2019 Corporate Social Responsibility Report of Industrial and Commercial Bank of China Limited
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Contents Chairman’s Message 04 President’s Message 06 About Us 10 Annual CSR Progress 12 Social Responsibility 15 Management ESG Report 17 Rigorous Upholding the Technology International Pragmatic Security, Corporate Principle of Driving and Vision, Global Transformation Prudence Governance Customers First Value Creation Operation and Reform for and People- and Serving the Development Oriented Real Economy Modernization 26 Building a new ecosystem of 82 Promoting business 94 international development transformation of corporate – Striving to Become Customers’ – Delivering Excellence and – Strengthening Foundation by governance Favorite with Our Founding Mission Leading in Innovation Risk Control, and Promoting Kept Firmly in Mind Supporting local economic 86 Deepening the reform of 96 Development through Talents Full and strict 33 and social development systems and mechanisms governance Enhancing international 88 Advancing business 100 Putting customers rst to Technology driving Strengthening 110 40 66 communication and innovation become their favorite foundation by risk cooperation Value creation 72 control Sticking to the founding 50 mission Green nance 74 Promoting development 113 through talents Developing inclusive 56 nance Special Column 120 Substantive 16 Table of Social 137 on Fullling CSRs Analysis Responsibility Worldwide Performance Outlook 130 Contrast with GRI Standards 132 the Ten UNGC Index and Independent 131 Principles Contrast with ESG Limited Reporting Guide Assurance Report Feedback Form 138 Instructions 130 02 Corporate Social Responsibility Report 2019 Industrial and Commercial Bank of China Limited 03 A large bank is obliged to take on new and significant with employees, cared for them in every detail, and provided responsibility in the new era. 2019 marked the 70th anniversary a broad platform for employees to achieve growth, success, Chairman’s Message of the founding of the People’s Republic of China and also saw and value. We did everything possible to alleviate burdens on fruitful results in our corporate social responsibility practices. and empower employees at the basic level, helped solve actual In the past year, we embedded corporate social responsibility difficulties for expatriates, and took concrete steps to bring into our corporate governance, corporate culture, and business tangible benets to employees at the basic level. We provided strategies, implemented new development concepts, and targeted training for employees at dierent levels and showed Chairman actively employed nancial instruments and resources to help sincere care and appreciation to them, so as to strengthen address the imbalances and inadequacies in economic and cohesion, pool wisdom, and forge synergy for greater social development, fullling our responsibility as a large bank development. in an all-round manner. We pushed forward our poverty alleviation eorts as a public- Chen Siqing We adhered to our business philosophy, stayed true to our spirited and responsible bank to live up to community original aspirations, and did our utmost to serve the real expectations. We integrated the resources in the entire bank to economy. We strengthened our ability to serve the real support the ght against poverty by combining targeted poverty economy to support the supply-side structural reform and alleviation and precision poverty alleviation through finance high-quality development, and kept a good grasp on the total as well as poverty alleviation credit, industrial development, amount, pace, destinations of investment and nancing to help e-commerce, education, and employment. In 2019, the Bank stabilize employment, nancial operations, international trade, saw a 16% increase in loans for precision poverty alleviation and foreign capital, investment, and expectations and promote donated RMB113 million to the targeted poverty-stricken areas. monetary transmission. We placed greater emphasis on targeted In addition, we adhered to the “nance for good” concept and allocation of nancial resources to better align with high-quality actively participated in public interest activities as a responsible development, gave priority to meeting the needs of projects corporate citizen, and donated RMB206 million in total. of national key strategies, and increased financial support We continued advocating green finance and pursuing green for manufacturing, small and micro-enterprises, and private development to promote harmony between man and nature. enterprises. The Bank’s loans granted for inclusive nance grew We actively encouraged green operations and green office to by more than 50% compared with the beginning of 2019, ve play our part in carbon emission reduction and environmental times the average growth rate of all loans. protection. We provided strong backing for the development With stakeholder trust in mind, we followed the rule of of green industries such as clean energy and environmental commercial banks and kept creating value for our shareholders management, and our green loan outstanding within mainland by pursuing prudent and sustainable development. We China exceeded RMB1.35 trillion. We released the Belt and Road coordinated our economic responsibility, political responsibility, Green Finance (Investment) Index and issued the first green and social responsibility, enhanced our value creation ability to bond for Belt and Road Inter-bank Regular Cooperation and the underpin our market competitiveness and nancial innovation rst green bond for the Guangdong-Honk Kong-Macao Greater and risk control capabilities, and maximized value creation Bay Area, playing an active role in promoting sustainable through the delivery of services, innovation, and management. economic development and improving the environment. In 2019, the Bank posted net profit of RMB313.4 billion, an Against the backdrop of globalization, we actively responded increase of 4.9% year-on-year, bringing decent yields to to China’s proposition to build a community with a shared shareholders. The Bank distributed the most dividends on future for mankind and participated in international financial China’s A-share market for the 11th consecutive year and governance to serve the country’s initiative to promote higher remained No. 1 by market cap in China’s financial sector. We level of opening-up. Leveraging our global network and stuck to bottom-line thinking, spared no eort to guard against advantage as the largest bank in RMB business, we enhanced and address nancial risks, and served as an anchor of nancial our cross-border service capabilities to provide nancial support stability. The Bank’s NPL ratio, provision coverage ratio, and for multinational companies to invest in China and for Chinese capital adequacy ratio all improved. enterprises to go global. We took the lead in establishing the To better satisfy customer needs, we embraced the customer- Belt and Road Inter-bank Regular Cooperation Mechanism centric concept and tapped into empowerment through (BRBR) and strengthened international nancial exchanges and technology in an endeavor to deliver excellent services and cooperation. We also demonstrated our image and fullled our experiences and improve our image. We regarded customer- responsibility as a major bank by providing first-class services centric as the underlying business logic and the cornerstone and support for a range of key events such as the Second Belt of the Bank’s development. The Social Responsibility and and Road Forum for International Cooperation and the Second Consumer Protection Committee was set up under the Board China International Import Expo. of Directors, further improving the consumer right and interest As a Chinese saying goes, “those who pick fruits should protection system at corporate governance level. We upheld the be grateful to the trees, and those drinking water to the strategy of development driven by innovation and advances headwaters.” We will always bear in mind that the Bank’s in technology, promoted in-depth integration of finance and development and progress is attributed to the trust and support technology, remained an advocate for and a leader in smart from all stakeholders. In the new year, we will forge ahead nance, and worked energetically to deliver excellent services together with all of our partners and the financial ecological and experiences, build up our brand reputation and inuence, power to shape a glorious new era. and shape the Bank as a preferred bank for the people. Through our efforts, the Bank was honored the world’s most valuable bank brand for the fourth year in a row. To promote employee development, we carried out the people- oriented philosophy, improved the system and mechanism where everyone bears a share of responsibility, and cultivated an enabling environment for employees to bring into full play Chairman:Chen Siqing their initiative and creativity. We upheld the concept of growing 27 March2020 04 Corporate Social Responsibility Report 2019 Industrial and Commercial Bank of China Limited 05 In 2019, the Bank made steady progress amid the As a pioneer and leader in green finance, the Bank stuck complicated and ever-changing environments at home to the business philosophy of green finance serving the President’s Message and abroad. We implemented the new development real economy, actively implemented the country’s green concepts, strengthened our management capabilities, development concept and sustainable development focused on serving the real economy, pushed forward strategy, and embedded