Climate Change Data

Environmental Metrics

ESG Focus Areas

• Green Banking
• Inclusive Finance
• Poverty Alleviation
• Employee Well-being
• Corporate Governance
• Environmental Protection
• Customer Service
• Community Development

Environmental Achievements

• Reduced greenhouse gas emissions by 12.52% to 162,600 tons compared to the previous year.
• Reduced per capita greenhouse gas emissions by 13.37% to 2.85 tons per capita.
• Reduced purchased electricity by 4.88% to 244,955.36 MWh.
• Reduced fuel consumption of official vehicles by 11.26%.

Social Achievements

• Waived service charges for personal RMB accounts, reducing service value by RMB2.813 billion.
• Reduced customer complaint rate to 2.12 per ten thousand, a year-on-year decrease of 0.41 per ten thousand.
• Invested RMB160,449,900 in employee professional skills development (47.74% increase from the previous year).
• Made total donations of RMB31.6586 million for poverty alleviation, student grants, disaster relief, and financial aid to minorities.
• Sent 67 employees to villages for poverty alleviation work, donating RMB24.2687 million (25.81% increase from the previous year), benefiting over 40,000 people.

Governance Achievements

• Implemented corporate governance in accordance with relevant laws and regulations.
• Conducted independent limited assurance of the report by PwC Zhong Tian LLP.
• Improved anti-money laundering management, submitting over 17,100 suspicious transaction reports.
• Strengthened comprehensive risk management, including market, operational, technology, liquidity, interest rate, and legal risks.
• Improved internal control and compliance, revising or adding 86 mechanisms and improving 15 systems.

Climate Goals & Targets

Environmental Challenges

• Loan risks associated with agricultural enterprises and related areas due to climate change.
• Maintaining a balance between economic performance and sustainable development.
• Managing risks in a complex economic and financial environment.

Mitigation Strategies

• Formulated Measures for Categorized Management of Environmental and Social Risks.
• Implemented differentiated policies for high-polluting, high-emission, and overcapacity industries.
• Strengthened comprehensive risk management system and risk control measures.
• Improved internal control and compliance mechanisms.

Supply Chain Management

Supplier Audits: 347 new suppliers submitted relevant documents.

Responsible Procurement

• Requires suppliers to include environmental and social responsibility performance in their documents.
• Advocates green procurement, prioritizing energy-saving and environmental protection products.
• Requires suppliers to provide documentary evidence of tax and social security fund payments.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (Core option), UN Sustainable Development Goals, SSE Guidelines on Environmental Information Disclosure of Listed Companies, Guidelines on Preparation of Report on Company’s Fulfillment of Social Responsibilities, Appendix 27 Environmental, Social and Governance Reporting Guide to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: ISO 14064-1:2006

Third-party Assurance: PwC Zhong Tian LLP

Awards & Recognition

• 19th among the “Top 500 Global Bank Brands” (The Banker)
• 1st place in the comprehensive RMB market outlook (Reuters)
• Annual Custody Bank Award and Best Block Chain Application Award (The Asian Banker)
• Best Financial Institution Innovation Center (The Asian Banker)
• 26th on tier-one capital among the “Top 1,000 World Banks” (The Banker)
• Award for Project with Best Productivity, Efficiency and Automation (The Asian Banker)
• 2019 China Private Banking Value-added Service Award and Private Bank with Greatest Development Potential in China (The Asian Banker)
• Gamma Award for Credit Card (Securities Times)
• Favorite Employer among Chinese College Students (51job.com)
• Best Automotive Financial Service Bank (21st Century Business Herald)
• Gold Award for Brand Marketing (Advertiser magazine)
• 2019 People’s Craftsmanship Product Award (people.cn)
• 2019 Excellent Supply Chain Finance Innovation Bank (The Economic Observer)
• Best International Business Service Innovation Bank (CBN)
• 2019 Top 100 Financial Services (ce.cn)
• 2019 Brand Building Bank (China Times)
• Green Development Award (people.cn)

Environmental Metrics

ESG Focus Areas

• Green Finance
• Inclusive Finance
• Poverty Alleviation
• Customer Service
• Employee Development
• Environmental Protection
• Corporate Governance
• Risk Management
• Social Responsibility

