THINK ALIKE, GROW TOGETHER

2020 REPORT OF CORPORATE SOCIAL RESPONSIBILITY OF BANK OF Environmental/Social/Governance CONTENTS MANAGEMENT Improving Corporate Governance 20

Deepening Accountability Management 21 Chairman's Address 4 Strengthening Risk Management 23 President's Address 6

PRACTICE

01 02 03 04

Assuming the Mission to Advancement of High- Coordinated Promotion of Ecological Jointly Creating a Boost High-quality Economy standard and Environmental Protection in a Harmonious and Better Development Digital Transformation Led Green and Low-carbon Way Life under Human-oriented by Innovation Principle

Serving Key National Strategies 26 Enhancing Development of Financial Science 34 Advancing Green Finance 40 Commitment to Sustainable Growth of and Technology Employees 44 Deepening Inclusive Financial Services 28 Performing Green Operation 41 Connecting Rural Rejuvenation Effectively 30 Creating Brand New Finance Ecology 35 Protecting Consumer's Rights and Interests 47

Reinforcing Prevention and Control of Science Actively Carry Out Social Public Welfare 50 and Technology Risks 36

STRATEGY ESG Disclosure Strategic Development Vision 8 Governance 52 Corporate Culture Development 9 Environmental 52 Talent Cultivation Planning 10 Social 54

Key Performance 60 Special Topics Independent Assurance Report 63 Support to Epidemic Prevention and Control to Ensure "Six 12 Stability" and "Six Security" in Place Appendix Targeted Poverty Alleviation to Win the Decisive Battle and Build 16 Notes to Report 66 a Moderately Prosperous Society in All Respects Feedback Form for Readers 67 4 Bank of Chongqing 2020 Report of Corporate Social Responsibility (Environment, Social, Governance) 5

Chairman's Address

2020 was an extraordinary year in the areas and peasants. In the critical battle against cost efficiency. The Bank persisted in the development history of Bank of Chongqing. poverty, the Bank provides package products main principle of operation compliance, built Confronting with the COVID-19 pandemic of poverty alleviation by credit loan, donation overall risk prevention and control capacity, impact and complex situation both at home and consumption. Under the concept of green and reinforced intelligent risk control so that and abroad, we took Xi Jinping's Thought development, the Bank adopted the "Equator the credit approval and post-loan management on Socialism with Chinese Characteristics in Principle", diversified green service modes got further improved and upgraded plus a the New Era as the beacon, and under the and better supported the sectors like energy good level of asset quality among the public strong leadership of Chongqing Municipal conservation, environmental protection, clean listing banks. The Bank promoted corporate CPC Committee and Chongqing Municipal energy and ecology governance. Focusing on governance according to law, enhanced People's Government, gathered force the national major strategies, the Bank fully institutional construction, tightened the together with perseverance and confidence participated in the construction of Chengdu- superintendence network and streamlined the to overcome all difficulties. We sustained the Chongqing dual-city economic circle and internal control compliance system. stable, progressive and upward momentum the regional development. We uphold the of development with the total assets hitting a philosophy of "Think Alike, Grow Together" Thanks to the extensive trust and support of historic high of CNY560 billion. In the World to create value and help clients succeed by our investors and clients, the Bank of Chongqing Top 500 Bank Brands released by the British financial services of higher quality, efficiency was successfully listed on the A-share The Banker, the Bank of Chongqing ranked and professionalism. market on Feb. 5, 2021 and became the 206th, 53 places higher than the previous first city commercial bank of "A+H" listing year, which heralds a new advent of high- Over the past year, we tackled with in West . In the new development quality development and starts a new journey bottleneck issues and constantly stage, the Bank will actively take part in of the Fourteenth Five-year Plan. strengthened the "driver" of reform and the new development pattern, assume the innovation. We advanced the reform and new development missions, adhere to the Over the past year, we succeeded in innovation of the entire bank, formulated underlying principle of seeking progress while carrying out the assignment and supporting the Fourteenth Five-year Plan and took the keeping performance stable, uphold the theme the victory of the critical battle against benchmarking improvement action and the of high-quality development, follow the main the pandemic. We quickly responded to three-year reform action plan as a whole, path of deepening structural reform at supply the tough tests, timely granted emergency exploring the high-quality development side, take reform and innovation as the prime loans to the epidemic prevention guarantee path with our own characteristics. A digital mover, and keep strengthen the capabilities entities, and built up the invulnerable defense innovation leading group was formed to push of competition, innovation, control, influence line to safeguard the life and health of our forward digital innovation and implement 104 and risk resistance so as to guarantee a good employees and clients. We fully secured the science and technology programs, which were start of the Fourteenth Five-year Plan and "Six Stability" and "Six Security" in place, highlighted by the Digital Smart Mobile Bank, celebrate the 100th Anniversary of CPC by actively implemented the relief and beneficiary Client Portrait by Big Data, Fengling Smart outstanding achievements. policies, supported micro and small private Assessment, Cash Management System, businesses with preferential interests, and etc. and incubate the independent IPR results adopted diversified means to contribute to the that effectively enabled business growth, risk work resumption of all walks of life. control and management improvement.

Over the past we enhanced our capacity Over the past year, we worked hard to and improved clients' "Sense of Gain" by safeguard the baseline and strengthened the financial services. The Bank concentrated "firewall" for overall risk prevention and on the development of inclusive finance and control. The Bank followed the requirements LIN JUN constantly resolved difficulties of difficult, on preventing and mitigating major risks, costly and slow financing for the micro and strengthened overall risk management, and Chairman of the Board of Directors small businesses and the agriculture, rural achieved balance among safety, liquidity and Bank of Chongqing Co., Ltd. 6 Bank of Chongqing 2020 Report of Corporate Social Responsibility (Environment, Social, Governance) 7

President's Address

In 2020, the Bank of Chongqing to Real Economy", and totally granted finance and microfinance is taking shape. thoroughly studied and implemented CNY3.9 billion of dedicated refinancing Xi Jinping's Thought on Socialism fund, CNY2 billion special financial debt Technology empowers digital with Chinese Characteristics in a New of microloan, CNY4.63 billion of inclusive transformation. The Bank sticks to Era, fully executed the decisions and finance credit loan to micro and small the strategic orientation of digital deployments of Chongqing Municipal businesses and CNY4.28 billion of initial transformation, and enables high-quality Party Committee and Chongqing loan to micro and small businesses. Over development by financial science and Municipal People's Government, resolutely the past year, the Bank transferred a technology. The financial sci-tech, data secured all regulatory requirements in portion of profit of CNY1.52 billion by governance and financial standardization place, guaranteed robust development various means to corporate entities. are promoted as a whole, the Big Data and safe operation, and forestalled risk intelligence innovation action is about to of compliance. All the Bank's employees Deeply-rooted in real economy with finish, and the new technology application were unified to work arduously, realize support to major strategies: the Bank scenarios like 5G, blockchain and robot high-quality development, leap forward concentrated on the major strategies of are increasing dramatically. The Bank to a new height and thus deliver a good building Chengdu-Chongqing dual-city integrates all data resources, propels report on the results of the Thirteenth economy circle and a new west land- data application by 36 scenarios, creates Five-year Plan. sea corridor, and proactively participated and updates the client tag "portraits" in the new development pattern of "dual and improves the client's experience of By the end of 2020, the Bank had total circulations". The Bank signed a strategic science and technology. assets of CNY561.641 billion with a cooperation agreement with Bank of year-on-year increase of 12.1%, the Chengdu to perform concrete cooperation In 2021, the Bank will adhere to the loan balance of CNY283.2 27billion, on interbank credit granting, bond party leadership, carry forward the up 14.5%, the deposit balance of investment, counter connectivity, etc. mission of practicing social responsibility, CNY314.500 billion, up 11.9% and the The Bank also strengthened the financial get deeply involved in the major strategies annual net profit of CNY4.56 billion, up service to the new areas and vigorously of "dual circulations", Chengdu-Chongqing 5.7% plus only 1.27% of non-performing supported the construction of West China dual-city economic circle, expansion of rate. All the major business indicators (Chongqing) Science City and Liangjiang domestic demand, etc., advance the meet the regulatory requirements. During New Area where the credit amount Bank's high-quality development through the period of the Thirteenth Five-year issued to these two areas increased by the service to real economy, assistance Plan, the Bank's asset scale gained an 30% in 2020. to the growth of micro and small accumulative growth of over 70%, and businesses and support to consumption the profitability increased by over 50%. Serving people's livelihood and practicing upgrading, further assume the missions The Bank continuously improved the asset inclusive finance: the Bank gave full of a state-owned financial corporation, quality, and maintained fast and robust support to the decisive battle against and stride forward to a first-class growth of scale, performance and quality. poverty and effective connection with public-listed commercial bank in China rural rejuvenation, and fully completed the featured with "sustained origin, distinctive Combating the pandemic at full capacity three-year action plans (2018-2020) characteristics, safety, robustness and for "Six Stability" and "Six Security": with proliferating loan balance for targeted excellent value". the Bank holistically planned epidemic poverty alleviation and rural rejuvenation. prevention and operation management, The online service, management and fully implemented the package financial office affairs are booming that improve policies on work resumption, developed the financial service capability of digital RAN HAILING over 30 measures for both epidemic inclusive finance. Driven by the R&D of prevention and work resumption, advanced scenario-based and featured products, President "Four Optimized Services, Direct Access the digital product system of inclusive Bank of Chongqing Co., Ltd. 8 Bank of Chongqing 2020 Report of Corporate Social Responsibility (Environment, Social, Governance) 9

STRATEGY

Strategic Development Vision Corporate Culture Development

Talent Cultivation Planning

Strategic Development Vision Corporate Culture Development

To become a first-class public-listed commercial bank in China featured with "Remaining true to the origin and source, distinctive characteristics, safety and robustness, and value excellence". "Think Alike, Grow "Think Alike, Grow "Think Alike, Grow Together" Together" Together" with clients with employees with the society

Remaining true to the origin and source: aspects of product, channel, management, Value excellence: Driven by value creation, "Origin" refers to the real economy while technology, mechanism, culture, talent, etc., the Bank pursues value excellence. Setting "source" refers to the regional development. provides optimized and featured services the premium quality as the development The Bank of Chongqing (hereinafter referred with enhanced support such as green goal and internal requirement, the Bank Clients are the origin and root of the long- Employees are the core and foundation of the The care and support from all walks of life to as the Bank) assumes the mission of finance, micro and small businesses finance, keeps ameliorating structure in an all- term sound and sustainable development long-term sound and sustainable development is the prime mover and enabler of the long- serving the real economy, proactively gets retail finance, culture and tourism finance, round manner, well integrates scale, quality of the Bank. As a modern financial service of the Bank. The Bank builds a broader and term sound and sustainable development of involved in the development of national and opening-up finance and green finance, and and earnings, sharpens the comprehensive provider, the Bank always upholds the opener platform of learning and exchange the Bank. As the earliest local joint-stock regional strategies, remains true to the original thus continuously improves the influence and competitive edge, uplifts the holistic value "client-centered" principle, innovates financial for employees, establishes a scientific and commercial bank founded in West China and aspiration with perseverance, adheres to the competitiveness of products. in a balanced way, realizes the maintenance products, creates high-quality financial all-covering system of career development, the upper reaches of the Yangtze River, orientation of "serving local economy, serving and appreciation of state-owned assets, and service system, helps clients gain wealth by enriches employees' life in spare time, the Bank has always been committed to micro and small businesses, serving urban and Safety and robustness: The Bank creates even larger value for investors and professional and distinctive services, provides and supports their personal development, the triple strategic orientations of "bank for rural residents", makes new achievements strengthens risk awareness, fosters risk clients. them with comfortable and convenient which improve employees sense of gains, locality, bank for micro and small businesses by holding our grounds and explores new culture, thinks more about the baseline, service experience, wins their trust and satisfaction and identity, build a team with and bank for citizens". Actively engaged in development space by better services. and tightens the boundaries of risk control. Through general improvement of fundamental support and fosters good atmosphere of competency, ambition, accountability and regional economic development, the Bank Through the advancement of overall risk capabilities, the Bank has realized the service mutual complementation and growing-up achievement, and inspire their devotion breaks the bottleneck of "hard, costly and Distinctive characteristics: The Bank goes management and the general planning and with distinctive characteristics and state- together. enthusiasm, motivation of work and slow financing" to micro and small businesses deep into the distinctive and differentiated management of credit risk, operational risk, of-art professionalism, the management creativity. and private sector, vigorously boosts poverty development, makes use of the resource liquidity risk, market risk, reputation risk, of profoundness, safety and efficiency, alleviation and rural rejuvenation, continues endowment and market environment owned etc. the Bank endeavors to achieve robust the development with resilient operation fulfilling the social responsibility and propels by "one municipality and three provinces", operation and safe development. and proliferating value, and the brand of the social public welfare, thus gaining more advances reform and innovation in the trustworthiness and excellence. social recognition, creating better corporate brand image and forming a strong driving force for high-quality development. 10 Bank of Chongqing 2020 Report of Corporate Social Responsibility (Environment, Social, Governance) 11

Talent Cultivation Planning During the Fourteenth Five-year Plan period, the Bank will competency analysis and personal ability analysis, the "post- persist in the orientation of high-quality development, focus on ability-training course" combined system will be created. A well- quality improvement and innovation capacity building, enhance proven and efficient mechanism on selecting, training, certification, practice and exercise, further improve the training management management and incentive of internal trainers will be set up to system, and create well-established mechanism of talent improve both quantity and quality of internal trainers, develop cultivation and development. the culture of internal teaching and sharing, and create a team of internal trainers with premium quality. The Bank is to improve the dynamic regulation and control approach for talent cultivation in line with the overall strategy, The Bank is to adopt diversified measures such as assessment, and ensure the talent cultivation plans closely tied with the tutorial system, rotational training and action learning, focuses on the overall strategy and main businesses. Five supporting platforms building of a management system of all-directional training including of learning, examination, research, tracking and assessment the training of management staff at all levels, capacity building of will be established with all-round promotion and perfection of professional staff, training of new staff, and coverage of all the the central training programs. The online learning management employees. Through standardized, systemized and branded training system will be utilized to uplift training efficiency, form a perfect programs, the normalized pattern of talent empowerment will take knowledge management system and implement training programs shape. The construction of University of Bank of Chongqing will be in all aspects. By joint construction of learning ecology, the Bank accelerated, which serves as a good partner of business departments targets at a comprehensive learning organization. and combines the learning and development programs with the Bank's strategies and businesses. With focus on the major target The Bank will make the entire training system more organized, groups, building of talents cascade and consolidation of leadership, a pertinent and effective, and improves the headquarter-branch- professional training management system will gradually be formed, sub-branch three-tier hierarchical training system where the turning the university into the propeller of strategic transformation and Head Office gives priority to the overall planning and training of an important base of talent training and development for the whole senior talents. The concrete and practical systems of training Bank. courses and teaching staff will be established to meet the demand, and on the basis of overall strategic analysis, post ◆ The Bank organized the talent work meeting and held the unveiling ceremony for the University of Bank of Chongqing on Feb. 7, 2021. University of Bank of Chongqing About University of Bank of Chongqing

