2015 CORPORATE SOCIAL CSR RESPONSIBILITY REPORT 2015 CORPORATE SOCIAL CSR RESPONSIBILITY REPORT Introduction

“BoCom must learn from history while looking into the future. We need to improve its corporate governance system, transform its internal management mechanism, and accelerate innovation in business model, achieving transformation and development in deepened reforms. We should also focus on supporting the real economy and actively undertaking our economic, political and social responsibilities, writing a new chapter of glory for the bank.” —Niu Ximing, Chairman of BoCom Company Profile Shanghai Head Office

Singapore Branch Beijing Management Department

he Shanghai-based Bank of Communications Co., Ltd. (BoCom) is one of China’s five Bank of Communications largest State-owned commercial banks. By the end of the reporting period ending Dec 31, (Luxembourg) S.A., 2015, BoCom had 30 provincial branches and seven branches under the direct supervi- sion of the head office in the Chinese mainland, with 3,141 outlets in 235 cities at or above T the prefecture level. The bank also had 15 institutions outside the Chinese mainland1, Sydney Branch Ho Chi Minh City Branch including the branches in Hong Kong, New York, San Francisco, Tokyo, Singapore, Seoul, Frankfurt, Macau, Ho Chi Minh City, Sydney, Brisbane and Taipei as well as Bocom UK Ltd., Bank of Communica- tions (Luxembourg) S.A. and the Toronto Representative Office, whose outlets numbered 56. Its employees totaled 91,468.

BoCom is one of China’s major financial services providers and has grown into an international banking Macau Branch group, which covers commercial banking, investment banking, securities, trusts, financial leasing, fund Hong Kong Branch management, insurance, and offshore financial services. Its wholly owned subsidiaries include the Bocom UK Ltd., BOCOM International Holdings Co., Ltd., China BOCOM Insurance Co., Ltd., and Bank of Communica- tions Financial Leasing Co., Ltd. Its controlled subsidiaries include the Bank of Communications Schroder Fund Management Co., Ltd., Bank of Communications International Trust Co., Ltd., BoCommLife Insurance Co., Ltd., Dayi Bocom Xingmin Rural Bank Co., Ltd., Anji Bocom Rural Bank Co., Ltd., Shihezi Bocom Rural Bank Co., Ltd., and Laoshan Bocom Rural Bank Co., Ltd. BoCom is San Francisco Branch also the largest shareholder of the Changshu Rural Commercial Bank Co., Ltd., one of the largest shareholders of the Bank of Tibet, and a strategic investor in the Bank of Hainan. BoCom has ranked among the Fortune 500 for the seventh consecutive year, rising to the 190th place by revenue. The bank also came in at 17th on The Banker’s list of the Top 1000 World Banks, in Tier-1 capital, making it into the top 20 for the second time. The top three international credit rating agencies give it a Grade-A Taipei Branch rating. Frankfurt Branch New York Branch th BoCom, which was founded in 1908 (34 year of Emperor Guangxu’s reign in the Qing Dynasty), is the Brisbane Branch oldest commercial bank in China as well as one of the century-old Chinese commercial banks and one of the four biggest banks in the early days of China’s banking sector, playing an important role in the modern history of Chinese financial industry. In 1987, it was reorganized and began to operate as Tokyo Branch China’s first State-owned joint-stock commercial bank based in Shanghai and with outlets across the country. In 2005, BoCom was listed on the Hong Kong Stock Exchange, which made it the first State- owned commercial bank to go public outside the Chinese mainland. In 2007, the bank was listed on the Toronto Representative Office Shanghai Stock Exchange. At the end of the reporting period, BoCom’s top three shareholders were China’s Ministry of Finance, HSBC, and the National Council for Social Security Fund.

[1] Including Hong Kong, Macau, and Taiwan. Seoul Branch Contents

Economic Environmental 1 Strategy and Profile 2 Responsibility 3 Responsibility

1.1 Message from the Chairman 03 2.1 Global Presence and Diversified Business 17 3.1 Green Credit 35 Social Vision of 1.2 Report from the President 05 2.2 The Real Economy 23 3.2 Green Services 38 4 Responsibility 5 the Future 1.3 Key Performance 09 2.3 People’s Well-being 29 3.3 Green Operations 41 1.4 Managing Responsibility 11 4.1 Customer Services 47 5.1 Vision of the Future 69 4.2 Employee Care 55 5.2 Statement of Assurance 71 4.3 Committed to Charity 61 5.3 GRI Index 73 5.4 ESG Index 75 STRATEGY AND PROFILE

You must study it broadly, investigate it in detail, deliberate on it carefully, discern it clearly and practice it universally. — “ Doctrine of the Mean ”, Book of Rites, Western Han Dynasty

01-02 business model, and deepening the reform of commercial banks’ internal financial mechanisms. With 20 projects launched, we achieved remarkable results in such aspects as promoting the adoption of a divisional structure, remuneration and appraisal mechanism, and the mechanism for resource allocation. Such efforts provided other large State-owned commercial banks with valuable experience in deepening reform. We also made impressive progress in applying information technology. The 531 Project launched five years ago was fully implemented, providing systemic support for the transformation of the bank. It brought about the deep Message from integration of bank-wide customer information, business processes, external communication channels, system functions, and data models. The project marked another milestone in BoCom’s efforts to promote IT the Chairman application, following the concentration of data. Promoting inclusive finance for the real economy. In response to China’s major strategies, BoCom worked to serve important areas of the real economy, continued to improve its credit structure, and offered active support to major national and local projects concerning people’s well-being. We established a dedicated Department of Small Business Finance and made clear the objective and development strategy of operations targeted at micro- and small enterprises. In this way, the bank would help bolster popular entre- preneurship and innovation. While serving the development of central and western China, the bank gave generous financial support to agriculture, rural areas and farmers, science, education, culture and health services, the construction of low-income housing, and personal consumption. Such efforts helped to improve people’s lives and promote the coordinated development of the economy and society.

Environmental friendliness for a better China. In the past year, we translated the idea of environmental friendliness into action in every aspect of business operation and management. In response to China’s green development strategy, we continued to boost green credit and gave greater credit support to circular economy, conservation of resources, and other fields of energy saving and environmental protection. E-banking was promoted considerably, as evidenced by the 88.13 percent share of business conducted online. That led to an equivalent reduction of CO2 emissions by nearly 8,502.05 tons. Green operations and green procurement were pushed forward steadily. The bank took part in various environmental activities, organized the public interest activity “Reward Points for Blue Sky”, and launched the BoCom Youth Forest project, making wise moves to help improve the ecological environment.

Contributing to targeted poverty reduction for the public good. In 2015, we intensified efforts to promote targeted poverty reduction and help improve the living and working conditions of vulnerable groups. It was the 13th consecutive year that BoCom had assisted the Tianzhu County of Gansu Province. The bank invested over the years a total of more than 32 million yuan and launched more than 30 assistance projects in this Niu Ximing, Chairman of BoCom county that benefited 128,000 people. For that, BoCom is widely acclaimed among the people of all ethnic groups in Tianzhu County. We also gave strong support to the special education of persons with disabilities. The bank’s “For Tomorrow” program, launched in 2007, had donated a total of 100 million yuan for promoting education of the disabled. We helped people affected by natural disasters to pull through the hard times. The bank’s employees were actively involved in public interest activities as volunteers regarding assistance for poor students and needy communities, living up to BoCom’s image as a good corporate citizen.

Every step we take now leads to the dream far away. In 2016, we will continue to leverage on the strength of In 2015, China’s banking sector forged ahead with reform and innovation; BoCom made impressive achieve- BoCom as a century-old financial enterprise, carry on the spirit of entrepreneurship, responsibility and ments in deepening reform and effecting transformation. Bearing in mind the mission of BoCom, all employ- innovation, promote the deepening of reform, transformation and strict Party discipline, manage social ees across the bank worked together in following the national macro-control policy, focusing on supporting the real responsibility better, and strengthen the communication with stakeholders so as to make greater contribu- economy, promoting the BOCOM strategy, fulfilling social responsibility, and striving to deliver a desirable perfor- tions to the realization of the Chinese dream – the great rejuvenation of the Chinese nation. mance in economic, environmental and social terms under the “new normal” of economic development.

Leading the industry based on reform and innovation. The bank’s plan for deepening reform was approved by the State Council in 2015, making it a pioneer among all State-owned banks in developing mixed ownership. We identified three major priorities, i.e. exploring a governance mechanism with Chinese characteristics for large State-owned commercial banks, promoting transformation and innovation in

March 29,2016

03-04 top executives bought H shares of the company, making BoCom the first listed company whose senior management hold both A and H shares. Reform was deepened; the levels of business operation and management kept rising; comprehensive risk management was strengthened; and the capacity for sustain- Report from able growth was increased steadily. BoCom took 190th place on the Fortune 500 list, and came in at 17th on The Banker’s list of the Top 1000 World Banks, in Tier-1 capital, making it into the top 20 for the second time. the President Global strategy and brand building. We intensified efforts to promote the BOCOM strategy, managed to expand the bank’s global presence, kept increasing its capacity for cross-border and cross-industry operations, acquired a controlling stake in Banco BBM, made real progress in its RMB clearing business in Seoul, and supported China’s Belt and Road Initiative by developing financial services accordingly. BoCom made rapid progress in diversifying its business. Its controlled subsidiaries took the initiative to follow its strategy. Its wealth management system kept improving, along with increasing size of business and remote banking brought into full operation. The brand image of a wealth manage- ment bank was enhanced continuously.

Quality service and customer experience. BoCom values the strategic importance of customer satisfaction and seeks to provide customers with products and services featuring convenience, high quality and friendliness. In the past year, we organized the large-scale activity “Closer to BoCom, Closer to Friendliness” to select the best employees in serving customers, established a Department of Consumer Rights Protection, and included employees’ performance regarding consumer rights in the appraisal system. BoCom ranked No.1 among Chinese retail banks by customer satisfaction and 20 of its outlets were on the Top 100 Model Outlets list, making it once again the largest Chinese bank by the number of model outlets. We set up the first customer experience laboratory, with a view to creating better experience for customers.

Sense of responsibility and public spirit. We followed closely the national macro-control policy, improved the bank’s credit structure and worked to give a better play to the role of finance in supporting the real economy. Priority was given to energy saving, environmental protection, recycling of resources, waste disposal, renewable energy and other fields. The outstanding loans concerning energy saving and emissions reduction totaled about 204.8 billion yuan. In doing so, BoCom made its due contribution to the better look of China. The employee care system was further improved. The Happy BoCom campaign was included for the first time in the strategic evaluation system of Party committees at all Peng Chun, President of BoCom levels. The mutual help association operated smoothly and the bank continued to provide assistance for the employees in need. A rich variety of recreational, sports and artistic activities were organized to make employees feel at home. The bank was also actively involved in charitable activities. BoCom donated about 24.48 million yuan to support poverty reduction, special education, disaster relief, and environmental protection, helping to create a better world where everyone enjoys a good life.

2016 is the first year of China’s 13th Five-year Plan period. In the process of striving to achieve more In 2015, under the leadership of the CPC Central Committee and the State Council, BoCom channeled through harmony and credibility and moving forward with society, we will concentrate our efforts on efforts into driving transformation and development by deepening reform and followed closely the strategy of three tasks, i.e. deepening reform, developing through transformation, and practicing strict Party discipline. “focusing on deposits, securing profits, and controlling risks”. In the principle of “increasing vitality through While seeking new breakthroughs in effecting transformation, BoCom will work hard to carry out its social reform and slowing down without losing momentum”, all employees across the bank worked hard despite all responsibility as a century-old financial enterprise, live up to the expectations and trust of all stakehold- the difficulties and put in an excellent performance – much larger size of business, steady growth in profits, ers, and make its due contributions to China’s economic, social and environmental sustainability. stable quality of assets, and effective misconduct control.

Prudent operation and value creation. We pressed ahead with responsibility management and integrated the bank’s CSR strategy closely with its business and managerial activities. The management of market capitalization was strengthened, and the issuance of preferred shares was pushed forward. The bank’s

March 29,2016

05-06 Declaration of responsibility Vision of responsibility

Strive to achieve more through harmony and The bank will fulfill all the responsibilities of a credibility and move forward with society. modern corporate citizen, maximize interests of shareholders, customers, employees, and all other stakeholders, and become a global CSR leader.

Corporate Mission Create shared value

Corporate Build the best wealth Vision management bank in China

BOCOM Entrepreneurship, responsibility, Spirit and innovation Business One BoCom, One Customer Philosophy

Song Shuguang, Chairman of the Board of Supervisors Become a top listed banking group Development specializing in wealth management Integrity is the cornerstone of a company’s sustainable development. Strategy with a global presence and diversi- fied business

March 29,2016 Slogan A century of BoCom, your wealth management bank

07-08 Strategy and Profile

Environment Performance 2013 2014 2015 Key Performance Green loan customers (by %) 99.56 99.58 99.64 Outstanding green loans (by %) 99.80 99.78 99.79 Loans to heavily polluting, energy-intensive, 2.52 2.15 1.83 （ ） and overcapacity industries (by %) Total assets billion yuan Outstanding loans to energy saving and 165.84 152.43 204.80 Economic Responsibility 2013 5960.94 emissions reduction (billion yuan)

2014 6268.30 E-banking business share (by %) 78.33 83.13 88.13

2015 7155.36 Head office water use (10,000 tons) 50.6 31.4 30.50 Head office electricity use (10,000 kWh) 8,270 8,545.63 8,558.05 （ ） Total loans billion yuan Head office gas use (10,000 m3) 165 140.62 132.24

2013 3266.37 Head office paper use (tons) 35.8 41.84 35.78

2014 3431.74 Head office CO2 emissions (tCO2e) 68,768.4 70,408.32 70,294.42

2015 3722.01 Bank-wide video Conferences 3,919 4,240 6,072 Data center PUE 1.67 1.8 1.76 Economic Performance 2013 2014 2015 Social Performance 2013 2014 2015 Environmental Responsibility Total assets (billion yuan) 5,960.94 6,268.30 7,155.36 SCVPS (yuan) 3.28 3.73 3.86 Total loans (billion yuan) 3,266.37 3,431.74 3,722.01 Customer satisfaction score 787 808 837 Net profits (billion yuan) 62.30 65.85 66.53 Product innovation projects 101 105 107 Taxes (billion yuan) 29.88 32.23 33.77 Successful transactions through 19.31 20.05 20.05 99.997% 99.982% 99.985% Dividends (billion yuan) UnionPay interbank system Dividend per share (yuan) 0.26 0.27 0.27 Outlets in the Chinese mainland 2,690 2,785 3,141 Return on average assets (by %) 1.11 1.08 1.00 On the Top 100 Model Outlets list 20 —— 20 Return on average equity (by %) 15.58 14.79 13.43 Employees in and outside the Chinese mainland 99,919 93,658 91,468 Impaired loan ratio (by %) 1.05 1.25 1.51 Females, middle and senior management 2,360 2,419 2,474 Provision coverage (by %) 213.65 178.88 155.57 Members of ethnic minorities 3,205 3,240 3,658 Capital adequacy (by %) 12.08 14.04 13.49 Tier-1 capital adequacy (by %) 9.76 11.30 11.46 Charitable donations made (10,000 yuan) 3,082.77 3,169.53 2,448.13 Social Responsibility Core Tier-1 capital adequacy (by %) 9.76 11.30 11.14 Notes: 1. A “controlled subsidiary” is a non-bank subsidiary, of which BoCom has six, namely, BOCOM International Holdings Co., Ltd., China BOCOM Insurance Co., Ltd., Bank of Total assets of branches outside Communications Financial Leasing Co., Ltd., Bank of Communications Schroder Fund Management Co., Ltd., Bank of Communications International Trust Co., Ltd., and 519.88 617.55 701.23 BoCommLife Insurance Co., Ltd. The figures of profits from controlled subsidiaries indicate the profits attributable to parent company. the Chinese mainland (billion yuan) 2. The “branches outside the Chinese mainland” refer to the 15 institutions including the branches in Hong Kong, Macau, Taipei, Singapore, Ho Chi Minh City, Tokyo, Seoul, Sydney, New York, San Francisco, Frankfurt, and Brisbane as well as Bank of Communications (Luxembourg) S.A., Bocom UK Ltd. and the Toronto Representative Office. Total profits of branches outside 2.80 3.62 4.09 3. Central and western China refers to the 17 provinces, autonomous regions, and municipalities directly under the central government, including Shanxi Province, Anhui Province, Jiangxi the Chinese mainland (billion yuan) Province, Henan Province, Hunan Province, Hubei Province, Guangxi Zhuang Autonomous Region, Chongqing Municipality, Sichuan Province, Guizhou Province, Yunnan Province, Shaanxi Province, Gansu Province, Qinghai Province, Ningxia Hui Autonomous Region, Xinjiang Uyghur Autonomous Region, and Inner Mongolia Autonomous Region. Total assets of controlled 107.42 134.89 172.58 4. “Outstanding loans, micro-, small, and mid-sized enterprises” refers to the sum of outstanding loans of micro- and small enterprises and those of mid-sized enterprises reported to the People’s Bank of China. subsidiaries (billion yuan) 5. “Outstanding loans, agro-related” refers to the sum of outstanding agro-related loans reported to the People’s Bank of China, including agro-related loans to enterprises and organizations in cities, farm loans, loans to enterprises and organizations in rural areas, and non-farm loans concerning agriculture, forestry, animal husbandry, and fisheries. 6. The data about low-income housing loans were gathered in line with the requirements laid down in the Notice of CBRC General Administration Department on Submitting Total profits of controlled 1.87 2.01 2.82 subsidiaries (billion yuan) Statistics on Low-income Housing Loans. 7. The data about science, education, culture, and health loans were obtained based on the 2011 classification of sectors in the national economy, including “scientific research and Outstanding loans, central and technology services”, “education”, “health and social work”, and “culture, sports and entertainment”. 844.06 921.15 1,003.15 8. “Green loan customers (by %)” means the proportion of Cat-I to Cat-IV green loan customers in the bank’s total loan customers. “Outstanding green loans (by %)” refers to the western China (billion yuan) proportion of Cat-I to Cat-IV green loans not yet paid off in the bank’s total outstanding loans. Outstanding loans, micro-, small and 9. “Loans to heavily polluting, energy-intensive, and overcapacity industries” refers to the proportion of the outstanding loans to a total of eight such industries in the bank’s total loans. 1,255.16 1,259.15 1,230.23 The eight industries are the steel, cement, flat glass, coal chemical, polycrystalline silicon, wind power equipment, electrolytic aluminum and shipping building. mid-sized enterprises (billion yuan) 10. “Outstanding loans to energy saving and emissions reduction” refers to Cat-1 green loans not yet paid off and being used to promote a low carbon economy, environmental protection, and integrated resource use.

