Case study: How China Minsheng Bank promotes a culture of responsible banking among its employees

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 comprehend and address their needs by establishing a long-term communication framework. It focused on material ESG issues as guiding principles for action and reporting disclosures. In accordance with the ESG Reporting Code, China Minsheng Bank has developed different communication channels tailored to its business characteristics and stakeholder types to identify their primary ESG concerns. The table below outlines the key stakeholders, their main ESG concerns, and the corresponding communication channels.

Table: Stakeholder Engagement

During the reporting period, to gain comprehensive insights into the perceptions of ESG materiality from both internal and external stakeholders, China Minsheng Bank carried out 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 perspectives. Serving as a supplement to regular communication channels, the survey provided valuable guidance and support for evaluating the materiality of the bank’s ESG concerns.

How does China Minsheng Bank promote a culture of responsible banking among its employees?

In its 2024 PRB Responsible Banking Progress Statement China Minsheng Bank reports that it took the following actions to promote a culture of responsible banking among its employees:

China Minsheng Bank continuously enhances its employee performance management system, leveraging performance evaluations to support stable business operations and sustainable growth. Regarding evaluation models, the bank established performance assessments based on job responsibilities and professional competence evaluations rooted in employees’ skills. By integrating quantitative and qualitative indicators, China Minsheng Bank provided a comprehensive and balanced appraisal of employees’ contributions, encouraging them to improve their overall capabilities. In setting assessment criteria, the bank incorporated results from inclusive finance and green credit evaluations, along with internal assessments related to consumer rights protection, into the evaluation system for staff involved in relevant roles. For employees handling significant risk issues, a “one-vote veto system” was implemented to reinforce their sense of responsibility and compliance awareness, aligning with the bank’s commitment to sustainable development.

China Minsheng Bank also organized specialized training programs and seminars focused on green finance, covering areas such as green finance development, carbon reduction loans, innovation and promotion of carbon finance, ESG risk management, carbon accounting, and green business identification. These training sessions lasted over 20 hours. They enabled relevant business and risk personnel to gain in-depth understanding of the current state and trends in green finance, explore innovative practices in carbon finance, analyze typical cases like carbon reduction loans and sustainability-linked loans, and learn about ESG risk management requirements. These efforts aimed to further enhance the professional expertise of the bank’s staff in the field of green finance.

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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