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2020

Special Report on Green FinanceIndustrial and Commercial Bank of China Limited

2020 Special Report on Green Finance

55 Fuxingmennei Avenue, Xicheng District, Beijing, China Post Code: 100140
www.icbc.com.cn, www.icbc-ltd.com

CONTENTS
Foreword / 4

P49

P15
P6

Strategy & Governance◆◆

Strategic Goal / 7
Governance Structure / 8

Services & Innovation◆◆

Green Credit / 16
Column: FinTech Empowerment inGreen Credit / 18
Green Bond / 19
Column: Green Bond Cases/ 21
Cases of Green Investment and
Financing Innovation / 23

P40

Research & Implementation

P45
P9International Cooperation
Policy & Procedure◆◆

Policy and System / 10
Environmental Risk Management
Framework and Process / 11
Column: Supporting the Buildingof Pilot Zones ofGreen Finance Reformand Innovation / 13

P32

Operation & Charity◆ Green Operation / 33
◆ Environmental Protection / 38

Appendices◆◆◆

TCFD Recommendations Index / 50
PRB Index / 51
Notes to the Report / 53◆

Feedback Form / 54

01 Strategy & Governance2020 Special Report on Green Finance ICBC

Foreword

A good practitioner endeavors to solve the difficult problems. 2021 is thethird consecutive year that the Bank has published the Special Report on
Green Finance with reference to the TCFD Recommendations, which
comprehensively, meticulously and systematically summarizes the practiceand progress in optimizing the green financial system, innovating green
finance products and services, and improving its own green performance in
2020. Meanwhile, the Bank is the only Chinese financial institution in the core
working group of the Principles for Responsible Banking (PRB)3 of the United
Nations. In the process of preparing the report, the Bank also benchmarked to
UN PRB and elaborated on its efforts in integrating environmental and climate
factors into strategic governance, business processes, investment and financing
decisions, etc. You can learn from the report that in 2020, the Bank continued
to vigorously promote green finance, better advance green development, andtake solid steps to cultivate competitive brands of green finance.

At present, protecting the ecological environment and coping with climate change
have become common challenges confronting the world, which has been theconsensus among the international community. China has demonstrated great
responsibility and boldness in its response to climate change by announcing
the strategic goal of peak carbon emissions by 2030 and carbon neutrality by
2060. China’s 14th Five-year Plan has also a special Chapter dedicated to green
development. On April 22nd, 2021, President Xi Jinping stressed again at the
Leaders Summit on Climate that “Guided by the idea of ecological civilization,
China will implement the new development concept, pursue comprehensive green
transformation of economic and social development, and adhere to the path of green
and low-carbon development giving priority to ecological conservation.”1Along theway to the carbon peak and neutrality goal, a systematic reform in economic andsocial fields is taking place in China with depth and breadth.
4

GovernanceIn 2020, the Bank established the Green Finance Committee, composedof 23 member departments, in an effort to further strengthen the overall
leadership and coordinated promotion of green finance. 4

Opportunities and Challenges

The carbon peak and neutrality goals set more and higher expectation for green
finance. On the one hand, achieving carbon neutrality requires a lot of green and lowcarbon investment, creating opportunities for green finance; on the other hand, green
transformation may result in the devaluation of carbon-intensive assets, causing thetransition risk. As an important part of ecological advancement, the developmentof green finance will play a great role in the transformation of economic growth
patterns. As the mainstay of green finance, commercial banks have the responsibility
and capability to draw on international experience and to develop a characteristic
space in an active response to climate challenges, while promoting the steadydevelopment of green finance. In this context, as the hub of capital and informationtransfer, it has been increasingly important for commercial banks to disclose
environmental information.

Services

Continuously increasing support for green industries, customers andprojects with a spectrum of products and services as green loans, green
bonds, industrial funds, green finance and green leasing.

Research
Focusing on the forward-looking research, getting an insight into thedevelopment trend, broadening research ideas, and actively building
a leading green finance research system in the world. Under theguidance of the People’s Bank of China (“PBC”), the Bank took thelead in preparing the industry standards of the Guidelines for Financial
Institution Environmental Information Disclosure. So far, it has gone
through the technical review and is soon to be released.

Action and Practice

The development of new business requires the foresight and courage of forerunners.
In recent years, domestic and foreign financial institutions took solid steps to disclose
environmental information, reached a clear international consensus and accumulated
valuable practical experience. In particular, encouraging progress has been madein the application and promotion of the Recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD) 2 under the Financial Stability
Board. Industrial and Commercial Bank of China (“the Bank”) is actively geared tointernational standards. In 2017, it became the first Chinese financial institution tosign up as a supporter for the TCFD Recommendations. In practice, it benchmarked
the TCFD Recommendations and took the lead in deepening the pilot implementationof environmental information disclosure of Chinese and British financial institutions.

International Exchanges
The Bank actively participated in the sustainable development and theinternational governance of climate risk through BRBR, UNEP FI, GIP,
GISD Alliance, TCFD and other platforms, and made contributions topromote green and low-carbon development and respond to climate changearound the world.

As early as in 2007, the Bank set green finance as its development strategy andvigorously promoted green credit development. In operation and development
over the years, the Bank has always integrated economic responsibility and social
responsibility, and it is committed to making financial contributions to the sustainable
and healthy economic and social development. In recent years, the Bank applied the
new development philosophy, continuously improved various measures of green
finance, made efforts to improve the adaptability, competitiveness and inclusivenessof financial services, and promoted the simultaneous improvement of economic,
environmental and social benefits.

1

Xinhuanet.com. Remarks by Xi Jinping at the Leaders Summit on Climate (Full text) [DB/OL]. (2021-04-22). http://m.xinhuanet.com/2021-04/22/
c_1127363132.htm
2https://assets.bbhub.io/company/sites/60/2020/10/FINAL-2017-TCFD-Report-11052018.pdf

A constant practioner usually gets the work done as a persistent moverreaches his destination. At present, strengthening the supervision of financial
institutions and tightening information disclosure requirements have become
one of the “five pillars” for the PBC to improve the green finance system.5
In the future, the Bank will continue to enhance the disclosure of green
finance information, such as policies and systems, the management of green
finance organizations, the scale of green financing, the achievements of green
financing in energy saving and emission reduction, and green operation, andactively strengthen the disclosure of ESG information and climate investment
and financing information, so as to effectively promote the implementation ofenvironmental information disclosure.

3

The PRB was initiated by the United Nations Environment Programme Financial Initiative (UNEP FI). Under the guidance of the PBC, ICBC participated in
the drafting process in depth and was among those first signing the UNEP FI.
http://v.icbc.com.cn/userfiles/Resources/ICBCLTD/download/2021/2020shzrCN202103.pdf
5People.cn. Chen Yulu: “Three Major Functions” and “Five Major Pillars” of Green Finance Support Peak Carbon Emissions and Carbon Neutrality [DB/OL].
(2021-03-07).http://finance.people.com.cn/ n1/2021/0307/c1004-32044837.html
45

01 Strategy & Governance

The Bank has always integrated economic and social responsibilities, followed green finance as its
development strategy, and comprehensively advances the building of green finance system withthe four drivers, namely “strategic guidance, policy support, reform and innovation, and global
services”, and seeks for a harmonious improvement of economic, social and ecological benefits.

Strategic Goal

01
Strategy &Focusing on the implementation of the “30•60” decarbonization goal andintegrating low-carbon and green development into the new three-year plan (2021-2023)
The Bank continues to reinforce green finance system towards the goals of peak carbon
emissions by 2030 and carbon neutrality by 2060. The Bank will practice the development
philosophy that “Lucid waters and lush mountains are invaluable assets”, and seeks the
maximized total value contribution for shareholders, stakeholders and the general public, torealize the sustainable harmony between human and nature.

◆◆

Aligning with
the Sustainable
Development Goalsof the United Nations(UN SDGs)6 andenabling economictransition upgrade
and sustainable
development of thefinancial industry

Strategic Goal / 7
Governance Structure / 8

Governance

Sustainable development philosophy: Protecting while developing,
and allocating financial resources to help coordinate economic andsocial development with population, resources and environment. Putting
sustainable development and social responsibility at the strategic level,
constantly improving the low-carbon operational mode and environmental
footprint management, and acting as the pioneer and practitioner ofsustainable development philosophy.
Strategic goal: Developing into a world-leading green bank with goodinternational reputation.
Business philosophy: As the pioneer and leader in green finance, the Bank
has always adhered to the business philosophy of developing green financeto fuel the real economy.
Advancing set-up: With many years of practicing and drawing on global
advanced concepts, the Bank has established a green finance strategy
promotion system under the overall leadership of the Green FinanceCommittee (GFC), in which all departments work together, domestic andoverseas institutions actively innovate, and all employees get involved
in. The Bank has actively utilized all financing means including “loan,bond, stock, brokerage, lease and advisory” to provide the full-chain
comprehensive financial services for green projects.
Long-term mechanism: The Bank has already put in place a relatively
sound long-term green finance development mechanism, and embedded it
to its corporate vision, development strategy, credit culture, policies andregimes, management processes as well as products and services etc.

6

https://www.un.org/sustainabledevelopment/zh/

7

2020 Special Report on Green Finance ICBC

Governance Structure
In 2020, new steps were taken to improve the Bank’s corporate governance. With corporate
governance as an important cornerstone of business stability and sustainability, the Bank
further improved the governance structure whereby the Board of Directors makes strategic
decisions, the Board of Supervisors supervises in accordance with law and the Management
is responsible for running business under the overall leadership of the Party Committee, andenhanced the effectiveness of corporate governance.

