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
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

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.

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 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

Note to China Minsheng Bank: 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.

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
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

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

• • • 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 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

Note to China Minsheng Bank: 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.