11. “Head Office” refers to the bank’s five office buildings in Lujiazui (BoCom Financial Towers), Zhangjiang (excluding Phase III), Hongqiao (Jinming Building), Gaoke and Caohejing of Shanghai. Vision of the Future Outstanding loans, agro-related (billion yuan) 540.79 560.21 599.27 12. The figures for “customer satisfaction score” are from the survey on customer satisfaction among Chinese retail banks conducted by professional agency J.D. Power Asia Pacific. 13. The figures for “product innovation projects” refer to the numbers of product innovations that have been implemented and reported to the Committee of Innovation Promotion under the Low-income housing loans (billion yuan) 33.26 35.23 35.33 Chinese Association of Productivity Science as prescribed by the Outline of BoCom Product Innovation Plan for 2014-2016” and the BoCom Product Innovation Plan 2014. 14. The figures for “successful transactions through UnionPay interbank system” refer to the success rate of transactions by BoCom cards in other banks through the UnionPay Science, education, culture, and interbank system.15. China’s Top 100 Model Outlets in the banking sector are selected every two years. health loans (billion yuan) 46.11 59.83 71.73 16. “Employees in and outside the Chinese mainland” refers to the total number of contract employees across the bank. “Females, middle and senior management” means the number of female employ- ees at the department head level or above in mainland branches. “Members of ethnic minorities” refers to the total number of employees who are not Han people in mainland branches. 751.31 868.36 993.32 17. “Donations” refers to the donations made in the name of BoCom for public programs on disaster relief, assistance for the disabled, poverty reduction, etc. in accordance with the Personal loans (billion yuan) Measures of BoCom for Managing Donations to other Organizations.

09-10 Strategy and Profile

Managing Responsibility

During the reporting period, BoCom reinforced the management of responsibility in its philosophy, organization, planning, and training. Core members of the head office’s CSR team held a number of meetings to discuss the latest national and international standards and regulatory requirements, decided to disclose head office CO2 Responsibility Management emissions, number of suppliers and managerial approaches, and assigned each functional department a specific Economic Responsibility task. Advance planning was well done and implementation was effectively pushed forward. In addition, the bank BoCom was the first listed company in China to establish a Social Responsibility Committee under the Board of continued to boost CSR training. It organized two training sessions for the core members of the CSR team and one Directors. There was a change in committee members during the reporting period. Ms. Yu Yali was appointed as bank-wide video conference training session, which involved more than 200 employees. The understanding of a new member. There are four representative members on the committee, including internal executive directors CSR was fully developed among the trainees, paving the way for better management of responsibility. holding management positions as well as external non-executive directors. During the reporting period, BoCom adjusted the components of its corporate culture system according to the Members of the Social Responsibility Committee bank-wide progress in carrying through reform. The corporate mission was defined as “Create shared value”, BOCOM spirit as “Entrepreneurship, responsibility, and innovation”, business philosophy as “One BoCom, One Customer”, and development strategy still as “Become a top listed banking group specializing in wealth manage- ment with a global presence and diversified business”. The bank’s direction and core business ideas were thus made clear. A host of activities themed on the corporate culture were also staged, such as solicitation of culture- related stories and screensaver designs and quiz game. In this way, the corporate culture was fully promoted Environmental Responsibility across the bank, acting as the bond that links all employees driving the bank’s reform and transformation

【Honor】 Mr. Peng Chun, Ms. Yu Yali, Mr. Hu Huating, Mr. Liu Changshun, Vice Chairman, Executive Executive Director Non-Executive Director Non-Executive Director During the reporting period, in the CSR performance evaluation by Director, and President and Vice President China Banking Association, BoCom was recognized as one of the Most Socially Responsible Financial Institutions and received the Best Green Finance Award. Its poverty-relief project in the Tianzhu County During the reporting period, the Social Responsibility Committee focused its efforts on the following aspects: of Gansu Province was recognized as an Outstanding Charity Project promoting the fulfillment of social responsibility, advancing the internal education and external exchanges on of the Year. BoCom’s Shanghai Dongfang Road Sub-branch was social responsibility, implementing the green credit policy, making donations actively, providing greater care honored as a Model Outlet for Special CSR Contribution. Feng Jun, for employees, protecting consumer rights, and building the capacity of the committee. Such efforts produced Head of Erdaoqiao Sub-branch under BoCom’s Xinjiang Branch, was desirable results. Some members of the committee conducted investigations at the bank’s branches about recognized as CSR Manager of the Year. Moreover, BoCom carried off fulfillment of social responsibility, improvement of services, and practice of green credit, and offered advice awards from the CYLC Central Committee, CBRC Youth League and suggestions to them. Social Responsibility Committee, and Beijing Rongzhi Corporate Social Responsibility During the reporting period, BoCom fully carried out its social responsibility based on the approaches and Institute, including Hope Project Outstanding Contribution Award, roles defined by its CSR Policy. The bank’s CSR efforts concentrated on four major areas as indicated by the Most Socially Responsible Financial Institution, and Best Public “BoCom CSR Measures for 2015” – dealing with responsibilities, serving the real economy, practicing green Communication Innovation Award. finance, and seeking harmony and mutual benefit. Refer to the following sections for greater details on these. BoCom gives a lot of attention to the communication with stakeholders on responsi- bility. During the reporting period, the bank continued to select the key areas of social SCVPS 2013 3.28yuan a year-on-year responsibility and set targets accordingly, based on the identified concerns of stake- increase of holders in eight categories (customers, shareholders, government agencies, em- yuan yuan 2014 3.73 ployees, environment, communities, partners, and social organizations). Its CSR 3.86 efforts were applauded by stakeholders, the media, and professional organizations. 2015 3.86yuan 3.49%

Note: Refer to the 2014 CSR Report for the details on the categories of stakeholders and their concerns as well as how BoCom communicates Vision of the Future with and responds to the stakeholders.

Note: The social contribution value per share (SCVPS) is calculated in line with the Shanghai Stock Exchange’s Notice on Promoting Social Responsibility of Listed Companies and Publishing the Environmental Information Disclosure Guidelines for Companies Listed on the Shanghai Stock Exchange, of May 14, 2008, with various banking characteristics taken into consideration. The formula is as follows: The bank published its 2014 CSR Report on March 26, 2015. SCVPS = Earnings per share + (Tax + Staff costs + Interest + Investment in charitable activities) / Total share capital at the end of the period.

11-12 Strategy and Profile

Corporate Governance 531 Project fully implemented, another mile-【Topic】 BoCom seeks to make the architecture of corporate governance better. With its corporate governance stone for BoCom in promoting IT application system improving and all regulatory requirements fulfilled, the bank has put in place a modern corporate governance mechanism that runs efficiently and in line with established procedures. In such a mechanism, Economic Responsibility the responsibilities of the general meeting of shareholders, board of directors, board of supervisors, and senior management are clearly defined and the effectiveness of corporate governance keeps growing. During the reporting period, the general meeting of shareholders adjusted members of the 7th Board of Directors. Mr. Wei Dong was elected as executive director and Ms. Huang Bijuan1 as non- executive director. The Board of Directors has 17 members, with more than one-third of independent directors. The Board of Supervisors has 13 members, two of them female. Senior Management co- nsists of 10 members who act on decisions made by the Board of Directors, under the Board of Supe- rvisors. The business performance in the past year was considered outstanding.

During the reporting period, the bank paid 20.05 billion yuan in cash dividends to investors, as a way to share benefits from development with its investors. Environmental Responsibility Ms. Huang Bijuan’s eligibility is yet to be approved by China Banking Regulatory Commission.

BoCom makes overall arrangements The 531 Project was launched on May 31, 2010. Following its implementation in Macau, Taipei and offshore business, 【Topic】 BoCom began to put it into operation in mainland institutions in the November of 2012. As of September 26, 2015, the for deepening reform project was promoted in 37 branches, institutions directly run by the head office and financial services center under the head In June 2015, the State Council officially approved the as establishing a development-oriented responsibility office, and four rural banks in the Chinese mainland, entering into a new stage of promotion, improvement and innovation. application of BoCom for participating in the program on system, creating an accountability mechanism for risk This marked another milestone in BoCom’s efforts to promote IT application, following the concentration of data. deepening reform as a large State-owned commercial management, and promoting the adoption of a divisional bank. BoCom would implement 12 reform measures on a structure. Other projects were progressing smoothly, with The 531 Project’s full implementation in mainland branches provides systemic support for the transformation of the trial basis, including optimizing equity structure, improving initial results produced. bank. It not only helps to create a proprietary technical platform for the bank, but also brings about the deep integration mechanisms, and undertaking internal reform. Its practice of bank-wide customer information, business processes, external communication channels, system functions, and data would provide valuable experience for other large During the reporting period, BoCom established the models. The five goals of being customer-oriented, operating consistently in and outside the mainland, integrating State-owned commercial banks seeking to deepen reform. Internet Banking Center as a division institution directly processes, enhancing management and developing proprietary intellectual property have been basically attained. During the reporting period, the bank’s Party Committee run by the head office. The divisional structure was Through the 531 Project, 168 main systemic problems have been cured and 15 major challenges overcome. The business and technical plans devised through the project are among the industry’s best. A team of highly competent established a leading group on deepening reform to take adopted in and outside the Chinese mainland. Centers Social Responsibility overall charge of and push through the reform efforts. The for asset custody, financial markets and asset manage- specialists have been developed. All these are the most important technology and talent resources for the bank’s head of the leading group was Niu Ximing, Party Secretary ment were set up in Hong Kong. In total, the bank has 10 transformation and development. and Chairman of the Board of Directors; the deputy heads head office division/quasi-division institutions directly run were Peng Chun, Deputy Party Secretary and President, by the head office, i.e. Beijing Management Department, and Song Shuguang, Deputy Party Secretary and Asset Custody Center, Offshore Finance, Private Chairman of the Board of Supervisors. The leading group Banking, Pacific Credit Card, Internet Banking, Financial During the reporting period, the bank continued to strengthen the management of market capitalization. held four meetings to make arrangements for deepening Markets, Asset Management, Precious Metals, and More than 400 members of the management including the top executives bought H shares of the reform and broke down the 12 reform measures into 20 Negotiable Instruments. Moreover, BoCom made a reform projects. Responsible departments were assigned major step forward in establishing key account divisions company, making BoCom the first listed company whose core members of the management team hold specific tasks and time limits were set to ensure the at branch level. To raise the level of key account credit both A and H shares. It also helped to boost confidence in the capital market. BoCom aims to be an effective completion of the tasks. All of the 20 reform extending, the bank improved the criteria for setting up a active bank in investor communication. It gives intensive publicity to its business features and invest- projects had been launched by the end of the reporting key account division and increased branches’ capacity period. Some of them had been basically completed, such for serving customers directly. ment value, and keeps improving investor management and services. The transparency in information disclosure has been increasing. In the past year, the bank published 59 interim announcements on A shares, 56 interim announcements on H shares, and four results announcements. The Shanghai Stock BoCom secures steady growth by strengthening capital management and seeks to promote the

Exchange has recognized BoCom as a Cat-A company by information disclosure for two consecutive Vision of the Future issuance of preferred shares. During the reporting period, the Board of Directors approved the plan for years. During the reporting period, all of the top three international rating agencies once again gave a private offering of no more than 600 million preferred shares in and outside the Chinese mainland, Grade-A rating to the bank. raising no more than 60 billion yuan. The private offering of preferred shared worth no more than 15 billion yuan outside the mainland was completed, which further improved the bank’s capital structure and laid a solid foundation for capital management. Note: See the Bank of Communications 2015 Annual Report for more detailed information on corporate governance, risk management, and the internal control system.

13-14 ECONOMIC RESPONSIBILITY

A wise man changes his way as circum- stances change; a knowledgeable person alters his means as times evolve. —Discourses on Salt and Iron by Huan Kuan, Han Dynasty

15-16 Strategy and Profile

Global Presence and Diversified Business BoCom offers financial services worldwide

Approach Results (reporting period)

Promoting the “1+1+N” model Eight issuers of certificates of deposit (CDs) outside the Global Presence mainland Economic Responsibility

Cross-border RMB settlement handled by BoCom’s During the reporting period, BoCom made real progress in operating globally. Its operations outside the Introducing innovations in branches in and outside the Chinese mainland amounted Chinese mainland are concentrated in Asia-Pacific as well as Europe and America. Based on its cross-border RMB services to about 1.6 trillion yuan, a year-on-year increase of 46.51 international business in the mainland, the bank strived to penetrate markets worldwide with all-round percent. and diversified cross-border financial products and managed to increase its capacity for cross-border Boosting delivery of consistent and cross-industry operations. By the end of the reporting period, the total assets and profits of the and integrated services in and Such business amounted to 50.67 billion US dollars. bank’s institutions outside the mainland had reached about 701.23 billion yuan and about 4.09 billion outside the Chinese mainland yuan respectively, up 13.55 percent and 13.00 percent year on year. The financing for international trade amounted to about Supporting “go-global” Chinese 136.68 billion yuan and the guarantees offered by main- During the reporting period, BoCom established a branch in Brisbane and a subsidiary in Luxembourg, enterprises land outlets to enterprises operating in foreign countries increasing the numbers of institutions and business outlets outside the mainland to 15 and 56 respec- involved about 163.92 billion yuan. tively (excluding the representative office). It had 1,610 correspondent banks in 143 countries and regions. In addition, BoCom had RMB settlement agreements with 125 agent banks in 30 countries The bank commits itself to promoting local economic development while trying to make its opera- Environmental Responsibility and regions, 234 interbank cross-border RMB accounts, as well as 71 clearing accounts in 18 curren- tions more localized. The Hong Kong Branch established a dedicated local business finance depart- cies at 54 banks in 23 countries and regions. ment to serve small and mid-sized local enterprises in the middle and high-end markets. The Singa- pore Branch offered syndicated loans, trade finance loans and other credit support to the core trade BoCom acquires a controlling platforms or regional holding companies of global agribusiness conglomerates such as Louis Drey- fus Commodities and Wilmar International Limited in Singapore. The Tokyo Branch launched home stake in Banco BBM loan products to meet the needs of local Chinese, making BoCom one of the first Chinese banks in Japan to provide such products. The Taipei Branch became the first mainland institution in the During the reporting period, BoCom signed an agreement with Taiwan region to issue negotiable certificates of deposit (NCD) denominated in currencies other than Brazil’s Banco BBM on acquiring an 80 percent controlling stake in New Taiwan dollar and developed financial cooperation with the Central Bank of the Republic of it. It was the bank’s first acquisition outside the Chinese mainland, China (Taiwan). The Ho Chi Minh City Branch provided greater credit support for projects concerning marking its first step in entering the Latin American market. Getting local people’s well-being, such as electricity and beer can projects. into the emerging market of Brazil provides a springboard for developing business across the whole Latin America region.

Case Social Responsibility Chairman Niu Ximing visits Banco BBM in Rio de Janeiro, Brazil, May 20 local time. BoCom’s Frankfurt Branch helps Chinese enterprise acquire an American BoCom makes progress in the sports events management company

RMB clearing business in Seoul During the reporting period, the Frankfurt Branch provided funding for Chinese sports industry investor in its effort to acquire an American sports events management company. The American company is the world’s famous Ironman triathlon brand owner During the reporting period, BoCom worked closer with Korea and event operator. With five Ironman Triathlon brands, the company has 37 years of experience in operating Ironman events and Securities Depository (KSD) and became its only partner bank for operates more than 250 events every year. It has a 91 percent share in the global market of long-distance triathlon races. RMB settlement in bond trading. BoCom was also selected by South Korea’s Ministry of Strategy and Finance to be one of the major underwriters of the panda bonds it issued in the Chinese mainland for BoCom’s Macau Branch launches cross-border mortgages to help local the first time. It was the only Chinese bank among all the underwriters. people buy houses During the reporting period, all local banks of South Korea opened Vision of the Future RMB clearing and settlement accounts at the bank’s Seoul Branch Ever since its return to China, Macau has witnessed rapid development as well as fast-growing house prices. Local people find which received the Award of Outstanding Contribution to Won-Yuan it increasingly hard to buy houses. During the reporting period, the Macau Branch developed business cooperation with large Direct Trading Market from the Ministry of Strategy and Finance. real estate developers of Hengqin, including Zhonghai Mingzuan, Huafa Shoufu, Litchi Bay, and Huafa Plaza and began to extend cross-border mortgage loans to residents of Macau, making BoCom one of the first banks in Macau to do so. President Peng Chun attends the South Korean government’s 2015 meeting with RMB bond investors, December 11.

