China Construction Bank (“CCB” or the “Bank”) announced the release of its 2007 Corporate Social Responsibility Report on June 16, 2008. CCB was the first state-owned commercial bank in China to publish a Corporate Social Responsibility Report in 2006. This is the second annual report, and discloses CCB’s corporate social responsibility achievements to different parties of the society.

CCB made substantial improvements in the breadth and depth of information, compared to the report published in 2006. The new report sets out the Bank’s achievements in fulfilling its corporate social responsibilities in 2007, and illustrates practical measures the Bank has taken in six major areas: environmental protection, improving lives, improving products and services, staff development, promotion of integrity as a social virtue, and contribution to public welfare causes.

The Bank asserts that its fundamental social responsibilities are in enhancing internal reform and development, strengthening risk management and internal controls, maintaining financial stability and preventing financial crises. According to the report, the Bank has been improving its sustainability in terms of creating stable and high returns for the State and the shareholders during the year. The Bank scrupulously implemented the State’s macro-economic control policies and actively furthered the adjustment of credit structure. CCB prioritized customers’ interests by offering quality basic banking services.  It improved people’s livelihoods by coupling business development with community issues. In line with its people-oriented policy, the Bank established a broader platform for the development of its staff. CCB has also been dedicated to supporting public welfare causes and has contributed to building a harmonious society.

The content of the 2007 report is enriched as it provides more comprehensive data and case studies than the 2006 report. Highlights include five new elements:

First, in the report, CCB for the first time sets out its strategic development goals. In 2007, CCB announced its strategic vision, “Pioneer always at the forefront of China’s economic modernization, strive to be a world-class bank”, along with its phased development goals: “establish professional and distinguished sales services system by 2008; complete business structure transformation by 2010; meet the standards of top-class banks worldwide by 2015; become a top-class international bank by 2020”.

Second, the report provided details on stakeholder participation. In the report, CCB analyzes and lists its stakeholders’ expectations and requirements, including those of the government, regulatory bodies, shareholders, customers, employees, communities, the general public and the media. CCB is striving to improve the communication and coordination with its stakeholders and is open to participation and supervision from different quarters of the society.

Third, a third party, KPMG, was employed for the first time to provide independent assurance for the report. KPMG issued an assurance report testifying to the impartiality of the information and providing recommendations and suggestions for improvement. The involvement of a third party assurer demonstrated that CCB’s Corporate Social Responsibility Report is meeting the international standard.

Fourth, the report goes into depth on the Bank’s anti-corruption measures. These include a series of stringent regulations in operations management, personnel management, usage of public property, project tenders, purchasing, and organizational discipline, as well as in hospitality on business trips.  The measures are seen as a practical and important step in the establishment of a long-term mechanism to encourage honesty and fight against corruption.

Fifth, the report includes the accomplishments of CCB volunteers for the first time. CCB has formed a team of staff volunteers from a group of more than 140,000 young staff. The report details the volunteer activities that the team has undertaken, which reflect a high level of social awareness among CCB staff.

In 2007, CCB donated RMB226 million to social causes and was widely recognized. The Bank received 10 awards in this area, including the “Most Responsible Enterprise” award and the “China Social Responsibility” award. Looking forward, while maintaining a sound and rapid business development, CCB will balance the interest of all stakeholders and fully undertake its corporate social responsibilities to contribute towards the building of a harmonious society.