China Citic Bank

RATING

SECTOR

Banking

WEBSITE

CONTACT

Fuhua Mansion, Block C
No. 8 Chaoyangmen Beidajie, Dongcheng District
Beijing, 100027

Tel: +86 10 6555 8888
Fax: +86 10 6555 0801
E-mail: cs@cncbinternational.com

STOCK EXCHANGE

LISTING

  • #128 Global 2000 2021
  • #173 in Sales Global 2000
  • #74 in Profit Global 2000
  • #37 in Assets Global 2000
  • #715 in Market Value Global 2000
  • World’s Best Banks 2021
  • #19 Top 500 Global BankBRands
  • #1 Comprehensive RMB market outlook of Reuters
  • #26 Top 1000 World Banks 

EMPLOYEES

58,879

CHIEF SUSTAINABILITY OFFICER

No CSO or equivalent was found.

AWARDS

  • Best Financial Institution Innovation Center by The Asian Banker
  • Favorite Employer among Chinese College Students by 51job.com
  • Green Development Award by people.com
  • 2019 Excellent Case of Precision Poverty Alleviation in China in the 21st Century Financial Competitiveness Selection

CONTENT SOURCE

FURTHER READING

Report created by Ellie Weiss

China CITIC Bank

SECTIONS :  Sustainability  Targets    Evaluation  •  Key Points  •  Overview

Company Activity

China CITIC Bank Corp. Ltd. is a commercial bank, which engages in the provision of corporate and personal banking services. The firm also conducts treasury business and provides asset management, finance leasing, and other non-banking financial services.

It operates through the following business segments: Corporate Banking, Personal Banking, Treasury Business, and Others.

  • The Corporate Banking segment provides corporate loans, deposit-taking activities, agency services, remittance and settlement services, and guarantee services.
  • The Personal Banking segment offers financial products and services to individual customers and small enterprises.
  • The Treasury Business segment conducts capital markets operations, inter-bank operations, and investment banking businesses.
  • The Others segment represents non-banking businesses provided by CIFH and CNCB Investment. 

China CITIC Bank is China’s seventh-largest lender in terms of total assets. It was known as CITIC Industrial Bank until it changed its name in August 2005. China CITIC Bank, established in 1987, is a nationally comprehensive and internationally oriented commercial bank.

Company Sustainability Activity

The Bank has attached great importance to the signing of the Paris Agreement and its policy orientation. 

Identifying Environmental Risks: The Bank formulated the Measures for Categorized Management of Environmental and Social Risks of China CITIC Bank Corporation Limited, comprehensively launching the classification of environmental and social risks of credit customers and projects, and conducting dynamic assessments of such risks.

Green Credit: The Bank proactively implemented relevant regulatory requirements for credit, stepping up the support of the green economy, low-carbon economy, and the circular economy.

The Bank implemented different policies and adopted differentiated measures for industries featuring “high energy consumption, high pollution and severe overcapacity”.

The Bank strived to reduce the number of printed paper vouchers and visits made by customers through internet finance while providing them convenient financial services so as to achieve the effect of cutting total social carbon emissions.

Disposal of Hazardous Wastes: Used toner, toner cartridges, and ink boxes were recycled by qualified suppliers. For UPS batteries, the Bank engaged manufacturers with environmental protection qualifications to recycle them.

Disposal of Harmless Wastes: The Bank let vendors demagnetize and destroy scrapped production hard disks for recycling, and asked equipment suppliers to recycle faulty hard disks that were still within the warranty period.

The Bank advocated green office spaces in line with its original purpose of reducing the occupancy of natural resources and pollutant discharge. They advocate recycling and saving paper, power, water, fuel, and gas. 

Protection of Biodiversity: 

  • The Bank established an outlet (with an area of 1,160 square meters) in Hangzhou Bay New Zone (a national wetland reserve). 
  • Set up Xikou Subbranch (with an area of 345 square meters) in Xikou Town (national 5A scenic spot).
  • Set up an outlet (with an area of 600 square meters) in Boshan District (a provincial-level nature reserve).

Performing Responsibility for Society: During the reporting period, the Group built an inclusive financial system and implemented precision poverty alleviation. Adhering to giving back to society, the Group actively participated in public benefit activities, helped vulnerable groups in various fields including poverty alleviation, education, environmental protection, and health care.

Corporate Governance: In 2019, the Bank carried out corporate governance and operation management strictly in accordance with the Company Law of the People’s Republic of China, Law of the People’s Republic of China on Commercial Banks, Law of the People’s Republic of China on Regulation and Supervision over the Banking Industry, Securities Law of the People’s Republic of China and other relevant laws and regulations.

Diversity of the Board of Directors: The Board of Directors of the Bank comprises members of different gender, ages, culture, educational background, and professional experience.

