2021年11月27日

PSBC’s continuous improvement of its sustainable development capacity was rated A by ESG

The Postal Savings Bank of China (PSBC) has been rated A by Morgan Stanley Capital International (MSCI) for 2021, the highest rating among China’s banking sector.

ESG is a concept to evaluate the sustainability of enterprise development from the aspects of environment, society and corporate governance, and has increasingly become an important reference standard for the capital market to measure the investment value of listed companies. MSCIESG rating is one of the ESG rating systems widely recognized by global investment institutions. It mainly carries out ESG rating from corporate governance, financial availability, financial impact on the environment, customer financial protection, privacy and data security, human capital development and other dimensions. It aims to measure a company’s ability to resist long-term ESG risks related to enterprise operation and finance, and provide investment decisions and data analysis basis for global investors.

As A dual-listed bank of A and H, PSBC attaches great importance to ESG management, practice and information disclosure, and continuously improves its sustainable development capacity and corporate transparency.

In corporate governance, post office bank advancing ESG related work into the whole development strategy, governance structure, corporate culture and business processes, enhance the management level, large shareholders, customers, employees, the social from all walks of life hand in hand, create sustainable business value, to create a bear temperature, toughness and perfect modern commercial Banks.

In terms of financial availability, the MSCI ESG rating report says PSBC “focuses on supporting the underserved”. Since its establishment, the post office always maintain retail bank strategic concentration, adhere to the service “three rural”, urban and rural residents and small and medium-sized enterprises, promote the financial and technology depth fusion, actively explore thorpe new mode and a new financial ecology, walked out of a post office bank characteristics of pratt &whitney financial business sustainable development. In terms of the guarantee of inclusive finance system and mechanism, PSBC has set up responsibilities related to inclusive finance in the working rules of the strategic planning Committee of the Board of Directors to fully support the development of inclusive finance business. Statistics show that by the end of September 2021, PSBC had nearly 40,000 outlets serving more than 600 million individual customers. Outstanding agriculture-related loans are 1.58 trillion yuan, accounting for about a quarter of all loans in the bank. This year, inclusive loans to small and micro enterprises exceeded 750 billion yuan, serving more than 1.65 million customers, ranking firmly in the forefront of the banking industry. The balance of online small and micro loan products was 662.844 billion yuan, up 45% from the end of last year.

On the environmental front, PSBC has made great efforts to develop sustainable finance, green finance and climate finance, strengthen biodiversity conservation, strive to build a first-class green inclusive bank and a climate-friendly bank, and help achieve the goal of carbon peak and carbon neutrality. This year, PSBC officially adopted the Responsible Banking Principle (PRB) and joined UNEP FINANCE Initiative (UNEP FI), becoming the second large Chinese state-owned commercial bank to sign the PRB. PSBC also officially became a supporting institution of the Working Group on Climate-Related Financial Information Disclosure (TCFD), which will further improve the quality of environmental and climate-related information disclosure. Data show that by the end of September 2021, PSBC’s green loan balance was 346.743 billion yuan, up 23.42% from the end of the previous year. “PSBC maintains strong initiatives to integrate ESG risk management into its credit process,” the MSCI ESG rating report said. Notably, the bank applied fintech to enhance ESG risk management and push clients to focus on their ESG performance. PSBC prioritizes its credit resources to meet the demand for green credit through performance appraisal and reduction of internal fund transfer pricing.”

The MSCI ESG rating report also noted PSBC’s “improved data security and talent management measures”. In recent years, PSBC has continuously improved the working mechanism of consumer protection, and improved the working framework with decision-making and execution supervision, consumer protection review, internal assessment of consumer protection and information disclosure mechanisms as the core, effectively protecting the security of customers’ financial and personal information, and continuously improving the quality of service. In terms of human capital development, PSBC has intensified market-oriented selection, promoted talent pool construction, optimized salary and welfare management, continuously deepened talent development and training, and comprehensively strengthened talent team construction.

At the same time, the post office bank attaches great importance to the ESG disclosure, against the government and regulators, the Shanghai stock exchange, the stock exchange of Hong Kong’s disclosure requirements and reference for the domestic and international sustainable development, social responsibility report preparation guide and rating standard, compiled annually to disclose the social responsibility, environmental, social, and governance) report, While meeting the compliance disclosure requirements, the quality of disclosure shall be continuously improved, and the whole bank shall be guided to continuously improve the management and practice level of ESG.

It is understood that in June this year, JP Morgan issued a research report, which evaluated the ESG performance of China’s banking industry through quantitative and qualitative index factor evaluation, and listed PSBC as the first ESG bank of China, and fully recognized PSBC’s position and key role in the field of inclusive finance.

As ESG investment philosophy has increasingly become an important investment strategy in the capital market, ESG rating has become an important basis for the capital market to measure the investment value of listed companies. Professionals said that the ESG rating given to PSBC by Ming Sheng and JPMORGAN Chase is a reflection of PSBC’s continuous promotion of sustainable economic, environmental and social development, as well as the capital market’s recognition of PSBC’s sustainable development ability and long-term investment value.

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