17-18 Strategy and Profile

【Topic】 BoCom supports the Belt and Road Initiative 【Topic】 BoCom’s innovative moves in serving FTZs

Aspect Main results

Outlet network Set up 20 business outlets in the FTZs in Shanghai, Tianjin, Fujian and Guangdong Economic Responsibility The Shanghai Branch made the first successful attempts in providing a number of innovative financial services in the free trade zone, such as extending the first offshore M&A loan, and the first multi-type syndicated loan, conducting the first Innovative separate accounting operation for a financial company, opening the first financial services account for free trade in foreign currencies, launching innovative products such as “domestic deposits for overseas loans” and “overseas deposits for domestic loans”, etc. All these attempts were applauded by the regulatory authority. The Guangdong and Xiamen branches were among the first contracted local banks for granting cross-border RMB loans. The Bank of Communications Financial Leasing Co., Ltd. made active efforts Diversified to promote overseas leasing business. The platforms and resources of its business specialized subsidiary and SPV project company in the free trade zone were fully used to advance aircraft and ship leasing projects among international customers. Environmental Responsibility Chairman Niu Ximing accompanies Finance Minister Lou Jiwei in inspecting the interim office premises of the BoCom led the research on the impacts of FTZs on commercial banks’ trade New Development Bank BRICS, July 21. Theoretical finance business and countermeasures organized by the China Banking research Association. Its paper “Impacts of the Shanghai FTZ on Commercial Banks’ International Operations and Development Strategy” won the third prize of BoCom supports China’s Belt and Road Initiative by formulating special guidelines and action plan and excellent research findings about the reform and development of Shanghai’s mobilizing all resources to develop financial services accordingly. The bank has established a pool of key financial sector from the Shanghai Financial Association. projects under the Belt and Road Initiative, follows project progress and credit support to such projects, and keeps channeling financial resources into them. To date, 117 key projects in 21 priority areas have been included in the pool. The bank supports key projects along the Belt and Road Initiative based on its business network overseas. By the end of the reporting period, its Seoul, Ho Chi Minh City, Singapore and Hong Kong branches had provided credit support for 17 important customers or projects. Case BoCom’s Guangxi Branch facilitates enterprises’ efforts to engage in border Social Responsibility trade

Establishing the Cross-border Trade Financial Services Center in Nanning is an important move that BoCom has made in support of China’s Belt and Road Initiative and distinctive border trade. During the reporting period, based on the Center in Nanning, the Guangxi Branch integrated all resources to provide enterprises with special BoCom’s Guangdong Branch opens an outlet in the Hengqin New Area of Zhuhai. financial services that cover the whole supply chain of cross-border trade with a view to supporting the development of border trade in

Guangxi. By the end of the reporting period, financing in this regard BoCom’s Ningxia Branch organizes in collaboration with relevant organizations totaled about 6.89 billion yuan. a seminar on export-oriented economic development and financial services in Case Ningxia in the context the Belt and Road Initiative. BoCom is among the first companies operating in the China (Hangzhou) BoCom’s Beijing Branch takes part in the renovation of Bangladesh’s Cross-border E-commerce Comprehensive Pilot Area. power generating unit in support of the Belt and Road Initiative Vision of the Future The meeting on promoting the development of the China (Hangzhou) Cross-border E-commerce Bangladesh is an important country along the Belt and Road. The building of the China-India-Bangladesh-Myanmar Comprehensive Pilot Area was held in the People’s Great Hall of Zhejiang Province on June 29. At Economic Corridor has brought more and more opportunities for China-Bangladesh economic cooperation. During the the meeting, BoCom was designated as one of the first enterprises to operate in the Comprehensive reporting period, the Beijing Branch took an active part in the renovation of Bangladesh’s Ghorasal 3# unit, a part of the Pilot Area which is mainly designed to develop a new regulatory service model based on informa- “HSBC 1+1” project, by extending a loan for 13 years. tion, credit and technology to liberalize, facilitate and standardize cross-border e-commerce.

19-20 Strategy and Profile

Diversified Business Wealth Management BoCom Fortune clients BoCom made rapid progress in diversifying its business, during the reporting period. Its controlled subsidiar- BoCom has made initial progress in developing the distinctive features of its Up 3.84% ies took the initiative to follow its strategy by using less money and focusing on priorities. Further improve- wealth management services. During the reporting period, the bank kept improv- over the beginning ments were seen in the management structure, coordination mechanism, and risk control system for diversi- ing its wealth management system according to the diversified customer needs of 2015 fied business. Steady growth was achieved in both the assets and profits of its controlled subsidiaries. By the and saw the scale of business in this respect grow fast, along with continued end of the reporting period, the total assets and profits of the bank’s controlled subsidiaries (six non-bank increase of brand influence. The bank’s brands such as Win to Fortune, OTO OTO Fortune Economic Responsibility subsidiaries) had reached around 172.58 billion yuan and around 2.82 billion yuan respectively, up 27.9 Fortune, and Leadway Fortune won the recognition of the banking sector and also clients percent and 39.8 percent year on year. the market. Innovations were introduced to private banking. The launch of net-worth RMB wealth management products such as “Ruihang”, “Zhihang”, and “Ruiteng” Up The bank had six non-bank subsidiaries during the reporting period and held licenses for engaging in securi- 16.12% provided high-end customers with more quality choices for preserving and increasing over the beginning ties and insurance outside the Chinese mainland and insurance, funds, trusts, and financial leasing in the of 2015 the value of assets. The bank published BOCOM Climate Index of China’s Wealth, mainland, making progress towards the goal of becoming a financial holding group with licenses for a full held wealth management summits for outstanding entrepreneurs on a regular range of business. The Bank of Communications Schroder Fund Management Co., Ltd. delivered an basis, and organized the “‘Win to Fortune’ with You” traveling roadshow nation- Private banking outstanding performance in fund operations, achieving an about 55 percent rate of return in stock funds. The wide, enhancing its brand image in the field of wealth management continuously. clients Bank of Communications International Trust Co., Ltd. launched the first products about the securitization of In the seventh Top Wealth Management competition organized by Shanghai Securi- credit assets held by foreign banks and the securitization of credit-card assets. The Bank of Communications Up 26% ties News, the bank’s OTO Fortune and interbank wealth management product Financial Leasing Co., Ltd. had 33 billion yuan in aircraft leasing assets, ranking third among Chinese leasing over the beginning were recognized as the Best Wealth Management Brand of the Banking Sector of 2015 companies. BOCOM International Holdings Co., Ltd. completed 28 investment banking projects and ranked and the Best Wealth Management Product of the Banking Sector respectively. first among the five Chinese investment banks by the number of IPO projects undertaken as a sponsor.

China BOCOM Insurance Co., Ltd. provided premium discounts for customers of BoCom’s Hong Kong Environmental Responsibility Branch, making them understand what is “One BoCom, One Customer” through quality one-stop services. Asset type Worth Growth over the beginning of 2015 BoCommLife Insurance Co., Ltd. held the first customer service festival, launched Wechat Red Packet Assets in custody Approx. 5.58 trillion yuan 34.09% activity, and arranged for health management services, which improved customer experience. AUM Approx. 2.45 trillion yuan 13.93% Assets of private banking clients 407.3 billion yuan 39.97% Case Case

BoCom promotes remote banking across the board

During the reporting period, BoCom put together a team of 1,000 account managers to offer remote wealth management services to the 4 million

individual customers of 37 branches on a one-on-one basis. The customers Social Responsibility can reach their account managers by making a call via the registered mobile phone number and receive financial and non-financial services provided by their account managers via various electronic platforms. BoCom launches the industry’s first credit BoCom supports the establishment of the Bank of Hainan card wealth management product – “Spend & Earn” The Bank of Hainan opened for business during the reporting period. BoCom holds a 10 percent stake in the bank as its strategic investor. It made active efforts to help Hainan build an island for international tourists and gave the Bank of Hainan full During the reporting period, BoCom launched a credit card wealth support in staffing, preparation for establishment, system building, and business operations. management product “Spend & Earn”, providing holders of the bank’s credit cards with more value-added benefits. With an application at the BoCom’s Jiangsu Branch works with Bank of Communications official credit card website, a customer can get a wealth management product that offers a return 10 times that of a current deposit and the

Financial Leasing Co.,Ltd.in supporting a finance lease project minimum purchase is 0.01 yuan. There will be no fees or any limits if the Vision of the Future During the reporting period, the Jiangsu Branch worked with the Bank of Communications Financial Leasing Co., Ltd. in money in the account is used to pay credit card bills. The product allows supporting a finance lease project of Nanjing New Port Development Corporation. Together, they provided 600 million yuan for the free transfer of money from and to a number of banks 24/7. By financing for a period of six years. That was also the first project about urban construction investment for a national economic inputting “return” on the WeChat service platform, customers can easily development area undertaken by the Bank of Communications Financial Leasing Co., Ltd. check how much they earn every day.

21-22 Strategy and Profile

Case

The Real Economy BoCom’s Gansu Branch offers active support to Lanzhou New Area Lanzhou New Area is the first national new area established in northwest China in 2012 upon the approval of the State Council. During the reporting period, BoCom’s Gansu National Macro-control Policy Branch gave a credit line of 1 billion yuan to the land reserve center of Lanzhou New Area, and the outstanding loans extended to the center amounted to 799 million yuan. The Economic Responsibility money was used to purchase 14,825.76 mu of land for the administrative and cultural zone, During the reporting period, BoCom followed the national macro-control policy and took the central hi-tech park, and warehousing and logistics zone of Lanzhou New Area. The land reserve government’s requirements on serving the real economy and the industry’s financial policy as the main center was also provided with 1 billion yuan financing for demolition compensation, land guidelines for determining the direction of lending. The bank responded actively to the country’s major levelling and other aspects of land purchasing. strategies, supported important areas of the real economy and worked hard to facilitate China’s economic transformation and upgrading. It published the BoCom Guide on Responding to China’s Important Strategies and Policies, created a pool of important projects to be promoted, and gave strong support to national and local projects concerning people’s well-being. Through guidance based on development levels of major Major Infrastructure Projects industries and listing, limit management, and reinforcing efforts, the bank managed to improve its credit structure, channel its credit resources into the areas essential to economic transformation, and enhance the During the reporting period, BoCom provided active support for important infrastructure projects of China, effectiveness of finance supporting the real economy. including the construction of trunk freeways in important regions of economic integration such as the Beijing-Tianjin-Hebei region and Yangtze River Economic Zone, development of the country’s major high-speed railway lines, expansion of major airline hubs, large Chinese air freight companies, and major

Thank you for your collaboration in every stage of bond issuance as a major underwriter. Your service is Environmental Responsibility water conservancy projects. professional and of high quality. BoCom is among the top underwriters by the quantity of bonds underwritten, contributing significantly to the bond issuance of Anhui Province for 2015. —Finance Department of Anhui Province expressing gratitude to BoCom’s Case Anhui Branch for supporting the issuance of government bonds BoCom’s Beijing Branch bolsters the coordinated development of Beijing, Tianjin and Hebei

Development of Western China BoCom’s Beijing Branch offers quality financial services to facilitate the integration of Beijing, Tianjin BoCom plays an active part in boosting the and Hebei. It has signed an MOU on cooperation with the Beijing-Tianjin-Hebei Intercity Railway development of central and western China. According Investment Co., Ltd. to fully support the construction of intercity rail network and thus promote to the industrial and economic characteristics of these coordinated economic development in the region. Moreover, the Beijing Branch provided 4.6 billion areas, the bank channels more credit resources into yuan in loans for Beijing Capital Land Ltd., the developer of the Lize Financial Business District in fields of energy development such as metals, natural Fengtai District, Beijing. The money is to be used for the development of land plots F02 and F03 for the gas and coal as well as fields directly concerning Social Responsibility people’s lives such as health care, education, water, project. gas, and electricity. At the end of the reporting period, the bank’s outstanding loans to the central and BoCom’s Henan Branch supports rail western areas of China amounted to about 1 trillion transit development in Zhengzhou yuan, an 8.90-percent increase year on year, and above the bank’s average loan growth. BoCom’s Henan Branch gives all-round support The bank gives credit support to central and to Zhengzhou’s effort to develop rail transit. It has western areas of the country according to features BoCom’s Aral Sub-branch granted fixed asset loans involving 500 million of local economy. The Xinjiang Branch seizes the yuan, handled finance leasing involving 1 billion opportunity presented by the Belt and Road grids. The Guizhou and Yunnan branches follow industrial yuan, and underwritten private placement bonds Initiative and strengthens the support for the upgrading projects closely. The Ningxia Branch offers full worth 2 billion yuan. A professional team has been construction of transportation facilities and power support to the water conservancy projects of Ningxia. established to communicate with the government and Finance Department of Zhengzhou. The Vision of the Future BoCom has made significant contributions to the economic and social development of Guizhou. I wish the Henan Branch also raised 5 billion yuan for the bank greater success in the future. construction of Line 2 with the help of the Bank of —Comment of member of the Standing Committee of the CPC Guizhou Provincial Committee and Communications Schroder Fund Management Executive Vice Governor of Guizhou on the work report of BoCom’s Guizhou Branch Co., Ltd. and initiated the extending of 7 billion yuan fixed asset loans for Line 5.

23-24 Strategy and Profile

Financing plans are worked out by customer group and customers Launched new financing models – accounts receivable pledging Micro- and Small Enterprises are developed and managed by group. At the reporting period, (creditor’s rights), inventory financing (goods ownership), the number of project-based financing plans increased by fixed asset loans (real rights), equity financing (stock ed Inn 142 over the beginning of 2015, the number of micro- as ova rights), and intellectual property pledge (intellectual t-b l ti During the reporting period, BoCom continued to act on the State Council’s decision to support the c ode t ve and small enterprises involved grew by 3,787, je m o a property rights); involved guarantors and o t gu p growth of micro- and small enterprises and supported popular entrepreneurship and innovation under r n a p p e r r and outstanding loans to such enterprises e m a o insurers to increase the capacity of micro- v e n a i t complex economic and financial circumstances. In June 2015, the bank established a Department of t g e c increased by over 7.69 billion yuan. a a e h and small enterprises for getting loans. v n e Small Business Finance, made clear the three-year development goal and strategy of services o a s n BoCom’s m

n targeted at micro- and small enterprises, intensified efforts to build specialized teams and the small I

practices in support- Economic Responsibility

business team, and strengthened support for micro- and small enterprises by creating platforms and ing micro- and

expanding channels. At the end of the reporting period, the bank’s outstanding loans to micro-, small w small enterprises s Developed two better ways of repayment, t Intensified efforts to make better use of a I y n e c and mid-sized enterprises amounted to about 1.23 trillion yuan. v i.e. renewal of loans and annual audit; s n ti u the Internet and big data and developed o a d o v v o f a o r streamlined procedures for a single operation r ti n p products such as POS loans, Woyidai, ep ve In l during the loan period; and extended the maxi- a ia Shuirongtong, and electronic supply chain ym nc en ina mum loan period to five years to ease the financ- t f system to improve the financing efficiency of ing pressure of micro- and small enterprises micro- and small enterprises. 【 】 Vice Premier Ma Kai inspects 【Topic】 BoCom’s Caohejing Sub-branch in Shanghai

On May 14, Ma Kai, member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, inspected BoCom’s Caohejing Sub-branch in Shanghai, in the company of Shang Fulin, Chairman of China Banking

Regulatory Commission, Yi Gang, Deputy Governor of the People’s Bank of China, Tu Guangshao, Vice Mayor of Case Environmental Responsibility Shanghai, and Niu Ximing, Chairman of BoCom.

Ma Kai heard reports on BoCom’s efforts to support the real economy via finance, boost the development of micro- and small technology enterprises, reduce fees for lowering the financing costs of enterprises, etc. He asked about the BoCom’s Shenzhen Branch launches comprehensive financial solutions financing problems of micro- and small technology start-ups and the bank’s solutions as well as the specific joint audit for the New Third Board and loan extending requirements and procedures of Caohejing Sub-branch’s financing platforms. He gave full recognition to BoCom’s awareness and innovative practices in helping micro- and small technology enterprises. During BoCom’s Shenzhen Branch integrated the resources of securities companies, law firms, equity investors and other financial the inspection, Ma Kai also had a look at the display cabinet of partner enterprises’ products and talked to customers in service providers to provide a full package of products and services for enterprises intending to get listed or having been listed the middle of receiving counter service, asking them about the types of service and fees. on the New Third Board. The bank recommends securities companies to enterprises planning to get listed for counseling, introduces a special loan product for enterprises that have signed a counselling agreement with an intermediary agency, and offers all-round professional and targeted financing, investment banking, settlement and other supporting services to enterprises listed on the New Third Board.

