China Construction Bank

RATING

SECTOR

Banking

WEBSITE

CONTACT

No.25, Finance Street,
Beijing, China, 100033

Tel: 86-10-67597114
Fax: 86-10-66212659

STOCK EXCHANGE

LISTING

  • #4 Global 2000 2021
  • #23 Sales Global 2000
  • #8 Profit Global 2000
  • #49 Market Value Global 2000
  • World’s Best Banks 2021

EMPLOYEES

347,156

CHIEF SUSTAINABILITY OFFICER

No CSO or equivalent found.

AWARDS

  • Award of Achievements in Helping Fight against the “Three Critical Battles” by China Banking Association
  • Best Inclusive Finance Performance by China Banking Association
  • Best Case for Social Responsibility Practice –Workers’ Harbour by China Banking Association
  • Best Outlet with Special Contribution to Social Responsibility by China Banking Association
  • Best Social Responsibility Manager by China Banking Association
  • Best People’s Enterprise CSR Case of the Year by people.cn
  • Responsible Enterprise of the Year 2019 by chinanews.com
  • “Concentric Circles” Grand Prize by All China Federation of Trade Union and Cyberspace Administration of China
  • Outstanding Responsible Enterprise of the Year at The 11th China CSR Annual Conference
  • Contribution to Targeted Poverty Alleviation of the Year – Role Model Enterprise of the Year at The 11th China CSR Annual Conference
  • Best CSR Case of the Year at The 11th China CSR Annual Conference
  • Targeted Poverty Alleviation Award at the 2019 China Social Responsibility Public Welfare Ceremony and 12th China Corporate Social Responsibility Summit
  • Role Model Enterprise of Sustainable Competitiveness at the 2019 Global Enterprise Sustainable Competitiveness Summit Forum
  • Best Brand Communication Case of the Year –Workers’ Harbour by China Financial Publishing House
  • Chinese Finance Brand of the Year –Workers’ Harbour by China Financial Publishing House
  • Evergreen Award – Sustainable Development Performance by Caijing
  • Social Responsibility Contribution Award of the Year by International Finance News
  • Outstanding Award for Social Responsibility by 2019 “Pioneers of China” voting campaign by JRJ
  • Outstanding Award for Innovation on Smart Outlets by 2019 by JRJ
  • “Pioneers of China” voting campaign – “5G+ Smart Bank” by JRJ
  • Special Contribution Award  by Ifeng.com Activist Alliance Public Welfare Ceremony 
  • ESG Corporate Gold Award by The Asset
  • Award for Outstanding Contribution to 30-year Project Hope by China Youth Development Foundation
  • Fair Wealth Honorary Two-star Enterprise by the Institute for Sustainable Innovation and Growth

CONTENT SOURCE

FURTHER READING

Ellie Weiss

China Construction Bank

SECTIONS :  Sustainability •  Targets    Evaluation  •  Key Points  •  Overview

Company Activity

China Construction Bank Corporation is one of the “big four” banks in the People’s Republic of China. In 2015, CCB was the 2nd largest bank in the world by market capitalization and 6th largest company in the world. The bank has approximately 13,629 domestic branches.

China Construction Bank Corp. engages in the provision of a wide range of financial services to corporate and personal customers. It operates through the following business segments: Corporate Banking, Personal Banking, Treasury, and Others. 

  • The Corporate Banking segment provides a range of financial products and services to corporations, government agencies and financial institutions.
  • The Personal Banking segment provides personal loans, deposit taking and wealth management services to individual customers among other services.
  • The Treasury segment represents inter-bank money market transactions, repurchase and resale transactions, investments in debt securities, and trade of derivatives and foreign currency.
  • The Others segment refers to equity investments and revenues, results, assets and liabilities of overseas branches and subsidiaries.

Company Sustainability Activity

The Bank constantly refined the “mega inclusion, new inclusion” pattern and pressed ahead with the strategy of inclusive finance, so as to continuously ease the social pain points of difficulty in access to affordable financing by small and micro businesses and meet the requirement of regulatory authorities for inclusive small and micro businesses.

The Bank continued to follow the basic strategy of targeted poverty alleviation and eradication, and explored a sustainable mode of e-commerce channels first, relevant credit innovation, service network extension, public welfare activities for promotion and pooling of resources from all parties. It implemented the requirements of the regulators on supporting severely impoverished areas and comprehensively improved the quality and efficiency of targeted poverty alleviation in those areas with financial services.

