China Construction Bank is the 2nd largest bank in the world, headquartered in Beijing, China with around 13,629 domestic branches. It also maintains overseas presence in Europe, Australia, North America, South-East Asia and Latin America. It was founded in 1954 under the name of People’s Construction Bank of China. Its total assets amount to USD $4,532 billion in 2022.
China Construction Bank discloses the aggregate amount and share of finance it devotes to climate solutions while specifying what these solutions are. It is also committed to minimising its negative impacts on nature and biodiversity.
In terms of its approach to senior leadership accountability, there is no evidence that the financial institution links the remuneration of its executive or management teams to sustainability performance criteria. Moreover, no evidence was found that the financial institution is committed to gender equality and women’s empowerment or that it takes actions to address any gender pay gaps. The financial institution has an opportunity to reach at least 40% female representation in senior leadership positions. It should also aim to have a gender balanced board. Currently, women are underrepresented as only two out of 14 board members are women. Regarding engagement, China Construction Bank has an opportunity to describe its engagement approach on sustainability themes and impact topics with clients and investees.
There is no evidence that the financial institution discloses a target to reach net-zero financed emissions by 2050. Moreover, no evidence of an approach to fossil fuels, which covers the entire fossil fuel value chain and all of the financial institution’s financing activities, was found in the public domain. This could include the amount or share of finance directed towards fossil fuels, or the financial institutions stance on financing companies with new fossil fuel projects. The financial institution has an opportunity to disclose the key sectors and companies it has identified as priorities to engage with on climate change, specifically on alignment with the Paris Agreement. It could also align its climate solutions, with internationally recognised frameworks.
There is no evidence that China Construction Bank has a publicly available policy statement committing it to respect human rights laid out in the UNGPs and the ILO declaration on fundamental rights at work. The financial institution has an opportunity to describe a comprehensive process for identifying its human rights risks and impacts across all its activities, especially its financing activities. It could also establish a grievance mechanism accessible to all workers, external individuals and communities to raise human rights concerns and complaints. To provide transparency on financial inclusivity, China Construction Bank has an opportunity to disclose the amount of finance directed towards, for example, women-owned businesses, small- and medium-sized enterprises (SMEs) or low-income developing countries.
More about the company
Net income: RMB 764.7 billion; Total assets: RMB 30.25 trillion