China Merchants Bank : ·China Merchants Bank Sustainability Report 2020

2020

China Merchants Bank Sustainability Report

H Share Stock Code: 03968

Preference Share Stock Code: 04614

March 2021

Contents

About this Report ............................................................................................................................ 4

Chairman's Message ....................................................................................................................... 6

President's Message ........................................................................................................................ 8

Our Achievements in 2020 ............................................................................................................ 10

Economy ........................................................................................................................................ 10

Society ............................................................................................................................................ 10

Environment ................................................................................................................................... 10

About CMB ................................................................................................................................... 11

Company Profile ............................................................................................................................ 11

Organizational Structure ................................................................................................................ 12

Accolades ....................................................................................................................................... 13

Strategy and Management ........................................................................................................... 15

CSR Strategy .................................................................................................................................. 15

CSR Management .......................................................................................................................... 16

Materiality Analysis ....................................................................................................................... 17

Stakeholder Engagement ................................................................................................................ 18

01 Fighting the Pandemic Together ............................................................................................. 20

1.1 Helping Customers Overcome Difficulties .............................................................................. 21

1.2 Vigorously Growing Online Business ...................................................................................... 24

1.3 Ensuring Employees' Health and Safety .................................................................................. 26

1.4 Donating Money and Materials to the Needy ........................................................................... 28

02 Outstanding Achievements in the Critical Battle against Poverty ....................................... 30

2.1 More Robust Poverty Alleviation Mechanisms ........................................................................ 31

2.2 More Innovation in Poverty Alleviation ................................................................................... 32

2.3 More Diversified Practices for Alleviating Poverty ................................................................. 37

03 Promoting Green Development and Ecological Construction ............................................. 40

3.1 Tackling Climate Change ......................................................................................................... 41

3.2 Supporting Green Industries ..................................................................................................... 48

3.3 Helping to Protect the Environment ......................................................................................... 50

04 Upgrading Services to Deliver the Best Customer Experience ............................................ 52

4.1 Further Optimizing the Service System ................................................................................... 53

4.2 Providing Quality Financial Products ...................................................................................... 59

4.3 Ensuring Information and Privacy Security ............................................................................. 60

4.4 Actively Protecting Customer Interests .................................................................................... 62

05 Serving the Real Economy and Adhering to Our Original Mission .................................... 71

5.1 Further Advancing Inclusive Finance ....................................................................................... 72

5.2 Supporting National Development Strategy ............................................................................. 77

5.3 Facilitating Industrial Transformation and Upgrade ................................................................ 79

5.4 Ensuring Social and Livelihood Development ......................................................................... 81

5.5 Providing Cross-Border Financial Services ............................................................................. 83

06 Going Digital and Spearheading Fintech Innovation ........................................................... 86

6.1 Building a Strong Fintech Presence ......................................................................................... 87

6.2 Stimulating Vitality for Innovation .......................................................................................... 88

6.3 Creating an Open Ecosystem ................................................................................................... 89

07 Being People-Oriented and Growing with Employees .......................................................... 90

7.1 Attracting Excellent Talents ..................................................................................................... 91

7.2 Providing Clear Career Paths ................................................................................................... 92

7.3 Enriching Talent Development Modes ..................................................................................... 93

7.4 Promoting Light Culture .......................................................................................................... 96

7.5 Caring for Employees in Daily Life ......................................................................................... 96

08 Uniting Everyone's Strength and Encouraging Everyone to Participate in Charity ......... 98

8.1 Expanding Our Charity Platform ............................................................................................. 99

8.2 Promoting Volunteering Services ........................................................................................... 100

ESG Report ................................................................................................................................. 103

Governance Performance ............................................................................................................. 103

Social Performance ...................................................................................................................... 110

Environmental Performance ......................................................................................................... 116

Outlook ........................................................................................................................................ 120

Independence Assurance Report ............................................................................................... 121

Relevant Content Index .............................................................................................................. 126

HKEx Environmental, Social and Governance Reporting Guide Content Index ......................... 126

GRI content index as per GRI Standards ..................................................................................... 130

Reader Feedback ......................................................................................................................... 135

About this Report

China Merchants Bank Co., Ltd. ("CMB", the "Bank", our "Bank" or "We") started to periodically publish non-financial information since 2007. Till 2019, we have published 14 corporate social responsibilities (CSR) reports. In 2020, to better communicate with stakeholders on sustainability topics and our CSR measures and achievements, we changed the name of our CSR Report into Sustainability Report (the "Report"). The Report features CMB's efforts in promoting sustainable development of the economy, society and environment.

Reporting Scope

Organizations covered by the Report: The Report is primarily about CMB and covers the Head Office, branches at home and abroad, CMB Wing Lung Bank Group, CMB Financial Leasing, CMB International Capital, CMB Wealth Management, China Merchants Fund, Cigna & CMB, Merchants Union Consumer Finance, MBCloud, CMB Network Technology and other CMB subsidiaries※.

Reporting Period: From January 1, 2020 to December 31, 2020. Part of the Report is beyond the reporting period in order to ensure consistency.

Release Cycle: This is an annual report. The previous report was released in March 2020.

※: In 2020, we prepared the report based on information collected from all subsidiaries that CMB owns 50% or more stake or indirectly owns 100% stake. Disclosures were made as per our annual sustainability priorities and practices & performances of certain subsidiaries.

Reporting Standards

This Report is prepared in accordance with the "core" disclosure guidelines under Global Reporting Initiative ("GRI Standards") issued by the Global Sustainability Standards Board (GSSB). For details about indicators described in this report, please see pages 130 to 134.

CMB is a listed company (stock code: 03968) on the main board of the Hong Kong Stock Exchange ("HKEx"). The Report also references Appendix 27 Environmental, Social and Governance Reporting Guide of the Main Board Listing Rules of the HKEx. For details about indicators described in the Report, please see the pages 126 to 129. As a company listed on the main board of Shanghai Stock Exchange (SSE) (Stock Code: 600036), we also made reference to related disclosure proposals that were set forth in the SSE Notice regarding the Improvement of Listed Companies' Performance of Social Responsibilities and Issuance of SSE Guidelines for Listed Companies' Disclosure of Environmental Information.

Data and Information Disclosure

The data and information disclosed in the Report is derived from:

•  CMB's internal data collection system and related statistical statements

•  Excellent sustainability practice cases

•  Qualitative and quantitative information collected under the reporting framework

All financial data disclosed in the Report is derived from the 2020 Annual Report of CMB (the "Annual Report"). Should there be any inconsistencies between the Report and the Annual Report, the Annual Report shall prevail. Unless otherwise indicated, the currency used is RMB.