Case study: How China Minsheng Bank works with its clients and customers to encourage sustainable practices
Over the course of 27 years, China Minsheng Bank has developed into a comprehensive banking group, holding financial licenses for commercial banking, financial leasing, fund management, and investment banking outside of mainland China. By the end of 2022, China Minsheng Bank, along with its subsidiaries, reported total assets exceeding RMB 7.25 trillion, with 2,608 business locations across mainland China and a workforce of nearly 60,000 employees. China Minsheng Bank 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 2022 PRB Reporting and Self-Assessment Template 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:
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- 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 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.
China Minsheng Bank places significant emphasis on engaging with stakeholders. By implementing a consistent communication framework, the Bank has protected stakeholders’ rights to access information and participate, gained a comprehensive understanding of their needs and expectations, and proactively addressed their concerns, thereby improving their understanding and appreciation of China Minsheng Bank.
Key issues of interest among primary stakeholders and the main channels for communication and feedback
| Major Stakeholders | Key ESG Topics Concerned | Major Communication and Response Channels |
| Government and regulators | Support for NSOEs, compliant operation, green finance, customer services, rural revitalization, and business ethics | Policy consultation, work reporting, information disclosures, routine inspection, regulatory meetings, and carbon verification |
| Investors/shareholders | Compliant operation, green finance, customer services, employee development, digital finance, and business ethics | Shareholders’ general meetings, information disclosures, regular announcements, and investor hotline |
| Customers | Customer services, digital finance, compliant operation, business ethics, and information security
| Customer satisfaction survey, 95568 hotline, complaints at lobbies, complaints by letters, and visits
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| Employees | Employee development, employment, digital finance, energy conservation and emission reduction, and climate change | Employee representatives congress, employee activities, and employee happiness index survey |
| Community and NGOs | Support for NSOEs, green finance, inclusive finance, rural revitalization, and public welfare and charity | Volunteer activities, community education, and environmental protection actions |
| Suppliers | ESG management of suppliers, compliant operation, business ethics, and energy conservation and emission reduction | Open bidding process, supplier reviews, and supplier hotline
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To thoroughly grasp the perspectives of internal and external stakeholders regarding the relevance of ESG issues, China Minsheng Bank has conducted a survey targeting shareholders, institutional investors, customers, suppliers, and employees. This survey invited participants to assess the significance of ESG concerns from their viewpoints, providing valuable insights and guidance for the Bank’s materiality assessment of ESG issues.
How did China Minsheng Bank work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?
In its 2022 PRB Reporting and Self-Assessment Template China Minsheng Bank reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:
China Minsheng Bank actively supports national strategies, viewing “carbon peaking and carbon neutrality” as vital components of its new development philosophy and integration into the emerging development framework. The Bank prioritizes ecosystem preservation and green development while continually enhancing its comprehensive green financial service capabilities. In 2022, China Minsheng Bank focused on customers’ demands for segmented scenarios, consistently refining its green financial product offerings in areas such as investment, financing, supply chains, and operations. It also expanded the “Minsheng Bank ESG Index Series” and related products and creatively developed the “Minsheng Bank Rural Revitalization Index Series.” Alongside green financial products such as “Green Investment Express, Green Financing Express, Green Chain Express, and Green Operation Express,” the Bank has boosted innovation and support for specialty products like the “Emission Reduction Loan” and “Photovoltaic Loan,” introducing the “E Carbon Loan” and other pioneering green financial offerings. The Bank’s efforts also encompass carbon emission trading, low-carbon energy, low-carbon manufacturing, low-carbon operations, and low-carbon benefits. It has unveiled the comprehensive service plan titled “On the Road with Carbon” and has steadily increased investments in themed bonds, asset-backed securities (ABS), and other standardized assets linked to green finance, significantly backing the transition of economic and social activities toward greener, low-carbon, and sustainable ones.
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 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/CMBCToday/ESG/ESGInformation/index.htm
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