Continuously strengthening the leadership and supervisionof green finance work by the Board of Directors
8

The Social Responsibility and Consumer Protection Committee of the Boardof Directors is responsible for studying and reviewing the Bank’s green
finance strategy and making recommendations to the Board of Directors; theRemuneration Committee of the Board of Directors is responsible for assessing
the implementation of green finance by the Senior Management and integrating
it in the performance assessment. The leading department in green finance of
the Bank shall regularly report the Bank’s implementation of green finance tothe Board of Directors and the Social Responsibility and Consumer Protection
Committee of the Board, and submit the report on the implementation of green
finance of the Bank to the Board of Directors for deliberation and approval.

02

Setting up the GFC on the Head Office Level
To further strengthen the Management’s overall leadership and promotion ofgreen finance, on the basis of the original Credit Risk Committee which wasin charge of green finance policy review and coordination, the Bank set up theGreen Finance Committee ( “GFC”) composed of

23 member departments,

to coordinate and promote the green finance building of all business lines,
branches and subsidiaries of the Group.

4bank-wide dedicated meetings have been held toSince the establishment of the GFC,
review green finance reports, policies and rules, systematically arrange and allocate green
finance tasks, optimize assessment mechanism, and strengthen green credit assessment.
Each tier-one (directly managed) branch established a GFC with reference to the practice ofthe Head Office, to take the responsibility for comprehensively coordinating and promoting
the green finance work within its jurisdiction.

Policy &Procedure◆◆

Policy and System / 10
Environmental Risk Management
Framework and Process / 11
Column: Supporting the Building of
Pilot Zones of Green Finance
Reform and Innovation / 13

02 Policy & Procedure2020 Special Report on Green Finance ICBCThe Bank has upheld the policy support by establishing an institutionalized green finance support
system, and improved the long-acting mechanism to develop green finance. Meanwhile, it actively
identified and guarded against climate and environmental risks, strengthened the whole-process
management of green finance, and constantly cemented the groundings for the sound and stabledevelopment of green finance.

Policy and System

10
In 2020, the Bank continued to strengthen differentiated policy support and control, andintegrated green finance into all links of financial services and operation management,so as to ensure the effective implementation of green finance strategy and promote thedevelopment of real economy with green finance.

Designing a medium-term green financedevelopment plan
Under the guidance of the long-term strategy, the Bank formulated a medium-term
green finance development plan every three years, and issued the Opinions on Further
Strengthening the Building of Green Finance for implementation as a planning document in
the field of green finance. Given the overall situation of ecological civilization, the Opinions
require all employees to be deeply aware of the significance of ecological civilization, andstrive to cultivate new advantages in green finance at a new starting point, in light of the “SixPrinciples” 7of the Ecological Civilization Thought of Xi Jinping.

Strengthening the management of industrial(green) credit policy
Industrial (green) credit policies were issued every year to actively guide the Bank’s
layout. The Bank has successively issued policies for 50 industries in 16 sections,defining key fields, such as clean energy, green transportation, energy saving andenvironmental protection, as industries of aggressive entry or moderate entry.
Differentiated supporting policies including economic capital occupation, authorization,
pricing, and scale, etc have been put in place.

Strengthening special policy support forgreen financeIn order to help institutions in the pilot zones of green finance reform and innovation playa role in guiding local green finance, the Bank issued the Opinions on Strengthening

7

Principles That Must Be Upheld in Strengthening Development of an Ecological Civilization [M], Xi Jinping.// Xi Jinping Talks about Ruling the State(Volume 3), Xi Jinping, Beijing, Foreign Languages Press, 2020:359-365.

Financial Services for Pilot Zones of Green Finance Reform and Innovation in 2020, putting
forward such key tasks as improving the green finance organization system, strengthening theresource guarantee for the pilot zones of green finance reform and innovation, continuously
increasing the investment and financing support for green industry, intensifying theenvironmental and social risk management, and improving the daily work mechanism. It
explores the replicable experience for the building of green finance in the Bank.

Optimizing the incentive mechanism andstrengthening green credit assessment
Green credit was included in the social responsibility section of the branch performanceassessment index system, focusing on assessment of the proportion of green loan balance ofeach institution and whether there is any breach of green credit policy. The Bank heightened
the differentiated credit policy and economic capital regulation, defined the leading green
industries, including railway, urban public utilities, urban rail transit and hydropower,
as the industries of aggressive entry, for which differentiated credit policies wereapplicable, including reduction of economic capital occupation coefficient and matchedauthorization.

Environmental Risk Management
Framework and Procedure

The Bank continuously strengthened the management of investment and financing inenvironmentally-sensitive areas, practiced the one-vote veto system for green finance inan all-round way, built green credit requirements into the whole process of credit business,and incorporated environmental (climate) and social risk factors into the customer risk
assessment system to monitor and analyze customer credit rating. It continuously improved
risk management mechanism, and comprehensively strengthened environmental (climate)and social risk management.

Implementing an all-round management of green
classification in investment and financing
Since the development connotation and requirements of green finance have gradually spreadfrom loans to full-spectrum investment and financing, in 2020, the Bank revised the Measuresfor Green Classified Management of Investment and Financing of Domestic Legal Entities(Version 2021), gradually extending the green classified management from loans to various
investment and financing businesses, such as bonds, financial management and leasing.
According to the “green” degree of investment and financing and environmental (climate) andsocial risks, green is classified into 4 levels and 12 categories from low to high risks, which
are subject to differentiated investment and financing policies.

11

02 Policy & Procedure2020 Special Report on Green Finance ICBCStrengthening the risk management ofenvironmentally-sensitive industries
The Bank revised the annual industrial (green) credit policy, improved the key indicatorrequirements for enterprises of key industries, such as technique, energy consumption,technology and environmental impact, and strictly controlled the financing inenvironmentally-sensitive and overcapacity industries. It strengthened the managementof key industries shift by dynamically adjusting the shift management scope and specificmeasures, and refraining financing companies with high environmental (climate) and social
risks from a forward-looking perspective.

12

Strengthening the whole-process management
and risk control of green finance
The Bank prudently controlled risks in due diligence, examination and approval,
contract signing, fund disbursement, post-lending and investment management, andbuilt environmental (climate) and social risk compliance requirements into thewhole process of investment and financing management. It strictly observed the rigid
constraints, such as red line of ecological protection, the bottom line of environmental
quality, the cap level of resource utilization, land, health and safety, and gradually realized
the systematic and automatic management of environmental and social risks.

Embedding environmental factors in rating
monitoring
According to the Measures for Credit Rating of Corporate Customers (Version 2020),
the monthly monitoring and analysis of customer credit rating has taken into accountenvironmental factors. If a customer encountered a major environmental or safety breach
incident, the customer rating shall be reassessed within one month. The Bank shall regularly
monitor customers whose green credit classification marks exceed the specified level. For thesecustomers, the system will downgrade their rating and pop up a reminder for reassessment.

Actively conducting dedicated audit missions
in green credit
According to the Green Credit Guidelines issued by the regulator China Banking andInsurance Regulatory Commission (CBIRC) and the requirements of the 2018-2020 Internal
Audit Development Plan discussed and approved by the Board of Directors with respect togreen credit audit, the Internal Audit Bureau performed the annual dedicated audit missionsof green credit in four tier-one branches, namely in Hebei, Inner Mongolia, Jilin and
Heilongjiang from September to October 2020. This mission focused on the implementation
results of the Bank’s green credit strategy and the compliance and effectiveness of theBank’s green credit management and process, aiming to constantly improve the Bank’s
green credit management. A combination of offsite analysis and onsite audit were adopted.
It selected 50 customers with a combined green credit balance of RMB7,879 million
as audit samples, and conducted careful auditing on the green credit management, policy
implementation and major risks of relevant branches. The smooth mission of green credit
auditing played a positive role in further enhancing the Bank’s green credit compliancemanagement.

ColumnSupporting the Building of Pilot Zones of Green
Finance Reform and Innovation
In order to implement the new development concept, accelerate the innovation of green
finance system and mechanism, and strengthen the financial support for improvement of
ecological environment, and saving and efficient use of resources, the state has successively
built green finance reform and innovation pilot zones in nine places of six provinces(autonomous regions), explored replicable and popularized experience in the system andmechanism, and promoted the green transformation and upgrading of economy. In 2020,
the Bank issued the Opinions on Strengthening Financial Services for Pilot Zones of Green
Finance Reform and Innovation, encouraging branches in the pilot zones of financial
reform to further give play to their role in the local green finance reform and innovation
development and the Bank’s green finance building. Relevant branches and subsidiariesof the Bank in the pilot zones have implemented the national strategies deeply, actively
explored effective ways to support the building of green finance reform zones, and provided
strong financial support for promoting the ecological civilization in the pilot zones anddriving the sustainable development of regional economy.

The green loans grew steadily in scale
As at the end of 2020, the balance of green loans in Zhejiang, Guangdong, Xinjiang,

322.4

Guizhou, Jiangxi and Gansu reached RMB
billion yuan, vigorously satisfying thefinancing needs of local clean energy, natural protection, ecological restoration and disasterprevention and control projects, industrial energy conservation and water saving as well asother key projects and high-quality enterprises.

Optimizing enabling mechanism and resource allocation forgreen finance
Optimizing organization and management system
The Bank established green finance working groups or green credit service providers inpilot zone branches, and green finance business departments in relevant tier-two branches.
Zhejiang Branch has set up sub-branches dedicated to green business and green pilot subbranches, staffed with full-time green service personnel. Zhejiang Huzhou Branch wasapproved as a Head Office-level green finance pilot bank. Guangdong Branch raised its
service level and upgraded Huadu Sub-branch to “Guangzhou Huadu Branch of Guangdong
Green Finance Pilot Zone”. Guizhou Gui’an Branch established a Green Finance Business
Department.

