2014 Corporate Social Responsibility Report Introduction In 2014, "the new normal" characterized by the economic slow-down and restructuring has brought about new challenges and opportunities to the reform and development of the Agricultural Bank of China (“ABC”). As a large State-owned financial enterprise, ABC shoulders the responsibility and mission of serving the real economy, especially “Sannong” (agriculture, rural areas and farmers), playing a pillar role in the rural financial system of China. In terms of business orientation, we steadfastly adhere to the essence of serving the real economy and closely revolve around the orientation of serving “Sannong” to support the construction of new rural areas, the development of modern agriculture and farmers’ efforts to get rich, assist in energy saving, emission reduction, and improvement of people’s livelihood. In terms of internal management, we run the Bank according to law, operate in compliance with relevant rules and regulations, intensify total risk management, safeguard the legitimate rights and interests of consumers, integrate the idea of social responsibility into institutional development, and apply the tenet of social responsibility in our staff management processes. In terms of culture shaping, we strengthen the corporate culture of accountability, value the expectations and appeals of our stakeholders, and improve the image of ABC that features the courage to bear and fulfill responsibilities. Contents Messages from the Senior Responsibility Responsibility Management About us Management Practices Appendixes 02 Message from the Board 10 Company Profile 16 Idea of Responsibility 26 Serving “Sannong”: committed to becoming a responsible 140 Main Honors and Chairman bank that narrows urban-rural gap Awards 1 1 Scope of Business 17 Responsibility 04 Message from the President Management System 42 Supporting the real economy: Committed to becoming a 144 Independent 12 Distribution of Branch major bank boosting economic transformation and upgrading Assurance Report 06 Speech from the Chairman Organizations 19 Selected Key Topics of of the Board of Supervisors Social Responsibility 60 Poverty alleviation: To become an inclusive bank of the 148 GRI4.0 Index of DRI widest coverage Indicators 20 Participation of Stakeholders 68 Improving people’s livelihood: Committed to being a 155 Reader Feedback considerate bank of common people Form 80 Boosting environmental protection: Committed to 156 Notes on the Report becoming a leading bank in ecological civilization building 86 Optimizing services: Committed to becoming a bank that customers are satisfied with and trust 106 Taking delight in public welfare: Committed to becoming a harmonious bank promoting social progress 116 Helping employees succeed: Committed to becoming a happy bank with a dense atmosphere of home culture 2 Agricultural Bank of China 2014 Corporate Social Responsibility Report Messages from the Board Chairman 3 Messages New Normal, New from Responsibility the Board Chairman oriented poverty reduction. “Strong agriculture, and ecological civilization, promoting the integrated beautiful countryside, rich farmers” is a basic sign in development of economy, society and ecological the all-round construction of a moderately prosperous environment. society. We always regard serving “Sannong” as our eternal mission and greatest social responsibility and Caring for the growth of employees and At any time and in any place, all provide financial services for “Sannong” under a fostering a sense of belonging. Employees are enterprises built to last focus on burning sense of mission. In 2014, most of the deposits the power source for the sustainable development people’s livelihood. Bearing more absorbed by ABC at county level or below were used as of an enterprise and the foundation whereby the credit to support the development of the local economy enterprise bears more social responsibilities. We social responsibility has now become and communities; we provided great support to the deem each and every employee as the most precious the consensus of global governments, leading enterprises in agricultural industrialization capital and the care for them as the most direct social enterprises and the public. Only and new business entities, and supported the scale responsibility. We uphold the HR development strategy expansion of agriculture and high-standard farmland of “putting people first and developing the Bank by those enterprises that show care for improvement; and we made innovations in the form its talents” and the corporate culture highlighting the employees, serve customers, protect of guaranteed mortgage for the loans given to farmers care for employees, safeguard the legitimate rights environment, repay the society and to develop inclusive finance. We promoted diversified and interests of employees, intensify the vocational forms of credit for poverty alleviation in 14 national- education and training for them, build multiple create value can win social respect level contiguous poverty-alleviation development zones passages for career development, focus on humanistic and consolidate the foundation for and regions inhabited by ethnic groups; the balance care and the physical and mental health of employees, sustainable development. of such loans topped RMB 840 million yuan, reaching provide a platform for them to fully display their another all-time high. capability, and work hard to achieve concurrent value improvement for both the Company and its employees. Serving economic transition and boosting Active fulfillment of social responsibility is the main vein employment. We firmly adhere to the essence of Persisting in prudent operation to create of the corporate culture of ABC; Our CSR philosophy of serving the real economy and use all types of financial more value. Prudent operation is the cornerstone “giving priority to responsibility, benefiting the general instruments, including credit to serve the big picture for creating a lasting enterprise and the precondition public, taking the lead in fulfilling responsibilities, of stabilizing growth, promoting reform, restructuring, of continuous repayment for shareholders and the promoting the wellbeing of the society” is the marrow improving people’s livelihood and preventing risks. In society. Under the increasing pressure of an economic of the corporate culture of ABC; Taking root in and 2014, we continued to step up the credit support for slowdown, we continuously strengthen risk anticipation serving “Sannong” are the historical heritage of ABC infrastructures, such as water conservancy works and and judgment, focus on risk prevention, reinforce and the call of times; Loving the country and the Bank, railways, and the key projects for the construction of internal control and hold fast to the baseline of no dedication and professionalism have always been the affordable housing and rebuilding of shantytowns; major risks; further improve business processes, tone up self-expectation of ABC people; Prudent operation and increased credit supply to new growth engines, such product innovations, improve services, and constantly creating wealth are the indefatigable pursuit of ABC as education, medical care, healthcare and old age enhance the ability to create value. In 2014, ABC saw people. care; actively served the major national strategies, an increase of 12.1% in new loans, 11.6% in tax including the “Belt & Road” initiative, the coordinated payment and 8% in net profits from a year ago. Since the 18th National Congress of CPC, the CPC development of Beijing, Tianjin and Hebei, and the Central Committee headed by Xi Jinping as general expansion of the Yangtze River economic belt and In 2015, we will face even more complex international secretary has accurately grasped the trend, made the free trade zones. We paid more attention to and domestic economic environment, fiercer market overall planning, come up with the scientific judgment increasing the financial service for small and micro competition and faster financial innovations. Under the of the new normal in economic development, firmly enterprises, supporting start-up businesses and making correct leadership of the CPC Central Committee and stuck to the general keynote of making progress while innovations, providing more financial support for the State Council and under the care and support of ensuring stability and made the strategic deployment business-pioneering women, youngsters, unemployed shareholders and people from all walks of life, we will of “four overalls”. The new normal gestates the new people and the disabled, and actively creating more job be even more confident and place even more focus opportunities and new mission for the development of opportunities. on running the Bank according to law and in a strict ABC and, even more, implies the new responsibilities manner. The 500,000 employees of ABC, including of ABC. During the past year, while creating more Boosting green environmental protection 250,000 CPC members, will certainly write a new wealth for shareholders and the society, we were and the development of a beautiful China. chapter in the fulfillment of social responsibility and more concerned about supporting stable growth We are keenly aware of the significance of air, water take a major step toward the goal of becoming an and restructuring, promoting employment, making a and environment for a good life and deem green international first-class large-scale commercial bank. success of poverty