Our Dedication to the Chinese Dream Agricultural Bank of China Limited Corporate Social Responsibility Report 2013 Introduction Only wealth that is rich in love is wealth in the true sense; only an enterprise that actively fulfills its social responsibility is an enterprise with true competitiveness and vitality. —Excerpt from Promoting Enterprise Social Responsibility by Xi Jinping on January 15, 2007 Contents Introduction 028 Responsibility Practices and 124 Editors’ Note Performance 002 Messages from the 126 Appendixes 030 Serving “Sannong” to Narrow the Urban-rural Gap Senior Management 128 Honors and Awards 046 Improving People’s Livelihood to Become a Bank for 002 Message from the Chairman the Common People 131 Independent Assurance Report 004 Message from the President 056 Alleviating Poverty to Become a Bank with the Best Coverage 135 GRI4.0 Index of GRI 006 Message from the Chairman of Indicators the Board of Supervisors 064 Supporting Environmental Protection to Become a Leading Bank in Ecological Civilization 141 Reader Feedback Form 008 About us 070 Supporting Businesses to Boost Economic Transition 142 Notes on the Report and Upgrade the Industrial Structure 010 Company Profile 088 Optimizing Services with Innovations to Meet the Diversified Needs of Customers 012 Key Performance 100 Public Welfare and Charity: Contributing to the All- 016 Map of Responsibility round Progress of the Society 018 Responsibility Concept 106 Responsibility Capability and and Management Commitment 020 Enhancing the Participation of 108 Spreading Financial Knowledge Stakeholders 110 Promoting the Development of Employees 022 Clarifying the Key Points 118 Enhancing Operation Efficiency 024 Building the Work System 120 Ensuring Asset Safety 002 Agricultural Bank of China Social Responsibility Report 2013 Messages from the Senior Management 003 Message from the Chairman The Chinese dream about the great rejuvenation of the Chinese nation embodies the dreams and aspirations of millions of Chinese people. The Agricultural Bank of China (hereinafter referred to as "ABC" or the Becoming a bank "Bank") holds the dream of “resolutely upholding the ideals and belief in socialism with Chinese with a high sense characteristics and building a first-rate commercial bank”. Such dream embodies the efforts and pursuit of responsibility of everyone at ABC. As it continues to grow and forges ahead, the Bank must seek a unity and balance between the performance of social responsibility and the pursuit of commercial interests. Such effort is an inherent requirement and inevitable choice for ABC to fulfil the Chinese dream in the Bank. Only an enterprise that actively fulfills its social responsibility development. We need to give an even higher priority to the is an enterprise of true competitiveness and vitality. As the well-being of the general public, and gain the understanding, backbone and pillar of the rural financial system of China, ABC support and respect of customers and the public in fulfilling our shoulders the important task of boosting the development of corporate social responsibility (“CSR”). “Sannong” (meaning agriculture, rural areas and farmers) and urban-rural integration. Over the years, ABC has been seeking a Only wealth that is rich in love is wealth in the true sense. The balance between the maximization of shareholders’ value and traditional Chinese culture has always revered benevolence, providing inclusive services for “Sannong”, which has become a solidarity, generosity and ethics, and it is regarded as a virtue unique competitiveness of ABC. to do good and help the poor. In its development, ABC should focus on both economic benefits and social benefits, and on Only an enterprise that fulfills its social responsibility is a truly the accumulation of both wealth and ethics, to build ABC into respected enterprise. The market positioning of “orientation a successful centuries-old company. To be rich in love requires toward Sannong” is a unique characteristic of ABC. Widespread a clever methodology. This is what the core meaning of CSR network, wide service coverage, large business volume, about. We will pursue this unfalteringly and determinedly, and diversified financial needs and high expectations from fulfill the due responsibility of the Bank in the great journey of customers are the realities that confront ABC. A subject that fulfilling the Chinese dream. ABC has always held as a point of focus and exploration is how to make ethical profits and provide better services for the economy, society and customers, while seeking its own stable Jiang Chaoliang, Chairman 004 Agricultural Bank of China Social Responsibility Report 2013 Messages from the Senior Management 005 Message from the President As a large state-controlled financial enterprise, ABC Successfully needs to fulfill its social responsibility. But this is by no means as simple as donating some money out of its integrating social annual profits to hold some charity activities. Instead, we must make a success of the in-depth integration responsibility with of the Bank's development with the socio-economic progress from the perspective of strategy, business and business the deepest of our thoughts. Serving “Sannong” is ABC’s most important social responsibility. green environmental protection. Meanwhile, in addition to ABC has more than 10,000 county-level outlets and 220,000 the provision of personalized financial products for customers employees working in rural areas and remote areas. Over the and the enhancement of the service experience, it is even years, ABC has continuously explored how to better serve more important for us to bear our responsibility and provide “Sannong” and how to break the last barrier that prevents basic financial services for the farmers and herdsmen in former farmers from enjoying basic financial services. Now we have revolutionary base areas, areas inhabited by minorities, remote found the answer. It takes a combined approach composed areas, poverty-stricken areas, and alpine and cold areas. of systems, mechanisms and products, including establishing the “Sannong Business Unit”, implementing the “Kins Hui Nong ABC strives to fulfill its social responsibility while controlling Tong Project” and issuing the “Kins Hui Nong Cards”. risks and maintaining financial security.The financial industry is an industry of high risks. The successful management of wealth ABC strives to fulfill its social responsibility while developing for the State and the common people is the most fundamental business and serving customers. The allocation of resources by social responsibility we have. We need to further intensify our a commercial bank is to a great extent a process of screening risk awareness, establish the comprehensive risk management and guiding various economic subjects and economic activities. system and stick to the risk baseline, to ensure the value In the process, we have undertaken the responsibilities of preservation and increase for the State and the people, and implementing the State economic policies, financial policies become a bank with which the people can rest easy. and monetary policies to support the real economy, promote industrial restructuring, improve people’s lives and advocate Zhang Yun, President 006 Agricultural Bank of China Social Responsibility Report 2013 Messages from the Senior Management 007 Message from the Chairman of the Board of Supervisors Culture is the internal force whereby the principal business of an enterprise remains ever vigorous, Social responsibility while social responsibility is the essence of corporate culture. An enterprise without culture cannot have a is the essence of keen sense of social responsibility. Thus, responsibility reflects the spirit of ABC, highlights its commitment corporate culture and is the source of its strength and wealth. Social responsibility has fostered the spirit of ABC. For a long its responsibility; it enhances business development, product time, ABC has fulfilled its responsibility and mission, as mirrored competitiveness and value creation via making pioneering by the ABC people in places where the conditions are hard, such efforts and contribution; and it intensifies the capability as the borderlines of the motherland, regions of high elevation, of building corporate image via enhanced exchanges and forbidding areas for human life. In regions of high elevation, communications. ABC people “lack oxygen, but do not lack spirit”; in places of hard conditions, they “face hard working conditions, but fear Social responsibility has accumulated a profound culture. An no hardship”; in developed regions, they “exert pressure on enterprise without culture may earn some money in the short themselves and try to lead courageously” and would never be term, but an enterprise with culture can succeed in the long content with the second place if they can win the first place; in term. Over the years, ABC has accumulated a profound corporate underdeveloped regions, they make every effort to strive for the culture during fulfilling its social responsibility, a culture possible best. Such spirit has become the soul of the good faith, throughout the Bank and in the hearts of all ABC people to better integrity and the steady development of ABC. serve "Sannong", a culture to provide financial support to the border areas, a culture to better serve the general public and a Social responsibility has forged the strength of ABC. ABC culture to promote renewable and sustainable green services. uses