Strengthening the resource allocation and support for green finance
Guangdong Branch has formulated the measures for green credit assessment, giving
priority to the allocation of green loans and implementing preferential interest rates;
Xinjiang Branch has formulated the Implementation Opinions of Xinjiang Branch on
Financial Services in Green Finance Reform Pilot Zones and the Implementation Opinionsof Xinjiang Branch on Development of Green Finance Business, further clarifying

13

2020 Special Report on Green Finance ICBC

development objectives of green finance, the objectives of trial operation in green financereform pilot zones, the regions and innovative ways of investment and financing.

Implementing differentiated credit procedures
Zhejiang Quzhou Branch gave priority to the review and approval of small and microenterprise customers on the “whitelist of environment-friendly green enterprises”. Xinjiang
Branch opened a green channel for customer onboarding, review and approval, andprioritized support to green projects. Jiangxi Nanchang Branch and Jiujiang Branchclosely followed the list of green projects issued (updated) by Ganjiang New Area
Management Committee from time to time, prepared and regularly updated the Progress of
Follow-up of Green Projects in Ganjiang New Area, urged all fronting branches to follow
up the green projects in the form in a timely manner, open a green channel for the listed
projects by prioritizing their review and approval efficiently.

14

Innovating green finance products and services
Relevant institutions in the green finance reform pilot zones gave full play to the Bank’scomprehensive advantages and enhanced financial product innovation on top of traditionalon- and off-balance sheet business. Zhejiang Huzhou Branch innovated and launcheda unique credit product-“loan for improving the comprehensive management of green
environment”, strengthened financial services, and drew up special policies in respect ofapproval process, credit scale, financing price, etc., to help push forward rural revitalization.
Zhejiang Quzhou Branch set up an equity investment fund, which mainly invests in highquality enterprises in the fields of industrial transformation and upgrading, environmental
protection and energy saving, resource recycling and new energy. Jiangxi Branchcooperated with Ganjiang New Area and state-owned enterprises under its jurisdiction to
set up green industry orientation funds. Guizhou Branch innovated green finance to boost
poverty alleviation, introduced government led industrial poverty alleviation funds throughgreen agriculture, and penetrated into the whole industrial chain services of green projects
through the cooperation mode of “platform company + cooperatives + base + farmers”.

03
Services &Innovation◆◆

Green Credit / 16
Column: FinTech Empowerment inGreen Credit / 18
Green Bond / 19
Column: Green Bond Cases / 21
Cases of Green Investment and
Financing Innovation / 23

03 Services & Innovation

2020 Special Report on Green Finance ICBC

Environmental performance data
8985.96

In 2020, the Bank resolutely implemented the relevant requirements by the Central Party Committee inbuilding an ecological civilization system and responding to climate change, and actively gave play to theimportant role of green finance in promoting the green and low-carbon transition of production and lifestyle.

8958.794643.97

Green Credit
16

2018年

The Bank continuously improved the working mechanism of green credit. In the assessmentof green banks organized by the CBIRC and China Banking Association, the Bank wasawarded “outstanding entity in the overall evaluation of green banks” and “leading entity inthe overall evaluation of green banks” for two consecutive years.

1,845.719 billion.

RMB

4627.232019年 2020年

Equivalent to standard coalsaved (10,000 tons)

2018年

2019年 2020年

Equivalent to reduced emissionof CO2 equivalent (10,000 tons)

281.71
31.10

Green credit balance
As at the end of 2020, as per the newcriteria of the CBIRC, the balance ofgreen loans granted by the Bank forgreen industries, such as energy saving
and environmental protection, clean
production, clean energy, ecologicalenvironment, green upgrading of
infrastructure and green services, reached8524.634924.74

23.31

The Bank has ranked

first among

domestic commericalbanks for many years interms of the balance ofgreen loans

The growth rate has been higher
than the average level of total loans
for many years

Green adjustment of investment and financing structure
The latest indicators, such as environmental protection and energy consumption ofenterprises, were embedded in the selection criteria of customers and projects in key
areas, and solid steps were taken to push forward the green adjustment of investment
and financing structure. Introducing limit management in key industries. The Bank
implemented classified management for steel, coal and other high energy consuming
industries by customer, transferred the approval power of coal power project loans to the
Head Office, so as to reasonably and effectively control the financing of energy-intensive
industries. The proportion of the balance of wind power and solar power generation loans
in the total loans of the power generation industry went up gradually. The total amountof loans in “high pollution and high energy consumption” industries has remained stableor with modest decrease for many years. The balance of loans for green upgrading of
infrastructure and clean energy accounted for 82.6% of total green loans under the criteriaof the CBIRC, ensuring the good quality of green loans. By accelerating the exit ofcustomer financing such as financing for outdated production capacity, the Bank actively
reduced the proportion of financing in high energy consumption, high pollution and otherfields.

2018年

26.85

2019年 2020年

Equivalent to reduced emissionof COD (10,000 tons)

3.93

4.91

2018年

2019年 2020年

Equivalent to reduced emission ofammonia nitrogen (10,000 tons)

2189.30

4.33

3.94

2018年

2019年 2020年

3.72

Equivalent to reduced emissionof sulfur dioxide (10,000 tons)
8931.025903.644290.422018年

1424.62

2019年 2020年

Equivalent to water saved(10,000 tons)

2018年

3.34

2019年 2020年

Equivalent to reduced emissionof nitric oxides (10,000 tons)

17

03 Services & Innovation

2020 Special Report on Green Finance ICBC

ColumnFinTech Empowerment in Green Credit
Relying on cutting-edge technology, the Bank built a green credit system, and establisheda monitoring system for environmental protection management and control of customers.
It connected with the data system of a third-party institution, updated the environmental
risk information of its customers, and controlled, monitored and analyzed in the financing
business application and post-lending management.

18

The Bank strengthened the statistical management of green loans, enhanced theidentification management authority, and well conducted the entry maintenance, monitoring
and analysis of identification.
Through the above measures, combined with the requirements of “Three Gates andSeven-color Pools” intelligent risk control management, the Bank leveraged customer
environmental risk information and green credit identification to strengthen the managementmeans of due diligence, review and approval of customers with environmental risks, so as
to control the “access” of customers and assets; meanwhile, it tightened the post-lending
monitoring of environmental protection risk to identify the environmental risk of customers
in time. It also took effective measures to mitigate the credit risk and safeguard the asset
credit quality.

Green Bond
The Bank actively benchmarked the goals of peak carbon emissions and carbon neutrality,
deeply exploited the green bond market, innovated and developed green bond underwriting
and issuance business, actively participated in green bond investment and trading, and madeefforts to fulfill the social responsibility of a leading bank with the national government
taking the controlling stakes.

Actively implementing China’s green development concept and sustainable
development strategy, and winning many awards as a green bond issuer

By the end of 2020, the Bank had issued a total of USD 9.83 billion green bonds, whichhave been highly recognized by global investors and international authoritative media andinstitutions. In 2019, the “Guangdong-Hong Kong-Macau Greater Bay Area” green bondissued acting through Hong Kong Branch was awarded the “Asia Pacific Green Bond Dealof 2020” by The Banker and the “Hong Kong Sustainable Development Financial Award The Largest Single Green Bond in the Banking Sector” by Hong Kong Quality Assurance
Authority (HKQAA) in 2020. By the end of 2020, the green bonds issued by the Bank
had won 10 international awards.

“Asia Pacific Green Bond Deal of 2020”“Guangdong-Hong Kong-Macau Greater Bay Area”

Actively responding to the development orientation of national green direct
financing, and innovating and improving the green bond underwriting product line
The Bank comprehensively met the financing needs of financial peers and companies forgreen bonds, and actively pushed forward the development of green bond underwriting
business. In 2020, the Bank, as the lead underwriter, underwrote 10 green bonds of various
types in China’s domestic market, with a combined funding value of RMB 18.043 billion
yuan, for which RMB 4.734 billion of bonds were underwritten by the Bank to channel thefunds to green fields investment, such as green building and clean energy. By the end of
the first quarter of 2021, the Bank had underwritten 48 green bonds of various types, with a
total underwriting amount of over RMB 76 billion.
Meanwhile, it rapidly responded to the call of the country for developing green direct
financing, continuously innovated and diversified the types of green bond products, andimproved the bond underwriting service level. In 2020, as the lead underwriter, the Bank
underwrote the first green financial bond in China that was issued in multiple markets,
i.e. the green financial bond with the theme of “responding to climate change” of China
Development Bank (“CDB”), as well as the first green financial bond with the theme ofprotection of the Yangtze River, i.e. the “Protection of the Yangtze River” green financial
bond of CDB, to help the issuer raise sufficient funds for the smooth implementation ofenergy saving and emission reduction, waste water treatment and other projects.
Responding
to climatechangeProtection of
the Yangtze
River

19

03 Services & Innovation

2020 Special Report on Green Finance ICBC

Actively investing in green bonds and providing financial support forgreen projects

ColumnGreen Bond Cases

The Bank increased the investment in RMB green bonds, providing funding support in
relevant fields. In 2020, RMB 1.26 billion yuan of green bond investments were madein the banking accounts of the Head Office and branches, with an investment balance of
RMB 21.69 billion yuan at the end of the year. The new investment in green bonds of
non-financial enterprises jumped by 554% year on year, with the year-end investment
balance increased by 23% year on year. In 2020, it was awarded as “excellent investment
institution of ChinaBond Green Bond Index Sample Bonds” by China Central
Depository & Clearing Co., Ltd.

