Qingdao Rural Commercial Bank: Unfavorable Progress Across ESG Policies

4.86
36 ratings

Qingdao Rural Commercial Bank is a China-based commercial bank principally engaged in corporate banking, retail banking, treasury, and other businesses, including equity investments and related income businesses. An analysis of the company's environmental, social, and governance policies are as follows:


Environment


From an environmental perspective, the company scores unfavorably, outperforming on the Emissions Score front but underperforming on the Emissions Score front.


For instance, it has not implemented a resource reduction policy, which compares to the lack of a clear policy in the prior year. The company has not implemented a water efficiency policy, with a energy efficiency policy not implemented as well. This compares to the lack of a similar policy in the prior year.


Environmental policy areas the company is currently lacking include Environmental Supply Chain Policy, Resource Reduction Targets, Water Efficiency Targets, Energy Efficiency Targets, the setup of an Environment Management Team, Environment Management Training, Environmental Materials Sourcing, and Toxic Chemicals Reduction.


The company has also not implemented renewable energy use, which compares to the lack of a clear policy in the prior year. The company has also notably not implemented green buildings as well, which compares to the lack of a defined policy in this regard in the prior year.


Social


From a social standpoint, the company scores relatively unfavorably, outperforming on the Workforce Score front but underperforming on the Human Rights Score front.


For instance, it has implemented a health and safety policy, which compares to the presence of a clear policy in the prior year. The company has also implemented a Employee Health & Safety Policy, with a Supply Chain Health & Safety Policy not implemented. This compares to the lack of a similar policy in the prior year.


The company has produced a moderate decline in Net Employment Creation relative to the prior year. The Number of Employees from CSR reporting totals 5,198.


As of the latest fiscal year, there have not been Management Departures, while the prior year saw no departures. Meanwhile, the company experienced no strikes this year, which compares to no strikes in the prior year.


Governance


From a governance standpoint, the company scores unfavorably, outperforming on the Shareholders Score front, but underperforming on the Management Score front.


The company does not have a Corporate Governance Board Committee, does not have a Nomination Board Committee, does not have an Audit Board Committee, and does not have a Compensation Board Committee. The company does have a Board Structure Policy and does have a Policy for Board Independence in place. The Board has held 15 meetings in the last fiscal year, with the Board size currently at 12 members based on the latest annual/ESG report.


The Board has an average tenure of 5.1 years, with the Board diversity at 8.3% for gender diversity but lacking cultural diversity.


The company has implemented a Policy for Executive Compensation Performance but has not tied its Executive Compensation Policy to ESG Performance. The company has not implemented a Policy for Executive Retention and has not implemented a Succession Plan, nor has it implemented an External Consultants policy.


The company has not implemented CEO-Chairman Separation and does not have its CEO as a Board member. Its chairman is not an ex-CEO. Board member term duration stands at three years. In total, senior executives' compensation has risen in the latest fiscal year, along with Board member compensation. Notably, the CEO compensation is not linked to total shareholder return. Meanwhile, executive compensation is not linked to long-term objectives. Sustainability compensation incentives have not been implemented. Thus far, there have not been any executive compensation controversies.


Sources:


https://www.qrcb.com.cn/qrcben/tzzgx/dqbg/index.shtml


https://www.qrcb.com.cn/qrcben/tzzgx/shzr/index.shtml


https://www.qrcb.com.cn/qrcben/tzzgx/tzzgg/index.shtml

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