BoCom’s New Third Board Financing Program has served hundreds of enterprises planning to get

listed or having been listed on the Board. The bank helps to maximize the efficiency and benefits of Social Responsibility capital operations for these enterprises. It stands as a perfect example of serving innovative enterprises with an innovative model. —“BoCom’s Shenzhen Branch supports start-ups with innovative financial products”, Shenzhen section of people.cn

BoCom signs agreement on China’s first permanent fund serving micro-, small and mid-sized enterprises

To avoid the risk of funding shortage for small and mid-sized enterprises and help them obtain on-lending support from financial institutions in a timely manner, BoCom’s Wuxi Branch signed a cooperation agreement with Wuxi Municipal Commission of Economy and Information Technology and Wuxi Small and Mid-sized Enterprises Service Center on on-lending to Wuxi’s small and mid-sized enterprises in urgent need of funding. It means that the small and mid-sized enterprises in Wuxi will be able to obtain 10 million yuan funding for urgent need. Each loan of such kind can be used for Vision of the Future no more than 10 days; the general rate per day for the first two days is only 0.4 per mille and that for the period from the third to the tenth day is 0.8 per mille. In contrast, the common general rate per day is 5 per mille. During the reporting period, the Wuxi Branch conducted on-lending operations involving more than 1.6 billion yuan.

25-26 Strategy and Profile

Agriculture, Rural Areas and Farmers Case

During the reporting period, BoCom continued to strengthen financial support for agriculture, rural BoCom’s Henan Branch works with the government in supporting areas and farmers. It channeled resources across the bank into priority agro-related projects. At the agricultural enterprises end of the reporting period, the bank’s agro-related loans amounted to about 599.27 billion yuan,

registering a steady and fast growth. In response to the national policy, BoCom’s Henan Branch joined hands with the Agriculture, Animal Husbandry and Grain Economic Responsibility Departments of Henan Province and leveraged on the platform offered by the guarantee company established by competent authorities in extending loans to agro-related enterprises by group (40+ enterprises, about 500 million yuan). The bank takes agro-related finance as a new highlight of business and works to develop it better on a larger scale. It has set up a working group for agro-related industries to offer special assistance. Agro-related loans

Agriculture, forestry, animal husbandry, Agro-related enterprises and fisheries, non-farm (billion yuan) and organizations in cities (billion yuan) Environmental Responsibility 0.02 2013 88.36 2013

1.12 2014 87.86 2014

1.02 2015 124.51 2015

Farm loans (billion yuan) Rural enterprises and organizations (billion yuan)

17.70 2013 434.70 2013

41.19 2014 430.05 2014 Staff members of BoCom’s Jilin Branch offer bank card service at farmers’ homes. Social Responsibility 40.07 2015 433.68 2015

BoCom follows closely China’s progress in new urbanization and the building of new countryside. It offers greater support to the development of modern agriculture, reclamation of farmland, demolition of farmers’ houses and their relocation, construction of basic facilities, etc. Sixteen of its branches have introduced related operations on a trial basis. BoCom channels great efforts into developing county outlets, which is an important measure to The bank develops innovative financial products and services to meet the specific needs of distribute outlets in a better way and serve economic development at county level. The focus is on agro-related enterprises and farmers. Its Sichuan Branch improved the approaches to credit increasing the coverage of county outlets. During the reporting period, the number of county outlets guarantee and risk compensation mechanism and developed a joint guarantee model involving rose to 298, involving 171 counties (8.52 percent coverage), and 101 of the counties are among the multiple parties such as agricultural enterprises, farmers, rural cooperatives, finance authorities, and Top 100 Counties of China (80.8 percent coverage). The bank’s capacity to deliver financial services guarantee companies. The Jilin Branch developed a whole chain of rural financial products, worked has been further increased. The Dayi Bocom Xingmin Rural Bank Co., Ltd., Anji Bocom Rural Bank with the Department of Industry and Information Technology in applying for a 2 percent government Co., Ltd., Shihezi Bocom Rural Bank Co., Ltd., and Laoshan Bocom Rural Bank Co., Ltd. have grown Vision of the Future subsidy for farmer loans, and promoted loans guaranteeing returns from land to address the financial steadily. By the end of the reporting period, their outstanding loans amounted to about 4.82 billion needs of farmers in the spring farming period. yuan, almost 96 percent of which were given to farmers and micro- and small enterprises.

27-28 Strategy and Profile

People’s Well-being Case During the reporting period, BoCom provided credit support for individuals to meet their reasonable financing BoCom’s Jiangsu Branch builds WeChat platform for paying social needs, and focused on supporting industries concerning people’s well-being, promoting consumer spending, insurance premiums facilitating various types of payment, and improving people’s housing. Its science, education, culture, and health BoCom’s Jiangsu Branch builds an open WeChat platform for freelancers to pay social insurance premiums. The platform loans, personals loans, grew faster than other types of loans, during the reporting period. Economic Responsibility allows a freelancer to link the social insurance account with WeChat to pay premiums, check information, adjust premium base, etc. Via the WeChat platform, freelancers can pay premiums for endowment and medical insurance. On the next day following a freelancer’s payment on the WeChat platform, Tenpay will transfer the payment to the account that the Industries Directly Affecting People’s Life social insurance authority has opened with BoCom. In this way, it reduces freelancers' queuing time for paying premiums BoCom believes in inclusive finance for the people and thus keeps increasing credit support to health care, in a bank outlet. education, gas and water supply, etc. At the end of the reporting period, the bank’s outstanding science, education, culture and health loans amounted to about 71.73 billion yuan, a year-on-year increase of 19.9 percent. Personal Consumption

During the reporting period, BoCom provided credit support for personal consumption and explored new approaches to consumer loans. The bank developed a new product “e-loan express” based on product and Case service innovations. The product is intended to meet customers’ needs for simple procedures, fast application approval, easy availability, and convenient payment. In this way, the bank provides individuals with fast and BoCom’s Yangzhou Branch operates convenient financing services in everyday life. As of the end of the reporting period, personal loans amounted to Environmental Responsibility about 993.32 billion yuan, a net increase of about 124.96 billion yuan over the previous year. “Huimintong” on a trial basis

BoCom’s Yangzhou Branch works with communities, business Case organizations and small merchants in placing self-service cash BoCom supports poor students equipment in the business premises of small merchants which are responsible for the day-to-day operation of such equipment and BoCom introduces personal loans in the field of education to meet different needs. National student loans, private student checking cash in it. The merchants need to apply to the bank for a loans, etc. are provided to help poor students finish their study and support people in pursuing higher education or studying Pacific debit card and the cash in the self-service equipment is abroad. The aim is to promote consumer spending on education. The bank has developed cooperation with some universities owned by the merchants. The equipment can be used to deposit in Fujian and Guangdong and extends national student loans to support the study and daily living of poor university students. and withdraw money and check related information. In the future, The bank’s outstanding private student loans reached 42 million yuan at the end of the reporting period. it will also be used to pay utilities bills, check social insurance information, and recharge IC cards so as to meet the needs of community and rural residents. This project fills in the blank in basic financial services in remote rural areas. It helps to facilitate farmers’ participation in social insurance program and promote the application of IC cards. The brand of “Super Friday” enriched Social Responsibility BoCom’s Inner Mongolia Branch offers start-up funds for laid-off workers BoCom organized a host of “Super BoCom’s Inner Mongolia Branch supports popular entrepreneurship and innovation and works with the Baotou Employ- Friday” marketing activities, which were ment Bureau in providing guaranteed small loans for laid-off workers in the city, particularly members of middle- and well received and helped to build up the low-income families. By the end of the reporting period, the Inner Mongolia Branch had extended a total of 162 personal most popular brand for the bank. The loans, involving 12 million yuan, and two small business loans, involving 3.1 million yuan. It offered start-up funds to more biannual “Super Super Friday” , an than 100 laid-off workers, giving them the chance to get reemployed. upgrade of “Super Friday” , attracts a large number of consumers thanks to the 50 percent discount. During the reporting period, on the day of “Super Super The small loans BoCom extends bring laid-off workers hope. In this way, BoCom fulfills its social Friday” promotion, the number of responsibility. transactions reached 1 million, involving up to 377 million yuan.

—A laid-off worker of Baotou applying for a small loan Vision of the Future

29-30 Strategy and Profile

BoCom supports the securitization of housing Housing Improvement provident fund. The Ministry of Housing and Urban-Rural Development launched the hous- During the reporting period, BoCom acted on the central government’s decisions on low-income housing and ing provident fund settlement system. In offered credit support to the construction of such housing. At the end of the reporting period, the bank’s response to that, the bank assisted local hous- outstanding low-income housing loans amounted to around 35.33 billion yuan, a year-on-year increase of ing provident fund management centers in pro- moting liquidity management, provided com-

0.29 percent. Economic Responsibility prehensive financing for the centers in the form The bank adopts a differentiated home loan policy and gives special support to owner-occupiers, particularly of working capital loans, deposits pledge loans, first-time home buyers and second-time home buyers for a sufficient floor space per capita. It works with etc., and worked with the centers in promoting housing provident fund management centers on “provident fund for commercial loans”. For housing comprehensive service platforms. provident fund management centers which are in short of funds, the bank launches loan products featuring The mobile phone app for housing provident fund discounted interest to meet the needs of workers making contributions to the housing provident fund. During is launched in Guangzhou on a trial basis. The the reporting period, the bank’s outstanding personal home mortgage amounted to about 604.36 billion app features four sections, i.e. News, Queries, yuan, up 14.06 percent over the beginning of the year. Services, and My Settings. Three new functions – “repayment of overdue loans” , “application for earlier repayment” and “application for earlier settlement” are added for mobile devices to Case achieve service delivery anytime anywhere. Environmental Responsibility i.e. My Queries Services BoCom’s Tianjin Branch supports Gegu’s small town News Settings BoCom’s Chongqing Branch demonstration project Phase II launches provident fund loans repayment of application for application for To address the fund shortage of Chongqing Housing overdue loans earlier repayment earlier settlement Provident Fund Management Center, BoCom’s Chongqing Branch launched personal provident fund loans. Loan applicants must be eligible for both Case personal provident fund loans and the bank’s personal home loans. Eligible applicants only need to pay the interest for a provident fund loan and the difference BoCom’s Beijing Branch supports the rebuilding of rundown urban areas between the interest of a commercial loan and that of a The Xiaosi Village rebuilding project in Chaoyang District of Beijing involves homestead where no construction work is provident fund loan will be covered by Chongqing

carried out for 17 years and the buildings in the village are very old. On July 21, 2012 when a torrential rain hit Beijing, Social Responsibility Housing Provident Fund Management Center. During nearly 60 households were flooded. The villagers ask for a lot on demolition or rebuilding. The Beijing Major Project the reporting period, the Chongqing Branch extended Command Office included the village in the rundown area rebuilding and environmental remediation program in 2013. more than 2,500 such loans, involving 839 million yuan, BoCom’s Beijing Branch took the lead in the banking sector to approve loan application in the October of 2015. It gave the helping to ease the funding shortage of the provident project a credit line of 1.5 billion yuan and granted 50 million yuan in the next month that eased the financing pressure of fund management center for personal loans. the project and ensured smooth progress in demolition. Vision of the Future

31-32 ENVIRONMENTAL RESPONSIBILITY

A bumper harvest will be scored if farming in the right season; timber will be in end- less supply if deforesting at the right time. — Mencius,WarringStates Period

33-34 Strategy and Profile

BoCom’s innovative measures and intensified support for energy conservation and Green Credit environmental protection programs Area Example During the reporting period, BoCom further strengthened its green credit practice. The number of green customers and the proportion of outstanding green loans remained large; the number of Support the construction of clean electricity projects of the State Grid, Huaneng customers and projects in such fields as low-carbon economy, energy saving, and environmental Clean Power International and provinces including Fujian, Hebei, and Shanxi. By the

electricity end of the reporting period, outstanding loans to thermal power, hydropower, wind Economic Responsibility protection continued to grow; and there was a drop in loans to heavily polluting, energy-intensive, and power and nuclear power generation had reached 81.5 billion yuan. overcapacity industries. Grant syndicated loans of 1.47 billion yuan to the integrated use project of Qingdao Runyi Clean Energy Co., Ltd. and the Bashan environment-friendly Ecological thermal power project of Xuzhou; provide about 1.06 billion yuan in loans for major Green Policy environment ecological environmental projects including the water environment pollution control project of Tien Lake and the integrated straw use project of Jiamusi During the reporting period, BoCom constantly improved the green credit policy system. It developed industry-specific green credit management guidelines and implemented classified management according to the Support the Qiandao Lake water supply project of Hangzhou Raw Water and the Sewage sewage disposal project of Yinchuan, as well as sewage disposal and recycling projects characteristics of customers and projects in different sectors, and evaluated the environmental and social risks of treatment of central and western regions like Guizhou, Guangxi, Inner Mongolia, and Ningxia customers and projects from such aspects as energy consumption, pollution, land, health, safety, resettlement, ecological protection and climate change; followed the green credit requirements throughout the credit business Support the new energy projects of Hanas New Energy Group and Zhongyuan Jinqiu New New Energy Development Co., Ltd.; grant fixed asset loans to new energy automobile process, established the “one-vote-down system” in environmental and social risks, and comprehensively energy business of Changsha BYD and GAC BYD evaluated the environmental and social performance of customers throughout the process of credit access, credit Environmental Responsibility review, post-credit management and fund appropriation. Specific measures for deepening green credit practice were proposed concerning development objectives, classified management, checklist management, priority During the reporting period, BoCom developed lending guidelines for energy conservation and environmen- support and performance improvement, and other aspects. Tools such as Due Diligence Checklist and tal protection and strategic emerging industries, with priority given to such fields as energy conservation and Specification for Environmental and Social Risk Management and the Checklist for Environmental and Social environmental protection, resource recycling, waste disposal and renewable energy in the principle of Compliance Risk Review were developed and included in the Credit Manual to help community institutions and business sustainability. By the end of the reporting period, the bank’s loans to energy conservation and credit personnel to better practice green credit in credit management and operations. environmental projects helped to save about 6.23 million tons of coal equivalent and about 8.34 million tons of water, and reduce about 14.1 million tons of CO2 emissions, 117,000 tons of COD emissions, 9,000 tons During the reporting period, BoCom issued the Outline of Credit and Risk Policies. According to the national of ammonia nitrogen emissions, 16,000 tons of SO2 emissions, and 3,000 tons of NOx emissions, making green development strategy, it constantly advanced green credit practice and increased credit support for great contributions to a better look of China. energy saving and environmental protection including recycling economy, low emission and resources conservation, in a move to cater for the needs of the new normal and lead the quality and efficient development of the bank’s asset business. At the same time, it played a due role in joint prevention and Case control of air pollution by lending support to the structural adjustment of the thermal power industry, large BoCom’s Henan Branch supports Henan’s first PPP water project power plants and coal-electricity integrated complex projects, urban sewage treatment and waste disposal projects, desulfurization and denitrification projects for air pollution control, and key customers in such fields During the reporting period, BoCom’s Henan Branch granted fixed asset loans of 800 million yuan to Zhoukou Water Ecology Social Responsibility as industrial energy conservation, ecological protection and environmental protection. Investment and Development Co., Ltd. to support its comprehensive water management project in Zhoukou, Henan Province. This is the first water project in PPP mode in Henan. With a total investment of 7.63 billion yuan, the project will improve the water environment of rivers in the city of Zhoukou in accordance with the requirements for building a model city in water ecology and Supporting Green Industries a “sponge city”, so as to enhance the flood protection, drainage and disaster reduction capacity and improve the infrastructure for water ecology and environment. During the reporting period, BoCom saw its green loan customers accounting for 99.64 percent of its total BoCom’s Chongqing Branch supports the development of environmental enterprise customers and outstanding green loans 99.79 percent of the total, up 0.06 and 0.01 percentage point over the end Chongqing Shenjiexin Technology Co., Ltd. is a medium-sized private company specialized in the retrofit and sales of waste and of last year. In particular, Cat-1 green loans not yet paid sewage disposal equipment. It improves on or develops waste and sewage disposal equipment systems according to orders, off and being used to promote low carbon economy, with a designed capacity of 100 sets of equipment. It has mainly provided products for Chongqing Langrui Environmental environmental protection, and integrated resource use Mechanical Equipment Co., Ltd., Chongqing Aqua Environmental Equipment Co., Ltd., and Chongqing Hongmai Logistics Co., amounted to about 204.8 billion yuan. Ltd. Its ultimate downstream customers also include waste and sewage disposal plants in Sichuan, Chongqing and Guizhou. To Vision of the Future support its development, BoCom’s Chongqing Branch gave it access to a line of credit of 130 million yuan to support it Financed by BoCom Qingdao Branch, the Sino-German Ecopark is the first ecological intelligent park the two countries have collaborated on, and is purchasing sewage and waste disposal equipment and other raw materials. China’s first comprehensive demonstration park.

