Euromoney guides, June 2009

Chinese companies talk more and more about the importance of CSR. But what are they doing exactly? This is a review of China’s biggest companies and the CSR pledges they refer to in their annual and CSR reports

BANK OF CHINA

Its 76-page CSR report for 2008 highlights the bank’s earthquake response after the Sichuan quake – including heroics at BOC’s Sichuan branch, where the bank says staff saved 21 lives. It established ‘tent banks’ in order to keep emergency financial services moving. The bank says it also set up credit channels to provide loans for rebuilding infrastructure and rescheduled debt for people affected. The bank and its staff donated RMB150 million. The bank also highlights its role as sole banking partner for the Beijing Olympics; its increase of effective credit through the global financial crisis; and the CSR management system it is implementing.

CHINA CONSTRUCTION BANK

2008 interim report details CCB’s response to the earthquake: RMB136 million donations from staff, RMB52 million from the bank (to victims of the earthquake and the vicious snowstorm in 2008), green channels  for financial services, grace periods on loan repayments and free remittances for donations.

ICBC

Its CSR report published in March was the first to be prepared with reference to the 2006 Sustainability Guidelines of the Global Reporting Initiative, with an independent third party appointed for verification. Donated RMB142 million to earthquake relief and provided relief loans. It provided financial support to enterprises “with good fundamentals” that had got into financial difficulties. It is promoting a green credit policy and has imposed limitations on loans to industries with high energy consumption or high pollution, and increased support for environmentally friendly industries. As at end 2008 more than 99% of outstanding loans were to borrowers that meet China’s environmental policy.

SINOPEC

2008 sustainable development report says that 26.8% of Sinopec’s RMB107.3 billion capex in 2008 was devoted to the development and production of cleaner energy. It passed and issued the Employees Code of Conduct “to bolster the level of civilization among employees and promote corporate culture.” Says in the last three years its energy intensity, industrial water demand and COD in discharged water decreased by more than 12% apiece. Supports public welfare and charity programs in Tibet and border areas, sponsoring educational undertakings and poverty alleviation. Donated RMB300 million in earthquake relief. Says it cured 30,000 cataract sufferers through Health Express.

PETROCHINA

Among the most controversial companies in CSR terms because of its involvement in Sudan, Petrochina has published a CSR report since 2006 in accordance with the GRI initiative. It describes its policy as “energize, harmonize, realize”. Implemented an emergency response plan after the earthquake, distributing and transporting 1.038 million tons of refined products to the region in two months. Implemented a “Foundation year of safety and environmental protection” campaign and implemented a new accountability system on safety and environmental protection. Implemented 10 energy saving projects and 10 anti-pollution projects.

CNOOC

Also active after the earthquake, dispatching 14 helicopters for disaster relief alongside reconstruction donations. CSR report discloses management performance in relation to health, safety and the environment under a measurement system set up in 2002. It also details the pollutant prevention measures and management procedures, and discloses the results of a detailed examination of pollution discharge by offshore oilfields. Reducing emissions by re-injecting production water. Has been running a poverty alleviation programme in Tibet’s Nima Country for several years and makes educational donations, including hope schools and a student exchange programme with the Chinese University of Hong Kong.

CHINA LIFE

China Life’s 2008 annual report like many others focuses on disaster relief efforts. It provided free short-term accident insurance to electricity and police staff working against the 2008 snowstorm; made a RMB16 million donation to earthquake relief then raised another RMB33 million through employees, and encouraged employees to make blood donations. It also donated accident insurance to rescue workers, and used its charity foundation to donate for basic living expenses of earthquake orphans until they reach 18. It also set up 69 claim service stations in the area to simplify claims. Elsewhere it is involved in a New Village Cooperative Medical Scheme in 90 counties, affecting around 30 million rural residents. It also established the China Life Volunteers Association

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