20

The Bank continuously grew the investment in green bonds denominated in foreign
currencies, and made constant efforts to optimize the green portfolio structure. In 2020, USD
240 million of green bonds investment in foreign currencies were made through the banking
account of the Head Office, with a year-end investment balance of USD 375 million, a sharp
increase of 53% year on year. The investment targets cover bonds issued by domestic andforeign issuers, including policy banks, commercial banks and manufacturing enterprises, inan effort to meet the funding demand in the development of global green economy.

Vigorously developing green bond trading for the in-depth developmentof domestic green bond market
The Bank deeply participated in the green bond market for the benefits of trading liquidity. In
2020, the trading account of the Head Office executed RMB1,806 million yuan of green bondinvestment transactions in the primary and secondary markets. Among them, RMB 900 billion
yuan was invested in the primary market, a year-on-year increase of 12.5%. As an important
player, the Bank actively led the market peers and maintained market liquidity.
It assisted the issuers to sell green bonds over the counter, and raised the awareness of
responsible investment of the general investors. In 2020, through the counter, the Bank
successfully organized the sales of CDB’s green financial bonds with the themes of“responding to climate change” and “protection of the Yangtze River”, of which, the green
financial bond of “responding to climate change” ranked first among the peers in termsof distribution scale.

Underwriting the first “carbon neutrality bond” as the leadunderwriter
On February 8, 2021, the Bank, as the lead underwriter and book runner, successfullycompleted the issuance of the first green medium-term note (“MTN”) (carbon neutralitybond) of Sichuan Airport in 2021. The MTN is the first “carbon neutrality bond” underwrittenby the Bank and one of the first such bonds issued in the interbank market. The MTN has an
issuance amount of RMB 500 million yuan, with a term of three years and a coupon rate of
3.60%. The use of proceeds is for the construction of Chengdu Tianfu International Airport.
The airport project is a comprehensive green transportation infrastructure construction project
mainly composed of green buildings, which embodies the green nature in many aspects,
such as airport terminal construction projects, water supply and drainage system, rainwater
utilization, new energy, pollution prevention, energy-saving lighting and road greenbelt
projects. According to the assessment of professional institutions, the airport project can
reduce carbon dioxide emissions by 19,700 tons, sulfur dioxide emissions by 5.32 tons,
nitrogen oxide emissions by 5.55 tons and smoke emissions by 1.08 tons every year, an
example of good environmental benefits in carbon emission reduction and social benefits.

Reducing

The Bank guided foreign institutional investors to subscribe for green bonds. In 2020,
foreign institutional investors were guided by ICBC to make subscription for the above two
CDB dedicated green financial bonds in China Interbank Bond Market through CIBM Directand “Bond Connect” , helping the domestic green bond market in further opening-up.

Serving various customers with full product coverage
The green bond products in underwriting and investment business have covered financial
bonds, Super & Short-term Commercial Paper (SCP), medium-term notes (MTN), assetbacked notes (ABN), corporate bonds and other securities, effectively satisfying thefinancing needs of various issuers.
The issuers of green bonds underwritten and invested cover Beijing, Shanghai, Jiangsu,
Shandong, Hubei, Yunnan, and Sichuan, including SOE, local state-owned enterprises,
and joint ventures, covering manufacturing, power generation, water conservation, andtransportation among the key national economic sectors.
The Bank vigorously developed the green financial bond business over the counter, fully
mobilized and inspired small and medium-sized institutional investors and individual investors
to participate in green bonds subscription, and helped to maximize the social impacts of green
finance.

19,700tons of carbon
dioxideemissions5.32 tonsof sulfur
dioxideemissions5.55 tonsof nitrogenoxideemissions

1.08 tonsof smokeemissions

Participating in the issuance of CDB’s first “carbon
neutrality” green finance bond
On March 18, 2021, the Bank actively supported CDB in its effort to issue the first green
financial bond of RMB 20 billion yuan with the theme of “carbon neutrality” bond via “Bond21

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2020 Special Report on Green Finance ICBC

Connect” to domestic and foreign institutional customers and domestic individual customers
in the interbank and over-the-counter markets simultaneously. This bond is China’s first“carbon neutrality” bond with certified label by the Climate Bonds Initiative (CBI).
Use of proceeds is mainly to help achieve the strategic goal of “peak carbon emissions andcarbon neutrality”, support the green projects of environmental protection, energy saving andpollution prevention and control, advance the building of China’s green financial system, andconstantly consolidate the leading and dominant position of development finance in supporting
green development. As the lead underwriter of the bond and the handler of over-thecounter bond business, the Bank attached great importance to the underwriting of the bond,closely communicated with the issuer, and actively completed the signing of underwriting
agreements, over-the-counter customer sales and bank account investment. Meanwhile, it alsoorganized a number of overseas branches and subsidiaries to act as cross-border coordinators,
gave full play to its overseas network and cross-border linkage advantages in overseas sales,
and assisted with the successful issuance of the bond, for which the Bank has won wide
recognition by the issuer and the market.

Cases of Innovative Green Investment and Financing
Guided by the concept of green development, the Bank continued to carry out green finance innovation,
built a green finance product and service system in an all-round way, and effectively expanded thewidth and breadth of the integration of finance service and ecological environment protection. The Bank
provided comprehensive financial service support for green industry using “1 + N” mode, namely “loan+ debt + stock + brokerage + leasing + advisory” and other financial tools. It invested RMB billion
yuan in the national green industry fund to provide financial support for pollution control, ecologicalrestoration and other fields.

8

Clean energy industry

Dubai,
UAE

Supporting the Dubai solar thermal power plant project22

Supporting green bond issuance
Renewable green corporate bond of Sinohydro Bureau
8 Co., Ltd.
The Bank assisted with the issuance of a renewable green corporate bond of SinohydroBureau 8 Co., Ltd., with an amount of RMB 194 million yuan with a term of three years. The
proceeds are used for green project construction, operation, acquisition or repayment of green
industrial project loans and repayment of interest-bearing debts of the company (including its
subsidiaries).

Green MTN of Tianjin Energy Resources Investment Group
The Bank assisted with the issuance of the first phase of green MTN of Tianjin Energy
Resources Investment Group Co., Ltd. in 2020, with an amount of RMB110 million yuan
and a term of three years. The proceeds are used to repay bank loans required for the early
construction of green industry projects.

Assisting Beijing Enterprises Holdings Limited insuccessfully pricing EUR 500 million green bond
In September 2020, ICBC (Asia), as a joint global coordinator, assisted Beijing Enterprises
Holdings Limited in successfully pricing a 5-year senior unsecured fixed rate bond in Reg
S format. The issuance of bond for customers in the international market after three years is
also the company’s debut in the overseas green capital market, breaking a number of bondfinancing market records. The issuance interest rate of the bond is also the lowest among
all euro-denominated bonds of the same rating issued by local state-owned enterprises. All
the funds raised in the issue will be used for the transformation of waste into qualified green
energy assets to achieve sustainable and common development through pollution prevention
and control measures.

The 700 MW solar thermal power and 250 MW solar photovoltaic power station project in Dubai, UAE wasjointly invested by Dubai Electricity and Water Authority (“DEWA”), ACWA and Silk Road Fund. Shanghai
Electric Group acted as the general contractor of the project and jointly designed and constructed the projectwith Spain-based Abengoa and other well-known international power enterprises. It is one of the important
projects under the UAE’s strategy of sustainable development and vigorous development of clean energy. It
represents the highest level of global solar power projects and it is also a demonstration project for China’s“three major powers” to enter the international high-end market.
With a total investment of USD 4.3 billion, the project is the largest new energy project financing in theworld and has been highly recognized by the market. As a lead bank, ICBC arranged a USD 2.5 billion
senior syndicated loan with members from China, Europe and the UAE.
The project is one of the most important cooperation projects of China and the UAE, and it is also a typicalcase of leading Chinese and foreign power enterprises cooperating to develop the market of other countries.
Relevant agreement on the project has been signed in the presence of the leaders of China, the UAE andSpain. On July 18, 2018, a signed article by Chinese President Xi Jinping titled “Working Together for a
Shared Future” was published on Al Ittihad and The National, two mainstream newspapers in the UAE.
According to the article, the project was defined as the world’s largest and most advanced solar thermal
power plant, a China-UAE joint project. It was awarded the “Annual Power Project in the Middle East andAfrica” by the Project Finance International (PFI) of Thomson Reuters, and won the Belt and Road Best
Cooperation Award of interbank regular cooperation mechanism (BRBR) in 2019.
After its completion, the project can provide clean power to more than 270,000 households in Dubai
every year, achieve zero emissions of carbon and pollutants, and reduce carbon dioxide emissions by 1.6
million tons, sulfur dioxide emissions by 110,000 tons, and nitrogen oxides emissions by 50,000 tons.
Meanwhile, through the excellent energy storage capacity of the project, it can make up for the instabilityof solar power generation and the impact on the power grids, and ensure the stability of power supply. The
construction and operationof the project will also create
Reducing carbon Reducing sulfur
about 4,000 jobs directly
dioxide emissions dioxide emissions
and more than 10,000
by 1.6 million tons by110,000 tons
jobs indirectly, playing animportant role in promoting
local employment andReducing nitrogen
economic development.
oxides emissions by

50,000 tons

23

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2020 Special Report on Green Finance ICBC

Guangdong
BranchNingbo Branch

Supporting CGN Yangjiang Nanpeng Island offshore wind farm project

Supporting a distributed photovoltaic power generation project
Haijixing distributed photovoltaic power generation project in Yuyao, Ningbo is a 3.9567 MWp distributed
photovoltaic power station with a design service life of 25 years. The generated power is for self use withthe surplus electricity on grid.
Ningbo Branch of the Bank actively promoted thedevelopment of green industry and granted a loanof RMB 11 million yuan for the project, with aterm of up to 10 years.
Capitalizing the strength of national policies andindustrial technology, the project promoted theadjustment of local power energy structure, reduced
air pollution, and saved fossil fuel resources
by combining solar power generation withbuildings and idle land. The project has significant
environmental and social benefits.

