Case study: How China Minsheng Bank identifies and works on strategic business opportunities to increase positive and reduce negative impacts
China Minsheng Bank was officially founded in Beijing in January 1996. It is China’s first national joint-stock commercial bank primarily initiated and established by non-state-owned enterprises. Over the years, it has developed into a banking group with total assets exceeding RMB 7.8 trillion, net assets over RMB 640 billion, more than 2,400 operating units, and nearly 63,000 employees. Its services encompass commercial banking, financial leasing, fund management, global investment banking, wealth management, and other financial activities. China Minsheng Bank is a signatory of the Principles for Responsible Banking (PRB) and is, accordingly, identifying and working on strategic business opportunities to increase positive and reduce negative impacts. Tweet This!
This case study is based on the 2024 PRB Responsible Banking Progress Statement by China Minsheng Bank 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:
- Principle 3: Clients and Customers
- Principle 4: Stakeholders
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- How China Minsheng Bank proceeded with stakeholder identification and consultation, and
- How China Minsheng Bank identified and worked on strategic business opportunities to increase positive and reduce negative impacts
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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.
China Minsheng Bank proactively engaged with its stakeholders to better understand and address their needs by establishing a long-term communication framework. The bank focused on material ESG issues as guiding principles for its actions and report disclosures. In accordance with the ESG Reporting Code, China Minsheng Bank has developed various communication channels tailored to its business features and stakeholder types to identify their key ESG concerns. The table below outlines the major stakeholders, their main ESG priorities, and the corresponding communication methods.
Table: Stakeholder Engagement
| Major stakeholders
| Key ESG issues | Main communication and feedback channels |
| Government and regulators | Green development opportunities, climate change and the “Carbon Peak and Carbon Neutrality” goals, green operation and energy saving and emission reduction, rural revitalization, NSOEs and MSEs, inclusive finance, information security, people-oriented development and public welfare and charity | Policy consultations, work reports, information disclosures, routine inspections, regulatory meetings, carbon verification |
| Investors/ shareholders | NSOEs and MSEs, inclusive finance, customer service and business ethics | Shareholders’ meetings, information disclosures, regular announcements, investor hotline |
| Customers | Green development opportunities, climate change and the “Carbon Peak and Carbon Neutrality” goals, information security, people-oriented development and business ethics | Customer satisfaction survey, 95568 hotline, complaint at lobbies, complaint by letter and visits
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| Employees | NSOEs and MSEs, customer service, information security, people-oriented development and business ethics | Employee representatives congress, employee activities, employee happiness index survey |
| Community and NGOs | Green development opportunities, climate change and the “Carbon Peak and Carbon Neutrality” goals, green operation and energy saving and emission reduction, rural revitalization, inclusive finance, customer service, information security, people-oriented development, public welfare and charity, business ethics and ESG management of suppliers | Volunteer activities, community educations, environmental protection actions |
| Suppliers | Rural revitalization, NSOEs and MSEs, customer service, information security, business ethics and ESG management of suppliers | Open bidding process, supplier reviews, supplier hotline
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During the reporting period, to gain comprehensive insights into the perceptions of ESG materiality from both internal and external stakeholders, China Minsheng Bank conducted a questionnaire survey targeting groups such as shareholders, institutional investors, customers, suppliers, and employees. This survey invited them to assess the significance of various ESG issues from their own viewpoints. Serving as a supplement to regular communication channels, the survey offered valuable guidance and support for evaluating the materiality of the bank’s ESG concerns.
How did China Minsheng Bank identify and work on strategic business opportunities to increase positive and reduce negative impacts?