In 2019, the Bank implemented the rural revitalization strategy, actively practiced the idea of New Finance, and adhered to the penetration of technology, product and service. It upgraded the “Yunongtong” comprehensive service platform for rural revitalization, put forth effort to solve social pain points such as insufficient financial services in county and rural areas, and provided inclusive financial services and non-financial comprehensive services to rural residents.

In 2019, the Bank pressed ahead with the house leasing strategy and actively built the new ecosystem of house leasing. The Bank refined the comprehensive house leasing service platform, provided tools and assistance for local authorities to manage the house leasing market, and helped them establish and refine the long-term development mechanism of the real estate market.

The Bank continued to promote intelligent, systematized and ecological development by stepping up innovation and application of financial technologies. It built a smarter risk control system for the application of personal customers’ information and consolidated the capability in fraud prevention and control, safeguarding the security of customers’ information and funds.

As a large state-owned commercial bank, the Bank has always taken servicing education and colleges as its bounden social responsibility. The Bank has supported China College Students’ “Internet Plus” Innovation and Entrepreneurship Competition as well as innovation campus services and online education platforms like “Jianrong Huixue” and “CCB Class (Jianxuetang)” to fully serve the development of China’s educational cause.

The Bank actively assisted the Chinese government in fulfilling the commitments in the Paris Agreement and comprehensively implemented the ecological conservation strategy. The Board of Directors paid great attention to green finance on the strategic level and adjusted the Green Credit Committee to be the Green Finance Committee in order to further put into play the Bank’s capability in allocating green financial resources and mitigating climate change.

Since the outbreak of COVID-19, the Bank has conscientiously implemented the requirements of the central government on the prevention and control of the outbreak, fulfilled the responsibilities as a large state-owned bank and given full play to its role as the “stabilizer” of the market. It had a quick response as well as targeted and effective measures to stimulate the economy despite the effects of the pandemic.

The bank is jointly developing the CCB-Wind-CUFE Green ESG Bond Index with Wind Information Technology Co and the International Institute of Green Finance. This new index will increase transparency in the domestic green bond market and make it more internationally available.

Highlights

  • Facilitating small and micro businesses
  • Targeted poverty alleviation with financial services
  • Supporting rural revitalization
  • Better housing services for the people 
  • Protecting customers’ rights and interests
  • Benefiting education and supporting mass entrepreneurship and innovation
  • Green finance
  • Supporting Anti-epidemic Fight for a Decisive Victory
  • ESG bond index for green finance transparency

Targets

The company does not disclose this information.

Progress

  • Balance of green loans (RMB 100 million) went from 10,025 in 2017 to 11,758 in 2019
  • Standard coal equivalent emission reduction (10,000 tons) went from 2,800 in 2017 to 3,196 in 2019
  • Carbon dioxide equivalent emission reduction (10,000 tons) went from 6,305 in 2017 to 7,233 in 2019.
  • COD emission reduction (10,000 tons) went from 23.64 in 2017 to 33.44 in 2019
  • Ammonia and nitrogen reduction (10,000 tons) went from 3.14 in 2017 to 3.54 in 2019
  • Sulfur dioxide emission reduction (10,000 tons) went from 26.78 in 2017 to 60.09 in 2019
  • Nitric oxides emission reduction (10,000 tons) went from 4.77 in 2017 to 30.65 in 2019
  • Water saving (10,000 tons) went from 119.87 in 2017 to 6, 629.90 in 2019
  • Total greenhouse gas emissions (Category 1 & 2) (tons) went from 277,449  in 2017 to 272,029 in 2019
  • Hazardous waste (tons) went from 40.29 in 2017 to 19.46 in 2019
  • Energy consumption (MWh) went from 483,337 in 2017 to 438, 501 in 2019
  • Total paper consumption (tons) went from 2,861 in 2017 to 2,171 in 2019

Certificates

The company does not disclose this information.

UN Sustainable Development Goals

UN SDGs Compliance

SDG 1: No Poverty

  • The Bank promoted the “Cloud Production” Targeted Poverty Alleviation Program in Ankang, Shaanxi Province
    • It is a three-level cloud production system which consists of centralized “Cloud Production Bases”, “Cloud Production Sites” distributed at villages and “Cloud Production Applications” on mobile phones, through which the Bank has facilitated the poverty-stricken families’ employment and income increase

SDG 2: Zero Hunger

  • E-commerce poverty alleviation : The Bank cooperated with local leading enterprises in Ankang on launching the “Tea Garden Claim Program” to precisely assist the poverty-stricken tea farmers with income increase

SDG 3: Good Health and Well-Being

  • The Shandong Branch put into place an integrated service system facilitating drug traceability
    • The system supported the whole-process regulation over drugs from production and circulation to use, ensuring consumers’ access to verified drugs

SDG 4: Quality Education

  • Developing the “Technology Incubator Platform” of inclusive finance: in cooperation with government departments, venture capital companies, core enterprises, scientific research institutions, and incubation institutions, the Bank integrated high-quality internal and external resources to provide start-ups and innovative enterprises with an online and offline comprehensive one-stop service platform: “finance + incubation + industry + education”
    • Currently, this platform has been piloted in multiple branches and launched in Shenzhen.

