China Everbright Bank

China Everbright Bank performs fairly well in two main aspects, with a good amount of disclosure in relation to its governance and financing of underrepresented groups and sectors. Not only does it assign decision-making and oversight responsibility for its sustainability strategy to its highest governance body, but it also assigns responsibility for implementing its sustainability strategy to functions, teams or committees. Additionally, China Everbright Bank links performance criteria for remuneration at the senior executive level to specific sustainability targets. As for financing of underrepresented groups and sectors, China Everbright Bank on discloses the amount and/or share (in monetary terms) of products, services and capital provided to small-and medium-sized enterprises, as well as the rural agricultural sector and pensioners.

China Everbright Bank also has disclosures in other areas as well. When it comes to climate, it transparently identifies the key sectors, clients and investees to engage with on climate issues. It monitors its scope 1-2 emissions as well. China Everbright Bank also discloses the aggregate amount and/or share (in monetary terms) of its provision of products, services and capital devoted to specified nature-positive solutions.

There are various areas where China Everbright Bank could enhance its disclosures in, including its impact materiality strategy, targets and plans, organisational carbon footprint, financing to low and lower-middle income countries and its just transition risk mitigation processes. While China Everbright Bank identifies material sustainability impacts across its value chain, it could further detail its process and how objective criteria and/or supportable evidence were considered for identification and priortization of impacts. It is also recommended for China Everbright Bank to disclose that it conducts third-party assurance or verification of their target reporting. When it comes to organisational carbon footprint, China Everbright Bank has an opportunity to disclose the emissions resulting from its financing activities for the current reporting year of 2023, as well as other Scope 3 categories. While it provides some details regarding the methodology applied in their carbon footprint calculation, it has an opportunity to cover all aspects including emissions coverage for each category, data types, sources for applied emission factors and reference to applied standard. China Everbright Bank could also consider establishing a transition plan covering its own operations, supply chain and portfolio. As for its just transition risk mitigation processes, it has an opportunity to disclose its process for identifying the social risks associated with its provision of products, services and capital in relation to the net zero transition.

China Everbright Bank could also improve its disclosures with regards to the ILO fundamental rights at work by publishing a formal statement committing it to respect the ILO’s fundamental rights at work. It also has an opportunity to disclose how it determines a living wage for the regions where it operates. Lastly, it could also formalise its commitment to uphold anti-bribery and anti- corruption in a public policy document, as well as include anti-bribery and anti-corruption clauses in its contracts with business relationships.

This scorecard refers to information in English which was publicly available by July 15 2024. AuM and Total assets are stated in USD for comparability and have been calculated based on reported local currency values multiplied by applicable IMF currency converter values.