24

CGN Yangjiang Nanpeng Island offshore wind farm project has a total investment of more than RMB7
billion yuan and a construction period of 36 months. The total planned installed capacity of the project is
400MW, and 73 wind turbines with a single unit capacity of 5.5MW are planned to be installed. Meanwhile,
220kV offshore booster station and onshore centralized control center in the wind farm will be built. The
project is the first single large capacity offshore wind power project in China, and also the first offshore wind
power project in Guangdong Province that is more than 10 kilometers away from the coastline and morethan 10 meters deep.

Heilongjiang
BranchSupporting the first batch of affordable on-grid wind power generation projects
Heilongjiang Branch of the Bank has carried out project financing for 150MW affordable wind power
project of Tiefeng Xianghe New Energy, which is one of the first batch of affordable wind power projects
in Heilongjiang Province with large installed capacity and one of the top 100 projects in Heilongjiang
Province.

The Bank has approved a loan of RMB 1.6 billion yuan for the project, with a term of up to 20 years (agrace period of 2 years). During the construction period, the loan will be granted in an unsecured manner.
After the project is put into operation, the power charging right of the project will be pledged as a guarantee
measure. So far it has disbursed a total loan balance of RMB 863 million yuan for the project.

The annual power generation capacity of thewind farm is expected to reach 469,036,100kwh. Compared with thermal power plants withthe same power generation capacity, the project
can save 148,500 tons of standard coal and
207,900 tons of natural coal every year basedon the standard coal consumption of 320g/kwh.
After the completion of wind farm, it will playa positive role in revitalizing the local economic
development. It can not only provide new power,
but also add new local tourist attractions without
creating environmental burden.

After the completion of the project, the annual on-grid power capacity is estimated to be about 1,015 million
kWh. Compared with coal-fired power plants of the same scale, this project can save about 311,500 tons ofstandard coal, reduce about 20,600 tons of ash and reduce about 828,800 tons of carbon dioxide emissions
every year.
Saving about

Reducing about

311,500 tonsof standard coal
every year

828,800 tons
Reducing about

20,600 tons ofashof carbon dioxide
emissions

Saving
150MW affordable wind power generation project of Tiefeng
Xianghe New Energy

148,500 tonsof standard coal every year
Equivalent to207,900 tonsof natural coal25

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2020 Special Report on Green Finance ICBCICBC Leasing

26

Clean productionindustry

Inner Mongolia
BranchSupporting clean energy development

Supporting the project of Erdos City Chengye Environmental Protection Co., Ltd.

Weining Songmukan photovoltaic project is located in Weining County, Bijie City, Guizhou Province, and
CNNC Nayong Shabao and Weixin projects are located in Nayong County, Bijie City, Guizhou Province.
The two counties are key poverty-stricken counties of China. Through the agriculture-solar complementation
photovoltaic project, photovoltaic panels generate electricity on grid, and shade-requiring crops are planted
under the photovoltaic panels, which increases the income through comprehensive land use. Local farmers
can not only earn the rent of photovoltaic land, but also get the income from agricultural cultivation, which
can increase local employment and effectively support local poverty alleviation. On November 23, 2020,
Guizhou Province announced that the remaining nine poverty-stricken counties in the province, including
Nayong and Weining, had been lifted from poverty.

Erdos City Chengye Environmental Protection Co., Ltd. mainly engages in general industrial solid waste
treatment and resource utilization. It is mainly responsible for the general industrial waste residue treatment
project in the west zone of Dalu Industrial Park, Zhungeer Banner, Inner Mongolia. The output of industrial
solid waste involved is very large. The total investment of the project is nearly RMB300 million yuan, whichis in line with the relevant provisions of the country on investment projects.
Through onsite investigation, project evaluation andother means, on the premise of fully understanding
the credit risk, Inner Mongolia Branch of the Bank
approved a 5-year project loan of RMB110 million
yuan for the company on October 1, 2020.

In 2020, ICBC Leasing financed the Weining Songmukan photovoltaic financial leasing project of State
Power Investment Corporation and CNNC Nayong photovoltaic financial leasing project, with an installedcapacity of 80MW and 140MW respectively and an investment amount of about RMB700 million yuan.
The project adopts the mode of direct leasing, which reduces the financing cost for customers through the
deduction of the interest value-added tax of the direct leasing business, and ensures the grid connection of
the project on schedule.
Vigorously developing photovoltaic power generation is an important move to adjust the energy structure,
alleviate the contradiction between energy supply and demand, reduce environmental pollution and achievesustainable development. The clean energy generated by the above-mentioned projects can reduce carbon
dioxide emissions by 264,000 tons and sulfur dioxide emissions by 7,920 tons every year. It effectively
implemented the development philosophy “Lucid waters and lush mountains are invaluable assets”, andmade corresponding contributions to promoting the unification of local environmental benefits and economic
benefits.
Reducing carbon dioxide emissions by

264,000 tons every year
Reducing sulfur dioxide emissions by

Project of Erdos City Chengye Environmental Protection Co., Ltd.

Xinjiang Autonomous
Region Branch

So far, the project has been officially put into
operation. With the normal operation of theenterprise project, it can not only alleviate theenvironmental pollution caused by industrial waste,
but also make great contributions to improving theliving quality of people around Dalu Industrial Park,
protecting the water environment and improving theinvestment environment and the land use efficiency.

Green upgrading of
infrastructure

Supporting the first metro transportation project

7,920 tons

Urumqi Metro Line 1 is the first metro transportation project in Xinjiang. It is a typical project of “green
transportation” and “green travel” in Urumqi. Urumqi Metro Line 1 project runs through the north and southof the city, linking the Santunbei Station to the Airport
Station. It covers Tianshan District, Shuimogou District,
Shayibak District and Xinshi District, with a total lengthof 27.06km.
The total syndicated loan size for the project is RMB12.2
billion yuan, of which RMB1.5 billion yuan was granted
by Xinjiang Branch of the Bank. Actual drawdown
amount of the project so far is RMB1,491 million yuan.

Weining Songmukan photovoltaic project in Bijie City, Guizhou Province

Urumqi citizens travel mainly on foot or by bus.
The development of rail transportation plays animportant role in promoting the comprehensive
development of urban economy, optimizing the urban
spatial structure, guiding the rational use of land,
reducing urban traffic jam, improving the urban
ecological environment and realizing the sustainable
development of the city.

Urumqi Metro Line 1 has been put into normal operation.

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2020 Special Report on Green Finance ICBC

Zhejiang Huzhou
BranchJiangxi Branch

Assisting with the implementation of the first net zero building project

Supporting urban infrastructure construction

Huzhou Science and Technology City Intelligent Science Center project is one of the first green building projects
invested and constructed in CECEP·Huzhou Green Intelligent Ecological Science and Technology City. It is also
the first net zero carbon emission building project of CECEP Industry Development Co., Ltd. in Huzhou.

28

Zhejiang Huzhou Branch of the Bank actively carried out market surveys on financial services in the fieldof green building, and innovated green building loan modes. It provided RMB348 million yuan financing
support for CECEP Huzhou Science and Technology City Intelligent Science Center project. Huzhou Branchinnovation the green building loan modes. The reduction of carbon emissions was defined as an importantpart of pre-lending investigation and project assessment. Preferential interest rate was implemented, and thelimit of earmarked green loans should be approved byprovincial branches, in order to support and encourage
the utilization and development of green building
technology, green building materials and renewableenergy.
Zero carbon buildings can reduce their own pollution
by various means, and make rational use of waste andutilize environment-friendly clean energy to reducecarbon dioxide emissions, and ultimately achieve“zero waste water, zero energy consumption, zerowaste”. The energy consumed by zero carbon buildings
is roughly equal to that generated by itself, so as toachieve net zero emissions.

PPP project of Wusha River pump and sluice hub projectin Nanchang city (design sketch)

In February 2017, the PPP project of Wusha River pumpand sluice hub project in Nanchang city was listed in therecommended project database for cooperation between the government and private capital by the Ministryof finance. So far it has entered the implementation stage, and has been approved by Nanchang Development
and Reform Commission. In response to the financing requirements of enterprises, Jiangxi Branch of the
Bank opened a green channel according to the Bank’s green credit policy, and put forward corresponding
financing solutions to address enterprises’ financing difficulties. So far Jiangxi Branch has granted projectloans of RMB411 million yuan, with a term of 15 years, for project construction.