Disclosing public government affairs: The Bank maintains an information announcement mechanism on the intranet, continued to implement the Measures of CITIC Bank for Intranet Management, and promptly released important news about the Bank’s operation and management on the premise of ensuring the security of confidential information. As of the end of the year, the Bank released over 120,000 pieces of information on the intranet, up about 28.21% and attracting about 16.02 million visits.

Responding to the Belt and Road Initiative: The Bank actively supported the infrastructure construction of the Belt and Road Initiative. It also supported the industries of railway, transportation, and engineering equipment for the infrastructure: it promoted the development of environmental protection, supported gas, water, and soil pollution control and energy conservation fields. 

The Bank actively supported transportation infrastructure construction, ecological environment construction, and industrial upgrading and transition within the regions of Beijing, Tianjin, and Hebei.

Anti-money Laundering: The Bank, with the Guidelines for the Management of Money Laundering and Terrorist Financing Risks for Corporate Financial Institutions (for Trial Implementation) of the People’s Bank of China and the Administrative Measures for Anti-money Laundering and Counter-terrorism Financing of Financial Institutions in the Banking Sector of the China Banking and Insurance Regulatory Commission (CBIRC) as the guidance, clarified the anti-money laundering management responsibilities of the Board of Directors. 

Anti-counterfeit Money: The Bank has invested manpower and material resources to prevent the circulation of counterfeit currency and maintain the stability of the country’s financial order. The Head Office organized thematic training on cash operation for cash operation personnel across the Bank. Branches organized cash operation personnel to hold various anti-counterfeit training and campaigns to improve anti-counterfeit money awareness of the public. As of the end of the year, the Bank confiscated 12,194 counterfeit RMB.

Inclusive Finance: The Bank established a long-acting mechanism that can build the confidence, willingness, and capability of customers to borrow good loans and facilitate the development of inclusive finance business.

Staff welfare: The Bank pays social security schemes and housing provident funds, and provides enterprise annuities and supplementary medical insurance for employees under a labor contract. 

Female employee rights and interests: The Bank signed the Special Collective Contract for Protecting the Rights & Interests of Female Employees. Moreover, the Head Office continued to organize the “Smooth Pregnancy” activity and distributed more than 2,000 radiation-proof clothes to pregnant employees at each branch. 

Child labor: The Bank employs labor according to the Labor Law and Labor Contract Law, and does not use child labor. 

Discriminations: The bank states their remuneration system does not involve any factors regarding gender, ethnic group, political party, religion, or cultural background. The employee promotion policy treats the employees equally regardless of their gender, ethnic group, political party, religion, and cultural background. 

 
 

Highlights

  • Attached great importance to the signing of the Paris Agreement by the Chinese government 
  • Launching the classification of environmental and social risks
  • Partnered with groups in public benefit activities 
  • Helped vulnerable groups in various fields including poverty alleviation, education, environmental protection, and health care
  • Cutting social carbon emissions by reducing printed paper vouchers and customer visits through internet finance
  • Disposal of hazardous waste with qualified suppliers
  • Recycled harmless waste 
  • Advocated green office spaces in line with its original purpose of reducing the occupancy of natural resources and pollutant discharge
  • Advocated recycling and saving of paper, power, water, fuel, and gas 
  • Established multiple protected areas of land throughout China to promote biodiversity
  • Committed to guidelines of corporate governance
  • Has a diverse Board of Directors who have experience in sustainable development
  • Transparent communication between the company, employees, and customers
  • Supported sustainable infrastructure through the Belt and Road Initiative
  • Supported ecological environment construction, and industrial upgrading and transition within Beijing, Tianjin, and Hebei
  • Implement anti-laundering management and money laundering risk management
  • Fight counterfeit money through cash operation training, anti-counterfeit training, and campaigns, and confiscation
  • Creates inclusive finance schemes which promote inclusive banking
  • Promote staff wellbeing through security schemes, housing funds, and medical insurance
  • Fights against child labor and discrimination based on gender, ethnicity, political party religion, and cultural backgrounds
  • Supports female rights and interests 
  • Donates to organizations primarily for poverty alleviation, student aid, disaster relief, and support for disadvantaged groups
 

Targets

The company does not disclose this information.

Progress

  • The number of personal online banking customers (in ten thousand people) went from 3804.89 in 2018 to 4704.38 in 2019, an increase of 23.64%
  • Purchased electricity went down 4.88% from 2018 to 2019, equivalent to emissions of around 155,400 tons of carbon dioxide
  • Purchased gasoline went down 11.26% from 2018 to 2019, equivalent to emissions of around 3978.44 tons of carbon dioxide
  • Total hazardous waste went down by 11.89% throughout 2019
  • Total harmless waste went down by 3.12% throughout 2019
  • Total energy consumption went from 291,038.66 MWh in 2018 to 277,205.23 MWh in 2019
  • Total water consumption went from 2,203,528.41 tons in 2018 to 2,448,094.84 tons in 2019
  • Purchasing of A4 copy paper was reduced by 2.95% throughout 2019

Certificates

No sustainability-related certificates were found for China Citic Bank. 

