On May 13, the 2024 Fortune China ESG Influence List was announced, and IB became the only commercial bank to be on the list for two consecutive years. This is another accolade in the international ESG field, following last year, when the bank became one of the first listed banks in China to receive MSCI's ESG AA rating.
In recent years, as a pioneer in the field of ESG in China, IB has deeply practiced the political and people's nature of financial work, continuously strengthened the construction of ESG governance structure and management system, explored the win-win development of the bank's economic, social and environmental benefits, and embarked on a path of ESG practice that takes into account international standards and Chinese characteristics.
In terms of governance (G), IB adheres to the concept of sustainable development, innovates the ESG practice model of "embracing righteousness and benefit", incorporates ESG factors into its development strategy and business strategy, and promotes ESG management from the perspective of corporate governance. In 2023, the board of directors of the bank formulated the ESG Policy of Industrial Bank Co., Ltd. and compiled the key points of the annual ESG management system construction, covering the optimization of customer base, customer service enhancement, green financial asset construction, green banking product innovation, rural finance, consumer rights protection, data security and other development priorities. At the same time, the Bank formulated an annual ESG training implementation plan, developed a series of ESG supporting course systems, and carried out ESG culture training from top to bottom under the framework of the "5+N" training system, with the coverage rate of ESG knowledge learning activities for all employees reaching 85.48%.
In terms of environment (E), as the first commercial bank in China to explore green finance, IB integrates the development of green finance and the "dual carbon" strategy with the sustainable development of the bank, and synergistically serves "pollution reduction, carbon reduction, green expansion and growth", actively promotes the green and low-carbon transformation of the economy and society, and becomes a typical example of serving carbon peak and carbon neutrality. As of the end of 2023, the balance of green finance financing of IB reached 1.89 trillion yuan, a year-on-year increase of 16.14%, of which the balance of green loans of the People's Bank of China reached 809.019 billion yuan, an increase of 26.99% over the end of the previous year, and the green projects supported by IB could save 9.52 million tons of standard coal, 22.92 million tons of carbon dioxide emissions and 10.55 million tons of water per year.
In terms of social (S), IB continued to enrich the supply of inclusive financial products, accelerated digital transformation, continuously improved the professionalism of financial services for inclusive small and micro enterprises, fully supported the high-quality development of the real economy, and built a differentiated inclusive financial service model with characteristics. As of the end of 2023, the balance of inclusive small and micro loans was 500.965 billion yuan, an increase of 23.95% from the end of the previous year; the number of inclusive small and micro loans was 231,900, an increase of 16.90% over the end of the previous year; The balance of agriculture-related loans was 664.760 billion yuan, an increase of 21.59% over the beginning of the year, and the balance of inclusive agriculture-related loans was 56.084 billion yuan, an increase of 42.63% over the beginning of the year. IB believes that human resources are the company's primary resource, and a team of high-quality talents is the company's most cherished and precious asset. The bank has clarified the total amount, structure and ability of talent team construction, and built a scientific human resource management system. At the same time, we will continue to increase employee ability training and improve employees' lifelong learning ability, with a total training expenditure of 211 million yuan in 2023 and an employee training coverage rate of 96.36%. In the same year, the bank was awarded the Top 100 Best Employers in China by Zhaopin.com.
It is reported that this selection is the third consecutive year that Fortune magazine has compiled China's ESG influence list. According to the review, China's ESG practices are moving forward steadily and have become a guideline for companies to temper their lasting competitiveness. Companies on this list have made exceptional efforts to improve the environment, protect their employees, and support their communities, navigating economic cycles with sustained and inclusive growth, and earning the respect of the market.