To realize the high-quality development in the complex exterior Requirements on talent cultivation environment and increasingly intensified competition, the Bank must take reform and information as the prime mover, constantly Motto of University of Bank of Chongqing We should consolidate the policy of guidance by talent planning so that the talent strategy conforms to the Bank's strengthen the competitiveness, innovation and cohesion, and Fun in Study • Fun in Sharing • Grow strategic planning, the talent scale keeps up with the Bank's strategic pace and the talent structure fits in with carry forward the new mission and responsibility of a financial the Bank's transformation and development. SOE in the new adventure of building a modern socialist country Together in all respects. We should improve the "talent supply chain" for talents attraction and cultivation. We should make good use of the existing talents, expand talent recruitment and enhance talent training. The corporate competitiveness is ultimately dependent on the talent. For the purposes of maximizing the potentials of We should build a platform of talent use to give them a bigger stage of performance and growth, so that all kinds talents, cultivating the competent teams of management staff of talents can utilize their wisdom and skills in the Bank's strategic adventure of high-quality development. and professional talents, and forming the power engine of the organization, the University of Bank of Chongqing emerges as the Targets and orientation of university We should create a favorable environment to retain talents, better the service and incentive for them, and times require. Serve the strategies for stronger constantly improve the assessment methods so that the talents can have the pride of creating value, the sense of achievement of contributing to the society, and the honor of being respected. We must retain the talents by The university is a qualitative leap-forward step based on comprehensive competitiveness career, affection and treatment in the real sense. the traditional training, and provides a number of professional Incubate the talents for stronger prime mover and systematic strategy-related courses and solutions. With of development We should invent an innovative digital approach of talent management, advance its digital transformation, and in concentration on the key target groups, cascade talents cultivation light of the reform of management mode build a new-generation HR digital management system. and leadership improvement, the university will gradually form a Popularize the culture for stronger cohesion of specialized training management system that serves as a booster the Bank of the Bank's strategic reform and an important base for talent --Lin Jun, Chairman, Bank of Chongqing Co., Ltd. training and development. 12 Bank of Chongqing 2020 Report of Corporate Social Responsibility (Environment, Social, Governance) 13

SPECIAL TOPICS Support to Epidemic Prevention and Control to Ensure "Six Stability" and "Six Security" in Place subscribed visited CNY4.261billion CNY2.26billion of non-repayment renewed loans were 5,000+ clients of special anti-epidemic treasury bonds granted to 2,879 micro and small entities

Confronting with the outbreak of COVID-19 pandemic, the Bank resolutely implemented the decision and deployment of the CPC Central Committee, the State Council, Chongqing Municipal Party Committee and Chongqing Municipal People's Government as well as the requirements of other authorities, gave the top priority to guaranteeing the "capital supply chain", and took the action of Chongqing Express Financial Service with stronger, faster and more caring efforts that supported enterprises resumption of work from the source, and contributed financial power to the "Six Stability" (stability in employment, financial operations, foreign trade, foreign investment, domestic investment and expectations) and "Six Security" (security in job, basic living needs, operations of market entities, food and energy security, stable industrial and the balance of "Easy Loan" series registered xtended the principal repayment of supply chains, and the normal functioning of primary-level governments). 1,500+enterprises CNY5.274billion CNY3.115billion engaged in epidemic prevention and for the micro and small businesses supply guarantee Bank of Chongqing Takes Action and Assumes Responsibility Proactively

Strengthening institutional prevention and the enterprises of work such as preferential exchange rate and loan support to the first-time borrowers. is featured with "online valuation, remote of principal and interest, reduction and guarantee resumption, the Bank performed checklist exemption of bank's service charge while In 2020, the Bank supported 1,536 registration and self-served granting". exemption of overdue interest, renewed management with one-on-one service so ensuring efficiency and convenience. In micro and small businesses gaining loans The quickest online registration can be loan without repayment of principal, credit The Bank developed serial policies as to respond to their needs with optimal 2020, through the express channel of totaling CNY4.275 billion from the completed within 2 hours while the loan is protection, etc. During June to December such as Thirteen Measures to Support services as quickly as possible. foreign exchange service, the Bank handled banking system. For the micro and small granted within the same day of application. of 2020, the Bank totally extended the Micro and Small Businesses Survival 64 cases of cross-border settlement and businesses with financing need after principal repayment of CNY3.115 billion the Hard Time, Twenty-two Measures Guaranteeing fund supply and financing business valued USD22 million the maturity of loans, the Bank offered Reducing charges reasonably in for the micro and small businesses covered to Support Work Resumption of Micro financial service for more than 20 enterprises, mainly used stronger support of non-repayment loan favor of clients by inclusive finance and supported by the and Small Businesses, Eleven Measures to purchase masks and medical equipment. renewal. In 2020, CNY4.261 billion monetary policy tools of the People's Bank to Support Development of Micro and The Bank actively supported epidemic of non-repayment renewed loans were The Bank strictly prohibits any illegal of China. The policy benefited 2,292 Small Businesses and Nineteen Measures prevention and control via the inter-bank Making full use Internet technology and granted to 2,879 micro and small entities. charge in the financing to micro and micro and small businesses impacted by to Further Enhance Financial Services bond market. In Mar. 2020, the Bank channel, the Bank enhanced the "drip small businesses or any incremental the pandemic. to Micro and Small Businesses, which issued an interbank negotiable certificate irrigation type" financing supply to the Improving service efficiency financing cost in any disguised form, and ensured uninterrupted financial services and of deposit of CNY230 million dedicated micro and small businesses, diversified proactively bears the mortgage valuation The Bank also adopted the policies unchanged intensity during the pandemic to the fight against COVID-19 that all the the online product series of "Easy Loan" The Bank simplified the credit loan and registration charges for them. Based such as deferred repayment, reduction period. funds raised were used to support the such as "Easy Loan for Individual", "Easy procedures, delegated the examination on the formation mechanism of lending and exemption of interests and fees, loans granted to the relevant enterprises. Loan for House" and "Easy Loan for and approval authority to lower levels, market quotation rates, the Bank makes and adjusted credit investigation by the Visiting and interconnecting In Jul. 2020, the Bank subscribed Government Procurement" that satisfied established an express service channel, good use of the monetary policy tools People's Bank of China for the individual proactively CNY2.26 billion of special anti-epidemic the "contactless" financing demand and uplifted approval efficiency by parallel such as targeted RRR cuts of inclusive clients impacted by the pandemic. treasury bonds that effectively supported of clients. By the end of 2020, the operations, paperless approval, special finance, refinancing and rediscounting Considering the actual situation of In light of the themed activities of "100 the fundraising by the Ministry of Finance balance of "Easy Loan" series registered authorization, etc., thus guaranteeing the as well as other policy-based capital pandemic impacts, the Bank helped clients Banks Support 10,000 Enterprises", and contributed to the general planning of CNY5.274 billion with a year-on-year efficient and accurate lending of credit of lower costs such as the relending arrange repayment schedules rationally, "100-Day Visits", "100-Day Campaign epidemic prevention and socioeconomic increase of CNY1.308 billion. fund. of China Development Bank so as to and deferred their repayment for one of Care for Enterprises", etc. the Bank development. further reduce financing cost to micro billing cycle. If the pandemic-impacted conducted the financing connection activity The Bank also developed offline products At the application end, users can get the and small businesses. In 2020, the clients were insolvent wholly or partly, for micro and small businesses, went deep The Bank took the initiative to meet to support epidemic prevention and control loan service of "remote verification and weighted average interest rate of the the Bank adopted the policies of reduction into industrial parks and enterprises for the needs of foreign-exchange-related such as "Epidemic Prevention Loan" online application" through various channels inclusive finance loans to micro and small and exemption of interests and fees, face-to-face consultation of demand, and entities for cross-border financial service, and "Relief Loan to Small Enterprises" like mobile bank, Wechat App and mobile businesses was merely 5.55%, down 0.83 and adjusted credit investigation by the totally visited 5,000+ clients and 1,500+ effectively guaranteed 7*24 hours with a total amount of CNY322 million payment platform. The serial "Easy Loan" percentage points year on year. People's Bank of China. enterprises engaged in epidemic prevention availability of cross-border settlement and CNY1.304 billion respectively. The credit loans are featured with "online and supply guarantee. For the critical service for epidemic-related supplies, "Expanding Coverage and Incremental application, instant smart approval, self- The Bank helped enterprises tide over supply enterprises to guarantee epidemic and provided more tailor-made services Amount to Initial Loan" reinforced the served granting" while the mortgage loan difficulty by means of deferred repayment 14 Bank of Chongqing 2020 Report of Corporate Social Responsibility (Environment, Social, Governance) 15

CASE

"Easy Loan" ◆ Sticking to the posts for client services ◆ Smart device service guide, warm with you at all times

On Feb. 5, 2020, "Easy Loan" accepted the online application for loan renewal by an owner of a small store dealing in daily necessities. The client successfully went through all the online formalities at home i.e. application, approval, contract signing and loan granting, who then used the loan of CNY210,000 to replenish the supplies in shortage. Though a small amount of money, it was the prompt aid to the most urgent need of client in the critical moment of rampant epidemic. More importantly, it assisted the store in maintaining the basic livelihood of thousands of households within its 2km radius.

"Easy Tax Loan"

In the Zhongxian bank-enterprise workshop, the Bank of Chongqing, Zhongxian Sub-branch learned about the dilemma of a company suffering the pandemic impact. On the same day, the sub-branch quickly conducted on-site investigation of the company, working with the enterprise at the fastest speed to understand their financing needs. Thanks to the online "Easy Tax Loan", the company successfully obtained CNY1 million credit loan plus another loan grant of CNY1 million via offline application, which significantly made up for the gap of its circulating capital and helped it get through the hard time.

Launched an express service channel

Where there is an epidemic, there is an order and responsibility! A key enterprise of epidemic prevention supplies in Chongqing incurred shortage of capital, in order to guarantee the supply of epidemic materials, Bank of Chongqing, Nanping Sub-branch immediately arrived at the site and triggered the express service channel of "Faster Due Diligence Investigation, Faster Examination and Approval, Faster Loan Granting". Within less than 36 hours, a loan of CNY20 million was granted to expedite the medical procurement of the enterprise that guaranteed the smooth supply of epidemic prevention materials.

◆ Investigating capital needs of key epidemic-related enterprises 16 Bank of Chongqing 2020 Report of Corporate Social Responsibility (Environment, Social, Governance) 17

Special Topics Building self-sustained long-term poverty alleviation mechanism

Targeted Poverty Alleviation to Win the Decisive Battle and Build a Moderately Through support to the leading enterprises on the agricultural industry chain, the Bank spurred the growth of rural households and poor Prosperous Society in All Respects households in the upstream and downstream, and built self-sustained long-term poverty alleviation mechanism. By the end of 2020, the the balance of industrial poverty with a year-on-year balance of industrial poverty alleviation loan reported CNY846 million with alleviation loan reported increase of a year-on-year increase of CNY203 million. The year of 2020 witnessed the end of the pandemic, and performed the duty of poverty (grassroots party building + convenience decisive battle against poverty alleviation alleviation steadfastly. By the end of 2020, service + financial service + finance consumer CNY846million CNY203million and the realization of building a moderately the Bank's loan balances for targeted poverty protection + finance publicity). To popularize prosperous society in all respects. The Bank alleviation, industrial poverty alleviation and financial services in villages, the Bank paid CASE has thoroughly studied and implemented of petty loan for poverty alleviation reached attention to the present situation e.g. lack the speech of Chinese President Xi Jinping CNY3,257 million, CNY915 million and of rural financial service, poor awareness at the Workshop of Decisive Victory in CNY387 million respectively plus poverty- of villagers of finance consumer rights Supporting the leading enterprises to lift Supporting poverty alleviation Battle of Poverty Alleviation, executed the alleviating donation of CNY5.543 million. and interests, lack of financial knowledge, rural households out of poverty projects by dedicated funds decisions and deployments made by the Party inadequate comprehensive financial services Central Committee, State Council, Chongqing In 2020, the Bank connected with the in rural areas, poor financial risk awareness, XX Agriculture Development Co., Ltd. in Chongqing is a The fungus growers were busy in the harvest season. The Bank Municipal Party Committee, Chongqing governments of poverty-stricken towns and etc. further consolidated the results of poverty county-level leading entity of agriculture industrialization. of Chongqing, Pengshui Sub-branch financed CNY254,000 Municipal People's Government and other villages like Pengshui, Xiushan, Qianjiang, alleviation by finance, and speeded up the Owing to the lengthy investment return period of agriculture, to the "pollution-free black fungus" in Shuanglong Township, governing authorities, calmly and effectively Wulong and Yunyang to build up nine inclusive establishment of a rural basic financial service the enterprise encountered fund shortage in the initial stage of Pengshui County, which gained a big harvest. Through the responded to the impact of COVID-19 finance bases with "five-in-one" functions system. business startup. The Bank of Chongqing, Zhongxian Sub- "loan-to-equity capital" means, the Bank helped 127 registered branch proactively delivered on-site service to provide a loan poor households get rid of poverty in a sustainable manner, and of CNY200,000. With a capital increase from CNY200,000 the dedicated fund was used to purchase raw materials from or in 2016 to CNY1,000,000 presently, the Bank helped the pay labor charges to the poor households, achieving satisfactory enterprise increase capital and capacity while reduce financial poverty alleviation result of "one-time aid, double earnings and burden, and has witnessed its leap-forward development from long-term dividends". The bank created the policy guarantee The bank involved modern agriculture into the rough processing initially to deep processing with higher system including separate credit line, the "priority list" of credit granting, and inclined internal pricing, preferential capital explicitly provided even stronger support business revenue, achieving better effect of industrial poverty The Pengshui Sub-branch concentrated on the loans to poverty cost, special incentive budget and human to financial poverty alleviation and rural alleviation. Besides its own development, the enterprise led alleviation projects and industries, and combined various means resource support. rejuvenation. The policy documents such a number of rural households in planting economic crops and like donation, education and publicity to actively advance as opinions on better use of microcredit thus increasing personal incomes. In particular, more than 80 poverty alleviation and rural rejuvenation. By the end of 2020, for poverty alleviation policies to improve registered poor households benefited from the practice and got nearly CNY1.5 billion loans for poverty alleviation and rural Dedicated Policy financial support to the decisive battle rid of poverty, which played an exemplary role in local industrial rejuvenation were issued together with over CNY1 million guarantee guidance against poverty were formulated and poverty alleviation and economy development. donated fund that benefited more than 5,000 poor households mechanism mechanism implemented to strengthen financial in a dozen of towns and villages and offered job opportunities to support to the poverty-stricken households and agriculture enterprises over 1,000 poor people. impacted by the pandemic. Strengthened Building of Poverty Alleviation Mechanism For financial poverty alleviation and Focusing on the borrowers' eligibility, the rural revitalization, the Bank adopted Bank tightened the credit qualification review diversified financing schemes and flexible and access management of borrowers to risk-mitigating measures, launched an Mechanism of loan Mechanism of risk ensure the precision of loan issuance. Under express service channel, upheld the to the greatest and management and the principle of "borrowed, used and repaid by principle of "prioritized acceptance, quickest extent control the same household" of the poverty alleviation review and approval" and ensured the microcredit, the Bank strengthened the precise aid to poor households and management of the real purpose of loan usage. agriculture enterprises as quickly as Any "household loan used by enterprise" was possible. strictly forbidden. The Bank also investigated the scope and extent of pandemic impact on enterprises, monitored the production development of and impact on poverty- stricken households, and properly addressed risks by categorized measures.

