Climate Change Data

Environmental Metrics

ESG Focus Areas

• Service quality improvement
• Employee well-being
• Social responsibility
• Environmental sustainability
• Anti-corruption

Environmental Achievements

• Replaced and recovered over 300 lamps in the head office building.
• Recycled approximately 5.2 tonnes of paper waste from the head office.
• Implemented energy-saving transformation and LED light replacement in the head office building, achieving significant energy savings.
• Green credit balance of RMB 6.832 billion.

Social Achievements

• Overall customer satisfaction score of 94.85.
• Organized more than 40 job fairs and recruited 148 employees.
• Provided 54 training courses for key business personnel and 7 sessions of “Training in the Bank Outlets” for front-line employees.
• Charity donation of RMB 13.69 million.

Governance Achievements

• Formulated detailed Management Measures on Anti-Money Laundering and Anti-Terrorism Financing.
• Organized anti-money laundering training for staff.
• Established a long-term anti-money laundering promotion mechanism.
• Implemented the “Two Studies, One Action” program to strengthen Party spirit and promote the “Five Have” culture.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Regular audits on financial situation, operating conditions, market performance, major company changes, and legal disputes.

Responsible Procurement

• Consideration of suppliers’ compliance with environmental and social laws and regulations.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix 27 “Environmental, Social and Governance Reporting Guide” of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, Sustainability Reporting Guidelines (GRI4.0), Opinions on Enhancing the Social Responsibilities of Banking and Financial Institutions issued by China Banking Regulatory Commission, Guidance on Corporate Social Responsibilities of China Banking and Financial Institutions issued by China Banking Association

Certifications: Null

Third-party Assurance: CECEP Environmental Consulting Group Limited

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Enterprise with AAA Rating of Credit
• Selected in the first batch of the “Shenzhen-Hong Kong Stock Connect” list
• Selected for the second time into “Hang Seng Corporate Sustainability Benchmark Index”

Environmental Metrics

Environmental Challenges

• relatively low core Tier-1 capital adequacy ratio (8.39%), Tier-1 capital adequacy ratio (9.57%), and capital adequacy ratio (12.54%) as of December 31, 2020; pressure of capital replenishment due to business expansion.

Mitigation Strategies

• proposed issuance of A Share Convertible Bonds to improve capital adequacy and broaden capital replenishment channels.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Serving the Real Economy
• Supporting Rural Revitalization
• Developing Green Finance

Environmental Achievements

• Green finance loan balance reached RMB32.3 billion, a 33% increase year-on-year. Won the “Award for the Green and Sustainable Commercial Bank of the Year” by The Asian Banker.

Social Achievements

• Supported rural revitalization with RMB55.3 billion in agriculture-related loans, a 13% increase year-on-year. Supported new agricultural business entities through various financing platforms.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

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

• Haoqi Lvye Loan (好企綠業貸)

Awards & Recognition

• Award for the Green and Sustainable Commercial Bank of the Year by The Asian Banker