CCB Releases 2009 Corporate Social Responsibility Report

Being one of the first large state-owned commercial banks to take the initiative to release annual CSR report, China Construction Bank (“CCB”) has recently published its fourth corporate social responsibility report (“CSR report”) since its listing.

CCB 2009 CSR reporthas taken the "Global Reporting Initiative’s Sustainability Reporting Guidelines" (GRI international standards) for reference for the first time, in which it has fully disclosed information and data to demonstrate the Bank’s efforts in actively undertaking corporate social responsibility in corporate governance, economic, environmental and social areas.

The report highlights how CCB, against the backdrop of the ravages of the global financial crisis, has integrated its business development with national marcoeconomic policies and provided better customer services to improve people’s livelihood. CCB has actively supported national economic development, provided good services to the “Three Rurals” and SMEs and exerted great efforts in promoting the “green credit” policy. CCB has also made great efforts in promoting the common development of enterprises and society by caring for its staff and promoting public welfare in which it has achieved good and effective results.

Supporting economic development through prudent operation

In 2009, CCB has been conscientious in implementing various national economic policies. Its credit placement was mainly vested in infrastructure construction, the State’s RMB4 trillion investment projects and in national industrial revitalization. Meanwhile, CCB has seized the opportunity to actively expand emerging businesses such as investment banking and financial management while consolidating its traditional advantages in medium to long term credit business and in residential mortgage loan business. CCB has also realized fast and sound development by intensifying its overall risk management and striving to establish a development model with proper coordination in quantity, speed, structure, quality and efficiency.

Focusing on livelihood improvement and carrying out structural adjustments

CCB has been actively driving for credit structure adjustments by further increasing credit support to sectors, such as the “Three Rural Issues” and SMEs where financial service coverage has been weak. The Bank has also introduced new businesses such as “Farming Household Joint Guarantee Loans” and “Unsecured Petty Loans for Small Enterprises”. As of the end of 2009, the balance of agriculture-related loans was increased by 38.39% to RMB553.747 billion. Of these, the balance of farming household loans was increased by almost one-fold over the previous year. SME loans also witnessed a rapid growth of 19.86% while new products targeting SME clients such as “Chengdaitong” and “e-loan” were introduced. In addition, there has been 140 “credit factories” for small enterprises established. Furthermore, CCB has put efforts to introduce innovative products and services closely intertwined with livelihood improvement. Thus, CCB is meeting customer needs by introducing the “Livelihood Oriented Products” series of integrated financial service programmes in the areas of education, healthcare, social insurance and environmental protection, in order to meet customer demand for different levels of financial services.

Emphasis on environmental protection and implementation of a “green credit” policy

A “green credit” policy has been actively pursued at CCB for the support of environmental and ecological construction. To this end, CCB is offering customers a variety of distinctive green financial services such as clean energy loans, industrial eco-friendly emission reduction loans and loans for the agricultural and forest ecology sectors. The balance of CCB’s green loans reached RMB181.097 billion at the end of 2009, recorded an increase of 17.49% compared with last year. Moreover, strict control of credit supply has been given to high energy consumption and high polluting industries such as steel and cement. CCB has also been withdrawing credit lines from customers who do not meet green credit requirements. In 2009, a cumulative amount of RMB76.724 billion in credit was withdrawn from high energy consumption, high polluting and other industries.

Sustained improvement in services by focusing on customers

In striving to provide customers with convenient and quality standardised services, CCB has been vigorously driving the retail outlet transformation programme. By the end of 2009, 12,968 retail outlets were adopting new service processes for their daily operations. At retail outlets which have undergone a transformation, customer waiting time has been reduced significantly. In fact, 71% of the customers experience less than 10 minutes waiting time. In 2009, CCB added 4,125 sets of ATMs and 4,524 self-service banks. These, together with improvements in e-banking channels, offered additional convenience extensive clients.

CCB highly values customer demand and feedbacks. In 2009, it received more than 18,000 visitors in CCB Customer Days and 80% of the problems and suggestions collected had been solved. The 1,400 or so customer complaints were received through the 95533 Customer Service Centre and all these complaints had been properly handled.

Protecting staff interest and caring for staff growth

CCB has focused on improving CCB’s democratic management culture and giving respect and protection to staff interests. In 2009, the Bank held the second meeting of the second session of the CCB Employee Representative Assembly in which over 360 staff representatives and observers were briefed by management on bank operation. CCB also proactively concerned about the physical and mental health of its staff. In 2009, approximately RMB450 million was allocated for staff training, which involved training courses totalling 24,486 times, branches at different tier levels are initiating employee caring activities. To help nurture a positive mentality among staff members so that they can effectively deal with competition and stress, and enjoy healthy physical and mental development, different approaches such as stress management, occupational mental health training, psychological counselling and team building are employed. For CCB’s ex-employees, it will, under lawful conditions, actively seek to help solve their social security problems and provide assistance to those in dire difficulties.

Carrying out public welfare programmes to repay society

In 2009, as a way of repaying society and promoting harmonious development among regions, CCB implemented 13 programmes related to public welfare. Among them, the “CCB Scholarships and Grants for College Students from Ethnic Minorities” programme was kicked off in 2009. It will be implemented in 16 provinces and autonomous regions in Inner Mongolia, Xinjiang, Tibet, Guangxi and Ningxia which have a high concentration of ethnic minorities in 2010.

Among the long-term public welfare programmes CCB has been maintaining, the “Sponsorship Programme for Impoverished Mothers of Heroes & Exemplary Workers in China” has cumulatively sponsored 40,043 person times while financial support has been provided to mothers for 3,607 person times through the "Financing Programme for Impoverished Mothers of Heroes & Model Workers in China”. The Bank has also contributed towards the building and maintenance of an accumulated number of 35 CCB Hope Primary Schools. CCB was the sponsor for “Global Think Tank Summit 2009”, the Sino-US Symposium on “Building the Financial System of the 21st Century” and the 2009 Spring Members’ Meeting of the International Finance Research Society. The Bank has actively supported the recovery of global financial crisis through relevant academic research and exchange activities.

According to Mr. Guo Shuqing, CCB Chairman, the Bank’s support for national economic growth will be coupled closely with the development of its banking business in 2010; a change in its mode of development will be actively sought while the asset quality will be continuously raised. The Bank will continue driving for structural adjustments in full gear and provide more support to SMEs, the “Three Rural Issues” and livelihood sectors, as well as increasing the support to the low-carbon economy and environmental protection industries. CCB will support the upgrading of domestic industries and expand personal consumption. In addition, the Bank will take note of changes in customer needs, accelerate the pace of product innovation and raise customer service standards. It will take good care of associate development by creating more room for their development. Last but not least, CCB will continue to support public welfare causes and contribute even more towards the development of the society in a balanced and coordinated manner.