Environmental Achievements

• Reduced greenhouse gas emissions to approximately 164,300 tons (2.77 tons per capita)
• Increased green credit loan balance to RMB 205.425 billion (a 122.80% increase)
• Underwrote 19 green debt financing instruments with an underwriting amount of RMB 11 billion (a 132% year-on-year increase)
• Launched pilot programs for carbon-neutrality bonds and sustainability-linked bonds
• Implemented green office practices, including energy and water conservation measures
• Reduced hazardous waste discharge by 8.21%

Social Achievements

• Increased balance of inclusive loans to micro and small enterprises to RMB 366.867 billion (a 23.03% increase)
• Launched 208 targeted-assistance and charitable projects, donating RMB 11.6192 million
• Provided medical assistance to 113 children with congenital heart disease
• Organized 288 volunteer activities with 11,960 participants
• Improved customer experience through optimized online and intelligent services
• Exempted personal account service charges worth about RMB 2,748 million for about 11,003,500 transactions
• Improved employee satisfaction with human resources management (87.56% very satisfied or satisfied)

Governance Achievements

• Improved corporate governance rating
• Revised Articles of Association
• Strengthened internal control management system
• Optimized mechanism for the management of related party transactions
• Implemented the “Year for Enhancing Internal Control and Compliance Management” campaign
• Improved the consumer protection inspection and data analysis mechanism

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on the economy
• Complex and severe internal and external situations
• Climate change risks and opportunities
• Supply chain disruptions
• Maintaining asset quality
• Managing environmental and social risks

Mitigation Strategies

• Provided financial support to enterprises affected by the pandemic
• Implemented a comprehensive risk management system
• Developed green finance initiatives
• Strengthened environmental and social risk management
• Improved internal control and compliance management
• Implemented a diversified dispute resolution mechanism

Supply Chain Management

Supplier Audits: 521 suppliers assessed for environmental and social risks

Responsible Procurement

• Green purchasing
• Supplier sustainability requirements
• Environmental and social responsibility included in supplier qualification assessment

Climate-Related Risks & Opportunities

Opportunities

• Green finance
• New energy vehicles
• Energy-saving technologies

Reporting Standards

Frameworks Used: GRI Standards (Core option), SSE Guidelines, ESG Reporting Guide, Opinions on Strengthening Social Responsibilities of Banking Financial Institutions, Guidelines on Corporate Social Responsibilities of Banking Financial Institutions, ISO 26000, GB/T36001-2015

Third-party Assurance: PricewaterhouseCoopers Zhong Tian LLP (limited assurance)

Sustainable Products & Innovation

• Carbon-neutral bonds
• Sustainability-linked bonds

Awards & Recognition

• Numerous awards from various organizations, including the National Interbank Funding Center, China Central Depository & Clearing Co., Ltd., National Business Daily, Hurun Report, The Banker, Wind, Asian Private Banker, Shanghai Clearing House, China Banking Association, China Association of Small and Medium Enterprises, The Asian Banker, FX-Markets, China Foreign Exchange Trade System, The Economic Observer, 21st Century Business Herald, China Business News, The Economic Observer, China Business Journal, Hexun.com, Investor China, China Financial Certification Authority, Caijing magazine, Financial Times, China Best Employer Award, China Investment Network, Sina Finance, Chamber of Hong Kong Listed Companies, China Institute of Communications, China Academy of Information and Communications Technology

Environmental Metrics

ESG Focus Areas

• Governance
• Environment
• Social

Environmental Achievements

• Reduced greenhouse gas emissions by more than 500 tons through CITIC Carbon Account.
• Green credit balance stood at RMB334,082 million.
• Underwrote a total of RMB5,526 million green bonds.

Social Achievements

• Launched the “CITIC Carbon Account”, the first personal carbon account product in the industry.
• Increased the balance of inclusive loans to micro and small enterprises to RMB445.992 billion, up 21.57%.
• Implemented 190 paired assistance and charity projects, benefiting nearly 10,000 students.

Governance Achievements

• Renamed the “Strategic Development Committee” to the “Strategic and Sustainable Development Committee”, strengthening ESG work coordination.
• Became a supporter of the Task Force on Climate-Related Financial Disclosures (TCFD).
• Improved corporate governance structure and operation mechanism.

Climate Goals & Targets

Environmental Challenges

• Climate change risks (physical and transition risks impacting credit, market, liquidity, operational, reputational, and IT risks).
• Supply chain disruptions.
• Maintaining compliance with evolving regulations.

Mitigation Strategies

• Implemented a comprehensive risk management system with three lines of defense.
• Conducted stress tests to assess climate change impacts.
• Developed and implemented ESG management measures and policies.
• Strengthened supplier audits and risk management.

