Climate Change Data

Environmental Metrics

ESG Focus Areas

• Value Creation
• Customer Service
• Green Development
• Employee Growth
• Social Harmony

Environmental Achievements

• Balance of green loans reached 50.982 billion yuan, an increase of 4.731 billion yuan over that at the year beginning.
• Credit card electronic bill customers increased by 55.85% year-on-year, saving 274 million sheets of paper and significantly reducing paper consumption and CO2 emissions.
• Implemented green building practices in Shenzhen and Chengdu projects (reducing land use, increasing green areas, using low-VOC materials, etc.).

Social Achievements

• Launched the “Partnership Project” supporting small and micro enterprises, providing over 60 billion yuan in loans to nearly 10,000 enterprises.
• 12 branches selected as Top 100 Model Service Units by China Banking Association.
• Successfully provided comprehensive financial services for the Shenzhen Summer Universiade.
• Launched “Teller 630 Plan” to improve work-life balance for tellers.

Governance Achievements

• Improved risk management systems, resulting in a non-performing loan rate of 0.56%, a year-on-year decrease of 0.12 percentage points.
• Completed the CBRC New Basel Capital Accord Implementation Assessment.
• Improved information disclosure mechanisms, disclosing over 230 documents with no significant errors.

Climate Goals & Targets

Environmental Challenges

• Unprecedented challenges in the complicated international and domestic environment.
• Risks threatening reputation.
• Compliance risks.

Mitigation Strategies

• Optimized credit risk quantification tools and implemented new loan regulations.
• Established a framework to manage risks threatening reputation and improved management systems, tools, and procedures.
• Increased auditing and inspection efforts to prevent compliance risks.
• Implemented the New Basel Capital Accord.

Supply Chain Management

Responsible Procurement

• Green procurement policies

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Guidelines for Sustainability Reporting (2006 edition), Additional Guidelines for Financial Service Industry, ISO26000, AA1000 standards, Opinions of the General Office of China Banking Regulatory Commission on Strengthening the Social Responsibility of Banking Financial Institutions, Guidelines on the Corporate Social Responsibility of Banking Institutions of China issued by China Banking Association, Guidelines of Shanghai Stock Exchange for Environmental Information Disclosure of Listed Companies

Third-party Assurance: Bureau Veritas (IASE 3000)

Sustainable Products & Innovation

• Green credit products
• Online loans
• Online wealth management services

Awards & Recognition

• Public-Spirited Award for 2011
• Best Social Responsibility Award for Institutions 2010
• China Children's Charity Award - Outstanding Contribution Award
• Best Green Bank 2011
• Best Professional Custody Bank of China 2011
• Best Customer Satisfaction Bank of Asia 2010
• Best Model Bank with Public Satisfaction in the Financial Service Industry of China 2010
• Best Brand Risk Management Award for China's Listed Companies 2011

Environmental Metrics

ESG Focus Areas

• Economic Responsibility
• Environmental Responsibility
• Social Responsibility

Environmental Achievements

• Accelerated green credit loans, supported the development of emerging industries and clean industries; promoted green product innovation and green financial cooperation, advocated green operations and instilled the concept of environmental protection into our day-to-day operations
• Green credit loan balance reached 610.57 billion yuan, an increase of 100.75 billion yuan over that at the year beginning.
• Reduced paper usage for credit card statements by approximately 240 million sheets, equivalent to saving approximately 5,000 mature trees, reducing 480 tons of carbon dioxide emissions, protecting 480 acres of forest, and reducing approximately 100,000 tons of wastewater.

Social Achievements

• Enhanced communication with relevant stakeholders, explored new modes of cooperation with relevant stakeholders, actively participated in social welfare programs and sought to realize mutual benefits of CMB and relevant stakeholders
• Launched various public welfare activities, including educational assistance, poverty alleviation, and low-carbon environmental protection.
• Supported the development of small and micro enterprises through various loan products and initiatives, such as the “Wings for 100 Eagles” program.
• Improved employee remuneration and welfare system, promoted the two-dimension assessment mechanism and dual-channel career development system, and expanded career development channels for employees.

Governance Achievements

• Improved corporate governance mechanisms, ensuring the balance and interactive relationship between the three meetings and the management.
• Improved risk management mechanism, enhancing risk prevention and control capacities.
• Strengthened internal compliance management, accelerated implementing anti-money laundering measures, and carried out self-discipline education.

Climate Goals & Targets

Environmental Challenges

• Complicated and grim economic and financial environments
• Risks in high energy consumption, high pollution or excessive capacity industries
• Maintaining customer information and asset security.

Mitigation Strategies

• Rigorously implemented national macro-economic policy and financial supervision requirements; actively explored capital-efficient development mode; strictly controlled credit loans in high-risk industries.
• Strengthened risk management mechanisms, improved risk prevention and control capacities, and maintained a non-performing loan rate of 0.61%.
• Enhanced security management of self-service equipment, improved customer transaction denying mechanism, and launched security education campaigns for electronic banking customers.