◆ Camellia Youth Shock Brigade for decisive battle against poverty provides warmhearted convenient affairs service 18 Bank of Chongqing 2020 Report of Corporate Social Responsibility (Environment, Social, Governance) 19

Efficiently issuing targeted microloans for poverty alleviation Building platforms to support poverty alleviation through By utilizing financial technologies, the Bank upgraded "card activation, loan application, contract signing and loan a balance of microloans for poverty alleviation totaling the mode of microloan for poverty alleviation to "online issuance". In 2020, the Bank totally issued CNY267 CNY387 million that benefited 9,324 registered poor consumption application, review and approval, contract signing and million microloans to support 6,391 registered poor households. In 2020, the Bank purchased CNY2.9625 million agricultural products from the loan grant" that the applicants in poverty can stay at households, where the loans issued via the online channel purchased employees purchased home to experience the one-stop financial services of amounted to CNY175 million. In addition, the Bank had poverty-stricken areas including the products of CNY1.6836 million from 18 severely impoverished villages and townships in Chongqing. By the third-party CNY2.9625 million CNY100,200 courier delivery, the Bank gave priority to the procurement of CNY1.1176 agricultural products from the goods agricultural products from these 18 places for its canteens. The Bank organized poverty-stricken areas three events of "Exhibition Fairs Outside Villages" of the agricultural products that the employees purchased CNY100,200 goods. The Bank also completed the targeted procurement of poverty-relief products valued CNY466,000 from issued supported the loans issued via the online channel the poverty-stricken villages and townships like Daya Township of Pengshui amounted to CNY267 million 6,391 registered County, and Zhongxian County. microloans poor households CNY175 million Through the Wechat official account of "Bank of Chongqing Changjiang Caifuhui", the Bank opened a window of display to carry out the exclusive activity of "Happy Group Buying" and made cooking video to promote online gave priority to the procurement of poverty-relief products valued sales. A "Special Zone of Poverty Alleviation" was launched in the "Credit (Electronic) Mall of Bank of Chongqing" that worked with the "integrated" CNY1.1176 CNY466,000 vendors experienced in sales of agricultural products to assist the poverty- for dinning hall balance of microloans totaled benefited stricken areas in selling their products. By the end of 2020, 3 enterprises and 11 agricultural products from the poverty-stricken areas were introduced, and CNY387 million 9,324 the "Happy Group Buying" totaled CNY30,000. registered poor households A pairing system with charity CASE donation donated donated Through loan support, fund donation, channel building, financial service, etc. the CNY2.5 million CNY243,000 Tailor-made services enter villages and households Bank set up a pairing system with Yanhe Village, Longshe Township, Pengshui for development of poverty alleviation epidemic prevention supplies County and realized high-quality poverty alleviation as scheduled. In 2020, projects As the microloan arranger for poverty alleviation in Qijiang the scale was limited due to the shortage of fund. The client the Bank totally donated CNY2.5 million for development of poverty alleviation , by various means like on-site visit, recommendation manager of the bank immediately contacted the local township projects in Youyang, Pengshui, Wuxi and Chengkou, the epidemic prevention by village party committee and mobile banking vehicles, the government, and after taking account of the special situation supplies worth CNY243,000 to six primary schools in the poverty-stricken Bank of Chongqing, Qijiang Sub-branch issued nearly CNY10 granted a microloan of CNY30,000 for poverty alleviation. areas involved in the pairing system, CNY2.5 million of education donation for million of microloans to over 260 registered poor households By the end of 2020, the family totally had 4 heads of beef poverty alleviation in the southeastern and northeastern parts of Chongqing, to support them developing business. Through industrial cattle, raised over 10 goats and 200 pheasants, repaired the as well as CNY300,000 to the fields of infrastructure renovation, medical poverty alleviation, they expanded income channels and shed for piglets and where part of the cattle and pigs were treatment, aid to critical illness and education in Maliu Township, Kaizhou donated donated expedited the pace of getting rid of poverty and becoming ready for sale. District, Erong Town, Xiushan County and Baota Village, Qinglian Township, rich. . In addition, the Bank coordinated with the partnering property CNY2.5 million CNY300,000 The family managed to get rid of poverty by hard work and management company and labor dispatch company to give priority to providing for education for poverty alleviation During the on-site visit in Shahe Township, , planned to breed some fish. After the on-site visit once again the job opportunities of service sector like janitor, kitchen staff and inside jobs. the Bank of Chongqing, Dianjiang Sub-branch learned that the bank issued an additional microloan of CNY20,000. At the end of 2020, the Bank recruited 29 outsourced workers as a result of a poor young man in his twenties was the only child of the Considering the disability, the bank dispatched two employees poverty alleviation through employment. family but suffered paralyzed legs by polio, unable to go out to provide the most convenient and tailor-made home- for work. The family made a living on husbandry only but delivery service.

"Mobile promotional platform" supports financial poverty alleviation

The Bank of Chongqing, Tongliang Sub-branch took and loan contracting. If the applicant has prepared all advantage of science and technology to enable the convenient necessary data, the loan may be issued in the next working service of "get done once and without the need for a second day. The efficient whole-process service is praised by all trip" for impoverished households. The "mobile promotional the local poor households: "The Bank of Chongqing is so platform" provided home-delivery services of card issuance convenient!" ◆ Signing a strategic cooperation agreement with Pengshui County on financial poverty ◆ Employees enter villages and households to visit the impoverished people. alleviation and rural rejuvenation 20 Bank of Chongqing 2020 Report of Corporate Social Responsibility (Environment, Social, Governance) 21

Management Improving Corporate Governance Deepening Accountability Management

The Bank incorporated the latest requirements and reports including annual budget, final account, directors and executives, and attached importance Philosophy of social responsibility on party building into the articles of association profit distribution, strategic planning, etc. The to the critical decisions and implementation to consolidate the legal status of the party Bank actively guaranteed the duty performance of thereof. The Bank adhered to the problem- organization in the corporate governance directors, gave prompt feedback to the opinions oriented principle to fulfill the monitoring duty and The Bank is committed to integrating the philosophy of social responsibility into the corporate culture building and strategic development planning, constantly enriched structure. Under the principle of independent and suggestions proposed by the directors and give proposal on the major businesses and major the connotations of social responsibility, actively explored the social responsibility practice with the Bank's own characteristics, and realized the coordinated sustainability operation, effective balance, cooperative and supervisors, and timely tracked and secured the risks, and kept strengthening its own strength with economy, society and environment and value co-creation. coordinated functioning of all governance bodies decisions in place. The Bank gave full play to the to improve the efficiency of duty fulfillment and and on the basis of rules and regulations like role of independent directors and invited more realize the high-quality development. articles of association and conduct of work, the independent directors to act as the members or Economic corporate governance structure with "scientific chairmen of ad hoc committees. The Bank also Confronting with the increasing pressure of responsibility decision, firm implementation, effective organized training of directors and supervisors economic downturn and complex and changeable supervision and standardized operation" has been that covered the latest policies on anti-money situation both at home and abroad, the senior established. Focusing on the duty performance laundering, responsibilities and risks of directors, management concentrated on the annual process and efficiency, the Bank has established supervisors and senior management, their business plan indexes and tasks assigned by the Transparent and implemented the work mechanism of compliance after public listing, Fengling smart Board of Directors, made concerted efforts to operation special reporting, communicating, tracking and assessment, etc. break bottlenecks, and managed to uplift the supervising, periodical training, etc. that provide Bank's asset scale to a new height featured Social responsibility Environmental systematic support to the efficient duty fulfillment Pursuant to the provisions of the Company Law with the stable growth of deposit and loan responsibility of the Board of Directors, Board of Supervisors of the PRC, Tentative Rules for Performance balance, significantly improved business earnings, Bank for locality and senior management. Assessment of Chairmen of the Board of reasonable level of asset quality and business Cooperation for Bank for micro and Supervisors in the Key State-owned Enterprises performance within expectation. Innovation- win-win situation small businesses In 2020, the Bank totally convened 78 meeting under Chongqing Municipality, and Guidelines on driven Bank for citizens of Board of Directors and ad hoc committees Corporate Governance of Commercial Banks, that deliberated and listened to 319 proposals the Bank strictly monitored the duty fulfillment of

Directors Supervisors Senior management The sixth Board of Directors The sixth Board of Supervisors The new senior management of Coordinated sustainability of the Bank was elected at the of the Bank was elected by the the Bank was appointed by the General Meeting of Shareholders General Meeting of Shareholders first meeting of the sixth Board of on Dec. 9, 2019 that consists of on Dec. 9, 2019 that consists of Directors on Dec. 9, 2019, consisting 15 directors including 4 executive 9 supervisors including 4 employee of 8 senior management staffs. Under directors, 6 shareholder directors supervisors, 3 external supervisors the senior management, there are six Analysis of substantive topics and 5 independent directors. and 2 shareholder supervisors. dedicated committees in charge of The board has eight dedicated The board has a supervision and risk management and internal control, committees in charge of strategy, nomination committee. credit review and approval, financial "Think Alike, Grow Together" is always the central High philosophy and cultural orientation of the Bank of

nomination, audit, risk management, review and approval, asset liability Extent of influence upon the stakeholders Bank Chongqing remuneration and appraisal, management, information technology Chongqing. We always communicate and exchange Fighting against the COVID-19 pandemic, Deepening inclusive finance, Developing green finance, Enhancing financial technology, Protecting consumers' rights and associated transaction control, management and procurement, as with the stakeholders like the governments, governing bodies, clients, employees, professional organizations, interests, Reinforcing risk management, Perfecting corporate governance, Devoted information technology guidance, well as the discussion bodies such as to employee development, Increasing shareholders' return and consumer rights and interests anti-money laundering leading group media and the general public, listening to their opinions protection. and performance appraisal leading and suggestions and then involving them into all aspects group. concerning operation, management and sustainable development such as development decision, business innovation, risk prevention, publicity and communication. Creating innovative products and services, Lawful and rule-based operation, Green and low-carbon operation In 2020, the Bank followed up the major changes of exterior environment, adjustment of macro policies and changes of regulatory requirements, took root in economic resurrection and social green transition, sorted out the core Implementing procurement accountability, Organizing charity activities topics and hereby disclose the Bank's major progress in 2020 and future plans to all stakeholders in this report. Low Extent of influence upon the sustainable development of Bank of Chongqing High

◆ Meeting of the 6th Board of Director of Bank of Chongqing 22 Bank of Chongqing 2020 Report of Corporate Social Responsibility (Environment, Social, Governance) 23

Social recognition Strengthening Risk Management

The Bank laid stress on the risk management overall risk management system and optimizing and guaranteed the effective management and Awarding organization Honors/Awards of credit, market, operation, liquidity, IT and the organizational structure, established and control of all risks. strategy, reputation, etc., kept improving the perfected various risk management mechanism

The Central Committee of the National May 4 Red Flag Young League Committee 2019 and integrated it into the corporate governance structure where the board of directors, board Communist Young League The Bank established clearly- of supervisors, senior management and relevant departments/operating organs assume their defined organizational structure corresponding duties and responsibilities. Meanwhile, the Bank clarified the overall risk management of professionalized risk and categorized functions of risk management, designated the chief risk officer on the management The People's Bank of China Third Prize of Bank Science and Technology Development Award 2019 management level, dispatched risk officers and risk managers to the operating organs, and thus built and improved a professional team of risk management.

Model Unit of Banking Security Management 2018-2019, "Outstanding Contribution Award" of China Banking Association Banking Professional Qualification Examination

The bank has established systematic risk identification and evaluation mechanism and process, Under the all-round and and on the basis of effective identification of major risks evaluated the risk level and management farsighted principle, the Bank Credit Reference Center, The Local Financial Institution with Excellent Data Quality of Enterprise Credit Reference System 2019, competency. In view of higher overall risk level or weakness of management, the Bank developed well performed risk identification People's Bank of China Local Financial Institution with Excellent Data Quality of Individual Credit Reference System 2019 and implemented the measures of optimization to improve the risk management competency and and evaluation core competitiveness.

Chongqing Municipal Committee of the Communist Young Model Unit of Chongqing Communist Youth League 2018-2019 League Following the core regulatory issues on banking risks, risk management hotspots of financial industry and development trend of macro economy, the Bank studied and analyzed the present Fintech Application Pilot and Financial Standard Innovation Pilot 2019 – Excellent Unit for Financial The People's Bank of China, The Bank advanced risk risk situation and challenges, and developed general risk management strategy in accordance with Standard Innovation, Excellent Unit for Fintech Innovation Chongqing Operations Office preference management to the annual analysis. Meanwhile the risk preference of Board of Directors was presented in the First Prize of Financial Statistical Analysis of Financial Institution 2019 better guide the risk-taking risk preference statement. It clarified the type, extent and quantity of risks that the Bank was behaviors in business operations willing and able to undertake under the established profit target and operation strategy. Through scheduled and targeted risk control, the Bank strengthened the risk management in advance, Excellent Unit in Appraisal of Services to Micro and Small Businesses 2019 curbed all risks within the tolerable scope, and realized the balance between risk and business. China Banking and Insurance Excellent Unit in Chongqing Banking and Insurance Publicity Service Month of "Month of Financial Regulatory Commission, Knowledge Popularization to All, To Be Rational Investors and Well-behaved Online Finance Users" Chongqing Branch 2020

The Bank established sustainable mechanism, workflow and methodology of IT risk identification, China Financial Certification Silver Award of "Technology Innovation and Application" of China Fintech Innovation Contest 2020 The IT risk was involved evaluation, monitoring, control and reporting. Through monitoring of routine critical risk indicators, Authority (Fengling Smart Assessment) in the comprehensive risk special risk assessment and regular risk reporting, the Bank constantly optimized the IT risk www.cebnet.com.cn Award of Best Mobile Banking Operation 2020 management system management and control capability, and maintained zero record of major IT risk event.