35-36 Strategy and Profile

Case Green Services BoCom’s Fujian Branch supports projects of waste incineration for power generation

BoCom’s Fujian Branch actively gave credit support projects of waste incineration for power generation to reduce the BoCom advocates green finance through e-banking, which delivers quality financial products and environmental impact and damage of household waste. The Fuqiao project of Datong it supported adopts advanced technologies services in a more convenient, efficient and cost-effective way. During the reporting period, e-banking of Tsinghua University, Zhejiang University and the Chinese Academy of Sciences and realizes the “zero emission” objective. It business share grew considerably to 88.13 percent, helping to reduce CO2 emissions by nearly 8,502.05 Economic Responsibility has three waste incinerators each processing household waste of 500 tons per day, with two in operation and one as backup in tons, a 31.37 percent jump from the previous year. usual. With these three production lines, it handles domestic waste of 1,000 tons per day (with maximum capacity of 1,500 tons per day), and 360,000 tons a year. The Zhangwan project of waste incineration for power generation in Ningde has an annual waste treatment capacity of 216,000 tons and annual energy output of 38.88 million kWh, saving 13,043 tons of coal equivalent. Environmental benefits from using e-banking services

Environmental effect (equivalent) Customer Annual Transactions Planted Reduced Reduced BoCom’s Xujiahui Sub-branch provided us a line of credit of 4.9 million yuan in 2015 to support our energy service growth trees CO2 emissions use of paper conservation and environmental project entrusted by the government of Xuhui District. According to the characteristics of our company, the credit was granted in an innovative pledge mode, and will be repaid with Corporate 574 million 78.82% 116,200 1,628.41 tons 6,573.91 tons electricity charges brought by the project and government subsidies. With strong support to energy saving online banking and environmental enterprises, BoCom has set an example in taking on social responsibility. Personal —Shanghai ZNGH Engineering & Technology Co., Ltd online banking 2.096 billion 85.32% 371,000 5,207.65 tons 20,960 tons Environmental Responsibility (including mobile banking)

Self-service 669 million automated machines -2.76% 119,000 1,665.99 tons 6,690 tons Reducing Loans to Heavily Polluting, Energy-intensive, and Overcapacity industries Note: The reduced paper use is based on an average use of paper by each company (corporate online banking) or transaction (personal online banking/self-service automated machines). Against the backdrop of the economic slowdown and the serious risks in overcapacity industries, BoCom further strengthened risk management and control over the heavily polluting, energy-intensive, and BoCom’s WeChat banking function was further improved, overcapacity industries. By the end of the reporting period, the bank managed to reduce its loans worth which consists of three parts: “Intelligent Finance”, “Easy Life”, 6.24 billion yuan to the heavily polluting, energy-intensive, and overcapacity industries, and the and “Integrated Services”. At the end of the reporting period, outstanding loans amounted to 61.24 billion yuan, further consolidating its achievements in this regard. the number of the bank’s WeChat account followers exceeded 2 million. The bank actively expanded external information channels and managed environmental and social risks. It paid close attention to external information such as regulatory information of government departments Social Responsibility and media reports, and took the initiative to manage environmental and social risks. According to the list of polluting enterprises given yellow alert and red alert in the environmental protection credit evaluation results released by environmental protection authorities, Guangdong Branch timely conducted self-inspection, required lenders to report the specific situations and risk status to higher-level branches in the form of credit memos, and took measures against relevant enterprises. Based on the list of enter- prises in violation of environmental protection and safety laws and with backward facilities and overcapac- ity forwarded by local banking regulators, Shanxi Branch conducted risk inspection and evaluation on relevant enterprises and developed plans timely to ensure the safety of credit assets.

BoCom energetically boosted green credit in the whole industry. During the reporting period, it was selected as one of the first directors of the Green Credit Committee of China Society for Finance and Banking.

During the reporting period, the bank was in full compliance with all environmental laws and regulations. Vision of the Future

37-38 Strategy and Profile

During the reporting period, the ratio of “self-service banks + people-centered outlets” to general outlets reached 2.55:1, of which the ratio of self-service banks to non-featured outlets was 1.42:1. A total of 693 iTMs Case were installed across the bank. BoCom unveils Pacific Payment Watch

35,000 8,000 At the end of 2015, BoCom launched the Pacific Payment Watch together with Swatch and China UnionPay. As a 7,585 30,703 wearable device that integrates all the financial functions of IC debit cards, the watch features a built-in financial security 7,263 chip, making payment more security and convenient. 30,000 27,085 7,000 6,842 Economic Responsibility

25,000 24,037

20,000 6,000 2013 2014 2015 2013 2014 2015 Automated Machines Stand-alone Self-service Machines

3,840 2,642 4,000 2,650 2,641

3,525 3,500 2,600 2,589 BoCom launches online payment plat- Environmental Responsibility 3,000 2,905 form for the military

To meet the needs of military units for electronic settlements, 2,500 2,550 BoCom developed a customized version of online banking 2013 2014 2015 2013 2014 2015 featuring high security and professional services. The system Self-service Banks Self-service Areas At Outlets went live in the middle of September 2015. Using the industrial application system framework, it features individualized web design and is only accessible via the Case private network. A number of security measures at technical and management levels are taken to ensure the security of military enterprises and bank assets. BoCom launches O2O innovative prod- uct for micro- and small enterprises

During the reporting period, BoCom launched O2O “Good Business”, an Social Responsibility innovative product for micro- and small enterprises. Backed by the cloud BoCom launches supply chain finan- computing technology and integrating software and hardware platforms, cial service brand the product provides comprehensive solutions ranging from O2O integrated acquiring, commodity management, financial management to During the reporting period, BoCom launched “Quick Chain”, financing and investment for micro- and small enterprises, thus a supply chain financial service brand. It collects background connecting intelligent acquiring, O2O targeted customer acquisition, and information on transactions through electronic channels, investment and financing services. It shakes up traditional consumption making convenient and efficient online financing a reality. For and expenditure habits and can be used in a variety of consumption the first time, BoCom customers are allowed to submit scenarios online and offline. Consumers can place orders with tablets at withdrawal applications by signing electronic contracts online. the stores, or reserve via their smartphones before they come to the Customers can sign credit contracts and credit line stores; they can pay by card or in cash, by scanning the QR code or via 快易链 applications via online banking and complete the credit their smartphones directly; after the payment, information interactions are 高效精准 路链接上下游 e business process without having to go to physical outlets. In established between merchants and customers, allowing the former to this way, a cross-region credit business system has been

push promotional information to targeted groups in a timely manner. Vision of the Future initially built.

39-40 Strategy and Profile

During the reporting period, the Data Center took a variety of energy-efficient measures and introduced more energy-efficient and high-performance servers and storage devices to reduce its Green Operations energy use. The application of virtualization technology helped to improve the use efficiency of infrastructure and reduce the use of physical resources. To improve air distribution and cooling efficiency, the computer room features a layout with isolation between cooling and heating passages, BoCom is dedicated to being a green enterprise and pays great attention to the environmental impact and uses air flow control technologies such as outlet temperature adjusting. Through such measures, of its day-to-day operations. During the reporting period, the bank made new progress in such aspects the Data Center’s PUE stayed around 1.76 in 2015, which is also the level in advanced countries. as energy conservation and emissions reduction, resource recycling, green procurement and green construction. Note: The PUE is a key measure of efficiency in power use, with a formula of: PUE = Total facility power/IT equipment power. PUE≥1. The closer it is to 1, the more energy efficient a user is. Economic Responsibility Energy Conservation and Emissions Reduction During the reporting period, the head office of BoCom strengthened energy conservation and Case emissions reduction through adopting energy-efficient technologies, applying energy-efficient BoCom makes the entire credit review process paperless measures, and enhancing energy-saving awareness. With the steady business development, the head office saw a year-on-year decline in energy consumption, advanced paperless office work, and During the reporting period, BoCom comprehensively implemented the 531 project, included every link of credit review increased the use efficiency of smart communication devices. By the end of the reporting period, the and approval into the system process, and set up position functions in a module-based way. The process was arranged bank had registered a steady decrease in energy use indicators such as per capita electricity, water flexibly through parameter settings in order to prepare for future organizational changes. Online credit review meetings, and gas use, total paper use decreased 14.5 percent year on year, and the number of video electronic supplementary materials and the integration of internal review, pricing and the credit reference system of the conferences increased 43.2 percent year on year. central bank provided technology support for the paperless business process. While keeping the business process in

efficient operation, the bank reduced resource consumption and advanced green office work. Environmental Responsibility

Bank-wide Head office resource / video conferences energy use Head office paper use

Water: 305,000 tons electricity: 85.58 million kWh tons 6072 gas: 1.32 million cubic meters 35.78

Case

BoCom Jinming Building engages in carbon trading Social Responsibility As a carbon trading member of Shanghai Environment and Energy Exchange, BoCom Jinming Building actively engaged in carbon trading and achieved good results in carbon emission control. Drawing on the experience of Jinming Building, the head office converted energy consumption into greenhouse gas emissions, reinforced horizontal and vertical comparisons, and conducted dynamic monitoring.

BoCom continued to use the ISO environmental management Direct emissions: 2,856.99 tons of CO2e system to manage the operations of its buildings. Specifically, indirect emissions: 67,437.43 tons of CO2e dedicated personnel adjusted the air conditioning temperature totaling 70,294.42 tons of CO2e in real time; water from air conditioner condensation was recycled, and operation levels of equipment and facilities were Bank of Communications Building of the Hong Kong BoCommService granted certificates of ISO22000 food adjusted based on the actual conditions for better efficiency Branch awarded the “Class of Excellence” Wastewi$e safety management system, ISO9001 quality and lower energy use. During workstation refitting, the bank Label of HKAEE. During the reporting period, Hong management system and ISO14001 environmental Vision of the Future shaped refined budgets and reasonably utilized the obsolete Head office’s Kong Branch recycled 73,770 kilograms of waste paper, management system assets and fully transformed the office space to improve greenhouse gas emissions helping to reduce 354,096 kilograms of CO2 emissions. resource use efficiency and reduce refitting costs.

41-42 Strategy and Profile

Green Procurement Environmental Activities BoCom has followed green standards in day-to-day procurement. During the reporting period, it revised the BoCom takes an active part in environmental activities including the initiative of “Rewards Points for Blue Measures of BoCom for Unified Procurement Management, putting more specific and stricter requirements on Sky” and the “BoCom Youth Forest” project. Besides, many other events themed on energy conservation, supplier management. It preferred to use suppliers with environmental management system certification and voluntary tree planting, low-carbon traveling, and environmental publicity have been organized so that the products with environmental labels, with an emphasis environment-friendly and energy efficient products certified bank can act on its green concepts and help to improve the ecological environment. by relevant authorities. The requirement for environment-friendly products is included in technical specifications, During the reporting period, the bank promoted the initiative of “Rewards Points for Blue Sky” on the and bidding documents must be printed on both sides and shall not be luxuriantly packaged. The idea of full life Economic Responsibility Pacific Credit Card Center’s B2C mall and by adding an APP link on the “Healthy BoCom Staff” cycle costs was considered in the procurement of equipment. The total cost of procurement included the purchase platform. The CYLC organizations at all levels mobilized young staff aged 35 or below to take part, and price and the fees incurred by management and use, so the bank realized systematic green procurement. gradually extended the influence to financial consumers via social media. During the reporting period, 21,273 young employees of BoCom donated a total of 174 million rewards points, equivalent to Head office suppliers by type 435,000 yuan, which can be used to plant shelter forest of about 870 mu. 151 Media and advertising 87 Construction 73 Transportation 63 Machine Case “BoCom Youth Forest” Song Shuguang, Deputy Party Secretary and Chairman of the Board of Supervisors, attends the unveiling Printing and gift Training and conference service Office supply Furniture 38 19 18 13 project launched in Inner Mongolia ceremony of the “BoCom Youth Forest” project On June 5, 2015, the “BoCom Youth Forest” project was Software development Equipment Service and maintenance launched in Duolun County of Xilingol League of Inner Mongolia. Environmental Responsibility 428 336 248 Song Shuguang, Chairman of BoCom’s Board of Supervisors, and Xu Xiao, Secretary of the CYLC Central Committee, along with other leaders, were present at the ceremony. At the event, Procurement contracts fulfilled Involvement of external experts 100% 4.36% the Youth League Committee of BoCom signed a cooperation agreement with the Youth League Committee of Inner Mongolia BoCom advocates energy-efficient green buildings and seeks to be low-carbon and environment friendly and donated two million yuan to the “BoCom Youth Forest” throughout the construction process. The bank refuses to accept any projects whose environmental project, reflecting the dedication of BoCom’s young staff to evaluation result is bad, and assesses the project progress in green aspects on a regular basis with a view environmental protection. The “BoCom Youth Forest” covering to developing top environmental projects. an area of 2,200 mu will be completed in three years, and will serve as a patriotism education base of the bank. The project has also been included in the “Protecting Mother River” Case campaign of the CYLC Central Committee, and become a representative of collaboration between the bank and the CYLC Energy-efficient retrofitting of air conditioners in BoCom Financial Towers Central Committee. Social Responsibility

The main building and the annex of BoCom Financial Towers have separate air conditioning systems. To reduce energy use, a set of cooling water exchange unit was added to the Carrier air conditioning system of the main building as a substi- BoCom’s staff members taking part in environmental activities tute for the lithium bromide absorption chiller of the annex. This not only saves a large amount of energy (water, electricity, and gas), but also improves the operation efficiency and prolongs the service life of the Carrier air conditioning system.

PV power systems of the Financial Service Center in Hefei

In the process of overlay construction, workers reinforced the six movable plank houses where solar PV systems were to be installed, in order to meet the load requirement of regularly sized crystalline silicon solar panels. The PV systems and the reinforcement cost 450,000 yuan and 20,000 yuan respectively. The

systems have a service life of 20 years, and costs can be recovered in four or Vision of the Future five years. With a daily power output of 274 kWh, the rooftop PV systems also Rooftop PV systems helped to reduce the indoor temperature in summer. in the residential area Staff of the Anhui Branch running for charity Staff of the Hubei Xiaogan Branch planting trees

43-44 Social RESPONSIBILITY

A relationship based on interest will termi- nate when the interest expires. A relation- ship based on power will be abandoned when the power is lost. Only the relation- ship based on mutual affinity will enable an ever-lasting friendship. — Wang Tong, Sui Dynasty

45-46 Strategy and Profile

During the reporting period, the bank handled 5,386 customer complaints, representing a slight increase month on month. That was mainly because it took time for customers and the staff to adapt to the new 531 Customer Services system. The bank focused on improving service attitude and problem-solving ability, and made active efforts to handle customer complaints. All customer complaints were dealt with, and 99.55 percent of surveyed customers were satisfied with the bank’s response. Customer Feedback

Customer Satisfaction What customers say Economic Responsibility BoCom gives high attention to customer satisfaction. It takes its mission to build a new-type bank-customer relationship that creates the greatest possible value for both, and is dedicated to providing convenient, quality I am a senior customer of BoCom. I once We are grateful to BoCom for its consistent I prefer BoCom’s services. The employ- and attractive products and services for customers. called the 95559 service hotline to get support. According to our needs and ees are so courteous and amicable, wearing help with online banking. Since I was difficulties at different stages of a radiant smile. It is quiet convenient to According to the Research Report on the Customer Satisfaction unfamiliar with computer, I might be not development, the bank has always transfer accounts or withdraw cash here. I among Chinese Retail Banks by professional agency J.D. Power so responsive. But the operator who provided all-round solutions in a timely am a regular customer of BoCom’s wealth answered my phone call was very patient manner. In addition to financing support, its management products for many years. Asia Pacific, BoCom won the first place with a score of 837 among and helped me step by step until the comprehensive and globalized financing Wealth managers always recommend the all the banks surveyed. The survey was based on feedback from problems were solved. I appreciate her solutions have helped us to solve the suitable products to me and make me feel retailing banking customers in 30 cities, covering 15 major banks service very much, and thank BoCom for financing difficulties of many projects, and assured. I don’t know much about finance, 837 having such excellent staff. reduced our financing cost. Thank BoCom, but they explain to me with great patience, operating in China. In addition, at the 2015 China Corporate — Commendationfrom a customer and may our cooperation be further so gradually I form an attachment to Integrity and Competitiveness Forum organized by the Economy BoCom won the first place Best Customer deepened in the future. BoCom and it is a delight for me to come magazine and other institutions, BoCom was granted the “Best all the banks surveyed Satisfaction Brand — Zhuhai Port Holdings to the bank. Environmental Responsibility Customer Satisfaction Brand” award. — A customer at BoCom’s Foshan Branch

Case BoCom holds service model selection

I am an individual business owner, with BoCom’s people-centered outlets are so relatively frequent capital flows. With a full convenient. They often hold a variety of BoCom is very thoughtful. It held chess range of financial products, BoCom has not interactive activities and provide professional contests so the elderly could get together to

only met our capital needs but also financial services to meet our needs, saving a play chess and chat. It is a socially Social Responsibility provided us new channels of capital lot of time compared with traditional outlets. I responsible bank. appreciation. am truly satisfied with such services. — Mr. Chen of Jingrui Garden — Mr. Zhu Hao, BoCom customer — Ms. Wu Fangfang, BoCom customer Community of Xiamen

Top 100 Model Outlets

During the reporting period, BoCom held a large-scale service model selection campaign. A total of 200 outstanding In 2015, 20 BoCom outlets were listed among the Top 100 employees were chosen through newspaper, online and on-site voting, including 100 lobby managers, 50 tellers and 50 Model Outlets selected by China Banking Association, account managers. 37 of the 100 lobby managers were shortlisted by provincial branches and those under the direct making it No. 1 in the Chinese banking sector by the number supervision of the head office. 15 “Model Lobby Managers” and 22 “Stars of Charm” were finally selected. of model outlets. Five outlets received the Excellence Award. Vision of the Future On December 4, 2015, BoCom Chairman Niu Ximing, President Peng Chun, Chairman of the Board of Supervisors Song Shuguang and Vice President Hou Weidong attend the seminar with model lobby managers from 37 provincial branches and those under the direct supervision of the head office, and communicate with them on the bank’s business and their 20 5 own career development. Top 100 Model Excellence Award

