Sustainable Development SPDB's Response: Elevating ESG Strategy to Unlock New Growth Opportunities

When the spring breeze turns the pages of 2025, SPD Bank delivers a report that is both substantial and refreshing.

This year, SPD Bank Group’s total assets surpassed 10 trillion yuan, net profit attributable to shareholders grew double digits for two consecutive years, green credit balances increased by 24% year-on-year, technology finance loans exceeded 1.04 trillion yuan, and the scale of inclusive “two-increase” loans reached a recent high… Behind these figures, there is a consistent green undertone and a sense of responsibility—ESG principles have become as vital as blood flowing through the veins, blooming sustainable flowers on the fertile ground of finance.

On the evening of March 30, alongside the release of its annual report, SPD Bank also published the “2025 Sustainability Development Report” (hereinafter referred to as the “Report”).

Looking back at 2025, SPD Bank navigated with its digital intelligence strategy as the helm and sustainable development as the sail, embedding the genes of green, inclusive, and governance into every loan, every product innovation, and every service touchpoint. From supporting the “dual carbon” goals through green finance, to nourishing millions with inclusive services, from strengthening corporate governance to driving technological transformation, this nationwide joint-stock bank headquartered in Shanghai is writing an era of harmonious coexistence between humans and nature, economy and society through the power of finance.

Turning Green into Gold: Nourishing a Low-Carbon Future with Financial Flows

In the grand narrative of carbon peaking and carbon neutrality, SPD Bank chooses to be a pragmatic “Green Pointing Master.” It no longer relies solely on traditional credit support but actively builds service systems around low-carbon development, including green finance, transition finance, and carbon finance, precisely irrigating energy revolution and ecological protection.

SPD Bank’s “green layout” begins with continuously improving a comprehensive financial service system for green and low-carbon transformation, supporting energy structure optimization and ecological environmental protection in areas such as green finance, transition finance, and carbon finance.

By the end of the reporting period, the green credit balance was 100k yuan, up 23.95% from the previous year; green new energy vehicle loans reached 10.4k yuan, accounting for 50.59% of retail auto loans, an increase of 17.57 percentage points from last year; the bank underwrote 707.37B yuan of green bonds, with an additional investment scale of 23.08 billion yuan in local currency green bonds; the balance of local currency green bonds was 19.12B yuan, green ABS balance was 9.23B yuan; green product custody scale reached 25.32B yuan, an increase of 65.24% from the previous year.

More imaginative is SPD Bank’s bold innovation in financial instruments. The “Carbon Account+” service system offers enterprises one-stop services including carbon data collection, emission accounting, carbon rating, and exclusive carbon rights. It facilitated the first industrial low-carbon transformation loan in the banking industry nationwide, providing a “timely rain” for the green transformation of key industrial sectors. The “SPD惠租” household photovoltaic business turns sunlight into tangible carbon reduction power, with cumulative loans exceeding 23.4 billion yuan, reducing over 7.11 million tons of carbon—equivalent to planting 397 million trees.

Additionally, SPD Bank has implemented a carbon control smart platform from head office to branches and the “Zero Carbon” branch practice. Currently, 13 branches across 146 outlets pilot the SPD Cloud Carbon Control Smart Electricity Management Platform, continuously reducing operational carbon footprints; branches in Hangzhou, Shanghai, and others have maintained “carbon neutrality” evaluations for years, with the Hangzhou Branch’s Huzhou Anji Branch becoming the first bank branch in the country to receive dual international and domestic certification as a “Zero Carbon” branch.

Beyond that, SPD Bank’s deep integration in group collaboration is evident. The group’s subsidiaries, Shanghai Trust’s green finance business, with a scale exceeding 21 billion yuan; Puhui Ansheng’s green finance exceeding 6 billion yuan; Puhui Jinzu’s green leasing assets accounting for 31% of leasing assets; and Puhui Wealth’s investment in green finance growing at 28%, all demonstrate concerted efforts toward low-carbon initiatives.

Inclusive Finance for the People: Warmth of Finance Reaching Every Corner

Finance should not just be a scenic view from above but a warm current flowing below. SPD Bank understands that true sustainable development must resonate with the people and align with people’s livelihoods.

In 2025, SPD Bank launched the “PuGungYing” public welfare brand, carrying out 55 public welfare projects in rural revitalization, education care, healthcare, and environmental protection, with a total donation exceeding 58 million yuan. The “Space Rebirth” public welfare program improves living conditions for vulnerable groups, while the “SPD Rural Companion” financial service brand extends its reach into rural areas, benefiting over 600k rural residents throughout the year.