In its 2024 PRB Responsible Banking Progress Statement China Minsheng Bank reports that it identified and worked on strategic business opportunities to increase positive and reduce negative impacts as follows:
Green Finance:
China Minsheng Bank actively supported environmentally friendly financing needs, continuously enhanced its sustainable development and green finance product offerings, and provided comprehensive support for the advancement of green finance. Firstly, the bank strengthened its green finance brand development. In 2024, it continued to refine a multi-tiered green finance marketing system across the Head Office and branches, while vigorously expanding its “Minsheng Carbon Peak and Carbon Neutrality” green finance product and service ecosystem. By focusing on segmented scenarios and fostering ongoing innovation and industry integration, China Minsheng Bank launched comprehensive financial solutions tailored to sectors such as the China Certified Emission Reductions (CCER) carbon market, marine economy, forestry industry chain, and new energy vehicles. Additionally, it enhanced innovation in carbon-related financial products and models to better support green and low-carbon initiatives.
Secondly, China Minsheng Bank pioneered green finance product innovation. It actively explored innovative carbon finance businesses and successfully implemented various initiatives, including two-way linked loans supporting sustainable development, loans tied to green project evaluations, and automotive carbon footprint-linked loans.
Thirdly, China Minsheng Bank promoted carbon trading product innovation by developing regional carbon finance services and carbon-linked transformation loans, and issuing the first automotive carbon footprint-linked loan.
Fourthly, China Minsheng Bank advanced green finance investment instruments. It jointly launched the “Shanghai Clearing House-China Minsheng Bank Green Bond Selected Index” and related products with the Shanghai Clearing House.
Fifthly, China Minsheng Bank engaged in supply chain green finance practices, establishing in-depth collaborations with state-owned enterprises such as State Grid and China Southern Power Grid. It introduced various financial instruments, including order financing and accounts receivable financing, to help power suppliers address funding shortages and support state-owned power enterprises in deploying charging infrastructure—laying a solid foundation for the broader adoption of new energy vehicles.
Inclusive Finance:
China Minsheng Bank continuously advanced the digital, intelligent, and high-quality development of inclusive finance, ensuring stable and manageable asset quality while enhancing service quality and effectiveness. On one hand, the bank focused on specialized management of scenario-based businesses, offering tailored products and services for customers in specific sectors. It strengthened services in key areas such as DRDI enterprises and foreign trade, upgraded the “Easy Innovation” series products exclusive to DRDI enterprises, and provided convenient online services for foreign trade firms through offerings like Cross-Border E-Finance and Shipping Remittance Express. China Minsheng Bank also promoted the “Honeycomb Plan” and developed customized differentiated service solutions for small business customers in targeted scenarios, supporting the growth of regionally distinctive industries.
On the other hand, China Minsheng Bank maintained a comprehensive customer service approach, delivering diversified and adaptive services for micro and small enterprises (MSEs). It optimized common processes such as issuing bank acceptance bills and non-financing letters of guarantee for MSEs. The bank promoted the comprehensive services of “E- Minsheng Family”, providing MSEs with digital management tools for personnel, payroll, tax management, one-stop payroll services, and employee benefits. It built a comprehensive service system of “settlement + financing + benefits + SaaS + business cycle and life cycle integration.”
Additionally, throughout the year, China Minsheng Bank actively promoted coordinated efforts between inclusive finance and rural revitalization. It innovated digital and smart agricultural service models and launched the online “Digital Agricultural Loan Express” product with multiple options to support food security. The bank continued to upgrade products such as “Cotton Grower Loan,” “Harbin Farmer Loan,” “Photovoltaic Loan,” and “Sugarcane Grower Loan,” expanding regionally tailored services and improving the experience for farmers. It introduced the “B&B Loan,” a specialized product for rural tourism, to support farmers in starting businesses and increasing their incomes based on local advantages. China Minsheng Bank also continued to promote inclusive finance security awareness and offer exclusive services and products for farmers, making financial services more accessible. In response to climate-related crop damages, the bank proactively supported affected agricultural loan customers through measures such as loan renewal without principal repayment, interest reductions or exemptions, and distributing small business red envelopes for farmers.
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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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 China Minsheng Bank, 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://en.cmbc.com.cn/cmbc_en/cmbc_today/esg/esg_information/index.html
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