Case study: How SHRCB takes action on its PRB targets: green finance and inclusive finance

Stakeholder identification and consultation

Please describe which stakeholders (or groups/ types of stakeholders) you have identified, consulted, engaged, collaborated or partnered with for the purpose of implementing the Principles and improving your bank’s impacts. This should include a high-level overview of how your bank has identified relevant stakeholders, what issues were addressed/results achieved and how they fed into the action planning process.

SHRCB places significant emphasis on engaging with six key categories of stakeholders, both internal and external, including government and regulatory bodies, customers, investors and shareholders, employees, suppliers and partners, and the broader public community. The bank continually broadens its communication channels, listens to stakeholder opinions and feedback, and takes timely and sincere action to address their expectations and needs. SHRCB is committed to fulfilling its economic, social, and environmental responsibilities, aiming for sustainable development that benefits both the bank and its stakeholders. It takes its corporate social responsibilities seriously and strives to enhance its image as an exemplary corporate citizen.

Based on feedback from stakeholders, SHRCB has identified key expectations from government and regulatory bodies, such as supporting the real economy, driving rural revitalization, advancing the “dual-carbon” goals, and promoting inclusive finance. The bank aligns its strategies with relevant financial and industry policies, with a strong focus on developing green finance and inclusive finance. (For more details, refer to the “communication with stakeholders” section in SHRCB’s 2023 ESG Report.)

What actions were taken by SHRCB on its PRB targets, green finance and inclusive finance?

In its 2023 PRB Reporting and Self-Assessment Template SHRCB reports that it took the following actions on its PRB targets, green finance and inclusive finance:

• SMART Target 1: Green finance
• SHRCB is proactively aligning with the national “dual carbon” objectives while adhering to the principles of sustainable development. The bank has set a clear objective of building a sustainable financial system backed by green finance. By leveraging its financial resources, SHRCB is advancing green development and vigorously encouraging green finance. In 2023, the bank focused on five key areas: green agriculture, green energy, energy efficiency and environmental protection, green manufacturing, and green building. It expanded the scale of green investments and financing and introduced innovative green financial products and services to accelerate the transition toward a greener economy. As of the end of 2023, the green loan balance reached 61.431 billion yuan, reflecting a 41.00% increase compared to the previous year-end. As part of its ongoing exploration of green finance strategies, the bank introduced several documents, including the Action Plan for Implementing Mission Reduction Support Tools and Accelerating Asset Green Transformation, Marketing Guidelines for Emission Reduction Loans, Management Methods for Pollution Discharge Allowance Mortgage Loans, and Management Methods for CCER Pledge Credit Granting. By the end of August 2023, the bank had completed its first CEER pledge transaction, incorporating CCERs into its credit granting process. This CEER pledge expanded the business’s total line of credit by approximately 60%, while also reducing the loan interest rate by 20 basis points. This initiative offers significant benefits to businesses, achieving both environmental and economic gains.

• SMART Target 2: Inclusive finance
• SHRCB remains dedicated to the fundamental principle of using financial services to support the real economy. The bank consistently improves financing accessibility for micro and small enterprises, self-employed individuals, farmers, and new agricultural entities. Its range of inclusive financial products continues to diversify, while mechanisms ensuring sustainable lending are being continuously enhanced. In 2023, the bank intensified its focus on serving the entities and individuals covered by inclusive finance, such as micro and small businesses and rural communities. It accelerated its digital transformation efforts and strengthened workforce development. Through four specialized teams, SHRCB actively promoted the steady growth of inclusive financial services, positioning itself as a leader in the innovative development of inclusive finance. As of the end of 2023, the inclusive loan balance for micro and small enterprises reached 77.928 billion yuan, marking a 21.55% increase compared to the previous year-end.

UN Principles for Responsible Banking: Accelerating a positive global transition for people and the planet

With over 300 signatory banks representing almost half of the global banking industry, the Principles for Responsible Banking are the world’s foremost sustainable banking framework. Through these Principles, the banking community takes action to align core strategies, decision-making, lending and investment with the UN Sustainable Development Goals and international agreements such as the Paris Climate Agreement.

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References:

This case study is based on published information by SHRCB, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://www.shrcb.com/shrcb-en/attachDir/2024/08/2024080516074831161.pdf

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