Bank of Beijing
Beijing Financial Street, prop 17
Xicheng District, Beijing, 100033
- Worlds Best Banks 2020
- #282 Global 2000 2020
- #590 Sales in Global 2000
- #249 Profit in Global 2000
- #93 Assets in Global 2000
- #813 Market Value in Global 2000
CHIEF SUSTAINABILITY OFFICER
No CSO or equivalent found.
- Biggest Issuer – Bank: Green Bonds Award Winner 2018
- Chairman Yan Bingzhu was awarded “2012 Top10 Financial Persons in China”
- Annual Outstanding Board of Directors
- Best Financial Enterprise Image Award 2012
- Annual Top100 Listed Companies on Market Value Management in China
- Chairman Yan Bingzhu was titled “2012 Top10 Innovative Leaders in Chinese Companies”
- Selected as Top 500 most valuable brands in China, with a brand value of 10.64 billion Yuan
- # 132 in Top1000 World Banks in terms of tier 1 capital
2012 Best Risk Management over Investor Relationship Award
- 2012 Most Innovative Financial Service Brand Billboard
- Top10 Financial Products for Serving Micro and Agriculture-related Enterprises
- Golden Tripod Award – 2012 Annual Potential Private Banking Award and Annual New Prominent Private Banking Award
- Annual Best Small and Medium-sized Bank 2012 Chinese Banking Sector Annual Good News Award
Report created by Ellie Weiss
Bank of Beijing
Bank of Beijing is an urban commercial bank based in Beijing, China. Incorporated in 1996, the bank does work in corporate banking, retail banking, financial market business, and direct banking business.
The bank’s subsidiaries include BOB-Cardi Life Insurance Co., Ltd, Beijing Yanqing Village Bank Co., Ltd, Bank of Beijing Co., Ltd. and Asset Management Arm among others.
At the end of 2017, the bank consisted of 561 branches and representative offices. More than half of their branches are located outside Beijing, but most revenue comes from the capital of China. In 2017 the brand revenue was estimated to be CNY 50 billion or $7.68 billion.
The scope of Bank of Beijing’s work includes, but is not limited to, issuing loans, handling domestic settlements, handling discounted bills, issuing financial bonds, acting as a distributor, agent, and underwriter of government bonds, and buying and selling government bonds.
Company Sustainability Activity
Bank of Beijing has not released any annual or sustainability-based reports since 2012. Hence, the information that this report is based on is out of date. Most ratings and evaluations are based on information prior to 2013.
The bank received an award for the biggest issuer of green bonds in 2018 — raising a total of RMB 30 million ($4.8 billion) from two RMB 15 billion in green bonds. The first bond issued by the Bank of Beijing was the largest green transaction from a Chinese issuer at the time. Proceeds went to finance three green projects: efficiency upgrading and reconstruction of a sewage plant, construction of a municipal solid waste incineration power plant, and the construction of a wind farm. The proceeds and projects are said to have made a significant contribution to the overall growth of the Chinese bond market and economy.
Bank of Beijing formulated eleven Environmental and Safety (E&S) risk management policies targeting environmental protection and energy saving. The bank adheres to the “environmental protection veto” principle which means they do not support any high-polluting, high-energy-consuming, high-emission enterprises and projects. They also will not partner with companies which present a high risk of causing water pollution, or heavy metal and exhaust emissions.
The bank has a team of ten people responsible for examining E&S risks. They also employ third parties to provide the information needed for E&S risk due diligence and have strict auditing and review systems for their clients and projects.
Bank of Beijing signed with the ESCO Committee of the China Energy Conservation Association (EMCA) to jointly build an energy conservation financial service platform and promote green finance innovation.
The bank also strengthens credit support for projects that will help save energy and reduce emissions by financing Energy Management Corporations (EMCO) projects. These projects promote the construction of key energy-saving projects, as well as the development of a circular economy, the proper disposal of polluted water and garbage, and the control of water pollution in key river basins.
The bank has drafted Credit Management Procedures for Project Construction Land Use, The Social and Environmental Protection Management Rules, The Management Rules for “China Energy Saving and Emission Reduction Financing Projects (CHUEE)”, and the Energy Saving Credit Operation Procedures.
The bank has a green credit card that offers products specially developed for the green credit market and for energy-saving industries. They launched an “energy conservation credit system” for companies providing energy conservation services.
Bank of Beijing supported a project to increase the energy efficiency of Tsinghua University’s heating system. It is estimated to save 21-29% of energy and 30-40% of electricity — greatly reducing pollutant discharges and energy consumption.
