China Zheshang Bank

RATING

SECTOR

Banking

WEBSITE

CONTACT

No. 288 Qingchun Road
310006 Hangzhou
Zhejiang Province, China

Tel: +86-571-87659817
Fax: +86-571-87659511
E-mail: zhbgs@czbank.com

STOCK EXCHANGE

N/A

LISTING

The bank does not disclose this information.

EMPLOYEES

15,996

CHIEF SUSTAINABILITY OFFICER

No CSO or equivalent found.

AWARDS

  • The State Council Leading Group Office of Poverty: Top 50 Cases of Targeted Poverty Alleviation by Chinese Enterprises
  • China Banking and Insurance Regulatory Commission: No.1 in Consumer Protection Assessment and Evaluation among National Joint Stock Banks
  • China Banking Association: Best People Livelihood Finance Award
  • China Banking Association: Professional Contribution Award for Green Bank Evaluation Work
  • China Banking Association: The Best Performing Company of the “Financial Knowledge Promotion” Campaign
  • China Banking Association: Best Targeted Poverty Alleviation Contribution Award
  • Social Responsibility Special Committee, the Chinese Institute of Business Administration: Excellence Award for Employee Sustainable Practice
  • China Banking and Insurance News: Outstanding Case Award for “Social Responsibility”
  • International Financial Markets: 2020 Socially Responsible Enterprise

CONTENT SOURCE

FURTHER READING

Report created by Sonria Willis

China Zheshang Bank

SECTIONS :  Sustainability •  Targets    Evaluation  •  Key Points  •  Overview

Company Activity

China Zheshang Bank (CZBank) is a national joint-stock commercial bank based in the People’s Republic of China and regulated by the People’s Bank of China.

China Zheshang Bank has its headquarters in Hangzhou, China, and serves customers through a network of 109 branches across the major cities in the country. In 2014, the bank ranked 208 in the “Global Banking 1000” list by the UK based Banker magazine.

The Bank operates its businesses through three segments:

  • Corporate Banking segment, which provides financial products and services to corporations, government agencies, and financial institutions.
  • Retail Banking segment, which provides financial products and services to individual customers, and its range of products and services include personal loans and advances, deposit products, bank cards business, and other types of personal intermediary services.
  • Treasury Business segment, which conducts money market and repurchase transactions, debt instruments investments, and financial derivatives business for proprietary trading or on behalf of customers.

Company Sustainability Activity

CZBank states they abide by the Environmental Protection Act of the People’s Republic of China and other relevant laws. It emphasizes its commitment to improving green policy by:

  • Developing their green financial system
  • Exploring the management mode and innovative measures of green credits
  • Supporting energy conservation, emission reduction
  • Eliminating backward production capacity
  • Implementing credit decision-making into environmental and social management

CZBank is committed to expanding green investments. By the end of 2018, the balance of green loans reached RMB 22.558 billion, an increase of RMB 8.569 billion over the end of 2017. Moreover, CZBank increased credit in wind power, hydro-power, and other renewable energy industries. The bank also developed and promoted products such as “Intelligent Manufacturing Loan” or the “Investment Adviser Loan” which meet the financial needs of green enterprises in an all-around way.

The bank supported the development of new energy automobile industries such as power batteries, vehicle manufacturing, and other sub-sectors. In 2018, CZBank provided about RMB 6.7 billion in financing support to green industries such as new energy, ecological environment protection, and waste disposal. Among them, CZBank Xi’an Branch effectively supported the construction of key environmental protection projects of the Shaanxi Environmental Protection Group. 

Beginning in 2014, CZBank Beijing Branch granted RMB 200 million credit to Origin-water, an organization that uses self-developed membrane technology to address water pollution treatment.

CZBank set green access requirements and evaluation criteria in the procurement process. The bank asked suppliers to have environmental management system certification and occupational health and safety management system certification. The bank states it continues to improve the supplier management system to manage cooperative suppliers continually and effectively. 

The bank is also focused on making its buildings more environmentally efficient, some of the measures it has taken include:

  • Developed innovative application of new ecological decoration materials such as micro-crystalline
  • Installed new energy-saving equipment such as high-efficiency boilers, environmentally friendly and energy-saving LED lamps and lanterns
  • Office workstation products are all made of non-formaldehyde and non-polluting steel screen workstation
  • The office area adopts the form of a large open space, to increase indoor lighting and air circulation, reduce the consumption of partition materials, and effectively save lighting energy consumption

Moreover, the bank also promotes energy conservation and emission reduction in its new data center:

  • In the refrigeration system, a natural cooling function was partly used to effectively reduce the energy consumption of equipment
  • Frequency conversion speed regulation control is adopted for cooling tower fans and cooling water pumps, which can effectively improve operational efficiency and save energy consumption
  • In the layout design of a modular computer room, the cabinets are arranged by closed cold and hot passages, and blind plates are installed at the positions where no equipment is placed, so as to improve the air distribution and reduce the cooling loss of air supply for air conditioning
  • The center also uses intelligent LEDs

