China Merchants Bank

The financial institution assigns decision-making and oversight responsibility for its sustainability strategy to the highest governance body with implementation responsibility delegated to relevant functions, teams or committees.

The financial institution discloses the aggregate amount of its provision of products, services and capital dedicated to specified nature-positive solutions and to small-and medium-sized enterprises. Also, it monitors its scope 1-2 emissions.

The financial institution identifies material sustainability impacts but could provide more detail on its process for prioritising these impacts. Although third-party assurance has been performed, it could ensure to include targets in the scope. Linking senior executive remuneration to specific sustainability targets is also recommended.

The financial institution monitors scope 3 emissions but should specify coverage by category and detail its footprint calculation methodology. Establishing a transition plan for its operations, supply chain, and portfolio is recommended, along with ensuring scope 1-3 emissions align with interim targets.

The financial institution could disclose the breakdown of clients by income group and processes to avoid divestment from low-income countries due to sustainability strategies. The risk assessment process could include ILO fundamental rights risks, with a mitigation process for identified risks. Additionally, it has an opportunity to identify social risks related to the net zero transition and provide examples of actions taken on salient human rights issues of its products, services and capital in the last three years. It commits to respecting the ILO’s fundamental rights at work but has the opportunity to formalise this in a policy document. It can also disclose how it determines a living wage in its operational regions. While it prohibits bribery and corruption, formalising this in a public policy is recommended, along with including anti-bribery and anti-corruption clauses in 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.