Huzhou Green Intelligent Ecological Technology City (design
sketch)Hebei Branch

Hubei Branch

Advancing the building of green and liveable towns
The construction of Hubei International Logistics Airport puts
forward higher requirements for regional sewage treatment
capacity. As a supporting project of the “No.1 Project” in
Hubei Province, the comprehensive water environment
treatment project in Aviation Metropolitan District of Ezhou
will energetically enhance the water environment treatment
capacity and continuously improve the water environment
quality of the region.
Hubei Branch of the Bank closely followed the national
implementation subject, tracked the arrangements ofenvironmental protection projects in various places, andactively expanded demonstration and pilot projects in the Water environment treatment project in Aviation
field of environmental protection. By the end of November Metropolitan District of Ezhou
2020, Hubei Branch has approved nearly RMB5 billion yuan of comprehensive treatment projects ofThree Gorges Group and State Development & Investment Corporation Yichang Downtown Area andcomprehensive water environment treatment project of Ezhou Aviation Metropolitan District, with an
cumulative loan amount of more than RMB1.1 billion yuan. Meanwhile, seizing the policy opportunities in
the fields of urban renewal and urbanization, the branch successfully marketed a large number of projects,
such as Wujiu utility tunnel, and granted its first urban renewal loan.

With the rapid development of economy and constructionin Changbei District of Nanchang City, the city hasraised higher requirements for water safety and water
environment quality. The frequent floods and adverse
water environment of Wusha River have become importantfactors restricting the urban development of Changbei.
Wusha River pump and sluice hub project is a control
project in the comprehensive treatment of Wusha River,which integrates the functions of preventing flood disaster,
improving river water environment and raising urban
grade.

Energy saving and environmental
protection industry

Supporting the comprehensive environmental protection project of
Baiyangdian Lake, Xiongan New Area
In order to effectively improve the water quality of Baiyangdian Lake, optimize the surrounding rural
infrastructure and rural service level, and improve the living environment of residents, the new area
implemented the “pilot project of integrated comprehensive systematic treatment of sewage, garbage, public
toilets and other environmental problems in Baiyangdian Lake”. The project is divided into three bidding
sections, including the construction of new (renovated) sewage treatment facilities, pipeline laying, toilet
and domestic waste treatment.
Hebei Branch of the Bank disbursed a project loanof RMB 168 million yuan for the project (bid sectionI) and RMB 182 million yuan for the project (bidsection III).
The loans strongly supported the project
implementation, and played a positive role in
improving ecological environment protection in
Xiongan New Area.

Comprehensive environmental protection project of
Baiyangdian Lake, Xiongan New Area

Granting a project loan of

Granting a project loan of

RMB

RMB

168 million yuan

for the bid section I

182 million yuan

for the bid section III

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2020 Special Report on Green Finance ICBC

Tianjin Branch

30

Xiamen Branch

Green services

Supporting phase-1 Baodi District domestic solid waste incineration power
generation project

Using the innovative “cloud chain mode” to reduce the financing cost ofenterprises for green development

Tianjin Quantai Domestic Waste Treatment Co., Ltd., as the only domestic waste treatment enterprise in
Baodi District, engages in regional domestic waste landfill. With the increasing amount of domestic waste
in Baodi District, the bearing capacity of the original landfill site cannot meet the life needs. In response to
the requirements for environmental protection, the company intends to build the first phase of Baodi District
domestic waste incineration power generation project. To vigorously help the enterprise upgrade industrial
technology and eliminate backward production
capacity, Tianjin Branch of the Bank granted
a project loan of RMB255 million yuan tothe enterprise, in order to ensure the smooth
construction of enterprise project. The project
was put into operation in December 2020.

CSCC (Beijing) Financial Information Service Co., Ltd. (“CSCC”) has established an “N + N + N” supply
chain financial platform mode to effectively link the industrial sector with the financial sector. It proposed
to dismantle the boundary of each industrial chain, integrate resources and optimize value chain from theperspective of the whole industrial chain, cut the cost of social production and operation, improve theefficiency of capital use, and realize the optimal allocation of social resources.

Site of phase-1 domestic waste incineration power generation
project in Baodi District, Tianjin

The project changed the method of domestic
waste treatment from landfill to incineration,
which not only solves the pollution ofdomestic waste in soil and underground water
source, but also turns waste into treasure, andreuses waste resources for power generation,
generating secondary social and economic
benefits.

This business model that the core enterprise signs a Tripartite Cooperation Agreement on Supply Chain
Financial Business with ICBC and CSCC. It is a financial service mode in which the core enterprise, thesupplier and ICBC exchange information online through CSCC, the core enterprise opens CreditCloud(electronic credit voucher for accounts receivable) and issues an unconditional payment confirmation letter,and the business handling institution of the Bank provides financing for the holder of CreditCloud (supplierof the core enterprise) based on the characteristics of CreditCloud that can be split, circulated and financed.
The first supply chain financing provided by Xiamen Branch of the Bank in cooperation with CSCC has
made a breakthrough from zero in this kind of business, accumulated practical experience in promoting
the development of CreditCloud supply chain financial business and boosted the development of internet
finance.

Fujian Branch

Supporting the convertible bond project of Fujian Longking Co., Ltd.
Fujian Branch of the Bank provided financing for the major shareholders of Fujian Longking Co., Ltd.,a listed company, and their concerted actors to subscribe for the convertible corporate bonds issued by
Longking. The proceeds of the convertible bonds were
ultimately used for the production and research &development of environmental protection products, in lightof the national policy on supporting the environmental
protection industry.
This business is an important action taken by the Bank
to actively respond to the call of the country, support
the real economy, and vigorously help the green private
advanced manufacturing industry. It is also a specific steptaken by the Bank to seize the development opportunities
in the capital market, actively innovate business models,and expand business opportunities. It strongly supported
the resumption of work and production of private
manufacturing enterprises of environmental protection.

CSCC supply chain finance platform

In 2020, the Bank provided 100% financing support for
Longking Industry to subscribe for Longking’s convertible
bonds with investment banking debt financing products.

31

04 Operation & Charity

The Bank embedded the idea of green operation and environmental protection into daily operationand management, energetically advocated green office, green purchase and green travel, promoted
energy saving and reduced the impact of its operation on environment in an all-round way. Relying
on financial technology, the Bank continuously explored innovative ways to make every effort todevelop online financial service platform and implement the idea of green finance. Meanwhile, theBank undertook green and environmental protection activities to earnestly improve the ecologicalenvironment and fulfill social responsibilities.

Green Operation

04

Advocating green office to save energy and reduce carbon emissions
The Bank focused on energy-saving office construction, and vigorously promoted green
office ideas in daily work. During the reporting period, the Bank continuously optimized
business trip arrangement, and effectively reduced the energy consumption of vehicles.
Meanwhile, the Bank took solid steps to implement various energy saving measures,
stepped up efforts to save energy, optimized the operation mode of important energyconsuming equipment by new technologies, and tapped potential and reduced consumption.
The Bank actively implemented relevant policies on energy saving and environmental
protection, did a good job in implementing carbon emission trading of institutions in
Beijing, honored commitment to energy saving and emission reduction, and continued topromote the construction of “green bank”. The Bank educated and engaged employees toraise their awareness of energy saving and environmental protection, steadily promoted 22
measures to avoid excessive and unnecessary food waste, and issued the initiative of “Saving
Food, Starting from Me”.
In the reporting period,
the Bank launched 12

Operation &Charity◆◆

Green Operation / 33
Environmental Protection / 38

Mobilemobile office applications,
officeincluding document,
meeting, seal approval,etc.

During the reporting
period, the Bank
Paperless continued to promote
office paperless meetings andtraining, and held 445

The office platform
processed more than 80

million deals, with a daily
average of 330,000

The mobile officeplatform processed morethan 24 million deals,

with a daily average of

80,000

Saving about 3 million

pieces of paper

paperless meetings

Cases of Energy Saving
The Bank adheres to the new development philosophy and firmly takes the road of lowcarbon, recycling and green development. The Bank takes the building of green data centeras an important task to consolidate a new generation of information infrastructure, andactively responds to the basic requirements of the country for guaranteeing the sustainable
development of resources and environment. In the building and operation of the data
center, the Bank always upholds the balance between functionality and energy saving,environmental protection and efficiency, convenience and safety, and embeds the idea of“green and environmental protection” in the whole life cycle of the data center, including
planning, design, construction and operation.

33

04 Operation & Charity

2020 Special Report on Green Finance ICBCIn the planning and design stage, the data center of the Bank insisted on innovation, fully
considered the application of green technology in the field like IT equipment, rack layout,
refrigeration and cooling system, power supply and distribution system, and determined thedifferent design of environmental protection system for different computer rooms.
In the building stage, the Bank maintained the standard of high quality and efficiency,
and prioritized energy-saving, water-saving and low-carbon products with reference to thenational level-A computer room standards. It applied energy-saving technologies and products
like natural cooling, frequency conversion chiller, cold and hot channel closure, transformer
substation close to the load center, UPS module dormancy, high-voltage DC system, intelligent
inspection robot, intelligent lighting and other energy-saving technologies and products among
others, and built a high-standard green data center.

34

In the operation and management stage, the Bank strengthened the refined management,
established a comprehensive system to monitor the environment of the computer room,and realized the measurement, collection and analysis of the data on energy consumptionof various equipment and links in the computer room facilities. It continuously optimized
the operation mode of the equipment, evaluated and formulated the annual PUE voltage
drop index, and kept improving energy-saving operation, maintenance and management.
Meanwhile, a series of energy-saving measures, including using free energy-saving
technology of intelligent refrigeration operation, adopting online air-conditioning energysaving mode, closing the cold and hot channels in the computer room, and optimizing
the air distribution, have been taken to achieve green emission reduction. Besides, theBank continued to strengthen the application of advanced energy-saving technologies
and products in the use of electric energy, water resources and IT equipment, and waste
management and control, and actively explored the adoption of renewable energy.
In 2020, Jiading Park Data Center of the Bank saved a total of 2,125,200 kwh comprehensive
energy consumption, equivalent to 211.88 tons carbon dioxide, which made it enlisted
in the List of National Green Data Centers (2020) jointly released by six ministries andcommissions, namely, the Ministry of Industry and Information Technology, the National
Development and Reform Commission, the Ministry of Commerce, the National Government
Offices Administration, the CBIRC and the National Energy Administration.

