Climate Change Data

China Merchants Bank Co., Ltd.

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:44.98 ten thousand tons of CO2 equivalent (Scope 1 and 2)
Scope 1 Emissions:2.21 ten thousand tons of CO2 equivalent
Scope 2 Emissions:42.77 ten thousand tons of CO2 equivalent
Scope 3 Emissions:300.68 ten thousand tons of CO2 equivalent
Total Energy Consumption:740,895.34 MWh (externally-acquired electricity)
Water Consumption:256.28 ten thousand tons (total water consumption)
Waste Generated:2.41 ten thousand tons (total amount of non-hazardous waste)

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Launched China Merchants Bank Green Finance brand and established a five horizontal and seven vertical green product and service system.
  • Reduced electricity usage by 11.28% at the Head Office building compared to the previous year.
  • Three branches received carbon-neutral certificates from local carbon exchanges.

Social Achievements

  • Actively served the country’s major regional development strategies.
  • Increased resource input and differentiated policy empowerment, supporting the economic development of key regions.
  • Supported the construction of a modern Chinese industrial system.
  • Comprehensively strengthened consumer rights protection.
  • Strongly supported rural revitalization.
  • Actively carried out charitable activities, with a total donation amount of RMB115 million throughout the year.

Governance Achievements

  • Officially renamed the Board of Directors’ strategic committee to the Board of Directors Strategic and Sustainable Development Committee.
  • Enhanced employee care and improved the cadre selection and training system.
  • Strengthened the top-level design of digital transformation.

Climate Goals & Targets

Environmental Challenges

  • Climate change impacts on credit portfolio (increased credit risk among high-carbon sector clients).
  • Extreme weather conditions causing potential business interruptions.
  • Environmental (climate) change impacting market prices of derivatives.
  • Failure to keep up with national and industry policies related to carbon peaking and carbon neutrality.
Mitigation Strategies
  • Aligning with national 14th Five-Year Plan and Carbon Peaking and Carbon Neutrality targets.
  • Conducting risk assessments for extreme weather and seismic events.
  • Staying abreast of innovations and offerings at major carbon and environmental trading platforms.
  • Diligently studying policies and regulatory requirements related to carbon peaking and carbon neutrality.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather conditions
Transition Risks
  • Regulatory changes, market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards (2021 edition), HKEX Environmental, Social, and Governance Reporting Guide, SSE’s disclosure guidelines on sustainability, TCFD

Certifications: ISO 14001:2015 (GB/T24001-2016), ISO 50001:2018 (GB/T 23331-2020), ISO 45001:2018 (GB/T45001-2020)

Third-party Assurance: TÜV SÜD Certification and Testing (China) Co., Ltd.

Sustainable Products & Innovation

  • Green deposits
  • Distributed Photovoltaic Framework Credit Products
  • Green and low-carbon themed credit card
  • New Energy Vehicle Consumer Installment Plans
  • Carbon-linked loan products

Awards & Recognition

  • Various awards listed in the report