47-48 Strategy and Profile

BoCom is dedicated to disseminating financial knowledge among the public and creating a healthy Customer Rights Protection environment for customers to enjoy financial services. During the reporting period, the bank organized BoCom gives high attention to customer rights large-scale outreach activities such as “Financial Knowledge for All” , “Financial Knowledge for Every protection. It established the Department of Family” and “National Financial Literacy Month” , attracting 5.98 million participants. The invested money Customer Rights Protection, a tier-1 department for these activities totaled 4.75 million yuan, and about 6,589 persons per day averagely joined the co-located with the Personal Banking Department; activities. The bank also made great efforts to give gold investment training courses and publicity instituted the bank-wide collaborative mechanism activities; and established a long-term financial knowledge promotion mechanism by setting up a Economic Responsibility for customer rights protection, included customer dedicated area in outlets. During the reporting period, BoCom won the “Top Performance Award” in the rights protection into the performance appraisal “Financial Knowledge for All” campaign organized by China Banking Association. system, and created the “consumer rights proposal” assessment tool; constantly strengthened employee training on customer rights Attracting invested money day averagely protection, and promoted the best practices across the bank. During the reporting period, BoCom was recognized as a model organization in the online 5.98 4.75 6,589 million participants million yuan participants customer rights protection competition organized BoCom providing quality service to senior customers by China Banking Association. Environmental Responsibility Case

BoCom initiates satisfaction survey on customer rights protection Hubei Branch brings During the reporting period, BoCom’s Department of Customer Rights Protection developed the satisfaction index for financial knowledge to villages customer rights protection, the first of its kind in the banking sector. The index consist of five dimensions: trading channels, systems and processes, banking businesses, complaint handling, and comprehensive evaluation, covering such contents as customer satisfaction about products and services and whether customer rights are safeguarded. Satisfaction surveys on customer rights protection will be entrusted to a third-party company. The company will conduct surveys by way of online questionnaire on a quarterly basis, and then provide survey reports covering the head office and all of the 37 provincial branches and branches under the direct supervision of the head office. Survey results will be linked to customer rights protection service evaluation in the year. Social Responsibility

BoCom conducts financial education Xinjiang Branch introducing knowledge on small businesses to customers for children

During the reporting period, BoCom held nearly 4,000 financial education activities titled “Little Financers” across the country to help children get hands-on experience with banks and currencies and form good financial habits. These activities attracted a total of 77,000 families. Moreover, the bank invited Dr. Zhang Yiyun, a well-known psychologist and emotional education expert, to deliver financial classes to children, so that they could learn financial management and know about life management in a relaxing and fun environment. BoCom’s Yunnan Branch conducts “Little Guangdong Branch introducing new version Tianjin Fuli Huating Sub-branch celebrating the Jiangxi Branch holding Financer” activities of RMB to customers Double Ninth Festival with senior residents an anti-counterfeit-money activity Vision of the Future

49-50 Strategy and Profile

Product Innovations BoCom made continued efforts in product innovations, concentrating on improving mechanisms and introducing 【Topic】BoCom introduces Robot “Jiaojiao” innovative products. Product innovation systems including the product innovation laboratory project improving product “Jiaojiao” is a “lobby manager” integrating such functions as consulting, guiding, mechanism and innovative project launch project were Economic Responsibility mechanisms innovations business introduction, and entertaining, representing an innovative move BoCom made initially established. Projects of the product innovation to advance the building of intelligent bank and improve lobby services. So far, the bank laboratory were rolled out, and innovative products has introduced 60 robots, which are districted across 33 provincial regions. Through received positive market response. During the reporting voice recognition and touch-based interactions, “Jiaojiao” integrates lobby managers’ period, 107 product innovation plans were implemented. functions such as providing consulting services, introducing products, guiding customers and displaying innovative services. In addition, it can also play the coquetry and chat with customers. It extraordinary memory, cleverness and flexibility has won Case high praise from customers.

BoCom unveils “future community outlet”

At the China International Financial Exhibition held in October 2015, BoCom presented its “future community outlet” Environmental Responsibility themed “advance in science and technology benefits people” . The booth demonstrated a legion of innovative products such as lobby manager Robot “Jiaojiao” , Robot “Xiao e” for handling businesses on site, self-service card issuing

machine, “Good Business” terminal system, and online banking experience terminal. It could also provide onsite BoCom customers interacting with “Jiaojiao” financial services and unprecedented convenience for visitors, making a deep impression on them and becoming one of the most popular booths at the exhibition.

Under multiple pressures from the release of the 531 system, parallel operation of the old and new systems, frequent business innovations and surging transactions, BoCom’s systems maintained steady Social Responsibility and sound operation during the reporting period. 99.9998 percent of the bank’s core business systems were used, and 99.985 percent of the transactions made through the UnionPay interbank trading system were successful, putting BoCom in the third place among China’s 17 commercial banks. The construction of the two-tier (head office and branch) disaster recovery backup system was advanced in a comprehen- sive way, and the inter-city disaster recovery backup construction of the head office made BoCom one of the few commercial banks that is able to switch to offsite disaster recovery backup systems and make BoCom launches first-ever customer experience laboratory correction entries in key businesses such as counter business and agency business.

On January 1, 2015, BoCom officially put into use its first customer experience laboratory. The laboratory features the Bank’s core business systems were used entire user-centered design (UCD) process ranging from user behavior study, visual interaction design, stereotype design, usability testing, front-end development to product release, and adopts professional research methods such as 99.9998% expert walkthrough, rival study, feasibility test and eye movement analysis, providing strong support for the Transactions made through development and improvement of key services, products and channels of the card center. In 2015, it completed 36 user the UnionPay interbank trading system were successful experience improvement projects, and detected 388 experience-related problems, thus boosting customer experience 99.985% Vision of the Future of key products and services.

51-52 Strategy and Profile

Case Contribution to Financial Ecology BoCom is committed to providing customers with a secure environment for enjoying financial services and BoCom helps the police to arrest suspect fights against money counterfeiting, money laundering, corruption, and illegal fundraising, to help build a healthy financial market and protect customers’ interests. On the noon of July 13, 2015, local police tracked that a suspect was making a transaction at BoCom Bin’nan Sub-branch. After verifying the information, the sub-branch reported the matter to Xiamen Branch, which immediately

initiated the contingency plan. The Branch arranged an account manager to call the suspect, telling him that there was Economic Responsibility Case something wrong with the service. When the suspect returned to the sub-branch, two police officers waiting there arrested him all of a sudden. BoCom’s quick response and active collaboration thus won high praise from the police. BoCom’s financial service center

helps customer recover fund BoCom has taken steps to ensure customer information security by improving data management On February 1,2015, a customer called the financial service center to report a fraud. system and internal review of data security. It has worked with the Supreme People’s Court to establish The staff immediately checked the customer’s account and guided him to report the a cooperation mechanism allowing autonomic inquiry to reduce the cost of law enforcement, ensure loss of his card; took the initiative to tell him of the expenditure on an online platform, cyber security, and push forward the construction of a credible society. provided him the order number and serial number, and then suggested his contacting the third-party platform as soon as possible to see whether there was any chance to intercept the fund. Upon the end of the call, the staff submitted the urgent inquiry form. The call lasted just 4 minutes and 53 seconds. With the active support of the branch, Environmental Responsibility

the customer’s fund was finally recovered. BoCom customer sending a banner in token of gratitude

BoCom believes in fair competition and a clean business and strongly opposes bribes. During the reporting period, the bank conducted special operations to prevent and control the occurrence of corruption and crime. About 75,000 employees engaged in self-exams, provincial branches and those under the direct supervision of the head office carried out inspections on 100 percent of sub-branches, and provincial branches inspected more than 50 percent of branches under their supervision.

The bank strengthened the building of the anti-corruption system, and released the Interim Measures of BoCom’s Discipline Inspection Commission for Handling Misconduct and Clues, Measures for the Implementation of Integrity Conversations with Leaders and Employees, Interim Measures of BoCom’s Discipline Inspection Commission for Inquiring Misconduct and Clues Through Conversations and Letters,

Measures for Performance Appraisal on the Work of Improving Party Conduct and Upholding Integrity, and Social Responsibility Measures for Accountability for Improving Party Conduct and Upholding Integrity, in order to spot and warn employees of any improper behaviors in a timely manner and prevent minor problems from becoming serious problems. BoCom’s CPC Committee and Party Discipline Commission rigorously performed their respective responsibilities for implementing and overseeing the system of accountability for improving Party conduct and upholding integrity, and refined the checklist of responsibilities to further specify and quantify the BoCom’s Shandong Branch organizing an anti-money laundering activity items. The Party Discipline Commission established the Rectification Notice working mechanism and held the persons and leaders concerned accountable for their inaction or inability.

BoCom pays high attention to the security of local outlets, and takes effective measures to protect customers’ life BoCom has given high attention to fights against money laundering and terrorist financing, conducted and property safety. During the reporting period, the bank developed the Regulations on the Safety of Outlets, comprehensive money laundering risk assessment on businesses and products, advanced the and the security department worked earnestly to prevent and control risks, dealt with a number of risk events, centralized handling of suspicious transaction reports, and strengthened money laundering risk and helping customers to recover a considerable amount of losses. By the end of the reporting period, the bank management and terrorist financing risk prevention in cross-border businesses to prevent and fight dealt with 248 risk events which included 62 telecommunications frauds, 17 arrests of suspects with the police, against terror and economic crimes. Its efforts in this regard won high recognition from the Ministry of Vision of the Future 18 cases of breaking self-service equipment, three thefts, three robberies, seven cases of installing recording Public Security and local police departments. During the reporting period, it submitted 153 large-sum devices on self-service equipment attempting to copy bank cards, one disturbance at outlet, one blackmail, three and suspicious transaction reports to relevant authorities, and organized 1,207 anti-money laundering fires, and two bank card crimes, and helped the police arrest 17 suspects. training sessions, which were attended by 26,114 trainees.

53-54 Strategy and Profile

Employee Care

34.7% 35.0% 36.2% 4.1% 3.5% By the end of the reporting period, the bank had 91468 employees in and outside the Chinese 3.3% mainland. Of them, the bank’s branches in the Chinese mainland had 89269 employees, about 52.81 Economic Responsibility 2,419 2,358 3,658 percent were females.Its branches outside the mainland had local employees, and about 2,474 2199 49.7 3,240 percent of them were females. No part-time jobs were provided during the reporting period. 3,017

technical secondary school or below senior 3410 / 3.82% 613 / 0.69% between 41 and 50 above 51 intermediate 19534 / 21.88% 6496 / 7.28% junior college degrees master’s degree 2013 2014 2015 2013 2014 2015 17166 / 19.23% 16018 / 17.94% or above 9375 / 10.50% Females, middle and senior management (%) Members of ethnic minorities (%)

PROFESSIONAL AVERAGE DEGREE TITLES AGE junior 16076 / 18.01% Environmental Responsibility other The bank has also employed 126 disabled persons, offering them suitable jobs and fair treatment. 62.07% between 31 and 40 under 30 bachelor’s degree 25341 / 28.39% 37898 / 42.45% 60466 / 67.74%

benefits % Harmonious Working Environment 100 The bank offered more than 13,000 new jobs in the reporting period. About 4,244 of them were targeted at fresh college graduates, winning the bank the title “Best Employer of the Year in China”. The bank provides social insurance coverage and a housing provident fund for all employees, as well as BoCom provides competitive salaries and benefits for its employees, taking into consideration local additional benefits, such as supplementary medical and industry realities, so as to ensure that the employees benefit from its reform and development. insurance, supplementary old-age insurance and annu- Males and females as well as contract and full-time employees are both covered by the same policy in ity, periodic physical examination and recuperation to this respect, with remuneration closely tied to job skills, team performance, individual performance, reduce the government’s burden and free employees Social Responsibility and business performance of the bank. The bank also signed the Special Collective Agreement on from worries about the future. Besides, it developed the Protecting the Rights and Interests of Female Employees to ensure the legitimate rights and interests Regulations on Holiday and Leave Entitlements for Staff of female employees at institutional level. to ensure their employees’ legitimate leave rights.

BoCom’s Hong Kong Branch accorded the 2014/15 Good MPF Employer Award from Mandatory Provident Fund Schemes Authority (MPFA)

BoCom employees may file complaints about their interests directly to their supervisors or by writing letters. According to the national Regulations on Petitions in the Form of Letters and Visits and its actual situation, the bank formulated the Complaints Handling Regulations. It handles complaints

according to procedures. Some principles are followed in this regard, including management by local Vision of the Future authority, accountability at all levels, resolution of problems in accordance with law in a timely manner, Best Employer of the Year in China and combined use of persuasion and education. In this way, all the complaints are dealt with in an effective and timely way.

55-56 Strategy and Profile

Employee Growth Employee Health BoCom keeps helping its employees to increase their value. It has optimized its position system so as to During the reporting period, BoCom improved its employee care system and for the first time, included allow its workers to climb the corporate ladder smoothly and provided continued training through an inclusive the building of a happy enterprise into the strategic evaluation system of Party committees at all levels. training system for employees at all levels and all positions including managers, specialists, employees at A It established the “Employee Care” tripartite alliance, unveiled the “Life of Vigor” health and financial and B positions, and new employees. During the reporting period, the bank invested more than 180 million insurance plan, launched the “Healthy BoCom Staff” employee care platform, and implemented the yuan in training, and the number of participants in centralized training and remote training reached 460,000 group-buying discount program. Meanwhile, the bank continued and more than 740,000 respectively. Training covered 97 percent of employees, and 3,200 online courses to operate the mutual help association and provide assis- Economic Responsibility were offered. Teaching evaluation on key training programs scored an average of 4.86, and participant tance for the employees in need, and organized a satisfaction rating reached 98 percent. variety of activities to enhance the employees’ sense of happiness, belonging and honor, and 132.91 132.2 123.81 121.6 make BoCom a common home of all employees. 116.17 115.4 During the reporting period, the bank formu- lated the Plan for Building A Happy Enterprise 71.2 70.6 Employee 63.3 (2015-2017), laying the institutional founda- tion for the “Happy Enterprise” program. happiness index 2015 2014 2013 65.67 64.69 66.09

2013 2014 2015 2013 2014 2015 2013 2014 2015 During the reporting period, the bank’s Workers Congress covers all branches and looks out for

Average hours of training Average hours of training Average hours of training employee rights in the area of information, participation, and oversight. The second Workers Congress Environmental Responsibility (senior management) (middle management) (general staff) held its first and second meetings and considered the report on value-based assessment of all employ- ees and all products, and the report on the budgeting of 2015 and use of funds in 2014. The bank made great efforts to develop quality training programs, and provided training on Party building for Party secretaries of provincial branches and those under the direct supervision of the head office. It held a During the reporting period, BoCom constantly provided assistance for the employees in need, and the thematic workshop at Tsinghua University for heads of the bank’s affiliates. Responsible persons at D mutual help association continued to operate. Trade unions at all levels visited 3,989 financially positions were sent to Cambridge University and HSBC’s London Headquarters for training. Outstanding challenged employees and provided them with 14.34 million yuan in assistance. The online system of employees with doctoral degrees were selected to attend the first “young talent” training. The three-year the mutual help association was developed. About 69,793 employees volunteered to join the associa- training program attended by 500 strategic professionals was completed successfully. Moreover, the bank tion, and a fund of about 6.98 million yuan was raised, 4.35 million yuan of which was used to help 401 organized training for outstanding employees at A and B positions of the head office, employees to return applicants. from overseas, and the interns of the head office, and also strengthened standard training on newly recruited employees. All these training programs helped to improve the quality of staff substantially.

During the reporting period, BoCom pushed forward system building, developed the implementation plan The mental health initiative was continued. During for the building of the training system, and introduced measures for the construction of training centers of the reporting period, counseling calls were made the head office and branches, training service agreements, and management of training outside the bank, by 1,804 employees, lasting 485 hours; and 12 Social Responsibility so as to improve the training managment system. The first training-themed selection campaign was held, BoCom mental health centers were newly built, in which 20 quality training programs, 20 classic teaching cases, 20 excellent trainers and 60 outstanding with the total number of such centers reaching training personnel were recognized, cementing the foundation for community training. 104. A variety of 34 training courses about mental health took place. By dividing target population in four categories, the bank identified 2,286 employ- Case ees who need special attention, and managed to prevent and deal with seven psychological crises. BoCom launches the specialist training There were 71,169 staff members across the campaign bank, or 76 percent of the staff, participating in the survey on whether PM2.5 levels affected their During the reporting period, BoCom launched the specialist training campaign, mood. planning to develop, within five years, a team of about 2,000 specialists covering all

core businesses. In 2015, the bank provided training for 523 reserve specialists in Health booths were set up to provide health care Vision of the Future the fields of corporate banking, retail banking, interbank business, budgeting and services for employees. In 2015, the preparations accounting, operations, risk management, technology, and research. BoCom holding personal banking for 45 health booths and 24 micro-health booths specialist training were completed, of which 37 health booths are Staff of BoCom’s Changde Branch taking noon break now in operation. at health booth

57-58 Strategy and Profile

The “Healthy BoCom Staff” employee health management platform was upgraded in the “Internet Plus” During the reporting period, the bank organized a variety of cultural, artistic and sports activities for era, integrating such modules as online payment, venue reservation and health care. The model of employees, such as the fourth staff sports meeting, photography, calligraphy and writing contests, and employees’ exercise habits, model of credit redeeming preferences, and big data analysis system of flower arranging competitions. Through those activities, a distinctive workplace culture was nurtured. “Healthy BoCom Staff” were developed. During the reporting period, a total of 99,507 persons logged By the end of the reporting period, community institutions of BoCom organized 45 cultural and artistic in the “Healthy BoCom Staff” platform; the number of workers who worked out was 66,180, hitting activities, and won the “outstanding organization award” in the second microfilm contest of China’s 34.27 million kilometers in total, equivalent to circling the planet 823 times. That led to an equivalent financial sector, and the third prize and “outstanding organization award” in the choreographed dance reduction of carbon emissions by 5,141 tons and planting of 280,000 trees. A total of 890 calls were contest.

made by the “one-touch calling” function module. Economic Responsibility

“10m2 of Love” breastfeeding room at Nanning Service Center, one of the first 15 participants in the “10m2 of Love” campaign 1 2

1. Yongzhou Branch organiz- ing an outward bound Environmental Responsibility 2. Anhui Branch employees making zongzi 3 3. Financial Service Center holding a debate contest for young staff 4. Tianjin Branch concluding the third staff sports meeting 5. Guizhou Branch employ- ees playing basketball 6. Dragon boat race of the 4 head office in 2015 5 Social Responsibility Case

BoCom launches “Life of Vigor” employee insurance plan

During the reporting period, BoCom’s trade union and BoCommLife Insurance Co., Ltd. jointly launched the “Life of Vigor” employee insurance plan, offering employees a one-stop health care and financial service chain integrating product promotion, health information, transaction, and insurance. During the promotional period, 51,239 staff members participated in the insurance plan, accounting for 54 percent of the bank’s total employees. By the end of the reporting period, claims of about 200,000 yuan had been paid for eight cases to help take care of the employees’ health. 6 Vision of the Future

59-60 Strategy and Profile

Committed to Charity

Helping the disabled BoCom is dedicated to public welfare undertakings. It has Poverty reduction 8 million yuan continued to implement poverty reduction projects, provided 10.97 million yuan consistent support for the disabled and special education, taken active part in relief operations after natural disasters, extended Donations in 2015 Economic Responsibility assistance to people in need, and made great efforts to improve 24.48 million yuan the living condition and skills of the underprivileged, thus making contribution to realizing the Chinese dream. During the reporting period, the bank implemented 236 donated projects, and donated Disaster relief Other about 24.48 million yuan to support poverty reduction, special 2.89 million yuan 2.62 million yuan education and disaster relief, among others.

