Case study: How PSBC identifies and works on strategic business opportunities to increase positive and reduce negative impacts
As a prominent retail bank in China, Postal Savings Bank of China (PSBC) remains committed to serving Sannong customers, urban and rural residents, and SMEs. Leveraging its distinctive model and resource advantages, including directly-operated and agency outlets, it focuses on delivering services to the most vibrant customer segments that fuel China’s economic development. The bank operates nearly 40,000 outlets and has provided services to over 670 million individual customers. PSBC 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 2025 Interim Environmental Information (Sustainable Finance) Report by PSBC 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 PSBC proceeded with stakeholder identification and consultation, and
- How PSBC 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.
PSBC maintains ongoing communication with its stakeholders through both formal and informal channels, including the collection of policy documents, working meetings, daily interactions, and special reports. Stakeholders encompass government and regulatory agencies, shareholders and investors, employees at all levels within the bank, customers, suppliers, financial peers and industry associations, domestic and international organizations promoting sustainable development, and professional institutions.
How did PSBC identify and work on strategic business opportunities to increase positive and reduce negative impacts?
In its 2025 Interim Environmental Information (Sustainable Finance) Report PSBC reports that it identified and worked on strategic business opportunities to increase positive and reduce negative impacts as follows:
Building on innovative products centred around “carbon emission reduction information,” PSBC has introduced offerings such as personal carbon emission reduction redemption, carbon reduction loans, and corporate ecological credit loans. To assist enterprises in achieving green transformation and sustainable development, as well as to explore carbon account asset innovation, PSBC launched carbon reduction loans aimed at directing funds toward energy-saving and emission-reduction companies and supporting carbon reduction goals. PSBC’s Shenzhen Branch successfully launched the bank’s first carbon reduction loan, linking interest rates to enterprises’ carbon ratings and carbon reduction performance. This loan was priced at 110 basis points below the reference rate, actively aiding enterprises’ green and low-carbon transition.
PSBC places great importance on blue finance, continuously advancing this sector through organizational restructuring and innovative business initiatives. In 2023, the bank signed the UN Sustainable Blue Economy Finance Initiative, becoming the first major state-owned commercial bank in China to do so. Regarding product development, PSBC launched Jiangsu Province’s first “Shellfish Marine Blue Carbon Sink Loan – Clam Loan.” The PSBC Dafeng Sub-branch in Yancheng City granted a one-year, RMB 10 million loan to Jiangsu Haiyue Industry Co., Ltd., specifically for purchasing clam fry. This product leverages the carbon sink potential of mudflats. In the marine shellfish breeding sector, it creatively aligns financial services with the theme of “realizing the value of marine ecological products” and emphasizes “carbon sinks.” By using the annual carbon reduction and sequestration income rights generated by clam aquaculture as supplementary collateral and credit enhancement, the product effectively addresses collateral shortages faced by marine aquaculture loans, establishing a green channel for financial support to help realize the value of marine shellfish ecological products.
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 PSBC, 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.psbc.com/en/investor_relations/social_responsibility/202509/P020250903548896602757.pdf
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