The financial industry improves ESG performance through green finance, inclusive finance and more perfect internal governance mechanism.
Recently, Morgan Stanley Capital International (MSCI), the world's largest index company, announced the results of ESG rating in 2023, upgrading Industrial Bank (601166: SH) from A-level to AA-level, which is the highest level of domestic banking at present. As a result, Industrial Bank has become the first listed bank in China to obtain the ESG AA level in MSCI, and it is also the only bank that has obtained the highest rating in the domestic banking industry for five consecutive years.
As a pioneer in the field of ESG in China, Industrial Bank has strengthened the construction of ESG governance structure and management system and explored the win-win development of bank's economic benefits, social benefits and environmental benefits, established a pattern of ESG practice that takes into account international standards and China characteristics..
In terms of environment (E), as the earliest commercial bank in China to explore green finance, Industrial Bank has integrated the strategy of developing green finance and serving "double carbon" with the sustainable development of the bank, cooperated with the service of "reducing pollution, reducing carbon, expanding green and growing", actively promoted the green and low-carbon transformation of the economy and society, and became a typical sample of serving peak carbon dioxide emissions's carbon neutrality.
By the end of September 2023, the bank's green financing balance was CNY 1.86 trillion, an increase of CNY 250.1 billion compared with the end of last year, of which the green loan balance reached CNY 772.4 billion, a remarkable increase of CNY 135.3 billion compared with the end of last year, and the new amount accounted for more than 30% of the new enterprise loans; The scale of green financial financing in the field of "carbon reduction" was CNY 1.04 trillion, accounting for 7% higher than that at the end of 2022 surging to 56%.
In the social (S) aspect, Industrial Bank continues to deepen the structural reform of the financial supply side, actively expands the connotation of the business model of "integrating righteousness with benefit", guides more financial resources to promote scientific and technological innovation, advanced manufacturing, green development and small and medium-sized enterprises, and at the same time, gives full play to the advantages of financial technology, explores new modes of digital financial services, and promotes financial services from cities to vast rural areas, from large and medium-sized enterprises to small and medium-sized enterprises. By the end of September 2023, the balance of small and micro loans of Industrial Bank was nearly CNY 500 billion, the balance of loans of science and technology enterprises exceeded CNY 430 billion, and the balance of agricultural loans exceeded CNY 640 billion.
In terms of governance (G), Industrial Bank took the lead in proposing and establishing the corporate governance concept of sustainable development in the industry, followed the development trend of ESG, continuously optimized the top-level design, incorporated ESG strategic planning into the Group's five-year development plan, and comprehensively promoted the construction of ESG management system. In 2022, it officially renamed the "Strategy Committee" of the board of directors as "Strategy and ESG Committee", established an industry-leading ESG management decision-making mechanism, and guided and encouraged the management to actively explore multi-channels.
In addition, recently, at the Beijing International Sustainability Conference hosted by the Beijing Office of the International Financial Reporting Standards Foundation (IFRS), Industrial Bank took the lead in learning and integrating the framework and requirements of International Sustainable Disclosure Standards Standards Board (ISSB), and was awarded the first batch of "ISSB Learning Partner" certificates from the ISSB in China, and promoted the efficient implementation of sustainable standards on a global scale with its practice.
As of press time, Industrial Bank closed at CNY 14.18 apiece, with a market capitalization of CNY 294.6 billion.