China-Singapore Jingwei, December 29 (Sun Qingyang) Recently, the Sustainability Standards Research Center (SSRC) of **University of Finance and Economics compiled and released the "ESG Research Report on the Domestic Banking Industry" (hereinafter referred to as the "Report"), which was authorized by the China-Singapore Jingwei Research Institute to publish.
In order to ensure the quality and integrity of the data, the report selects two authoritative rating agencies, Wind and MSCI, for analysis.
The Wind ESG rating covers 38 banks in the A-share market, and the overall ES** rating of the industry is between BB and A, showing the characteristics of "more in the middle and less on both sides". In terms of comprehensive scores, the average score of the six representative banks is higher than the average score of all A-shares, which is at the upstream level of A-shares. From the perspective of sub-scores, except for the average score of representative banks on disputed events, which is lower than the overall average score of A-shares, the average scores of the other banks are higher than the overall average score of A-shares. At the same time, only China Construction Bank, Bank of Communications and Agricultural Bank of China have proposed decarbonization targets, but none of them have taken into account the decarbonization targets that contribute to global warming.
Based on the Wind ESG rating summary, the report concludes that the ESG ratings of the banking sector representatives are steadily improving and the ratings are concentrated. In terms of sub-topics, Bank of Communications' management practices, controversial events, social and governance issues, as well as environmental issues of China Construction Bank, Agricultural Bank of China and Industrial and Commercial Bank of China, are outstanding in the industry.
In addition, comparing the changes in the ESG ratings of the six representative domestic banks in the past five years, it can be seen that only the ESG ratings of Bank of Communications have declined. For example, the disclosure of "green finance" information is not sufficient, and the amount of green loans used to promote low-carbon environmental protection and the number of beneficiary enterprises are not listed in detail. The remaining five banks' MSCI ESG ratings all showed an increasing trendChina Construction Bank and Postal Savings Bank have received A ratings for three consecutive years, Bank of China and Agricultural Bank of China were upgraded from BBB to A in 2022, and Industrial and Commercial Bank of China was upgraded from A to AA.
Based on the MSCI ESG ratings, the report concludes that the domestic banking industry outperforms environmental and governance issues on MSCI social key issues, and has an advantage over diversified capital markets. On environmental issues, China Construction Bank, Postal Savings Bank and Industrial and Commercial Bank of China are leading the way, while Agricultural Bank of China is lagging behind. In terms of social issues, the six banks are leading the way in terms of human capital and access to financing. The performance of consumer financial protection is relatively poor, with China Construction Bank, Postal Savings Bank and Bank of Communications all lagging behind. In terms of governance issues, except for the Postal Savings Bank, the other five banks are at a backward level in terms of corporate behavior.
On the whole, these six commercial banks have strong ESG risk and opportunity management capabilities. It can better control ESG risk exposure, innovate ESG wealth management and other businesses, and play a leading and exemplary role in green credit, green bond scale and product innovation.
According to the report, the banking industry, as an important credit delivery institution, has provided continuous and high-quality financial products and services for the "green" field in recent years, and continued to contribute to the "dual carbon goals" of "green finance". The banking industry needs to further strengthen the disclosure of green finance information, which is of great significance to ensure the flow of funds to green industries. (Zhongxin Jingwei app).
The full text of the report can be obtained by scanning the QR code
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Editor in charge: Song Yafen.
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