Best Organizer of Knowledge Training and Competition on Protecting Consumers' Rights and Interests of Chongqing Banking Industry 2020 Chongqing Banking Association Special Contribution Award of Annual Social Responsibility Election of Model Units of Chongqing Banking Social Responsibility 2019 The Bank established the dual-active deployment of 25 information systems within the same city including all the major information systems, and the standby mechanism for the critical resources required by continuous operation of critical businesses like personnel, site, document The business continuity was and equipment. In addition, the Bank set up the risk pre-alerting and monitoring mechanism Banking Association Excellent Organizer of "Trip of Popularizing Financial Knowledge" of Sichuan Banking Industry 2020 maintained and contingency response mechanism, periodically organized the emergency drilling of business continuity, and through precaution in advance, in-process control and post-event conclusion guaranteed the continuous and stable business operations of the whole organization. 24 Bank of Chongqing 2020 Report of Corporate Social Responsibility (Environment, Social, Governance) 25

Practice

Serving Key National Strategies 25 01 Deepening Inclusive Financial Services 28 Connecting Rural Rejuvenation Effectively 31 Assuming the Mission Boost High-quality Economy Development 26 Bank of Chongqing 2020 Report of Corporate Social Responsibility (Environment, Social, Governance) 27

Serving Key National Strategies

issued over As the icebreaking local state-owned over CNY12 billion credit support to the In addition, as the first bank in Central holdings commercial bank in West China and engineering projects within the region. and Western China and the sixth in China CNY110 billion the upper reaches of the Yangtze River, directly linked to the cross-border financial loans in the twin-city region the Bank focused on the major strategies The Bank actively fulfilled the mission as a blockchain platform of State Administration such as Chengdu-Chongqing twin-city corporate financial institution in Chongqing, of Foreign Exchange, the Bank participated economy circle, China-Singapore (Chongqing) firmly established the philosophy of in the application scenario of financing Demonstration Initiative on Strategic integrated development, ensured top-level and settlement of the new west land-sea Connectivity and construction of a new west design and planned to focus on four major corridor. As the inaugural local corporate bank land-sea corridor, proactively participated areas i.e. infrastructure connectivity, chain in Chongqing, the Bank is connected with in the new development pattern of dual and cluster of industrial collaboration, joint the "single window" of international trade offered over circulation, made use of its own strength pollution prevention and joint governance of operated by Chongqing Port and Logistics billion to provide better financial service support ecology and environment, joint construction Office, the foreign currency payment system CNY12 credit support to the engineering and realized high-quality development. In and sharing of public services so as to expand in China operated by the People's Bank of projects 2020, the Bank issued over CNY110 billion the financial services across the Chengdu- China, and the innovative global payment loans in the twin-city region, and offered Chongqing economy circle. program of SWIFT gpi. ◆ In-depth investigation of enterprises for targeted financial services

Key Progress

Serving Chengdu-Chongqing Supporting the The Bank focused on the characteristics of electronic Display-Processor-Core-Cyber" full industry chain twin-city economic circle construction of a industry, targeted at the difficulties, pain points of electronic information proposed by Chongqing and bottlenecks of financial service, and offered the Municipality, the Bank enhanced collaboration with "Smart Town of Key featured products like U-loan and Entity Credit Loan government agencies and industrial associations, The Bank built up the "1+1+N" advancement mechanism Position" to address the financial demand. The Bank actively promoted transformation and upgrading, and achieved to organize the leading group of advancing construction of connected with the platform of IFSP for Chongqing the high-quality development of electronic information Chengdu-Chongqing twin-city economy circle by financial Enterprises, utilized the mobile promotion platform for industry in Chongqing. In 2020, a total credit support service, under which a leading group office was set up to work business handling, process operating and information of nearly CNY2 billion was granted to more than 400 with other project leaders to secure the projects in place and processing, and simplified the workflow of electronic clients engaged in electronic information business. conduct in-depth investigation of 100 major industrial parks. information enterprises. Concentrating on the "Chip-

Optimizing overall A new chapter of China-Singapore Constant service Xinyu Financial Leasing in planning connectivity innovation Chongqing is approved to Under China's Belt and Road Initiative and The Bank pushed forward the issue CNY1.5 billion of China-Singapore (Chongqing) Demonstration product innovation based on business financial bonds Initiative on Strategic Connectivity, as the Vice and investment attraction. The Strengthening Deepening In Sep. 2020, Xinyu Financial Chairman of China-Singapore Financial Science research and development of serial support cooperation Leasing, the stockholding subsidiary of and Technology Alliance, the Bank held a signing products further strengthen the Bank of Chongqing was approved by ceremony at the Smart China Expo together service capability to the investors. The Bank strengthened support to the key areas that The Bank continued strategic cooperation with the People's Bank of China to initially with other member entities like ADERA The Bank also pushed forward the totally granted nearly CNY20 billion loans to Liangjiang the Bank of Chengdu to jointly invest CNY2.5 issue the financial bonds of not more New Area and High-tech Zone with the priorities to billion in bonds to support industry development SINOTECH PTE. LTD. By the "cloud-based product innovation based on trading than CNY1.5 billion in the domestic the advanced manufacturing, modern service industry and infrastructure construction. The two banks signing" offline + online mode, the Chinese and scenarios, and through analysis of interbank bond market. The corporate and infrastructure construction. To further optimize the promoted interbank business to realize the Singaporean sides signed on the Agreement of enterprises' financial service needs entity and debt credit were rated AAA financial settlement service in Chengdu-Chongqing area, interconnection of counter cash deposit and transfer Strategic Cooperation on International Supply in different scenarios, provided the by both China Lianhe Credit Rating the Bank of Chongqing, Luzhou Branch was founded. remittance. Taking the initiative to participate in Chain Finance and Blockchain Financing Platform customized financial service solutions Chengdu-Chongqing interprovincial electronic tax and China Chengxi International Credit so as to further explore the service model of to corporate entities, thus satisfying payment, the Bank improved the convenience of Rating. The company plans to use the international supply chain financial cooperation their financial service needs in tax payment. The bank also facilitated buyers to raised fund to further support the local based on blockchain technology, and expedite various trading scenarios such as apply for housing loans in neighboring districts and real economy. made contribution to the integrated development of the construction of China-Singapore financial supply chain, capital chain and Sichuan-Chongqing neighboring areas. sci-tech cooperation demonstration zone. industry chain. 28 Bank of Chongqing 2020 Report of Corporate Social Responsibility (Environment, Social, Governance) 29

Deepening Inclusive Financial Services CASE Supporting startup technology enterprises Drop-in service of The Bank actively implemented all policies and control and compliance such as electronic evidence, of CNY4.402 billion for 17,267 applicants, thus "credit loan" requirements on supporting the real economy especially online compulsory notary and cyber arbitration, and successfully attaining the goal of "double increases". In May 2020, in the form of online live streaming at Chongqing micro and small businesses, proposed "quadruple developed the insight mechanism of full lifecycle of Innovation, Entrepreneurship and Venture Capital Service Platform, In Dec. 2020, a company that owned a number optimized services" and targeted financial service, microfinance business as well as prudent and efficient The Bank always supported science and technology the Bank organized the activity of "Think Alike, Grow Together, Relief and ensured the fund straightforwardly reaching the management and control mechanism. innovation and kept strengthening the enabling of utility model patent technologies of food Policy Publicity by Bank of Chongqing" to introduce the supporting production was producing at its full capacity, most needed parts of real economy. Meanwhile, the mechanism, R&D and promotion of products and financial policies to the startup technology enterprises. Bank built the digital-driven "five-in-one" inclusive At the yearend of 2020, the Bank had CNY83.322 improving the financial service quality and efficiency but the person in charge worried about the fund shortage of CNY800,000. The Bank's customer smart financial service system for micro and small billion of loan balance to micro and small businesses to startup technology entities. By the end of 2020, In Dec. 2020, the Bank joined Chongqing Intellectual Property Rights businesses, and the well-proven Big Data intelligent as per the national standard caliber of the Ministry of the loan balance to technology enterprises registered manager happened to learn it in a drop-in visit, Financial Service Alliance to provide sci-tech enterprises with business and immediately introduced the Bank's credit loan risk management system. Based on the holistic data Industry and Information Technology with a year-on- CNY17.561 billion with a year-on-year increase of instructions, information and service support on using IPR to expand governance, the Bank developed the digital-driven year increase of CNY3.455 billion. Among them, CNY7.261 billion, among which the loan balance to of mortgage-free, low interest, flexible usage and financial channels, and signed the Agreement of Strategic Cooperation convenient grant. operation and management mechanism, and reshaped the balance of inclusive loans to micro and small the medium- and small-sized technology enterprises on Promoting Intellectual Property Rights Pledge for Financing in after-loan monitoring and alerting management businesses with the amount of single credit not higher was CNY12.768 billion, increased by CNY5.157 Chongqing that actively explores the IPR pledge-financing model. system. In light of the characteristics of online credit than CNY10 million registered CNY36.451 billion billion year on year. "The Bank of Chongqing proactively provides home-delivery creatively the Bank introduced new methods of internal for 47,252 applicants with year-on-year increases financial service to us. They help our micro enterprise produce and operate more confidently and boldly."

Constant follow-up to address difficulty of enterprise Optimized service Optimized financial products had quality to better to diversify the services to support the real real economy A construction materials company was in urgent need of circulating capital. The Bank's employees fully understood its CNY83.322 billion economy fund to purchase raw materials. In Apr. 2020 the Bank difficult situation of no further mortgage for loan financing, of loan balance to micro and small issued CNY640,000 individual operating mortgage loan and under the preferential policy of "stability in enterprise businesses as per the national that effectively lessened its financial pressure. Owing to operation and security in employment" issued CNY870,000 standard caliber of MIIT Quadruple work resumption and incremental sales, the company again "Reputation Credit Loan" that helped it get through the hard Optimized got stuck in a dilemma of soaring orders but drying-up of time and enlarge production scale in September, 2020. Services

]Optimized resource Optimized business with a year-on-year increase of allocation to lessen the process to offer an burden of charges of express channel to CNY3.455 billion corporate entities corporate entities

Targeted support of "drip irrigation type" to real economy

"Face-to-face" "Point-to-point" "One-on-one" solicitation of financial customized financing precise demand solutions service

The Bank conducted exclusive action to have the Bank enhanced interconnection and The Bank enhanced bank-government face-to-face dialogues with the corporate interaction, collected the needs of state- cooperation, made use of the bank- entities within the region, followed the owned enterprises for financing demand of debt government cooperation platform to connect problem-oriented path, understood their optimization in a point-to-point manner, and with industrial enterprises, and worked difficulties, pain points and bottlenecks in individually worked out the financial solutions out service solutions in accordance with operation as well as financing needs, and pertinent to their respective characteristics so as their operational characteristics with better secured financial services in place. to optimize their debt structures. financial service competency. ◆ The Bank's Inclusive Financial Service Vehicle with provide convenient services within reach 30 Bank of Chongqing 2020 Report of Corporate Social Responsibility (Environment, Social, Governance) 31

Connecting Rural Rejuvenation Effectively

In 2020, the Bank tried the best to win the decisive battle of poverty alleviation, and made intensive efforts in mechanism building, model innovation, product application, service improvement, etc. so as to well connect poverty alleviation with rural rejuvenation and vigorously implement the strategy of rural rejuvenation. By the end of 2020, the agriculture-related loan balance registered CNY41.305 billion including the inclusive finance agriculture loan the agriculture-related loan balance inclusive finance agriculture loan balance balance of CNY8.657 billion. CNY41.305 billion CNY8.657 billion

Key Progress

Improving fundamental financial services

Relying on the financial service tools like pos for rural residents, mobile banking vehicles and portable terminals, Developing the bank built up the rural convenient financial service sites that integrated inclusive finance education, convenient service fundamental financial services and business promotion. In 2020, totally 61 sites were built with coverage of 526 sites administrative villages.

The bank improved the payment and settlement service environment in rural areas, and met the routine financial Diversifying payment needs of villagers such as bank card activation, small-amount deposit and withdrawal, and payment agency. and settlement channels In 2020, the bank utilized the business promotion platform to remotely activate 10,752 bank cards for rural residents, and handled 8,630 rural pos transactions with a total amount of cny1 million.

Taking advantage of geographic location, the bank enlarged the distribution of more petty cash to small dealers Enlarging distribution and new agriculture operators. In 2020, totally cny14.45 Million yuan in petty cash was allocated to the rural of more petty cash areas.

◆ Wang Tongkun, First Secretary of Jinping Village, Jinping Township, Wushan County sent by Bank of Chongqing checks the tobacco plating in fields

Supporting integrated Supporting Supporting reform Supporting Expanding the Enhancing development of construction of of rural economic development of pig scope of loan support by agriculture and industries beautiful countryside system breeding business collaterals special bonds

The Bank converted and upgraded the original The Bank studied and developed the "Road The Bank developed the "Three Changes Reform The Bank launched the first pig breeding credit The bank developed the "small hydropower Through the special and dedicated bonds such batch business of "Six New Industries • Credit Loan" to support the infrastructure Loan" to support the joint development of loan product "Pig Credit Loan" in Chongqing loan" that took the accounts receivable and as poverty alleviation bond and green bond, the Agriculture Loan", and developed the O2O projects such as "Access to Every Village" leading agriculture enterprises with peasants by with the model of "bank + insurance + Internet equity pledge as the guarantee, and the bank activated the economic vitality of poverty- online-offline product "Lush Mountains and Lucid and "Poverty Alleviation Roads". By the land equity and other means, and thus propelled of Things + rural household". It relied on the collection account as the risk control means stricken areas and consolidated the regional Water • Agriculture Enterprise Loan" featured end of 2020, the balance of "Road Credit organic combination of smaller rural households "Pig Grower Loan", a financial product of pig to solve the difficulty of lack of collateral in economic strength in a holistic approach. In with "online application – offline verification – Loan" registered CNY210 million. and modern agriculture. By the end of 2020, breeding industry chain of the dominant breeding rural areas. By the end of 2020, the "small 2020, the issued rural rejuvenation loan totaled online approval – offline loan granting" so as to the balance of "Three Changes Reform Loan" enterprise, CP Agriculture and Husbandry, and hydropower loan" balance reported cny58.63 cny1.22 Billion. meet the diversified financing needs of agriculture reached CNY2.68 million. contributed to the stable and orderly growth of Million. operators. By the end of 2020, the balance of pig market. By the end of 2020, the pig-related agriculture loan registered CNY909 million that loan balance registered CNY814 million including aided 3,069 rural households. CNY512 million of pig breeding loan balance that aided 2,044 breeding enterprises. 32 Bank of Chongqing 2020 Report of Corporate Social Responsibility (Environment, Social, Governance) 33

Practice

Enhancing Development of Financial Science and Technology 33 02 Creating Brand New Finance Ecology 34 Reinforcing Prevention and Control of Science and Technology Risks 31 Led by Innovation Advancement of High-standard Digital Transformation 34 Bank of Chongqing 2020 Report of Corporate Social Responsibility (Environment, Social, Governance) 35

Enhancing Development of Financial Science and Creating Brand New Finance Ecology

