Industrial Bank (IB) Recognized as “ESG Best Practice Case” by China Association for Public Companies

On November 16th, at the China Listed Companies Sustainable Development Conference organized by the China Association for Public Companies, IB was selected as a “ESG Best Practice Case.”

As a pioneer in the ESG (Environmental, Social, and Governance) field, IB fully implements the new development concept, strengthening its ESG management. This approach explores the win-win realization of economic, social, and environmental benefits in banking, offering robust financial support to build a new development pattern and promote high-quality growth.

In terms of Governance (G), IB has optimized its top-level design, integrating ESG concepts with the group’s development strategy. It has comprehensively advanced the construction of the ESG management system. In 2022, the bank officially renamed its “Strategy Committee” of the Board of Directors to the “Strategy and ESG Committee.” It incorporated female directors and directors with ESG expertise into the board, establishing an industry-leading ESG management decision-making mechanism. This encourages the management to actively explore various channels to fulfill environmental and social responsibilities. In 2023, IB formulated the “ESG Policy” as the guiding document for sustainable development across the bank, creating an ESG management system with unique IB characteristics.

In the Environmental (E) dimension, IB focuses on “Green Banking,” one of its “Three Pillars,” emphasizing pollution reduction and carbon emission lowering. It accelerates the group’s “full green” transformation, effectively converting its green finance advantage into new momentum for high-quality development, supporting the construction of a “Beautiful China.” As of the third quarter of 2023, the bank’s green financing balance reached 1.86 trillion yuan, an increase of 250.1 billion yuan from the end of the previous year. The green loan balance amounted to 772.4 billion yuan, with a year-on-year increase of 135.3 billion yuan, accounting for over 30% of the total new corporate loans. The financing scale in the “carbon reduction” field reached 1.04 trillion yuan, making up 56% of the total green financing, up 7 percentage points from the end of 2022. This path reflects IB’s commitment to balancing commercial and environmental sustainability.

In the Social (S) dimension, IB steadfastly upholds the political nature and people-centric approach to financial work, continuously enhancing the accessibility, coverage, and satisfaction of financial services. This year, the bank has focused on promoting economic recovery, targeting key areas and weak links to intensify financial support. Its credit growth and rate remain among the top in the joint-stock banking sector. Particularly noteworthy is IB’s use of Fintech to support SMEs, aid rural revitalization, and contribute to shared prosperity. These efforts have paved a distinctive path in inclusive financial development. As of September 2023, IB’s inclusive finance loan balance neared 500 billion yuan, serving over 220,000 customers.

The Central Financial Work Conference emphasized the acceleration of building a financial powerhouse, steadfastly pursuing a path of financial development with Chinese characteristics, and promoting high-quality development of China’s finance sector. This sets the direction for a unique ESG development path for China’s banking industry. IB is committed to implementing the spirit of this conference, continuously refining the modern financial enterprise system with Chinese characteristics, and enhancing the modernization of its governance system and capabilities. It aims to remain a mainstay in servicing the real economy and a stabilizing force in financial stability, pioneering the development of an ESG management system with Chinese characteristics and contributing to the construction of a powerful financial nation.