Roof of Jiading Park

Intelligent inspection robot

Strictly implementing access management and green procurement
requirements
The Bank implemented the Interim Regulation on Centralized Procurement Managementof State-owned Financial Enterprises issued by the Ministry of Finance, and clarified thecentralized procurement of energy-saving and environmental protection products in the
General Provisions of the Regulation on Centralized Procurement Management (Version2018). In the Administrative Measures for Suppliers of Centralized Procurement (Version2021), the industrial qualifications of the management system (environmental management
system certification, occupational health and safety management system certification, etc.),
social responsibility (product environmental label certification, energy saving certification,social responsibility standard certification, pollutant discharge license, etc.) and equipment(quality and environmental protection product certification (CQC), etc.) are included in thestandards for qualified suppliers, to green procurement access management.
Before been recruited, suppliers shall provide self-assessment and relevant qualification in
respect of environmental protection, energy saving and social responsibility. When reviewing
centralized procurement projects, suppliers should promise to fulfill social responsibility anduphold fair competition. Many large-scale projects, such as the purchase of important blankvouchers and office copy paper, explicitly embeds the environmental protection qualificationsof suppliers in the qualification assessment, and constantly practice the concept of social
responsibility and green environmental protection management. The Bank continuously
urged all institutions to establish the concept of green, energy-saving and environmentfriendly procurement and implement green procurement requirements.
In the accessstage, thesupplier isrequired toprovideEnvironmental management system certification, occupational healthcertification, product environmental label certification, energy saving
certification, social responsibility standard certification, etc.
Measures taken by the company in fulfilling social responsibility inrespect of environmental protection, energy saving, occupational healthand safety, etc. and effect of these measures
Explanations on whether the product has been included in the energy
saving and environmental protection list

Consolidating the foundation by strengthening the training of green financeDuring the reporting period, the Bank carried out green finance related business training bymeans of face-to-face training, online training, morning training and so on. About
people participated in the training in the year and achieved good training results.

83,000Popularizing theconcept of green
development
through special
training

Focusing on green
credit, and paying
attention to theinterpretation of
relevant policies

Paying attention
to the actual effectof work and doinga good job in
grassroots businesstraining

The Bank taught the coursewith the theme of “practicing
the concept of green
development and building abeautiful China” to promote
the implementation of theconcept of green development
and sustainable development
strategy in the Bank.

Five special training courses
on green credit were held,
and relevant courses on the“interpretation of green credit
policy” were added to the
20 business training courses
to boost the compliant andefficient development of theBank’s green credit business.

The “training course on theopinions of comprehensively
strengthening green finance”
was held for grassroots
employees of relevant posts,
to help them pay more
attention to green financebusiness and enhance
performance skills.

Applying technologies and implementing the concept of green development
During the reporting period, the Bank made every effort to forge a reputation as a customeroriented online financial service provider, continuously promoted the “digital andintelligent” transformation of business process, facilitated paperless operation and service,energy saving and emission reduction, and practiced the concept of green development.
Relying on ECOS, a smart banking ecosystem, the Bank launched a series of online service
scenarios, such as change of debit cards without changing numbers, inquiry of bank accountstatement, issuance of credit certification, transfer of the cross-border remittance etc., to promote
the transition of financial services to low cost and low consumption through the order-based
management of the whole business process. Electronic services reduce the consumption oflabor, paper and other resources, and effectively support the sustainable development.

35

04 Operation & Charity

2020 Special Report on Green Finance ICBC

Waste statistics: Electronic information products

Major indicators of green operation
Major indicators of green operation
Proportion of domestic e-banking
business volume
Office paper consumption (Head
Office)Office power consumption (Head
Office of the Bank, kindergarten)
Office water consumption (Head Officeof the Bank, kindergarten)
Oil consumption of official cars (Head
Office of the Bank)

Unit

2020

2019

2018

%

98.70

98.10

97.70

1 million
pieces

8.86

10.26

8.72

kWh

17,290,357

19,667,324

18,394,080

Ton

125,103

177,550

57,339

Liter

Item

Unit

2020

Microcomputer (host)

Set

838

DisplaySet

544

LaptopSet

212

Printer

Set

297

ServerSet

12172,377

OthersSet

674

76,699

Lead acid storage battery (UPS
battery)

Kg

0

Carbon powder

Kg

328.05

Selenium drumKg1124.4

Ink ribbon

Kg

3

67,79636

Greenhouse gas emissions of the institutions
headquartered in Beijing

The Bank standardized
the scrap process ofelectronic products toensure the harmlesstreatment of electronic
waste and minimize
the impact on theenvironment.

37

Improving online smart financeDirect greenhousegas emission

Emission(tons of carbon dioxide)

During the reporting period, the number of online financial

73 billion, accounting for
98.7% of total online transactions

3068.43transactions of the Bank reached

As at the end of 2020, the number of registered customers andMain source

Natural gas
consumption (10,000
cubic meters)

141.91

Online smart
financecard-binding customers of ICBC e Life reachedmillion and64.23

million respectively

91.08

The online transaction volume in 2020 was equivalent to

100,000 physical outlets and nearly 1 million tellers

Indirect greenhousegas emission

Emission(tons of carbon dioxide)

120,000 tons of paper, equivalent to planting
2.4 million trees

Savingof47698.26

78970.64

ICBC Mobile

Main source

Electricity
consumption (mWh)

ICBC Mall
ICBC Link

Note: According to Beijing’s carbon emission management requirements, information on the institutions headquartered in Beijing
includes the information related to the Head Office, the Data Center (Beijing) and Beijing Branch of the Software Development Center.
The relevant energy consumption information is measured according to the Guide to the Measurement and Reporting of Carbon
Dioxide Emission of Enterprises (Entities) in Beijing.

The number of personal
mobile banking users

The annual active corporate
mobile banking customers

reachedreached416 million

The number of ICBC
Mall users reached

161 million
Building

39,000scenario numbers

3.06 million

The amount of transactions
reached RMB
billion

568.6

Opening more than

10,000

numbers

enterpriseUp

15.5% year

on year

The number of users
reached177 million

04 Operation & Charity

2020 Special Report on Green Finance ICBC

Environmental Protection

ICBC (Asia) actively implemented Hong Kong’s
Charter on External Lighting and Guide to Waste
Reduction in Major Events“Protecting the mother river” “Beautiful China, ICBC isin action” campaign Season III
During the World Environment Day, the Bank organized its young employees to actively
participate in the charity activity of protecting the mother river, carry out garbage
sorting and anti-pollution activities, publicized the concept of ecological civilization
and advocate green lifestyle. The activity covered more than 200 cities of 27 provinces,
municipalities and autonomous regions on Huanghe river basin, and more than 7,000
young volunteers participated in the activity.
38

Mother river basin in
The activity covered

more than

27provinces,

municipalities andautonomous regionsin China

A glimpse of activities

200 cities

More than

7,000 young

volunteers participated in
the activity

In 2020, the Environmental Bureau of the Hong Kong Special
Administrative Region Government granted the Platinum Awardof the Charter on External Lighting to the Bank, in recognitionof its continuous observation and implementation of the charterand its contribution to the reduction of light nuisance andenergy waste caused by outdoor lighting in Hong Kong. ICBC
(Asia) continues to implement the Guide to Waste Reductionin Major Events issued by the Environmental Protection
Department of the Government of the Hong Kong Special
Administrative Region, and comprehensively facilitated waste
reduction at source and waste recovery management. Besides,
ICBC (Asia) continued to promote the “Plantation Enrichment
Program”, and worked with people of all walks of life to boost
the sustainable development of green ecology and life in Hong
Kong.

Organizing a series of lectures on green finance charity
During the reporting period, Modern Finance Research Institute of ICBC,
together with Chongyang Institute for Financial Studies of Renmin
University of China, Research Center for Green Finance Development ofTsinghua PBCSF and International Institute of Green Finance of CUFE
organized 11 public lectures and workshops on green finance under theguidance of Green Finance Committee of China Society for Finance andBanking, to provide intellectual support for the sustainable growth of the
global economy.

39

05 Research & Implementation

With upmost attention and a close eye on the cutting-edge research and development trend, theBank attached great importance to green finance research, innovated its research perspective andbroadened research horizons. Meanwhile, the Bank actively participated in global governance onsustainable financial and contributed to the development of global green finance.

05
Research & Implementation

Releasing the Belt and Road green finance (investment) index
At the beginning of 2019, the Bank and Oxford Economics co-developed the Belt andRoad green finance (investment) index based on comprehensive collection and sorting of
the public sample data. In September 2020, the index was officially released at the annual
meeting of the Green Finance Committee of China Society for Finance and Banking.

The index offers a comprehensive assessment methodology

Helping scientifically and systematically measure thegreen economy and finance of the countries along theBelt and Road

Helping investors find more green investment
opportunities

Helping effectively raise the willingness to invest
along Belt and Road and improve efficiency.

