Case study: How PSBC works with its clients and customers to encourage sustainable practices

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.

In 2023, PSBC maintained engagement with its stakeholders via both formal and informal methods, including daily interactions, policy document reviews, working meetings, and special reports. These stakeholders encompassed government and regulatory bodies, shareholders and investors, employees across all levels of the Bank, customers, suppliers, financial peers and industry associations, as well as domestic and international sustainable development advocacy groups and professional organizations.

How did PSBC work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?

In its 2023 Environmental Information Disclosure (Green Finance) Report PSBC reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:

Regarding green finance:
PSBC has been proactively advancing carbon accounting for corporate clients, focusing on those without mandatory environmental information disclosure. It offers real-time online greenhouse gas (GHG) emissions accounting for businesses. By the end of 2023, the bank had completed carbon accounting for 4,067 corporate clients, with 1,885 new clients added during the year, representing an 86.39% increase. PSBC also promoted sustainability-linked financial products and issued China’s first “just-transition loan,” with part of the funds allocated for rotation training and operational qualification training for employees related to low-carbon transition and development. PSBC also launched the first “carbon emission reduction facility + sustainability-linked + e-CNY loan” loan business in the country. The loan links the loan interest rate to the newly installed capacity of renewable energy power generation by the borrower during the agreed period, to encourage voluntary emission reductions. Additionally, PSBC launched the personal carbon account in the low-carbon zone of its mobile banking app, recording the account holder’ s daily low-carbon behaviour and encouraging customers to adopt eco-friendly and low-carbon lifestyles. In supply chain management, PSBC requires suppliers to sign and adhere to the Energy Conservation, Emissions Reduction, and Green Development Agreement, promoting shared corporate social responsibility (CSR) for green practices and environmental protection.

Regarding inclusive finance:
PSBC initiated a pilot project to realize the value of ecological products through financial services. It introduced the “Eco-credit Loan,” a pure credit loan for rural households, based on the local “Green Valley Points,” to facilitate the sustainable development of both the gross ecosystem product (GEP) and regional GDP. PSBC also implemented the carbon credit evaluation pilot system, the first in China, to provide targeted inclusive financial service tools for micro and small enterprises (MSEs), using the carbon credit rating results as a criterion for business approval in Zhejiang.

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

• • • 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.

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/202406/P020240618567910201296.pdf

Note to PSBC: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.