Recently, MSCI, the world's largest index company, announced its 2024 ESG rating results. China's Industrial Bank (CIB) was upgraded from AA to AAA, the highest rating in the global banking industry, with a score ranking in the top 3% of its global peers. It is also the only bank in China to have received the highest domestic banking rating for six consecutive years.
In recent years, environmental, social, and governance (ESG) has become an important "wind vane" and "reference system" guiding corporate sustainable development. CIB has innovatively built an ESG practice model of "aligning profits with ethics," integrating ESG initiatives with building a value-oriented bank, serving the "Five Major Topics," implementing new development philosophies, and exploring a China-style ESG development path. The bank actively promotes sustainable development concepts, contributing to the construction of a financial powerhouse.
In the environmental (E) dimension, CIB's practices in environmental indicators under the MSCI ESG rating system are leading the industry. CIB adheres to serving the real economy as its fundamental purpose, focusing on "carbon reduction, pollution reduction, green expansion, and growth," effectively linking green finance and transition finance, and supporting the green transformation and upgrading of traditional industries while fostering the growth of green emerging industries. As of the end of September, CIB's green financing balance reached RMB 2.18 trillion, an increase of 15.34% compared to the end of the previous year. The green financing balance in the "carbon reduction" field further increased to nearly RMB 1.23 trillion, accounting for over 50%. CIB's green loan balance, according to the People's Bank of China metrics, was RMB 943.8 billion, a 16.66% increase from the end of last year These loans support green projects that contribute to the annual savings of 10.16 million tons of standard coal, 24.13 million tons of carbon dioxide emissions, and 10.5 million tons of water
In the social (S) dimension, rating results show that CIB ranked among the top 5% globally in areas such as human resource development, privacy and data security protection, and inclusive finance. In terms of human resource development, CIB continues to uphold and promote its strategy of expert banking, placing significant emphasis on employee development and viewing talent as its primary resource. It is accelerating efforts to build seven specialized talent groups: digital, professional, international, versatile, high-end, comprehensive, and craftsman-type. The bank has established a talent echelon training and management system covering all development stages and hierarchical levels, adhering to a philosophy of diversity and inclusion, and striving to offer equal employment opportunities to qualified candidates. In terms of privacy and data security protection, CIB has established and improved its data security and privacy protection management system, enhanced mechanisms for safeguarding personal information and protecting privacy rights, defined the organizational structure and procedures for data security emergency response, and provided a reference plan for emergency response. In terms of inclusive finance, CIB actively upholds the political and people-oriented nature of financial work. It focuses on key areas and underserved segments of the real economy, such as technological innovation, rural revitalization, common prosperity, and inclusive finance for SMEs, bridging the "last mile" of financial services to promote sustainable socio-economic development. As of the end of September, CIB reported an increase of 14.74% in technology loans and 18.18% in inclusive finance loans compared to the end of the previous year, which has effectively supported the development of new productive forces and eased the challenges of financing difficulties and high financing costs faced by SMEs.
Sound and effective corporate governance is a critical guarantee for the sustainable development of commercial banks. In the governance (G) dimension, CIB has thoroughly implemented the principles of the Central Financial Work Conference, established a corporate governance philosophy for sustainable development, adhered to the principles of "aligning profits with ethics" and "achieving profits through ethics," and actively explored a localized ESG roadmap. The bank has built a top-down ESG governance framework spanning decision-making, management, and execution levels, forming vertical management of ESG issues to provide a solid foundation for advancing various ESG tasks. The board of directors is responsible for determining the strategic planning, major policies, and fundamental systems for sustainable development and ESG, bearing the ultimate responsibility for ESG management. Meanwhile, CIB comprehensively promotes the construction of its ESG management system, establishing an industry-leading ESG decision-making and management mechanism. It has developed a management framework featuring four modules: strategy, execution, performance, and communication. The bank has also outlined annual priorities for building its ESG management system, fully integrating ESG into corporate strategy, major decisions, daily operations, and employee conduct, continuously enhancing internal governance capabilities.