Research On The Credit Evaluation Index System Of Bank A’s Corporate Customers With ESG

With the high-quality development of China’s economy and society,as well as the requirements of "carbon peaking" and "carbon neutrality",the state attaches more and more importance to the sustainable development of industrial and commercial corporates,and ESG is becoming an important starting point on today’s corporate management road.In addition to having a strong financial level,corporates with good credit level may also have a standardized degree in environmental protection,social responsibility fulfillment and corporate governance.For commercial banks,the determination of the evaluation index system is a key link in the credit evaluation of corporate customers,and the selection of the index system directly affects the accuracy of model prediction and the bank’s credit risk control management.ESG can assess the long-term trend of corporate sustainability,and its application to corporate credit assessment is an important supplement to traditional credit assessment indicators.At present,the credit evaluation index system of China’s commercial banks is mainly based on financial indicators,and has not formed a credit evaluation index system with ESG.There are still many aspects to be explored in the effective establishment of the system,so this paper studies how to integrate ESG into the corporate credit evaluation index system of commercial banks and effectively apply it.This paper takes Bank A’s credit evaluation index system as an example to analyze and model,first analyzes current credit evaluation index system,and finds that the system has deficiencies such as imperfect evaluation process,lack of collection of ESG information during customer due diligence,and lack of ESG indicators,and proposes the necessity of integrating ESG into the credit evaluation system.Then,a series of credit evaluation indicators were selected for Bank A,the expert scoring method and analytic hierarchy method were used to confirm the weight,and the Yaahp software was used to build a credit evaluation AHP model that integrated the current indicators and ESG indicators.The weights of financial indicators,non-financial indicators and ESG indicators were calculated by calculating,and finally found that the cash-flow-liability ratio of financial indicators and the environmental management index of ESG accounted for the largest weight in the entire index system.At last,the evaluation model is used to apply the credit evaluation index system of a target credit granting corporate to judge whether the assessment result is in line with the facts.It is hoped that the research can be for other commercial banks for reference on how to optimize their credit evaluation systems.