【Corporate News】Chiyu Bank and CECEPEC jointly release the first "Chiyu Fujian-Hong Kong ESG Index"
Preface
Chiyu Banking Corporation Limited ("Chiyu Bank") and CECEP Environmental Consulting Group Limited (“CECEPEC”) released the "Chiyu Fujian-Hong Kong ESG Index Report" on 25 September 2023, analyzing the performance of Fujian Province and Fujian enterprises in environmental, social, and corporate governance (ESG) aspects over the past four years. The report also reflects the extent of the collaboration of Fujian and Hong Kong in sustainable development.
The report shows that Fujian Province has made significant progress in the field of sustainable development over the past four years, and the exchanges in the field of sustainable development between Fujian Province and Hong Kong have remained active.
Chiyu Fujian-Hong Kong ESG Index Report
The Chiyu Fujian-Hong Kong ESG Index comprises three sub-indices, namely the Fujian Province Sustainable Development Index, the Fujian-Hong Kong Cooperation Sustainable Development Index, and the Fujian Enterprise ESG Index. The "Overseas Chinese Fujian Enterprise ESG Index" has been established to observe the differences in ESG performance levels between overseas Chinese Fujian enterprises and the overall Fujian enterprises. In order to ensure data accuracy, the index utilizes a scientific assessment system and public data, conducting research and data collection according to a rigorous indicator framework. This index covers key topics in the field of sustainable development and provides important information for the governments of Fujian Province and Hong Kong to formulate sustainable development-related policies and strategies.
The report shows that as of the first half of 2023, the Chiyu Fujian-Hong Kong ESG Index rose to 120 points, while the Overseas Chinese Fujian Enterprise ESG Index reached 122 points. The Chiyu Fujian-Hong Kong ESG Index experienced a cumulative increase of 20% over the past four years, while Fujian Province Sustainable Development Sub-Index increased by 23%. This achievement underscored Fujian Province's robust capabilities for sustainable development, which could be attributed to the supportive policies in place. In recent years, there has been a significant increase in the number of sustainable development-related policies implemented in Fujian Province. These policies covered various areas, including an Action Plan for Carbon Dioxide Peaking, green and low-carbon circular economic development, resource and ecological conservation, energy transition, social security, education, and sustainable investment and financing. With strong government policy support, the green loans and GSSS bonds (including green, social, sustainability, and sustainability-linked bonds) in Fujian Province have experienced rapid growth during the assessment period of the report.
Chiyu Bank's Vice Chairman and CEO, Mr. Zheng Wei, stated,
“Since the 14th Five-Year Plan, governments at all levels have actively implemented the new development concept and accelerated the construction of a green, low-carbon, and circular economic development system. According to the 'Fujian Province Action Plan for Promoting Green Economic Development (2022-2025)' （《福建省推进绿色经济发展行动计划（2022—2025年）》）issued by the Fujian Provincial People's Government in 2022, specific targets for green loans have been set. The aim is to achieve an annual average growth rate of green loans exceeding 25% by 2025, and to double the loan balance by the end of 2025 compared to the end of 2021. This goal is very clear, aiming to inject an engine for high-quality development into Fujian by strengthening green finance, innovative research and development, developing green, low-carbon technologies and new energy industries, and establishing a new green pattern.”
Currently, Hong Kong is the largest source of foreign investment for Fujian and a key destination for outward investment by Fujian enterprises. Agreements on strengthening economic and trade co-operation as well as financial co-operation were signed by the governments of the two regions in 2015, establishing a mechanism for cooperation meetings. So far, four meetings have been held, reaching cooperative agreements in sustainable development-related areas such as economic and trade, finance, innovation, and technology. Against the backdrop of border reopening in the first half of 2023, cooperation and exchanges between Fujian and Hong Kong have become more frequent and normalized during the period. Several exchange seminars have been held, including the Fujian-Hong Kong Economic and Trade Exchange Conference and the Fujian-Hong Kong Digital Economy Cooperation Forum. The cooperation between Fujian Province and Hong Kong has also expanded from the financial and trade domains to other sustainable development areas such as social welfare and livelihood.