Technology The Bank created the new generation of Platform". Two of them were included in the in remote areas and severely impoverished core system that applied brand new technical project database of intelligent manufacturing areas. architecture and innovative technologies, and and intelligent application of key enterprises In 2019, the Bank's 71st Meeting of the 5th innovation" as the key guiding philosophy, AI to guide innovation, and fully integrated served as a significant driver to transform and affiliated to the municipal government, while To build systematic innovation drive mechanism, Board of Directors deliberated and adopted explicitly defined sci-tech innovation as the innovation driver into all aspects of business upgrade the Bank towards a smart bank. After three were included in the list of key innovation- the Bank simultaneously conducted Fintech the Strategic Planning for Development of prime mover of high-quality development, development, operation and management. launch into operation, the system has been in driven projects led by Big Data intelligence of the integration and innovation, data governance and Bank of Chongqing in 2020-2022. It set proposed the utilization of fintech such as stable operation for more than two years, and key state-owned enterprises affiliated to the finance standardization. The data governance "led by science and technology, driven by the Internet, Cloud Computing, Big Data and plays an important role in customer service, municipal government. served as the new basic guarantee of Fintech, product innovation, operation efficiency, data the finance standardization benchmarked the quality, safety and security. For the intelligent innovation drive, the Bank innovation process and output, and such process Application of innovative technology used the "mobile promotion platform" to "extend and output of Fintech integration and innovation In 2020, the Bank prioritized the dominant traditional counters" to one-stop integrated reviewed and improved the other two, role of business value in Big Data intelligence financial services, turned from the "shopkeeper" thus forming a trinity system of independent work, implemented hierarchical and dynamic style to an "itinerant dealer", made effective innovation. Through coordination, mutual The Bank made full use of new technologies like AI and management systems, elaborately selected breakthrough for the "last mile" of financial complementation and joint effect, the project machine learning, and constantly applied the Robotic and supported 14 headquarter-level projects service and provided safe, convenient and achieved the result of "1+1+1>3", gradually Process Automation (RPA) platform in centralized including "Innovation of Inclusive Financial efficient digital inclusive finance to better serve formed the systematic innovation ecology processing. The pilot application of dynamic face Intelligent Service Support System for Micro the real economy, development of agriculture, process and realized digital transformation from recognition was conducted that the pilot sub-branch utilized biometric technology to assist in the business and Small Businesses" and "Mobile Promotion the countryside and farmers as well as the clients quantitative changes to qualitative changes. scenario of targeted marketing. The centralized remote authorization project was completed that the new- generation self-served equipment management platform CASE was established to improve the equipment management and user experience. Bilingual exhibition at virtual Smart China Expo

In the virtual Smart China Expo "smart risk control", "digital mobile highlighted the bank's practice in 2020, the Bank officially launched the banking", "electronic channel system" 2020 to support work resumption, bilingual online exhibition hall of "Think and "inclusive finance digital loan empower micro and small businesses Alike with New, Grow Together products" that presented the Bank's and contribute to the decisive battle of with you". Featured with the style achievements in Big Data intelligence poverty alleviation by financial science of technology and sense of future, driven innovation strategy and digital and technology. the exhibition included the major transformation on multiple dimensions parts of "digital innovation ecology", and perspectives. In particular, it Fully supporting the R&D Boosting network Perfecting of innovative deposit and transformation and electronic channel loan products intelligent operation services

The Bank completed the rapid R&D of private The bank completed the building of mobile payment and public structure deposit products, applied the platform for micro and small businesses, optimized and distributed architecture and Big Data technology to upgraded the platform integrating the mobile banking the development of consumer credit system, and 5.0, Internet operation platform, enterprise online bank tried the micro-service architecture technology and channel, and finished the trial r&d of several open to improve the convenience and flexibility of new api on the basis of an open bank concept. The bank also consumer credit financial product. set out to develop an intelligent voice customer service system, and tried the ai technologies like intelligence voice and semantic identification. The completed remote banking platform is able to offer more scenario-based applications of contactless service.

◆ "Think Alike, Grow Together", client services empowered by financial science and technology 36 Bank of Chongqing 2020 Report of Corporate Social Responsibility (Environment, Social, Governance) 37

Reinforcing Prevention and Control of Science and Technology Risks The Bank innovatively applied new technologies to and management, comprehensively utilized new Bank reinforced cyber security, consolidated data the basic work of sci-tech operation, kept improving technologies like Big Data and AI, and realized "one- security protection and safe operation management the IT support capability and guaranteed the safety click intelligent switch" of disaster preparedness measures, preliminarily used the Big Data technology and stability of the whole information system. Firstly system, deep mining of operation and maintenance to analyze potential cyber vulnerabilities and high strengthening the support of infrastructure: the Bank data and visualized operation as well as automatic risks, and ensured alerting and resolution in advance. deepened the application distributed and virtualized intelligent scheduling of batch operation. The Bank The Bank took part in Chongqing Cyber Security technologies, improved the disaster preparedness studied and explored the visualized and intelligent Defense Drilling 2019 and National Cyber Security system of "Two Locations and Three Centers", monitoring management of system, network and Defense Drilling 2020 to testify and strengthen the and promoted the deployment of dual active computer room, and carried out fundamental prevention and control capability through practical centers in the same city. Secondly optimizing the research such as Big Data analysis and display exercises. production and operation management: the Bank of network log, and online intelligent pre-alerting. ◆ Chongqing bank transaction monitoring screen, enabling management, business and service upgrading orderly advanced the integrated intelligent operation Thirdly deepening information security protection: the

Key Progress

Enhancing capacity building of Big Personal consumption financial Data platform and data service anti-fraud system

The Bank initiated the data governance program for The Bank has completed the upgrading of the the whole bank, and built the management system of associated graph product of system that supported data standard, data quality and metadata. Based on the multiple scenarios and products. Meanwhile, the Bank Big Data platform, the Bank constructed the systems Fengling Smart Assessment plans to connect multi-dimensional transaction data, Online intelligence risk control of intelligent assessment of associated risks, anti-fraud System event data and client data to build up an overall retail platform and risk pre-alerting, developed the Monkey King data knowledge graph, which will effectively supports all the analysis platform, and achieved the visualization service Bank's online services and be an integral part of risk of management cockpit of a few critical business data. The "Fengling Smart Assessment" system independently control decision. The Bank has completed the comprehensive upgrading developed by the Bank has become the "second brain" of online intelligence risk control platform and realized At the Data & AI Management Summit (DAMA) 2020 of risk prevention and control. Relying on Big Data and the overall migration of system from V1.0 to V2.0 in Oct. 2020, the Bank won the Data Governance knowledge graph technologies, the Bank built up the Big with stable operation. The transformation and shift to Innovation Award of DAMA China 2020 among the Data risk control system centered on mining of associated the second-generation credit investigation system of 196 competing candidates by its innovative concept relations, which can be extensively applied in the risk all serial products have been completed that guarantee of "Combining Governance and Usage, Promoting control of credit businesses like pre-loan enterprise business operation and satisfy regulatory requirements. Governance by Usage" and the conclusive practical investigation, risk evaluation amid loan and post-loan risk The platform efficiently responds to the rapid business experience of customer data governance. alerting as well as corporate business risk management, iteration and runs a number of products in 2020 that internal audit and inspection, asset preservation, anti- effectively serve the corresponding micro and small money laundering, investigation of bidding risk, etc. businesses in the locality. 38 Bank of Chongqing 2020 Report of Corporate Social Responsibility (Environment, Social, Governance) 39

Practice

Advancing Green Finance 38 03 Performing Green Operation 41 Green and Low-carbon Way Coordinated Promotion of Ecological and Environmental Protection 40 Bank of Chongqing 2020 Report of Corporate Social Responsibility (Environment, Social, Governance) 41

Advancing Green Finance CASE Supporting sewage treatment The Bank incorporated green development a green finance incubation center to execute production and sales as well as customized into the overall strategy planning and clarifies the trial operation of the Bank's green finance integrated service solutions, the Bank Founded in 1996, Chongqing Kangda comprehensive and customized sewage using the featured product "U-Loan", in the Thirteenth Five-year Development Plan products and policies, and through effective satisfied the individual financial demand Environment Protection Industry (Group) treatment solutions and services in the the company received the working in 2016-2020 and the Strategic Planning for coordination at different levels planned and of green businesses. Meanwhile the Bank Co., Ltd. is specialized in urban sewage forms of licensed service operation capital loan of up to six years, which Development of Bank of Chongqing in 2020- executed green finance development as a actively explored the green products like treatment, comprehensive management agreement, BOT, TOT, PPP, EPC and strongly supports its routine operation 2022 to vigorously support green, circular whole. carbon finance and emission right pledge to of water environment, rural sewage O&M. The Bank granted a credit of and expands sewage treatment business. and low-carbon economy development. provide special green services to enterprises. treatment, etc. It provides clients with CNY270 million to the company. By The Guiding Opinions of Bank of Chongqing For the credit granting process, the Bank on Promoting Green Finance Development created the whole-process express channel At the end of 2020, the Bank's green loan was formulated that clarifies the path of for green businesses, adopted differentiated balance reached CNY14.41 billion with promoting green industry from the aspects of credit granting policies for green projects, an increase margin of CNY5.38 billion or Major Sectors of Green Financial Services of Bank of Chongqing institutional construction, business operation, and implemented the express channel policy percentage of 59% compared with the risk management, etc. of "prioritized acceptance, review, approval beginning of 2020. In 2018, the Bank issued and loan grant". With prioritized resource the first green finance bond of CNY6 billion in Project sector Project results Beneficiary The Bank established the management allocation, double preferential policies were Chongqing, mainly contributing to the green structure covering four tiers i.e. the operation implemented for green loans, and the FTP projects like green mobility, renewable energy It improves the green levels of major infrastructure and Green updating of infrastructure (Group) Co., Ltd. tier set up the leading group of green finance and economic capital adjustment coefficient and clean energy. In 2020, the Bank's livelihood. development, the headquarter tier set up the for green business are lowered. first green asset-backed security "Special department of green finance, six branches Program for Green Asset of Xi'an High-tech It protects and restores the ecological system, Chongqing Pookin Agriculture Development set up green finance service center and the By developing the green financial product Thermal Heating" of CNY100 million was Ecology and environment optimizes the ecology safety barriers and improves the Holdings Co., Ltd. sub-branches designated the staff dedicated package of "green loan + green bond + green used to support the development of green quality and stability of ecological system. to green finance affairs. In addition, the Bank leasing" and providing the financing products and clean energy enterprises. It builds and operates the equipment manufacturing and of Chongqing Liangjiang Branch established covering the full lifecycle of investment, Chongqing Sanfeng Environment Group Holdings Clean energy associated facilities for clean, efficient and systematic Co., Ltd. energy production system.

It is engaged in the equipment manufacturing related Energy conservation and environmental with resource and energy conservation, recycling use Chongqing Renewable Resources Group Co., Ltd. protection and ecological and environmental

It deals in the waste reduction, resource recycling and Bijie Hailan Medical Waste Centralized Treatment Participating in the Clean production Full integration in harmlessness in the whole production process. Center Co., Ltd. Taking the lead in green research on green and Chongqing's green finance standardization low-carbon development It provides intelligence support and professional services Chongqing Zhonghang Science and Technology finance reform and High and new technology of Chongqing to the relevant green businesses. Co., Ltd. innovation

As the first local legal entity As the unique local banking The Bank actively assisted the bank in Chongqing to undertake the participant, the Bank worked with the city in building the pilot zone for green standardization of green finance, the Bank took People's Bank of China, Chongqing Operations finance reform and innovation, participated in the Performing Green Operation the lead in developing the standard business process Office and Tsinghua University in the science development of Chongqing's green finance Big Data of green loan and rules for information disclosure of green research of Green Finance Roadmap of Chongqing to system "Yangtze Green Connectivity", fully supported bond, which are available on the official website of national Support Green and Low-carbon Development Targets the pilot green reform and innovation in key regions, and enterprise standards for the reference of the organizations that formulated the implementing plan of carbon emission collaborated with the governments and administrations of The Bank vigorously advocated the concept intelligent control switch, and the use of air For the architectural energy conservation of all in the same trade. peaking ahead of schedule and promoted the green and ecology and environment of various districts and counties to of green and low-carbon office and deeply conditioners was rationalized in accordance branch offices, the Bank applied energy-saving low-carbon development of Chongqing. firmly advance the construction of pilot reform zones. implemented the philosophy of energy with changes of temperature. The Banks took insulation materials to the exterior walls and conservation, consumption reduction and advantage of online office and paperless office, selected environmental-friendly construction environment protection. In 2018 the proposed the use of double sides of paper, materials, and rolled out the intelligent control Regulations on Management of Bank of and cut down the consumption of disposable of interior lighting for effective energy-saving Chongqing Buildings standardized the energy articles like paper cup so as to minimize the result. In accordance with the actual conditions consumption and environment management paper consumption. The Bank adopted the of branch offices, natural ventilation and lighting of office buildings. The intelligent lighting "Clear Your Plate" action, practiced strict were utilized as far as possible so as to further system was applied that the energy-saving economy, cherishd food and to eliminate waste save energy and reduce consumption. management of office area was strengthened of food. by the combination of manual control and 42 Bank of Chongqing 2020 Report of Corporate Social Responsibility (Environment, Social, Governance) 43

Practice

Commitment to Sustainable Growth of Employees 43 04 Protecting Consumer's Rights and Interests 47 Actively Carry Out Social Public Welfare 50 Human-oriented Principle Jointly Creating a Harmonious and Better Life 44 Bank of Chongqing 2020 Report of Corporate Social Responsibility (Environment, Social, Governance) 45

Improving employees' capabilities Unremitting hard work of Bank of Chongqing employees deserves the honors In 2020, the Bank concentrated on serving the strategy by building the talent pool. The Bank enhanced talent recruitment to satisfy overall As one of the two National Model Workers of the banking Chen Jing, Director of Software Development in the Science needs for talents, and set up the University of Bank of Chongqing to streamline the talent training and cultivation system. Meanwhile, the Bank and insurance organizations of Bank of Chongqing, Cheng and Technology Department of the Head Office won the title of integrated the organizational structure to uplift operation efficiency and enhanced the system planning to uplift the IT level of human resource. Yu excitedly entered the Great Hall of the People in the Chongqing Young Job Expert, who leads the creation of Big morning of Nov. 24, 2020 to attend the Commendation Data platform and joins several Big Data intelligence programs. Conference of National Model Workers and Exemplary The young staff team consisting of the staff of Internet Finance Individuals. Department, Internal Control and Compliance Department and Science and Technology Department of the Head Office won It was impressive to Cheng Yu's colleagues that when the Grand Prize of the 5th Chongqing Five-Minors Innovation Improve the construction of training system and she was in charge of the second-tier network office of Contest, and was honored as the "Young Entrepreneurship strengthen their own hematopoietic capacity. Starting Bank of Chongqing, Nanping Sub-branch, she managed to Office". Another three employees were honored as "Outstanding with the development and utilization of the two core resources of curriculum and teachers, the project overcome the negative impact of reduced traffic caused Individuals" in Chongqing Targeted Poverty Alleviation Labor and of "excellent teachers and excellent courses" was by network relocation, less loyalty of clients and intensified Skills Competition 2020. launched, and the internal trainer empowerment competition by her professionalism and perseverance training, Internal Trainer Certification and internal trainer in work. She was tied with the community and local Carrying forward the corporate culture of "Think Alike, competition were completed. 51 excellent courses and residents by tailor-made and affectionate services that Grow Together", the Bank's employees adhere to 142 internal lecturers were certified. achieved zero error and zero complaint, thus revitalizing the "Customer-centered" operation philosophy with the office business once again after relocation. wholehearted services, which become the precious wealth and solid foundation for the sustainable development of The Bank has a team of hardworking staff same as Cheng Yu. Bank of Chongqing. Advancing training work in a systematic way The Bank prepared interactive training forms The Bank started the special training of branch of class, seminar, case study and experience, offices and promoted the program by headquarter- designed the training program of premium quality, branch interaction. Through diversified and and conducted the online training of "Innovation differentiated training models, the Head Office and Driver • Enabler Improvement", special training of branches jointly advanced the design of training the officers in charge of secondary centers of the program and implementation of training projects, departments and officers of Head Office, online and the appraisal work was completed in Dec. financial training camp, etc. 2020.

