On June 28, the Conference for Release of 2016 CSR Report for Chinese Banking Industry and the Commendation for Corporate Social Responsibility of China Banking Association (CBA) was held in Beijing. As the first equator bank in China, IB once again harvested the “Annual CSR Award” by virtue of its excellent practice of corporate social responsibility, making it the only shareholding commercial bank that win this award for seven consecutive times.
Meanwhile, IB was also rewarded the “Annual Corporate Social Responsibility Award for Special Outlets” and the “Annual Best Management Award of Corporate Social Responsibility”.
Responsibilities make finance warmer
To win the Annual CSR Award, Industrial Bank (IB) has taken the initiative to combine the corporate social responsibility (CSR) into the strategic and commercial mode of the company in an organic and innovative way, fully considered the requests of stakeholders, greatly enhanced the exchanges among shareholders, clients and the community and other stakeholders. IB is committed to building a “warm bank” with fine comprehensive financial ability.
Stick to the path of green finance. As the pioneer and leader of green finance in China, in 2006, IB was the first to open up green finance market in China and has actively disclosed energy saving and emission reduction indexes every year since then. After a decade’s exploration and practice, it has formed a complete and multifarious green product service system covering green financing, green leasing, green trust, green fund, green investment green wealth management and green consumption. Green DNA has been deeply rooted in the operation, management, business development and client services of IB. By the end of May 2017, IB has accumulatively provided green financing fund of RMB 1.2371 trillion for more than 12 thousand energy saving enterprises or projects with the non-performing asset (NPA) rate of only 0.37%; the asset quality has exceeded the average level of the bank and the industry; the projects supported could save 28.76 million tons of coal equivalents each year, reduce 83.05 million tons of carbon dioxide, 2.34 million tons of chemical oxygen demand (COD) and 0.76 million tons of sulfur dioxide, comprehensively utilize 44.62 million tons of solid waste and save 407.84 million tons of water per year. In the course of developing green finance, IB has always adhered to an open and cooperative attitude towards the interbank cooperation in green finance, and shared with the peer its decades of advanced experience in professional green finance knowledge, risk control skills, management system and system construction, so as to jointly push forward the development of China’s green finance.
Inclusive finance gives warmth. By deeply combining and innovating in finance and technologies, the interbank platform initiated by IB has achieved resource sharing and mutual benefits among small- and medium-sized financial institutions and has built a network connecting nearly 800 small- and medium-sized financial institutions and 46,000 outlets. It provides more than 300 small- and medium-sized financial institutions with information system construction and maintenance service, addresses the payment difficulties of rural financial institutions, saves social resources for re-input, and expands financial services to more second-tier or third-tier cities and rural areas.
IB actively lays down the service profile, provides startups and micro- and small-sized enterprises with financial services that cover their life span, actively explores the construction mode of “credit factory” for them, continuously expands the scope and reach of services for them and allocates more business resources to them according to different regional characteristics. By the end of May 2017, the loan balance for micro- and small-sized enterprises has reached RMB 519.3 billion with the loan acquisition rate of 95.17%.
Meanwhile, IB has actively participated in social welfare activities and formed a charity system of “students help fund”, “disaster fund” and “poverty relieving fund”. According to incomplete statistics, IB has donated totally over RMB 120 million to the society in the past three years, in which RMB 34.99 million of charitable donations was made in 2016. It is honored by China Charity Federation as “Ten Most Caring Enterprises of China in 2016”.
Enjoyable Life reflects care. In order to meet the practical financial demands of the graying society, IB is the first to include pension finance into its statistical business with an aim to provide the aged clients with quality and exclusive financial services and meet the growing demands for pension services. IB also set up the “Enjoyable Life” club to build a platform to the aged clients to learn, communicate with each other, have fun and enrich their spiritual world. IB constructed the “Enjoyable Life Senior Academy” to offer senior clients a way of communicative education covering cultural knowledge, art, recreation, provision for the aged, healthcare and laws. Now the number of VIP clients of “Enjoyable Life” has exceeded 1.4 million with financial assets under management exceeding RMB 700 billion.
