Xiamen Bank Signs the UN PRB principles
Xiamen Bank Signs the UN Principles for Responsible Banking
4th November 2024, Geneva – Xiamen Bank has become an official signatory of the UN Principles for Responsible Banking – a single framework for a sustainable banking industry developed through a collaboration between banks worldwide and the United Nations Environment Programme Finance Initiative (UNEP FI).
The Principles are the leading framework for ensuring that banks’ strategy and practice align with the vision society has set out for its future in the UN Sustainable Development Goals and the Paris Climate Agreement. Banks who have signed the Principles commit to be ambitious in their sustainability strategies, working to mainstream and embed sustainability into the heart of their business, while allowing them to remain at the cutting-edge of sustainable finance.
Under the Principles, signatory banks identify and measure the environmental and social impact resulting from their business activities, set and implement targets where they have the most significant impact, and regularly report publicly on their progress. The Principles provide a framework for banks to systematically understand the risks and seize the opportunities arising from the transition to more sustainable economies.
Signatories to the Principles take on a leadership role, demonstrating how banking products, services and relationships can support and accelerate the changes necessary to achieve shared prosperity for both current and future generations, building a positive future for both people and planet. These banks also join the world’s largest global banking community focused on sustainable finance, sharing best-practice and working together on practical guidance and pioneering tools of benefit to the entire industry.
This is a journey of unprecedented scale and scope at a time when such ambition is urgently needed to address the major planetary crises of climate change, nature loss, pollution and social issues. Together, these efforts will ensure that profitability goes hand in hand with a sense of purpose.
Xiamen Bank highly recognizes green and sustainable philosophy. Xiamen Bank has incorporated green finance into its overall corporate strategy, and continuously prioritizes the allocation of financial resources towards sectors that contribute to environmental protection and sustainable development, such as green economy, low-carbon economy and circular economy. At the top level, we established the Strategy and ESG Committee under the Board of Directors, which formulated “Xiamen Bank Sustainable Development (ESG) Strategic Plan (2024-2026)”, comprehensively created a roadmap for green finance and sustainable development, and set standards for completing strategic tasks to ensure thorough and effective implementation of our green finance and sustainable development programs. At the operational level, we set up a Green Finance Leadership Group, a Green Finance Working Group, and a Green Finance Department at the head office, and appointed green finance liaison officers at branches. We also worked out and launched plans to steadily and systematically advance green finance and sustainable development efforts. Building on this foundation, Xiamen Bank has optimized the allocation of green credit, which is clearly defined in the bank’s annual credit policy as an encouraged lending area. At the same time, we have compiled a target client list for green financing, and encouraged our branches to prioritize green credit. At the same time, we have explored and innovated green credit approval processes. For high-quality green projects with good credit ratings and strong financial capabilities, the approval process will be simplified, to improve the timeliness of green credit, creating a virtuous circle for maximizing green credit.
Hsin-hao Wu, CEO and President, stated:
“We are honored to be the first city commercial bank in Fujian Province to commit to the UN Principles for Responsible Banking. Xiamen Bank is dedicated to fully embracing these Principles, with our board and management committed to sustainable development.
Green and sustainable growth is essential for banks today, and Xiamen Bank will continuously pursue innovation and strengthen our capabilities in this area. We aim to not only meet global standards but to set new benchmarks in sustainable banking for the region. In the coming years, we will increase investments in green finance, promote environmentally responsible lending, and actively support projects that align with UN SDGs and carbon reduction goals. We are committed to leading by example and cultivating long-term, positive change within our industry. We hope to thrive in the fertile ground of sustainable development.”
More information on the Principles for Responsible Banking:www.unepfi.org/responsiblebanking