Cheng Yu, National Model Worker

Commitment to Sustainable Growth of Employees

Strengthening democratic management

The Bank strengthened democratic management At the end of 2020, the Bank's labor union The major issues such as annual operations, by taking the workers' congress as the had one directly-affiliated labor union and 50 income and expenditure of labor union, and carrier, which discussed and adopted the grassroots labor unions, with a total of 182 usage of charity fund were submitted to major decisions and major issues relating full-time and part-time labor union cadres. In the workers' congress. The work of labor to the workers' interests, and protected 2020, the workers' congress was held twice union committee and the performance of their rights of participation in corporate to review and adopt the major issues such duties of labor union chairman were subject administration and the rights of knowing as Implementing Rules of Bank of Chongqing to democratic appraisal, and the reported and supervising the Bank's major decisions, for Handling Violation Cases of Employees problems if any were timely rectified so as to thus giving full play to the role of democratic and Regulations of Bank of Chongqing on ensure the employees' complaints have been management and supervision. Accountability Management. properly handled.

◆ Closing ceremony of new recruits training ◆ "Hyacinth Program" training of risk managers 46 Bank of Chongqing 2020 Report of Corporate Social Responsibility (Environment, Social, Governance) 47

Caring about employees' life Protecting Consumer's Rights and Interests Securing the principles of "caring for employees, years, and the season's greeting activities each Both the Head Office and branches set up gathering strength and warming heart" in place, year such as "Warm New Year" and "Cool Mommy's Rooms to serve as the rest places In 2020, pursuant to the requirements in and approved on the Party Committee contained in the Administrative Rules of the Bank put the service and care of employees Summer" that visited over 4,000 person-times for female employees preparing for pregnancy the Guiding Opinions of China Banking and Meeting on Nov. 16, 2020 and by the Board Bank of Chongqing for Protecting Rights and into practice. In 2020, the labor union of Head in 2020. Facing the outbreak of COVID-19 and in pregnancy and lactation periods. The Insurance Regulatory Commission on Banking of Directors on Nov. 20, 2020, which will Interests of Financial Consumers have been Office was rated as "Model Family of Workers at the beginning of 2020, the Bank allocated Bank took care of employees' mental health, and Insurance Organizations Strengthening the be tendered to the Shareholders' Meeting for amended. The Emergency Plan of Bank of in Chongqing" and the labor union of Liangjiang special funds to the grassroots labor unions to set up pressure relief rooms and held lectures Construction of System and Mechanism on deliberation and Chongqing Municipal Banking Chongqing on Sudden Incidents Concerning Branch rated as "Small Model Family of purchase the supplies of epidemic prevention on psychology, health, first-aid knowledge, etc. Protecting Consumers' Rights and Interests, and Insurance Regulatory Administration for Personal Information Protection has been Workers in Chongqing". and control, and visited nearly 1,700 members The comfortable staff fitness rooms are helpful the Bank further improved the system and approval. The duties and responsibilities of developed. of labor unions who worked on the forefront to employees maintaining good physical and mechanism on protecting consumers' rights the Board of Directors and the Consumers' The Bank has organized activities of "Visit to of fight against epidemic and had extraordinary mental state. and interests. The amendment was reviewed Rights and Interests Protection Committee Employee's Home" and "Inviting Employee's performance, and whose family members Relatives to Bank of Chongqing" for consecutive worked on the forefront of epidemic. Securing consumer protection during the pandemic period

CASE In 2020, the Bank followed the principles of of "One Hotspot, One Focus and Three of financial knowledge publicity, deepening "Prevention Utmost, Education Prioritized, Highlights", adopted targeted policies in routine training and optimizing customer Building "Smart Labor Union" and executing "Bookstore of Bank of Chongqing" project Lawful Protection of Rights, Coordinated winning the battle against COVID-19, service, and effectively protected the Case Handling" and the general policies perfecting system and mechanism, branding legitimate rights and interests of consumers. In both online and offline forms, the provide a place of learning and exchange. 200,000 episodes of audio books, 500 Bank built up the "Bookstore of Bank In addition, the Bank developed the magazines, etc. In 2020, the Bank's of Chongqing" for the employees. The digital reading platform of online employees totally read over 1.8 million physical reading rooms were set up in "Bookstore of Bank of Chongqing" that times and completed over 230,000 Key Progress the Head Office and branch offices to offers over 200,000 electronic books, books. Protecting clients' rights and interests in Securing remote service to clients credit investigation During the pandemic, the Bank took full advantage of The Bank elaborately considered the possible impact of the pandemic online methods to maintain smooth channels of consultation to effectively protect the rights and interests of individuals impacted and complaint, optimize the consultation and complaint by the pandemic. For the confirmed patients infected with COVID-19 workflow, and secure the remote service to clients. treated or quarantined in hospital, the suspected persons in quarantine and the working staff involved in epidemic prevention and control that Thinking alike with clients and meeting their urgent needs, were unable to effect repayment timely, the relevant overdue loans the Bank considered the intensively consulted matters were not recorded in the personal credit, and the reported overdue during the pandemic period, urgently sorted out and records were properly protected by credit information. For the clients improved the consultation service knowledge database, temporarily losing source of income under the pandemic impact, the and gave full play to the functions of customer service repayment deadline was properly postponed, and the credit record telephone, intelligent customer service and voice navigation was not influenced after such adjustment. By the end of 2020, the to answer the questions of financial service. Bank totally revised 344 credit records of impacted clients.

◆ "Power Gathering, Wave Riding" themed activity of teambuilding Perfecting convenient and facilitating measures

The Bank spared no effort to guarantee site receiving service for hospitals, The Bank guaranteed the smooth channel fundamental financial services during supermarkets and other livelihood- of fund transfer. For the transfer of the pandemic period, and opened the related units. By strictly separating the contingency fund for epidemic prevention express channel of account service and income channels from expenditures, and control as well as the transfer of cash service, totaling 189 accounts the Bank urgently bought 127 cash state treasury and fiscal capital, the related to epidemic prevention and disinfection devices that completed Bank secured contingency reaction, and control. The Bank assisted the Red disinfection of collected cash of adjusted the upper limit parameters of its Cross Society in receiving online and CNY7.895 billion and ensured people payment system timely and accurately, offline donations totaling CNY130 million. using the "safe and clean money". which guaranteed the smooth channel of The Bank provided 160 times of on- payment transfer.

◆ Outward bound training ◆ New Year Art Performance 2020 of Beibei Sub-branch 48 Bank of Chongqing 2020 Report of Corporate Social Responsibility (Environment, Social, Governance) 49

Constantly improving consumers' protection work mechanism Popularizing financial knowledge

With respect to the latest regulatory including the Board of Directors and the Chongqing on Sudden Incidents Concerning In 2020, the Bank focused on the about Telecommunication Fraud and Keep "Yu Xiao Xuan" to improve the awareness requirements, the Bank further improved the executives, and specify the whole process Personal Information Protection were people-oriented development concept Six Measures in Mind to Ensure Both Work of financial knowledge popularization brand. mechanism on protecting consumers' rights of consumers' protection from beforehand formulated for the purposes of improving in popularization of financial knowledge, Resumption and Epidemic Prevention, and The Bank also organized the financial and interests. The Administrative Rules of control, amid coordination and post-event the quick complaint settlement mechanism, earnestly implemented the regulatory the articles on Wechat official account such publicity and education events such as March Bank of Chongqing for Protecting Rights and settlement. In addition, the regulations executing multi-level and dimensional requirements, initiated the theme of "Thinking as Safeguard Personal Financial Information, 15 Consumer Rights Protection publicity Interests of Financial Consumers was revised such as the Administrative Rules of Bank supervision and inspection, and thus Alike with Finance Education, Growing-up Don't Leave A Door Open to Criminals and Week, Journey of Financial Knowledge to further clarify the scope of application of of Chongqing for Information Disclosure effectively eliminating risk and near-accident. Together to Safeguard Rights", combined the Your Invulnerable Shield against Covid-19 Popularization and Popularization of Financial consumers' rights and interests protection Management of Consumers' Rights and themed education with routine education as is In Place, which were forwarded by all Knowledge in Publicity Month of 2020. and the duties and responsibilities at all levels Interests and the Emergency Plan of Bank of well as online-offline modes, started from the the Bank's employees to spread financial demand of consumers' financial knowledge, knowledge to mass financial consumers. Combining poverty alleviation with enriching and organized the public financial knowledge Besides reminding the adoption of epidemic people's knowledge, the Bank selected the Enhancing complaint settlement management publicity and education in diversified channels control measures, the practice improved crowded places in poverty-stricken villages and forms, which improved the knowledge the anti-fraud and financial risk identification like convenient service center, village party level and financial quality of mass financial abilities of consumers staying at home. branch and comprehensive culture station The Bank improved the decision execution the Bank revised the Administrative Rules complaint, probed into the causes and present consumers, and strengthened their capabilities to set up the outlets for publicity of financial and supervision mechanism of complaint of Bank of Chongqing for Settlement of status of complaints, and proposed follow- of risk identification and self-protection. The Bank produced diversified educational knowledge and poverty alleviation policies, management. With respect to the Customer Complaints and formulated the up improvement, thus constantly reforming materials on the topics such as Online and arranged the experienced personnel to Administrative Rules for Settlement of Administrative Rules of Bank of Chongqing and improving the products and services. A Considering the requirements on epidemic Payment Security, Rational Consumption, perform financial publicity and education by Consumer Complaints in Banking and for Quick Settlement of Customer Complaints complaint coordination team for consumer prevention and control, the Bank designed Prevention of Identity Theft of Bank Card, pairing aid and on-site visit. In 2020, the Insurance Industry published by China Banking to improve the quality and efficiency of protection was established to analyze and worked out the instructions on epidemic Learning Credit Investigation Knowledge, Bank organized over 200 times of financial and Insurance Regulatory Commission complaint settlement from the source. complaint cases from different perspectives control and financial service, and the blogs and Staying Away from Illegal Financial Activities knowledge publicity and education activities in and in light of the practical experience of of business, consumer, law, etc. and develop online animations against telecommunication and Poverty Alleviation by Inclusive Finance the poverty-stricken areas. complaint management over the years, The Bank also strengthened data analysis of solutions to properly handle complaints. fraud, such as the animations of Tightened and Support to Rural Rejuvenation, and Epidemic Prevention and Control, Caution created a publicity and education brand of

CASE

Popularizing financial knowledge in villages

On Sep. 24, 2020, the Bank visited prevention, use formal financial service hazard of selling, leasing or lending Sanjian Township, Fengdu, a municipal- and protect rights and interests according personal account. The Q&A session level impoverished township to provide to law. The education personnel entered with prize deepened local people's publicity and education service themed the stores along the street to set up understanding of publicity contents with with "Month of Financial Knowledge financial knowledge publicity stations that better learning effect. Popularization to All, To Be Rational popularized basic financial knowledge Investors and Well-behaved Online to the villages on the market day. The The activity attracted nearly 200 local Finance Users". skit of Crazy Loan made the anti-fraud residents and received positive response. knowledge easier to understand. Through The villagers said they had a deeper The activity brought financial knowledge diversified means of publicity video and understanding of financial knowledge to the countryside, and helped the mini classroom, the education personnel and welcomed more publicity and local households of Sanjian Township popularized the knowledge of popularization activities like this. enhance their awareness of financial risk and personal credit, telling them the

◆ Providing services of premium quality under the client-centered principle ◆ Knowledge accompanies happy growth 50 Bank of Chongqing 2020 Report of Corporate Social Responsibility (Environment, Social, Governance) 51

Actively Carry Out Social Public Welfare CASE Care of Bank of Chongqing The Bank is committed to "Think Alike, Cross Society, which effectively supported charitable support and volunteer service. Grow Together" corporate culture the epidemic prevention and control work For the special group like migrant workers, The Zhongshan Road Sub-branch in newspaper, water dispenser, etc. as well environmental marks, environmental development, adhering to the original in a timely manner，and actively assisted disabled people, laid-off workers and Liupanshui starts small to convey the care as anti-collision strips on glass door and protection tips, books and battery intention of public welfare and practicing Chongqing Red Cross Society in developing senior citizens, the Bank provided express of Bank of Chongqing. The sub-branch warm tips of "Burn Care" and water quality recycling box. A mini book bar is the responsibility of state-owned the online donation channel, launched the channel, barrier-free ramp and window of provides the channel and call button for instruction. deployed with the books on parenting, enterprises, actively carries out kinds of "COVID-19 real-time aid platform" and love plus the facilities like priority seats, the disabled people to ensure quick and children and health. In addition, the public activities. quickly responded to the needs of epidemic LCD display and voice broadcast. Where effective service, and sets a convenient In addition to environmental friendly blood-pressure meter is available to the prevention and control of the poverty- conditions allowed, some sub-branches set zone in the hall with facilitating items like interior decorations, the sub-branch public in the controlled area. The sub- Facing the outbreak of COVID-19, the stricken counties so as to win the critical up convenient service sites to convey our wheelchair, baby carriage, first-aid box, lays stress on the environmental branch creates a warmhearted rest place Bank The bank took the lead in donating battle against the pandemic. Meanwhile, warmhearted care of "Think Alike, Grow reading glasses, umbrella, magazines and awareness, and the hall is provided with for the community residents and clients. 10 million yuan of special fund for epidemic the Bank continued to devote our care and Together". prevention and control to Chongqing Red company such as educational donation,

Donation of epidemic prevention supplies to impoverished primary schools

Key Progress The Bank actively responded to the force of relevant departments and branch disposable gloves, 1,200 bottles of hand call for targeted poverty alleviation and offices to donate epidemic-related sanitizer, 570 barrels of alcohol and 90 Assisting Red Cross Society developing online Launching "COVID-19 real-time aid deployment of epidemic prevention and supplies to the primary schools located bags of disinfectant powder that helped donation channel platform" control by Chongqing CPC Municipal in the remote pairing impoverished the local teachers and students reopen Committee, the Municipal Government towns. The six primary schools including schools as schedules and fight against and the Municipal State-owned the Central Primary School of Yanhe COVID-19. To meet the needs of online donation during the pandemic period, During the lunar New Year in 2020, the Bank worked Assets Supervision and Administration Township, Chengkou County received the Bank assisted Chongqing Red Cross Society in developing with WeDoctor Group to launch the "COVID-19 real-time Commission. The Bank formed joint 38,000 masks, 3,000 pairs of the online donation channel. Overcoming difficulties like tight aid platform" at the Bank's Wechat account to provide schedule and personnel allocation, the Bank employees worked free services including real-time epidemic information, day and night for 60 hours to complete the development work online consultation, epidemic screening and examination, Charitable donation to schools including demand setting, function developing, payment channel popularization of epidemic prevention knowledge, creating and online testing. As of the end of donation period, guidance on suspected case, guidance on "stay-at-home" the platform received 11,000 donations with a total amount of quarantine, philological advice, etc. that conveyed the On October 29, 2020, Xi'an Branch water apparatus and heating equipment Bank also organized summer camps CNY2,036,100. Bank's care and support to clients. held a charity donation ceremony at the in summer. for impoverished children to broaden playground of Xiangxiao Town Primary their horizon, and donated books and School. The amount of CNY46,360 Since 2018, Xi'an Branch donated rain shelters that created a haven of was all donated by the employees of street lamps to solve the lighting knowledge and protection, and greatly Xi'an Branch and used to improve the problem on the roads to schools and 12 improved the reading environment of school's infrastructure e.g. purchase of sets of chairs and tables to improving schools. office computers, installation of drinking the working conditions of teachers. The

◆ Fengjie Sub-branch visits the forefront medical workers ◆ Conveying the love, creating the future 52 Bank of Chongqing 2020 Report of Corporate Social Responsibility (Environment, Social, Governance) 53

The Bank of Chongqing followed the Appendix XXVII of Hong Kong Stock Exchange Guides on Environment, Social and Governance ESG Disclosure Report to finish the ESG disclosure.