Poverty alleviation solves financing dilemma of small- and medium-sized enterprises
In recent years, IB has gone deeply into the front line of poverty alleviation, granted subsidies according to the actual conditions, set up special industrial financial centers, promoted new products such as the mortgage with “two rights”, industrial funds through the cooperation of banks and the government, governmental risk compensation fund loans, while keeping intensifying the financial supports for underdeveloped areas. The balance of poverty alleviation of the bank now totals RMB 3.8 billion.
The Huanghe Road Sub-branch of IB Urumchi Branch and Shaxian Sub-branch of Sanming Branch won the “Annual Corporate Social Responsibility Award for Special Outlets” and the “Annual Best Management Award of Corporate Social Responsibility”.
Xinjiang is located at the northwest corner of China and is an aggregation of many ethnic nations. The Urumchi sub-branch conducted deep cooperation with the Labor and Social Security Bureau of Urumchi to sign a small-sum guaranteed loan cooperation agreement with the Social Security and Employment Guidance Bureau of Urumchi so as to provide small-sum guaranteed loans to unemployed personnel. After only a few years, the Huanghe Road sub-branch has accumulatively raised a small-sum guaranteed fund of RMB 215 million to offer small-sum guaranteed loans for local unemployed personnel and farmers. By the end of 2016, a total of RMB 245 million of fund has been granted to 4565 people and helped 43000 people to have jobs.
In 2016, in order to allow more farmers and herdsmen to enjoy favorably-interested small-sum guaranteed loans, the Huanghe Road sub-branch actively launched the “one-stop” on-site services. Xinjiang is an extensive and less populated place where most clients are living in the suburbs. In order to address the problem of difficult accessibility, the account managers of the bank often drive a forty or fifty kilometers of slushy road in freezing days to the Banfanggou Town, the Shuixigou Town, the Changshanzi Town in Midong District, the Gumudi Town and the Tiechanggou Town to handle with loan application business for clients on site.
Shaxian has long been known as an active place of commercial and rural financial activities in Fujian. In December 2011, Shaxian was designated as one of the 6 national pilot zones for rural financial system reform. Fujian Provincial Technology Reform Fund is a private equity fund of limited partnership led by financial capitals, participated by IB and applies market operation to support the technical reform projects of enterprises in Fujian. The capitals of this project are specially used to support the technical reform projects with the financing cost as low as 3% which can effectively reduce the financial burden of enterprises. Luo Jingan, the head of IB Shaxian sub-branch, has sensitively smelled the function of this product in greatly supporting the upgrade and reconstruction of local enterprises. So the bank sorted out the local clients based on the list of technology reform, visited major clients requesting technology reform and actively boosted project implementation. With unremitting efforts, Fujian Qingshan Paper Co., Ltd. obtained RMB 200 million of technology reform fund to support the reform of original food packaging paper technology with the capacity of 500,000 tons each year.
To alleviate difficult and expensive financing of small- and medium-sized enterprises, Luo always visited difficult enterprises to know their operation conditions and brainstorm solutions for them. At the beginning of 2016, Qiaodan Industrial Corporation shut down the production due to the lack of capital. IB issued restructured loans to relieve its burden and help it restore the production as soon as possible. In February 2017, Qiaodan Industrial Corporation officially restored the production with 60 employees returning to their posts. Now the first isoleucine production line has been reopened, expecting 800 tons of output, and nearly RMB 90 million of revenue, or RMB 3 million of tax, incurred in 2017. According to statistics, in 2016 the Shaxian sub-branch issued 33 counts of restructured loans for small- and medium-sized enterprises, totaling RMB 98.36 million.
As a bank originating in Fujian, IB never forgets its original purpose and binds itself to its hometown. Report has it that in 2012 through 2015, IB donated RMB 7.5 million each year (totally RMB 30 million) to support the poverty alleviation of Zhenghe County, a national-level undeveloped county. In 2016 through 2020, the poverty alleviation fund is expected to reach RMB 1 million to support the poverty alleviation work of 23 key counties in Fujian. For all these years, IB has actively supported the poverty alleviation work of major undeveloped villages. By following the working mode of “dispatching officers to villages, designating a department to offer help and binding capitals”, IB dispatched backbone officers to local villages. Right now IB has invested totally RMB 3.7 million to reconstruct local transportation and water infrastructure and offer help to local needy residents.