Supply Chain Management

Supplier Audits: 100% coverage of supplier risk information screening.

Responsible Procurement

• Priority procurement of energy-saving and environmental protection products; restricted suppliers with major environmental penalties.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather and natural disasters impacting collateral value.

Transition Risks

• Decarbonization impacting enterprise solvency.

Opportunities

• Developing green finance products and services.

Reporting Standards

Frameworks Used: GRI Standards (Core option), TCFD

Certifications: Null

Third-party Assurance: PwC Zhong Tian LLP (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• CITIC Carbon Account, Low-carbon Wealth Card, green bonds, and other green financial products.

Awards & Recognition

• Model Unit in the Green Bank Evaluation, Global Green Finance Award, Green Financial Pioneer Award, Most Socially Responsible Bank of the Year, and others.

Environmental Metrics

ESG Focus Areas

• Green Development
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Total emissions reduction exceeded 10,000 tons
• Green loan balance reached RMB 459.0 billion (37% YoY increase)
• Underwrote the first sustainability-linked panda bond
• Established the “CITIC Green Credit Bond Basket”
• CITIC Carbon Account user base exceeded 8 million with cumulative emission reduction of over 10,000 tonnes

Social Achievements

• Loan balances for strategic emerging industries, medium- and long-term manufacturing, and inclusive finance increased significantly YoY
• RMB 545.1 billion inclusive loans to micro and small businesses (22% YoY increase)
• RMB 560.4 billion agriculture-related loans (15% YoY increase)
• Total donations RMB 117.351 million
• 804 volunteer activities
• 12,570 public education and outreach activities

Governance Achievements

• Improved corporate governance structure
• Strengthened internal supervision
• Implemented a clawback and rebate policy for performance-based pay
• ESG integrated into risk management system
• Received multiple awards for ESG practices and corporate governance

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on business and the real economy
• Supply chain disruptions
• Maintaining high-quality development while managing risks

Mitigation Strategies

• Incorporated climate change into risk management system
• Developed alternative sourcing strategies
• Improved risk management system
• Strengthened ESG management

Supply Chain Management

Supplier Audits: 76 key suppliers

Responsible Procurement

• Green procurement
• ESG factors incorporated into supplier selection

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, natural disasters

Transition Risks

• Decarbonization costs, regulatory changes

Opportunities

• Growth in green finance, development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards (2016 and 2021), TCFD

Certifications: ISO 27001

Third-party Assurance: KPMG Huazhen Certified Public Accountants

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• CITIC Carbon Account
• Green loans
• Green bonds
• Sustainability-linked bonds

Awards & Recognition

• Ranked 20th on The Banker's Top 500 Banking Brands
• Ranked 19th on The Banker's Top 1,000 World Banks
• Numerous other awards for ESG practices and corporate governance

Environmental Metrics

ESG Focus Areas

• Green Financing

Environmental Achievements

• Established a green financing framework aligned with ICMA Green Bond Principles (GBP) 2021 and LMA/APLMA/LSTA Green Loan Principles (GLP) 2023, aiming to finance projects in renewable energy, clean transportation, and green building.

Social Achievements

• Not disclosed

Governance Achievements

• Implemented a robust ESG risk management process, including pre-lending review and post-lending monitoring, with a differentiated management approach for different customer ESG risk profiles. All eligible assets are subject to regular review.

Climate Goals & Targets

Environmental Challenges

• Inherent E&S risks associated with construction and manufacturing processes (energy use, air and noise pollution), although risk mitigants are in place.

Mitigation Strategies

• Integrated appropriate ESG risk due diligence, pre-lending review, post-lending monitoring, and a differentiated management approach based on customer ESG risk profiles. Risk mitigation measures are taken if major ESG risk events occur.

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: ICMA Green Bond Principles (GBP) 2021, LMA/APLMA/LSTA Green Loan Principles (GLP) 2023, UN Sustainable Development Goals (SDGs), EU-China Common Ground Taxonomy (CGT)

Certifications: LEED Gold, BREEAM Excellent, Chinese Green Building Evaluation Label (GBL) 3 stars, BEAM Plus Gold

Third-party Assurance: Independent third party for allocation and impact reporting

UN Sustainable Development Goals

• SDG 7
• SDG 9
• SDG 11
• SDG 13

Projects contribute to affordable and clean energy, industry, innovation and infrastructure, sustainable cities and communities, and climate action.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed