication with the capital market.
• Rated A (Excellent) by the Shanghai Stock Exchange in its evaluation on information disclosure work.

Climate Goals & Targets

Environmental Challenges

• Climate risks in key industries (thermal power, steel, cement).
• Maintaining asset quality in a changing economic environment.
• Ensuring the security of payment data and controllability of business scenario risks.
• Preventing new types of telecommunications fraud.

Mitigation Strategies

• Climate risk stress tests conducted.
• Stricter new customer access management.
• Automated review and approval for retail loans.
• Intelligent risk management of non-retail credit portfolios.
• Enhanced system control capability using big data and face recognition.
• Strengthened customer identity recognition.

Supply Chain Management

Supplier Audits: 356 suppliers assessed for environmental and social risks

Responsible Procurement

• Prioritizing energy-saving and environmentally-friendly products.
• Requiring suppliers to fulfill social responsibilities (green and environmental protection, environmental management, quality management, employee benefits).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes related to carbon emissions.

Opportunities

• Development of green financial products and services.

Reporting Standards

Frameworks Used: GRI Standards, TCFD Recommendations, Principles for Responsible Banking (PRB), Hong Kong Stock Exchange ESG Reporting Guide

Certifications: Null

Third-party Assurance: Deloitte Touche Tohmatsu Certified Public Accountants LLP (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Supported the UN 2030 Sustainable Development Goals and the Paris Agreement.

Sustainable Products & Innovation

• Green loan products
• Green financing products
• e-CNY products

Awards & Recognition

• 2021 IFF Global Green Finance Award Innovation Award
• Excellent Case of Green Finance by the Asian Financial Society
• Best Investor Relations Award
• Best Investment Value Award
• Many other awards listed in the report

Environmental Metrics

ESG Focus Areas

• Rural Revitalization
• Inclusive Finance
• Green Finance
• Digital Transformation
• Corporate Governance
• Consumer Protection
• Employee Well-being

Environmental Achievements

• Green loan balance of RMB 496,549 million, up 33.38% from the previous year.
• Green bond investments of RMB 29.95 billion, up 29.58% from the previous year.
• Green bonds underwritten totaling RMB 11.77 billion.
• Projects supported by green credit saved 16.656 million tons of standard coal annually and reduced carbon emissions by 36.2357 million tons of carbon dioxide equivalent annually.
• RMB 30,979 million in carbon emission reduction loans granted to 312 projects, reducing carbon emissions by 6.1175 million tons of carbon dioxide equivalent.
• PSBC Wealth Management Co., Ltd. achieved carbon neutrality in operations.

Social Achievements

• RMB 1.81 trillion balance of agriculture-related loans.
• RMB 1.14 trillion balance of personal micro loans, an increase of RMB 219.84 billion from the previous year.
• Developed 383.5 thousand creditworthy villages and rated over 10 million farming households as creditworthy.
• Over 95% of micro loans were granted online.
• Launched various financial knowledge education and publicity campaigns through multiple channels.
• Total funds raised by PSBC Love Charity Foundation: RMB 49.9988 million (RMB 25 million donated by the bank).

Governance Achievements

• Improved information disclosure, receiving an A (Excellent) rating from the SSE.
• Strengthened comprehensive risk management system covering all aspects, the whole process, and all staff.
• Completed optimization of the independent, vertical audit management architecture.
• Implemented the three-year action plan for building a clean financial culture.
• No corruption litigation cases lodged against the company or its employees.

Climate Goals & Targets

Environmental Challenges

• Environmental and climate risks
• Financing difficulties for long-tailed customers in agricultural industrial chains
• Telecommunications and internet fraud
• Risk of halt of work and loan repayment in the real estate market

Mitigation Strategies

• Integrated environmental and climate risks into the comprehensive risk management system.
• Developed the financial service platform “PSBC E Chain” for agricultural industrial chains.
• Deepened governance of the “funds chain” and implemented stricter account opening measures.
• Took measures like loan extension, adjustment to the interest payment cycle, and adjustment to the repayment plan to ease repayment pressure for MSEs.