SDG 5: Gender Equality

  • Launching “Start-up Loans for Women”: Providing funds for start-ups by women through credit

SDG 6: Clean Water and Sanitation

  • Fujian Branch granted RMB 297 million loans to a leading player in sewage disposal in Fujian Province, to support the construction of sewage disposal plants
    • The building, upgrading and renovation of the plants effectively cut discharge of water pollutants in Fuzhou, improved water quality of the river system in the city and played an important role in protecting water quality of the Minjiang River

SDG 8: Decent Work and Economic Growth

  • “Jinzhihuimin –National Training for Female Entrepreneurs and Innovators”: nearly 300 female entrepreneurs successively participated in three sessions covering inclusive finance, e-commerce, innovative mindset for enterprises and leadership improvement
  • The program won high recognition among the participants

SDG 9: Industry, Innovation and Infrastructure

  • “Jianrong Huixue”: provides colleges, teachers and students with smart and convenient one-stop services covering all stages from enrollment, learning and living to graduation

SDG 10: Reduced Inequalities

  • The Sichuan Branch re-organized job positions such as outbound customer service calls and credit card installment, so as to directionally recruit target groups for poverty alleviation (including handicapped individuals)
    • Positions that were made available were then opened to new target groups of poverty alleviation

SDG 11: Sustainable Cities and Communities

  • “New Rental Loans”: provided leasing enterprises and customers with whole-process services covering house supply, leasing, matchmaking, financing and post-leasing management

SDG 12: Responsible Consumption and Production

  • Supported core enterprises in building up a whole-industrial chain by granting them credit
    • Farmers participated in projects with contracted lands as shares and were entitled to land circulation fee, labor income and profit sharing of core enterprises

SDG 13: Climate Action

  • Launched such products as Green e-Sales and Green Zurongbao in 2019 to help with green transport

SDG 16: Peace, Justice and Strong Institutions

  • “One Platform for All Government Services” in Shandong: the platform provides individuals with convenient government services

SDG 17: Partnerships for the Goals

  • Partnered with numerous local and national organizations (mentioned in previous SDGs) to help improve the wider community and livelihood of others 

Evaluation

China Construction Bank does a great job aligning their initiatives with the UN SDGs. They clearly lay out which of their projects support each goal. The bank focuses on poverty alleviation, promoting sustainable innovation and infrastructure development, as well as reducing inequalities both in and out of the workplace. 

The Bank is highly recognized as is seen with their many awards and listings; however, they lack further credibility through certifications.

They show clear progress in many areas, especially with off-setting emissions; however, they still have a long way to go in terms of resource use. Their harmless waste went from 391 tons in 2017 to 409 in 2019 and their water consumption went from 2,049,524 tons in 2017 to 2,424,149 tons in 2019. In addition, their workplace clearly needs more safety focus as their death toll on business was 11 in 2019, 4 in 2018 and 8 in 2017.  

Although they do invest in green bonds, green bonds in China usually don’t meet the environmental requirements in other parts of the world. These bonds are regulated by several agencies, which apply different rules on the uses of the cash and disclosure. In some cases, up to half of the proceeds from onshore green bonds can be used to fund a business’s day-to-day cash needs instead of climate-related projects, increasing the risk of greenwashing and overstating their environmental benefit. 

Despite China Construction Bank’s sustainability initiatives, the bank has invested $60.536 B in the fossil fuel industry since the adoption of the Paris Agreement. However, China construction bank did decrease its investments from 2019 to 2020. 

Therefore, the company has been rated a C.

Analyst Outlook: Neutral

No supplemental information gives this report a reason to have a negative or positive outlook. The bank could receive a better outlook if it continues its divestment of fossil fuels.

Key Points

  • Many awards as well as some listings, but needs further certification
  • No Chief Sustainability Officer
  • Many initiatives relating to most of the UN SDGs
  • Clearly line up their work with their specific UN SDG 
  • Making good progress, but still reverted in a few categories 
  • Invests in green bonds, but these are potentially unregulated
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