Dedication to Poverty Reduction

During the reporting period, BoCom conducted a variety of poverty reduction projects in 29 provinces, During the reporting period, the bank donated 2 million yuan to help Agangwan BENEFITED municipalities and autonomous regions, with about 11 million yuan in funds, which, along with support in the Village of Songshan Town to build 100 breeding sheds with an area of 200 m2. Environmental Responsibility form of technology and education, were used to support industrial development, help poor people to improve The project benefited 430 persons of 100 households, whose household income skills, and boost local economic growth. will increase 7,200 yuan on average. 100 households

Breeding sheds built with the help of BoCom

BoCom’s poverty reduction projects 430persons 【 】BoCom’s poverty reduction projects 【Topic】in Tianzhu County of Gansu Water-saving irrigation project funded by BoCom

In 2002, BoCom was designated by the State Council Leading Group for Poverty Alleviation and Development to help Tianzhu Tibetan Autonomous County of Gansu Province. Over the past ten-plus years, BoCom has invested a total of 32 million yuan and implemented over 30 poverty reduction projects to support local infrastructure construction, develop specialty industries, provide technology training for farmers and Social Responsibility herdsmen, and help financially challenged families. Its efforts have benefited 128,000 people and won wide acclaim in Tianzhu. BoCom Bridge completed

Bank of Communications Financial Leasing Co., Ltd. provides 150,000 yuan for 20 teachers and students of Qilian Township Central Primary School to attend charity event in Shanghai.

In an effort to care for left-behind children, BoCom Financial Vision of the Future Service Center in Wuhan conducts spends 150,000 yuan on buying printers, height adjustable desks and other school supplies for Machang Primary School of Qilian Township and supporting 200 students in need.

61-62 Strategy and Profile

Under the “For Tomorrow” program, which was started in Support for Special Education 2007, BoCom donates 100 million yuan to CFDP within a 10-year period, to be used by the foundation to support the education of young people with disabilities. By the end of the reporting period, BoCom had allocated 100 million yuan, about 91.98 million yuan of which had been The “For Tomorrow” program is a joint effort of BoCom, China Disabled Persons’ Federation (CDPF), used. In the past eight years since its launch, this

and China Foundation for Disabled Persons (CFDP), and continued to operate during the reporting program has provided aids for 32,000 students with Economic Responsibility period. It provided about 8 million yuan for education of over 4,000 high school students and university disabilities, subsidized 126 schools engaged in special freshmen with disabilities from poor families, in 25 provinces, municipalities, and autonomous regions, education, commended 1,199 outstanding special as well as rewards for 199 outstanding teachers of special education, 36 outstanding university education teachers and 143 outstanding university students with disabilities, and 582 students with disabilities wining the skills contests and painting and students with disabilities, gave trainings to 5,280 special calligraphy contests sponsored by BoCom. education teachers, and awarded 582 students with disabilities wining skills contests. Skills contest for visually impaired students and painting and calligraphy contest for students with hearing disabilities

Awards to 582 Grants to 32,000 students with disabilities wining skills contests poor students with disabilities Environmental Responsibility

100 million yuan Training for 5,280 allocated in total, Awards to 1,199 special education teachers outstanding special education teachers about 91.98 million used

Outstanding teachers of special education presented with awards

Subsidies to 126 Scholarship to 143 special education schools outstanding university students with disabilities Social Responsibility

Award-winning student Shou Wenqing, accompanied Painting and calligraphy exhibition of award-winning by her mother, graduates from Shanghai University of student Jin Wan from East China Normal University Political Science and Law

The development of special education not only needs the active effort of governments at all levels and disabled Zhao Shuying, winner of Special Education Teacher Award, Binhai County Special Education School persons’ federations, but also the participation and contribution from all walks of society. BoCom stands as a together with children receiving grants from the “For Tomorrow” program Vision of the Future perfect example in supporting special education. I would like to express sincere gratitude to the bank. —Wang Naikun, Vice President of CDPF and President of CFDP BoCom supported the “Donation Box” project for the 14th consecutive year, by raising 331,200 yuan from customers for the China Children and Teenagers’ Foundation (CCTF).

63-64 开展抗灾救灾

本行把抗灾救灾作为自己义不容辞的责任，通过开辟救灾绿色金融服务通道，积极组织捐款捐物、 提供金融援建支持等，帮助受灾群众渡过难关。报告期内，累计向西藏地震灾区、台湾粉尘爆炸灾 区等，捐赠救灾资金289万元。 Strategy and Profile

Disaster Relief Work Volunteer Services BoCom makes disaster relief its sworn duty, and helps disaster-stricken people by opening green financial During the reporting period, BoCom’s Volunteer Association, inspired by the spirit of “donation, fraternity, service channels, making donations, and providing financial aids. During the reporting period, the bank mutual help and progress together”, was actively involved in such activities as education aid and donated 2.89 million yuan to people in the earthquake-stricken region of Tibet and people affected by dust community welfare undertakings, and kept improving the quality of their services in an enhanced explosion in Taiwan. mechanism and a wider range, building up BoCom’s image as a reputed corporate citizen. Economic Responsibility Case Case

BoCom donates to Tibetan people BoCom’s Haishu Sub-branch affected by the Nepal earthquake and Yuehu Neighborhood jointly launches “Happy The 8.1-magnitude earthquake in Nepal, which occurred on April 25, Bank” campaign 2015, affected Shigatse of Tibet, leading to casualties, injuries and economic losses. BoCom soon donated 2 million yuan to the affected Haishu Sub-branch of Ningbo and Yuehu Neighbor- region and got prepared to meet the needs of disaster-stricken people hood jointly launched the “Happy Bank” campaign to and provide the financial services needed for disaster relief. The Bank encourage residents to earn “happiness rewards Sixty children from Aksu of Xinjiang taking part in summer camp organized by BoCom in Shenzhen and Chongqing, August 16 to 22, 2015 of Tibet, in which BoCom has a controlling stake, opened the green points” by taking part in courses and providing Environmental Responsibility BoCom making a donation of NTD 3 channels as soon as practical, and donated, along with its staff, funds million immediately after a serious dust volunteer services. With such rewards points, they of more than 600,000 yuan and supplies worth 100,000 yuan. explosion in New Taipei City of Taiwan can either redeem services and gifts at the sub-branch, or handy services provided by volunteers. Ningbo Branch grants loans for disaster relief

In 2015, the strong wind and heavy rain brought by Typhoon Chan-hom resulted in serious impacts on Ningbo. Ningbo Branch visited the affected enterprises immediately after the disaster, and opened green channels for disaster relief loans. BoCom’s Shenzhen Branch It applied to the head office for loans worth 1 billion yuan, which were used to help disaster-stricken enterprises in Cixi, shows care for left-behind Yuyao and Fenghua, and also gave loans to small, medium-sized and micro-enterprises and rural people, thus playing its children due role in disaster relief. BoCom’s Taipei Branch improves web accessibility by providing voice BoCom’s Shenzhen Branch organized a series of prompts for people with visual impairment and quick positioning function for people with motor disabilities, and was granted “A+ certification” by activities jointly with Southern Metropolis Daily and National Communications Commission BoCom’s Tianjin Branch lends a hand to people affected by explosions Shenzhen Municipal CYL Committee to show care in Tianjin and love for left-behind children. The branch used Social Responsibility 500,000 yuan of its own funds and raised nearly After the explosions in Tanggu of Tianjin on August 12, 2015, the Party Committee of BoCom Tianjin Branch, along with three million yuan for the activities. It organized heads of relevant departments, visited the workers who remained at their post defying the risks, and extended grants to 18 seven teams to visit left-behind children in Sichuan, workers who were injured. Meanwhile, the branch called on its employees to make donations, which amounted to 108,610 Yunnan, Guizhou, Chongqing, Hunan, Hubei and yuan in one week, winning wide applause from the society. The branch also gave active support to the government of Guangdong. It also invited left-behind children and Binhai New Area in disaster relief efforts, and followed up on matters about relief funds of Tianjin Harbor Industrial Park their families to take part in various activities such as Construction & Development Co., Ltd. and Tianjin Harbor Beach Development Co., Ltd., which totaled 10 billion yuan. city tours, wealth management lectures, career experience, and chorus training. Sixteen Macau Branch volunteers and their families making moon cakes with children at community nursery Vision of the Future

65-66 Vision of the Future

Apply prudently what you have learned from extensive reading, and bring into full play what you have accumulated over time. —Words of Advice to Zhang Hu” by Su Shi, Song Dynasty

67-68 Strategy and Profile

Vision of the Future

BoCom CSR measures for 2016 Economic Responsibility

Dealing with responsibilities

▲ Optimize the operational mechanism for corporate governance, continue to improve the management of capital and market capitalization, and increase the capacity for risk management across the board. ▲ Advance reform efforts in all aspects, inject vitality into business, and introduce innovative business strategies to achieve transformation and development under the “new normal”. ▲ Improve management standards, and push forward system building in all areas of respon- sibility continuously. Environmental Responsibility ▲ Strengthen CSR-related training and internal communication, get actively involved in exchange and selection activities organized by other organizations, intensify CSR publicity efforts, and promote the bank’s image of corporate citizen in an all-round manner. ▲ Boost stakeholder communication and encourage stakeholders to provide feedback.

Serving the real economy Practicing green finance

▲ Follow national macro-control policy, act in accordance with the 13th Five-year Plan, ▲ Promote green credit, introduce innovative approaches to green finance, and help to respond actively to the Belt and Road Initiative and the strategy of popular entrepreneur- advance ecological progress. ship and innovation, and keep improving credit structure to contribute to China’s ▲ Promote e-banking and Internet banking to provide customers with all-round green services. economic transformation and upgrading. ▲ Continue green operations and green procurement, engage employees in environmental

▲ Social Responsibility Promote the BOCOM strategy, accelerate the establishment of overseas institutions, activities as volunteers, and raise environmental awareness across the bank. help Chinese enterprises go global, and further develop overseas operations and integrated services in and outside the Chinese mainland. ▲ Support central and western China, agriculture, rural areas, and farmers, micro- and small enterprises, consumption concerning people’s well-being, and other key areas. Seeking harmony and mutual benefit

▲ Value customer satisfaction strategically, take actions to protect consumer rights, and keep improving customer experience to be the best service provider in the banking sector. ▲ Develop a contingent of specialists, continue to push forward the employee care project and increase employees’ sense of happiness. ▲ Support charitable activities and targeted poverty reduction and mobilize resources across

the bank to help lift the target population out of poverty. Vision of the Future

69-70 Strategy and Profile

Statement of Assurance 2016/SH-128 Economic Responsibility

To the Board of Directors of the Bank of Communications Co., Ltd. obtained in a limited assurance engagement is substantially lower than the assurance that would have We have been engaged to perform a limited assurance engagement on the selected 2015 key data in been obtained had we performed a reasonable assurance engagement. Therefore, we do not express the 2015 CSR Report of the Bank of Communications Co., Ltd. (BoCom). a reasonable assurance opinion about whether the selected key data for 2015 in the 2015 CSR Report have been prepared, in all material aspects, in accordance with the Applicable Criteria. A limited assur- Key Data ance engagement involves assessing the risks of material misstatement of the key figures whether due Our limited assurance procedures included the following selected key data as defined in BoCom’s to fraud or error and responding to the assessed risks. The extent of procedures selected depends on 2015 CSR Report (refer to the Key Performance table on pages 9 & 10). our judgment and assessment of the engagement risk. Within the scope of our work, we have Our assurance was with respect to the year ended 31 December 2015 information only and we have performed the following procedures in the headquarter of BoCom: not performed any procedures with respect to earlier periods or any other elements included in the ▲ Interviews with relevant departments of BoCom involved in providing information for the selected

2015 CSR report. key data in the CSR Report; Environmental Responsibility ▲ Analytical procedures; Applicable Criteria The criteria used by the Bank to prepare the selected key data in the 2015 CSR report is set out in the ▲ Examination, on a test basis, of documentary evidence relating to the selected key data on which definitions of the key data on pages 10, 11 and 42 of the 2015 CSR Report. we report; ▲ Recalculation; Management's Responsibilities ▲ Other procedures we deemed necessary. The management of BoCom is responsible for the preparation of the selected key data in the 2015 CSR Report in accordance with the Applicable Criteria. This responsibility includes the design, imple- Inherent Limitation mentation and maintenance of internal control relevant to the preparation of the selected key data in The absence of a significant body of established practice on which to draw to evaluate and measure the 2015 CSR report that are free from material misstatement, whether due to fraud or error. non-financial information allows for different, but acceptable, measures and measurement techniques and can affect comparability between entities. Our Independence and Quality Control We have complied with the independence and other ethical requirement of the Code of Ethics for Conclusion professional Accountants issued by the International Ethics Standards Board for Accountants, which is Social Responsibility Based on the procedures we have performed and the evidence we have obtained, nothing has come founded on fundamental principles of integrity, objectivity, professional competence and due care, to our attention that causes us to believe that the selected key data in the 2015 CSR Report are not confidentiality and professional behavior. prepared and presented in accordance with the Applicable Criteria. The firm applies International Standard on Quality Control 1 and accordingly maintains a comprehen- sive system of quality control including documented policies and procedures regarding compliance Usage Limitation with ethical requirements, professional standards and applicable legal and regulatory requirements. Our report has been prepared for and only for BoCom’s Board of Directors, for no other purposes. We do not assume responsibility towards or accept liability to any other person for the contents of this Practitioner’s Responsibilities report. Our responsibility is to express a limited assurance conclusion on the selected key data in the 2015 CSR Report based on the procedures we have performed. We conducted our assurance engagement in accordance with the International Standard on Assur- ance Engagements 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Histori- cal Financial Information. That standard requires that we plan and perform this engagement to obtain PricewaterhouseCoopers Zhong Tian LLP limited assurance. Vision of the Future Shanghai, China The procedures performed in a limited assurance engagement vary in nature and timing form, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance March 29, 2016

