Case study: How CIB works with its clients and customers to encourage sustainable practices
Founded in 1988 in Fuzhou City, Fujian Province, during the early stages of China’s reform and opening-up, Industrial Bank Co., Ltd. (CIB) has grown to become a prominent financial institution in China. Since its listing on the Shanghai Stock Exchange in 2007, CIB has been acknowledged as a systemically important bank and is regularly placed among the top 20 in The Banker’s Top 1000 World Banks. CIB 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 Sustainability Report by CIB, 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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With this case study you will see:
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- How CIB proceeded with stakeholder identification and consultation, and
- How CIB 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.
Drawing on the United Nations Sustainable Development Goals (SDGs), globally recognized social responsibility standards, specific features of the financial sector, and the bank’s experience in ESG initiatives, CIB has identified six key stakeholders: government officials or banking regulators, the bank’s directors, supervisors, and shareholders, its customers, employees, residents of communities surrounding the bank, and partners (including financial peers, suppliers, and NGOs). In 2023, the stakeholder survey focused on distributing and effectively retrieving questionnaires from customers, directors, supervisors, investors, and other relevant parties, resulting in the recovery of 7,889 completed questionnaires. CIB follows the guidelines set by the Task Force on Climate-Related Financial Disclosures (TCFD), closely tracking the effects of climate risks, proactively evaluating the risks and opportunities presented by climate change, and integrating these factors into its existing risk management framework. The bank regularly analyses, assesses, and develops appropriate response strategies. It places substantial emphasis on and actively supports the sustainable development of the marine economy. In 2020, CIB became the first Chinese institution to join the United Nations Environment Programme Finance Initiative (UNEP FI) “Sustainable Blue Economy Finance Initiative” (SBEFI). For further details, please refer to the “Materiality Analysis,” “Focus Areas and Progress,” and “Blue Finance” sections in the [Governance] chapter of CIB’s 2023 Sustainability Report.
How did CIB work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?
In its 2023 Sustainability Report CIB reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:
CIB works closely with its clients in a responsible way, fostering sustainable practices and supporting the growth of economic initiatives. In 2023, CIB accomplished significant results in collaboration with various stakeholders in areas such as green finance, inclusive finance, biodiversity conservation, and carbon emissions reduction. For more details, please refer to the [Environment] chapter of CIB’s 2023 Sustainability Report.
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.
FBRH Principles for Responsible Banking (PRB) Assurance:
First class PRB assurance services: The result of solid, hands-on ESG/ Sustainability experience
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- FBRH is a GRI Certified Training Partner (Global), ISEP Training Centre and a member of CPD.
- FBRH builds trust. Over 200 reviews from top professionals from around the world demonstrate our ability to build strong, trusting business relationships.
- FBRH possesses a unique skill set that combines ESG/sustainability certified training, experience in advisory services and report preparation, and ESG/sustainability report assurance.
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The combination of all the above empowers FBRH to provide first class Principles for Responsible Banking (PRB) assurance services.
References:
This case study is based on published information by CIB, 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:
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