UN Sustainable Development Goals

UN SDGs Compliance

SDG 1: No Poverty

  • Donated RMB 31.6586 million for poverty alleviation, student aid, disaster relief, and support for disadvantaged groups
  • Conducts targeted poverty alleviation programs in several Chinese cities

SDG 3: Good Health and Well-Being

  • Promotes staff well-being through security schemes, housing funds, and medical insurance
  • Conducta physical examinations for employees on a regular basis

SDG 4: Quality Education

  • Continues to support 1,000 poverty-stricken high school students from 20 different provinces, municipalities, and autonomous regions nationwide to finish the second grade

SDG 5: Gender Equality

  • Female employees increased by 1.73% from 2018 to 2019 while male employees increased by 0.45%

SDG 6: Clean Water and Sanitation

  • Disposed of hazardous waste with qualified suppliers
  • Recycled harmless waste

SDG 7: Affordable and Clean Energy

  • Required that all office buildings use energy-saving lamps

SDG 8: Decent Work and Economic Growth

  • Implement anti-laundering management and money laundering risk management
  • Fights counterfeit money laundering

SDG 9: Industry, Innovation and Infrastructure

  • Supported sustainable infrastructure through the Belt and Road Initiative
  • Supported ecological environment construction within Beijing, Tianjin, and Hebei
  • Supported the construction of the Yangtze Economic Belt

SDG 10: Reduced Inequalities

  • Has numerous fee exemptions to help create more inclusive banking
  • Signed Special Collective Contract for Protecting the Rights & Interests of Female Employees
  • Committed to Labor Law and Labor Contract Law, fighting child labor
  • The remuneration system treats all employees equally regardless of gender ethnic group, political party, religion, and cultural background
  • Provide special services for visually impaired customers, people with disabilities, the elderly, and special customer groups

SDG 11: Sustainable Cities and Communities

  • Supported sustainable infrastructure through the Belt and Road Initiative
  • Supported transportation infrastructure construction, ecological environment construction, and industrial upgrading within Beijing, Tianjin, and Hebei

SDG 13: Climate Action

  • Attached great importance to the signing of the Paris Agreement by the Chinese government
  • Advocated green office spaces

SDG 14: Life Below Water

  • Required that all employees should avoid turning up the tap when using water to reduce water flow, and turn off the tap after using water

SDG 15: Life of Land

  • Cutting social carbon emissions by reducing printed paper vouchers and customer visits through internet finance
  • Established multiple protected areas of land throughout China to promote biodiversity

SDG 16: Peace, Justice and Strong Institutions

  • Committed to guidelines of corporate governance
  • Promotes transparent communication between the company, employees, and customers

SDG 17: Partnerships for the Goals

  • Partnered with groups in public benefit activities, helped vulnerable groups in various fields including poverty alleviation, education, environmental protection, and health care

Evaluation

China CITIC Bank reports its sustainability progress; however, it lacks clear targets. The bank has extensive awards and many listings but lacks relevant certifications to give its work further credibility. Moreover, they do not have a Chief Sustainability Officer

China Citic Bank has extensive and transparent reporting on its sustainability efforts. They align their actions directly with the UN SDGs and show their commitment to a wide range of sustainability-related issues. 

The bank has strong support for its own employees and conducts projects supporting the environment, as well as initiatives to create inclusive financial services for its customers. 

Despite many sustainability-focused projects, the bank still has an immense negative impact on the environment. Even though they are slowly decreasing their overall consumption, they still purchase a huge amount of electricity, gasoline, and other resources. They also discharge large amounts of hazardous and harmless waste. Alarmingly, the bank is a leader in coal power financing.

Since the adoption of the Paris Agreement, China CITIC Bank has invested a total of $44.484 B in the fossil fuel industry. In addition, the bank increased its investments from 2019 to 2019, only decreasing its investment by $400M from 2019 to 2020.

Therefore, the company has been rated a C.

Analyst Outlook: Negative

The bank is investing resources to improve; however, their negative impacts outweigh their positive ones.

 

Key Points

  • Aligns goals with UN SDGs
  • Good support for well-being of their employees
  • Creates inclusive finance for customers
  • Has initiatives to help support their community
  • Strong and transparent sustainability reporting
  • Extensive awards and listings, but lacks certification
  • Decent progress but few targets
  • No Chief Sustainability Officer
  • Still consuming extensive amounts of resources and producing large amounts of waste
  • Leading in coal power financing post-Paris Agreement
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