Highlights

  • Published CZBank Green Finance Construction Outline
  • Incorporated green standards in credit investigation and review
  • Added green financial evaluation to the management dimension of its comprehensive performance evaluation system
  • Investigated customers’ environmental and social risks
  • Explored measures to actively intervene in new energy and other green financial industries
  • Formulated exit plans for enterprises that fail to conform to the national environmental and industrial policies
  • Focused on supporting projects listed in the catalogue of national key energy-saving technologies and emission reduction projects
  • Financing provided for green industries reached about RMB 6.7 billion in 2018
  • Carried out public welfare activities like tree planting, river clearance and environmental protection propaganda
  • Participated in “Earth Station” public welfare project and mobilized employees to donate idle articles to the project 

Targets

The bank does not disclose this information.

Progress

  • Financing provided for green industries reached about RMB 6.7 billion in 2018
  • Developed innovative application of new ecological decoration materials such as micro-crystalline
  • Installed new energy-saving equipment such as high-efficiency boilers, environmentally friendly and energy-saving LED lamps and lanterns
  • Office workstation products are all made of non-formaldehyde and non-polluting steel screen workstation
  • The office area adopts the form of a large open space, to increase indoor lighting and air circulation, reduce the consumption of partition materials, and effectively save lighting energy consumption
  • In the refrigeration system, natural cooling function was partly used to effectively reduce energy consumption of equipment
  • Frequency conversion speed regulation control is adopted for cooling tower fans and cooling water pumps, which can effectively improve operational efficiency and save energy consumption
  • In the layout design of a modular computer room, the cabinets are arranged by closed cold and hot passages, and blind plates are installed at the positions where no equipment is placed, so as to improve the air distribution and reduce the cooling loss of air supply for air conditioning
  • The center also uses intelligent LEDs

Certificates

The bank does not disclose this information.

UN Sustainable Development Goals

UN SDGs Compliance

SDG 1: No Poverty

  • Promoting the service model of “Bank + Industrial Leaders + Cooperatives + Farmers” to expand services to the upstream and downstream sectors of core enterprises in poor areas
  • Increasing accessibility of financial services to impoverished areas by promoting revolving lending models such as Suiyi Loan and Repayment Link, increasing the proportion of electronic loan applications, and simplifying lending procedures
  • Advancing targeted poverty alleviation programs, such as East-West Coordinated Poverty Alleviation Program, and 1,000 Enterprises on 1,000 Villages Aid Program

SDG 3: Good Health and Well-Being

  • Donating anti-epidemic supplies and money to hard-hit areas such as Hubei and WenTai
  • Purchasing agricultural products unsalable due to the pandemic
  • Encouraging employees to participate in voluntary services against the pandemic
  • Underwrote the first corporate bond issued to ensure the supply of agricultural and sideline products in COVID-19 prevention and control

SDG 7: Affordable and Clean Energy

  • Within its Sustainable Activity, CZBank has implemented different solutions to make its building environmentally efficient, such as using ecological materials, optimizing the energy sources in order to improve efficiency while saving both energy and money, improving the tech materials, and designing offices to use natural sources of light and air in order to reduce consumption.

SDG 12: Responsible Consumption and Production

  • Added green financial evaluation to the management dimension of its comprehensive performance evaluation system
  • Investigated customers’ environmental and social risks
  • Explored measures to actively intervene in new energy and other green financial industries
  • Formulated exit plans for enterprises that fail to conform to the national environmental and industrial policies

SDG 13: Climate Action

  • Carried out public welfare activities like tree planting, river clearance, and environmental protection propaganda
  • Participated in “Earth Station” public welfare project and mobilized employees to donate idle articles to the project

Evaluation

This report looked at two different reports to assess China Zheshang Bank: CHINA ZHESHANG BANK CO., LTD. Corporate Social Responsibility Report 2020 and the 2018 CZ Bank Corporate Social Responsibility Report. The 2018 report was remarkably more clear and outlined more of the bank’s progress in supporting green finance and improving energy efficiency within its operations. Indeed, while the 2020 report touched on poverty alleviation efforts, it barely mentioned any KPIs or targets on environmental sustainability.

Moreover, the bank has not made any notable listings and has only received awards from Chinese institutions — putting their credibility in question given the bank’s ties with the Chinese government.

However, in its 2018 report, the bank was very thorough and clear in outlining its progress in green finance and energy efficiency schemes. Whether the bank has continued to improve its sustainability practices, is a question that has not been answered by reading its 2020 report. 

China Zheshang Bank has been rated a C on the Impakter Index.

Analyst Outlook: Negative 

The bank has failed to give accurate ESG and sustainability information in its most recent report. It was also found to be involved in an illegal interbank business from which it was fined more than 290 million yuan.

Key Points

  • Involvement in illegal interbank businesses
    • The China Banking and Insurance Regulatory Commission will levy fines totaling more than 290 million yuan on China Zheshang Bank Co.
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