Governance

For this part, please refer to the parts of Improving Corporate Governance, Promoting Green Finance, Protecting Consumers' Rights and Interests.

Environmental Level A1: Level A2: Level A3: Emissions Use of Resources Environment and Natural Resources, please refer to the Implementing Green Operation and Key Performance.

Level A4:Climate change

Adopting the Equator Principles

On Feb. 2, 2021, approved by the green finance, and reflects the Bank's Equator Principles Association, the voluntary responsibility as a public listed Bank of Chongqing officially adopted city commercial bank. Becoming an the Equator Principles, which was "Equator Bank" is an effective way to the 7th "Equator Bank" in China get the best practice of world-class that opened a new chapter of further financing sustainability and improve the practicing the green development competency of green financial service. concept and accelerating the innovative It is an inevitable choice to achieve development of green finance. sustainable development and consolidate The Bank will seize the policy opportunity of will further take advantage of the group's grant differentiated credit loans in accordance market competitiveness. Chongqing establishing a pilot zone of financial strength, simultaneously promote green with the environmental and social risks of The Bank of Chongqing remains true to reform and innovation, closely align with loan, green bond, green leasing and green applicant enterprises. the original aspiration of serving green Next the Bank will fully implement all the key reform pilot zone, work with the consumption, and thus improve the development, studies and implements the requirements of Equator Principles, government to jointly serve the high-quality comprehensive service capability of green Optimized appraisal and incentive: the Bank the theory of "Lush Mountains and get more deeply rooted in the locality, green enterprises, support transformation and energy. will optimize appraisal measures, enlarge Lucid Water", follows the path of fulfill social responsibility, boost green upgrading traditional industry, uplift service the discount of green loan business, improve "Ecology-oriented Development of finance and carry forward the reform at level of strategic emerging industry, and take Diversified financial products: the Bank will employees' professional capabilities as a Industry and Industrialization of Ecology financial supply side in the new situation active action to mitigate climate change. work with the authorities of ecology and whole, and give full play to the enthusiasm Business", strengthens the guarantee of "dual circulations", thus contributing environment to actively participate in and and creativity of branch offices in the of green finance policies and resources, to the green and low-carbon At the same time, the Bank strives to build boost the carbon emission trading market development of green finance. and provides strong financial support development and the realization of a holistic green finance development system in Chongqing, explore the special green to the green transformation of key "30-60 carbon peaking and neutrality and targets at a regional green bank. The finance products like carbon emission rights industries and key sectors. The adoption targets". plans on the dimensions of target, product, and emission right pledge, and improve the of Equator Principles demonstrates management and appraisal are developed and distinctive service capability. the Bank's determination of developing implemented that lay a solid foundation for Enhanced process management: the Bank will addressing climate challenge. grasp the opportunity of building an Equator Bank to develop the general environmental Clarified development goals: the Bank and social risk management system, and 54 Bank of Chongqing 2020 Report of Corporate Social Responsibility (Environment, Social, Governance) 55

Social CASE Safeguarding health and security during the pandemic

Level B1, B4: Employment, labor standard lies in the northeastern Sub-branch immediately purchased clients to online services by Wechat, part of Chongqing bordering Hubei masks and disinfectant to make regular SMS and telephone so as to reduce the Province. In order to protect the health disinfection every day and give masks to number of clients at counter and prevent The Bank strictly abides by the laws and personnel, improves personnel recruitment Operation Organizations of Bank of Chongqing and safety of employees and clients, after the visiting clients. Meanwhile, the sub- the risk caused by visitors flow. regulations on labor and employment, actively and configuration, streamlines duties and and Regulations on Selection and Appointment the outbreak of COVID-19, Wanzhou branch's employees were asked to guide maintains the sound employment relationship, functions of departments and posts, and of Middle-level Management Personnel and forbids any child labor. The Bank keeps endeavors to create a modern human of Bank of Chongqing were amended and improving the welfare measures to protect resource management system. In 2020 the released. employees' rights and interests, adheres two policy documents namely Regulations to the principle of fixed post, rank and on Remuneration Management for Heads of Security drills

On Dec. 16, 2020, the Zunyi Branch triggering the alarm, reporting case all its employees. In the preset pressure organized the emergency drills for by phone, evacuating the crowd and scenarios like public security event and Level B2: Health and safety preventing robbery and preventing bank reporting the major event to authorities, natural weather, the employees fully run. The whole drill was well scheduled which achieved the expected effect. understood the necessity of drill and Confronting with the outbreak of COVID-19, the epidemic prevention requirements like for 38,000 person-times, conducted over that the participating employees were improved their awareness of safety the Bank firmly advanced the epidemic Notice on Further Strengthening Epidemic 42,000 times of safety inspection, timely able to finish all tasks such as detecting In the evening of Dec. 29, 2020, the and precaution as well as the ability of prevention and control work, precisely Prevention, provided financial safety and completed all needed rectifications of the suspected situation, protecting life and Fuling Sub-branch organized the drill handling emergency cases. secured "inspection guidance, quick security services and effectively guaranteed detected problems, and eliminated any property of themselves and others, of sudden safety incident attended by response, management and control, risk the health of employees and on-site clients security or safety incident, thus attaining the screening, information reporting and hazard and the overall safe and stable operation. In goal of "zero case and zero accident". identification" in place, immediately issued 2020, the Bank organized safety education

Records of epidemic prevention and control

In the tough time of epidemic prevention collected the information of all COVID-19, he volunteered to stay and control, the Bank's employees at employees' daily activities to keep on the forefront. To relieve the work all levels volunteered to suspend annual abreast of their health status, and pressure of his colleagues, he often leave to secure the responsibility, reasonably arranged business hours shuttled among three branch offices. He manpower and execution of overall to guide the public handling business strictly implemented the regulations of epidemic prevention and control in through other channels like online bank epidemic prevention and control, helped place. They guaranteed the epidemic- and mobile bank. take temperature of colleagues and related supplies to maintain both the clients, sterilized office areas, business personal health and environmental In the fight against the pandemic, space, self-served equipment and sanitation, actively forwarded all kinds some security and service staff's accommodation areas, registered the of notices and documents of superior stories are touching. Zhao Dingliang, clients entry & exit record and provided authorities to make all staff clear about a security guard of Jiulongpo Sub- home-delivery security defense at the policies, strengthened management of branch, comes from the countryside of collection sites. He is famed as the office space to apply flexible working Fuling, Chongqing and has old parents "Anti-pandemic Pioneer" of the sub- hours like online office and decentralized in their seventies and a small kid. His branch. office with strict temperature check, family is poor. After the outbreak of

◆ Safeguarding health of employees and clients during the pandemic period 56 Bank of Chongqing 2020 Report of Corporate Social Responsibility (Environment, Social, Governance) 57

Level B3: Development and training Level B6: Product responsibility

For the information of talent training plan in Perfecting organizational structure to improve of employees and optimize talent cultivation In 2020, the Regulations of Bank of compliant operation, observed the work strengthen internal control and management, the Fourteenth Five-year Plan period and operational and managerial efficiency: with and appraisal so as to further improve their Chongqing on Management of Employee discipline and confidentiality principle, and prevent financial risks, execute standard the employees development and training in respect to the adjustment and change of occupational development channel. Thirdly Behaviors was enacted to further standardize abided by all the incorruptible requirements. procedures to deal with employee's violating 2020, please refer to the Strategy – Talent departmental duties and responsibilities the Bank will optimize the system of the employees' behaviors so that they The Implementing Rules of Bank of behaviors, and thus guarantee sound, Cultivation Planning, Practice –Commitment of the Head Office, the Bank will revise appraisal indicators with enhanced process maintained good professional ethics, honesty Chongqing for Punishment of Employee's sustainable and stable business development. to Sustainable Growth of Employees and and optimize the descriptions of duties monitoring, set up performance feedback and and due diligence, adhered to lawful and Violating Behaviors was released to further Key Performance. This section describes the and posts. The Bank will also enhance and communication mechanism, lay stress on the employees development and training in 2021. standardize the settings of internal structure appraisal results, and strengthen the double- and management posts of the branch offices, benchmarking of performance appraisal and Enhancing all-covering training on consumer protection The Bank will optimize the recruitment build a standardized structural system, incentive level. process to improve the talent attraction improve the operational and managerial Organizing themed training with full coverage: Bank organized the themed training and internal Banking and Financial Consumer Protection mechanism, expand the recruitment channel efficiency of branch offices, and thus realize Prioritizing system planning and advancing the Bank organized live stream training of training competition of senior management, Training. The Bank actively and thoroughly to attract more talents, and realize online scientific setting and streamlined and efficient the digital transformation of human resource: designated staff, improved their professional middle-level management, designated posts secured the Implementing Rules of the process of recruitment to revitalize the entire structure up to the same standard. the Bank is building the model-platform-data ability by analysis of regulatory policies, of consumer protection and grassroots staff, People's Bank of China for Protection of resources and build the talent matching trinity human resource information system, explanation of practical operation and sharing which effectively enhanced the employees' Financial Consumer's Rights and Interests in mechanism shared by the whole bank. Strengthening remuneration management create a human capital analysis platform, add of advanced experience, and cultivated awareness of proactively learning and practicing place, and organized the themed training of and deepening performance appraisal: firstly management cockpit to the existing human professional training teams to conduct the consumer protection, and strongly supported all the employees covering the Head Office's Improving talent selection mechanism, the Bank will build the overall remuneration resource management system, and aims to retraining of all their subordinate members. the Banking fulfilling the main responsibility of management, member departments of expanding channels for talent. the Bank will mechanism by general consideration of the realize the intelligent platform of "visualized The Bank collected the typical cases of consumer protection and preventing financial consumer protection leading group, all levels of intensify the competitive selection of talents, Bank's development strategy, operation plans data, visible management and searchable social concern such as telecommunication risks. branch offices and front-middle-back ends. actively advance competitive and open and targets, KPI per capita, etc. Secondly the talents". and cyber fraud, illegal fundraising and theft recruitment, broaden the talent selection Bank will better the career development path identity, produced three mini flash classes The Bank signed the agreement on and use channel, and give priority to the and uploaded them to the Palm Academy, confidentiality with the new recruits, promotion and selection of the talents who organized all staff learning the practice and incorporated the consumer-protection-related have worked in the forefront for a long time experience of customer protection by utilizing knowledge and job requirements into the and achieved excellent performance. fragmentary time, and consolidated their training of new recruits, and deepened their risk awareness and contingency reaction understanding of protection of consumer's Improving training system and building the capability. For the middle-level management rights and interests. The Bank periodically University of Bank of Chongqing: the Bank staff, the Bank organized expert lectures checked the behaviors of employees on the will concentrates on the construction planning to explain the present status and difficulty forefront posts, and identified whether there of the University of Bank of Chongqing, of client information protection in bank was any infringement of consumer's rights further build and improve training system, operation from the perspectives of policies and interests. The training course of "Starting advance training of management talents and and regulations, awareness and concept, and from Consumer-Theory and Practice of improvement of their professionalism and operation practice. Protecting Consumer's Rights and Interests" general capabilities, expedite construction dedicated for new recruits was designed and operation of hardware and software The Bank carried out uninterrupted routine that helped them establish the awareness platforms, and push forward and improve the training. Owing to the impact of the and improve work capability of consumer Bank's key training programs in an all-round pandemic, the previous training mode of protection. "learning one case of consumer protection manner. ◆ "Top Tutors, Best Courses" program of Bank of Chongqing each day" was changed from a morning The Bank strengthened interactive training and meeting to the learning via Wechat group, competition. On the learning platform of "Palm and employees were required to share Academy", the Head Office organized the Level B5: Supply chain management study notes and ideas, which continuously "Knowledge Test on Protecting Consumer's consolidated the employees' awareness of Rights and Interests" attended by 3,445 protecting consumers' rights and interests. employees, which expanded the training The Bank integrates the concept and is strictly implemented throughout the stipulates that priority should be given to coverage, verifies the training effect, and requirements of fulfilling corporate social procurement process, and the column of the procurement of energy-saving and Through expert lectures, animation mini- selected the winners to attend the qualifier responsibility into the whole procurement "procurement information" is launched on the environmental-friendly products. The factors class, analysis of regulatory policies, etc., the competition of Chongqing Knowledge Test of process, and compiles the Regulations official website so that the non-confidential of environmental and labor protection should of Bank of Chongqing on Procurement information and procurement issues are all be involved in the contractual terms and Management and the Regulations of Bank subject to public superintendence. In addition, conditions, and the access of environmental of Chongqing on Procurement Bidding the procurement is more transparent by other certification of vendors be implemented so as Enhancing marketing and cooperation management Supervision and Management that clarify means like amended catalog for centralized to convey the value of green, environmental- The Bank conducted random inspection of of product inquiry platform, and set up the dynamic business status of partners. The the procurement process and regulatory procurement and publication of reporting friendly and sustainable development, and double recording (audio & video) in sales regular self-examination mechanism. Bank standardized the cooperation on financial provisions. The involved employees are mailbox and phone. realize responsible procurement together with process on a quarterly basis to guarantee marketing and publicity, and strictly managed required to sign on the Job Responsibility the Bank's partners. the sales were compliant and well-behaved. The Bank enhanced management of the agreements of cooperation with clarified on Case Prevention and Control Objectives. The Regulations of Bank of Chongqing The double recording was also included in the partnering entities and tightened the access duties and responsibilities of both parties so as The principle of openness and transparency on Procurement Management clearly special inspection of consumer protection. The of partnership. Regular inspection and to void any false or exaggerated promotion in Bank revised the regulations on management assessment were conducted to monitor the the name of the Bank. 58 Bank of Chongqing 2020 Report of Corporate Social Responsibility (Environment, Social, Governance) 59