The “last mile” of inclusive finance is accelerating. At the end of the reporting period, the balance of inclusive “two-increase” loans was 11.22B yuan, an increase of 75.77B yuan from the previous year, up 12.51%, reaching a four-year high, ranking second among joint-stock banks in annual growth. The “Thousand Enterprises and Ten Thousand Households Smart Benefit” activity has rooted micro and small enterprise financing coordination mechanisms; by the end of 2025, 77.5k clients were connected and recommended, with a total credit line of 677.8 billion yuan and total disbursed amount of 492.3 billion yuan.

The product system supporting inclusive finance continues to innovate, supporting the development of micro and small business entities. The digital “Puhui Loan” series had a loan balance of 140 billion yuan, up 192% from last year, becoming a “warm” loan favored by micro and small business owners.

Digital financial empowerment is equally remarkable. Mobile banking apps, Puhui Lai Le app, telephone banking, remote banking, “Cloud Counter,” and other online channels continuously improve financial accessibility, focusing on elderly customers, special groups, micro and small enterprises, rural enterprises without internet access, and individual businesses, building an online service system with full-process companionship, one-stop processing, and rapid response. By 2025, the personal mobile banking app served 9.2657 million elderly customers, and 91k cloud counter transactions were processed via mobile banking.

Upholding the “customer-centric” philosophy, SPD Bank attaches great importance to consumer rights protection. The “Report” states that multi-channel customer complaints have decreased year after year, with a 100% resolution rate; over 36k financial knowledge education activities were conducted, reaching more than 450 million people. In data security and privacy protection, SPD Bank has built a comprehensive lifecycle protection system—ensuring every click and transaction is safe and secure.

Good Governance for the Long Term: Building a Solid Foundation with Institutional Systems

In corporate governance, SPD Bank deeply integrates ESG concepts into modern governance systems, establishing a sound governance structure, rigorous risk management, responsible supply chain co-creation, and scientific internal assessment mechanisms to lay a solid foundation for sustainable development.

Governance structure continues to optimize, with ESG responsibilities embedded at the top level. SPD Bank has established a top-down, clear responsibility governance framework, with the Board of Directors and its committees overseeing the formulation and implementation of sustainable development strategies. In 2025, the bank further refined its top-level design for sustainable development, establishing an ESG Promotion Committee, continuously improving risk management systems, and formulating environmental, social, and governance risk management measures and operational procedures, integrating ESG risks into comprehensive risk management and risk appetite frameworks, enhancing governance transparency and resilience.

Risk management has been comprehensively upgraded, with data security forming a protective barrier. The bank incorporates ESG risks into its overall risk management system, with policies such as the “Environmental, Social, and Governance Risk Management Measures” and operational procedures, conducting ESG risk classification, dynamic assessment, and differentiated management for credit clients. Multiple systems for data security and privacy protection have been established, including classified and graded data security management, effectively safeguarding data.

Honors and Recognition: From Domestic Acknowledgment to International Praise

The fruits of diligent cultivation.

In 2025, SPD Bank’s ESG performance was also highly recognized. MSCI (Morgan Stanley Capital International), a leading international index provider, upgraded its ESG rating from “A” to “AA.” The MSCI report highlighted significant improvements in governance, climate response, green finance innovation, consumer protection, and data security.

In addition to international praise, SPD Bank’s ESG efforts have received widespread domestic recognition.

The “Report” shows that SPD Bank received an A rating from Wind ESG. It ranks highly in various domestic ESG evaluations, such as 8th in the “China ESG Listed Companies State-Owned Enterprise Pioneers 100 (2025),” 14th in the “China ESG Listed Companies Yangtze River Delta Pioneers 100 (2025),” and 64th in the “China ESG Listed Companies Pioneers 100 (2025).”

Awards such as “China ESG · Outstanding Practice (2025),” “2025 Responsibility Practice Excellent Case,” “Annual Responsibility Practice for Sustainable Development,” “Best ESG Pioneer,” “Best ESG Financial Service Institution,” “ESG Outstanding Investment Value Listed Company,” and “2025 ESG Best Practice Institution” are testaments to the long-term commitment and social recognition of this bank.

Moving Forward in New Horizons: 2026, from Function Building to Ecosystem Operation

Standing at the new starting point of 2026, SPD Bank’s vision extends further into the future.

The senior management states that 2026 marks the beginning of the “14th Five-Year Plan” and is also SPD Bank’s “Year of Strategic Deepening.” The bank will unwaveringly adhere to its digital intelligence strategy, advancing from “function construction” to “ecosystem operation,” creating an “high-quality value bank” that organically unites its own value, customer value, shareholder value, ecological partner value, and social value.

Serving the nation’s finance, serving the people’s finance. SPD Bank will continue to use ESG as the brush and digital intelligence as the ink, painting a more green, inclusive, and responsible future on the scroll of serving national strategies, empowering the real economy, and enriching people’s livelihoods. When the seeds of sustainable finance are deeply rooted, and amid the magnificent journey of Chinese modernization, more brilliant chapters belonging to SPD Bank will surely bloom.

This article is for reference only and does not constitute any investment advice.