Supply Chain Management

Responsible Procurement

• Prioritizing energy-saving and environment-friendly products and green-labeled products
• Meeting green packaging and green transportation requirements
• Requiring suppliers to sign and perform the Agreement on Energy Conservation, Emission Reduction, and Green and Eco-friendly Development and the Letter of Commitment of Integrity

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Opinions on Strengthening Social Responsibilities of Banking Institutions, Corporate Social Responsibilities Guidelines for China’s Banking Institutions, Guidelines No.1 for Self-discipline of Listed Companies, Environmental, Social and Governance Reporting Guide, Principles for Responsible Banking, Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), GRI Sustainability Reporting Standards (GRI Standards), ISO26000: 2010, GB/T36000

Third-party Assurance: Deloitte Touche Tohmatsu Certified Public Accountants LLP (limited assurance)

Sustainable Products & Innovation

• Green loan products
• Green bonds
• Sustainability-linked financial products
• e-CNY wallet for new citizens

Awards & Recognition

• Advanced Unit in Green Bank Evaluation
• A rating by MSCI ESG Ratings
• Best ESG in the sector of banks and non-bank finance in Asia
• 2022 Best Practice Case for ESG of A-share Listed Companies
• 2022 Typical Case of Carbon Peak and Carbon Neutrality Actions
• 2022 Excellent Case of the EY Sustainable Development Awards of the Year
• Sustainable Development Benefits Award
• Top 10 Innovations in Green Finance
• Excellent Organizer in the Joint Education and Publicity Activity of Banking and Insurance Institutions in 2022
• Best Listed Company
• Best Investment Value for Listed Companies
• Institutional Friendly Communication Award
• Excellent IR Team

Environmental Metrics

ESG Focus Areas

• Inclusive finance
• Green finance
• Technology finance
• Rural revitalization
• Consumer protection
• Employee development
• Corporate governance
• Climate change
• Biodiversity

Environmental Achievements

• Balance of green loans increased by 28.46% to RMB 637,878 million
• Balance of green finance increased by 28.24% to RMB 747,946 million
• Projects financed saved 20.0564 million tonnes of standard coal and reduced carbon dioxide equivalent by 48.2175 million tonnes annually
• PSBC Wealth Management Co., Ltd. achieved carbon neutrality in main operations for two consecutive years

Social Achievements

• Balance of inclusive loans to micro and small-sized enterprises (MSEs) amounted to RMB 1.46 trillion
• Balance of agriculture-related loans amounted to RMB 2.15 trillion
• Served 663 million personal customers
• Opened 4,861 “PSBC Care Stations”, serving more than 37 million people
• More than 9,000 high school students received financial assistance from the “PSBC Love Classes of Self-Commitment” program
• Employee turnover rate of 2.27%
• Customer satisfaction rate of complaint handling was 95.46%

Governance Achievements

• Integrated ESG philosophy into development strategy, governance structure, corporate culture and business processes
• Improved corporate governance mechanism and incentive and constraint mechanism
• Strengthened information disclosure
• Rated A (Excellent) for information disclosure for the third consecutive year

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on the real economy and financial stability
• Maintaining asset quality in a changing economic environment
• Balancing financial inclusion with risk management
• Managing the complexities of a large-scale operation

Mitigation Strategies

• Strengthened ESG and climate risk management capabilities
• Implemented proactive credit extension and risk control measures
• Developed digital tools for risk monitoring and early warning
• Improved internal control and compliance mechanisms

Supply Chain Management

Supplier Audits: 569 suppliers had finished environmental and social risk assessment

Responsible Procurement

• Prioritizing energy-saving and eco-friendly products
• Using supplier CSR performance as an evaluation indicator
• Requiring suppliers to sign and fulfill the Agreement on Energy Conservation, Emissions Reduction and Green Development and Letter of Commitment on Integrity

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Opinions on Strengthening the Corporate Social Responsibility of Banking Institutions, Guidelines on the Corporate Social Responsibility of Banking Institutions of China, Guidelines No.1 for Self-Discipline of Listed Companies, Guidelines for the Report on Performance of Corporate Social Responsibility, Environmental, Social and Governance Reporting Guide, Principles for Responsible Banking, Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), GRI Sustainability Reporting Standards, ISO26000: 2010, GB/T36000

Third-party Assurance: Deloitte Touche Tohmatsu Certified Public Accountants LLP (limited assurance)

Sustainable Products & Innovation

• Carbon Sink Loan
• Eco-credit Loan
• Just transition loan
• ‘Carbon emission reduction facility plus sustainability-linked plus e-CNY’ scenario-based loan
• Green Panda Bond
• Green G Discount

Awards & Recognition

• Advanced Organization in Green Bank Evaluation
• 2023 Best ESG Practice among A-share Companies
• 2023 Best Practice of Digital Transformation among Listed Companies
• Excellent Institutional Investor of ChinaBond Green Bond Index (five consecutive years)
• SME Financier Award of the Year – Silver Award Asia
• Honorable Mention of Product Innovation of the Year