Level B7: Anti-corruption Deepening anti-money laundering work The Bank further perfected the organizational Money Laundering, Notice on Enhancing and suspected transaction report to the local Intensified efforts to combat corruption and build a clean bank structure and internal control system against Improving Client's Money-Laundering Risk branch of the People's Bank of China, and at money laundering by issuing the documents Rating, Regulations of Bank of Chongqing on the same time followed the risk instructions In 2020, the discipline inspection and play to the role of execution guaranteed by governance, deepened the supporting systems such as the Regulations on Risk Management Operation and Management of Anti-Money of the People's Bank of China to investigation supervision team to the Bank of Chongqing supervision and development boosted by of duty fulfillment report, interview, report on against Money Laundering and Terrorist Laundering Platform, and Regulations of Bank risk of enterprises suspected of wildlife of Chongqing Municipal Discipline Inspection perfection, and advanced the Bank's building accountability and integrity, examination and Financing of Subsidiaries Controlled by Bank of Chongqing on Monitoring and Management trafficking and pyramid selling. No client of and Supervision Commission considered good conduct and political integrity and fighting appraisal, etc., and taken special action to of Chongqing, Notice of Bank of Chongqing of Anti-Money Laundering List. the Bank has been found to be directly or the present operation and management corruption steadfastly and prudently. With strengthen oversight and discipline enforcement on Clarification of Highly Risky Countries, indirectly involved in the aforesaid illegal acts. situation of the Bank, adhered to the principle solid fulfillment of responsibility as the key in light of the Head Office's party committee in Regions, Sectors and Jobs Relating to The Bank timely tendered the critical of "improvement in stable progress" and mission, the Bank has profoundly exercised fulfilling the principal responsibility. "tightened supervision", implemented the full and strict party governance, established reform requirements of the group, gave full the leading group of full and strict party Organizing anti-money laundering Cultivating financial culture free from corruption training

Organizing "Grasping Trends, Identifying Key Organizing "Learning Systems, Securing In Nov. 2020, the Bank organized a special-featured "walls, corridors, sites, diversified publicity and educational Points" anti-money laundering training of middle- Compliance" knowledge contest of anti-money clean financial culture building workshop rooms" to create the atmosphere of programs, and adopted the action of and high-level management: the Bank invited the laundering: by the internal "Palm Academy" themed with "Cultivating Bank's Moral financial culture free from corruption, "Tightened Supervision and Cleaner anti-money laundering experts to hold lectures for platform, the Bank organized the knowledge Free from Corruption to Safeguard took the "Breeze Escort" educational Moral" to strengthen responsibility the Board of Directors, senior management and Organizing "Learning Practice, Ensuring Duty contest attended by more than 3,900 employees Clean Finance". The Bank designed activity as the carrier to carry out fulfillment and behavioral restraint. middle-level management staff that were attended Performance" anti-money laundering access with an attendance rate of over 90%. The event by more than 350 employees. The training focused training: the Bank organized nearly 300 employees popularized the basic knowledge of anti-money on the trends of anti-money laundering and clarified involved in anti-money laundering work to laundering, and created better working environment the directions and key points of anti-money attend the access training of China Center for in the whole Bank. laundering work for the management staff. Financial Training and all of them have passed the examination, which further consolidated the work foundation of anti-money laundering.

The discipline inspection and supervision team to the Bank will urge and help the Bank to keep building the platform of financial culture free from corruption, innovate the clean financial culture carrier, create the financial cultural brand with the characteristics of Bank of Chongqing, and forms strong atmosphere of keeping integrity in mind, ensuring everything and everywhere free from corruption and respect by all. Fulfilling review and audit duties and responsibilities Earnestly conducting compliance review: to win the critical battle of "preventing and Improving accountability mechanism and -Jiang Xuan, Member of Party Committee of Bank of Chongqing, Head of Discipline Inspection and Supervision Team to Bank of under the guidance of "risk control and value mitigating major risks" and "targeted poverty foster compliance culture: the Bank made Chongqing creation by compliance", the Bank regarded alleviation", positively implemented the thorough revision of the accountability the compliance review as a necessary policies of "supporting real economy" and management regulations, established a step in formulating rules and regulations, "promoting work resumption" in the regular hierarchical accountability system with developing new business and products and epidemic prevention and control stage, streamlined management and interconnection making decisions on major issues. Effectively and performed the tracking audit for the between Head Office and branches, and integrated in the business process and implementation of "epidemic-related special through accountability investigation and operation activity, the compliance serves as refinancing" and "refinancing for micro and proper whole-organization training sorted a solid pillar of business development and small businesses" of the People's Bank of out and clarified the accountability philosophy operation management. China so that the funds were used in the and methodology, thus firmly establishing the most needed places. The Bank enlarged awareness of accountability and compliance Training on integrity practice Effectively fulfilling audit and supervision audit input in key areas, highlighted the throughout the Bank. duties and responsibilities: from the risk-oriented approach, focused on the perspective of the third defense line of risk critical steps and effectively prevented the The Bank deepened the mechanism the business departments heads and alerting education meetings and 2 party prevention and control, the Bank strived occurrence of financial risks. of internal "Greater Study, Greater backbone employees to regularly teach integrity classes, ran the column of Discussion", organized in-depth study financial knowledge to the discipline "discipline inspection and supervision" of by all the staff and improved the inspection and supervision staff, and OA system with 37 issues of relevant awareness and competency of doing totally organized 5 centralized lectures. information, and published the quarterly Level B8: For community investment, please refer to the Actively Carry Out Social Public Welfare business according to disciplines, The centralized off-job training was Window of Integrity Practice of Bank of laws and regulations. The Bank also organized to improve the governance Chongqing. established the mechanism requiring and job abilities. The Bank convened 4 60 Bank of Chongqing 2020 Report of Corporate Social Responsibility (Environment, Social, Governance) 61

Key Performance

Comprehensive performance Social dimension – training of employees Economy 2020 2019 2018 Employees by gender Employees by type Total assets (thousand yuan) 561,641,397 501,231,864 450,368,973 Head Office Middle-level Male Female Senior management Grassroots Net profit (thousand yuan) 4,565,695 4,321,457 3,822,095 management Shareholders' equity (thousand yuan) 40,174,997 36,949,429 33,051,012 Trained employees 490 518 12 72 924 Capital adequacy ratio (%) 12.54 13.00 13.21 Training hours 11,368 12,017 502 3,240 19,644 Balance of agriculture-related loans (100 million yuan) 413.05 310.13 284.8 Employees by gender Employees by type Balance of microloans (100 million yuan) 833.22 798.67 749.43 The whole bank Middle-level Male Female Senior management Grassroots Balance of targeted poverty alleviation loans (100 million yuan) 29.75 22.49 12.63 management Social contribution value per share (yuan) 6.47 6.21 5.95 Trained employees 1,922 2,479 12 205 4,184 Total number of employees (person) 4,401 4,274 4,119 Training hours 43,478 56,078 502 10,100 88,954 Proportion of female employees (%) 56.33% 56.06% 55.98% Proportion of female leaders (%) 28.57 27.27 24.30 Social dimension – death of and injury to employees in work Bank outlets 145 142 140 The whole bank 2020 2019 2018 Substitution rate of electronic transaction volume (%) 91.6% 86.5% - Death in line of duty (person) 0 0 0 Customer satisfaction (score) 92.42 91.41 92.51 Lost time of work injury (day) 240 0 150 Customer complaints 1,300 959 990 Customer satisfaction of complaint settlement (%) 86% 94% 93% Social dimension -- Suppliers' data Charity donation (thousand yuan) 17,543 9,960 9,562 Quantity of partnering supplies in 2020 by region Region Chongqing Beijing Guangdong Shanghai Zhejiang Sichuan Social dimension-employees structure Quantity 8 54 25 18 11 7 Employees by gender Employees by age Data scope Male Female < 30 years old 30-50 years old >50 years old Environmental dimension Head Office 490 518 97 843 68 (CNY100 million) The whole bank 1,922 2,479 795 3,312 294 Index 2020 2019 2018 1. Projects of green agriculture development 4.26 2.38 0.87 Employees by region Employees by type (Statistics of employee's native place preferred) 2. Projects of green forestry development 25.24 8.88 1.72 Data scope 3. Projects of industrial energy and water conservation, and Senior Middle-level 8.06 3.78 0.51 Grassroots Chongqing Sichuan Guizhou Others environmental protection management management 4. Projects of natural protection, ecological restoration and disaster 15.46 13.13 17.24 Head Office 12 72 924 680 143 6 9 170 prevention and control The whole 5. Projects of resource recycling and utilization 7.53 1.14 0.73 12 205 4,184 2,697 615 170 208 711 bank 6. Projects of garbage treatment and pollution prevention 11.11 5.33 5.3 Employee turnover by gender Employee turnover by age 7. Projects of renewable energy and clean energy 12.61 11.16 8.06 Data scope Male Female < 30 years old 30-50 years old >50 years old 8. Rural and urban water projects 16.08 9.99 4.24 Head Office 17 14 8 23 0 9. Building energy conservation and green building 17.02 9.57 0.05 The whole bank 81 93 79 95 0 10. Green mobility project 16.97 21.44 13.34 Employee turnover by region (Statistics of employee's native place preferred) Data scope 11. Energy conservation and environmental protection services 9.76 3.50 1.76 Chongqing Sichuan Guizhou Shaanxi Others 12. Balance of green loans(Sum) 144.10 90.30 53.83 Head Office 23 4 0 0 4 The whole bank 85 26 21 21 21 13. EIA rate of loan project 100% 100% 100% 62 Bank of Chongqing 2020 Report of Corporate Social Responsibility (Environment, Social, Governance) 63

Greenhouse gas emission and density at Head Office (scope 1 and scope 2) Independent Assurance Report Item Unit 2020 2019 2018

Emission of vehicles (scope 1) Ton 25.28 30.96 50.76 Emission of canteen LNG emission Ton 67.43 92.17 90.69 (scope 1) Emission of electricity use (scope 2) Ton 1,481.74 2,024.90 1,731.79 Total GHG emission Ton 1,574.45 2,148.03 1,873.24 Density of GHG emission Ton/m2 floor area 0.01 0.02 0.02

Note 1: The GHG emission is calculated as per the Instructions on Carbon Dioxide Baseline Emission Factor OM Calculation for the Power Grid in China in 2019. Note 2: The floor area refers to the floor area of office buildings of Head Office.

Air pollutant emission of public vehicles owned by the Head Office

Item Unit 2020 2019 2018 NOx kg 3.16 15.26 21.78 SOx kg 0.18 0.20 0.33 CO kg 67.25 147.58 237.50 PM2.5 kg 0.30 0.70 1.08 PM10 kg 0.30 0.77 1.18

Note 1: The emission of air pollutants from the public vehicles is calculated as per the Technical Guides for Preparing Air Pollutant Emission List of Road Motor Vehicles issued by the Ministry of Ecology and Environment of the PRC.

Resource consumption and intensity of the Head Office

Item Unit 2020 2019 2018 Electricity consumption 10MWh 281.86 331.90 329.35 Electricity consumption density kWh/m2 floor area 26.50 31.21 47.05 Water consumption 10,000 tons 3.33 6.26 3.27 Water consumption density ton/m2 floor area 0.31 0.59 0.47 Gas consumption 10,000 m3 3.19 4.36 4.29 Gas consumption density m3/m2 floor area 0.30 0.41 0.61 Gasoline consumption (by vehicle) 10,000 l 1.18 1.33 2.19 Gasoline consumption density (by l/vehicle 1,072.73 1,213.53 1,290.59 vehicle)

Quantity and density of harmless wastes of the Head Office

Item 2020 2019 2018 Quantity of kitchen wastes 3.95 (tons) 87,120 (liters) 86,400 (liters) Density of kitchen wastes 0.004 (tons per capita) 89.26 (liters per capita) 97.19 (liters per capita)

Note 1: The statistical unit was adjusted to "tons" in 2020. 64 Bank of Chongqing 2020 Report of Corporate Social Responsibility (Environment, Social, Governance) 65 66 Bank of Chongqing 2020 Report of Corporate Social Responsibility (Environment, Social, Governance) 67

Appendix Feedback Form for Readers Notes to Report Dear readers, Thank you very much for taking time to read the Report of Corporate Social Responsibility (Environment, Social, Governance) of Bank of Chongqing 2020. We look forward to your valuable comments and feedback, which help us improve the report. Organizational scope of the report: Head Office and branches of the Bank of Chongqing. The "Bank of Chongqing" and "the Bank" herein both refer to Bank of Chongqing Co., Ltd. Best regards! Scope of report Time scope of the report: from Jan. 1, 2020 to Dec. 31, 2020 with part of contents beyond this time scope. Bank of Chongqing Co., Ltd. Publishing cycle of the report: the report is published annually. March, 2021

The report is compiled in accordance with the Opinions on Strengthening Social Responsibility of Banking Financial Institutions of the former China Banking Regulatory Commission, the Guidelines on Corporate Social Responsibility of Chinese Banking Financial Institutions of China Single choice question (please tick the option √ ) Banking Association, the Guidelines on Environmental Information Disclosure of Public-listing Basis of compilation Companies and the Report on Company Fulfilling Social Responsibility of Shanghai Stock Does the report comprehensively and accurately show the Bank's major impact on economy, society and environment? Exchange, and the relevant requirements of the Guides on Environment, Social and Governance Report of Hong Kong Exchanges and Clearing Market. Meanwhile, reference has been made to □ Excellent □ Good □ General □ Bad □ Very Bad the GRI Standards of GSSB, the Guidance on Social Responsibility (2010) of ISO 26000 and the Guidance on Social Responsibility (GB/T36000) of Standard Administration of the PRC. Does the report respond to and disclose the most concerned issues of stakeholders?

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Are the information, indicators and data disclosed in the report clear, accurate and complete? The financial data in the report are extracted from the Annual Report of Bank of Chongqing Co., Ltd. Excellent Good General Bad Very Bad Data specification in 2020 (A-share) while other data are mostly within the year of 2020 with part of them beyond □ □ □ □ □ the time scope. All the current amounts in the report are in the unit of Renminbi yuan. What is the readability of the report the logic thread, content, language and format of the report?

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The report is published in both hard copy and soft copy. Open questions The softcopy is available at: http://www.cqcbank.com Publication form The report is in three language versions of simplified Chinese, traditional Chinese and English. In case What information you intend to know is not contained in the report? of any inconsistency therebetween, the simplified Chinese version should prevail.

Office of Board of Directors, Bank of Chongqing Co., Ltd. Address: 6 Yong Ping Men Street, Jiangbei District, Chongqing, China Contact information Zip code: 400024 What is your advice on our future reports? Phone: +86 (0)23 63799024 This report is made of renewable environmental protection paper

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