Social contribution per share reaching RMB 9.80, up by 69.04% year on year -- Recently, Industrial Bank (IB) ranked top in the overall appraisal over the social responsibility performance of 16 listed banks by Securities Daily in this year with its two data leading far ahead, winning champion ships both in the aspects of social contribution per share and growth rate.
Assessing the degree of social responsibility of a listed company in a quantitative way, the social contribution per share is an important economic indicator to interpret the overall social responsibility performance of a listed company, and it can help the general public to learn, in a more all-round manner, the real value that a listed company creates for its multi ple interested p arties, exhibiting its economic contribution to the society in its own sustainable development.
IB Won for a Reason
The calculating standard for social contribution per share finds its origin in the Circular on Reinforcing the Performance of Social Responsibilities by Listed Companies and Issuing the‘Guidelines of Shanghai Stock Exchange for Environmental Information Disclosure of Listed Companies', promulgated on May 14, 2008 by Shanghai Stock Exchange. And to be specific, it's “based on the basic EPS created for shareholders by a company, and a company shall add the values created for other stakeholders, such as taxes paid to the state, salaries to employees, loan interest to banks and other creditors, and donation to the outside, and deduct other social costs caused by it due to environmental pollution”.
And, the performance parameters referred to by the “multi ple interested parties” of a listed company, including environment, shareholder, employee, customer, and people's livelihood, are just what IB has always exerted itself to construct and improve.
As the leader of sustainable finance in China, IB has always attached great importance to the protection of the rights and interests of stakeholders for a long period. In the 2011 Sustainable Development Report released by the bank, IB continue d advocating and practicing the model of social responsibility performance centering on “Sustainable Development”, sought the all -win result of enterprises, society and environment in a unique perspective with innovative practices, and upgraded the connotation and realm of corporate social responsibility continuously. The bank always believes: “The social responsibility of a commercial bank is not merely limited to creating profits, paying taxes and making donations. Moreover, the profounder meaning lies in that it should operate businesses in a correct way, timely learn and handle the questions that the stakeholders are concerned with, and drive other enterprises and even the whole industry to pay attention and perform social responsibilities actively by making full use of its special advantages and influence o n the economic and social development as a commercial bank, so as to extend the effect of social responsibility performance.”
Here lies the real reason for the bank to win “two championships” this time and relevant prizes relating to social responsibility and sustainable finance in the appraisals held by both domestic and foreign authoritative institutions before, such as the “Gold Prize of Sustainable Asian Bank of the Year”, the “Best Corporate Social Responsibility Institution Award”, and the “Best Corporate Citizen Award”.
In 2011, IB took the construction of a resource-conserving and environment-friendly society as an important focus for accelerating its business transformation. On one hand, it gave stable returns to shareholders with its outstanding business performance, met the value increase demands of customers with quality services, cared for the physical and mental health of employees and help them to develop themselves with a scientific management system, achieved win-win results with partners based on a financial resources sharing platform, and gave returns to the society by paying attention to the livelihood of people and public benefit causes. On the other hand, the bank took into full consideration its own risk tolerance and characteristics, adhered to the social responsibility practice model of “obtaining reasonable profits while bringing benefits to the stakeholders”, made active innovation in business mode, and pursued the win-win effect of economic benefits and social benefits by way of managing the environmental and social risks. Meanwhile, it further promoted green finance and actively cooperated with the CBRC to draft the Green Credit Guidelines, not only creating its own differentiated competitive edges and ensuring the concerted and sustainable development of all businesses in an all-round way, but also boosting the harmonious development of economy, society and environment.
Shutting down 412 Thermal Power Plants in Six Years
Maybe, the data will tell us more–from 2006 when the first energy-efficient financing project was implemented to the end of the first quarter of 2012, the emission reduced accumulatively in the projects supported by IB under its green finance program was equivalent to shutting down 412 thermal power plants of 100 MWs or stopping the running of 70,000 taxis in Beijing for 124 years.
The disclosed data indicated that, during this period, the green finance supported projects of the bank saved 61.1227 million tons of standard coal within China, reduced emission of 179.9542 million tons of carbon dioxide, 2.257 9 million tons of chemical oxygen demand (COD), 14,700 tons of ammonia nitrogen, 74,600 tons of sulfur dioxide, and 8,600 tons of oxynitride, utilized 17.4134 million tons of solid waste in an integrated manner, and saved 173.8180 million tons of water.
In the same period, the bank has accumulatively provided the green finance based financing loans worth RMB 129.008 billion to over a thousand enterprises, and the financing balance reached RMB 84.731 billion, growing by the rate over 200% each year. And a group of green finance customers has come into being preliminarily.
From 2009 when the first project compliant with “Equator Principles” - 2×300MW expansion project of Fujian Huadian Yongan Power Plant was launched officially to the end of the first quarter of 2012, IB, as the only current quator bank” in China, has examined the applicability of 673 loan projects to the Equator Principles, with a total amount of project investment up to RMB 910.6 billion involved. Specifically, 127 of them were approved as projects applicable to the Equator Principles, with a total investment of RMB 163.1 billion involving 126 customers. 37 loans have been extended by 18 branches of the bank. The first project in which the enterprise followed the Equator Principles out of its own will was implemented successfully in Xi'an in 2011, with a total investment of RMB 320 million. This signifies that the Equator Principles which are observed extensively in the world have gained wider recognition in China and that the practice of sustainable finance has been further deepened in China.
UP to now, IB has, in the field of green finance, developed two ranges of products regarding financing service and emission rights finance, fully meeting the diversified green finance service demands of customers.
IB believes that the social responsibility performance model based on “Sustainable Development”, constantly adhered to by IB, will keep boosting the Chinese banking industry to establish a social responsibility system that responds to the international competition pattern, assorts with the financial reform of China, and combines with the development strategies of commercial banks. And that common business prosperity and growth can be achieved by giving considerations to the interests of multi-parties, innovating in the green commercial model and assuming social responsibilities in a self-conscious and active way.