Case study: How the Bank of Nanjing works with its clients and customers to encourage sustainable practices
Founded on February 8, 1996, the Bank of Nanjing is among the first domestic commercial banks to be listed on the main board of the Shanghai Stock Exchange. With its headquarters located in Jiangsu, the bank offers its services throughout the Yangtze River Delta and the Beijing region. After 28 years of dedicated effort, the Bank of Nanjing has developed into a commercial institution recognized for its solid corporate governance, unique operational characteristics, exceptional quality and efficiency, and impressive overall strength. The Bank of Nanjing is a signatory of the Principles for Responsible Banking (PRB) and is, accordingly, working with its clients and customers to encourage sustainable practices and enable sustainable economic activities. Tweet This!
This case study is based on the 2023 Principles for Responsible Banking Self-Assessment Report by the Bank of Nanjing, prepared in relation to its implementation of the PRB, that can be found at this link. Through all case studies we aim to demonstrate what ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Which Principles for Responsible Banking have been addressed?
The Principles for Responsible Banking addressed in this case are:
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- Principle 3: Clients and Customers
- Principle 4: Stakeholders
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- How the Bank of Nanjing proceeded with stakeholder identification and consultation, and
- How the Bank of Nanjing worked with its clients and customers to encourage sustainable practices and enable sustainable economic activities
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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.
The Bank of Nanjing engages in targeted communication and strategic initiatives tailored to meet the expectations and demands of its various stakeholders. To address the needs of government and regulatory bodies, such as promoting regional development, managing overall risk, and preventing financial risks, the Bank formulates specific responses such as researching and implementing financial policies, conducting daily monitoring and approval, and providing effective regulation. Similarly, in response to the demands of shareholders and investors, such as transparency in governance and the protection of their rights and interests, the Bank maintains open communication through regular reports, information announcements, performance presentations, investor research and communication meetings, and other platforms. To serve the community and contribute to social welfare, the Bank launched its official “Xin Yi” charity brand in 2023, focusing on seven key public welfare areas: volunteer teaching and learning assistance, disaster and poverty relief, elderly and orphan care, assistance for the disabled and sick, environmental protection and pollution prevention, public welfare assistance, and financial poverty alleviation. Furthermore, the Bank of Nanjing employs various communication channels to engage with its diverse stakeholders, including clients, employees, suppliers, partners, and the wider environment.
| Stakeholders | Expectations and demands | Communication methods |
| Governmental and regulatory departments | Response to national strategies Service for the real economy Promotion of regional developments Legal and compliant operation Comprehensive risk management Prevention of financial risks Enhancement of Party building | Research and implementation of financial policies Implementation of regulatory policies Daily approval and regulation Submission of statistical statements Implementation of relevant investigations Holding of discussion meetings Participation in industry association activities
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| Shareholders and investors
| Improvement of corporate governance Disclosure of compliance information Protection of the legitimate rights and interests of shareholders and investors Good return on investment | Regular reports and information announcements Shareholders’ meetings Performance presentations Thematic open-day activities Hotline reply to investors Investor research and communication meetings
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| Clients | Provision of high-quality services Protection of consumer rights and interests Application of financial technologies Popularization of financial knowledge Maintenance of privacy and data security Disposal of public emergencies | 95302 client service hotline Interaction on official website and WeChat platform Client demands questionnaire survey Client satisfaction investigation Client care activities Popularization of financial knowledge
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| Employees | Protection of legitimate rights and interests Sound career development path Protection of health and security Balance between work and life Diversity and inclusion | Perfect remuneration and benefits Workers and staff congress Employee training program Employee career development system Cultural, sports and health activities Symposiums and interviews Interactive platforms such as internal journal or Intranet
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| Suppliers | Good cooperative relations Responsible procurement Protection of intellectual property | Daily communication and exchanges Bidding meetings Field visits to suppliers Regular supplier meetings
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| Partners | Industry cooperation and exchange Integrity and reciprocity Mutual benefits and win-win results | Zijinshan · Xinhe Financier Club Seminars Interbank exchange and cooperation Project cooperation
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| Communities
| Service for people’s livelihood Assistance to rural revitalization Practice of social services Co-construction of beautiful community | “Xin Yi” brand Learning assistance activities for public welfare Disaster and poverty relief activities Fixed-point assistance activities Employee volunteer services Community project construction Community service activities
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| Environment | Response to climate change Conservation of biodiversity Improvement of the use efficiency of resources and energy Reduction of environmental pollution | Green finance Green house Green public welfare Green procurement
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How did the Bank of Nanjing work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?
