CSC Financial significantly strengthened its sustainability strategy in 2025 by embedding environmental, social and governance (ESG) principles across its board, management committees and operational teams. Rather than treating sustainability as a separate reporting exercise, the company integrated ESG into capital allocation, investment decisions, risk management and corporate governance, creating a comprehensive framework for sustainable financial growth.
The company adopted a double materiality assessment covering 31 ESG risk parameters, enabling it to evaluate both the financial risks associated with environmental and social issues and the broader sustainability impact of its financing activities. CSC Financial’s ESG strategy is built around five strategic pillars: green finance, technology finance, inclusive finance, pension finance and digital finance, CSC Financial Sustainability Report 2025 indicated.
CSC Financial Mobilizes RMB 104.8 Billion Through Green Finance
Green finance remained the company’s strongest sustainability driver during 2025. CSC Financial acted as the lead underwriter for 145 green bond issuances, raising RMB 64.8 billion to finance renewable energy projects, clean utilities, power grid modernization and carbon reduction initiatives.
In addition, the company facilitated approximately RMB 40.0 billion through green equity financing transactions, bringing its total green capital mobilization to RMB 104.8 billion during the year.
More than 90 percent of its new proprietary equity investments were allocated to innovative productive industries and transition-focused sectors, reflecting a strategic shift toward long-term sustainable investments.
CSC Financial also managed more than RMB 2.2 billion in private equity and venture capital investments across more than 60 technology enterprises supporting clean energy, industrial modernization and innovation.
Climate Risk Management Focuses on Scope 3 Financed Emissions
As a financial institution, CSC Financial identified Scope 3 financed emissions as the largest contributor to its carbon footprint. Climate risk assessments, carbon exposure analysis and sustainability screening have been integrated into underwriting and investment decisions to improve portfolio resilience.
Operational emissions reduction also continued throughout 2025. Scope 1 emissions were reduced through fleet optimization and gradual electrification of corporate vehicles, while Scope 2 emissions were addressed through LED lighting upgrades, HVAC optimization and improved energy efficiency in office buildings and data centers.
To reduce upstream Scope 3 emissions, the company accelerated digital transformation by replacing paper-based processes with electronic onboarding, cloud documentation and digital workflows. Downstream emissions were addressed through portfolio carbon screening, sector allocation strategies and increased financing for renewable energy and low-carbon infrastructure.
Climate stress testing and carbon price scenario modelling were also incorporated into underwriting frameworks to evaluate transition risks and reduce exposure to stranded assets.
Renewable Energy Financing Supports Low-Carbon Infrastructure
The combined RMB 64.8 billion in green bond financing and RMB 40.0 billion in green equity financing supported major investments in solar power, wind energy, electricity grid modernization and battery energy storage infrastructure.
These investments contribute to expanding renewable energy capacity, improving power grid stability and reducing dependence on fossil fuels while supporting China’s broader energy transition objectives.
Technology Finance and Rural Development Expand Sustainable Investment
CSC Financial completed 22 equity financing projects with total underwriting exceeding RMB 30.0 billion, providing capital for technology companies developing innovation-driven and low-carbon solutions.
The company also underwrote 13 rural revitalization bonds worth RMB 6.213 billion, supporting agricultural infrastructure development and balanced regional economic growth.
Inclusive Finance Reaches 6.16 Million Investors
Inclusive finance continued to expand through digital platforms and regional services. CSC Financial served 6.16 million retail investors during 2025 while making 308 pension fund products available through its platform, achieving 100 percent coverage for retirement-focused investment products.
These initiatives improved financial accessibility while expanding long-term retirement savings opportunities for individual investors.
ESG Performance Linked to 100 Percent of Employee Compensation
One of the company’s most significant governance reforms during 2025 was integrating ESG metrics into executive and employee performance evaluation systems.
100 percent of employee and executive compensation structures are now linked to ESG indicators covering compliance, risk management effectiveness and professional conduct. This ensures sustainability performance is directly connected to corporate accountability and operational decision-making.
Digital Transformation Improves Environmental Efficiency
CSC Financial continued improving operational sustainability through energy-efficient infrastructure and digital transformation.
Fleet electrification, LED lighting deployment, optimized HVAC systems and energy-efficient data centers contributed to lower operational emissions. At the same time, electronic onboarding, cloud-based documentation and paperless workflows reduced paper consumption, logistics requirements and associated carbon emissions.
MSCI Upgrades CSC Financial’s ESG Rating to AA
The company’s strengthened governance framework, enhanced ESG disclosures and improved environmental risk management resulted in its MSCI ESG rating being upgraded to AA.
The higher rating reflects stronger sustainability governance, improved transparency, better climate risk management and greater alignment with international ESG standards.
CSC Financial Strengthens Sustainable Finance Leadership
CSC Financial’s 2025 sustainability performance highlights a financial institution increasingly focused on ESG-led growth. With RMB 104.8 billion mobilized through green financing, 145 green bond issuances, RMB 2.2 billion invested across more than 60 technology companies, 22 equity financing projects exceeding RMB 30.0 billion, 13 rural revitalization bonds worth RMB 6.213 billion, services reaching 6.16 million investors, 308 pension products with 100 percent platform coverage, 100 percent ESG-linked compensation and an MSCI AA rating, CSC Financial has established a comprehensive model for integrating sustainable finance, climate risk management and responsible capital allocation into its long-term business strategy.
SHAFANA FAZAL