71-72 Strategy and Profile

GRI Index Level of No Description Section This report is compiled in accordance with the Sustainability Reporting Guidelines (Version 4.0) (“G4” Disclosure for short) of the Global Reporting Initiative (GRI) and its Financial Services Sector Supplement. It 47 Frequency of the highest governance body’s review of economic, environmental and social impacts, risks, and opportunities Full Managing Responsibility The highest committee or position that formally reviews and approves the organization’s sustainability report and ensures that all 48 Full Managing Responsibility covers 99 G4 indicators, including 60 full disclosures and 39 partial disclosures. The bank will keep material Aspects are covered improving its information gathering system so that more indicators can be included in future reports. 49 The process for communicating critical concerns to the highest governance body Full Managing Responsibility Nature and total number of critical concerns that were communicated to the highest governance body and the mechanism(s) used to 50 Full Managing Responsibility Economic Responsibility Governance address and resolve them Level of No Description Section a. Remuneration policies for the highest governance body and senior executives Disclosure Managing Responsibility; 51 b. How performance criteria in the remuneration policy relate to the highest governance body’s and senior executives’ economic, Partial Employee Care Statement from the most senior decision-maker of the organization about the relevance of sustainability to the organization and the Message from the Chairman; environmental and social objectives 1 Full Strategy organization’s strategy for addressing sustainability Report from the President The process for determining remuneration. Whether remuneration consultants are involved in determining remuneration and whether and Analysis Message from the Chairman; 52 Partial Managing Responsibility Description of key impacts, risks and opportunities they are independent of management. 2 Full Report from the President 53 How stakeholders’ views are sought and taken into account regarding remuneration Partial Managing Responsibility 3 Name of the organization Full Company Profile Corporate Culture; 4 Primary brands, products, and services Full Company Profile 56 The organization’s values, principles, standards and norms of behavior such as codes of conduct and codes of ethics Full Message from the Chairman; Company Profile; Ethnics Report from the President 5 Location of the organization’s headquarters Full About This Report and Internal and external mechanisms for seeking advice on ethical and lawful behavior, and matters related to organizational integrity, such 57 Partial Managing Responsibility Number of countries where the organization operates, and names of countries where either the organization has significant operations Integrity as helplines or advice lines 6 Full Company Profile or that are specifically relevant to the sustainability topics covered in the report Internal and external mechanisms for reporting concerns about unethical or unlawful behavior, and matters related to organizational 58 Partial Managing Responsibility 7 Nature of ownership and legal form Full Company Profile integrity, such as escalation through line management, whistleblowing mechanisms or hotlines 8 Markets served Full Company Profile Key Performance; Managing Responsibility; Scale of the organization Company Profile 9 Full EC1 Direct economic value generated and distributed Partial Economic Responsibility; a. Total number of employees by employment contract and gender Environmental Responsibility; Organizational b. Total number of permanent employees by employment type and gender Social Responsibility Profile c. Total workforce by employees and supervised workers and by gender Key Performance; Message from the Chairman; d. Total workforce by region and gender EC2 Financial implications and other risks and opportunities for the organization’s activities due to climate change Full 10 Partial Employee Care Report from the President e. Whether a substantial portion of the organization’s work is performed by workers who are legally recognized as self-employed, or by individuals other than employees or supervised workers Economic EC3 Coverage of the organization’s defined benefit plan obligations Full Employee Care f. Significant variations in employment numbers

EC6 Proportion of senior management hired from the local community at significant locations of operation Partial Employee Care Environmental Responsibility 11 Percentage of total employees covered by collective bargaining agreements Full Employee Care EC7 Development and impact of infrastructure investment and services supported Full Economic Responsibility 12 Description of the organization’s supply chain Partial Green Operations Key Performance; Company Profile; Economic Responsibility; 13 Significant changes during the reporting period regarding the organization’s size, structure, ownership, or its supply chain Full EC8 Significant indirect economic impacts, including the extent of impacts Partial Green Operations Environmental Responsibility; Social Responsibility 14 Whether and how the precautionary approach or principle is addressed by the organization Full Managing Responsibility EN1 Materials used by weight or volume Partial Green Operations 16 Memberships of associations (such as industry associations) and national or international advocacy organizations Partial Customer Services Percentage of materials used that are recycled input materials a. List all entities included in the organization’s consolidated financial statements or equivalent documents; b. Report whether any entity Managing Responsibility; EN2 Partial Green Operations 17 Full included in the organization’s consolidated financial statements or equivalent documents is not covered by the report About This Report EN3 Energy consumption within the organization Partial Key Performance; Green Operations a. Explain the process for defining the report content and the aspect boundaries; b. Explain how the organization has implemented the Managing Responsibility; EN4 Energy consumption outside the organization Partial Green Operations 18 Reporting Principles for Defining Report Content Full About This Report Identified Material EN5 Energy intensity Partial Green Operations Managing Responsibility; Aspects and List all the material Aspects identified in process for defining report content 19 Full About This Report EN6 Reduction of energy consumption Partial Green Operations; Green Services Boundaries Managing Responsibility; EN7 Reductions in energy requirements of products and services Partial Green Operations; Green Services 20 For each material Aspect, report the Aspect Boundary within the organization Full About This Report; GRI Index EN8 Total water withdrawal by source Partial Key Performance; Green Operations Managing Responsibility; For each material Aspect, report the Aspect Boundary outside the organization EN10 Percentage and total volume of water recycled and reused Partial Green Operations 21 Full About This Report; GRI Index EN15 Direct greenhouse gas emissions (Scope 1) Partial Key Performance; Green Operations 24 List of stakeholder groups engaged by the organization Full Managing Responsibility Environmental EN16 Energy indirect greenhouse gas emissions (Scope 2) Partial Key Performance; Green Operations 25 Basis for the identification and selections of stakeholders with whom to engage Full Managing Responsibility Stakeholder EN17 Other indirect greenhouse gas emissions (Scope 3) Partial Green Credit; Green Services The organization’s approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and Managing Responsibility Engagement 26 an indication of whether any of the engagement was undertaken specifically as part of the report preparation process Full EN18 Greenhouse gas emissions intensity Partial Green Services; Green Operations Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those Green Credit; Green Services; Managing Responsibility EN19 Reduction of greenhouse gas emissions Full 27 key topics and concerns, including through its reporting. Report the stakeholder groups that raised each of the key topics and concerns. Full Green Operations

28 Reporting period for information provided Full About This Report EN27 Extent of impact mitigation of environmental impacts of products and services Full Green Services Date of most recent previous report About This Report EN29 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations Full Green Credit

29 Full Social Responsibility Reporting cycle About This Report Significant environmental impacts of transporting products and other goods and materials for the organization’s operations, and 30 Full EN30 Partial Green Services transporting members of the workforce Report 31 Contact point for questions regarding the report or its contents Full About This Report EN31 Total environmental protection expenditures and investments by type Full Environmental Responsibility Profile a. Report the ‘in accordance’ option the organization has chosen b. Report the GRI Content Index for the chosen option EN32 Percentage of new suppliers that were screened using environmental criteria Partial Green Operations About This Report 32 c. Report the reference to the External Assurance Report, if the report has been externally assured. GRI recommends the use of Full EN33 Significant actual and potential negative environmental impacts in the supply chain and actions taken Partial Green Operations external assurance but it is not a requirement to be ‘in accordance’ with the Guidelines. LA1 Total number and rates of new employee hires and employee turnover by age group, gender and region Partial Employee Care 33 The organization’s policy and current practice with regard to seeking external assurance for the report Full Statement of Assurance LA2 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operation Partial Employee Care 34 Governance structure of the organization, including committees of the highest governance body Full Managing Responsibility LA3 Return to work and retention rates after parental leave, by gender Full Employee Care The process for delegating authority for economic, environmental and social topics from the highest governance body to senior 35 Partial Managing Responsibility executives and other employees LA4 Minimum notice periods regarding operational changes, including whether these are specified in collective agreements Full Employee Care Whether the organization has appointed an executive-level position or positions with responsibility for economic, environmental and LA8 Health and safety topics covered in formal agreements with trade unions Partial Employee Care Managing Responsibility 36 social topics, and whether post holders report directly to the highest governance body Partial LA9 Average hours of training per year per employee by gender, and by employee category Full Employee Care Managing Responsibility; 37 Processes for consultation between stakeholders and the highest governance body on economic, environmental and social topics Full Programs for skills management and lifelong learning that support the continued employability of employees and assist them in About This Report LA10 Full Employee Care managing career endings 38 Composition of the highest governance body and its committees Full Managing Responsibility L A 11 Percentage of employees receiving regular performance and career development reviews, by gender and by employee category Full Employee Care 39 Whether the Chair of the highest governance body is also an executive officer Full Managing Responsibility Social Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority Employee Care; LA12 Full Nomination and selection processes for the highest governance body and its committees, and the criteria used for nominating and group membership, and other indicators of diversity Managing Responsibility 40 Managing Responsibility selecting highest governance body members Full LA13 Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation Partial Employee Care Processes for the highest governance body to ensure conflicts of interest are avoided and managed. Whether conflicts of interest are Governance 41 Managing Responsibility disclosed to stakeholders. Full LA16 Number of grievances about labor practices filed, addressed, and resolved through formal grievance mechanisms Full Employee Care The highest governance body’s and senior executives’ roles in the development, approval, and updating of the organization’s purpose, SO1 Percentage of operations with implemented local community engagement, impact assessments, and development programs Full Committed to Charity 42 Full Managing Responsibility value or mission statements, strategies, policies, and goals related to economic, environmental and social impacts SO3 Total number and percentage of operations assessed for risks related to corruption and the significant risks identified Partial Customer Services

43 Measures taken to develop and enhance the highest governance body’s collective knowledge of economic, environmental and social topics Full Managing Responsibility SO4 Communication and training on anti-corruption policies and procedures Partial Customer Services Vision of the Future a. Processes for evaluation of the highest governance body’s performance with respect to governance of economic, environmental and SO5 Confirmed incidents of corruption and actions taken Partial Customer Services social topics. Whether such evaluation is independent or not, and its frequency. Whether such evaluation is a self-assessment. Managing Responsibility 44 b. Actions taken in response to evaluation of the highest governance body’s performance with respect to governance of economic, Full SO6 Total value of political contributions by country and recipient/beneficiary Partial Committed to Charity environmental and social topics, including, as a minimum, changes in membership and organizational practice S O 11 Number of grievances about impacts on society filed, addressed, and resolved through formal grievance mechanisms Partial Customer Services a. The highest governance body’s role in the identification and management of economic, environmental and social impacts, risks, and opportunities Type of product and service information required by the organization’s procedures for product and service information and labeling, and PR3 Full Customer Services 45 b. Whether stakeholder consultation is used to support the highest governance body’s identification and management of economic, Full Managing Responsibility percentage of significant product and service categories subject to such information requirements environmental and social impacts, risks, and opportunities Product Responsibility PR5 Results of surveys measuring customer satisfaction Full Customer Services The highest governance body’s role in reviewing the effectiveness of the organization’s risk management processes for economic, Managing Responsibility 46 environmental and social topics Full PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data Partial Customer Services

73-74 Strategy and Profile

ESG Index Aspect B2 Health and Safety

relating to providing a safe working environment and protecting employees from occupational hazards (a) the policies; and General Disclosure Employee Care / (b) compliance with relevant laws and regulations that have a significant impact on the issuer Information on:

Number and rate of work-related fatalities / Economic Responsibility B2.1 N/A. To be disclosed in future reports This report is also prepared based on the latest Environmental, Social and Governance (ESG) Report- B2.2 Lost days due to work injury / ing Guide of Hong Kong Exchanges and Clearing Limited (HKEx). It covers general exposures in 11 B2.3 Description of occupational health and safety measures adopted, how they are implemented and monitored Employee Care / aspects and 19 key performance indicators (KPIs) of the ESG Reporting Guide. Aspect B3 Development and Training

General Disclosure Policies on improving employees’ knowledge and skills for discharging duties at work. Description of training activities. Employee Care / Subject Areas, Aspects, General Disclosures and KPIs Index Note To be disclosed in B3.1 The percentage of employees trained by gender and employee category (e.g. senior management, middle management) / future reports A. Environmental B3.2 The average training hours completed per employee by gender and employee category Employee Care /

Aspect A1 Emissions Aspect B4 Labor Standards

relating to air and greenhouse gas emissions, discharges into water and land, and generation of hazardous and non-hazardous waste relating to preventing child and forced labor Environmental General Disclosure (a) the policies; and / (a) the policies; and Responsibility General Disclosure Employee Care / (b) compliance with relevant laws and regulations that have a significant impact on the issuer (b) compliance with relevant laws and regulations that have a significant impact on the issuer Information on: Information on: Environmental Responsibility A1.1 The types of emissions and respective emissions data / Not applicable B4.1 Description of measures to revivew employment practices to avoid child and forced labor Employee Care /

A1.2 Greenhouse gas emissions in total (in tonnes) and, where appropriate, intensity (e.g. per unit of production volume, per facility) Green Operations / B4.2 Description of steps taken to eliminate such practices when discovered / Not applicable

A1.3 Total hazardous waste produced (in tonnes) and, where appropriate, intensity (e.g. per unit of production volume, per facility) / N/A. To be disclosed Aspect B5 Supply Chain Management in future reports A1.4 Total non-hazardous waste produced (in tonnes) and, where appropriate, intensity (e.g. per unit of production volume, per facility) / General Disclosure Policies on managing environmental and social risks of the supply chain Green Operations /

To be disclosed in Number of suppliers by geographical region / Green Credit; B5.1 future reports Description of measures to mitigate emissions and results achieved Green Services; / A1.5 Description of practices relating to engaging suppliers, number of suppliers where the practices are being implemented, how they Green Operations Green Operations B5.2 are implemented and monitored /

Environmental Aspect B6 Product Responsibility Description of how hazardous and non-hazardous wastes are handled, reduction initiatives and results achieved / A1.6 Responsibility

relating to health and safety, advertising, labelling and privacy matters relating to products and services provided and methods of Aspect A2 Use of Resources redress Economic General Disclosure (a) the policies; and / Environmental Responsibility General Disclosure Policies on the efficient use of resources, including energy, water and other raw materials / (b) compliance with relevant laws and regulations that have a significant impact on the issuer Responsibility Information on: Direct and/or indirect energy consumption by type (e.g. electricity, gas or oil) in total (kWh in ‘000s) and intensity (e.g. per unit of Key Performance / A2.1 production volume, per facility) Green Operations B6.1 Percentage of total products sold or shipped subject to recalls for safety and health reasons / Not applicable Key Performance A2.2 Water consumption in total and intensity (e.g. per unit of production volume, per facility) / Green Operations B6.2 Number of products and service related complaints received and how they are dealt with Customer Services / Environmental A2.3 Description of energy use efficiency initiatives and results achieved / Managing Social Responsibility Responsibility Descriptin of practices relating to observing and protecting intellectual property rights / B6.3 Responsibility A2.4 Description of whether there is any issue in sourcing water that is fit for purpose, water efficiency initiatives and results achieved Green Operations / B6.4 Description of quality assurance process and recall procedures / Not applicable A2.5 Total packaging material used for finished products (in tonnes) and, if applicable, with reference to per unit produced / Not applicable B6.5 Description of consumer data protection and privacy policies, how they are implemented and monitored Customer Services / Aspect A3 The Environment and Natural Resources Aspect B7 Anti-corruption Environmental General Disclosure Policies on minimizing the issuer’s significant impact on the environment and natural resources / Responsibility relating to bribery, extortion, fraud and money laundering Environmental / (a) the policies; and Managing A3.1 Description of the significant impacts of activities on the environment and natural resources and the actions taken to manage them Responsibility General Disclosure / (b) compliance with relevant laws and regulations that have a significant impact on the issuer Responsibility Information on: B. Social

Number of concluded legal cases regarding corrupt practices brought against the issuer or its employees during the reporting B7.1 / Not applicable Aspect B1 Employment period and the outcomes of the cases B7.2 Description of preventive measures and whistle-blowing procedures, how they are implemented and monitored Customer Services / relating to compensation and dismissal, recruitment and promotion, working hours, rest periods, equal opportunity, diversity, anti-discrimination, and other benefits and welfare General Disclosure (a) the policies; and Employee Care / Aspect B8 Community Investment (b) compliance with relevant laws and regulations that have a significant impact on the issuer Policies on community engagement to understand the needs of the communities where the issuer operates and to ensure its Committed Information on: General Disclosure / activities take into consideration the communities’ interests to Charity

Committed Vision of the Future Employee Care / Focus areas of contribution (e.g. education, environmental concerns, labor needs, health, culture, sport) / B1.1 Total workforce by gender, employment type, age group and geographical region B8.1 to Charity To be disclosed in Committed / Resources contributed (e.g. money or time) to the focus area / B1.2 Employee turnover rate by gender, age group and geographical region future reports B8.2 to Charity

75-76 About This Report

Report coverage This report includes the Bank of Communications Co., Ltd. and its branches and subsidiaries in and outside the Chinese mainland. This report covers the period of January 1 to December 31, 2015. The CSR report is published annually and the BoCom 2014 CSR Report was published on March 26, 2015.

References This report is written in accordance with the China Banking Regulatory Commission’s “Opinions on Promoting the Social Responsibility of Financial Institutions”, the China Banking Association’s “Social Responsibility Guidelines for Financial Institutions in China’s Banking Sector”, the Shanghai Stock Exchange’s “Notice on Promoting Social Responsibility of Listed Companies and Publishing the Environmental Information Disclosure Guidelines for Companies Listed on the Shanghai Stock Exchange”, the “Environmental, Social and Governance Reporting Guide” of Hong Kong Exchanges and Clearing Limited (HKEx), and the “Sustainability Reporting Guidelines” of the Global Reporting Initiative (GRI).

Reporting process This preparation process of this report goes through seven stages, based on the bank’s CSR practice – project approval, information gathering, drafting and revision, review by senior management, Social Responsibility Committee review, Board of Directors review, and public publication. The bank communicated frequently with stakeholders, during some of the stages, such as project approval and drafting and revision, to discuss the report’s structure and contents.

Assurance The bank asked PricewaterhouseCoopers Zhong Tian LLP for a third party confirmation of this report, in line with the “International Standard on Assurance Engagements (ISAE) 3000: Other Than Audits or Reviews of Historical Financial Information”, and an independent statement of assurance.

Report data Part of the report’s financial data are from the bank’s 2015 financial statements, with PricewaterhouseCoopers Zhong Tian LLP acting as an independent auditor. Other data are mostly about 2015, while some are from previous years. All monetary figures in the report are given in yuan, unless otherwise stated.

Report availability This report is available in both hard and electronic copies. Hard copies are printed on environmentally friendly paper and electronic copies can be viewed on the bank’s official website at www.bankcomm.com. The report comes in both Chinese and English versions. In the case of discrepancies, the Chinese version takes precedence.

CONTACT INFORMATION

Corporate Culture Department, Bank of Communications Co., Ltd. Address: 188, Yinchengzhong Rd, Shanghai, China Postcode: 200120 Tel: 8621-58781234-3214 Email: [email protected]