In its 2023 Principles for Responsible Banking Self-Assessment Report the Bank of Nanjing reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:
Climate Change Mitigation
Throughout the year, the Bank of Nanjing fostered strong relationships with various stakeholders, including government agencies, enterprises, and professional institutions, to advance its green and low-carbon transformation initiatives. In collaboration with the government, the Bank responded to the Notice on Ensuring Financial Linkage Services for Major Provincial Projects in 2023 issued by Jiangsu Province by providing tailored solutions for infrastructure development in areas such as water conservation, transportation, and energy.
The Bank also strengthened its partnerships with government agencies and enterprises to promote environmental protection and green finance. Notably, it launched the “Xindong Green•Park Support Plan” and established a green finance communication platform to support the green development of industrial parks and businesses. Furthermore, the Bank focused on developing green industries, exploring opportunities in emerging sectors with significant green potential, such as lithium batteries, photovoltaics, rail transit, and smart grids. It also optimized resource allocation to support clients in these strategic industries.
To support the transformation of traditional industries, the Bank of Nanjing developed marketing guidelines centred around equipment upgrades, technological innovation, and low-carbon transformation. It provided specialized resources, exclusive products, and streamlined approval processes to cater to the financing needs of clients in key sectors, including steel, non-ferrous metals, petrochemicals, chemicals, electricity, and textiles. By offering tailored support, the Bank aimed to facilitate the transition of traditional industries towards more sustainable and environmentally friendly practices, contributing to Jiangsu Province’s climate change mitigation efforts.
Financial Inclusion
The Bank of Nanjing is committed to broadening the reach of its inclusive financial services. In 2023, the Bank introduced “Xin e Xiao Wei,” a standardized product system for inclusive finance that combines “mortgage +” and “taxation +.” This initiative leverages technological innovation, is supported by scenario ecology, and offers a wide range of services. Over the course of the year, “Xin e Xiao Wei” served more than 70,000 clients.
The Bank also assists clients in enhancing their franchise models through technological finance. It continually enhances its resource integration and allocation capabilities and optimizes “Xin e Ke Qi,” a standout product in scientific and technological finance. The Bank actively promotes its financial offerings related to intellectual property and implements the “park-based government-bank investment” model, aiming to create a comprehensive ecosystem for scientific and technological finance services. This approach integrates the five key chains: policy, technology, resources, industry, and finance, enabling it to offer extensive financial support to enterprises focused on scientific and technological innovation. As a result, by the end of 2023, the Bank’s loan balance in the area of scientific and technological finance reached RMB 84.74 billion, representing a growth of 28.21%.
The Bank of Nanjing has consistently worked to promote rural revitalization. Firstly, with a focus on industrial revitalization, the Bank actively investigates the financing needs of high-quality client groups, such as leading agricultural enterprises, family farms, professional cooperatives of large-scale farmers, and organizations providing agricultural services. It is dedicated to developing a three-dimensional composite agricultural operation system based on family farming, facilitated through collaboration and supported by socialization services.
Secondly, the Bank emphasizes the development of industries that leverage local characteristics. It systematically identifies local dominant agricultural practices and advantageous industrial clusters, creating a service model that focuses on targeted expansion and batched client acquisition.
Lastly, the Bank of Nanjing is committed to ecological revitalization by offering credit support for key rural infrastructure projects, including high-standard farmland development, rural housing improvement, water and power supply systems, and rural road construction. Additionally, it supports emerging industries and business models like red tourism, rural tourism, homestay, and health care.
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 the Bank of Nanjing, 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.njcb.com.cn/njcb/attachDir/2024/08/2024082315593944576.pdf
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