- The biggest bank issuer of green bonds and proceeds supported three green projects
- They have eleven E&S risk management policies that adhere to the “environmental protection veto” principle with strict auditing and review systems
- A group of ten are responsible for examining their E&S risks, and they employ third parties to provide the information needed for E&S risk due diligence
- Support Energy Management Corporation projects that promote sustainable development
- The Small Giant brand has a green credit card for energy-saving industries
- Signed with the ESCO Committee of the China Energy Conservation Association to build an energy conservation financial service platform together
- Launched an “energy conservation credit” system for companies with energy conservation services
- Assigned energy conservation targets for specific units with a reward system to encourage the development of energy conservation products
- Supported a project to improve Tsinghua University’s energy efficiency
The company does not disclose this information.
- Helped Tsinghua University save an estimated 21-29% of their energy use and reduce their electricity consumption by 30-40%; also greatly reducing pollutant discharges
- Provided the funds to upgrade the efficiency of and reconstruct a sewage plant
- Sponsored the construction of a municipal solid waste incineration power plant as well as a wind farm
- Implementing and updating policies and procedures to have more environmentally-friendly business practices
Bank of Beijing does not have any sustainability related certificates.
UN Sustainable Development Goals
UN SDGs Compliance
Bank of Beijing does not clearly align with specific Sustainable Development Goals. Therefore, the Impakter Index team aligns current company-wide sustainability initiatives with the UN Sustainable Development Goals in the following section.
Although not explicitly stated, the Bank of Beijing has attempted to be compliant with SDGs.
SDG 6: Clean Water and Sanitation
- Some proceeds from their green bond sales have gone to help the efficient upgrading and reconstruction of a sewage plant
- Supports Energy Management Corporations projects that promote proper disposal of polluted water and controlling water pollution in key river basins
- They do not support or work with companies that have a high risk of causing water pollution
SDG 7: Affordable and Clean Energy
- Some proceeds from their green bond sales went to the construction of a municipal solid waste incineration power plant
- Some proceeds from their green bond sales went to the construction of a wind farm
SDG 8: Decent Work and Economic Growth
- Their green bond sales made a significant contribution to the overall growth of the Chinese bond market and economy
SDG 11: Sustainable Cities and Communities
- Their green credit brand, Small Giant, has products specifically designed for energy-saving industries
- Their “energy conservation credit” system for companies providing energy conservation services, promotes sustainable business practices in their community
SDG 12: Responsible Consumption and Production
- They were the biggest bank issuer of green bonds in 2018
- Drafted Credit Management Procedures for Project Construction Land Use, The Social and Environmental Protection Management Rules, The Management Rules for “China Energy Saving and Emission Reduction Financing Projects (CHUEE)”, and the Energy Saving Credit Operation Procedures
- They supported a project to increase the energy efficiency of Tsinghua University’s heating system to save energy and greatly reduce pollutant discharges
- Plans to provide a credit line of RMB 10 billion to the EMCA member companies, expected to save 5.6 million tons of standard coal and reduce 14 million tons of CO2 emissions every year
SDG 16: Peace, Justice and Strong Institutions
- Formulated 11 E&S risk management policies targeting Environmental Protection and Energy Savings
- They have 10 people responsible for examining E&S risks
- They have strict E&S risk management auditing and review systems for their clients and projects
- They assign energy conservation targets for specific units and give awards to encourage the development of energy conservation products
SDG 17: Partnerships for the Goals
- Signed with the ESCO Committee of the China Energy Conservation Association (EMCA) to jointly build an energy conservation financial service platform and promote green finance innovation
Bank of Beijing has strong E&S policies as well as review and auditing systems for them to make sure ESG due diligence is being conducted. The bank has also been commended for being the biggest issuer of green bonds in 2018; however, this is the only sustainability award they have received. The bank also has not made any sustainability-focused listings and has no sustainability certificates to prove the credibility of their actions.
Bank of Beijing does have many policies and actions that do align with many of the UN SDGs. With that said, their internal practices do not necessarily align with the SDGs, mostly due to the fact that they have not released a report since the SDGs have been created.
While they support the sustainability efforts of other organizations, they do not seem to make any significant efforts themselves. The bank also has no chief sustainability officer, and little reporting on any progress it has made, nor has it mentioned any targets for the future.
Their lack of reporting shows that they are not committed to transparency or sustainable practices. They have made little progress and consequently, few impactful practices.
Therefore, the company has been rated a D.
Analyst Outlook: Neutral
The Bank of Beijing has not explicitly mentioned any targets or goals to improve sustainability practices. Alarmingly, it has no recent ESG or Sustainability reports.
- Biggest bank issuer of green bonds in 2018
- Strong E&S policies and auditing practices with third-party reviews
- Supported sustainable projects with the Energy Management Corporation and Tsinghua University
- Has not released reports since 2012
- No chief sustainability officer or UN SDG alignment
- Little to no progress, targets, or goals for sustainability
- No certificates or sustainability-focused listings
- Limited sustainability-related awards