Mr. Liao Yuan, Managing Director and General Manager of CECEP (Hong Kong) Investment Co., Ltd., stated:
“In recent years, Fujian Province has achieved rapid development in green and digital economies, with Hong Kong playing an important role in driving this progress. The frequent economic and trade exchanges between Fujian and Hong Kong, along with the expanding cooperation areas, have brought infinite opportunities to both regions. As the first ESG index focusing on Fujian Province and Hong Kong, the Chiyu Fujian-Hong Kong ESG Index provides valuable information for broadening cooperation in the field of sustainable development between the two regions. The professional support provided by CECEPEC will further enhance the index's value. This index will help Fujian-based enterprises take the lead, establish innovative development strategies, and maintain strategic focus from an ESG perspective.”
Conclusion
The report also provides an in-depth analysis of the sustainable development levels and capabilities of listed Fujian enterprises. The results of the Fujian Enterprise ESG Index show a year-on-year improvement trend in the disclosure levels across environmental, social, and corporate governance aspects, with a growth rate of 15% over the past four years. This reflects that amidst the increasing ESG requirements and market attention, listed Fujian enterprises are continuously enhancing their ESG disclosure to meet the demands and expectations of regulatory bodies, investors, and other stakeholders. The report also showcases the leading ESG practices of Overseas Chinese Fujian Enterprises. As businesses with overseas backgrounds and international attributes, Overseas Chinese Enterprises are more familiar with advanced international concepts and management experience. Over the past four years, the ESG index of Overseas Chinese Fujian Enterprises has increased by 22%, surpassing the overall growth rate of Fujian-based enterprises.
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Chiyu Banking Corporation Limited
Chiyu Banking Corporation Limited ("Chiyu Bank") was founded by Mr. Tan Kah Kee, a patriotic overseas Chinese leader in Yongan, Fujian Province, in 1943. The Bank was moved to Xiamen in 1945 after World War II, and was subsequently set up in Hong Kong on 15 July 1947, becoming the 39th licensed bank in Hong Kong. Upon completion of the share transfer on 27 March 2017, Chiyu Bank has become a member of Xiamen International Bank (“XIB”) Group. XIB was ranked 154th in the “Top 1000 World Banks 2022” by total assets by the UK magazine, The Banker, and has been listed in the top 200 global banks for six consecutive years. Established for 80 years, Chiyu Bank has 24 branches in Hong Kong and 7 branches and sub-branches in Fuzhou and Xiamen, Fujian Province, and Shenzhen, Guangdong Province in Mainland. The Bank strives to provide sincere, flexible, customized, and professional cross-border financial services to Hong Kong, Mainland and overseas Chinese customers. After the successful takeover by XIB in 2017, Chiyu Bank has been operating under new management directions and in new business culture. This enables the Bank to achieve steady growth in both customer deposits and loans to customers. By the end of 2022, the Bank’s total assets have exceeded HKD 180 billion.
CECEP Environmental Consulting Group Limited
CECEP Environmental Consulting Group Limited is a professional sustainability consulting company established by CECEP. We are headquartered in Hong Kong with branch offices in Beijing, Shenzhen and Shanghai. Our partners and clients are found throughout Greater China, Europe, and America, covering national governments, industry associations, mainstream financial institutions and nearly 200 well-known enterprises in and out of China. We are committed to providing bespoke solutions to satisfy the specific sustainability needs for various industries, which include sustainability management consulting, green and sustainable finance consulting, climate change and carbon neutrality consulting with implementation solutions, and others.
Joy Song
General Manager, CECEPEC
Co-chair of Greater Bay Area Green Finance Alliance Working Group,HKGFA
Tel：+852 3107 0711
Email：joysong@cecepec.com
CECEPEC: Business Development Department
Tel：+852 3107 2398/+86 0755 2337 3860
Email：inquiry@cecepec.com
Data Sources, Data Processing, and Sample Selection：
1. The compilation of the Chiyu Fujian-Hong Kong ESG Index involved collecting data from official databases, public sources, industry association statistics, and public disclosures of listed companies. The raw data was then normalised to ensure uniformity. To address missing data, particularly for half-year periods, data imputation was carried out by utilising historical values.
2. There was no sample selection in the compilation of the Fujian Province Sustainable Development Index and the Fujian-Hong Kong Cooperation Sustainable Development Index. For the Fujian Enterprise ESG Index, 80 Fujian-listed companies were randomly selected as representative samples. The ESG development of Fujian-listed companies will be evaluated annually based on those samples.
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