1. Environment-Related Governance Framework

1.1 Board of Directors

The Board of Directors and its Risk Management Committee perform climate change-related governance functions, review climate risk management initiatives, regularly receive updates on the Bank-wide climate risk management progress, and promote the integration of climate risk factors into the formulation and adjustment of overarching strategic plans.

The Strategic and Sustainable Development Committee under the Board oversees the Bank’s ESG system development, reviews the strategy and objectives for green finance, monitors and evaluates the implementation of green finance initiatives, and actively advances ESG-related tasks required by regulators.

1.2 Board of Supervisors

The Board of Supervisors places high importance on overseeing ESG-related work, including environmental management. In 2024, the Board of Supervisors prioritized issues such as green finance, received branch-level green finance implementation measures, and provided constructive feedback and recommendations.

The Board of Supervisors incorporated green finance performance as a key metric in evaluating senior management’s performance, while monitoring the Board and senior management’s efforts in areas such as green finance.

1.3 Senior Management

The Senior Management has established dedicated deliberative bodies as governance units for environment-related matters, responsible for formulating development plans, conducting daily oversight, and supervising environmental risk management in business operations.

Credit Approval Committee of the Head Office: Chaired by a Vice President, this committee conducts risk reviews for all credit-granting and non-credit-granting businesses, encompassing environmental and climate risks. The committee adheres to the “one-vote veto system for environmental protection”, evaluating clients’ production processes, energy consumption levels, pollutant emissions, and impacts on ecosystems and biodiversity.

Green Finance Leadership Group: Led by the Chairman, this group formulates green finance strategies and objectives, coordinates the Bank-wide development of green finance businesses, receives progress reports, and guides the implementation of green finance initiatives.

1.4 Operational Layer

Green Finance Management Enhancement Task Force has been established to improve the green finance management system, strengthen top-level green-related design, enhance environmental and climate disclosure standards, conduct environmental and climate risk stress testing, and elevate the Bank’s green performance.

Green Finance Business Promotion Task Force has been formed to advance green credit, green bonds, and related businesses by aligning policies and resources, refining processes, and meeting regulatory requirements. The task force drives innovation in green financial products and services, engages with carbon trading exchanges, and expands carbon trading-related operations.

2. Environment-Related Management System

2.1 Top-Level Design

The Bank formulated the China CITIC Bank Green Finance Development Plan (2024-2026) to define medium-term green finance development directions. Through the China CITIC Bank Special Action Plan for Advancing Green Finance, the Bank proposed detailed actionable measures to drive concrete progress in green finance initiatives.

The China CITIC Bank Climate Risk Management Guidelines were established to clarify responsibilities for climate risk management and requirements for risk identification, assessment, and mitigation, continuously improving climate risk response measures.

The China CITIC Bank Green Office Guidelines were introduced, setting green operational targets and promoting sustainable practices. The Bank systematically manages its environmental footprint across five areas, including energy use, carbon emissions, water consumption, paper usage, and waste generation to reduce resource consumption and pollutant emissions.

2.2 Organization Support

The China CITIC Bank Green Finance Demonstration Institution Management Measures (Trial) were implemented, establishing a green finance demonstration framework with three tiers: “Head Office-Level Green Finance Demonstration Institutions”, “Branch-Level Green Finance Specialized Institutions”, and “Carbon Neutral Branches”.

Through coordinated efforts across the head office, branches, and sub-branches, the Bank efficiently conducted a three-year greenhouse gas inventory (historical data).

2.3 Risk Management

Climate risks have been integrated into the comprehensive risk management system, with a climate risk management mechanism established to continuously improve risk mitigation measures.

The Bank conducted its 2024 Internal Capital Adequacy Assessment Process (ICAAP), performing climate risk assessments, identification, and indicator reviews, as well as implementing climate risk stress testing.

2.4 Capacity Building

The Bank completed the Specialized Study on Climate Risks to strengthen the professionalism and foresight of its climate change response initiatives.

The Bank actively monitors climate-related regulatory policies and governance requirements, stays informed about advanced climate risk management methodologies and practices, and participates in forums organized by regulators, such as workshops on climate risk management and green finance research under the International Monetary Fund and World Bank’s Financial Sector Assessment Program.

The Bank organized an annual green finance capacity-building training program, achieving full coverage across 37 branches with over 200 participants, further raising awareness of green development. Additionally, on-site training sessions were conducted at branches in Dalian, Changsha, and other locations to explain the green finance development plan and case studies, enhancing branches’ green development capabilities.

Conducting multi-dimensional carbon management training to comprehensively enhance greenhouse gas emissions accounting capabilities. For all employees, the Bank organized the special lecture on the China CITIC Bank’s “Dual-Carbon” Management in Its Own Operations and specialized training sessions on energy conservation and emission reduction practices. For business personnel in key departments, the Bank conducted “Dual-Carbon” thematic training to disseminate knowledge about the strategic background and core principles of the “Dual-Carbon” goals, analyze carbon management methodologies, carbon management in investment and financing, and low-carbon transition pathways. Case studies were integrated to deepen employees’ understanding of green operations, energy conservation, and the rules and practices of carbon inventories. For employees in green operations-related divisions at the Head Office and branches, the Bank delivered the specialized training on the China CITIC Bank’s “Dual-Carbon” Management in Its Own Operations, elevating the awareness of key business departments and enhancing their comprehension of the Bank’s “Dual-Carbon” pathway planning and low-carbon transition strategies.

 *The English version were translated based on the Simplified Chinese version. In case of any discrepancies among the versions, the Simplified Chinese version shall prevail.