Research On ESG Practice And Optimization Strategy Of Commercial Banks

With the transformation of China’s economic development model and the continuous promotion of the goal of carbon peaking and carbon neutrality,the ESG development concept with green,low-carbon and sustainable development as the core has gradually taken root in the hearts of the people and attracted widespread attention from the whole society.ESG performance can intuitively measure the practical situation of enterprises in the three dimensions of environment,social responsibility,and corporate governance.It is an important indicator for evaluating corporate social responsibility and sustainable development potential,and also a key driving force for promoting the ecological priority,green,and low-carbon development path of the economy and society.As the core of the national economy,financial institutions,especially commercial banks,are important subjects to implement the ESG concept.Studying and improving the ESG practice performance of commercial banks is beneficial to giving play to their financial resource allocation function,guiding financial resources to lean towards green and low-carbon development,boosting the establishment and improvement of green and low-carbon carbon cycle development economic system,and promoting comprehensive and sustainable economic and social development.This article reviews the theoretical basis and relevant literature of the ESG concept,and selects the ESG practice case of H Bank for in-depth research.Firstly,a detailed introduction is given to H Bank’s ESG practices from three dimensions: environment,society,and governance;Then analyze the reasons for H Bank’s implementation of ESG concepts from both internal and external perspectives.Secondly,the WIND ESG data of all 42 A-share listed commercial banks in China are selected to horizontally compare the ESG performance of Bank H in the industry,and summarize the achievements of Bank H in ESG governance,climate risk management and green finance development and the shortcomings of its implementation of the ESG concept;From a macro perspective,this paper analyzes the common challenges faced by Chinese commercial banks in implementing the ESG concept.Finally,through the full text research,this article proposes optimization strategies for the ESG practice of commercial banks.Firstly,build an overall strategy that combines internal drive,external drive,and tripartite empowerment;Secondly,strengthen the empowerment of rating agencies and promote the construction of ESG professional capabilities;Thirdly,strengthen the ecological construction of ESG and work together from multiple parties to promote ESG information disclosure;Fourthly,strengthen industry exchanges and improve the construction of ESG governance system;Fifth,deeply integrate the ESG concept into the business system and streamline the transmission path.