Supply Chain Management

Responsible Procurement

• Prioritizing suppliers with relevant environmental qualifications; incorporating energy conservation and environmental protection requirements into contract clauses.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI (2006 version), Additional Guidelines for Financial Service Industry, ISO26000, AA1000

Third-party Assurance: Bureau Veritas (IASE3000)

Sustainable Products & Innovation

• Green credit loan products
• Green financial products (e.g., emission rights mortgage loans, energy efficiency benefit mortgage loans)

Awards & Recognition

• Financial Institution with the Strongest Sense of Social Responsibility in China (China Banking Association)
• Award for Best Financial Institution with Strong Sense of Social Responsibility for Public Livelihood (China Banking Association)
• Award for Leading Figure in Social Responsibility Management (China Banking Association)
• Award for Best Financial Institution with Strong Sense of Social Responsibility for Green Finance (China Urban-rural Well-off Development Promotion Center and Cooperative Finance Committee of China Society of Cooperative Economics)
• Award for Top 10 Public Welfare Project of Financial Brands of China (Money Weekly)
• Best Bank of China (Finance Asia)
• Best Private Bank of China (Financial Times)
• Best Local Private Bank of China (Asia Money)
• Best Local Cash Management Bank of China (Asia Money)
• Award for Top 10 Financial Product Marketing Banks (The Bankers)
• Award for Top 10 Financial Product Marketing Campaigns (The Bankers)
• Platinum Award for Best Corporate Governance (The Asset Magazine)
• Top 50 Figures of Listed Companies (Harvard Business Review)
• Best Respected Enterprises (Economic Observer News)
• Award for Best Private Bank (Daily Economic News)
• Award for Banks with Best Brand Building in Asia (The 21st Century Economics Daily)
• China’s Annual Person of Overseas Investment (Chinese Chamber of Commerce in Hong Kong and China Central Television)
• Brand China Huapu Award (Chinese Chamber of Commerce in Hong Kong and China Central Television)
• Award for Banks with the Strongest Competitiveness (Phoenix TV and www.ifeng.com)
• Award for Banks with Best E-Bank Customer Experience (Information Research Center of Academy of Social Sciences)

Environmental Metrics

ESG Focus Areas

• Green finance
• Inclusive finance
• Consumer rights protection
• Climate change
• Corporate governance
• Human capital development
• Social contribution

Environmental Achievements

• By the end of 2022, the balance of green loans was RMB 355.357 billion, increased by RMB 91.515 billion over the end of the previous year, with a growth rate of 34.69%
• RMB 18.725 billion in carbon emission reduction loans issued, driving annual carbon emission reductions of 3.6436 million tons of carbon dioxide equivalent.
• Implemented the first ESG performance-linked loan in China's wind power equipment industry.
• Issued the first rural revitalization-themed green bond of a commercial bank in China and the first green bond of a commercial bank applicable to the China Green Bond Principles in China.
• Issued the first green bond of a joint-stock commercial bank overseas based on the China-EU Common Classification of Sustainable Finance - Mitigation of Climate Change.
• Saved 16.64 million pieces of paper by flexibly supporting paperless transactions on the online platform.

Social Achievements

• By the end of 2022, the balance of loans made to inclusive SMEs was RMB 678.349 billion, increasing by RMB 77.249 billion or 12.85% over the end of the previous year.
• Established an independent Inclusive Finance Department.
• Provided more than RMB 1.6 billion of indemnificatory housing mortgage loans.
• Issued 47.5277 million electronic social security cards and activated 20.5557 million electronic medical insurance certificates.
• Opened 1.6592 million personal pension fund accounts.
• Upgraded the “people + digital” service model and promoted aging-friendly and barrier-free transformation of service channels.
• Strengthened consumer rights protection, achieving a response rate of 98% within one hour to handle complaints.
• Invested a total of RMB 50.9019 million in 48 support projects in Wuding and Yongren counties, Yunnan.
• Donated RMB 94.76 million to external parties.

Governance Achievements

• Amended the Articles of Association to further ensure a clear corporate governance structure.
• Received grade A (the highest) for nine consecutive years in the evaluation of annual information disclosure for listed companies on the Shanghai Stock Exchange.
• Carried out 1,500 anti-corruption trainings, covering more than 160,000 employees.
• Conducted 1,268 anti-money laundering trainings, covering more than 380,000 employees.
• Strengthened supplier management and formulated the Anti-Commercial Bribery Commitment.

Climate Goals & Targets

Environmental Challenges

• Climate change risks (policy, legal, technology, market, reputation, physical, and long-term natural factors)
• Systemic financial risks (real estate, overseas institutions)

Mitigation Strategies

• Established a climate risk management system with an “Identification –Assessment –Response” framework.
• Incorporated climate change into risk management system.
• Implemented a green classification management system for corporate clients and loans.
• Strengthened due diligence and compliance review processes.
• Established a priority approval mechanism for green credit applications.
• Added “ESG and Social Environment Information” to the credit e-stack.
• Built a fortress-style comprehensive risk and compliance management system.
• Improved risk management models and preferences.
• Strengthened digital risk control capabilities (credit cloud platform, data foundation, data application, online financing service).

Supply Chain Management

Responsible Procurement

• Anti-Commercial Bribery Commitment
• Supplier social and environmental risk identification mechanism
• CMB Procurement E-Platform

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Heavy rains
• Flooding
• Heat waves
• Drought
• Rising sea levels
• Average temperature rise

Transition Risks

• Policy risks
• Legal risks
• Technology risks
• Market risks
• Reputation risks

Opportunities

• Resource efficiency
• Product and service development
• Market opportunities
• Adaptability

Reporting Standards

Frameworks Used: GRI Standards (2021 Edition), HKEx ESG Reporting Guide, SSE disclosure recommendations

Third-party Assurance: Ernst & Young Hua Ming LLP

Sustainable Products & Innovation

• Green loans
• Green bonds
• ESG wealth management products
• Supply chain finance products
• Inclusive finance products

Awards & Recognition

• Fortune Global 500
• Fortune China 500
• The Banker Top 1,000 World Banks
• Euromoney Best Bank in China
• Asiamoney awards
• Global Finance awards
• Institutional Investor awards
• The Asian Banker awards
• MSCI ESG rating (Grade A)