Study on the Philanthropic Activities of Chinese Commercial Banks from an Environmental, Social, and Governance (ESG) Perspective

Abstract

The study aims to investigate the integration of philanthropic responsibility objectives with operational goals within commercial banks, embedding the ethos of financial benevolence into their core business strategies. It seeks to understand how these institutions can capitalize on their inherent advantages and resources to establish distinctive identities in the realm of philanthropy. By examining the 2022 ESG reports of China's six state-owned commercial banks, twelve joint-stock banks, and six city commercial banks, the research delineates the performance of commercial banks in philanthropic projects and expenditures, the development of philanthropic financial products, and the provision of philanthropic services. The analysis reveals three key deficiencies in the current philanthropic practices of commercial banks: the absence of a robust performance accounting mechanism for philanthropic projects and expenditures, the challenge of ensuring the long-term continuity of philanthropic financial products, and the relatively small scale of charitable trusts. The study offers four strategic recommendations for commercial banks: to institute an effective performance accounting mechanism for philanthropic initiatives, to innovate and scale up philanthropic financial products, to enhance the promotion of these products, and to broaden the scope of charitable trust projects. These suggestions are intended to facilitate a more holistic advancement of "charity plus finance" initiatives by commercial banks, thereby enhancing their engagement and impact in the ESG sphere.