41

05 Research & Implementation

2020 Special Report on Green Finance ICBC

Carrying out stress testing and research on environmental risk
quantification and transmission mechanism

42

Developing carbon emission measurement tools

In recent years, the research on stress testing conducted by the Bank has made positive
contributions to that on the environmental risk quantification and transmission mechanismof China’s commercial banks. So far, the research on environmental risk stress testing has
covered three major areas: policy, disaster and price. In 2020, the Bank worked with North
China Electric Power University to carry out the stress test of environmental risk on thecredit risk of commercial banks in coal power industry. Under the unified framework ofenvironmental and climate-related risk analysis, this research quantifies the environmental
risks faced by the coal and power industry in the next 10 years by comprehensively
considering the impact of policies, carbon trading, energy structure transformation and otherfactors. Compared with the previous stress tests, this stress test has three characteristics:
First, the model is more detailed, which can reflect the differentiation of regions and units.
Second, it strives to reflect the real situation of the market, and considers not only thecharacteristics of the industry, but also the impact of the macro environment.Third, thestress scenario setting is relatively strict factoring in the energy structure transformation,and the substitution of clean energy for coal power has been considered. Under the goal of“peak carbon emission and carbon neutrality”, the coal power industry is facing substantial
transformation risks. Commercial banks should study in advance and actively respond tothem, and help customers quicken their pace of the low-carbon transformation.

In 2020, GIP (Green Investment Principles for the Belt and Road ) established three parallelworking groups and its secretariat, aiming at promoting further implementation and indepth development of green finance. Under the leadership of the GFC, the Bank and Swiss
Re jointly acted as the co-chair of Working Group 1, and jointly promoted matters related toenvironmental risk analysis with PwC, the secretariat. It successfully developed the Climate
and Environment Risk Assessment Toolbox (CERAT)8for Belt and Road projects, andmeasured the carbon emissions of energy, transportation and power industries.

Promoting the preparation of financial industry standards
First, the Bank took the lead in compiling the Guide to the Disclosure of Environment
Information of Financial Institutions, an industry standard. In view of the good practice ofthe pilot project of environmental information disclosure in China and the UK, the PBC
has appointed the Bank to take the lead in drafting the Guidelines for Financial Institution
Environmental Information Disclosure together with Industrial Bank Co. Ltd.,and China
Emissions Exchange, which is to be released. Second, ICBC Modern Finance ResearchInstitute was invited to participate in the drafting of and discussion on the Guide to ESG
Evaluation of Listed Companies in China’s Petroleum and Chemical Industry (Standard No.
T / CCIIA0003-2020), a group standard which was officially issued for implementation on
November 18, 2020 with the approval of China Chemical Industry Information Association,
becoming the first ESG evaluation standard for listed companies in China. It offers
listed companies in China’s petroleum and chemical industry a unified standard on ESG
evaluation for reference.

The model ismore detailed
Threecharacteristics of
It strives to stress testingreflect theactual situationof the market

The setting ofstress scenarios
is relatively
strictFocusing on “peak carbon emissions and carbon neutrality” andplaying the supporting role of research
The Bank released the research report titled Financial Support for Achieving the Goalof Carbon Neutrality, indicating that “carbon neutrality” will quicken the pace of lowcarbon transformation of the financial industry. Based on the analysis of the international
experience in financial support for “carbon neutrality”, the Bank put forward the following
suggestions for China’s financial institutions: first, incorporating “carbon neutrality” in thestrategic planning; second, establishing carbon emission measurement standards; third,
improving the green finance policy and management system in support of carbon neutrality;
fourth, embedding carbon emissions in environmental information disclosure; fifth,
strengthening the innovation of low-carbon financial products.

Co-drafting the annual research report on the development ofgreen finance
The Bank and Renmin University of China jointly took
the lead in drafting the 2020 China Green Finance
Development Research Report. It is the fourth yearthat the Bank participated in the drafting of suchreport. This report brings together the wisdom of theregulator, the industry and the academia. It is not only acomprehensive summary of the latest developments in
China’s green finance, but also an in-depth analysis of
hot issues, providing an important reference for policymaking departments, financial institutions, enterprises,
and the academia. Moreover, the Bank participated in thedrafting of the 2020 China Green Finance Development
Report of the PBC for the third consecutive year.

The research report titled Business Opportunities of Commercial Banks under “PeakCarbon Emissions and Carbon Neutrality” was released. The report analyzes the
background of the goal of “peak carbon emissions and carbon neutrality”, and its impact
on the energy, steel, petrochemical and automobile industries, as well as relevant business
opportunities. Finally, it puts forward suggestions for commercial banks to carry out
business related to peak carbon emissions and carbon neutrality. The report points outthat “peak carbon emissions and carbon neutrality” will bring about a lot of business
opportunities, and commercial banks should strengthen the innovation of investment

8

The website of this toolbox is http://cerat.gipbr.net/user/login. At present, it only opens its measurement function to GIP members, but it allows visitors to browse.

43

2020 Special Report on Green Finance ICBC

and financing products and services, such as green credit and green bond. Besides, theinvestment banking departments of commercial banks can also develop green financeproducts through investment banking products and professional consulting services, so as tohelp achieve the goal of “peak carbon emissions and carbon neutrality”.

Analyzing how green finance boosts the development of real
economy, with focus on the theme of “new infrastructure and green
finance”
Based on the analysis of the industrial characteristics and development status of
new infrastructure, in its research titled Green Finance Instill New Vitality into New
Infrastructure 9, the Investment Banking Department of the Bank made an in-depth
analysis on the network of transportation, information and energy highly related to the
new infrastructure, with focus on the theme of “new infrastructure and green finance”.
It puts forward the idea that commercial banks should systematically build a green
investment banking framework, so as to inject new momentum into the development of new
infrastructure.

44

Strengthening the research and convergency of green taxonomy
home and abroad
Green taxonomy is the foundation of green finance, which calls for clear objectives, andbalance between applicability and foresight, as well as differentiation and convergence. On
the basis of sorting out the existing green taxonomy, the Bank’s research paper titled Global
Green Taxonomy and Development10puts forward four directions for future development:
The type of green taxonomy is flourishing and present a trend of diversification;international cooperation will facilitate the convergence; scientific and technologicalinnovation will help refine and modelize the classification; a large number of policies andtools will emerge.

The greenclassification
standard will develop
vigorously andpresent the trend ofdiversification

International
cooperation will
facilitate standard
unification

Futuredevelopment
directions ofglobal green
classification
standards

9International Cooperation
Scientific andtechnologicalinnovation will help
refine and model
classification

A large number ofpolicies and tools
will be created

Wang Bin, Wang Daoxiang, Xu Keyuan. Green Finance Instill New Vitality into New Infrastructure [J]. Modern Finance Guide, 2020, (7): 32-37.
Yin Hong. Global Green Taxonomy and Development [J]. China Finance, 2020, (9): 65-67.

1006

06 International Cooperation

2020 Special Report on Green Finance ICBCIn 2020, the Bank strengthened international exchanges and cooperation in various fields, and jointly
promoted the low-carbon transformation of the global economy, in accordance with the objectives
and principles set out in the United Nations Framework Convention on Climate Change and the Paris
Agreement. The Bank actively participated in the international governance of sustainable development,
promoted China’s green finance innovation program through BRBR, UNEP FI, GIP, GISD Alliance,
TCFD and other cooperation platforms, and contributed ICBC’s wisdom to global green development.

Carrying out international exchanges and cooperation in green financeunder the Belt and Road Bankers Roundtable (BRBR) Mechanism
46

During the first Belt and Road Forum for International Cooperation held in 2017, theBank initiated the establishment of BRBR, in an effort to set up a Belt and Road financial
cooperation platform for information sharing, policy deliberation, projects recommendationand mutual benefit. By the end of 2020, 112 financial institutions from 61 countries andregions had become regular members of BRBR. During the third China International
Import Expo, the Bank and PBC co-organized the Financial Cooperation Forum under the
BRBR Mechanism, which was attended by 40 member institutions. The forum successfully
released the “BRBR Initiative on Supporting Economic Recovery and Supply Chains
Stability”, calling on the partners of Belt and Road to work together to promote sustainableeconomic and social development. In 2020, the BRBR Guidance was approved, and the
BRBR Working Group on Green Finance was about to be set up, so as to continuously
advance the exchanges and cooperation under BRBR mechanism on green finance.
By the end of 2020,

112 financial institutions

had become regular members of BRBR

from

61 countries and regions

Participating in the activities of United Nations Environment
Programme Financial Initiative（UNEP FI）
UNEP FI, as a partnership between UNEP and the global financial sector to mobilize
private sector finance for sustainable development, is committed to playing the role ofglobal financial industry in promoting sustainable development. The Bank is a member of
the Industrial Committee on Banking. In April 2018, UNEP FI set up a core working groupof the Principles for Responsible Banking (PRB). ICBC was recommended by the PBC andthe Green Finance Committee of China Society for Finance and Banking to deeply involvedin the drafting of the principles. It was among the founding signatories of the principles
in 2019. The Bank actively implemented the PRB and put forward its plan on carbon
neutrality, climate change response, social responsibility and other issues. In March 2020,
the Bank attended the webinar on the global banking industry’s fight against the epidemicorganized by UNEP FI, and systematically introduced its major measures to cope with theepidemic and contributed to reopen the economy.

47

Promoting Green Investment Principles (GIP) for the Belt and Road
The Green Investment Principles (GIP) for the Belt and Road is one of the deliverables
made in the second Belt and Road Forum for International Cooperation, aiming to promote
green investment along Belt and Road. The Bank, as the BRBR Secretariat, has madepositive contributions to the promotion and development of GIP. Through attending
the regular meeting and annual meeting of the committee, the Bank presented its green
development ideas and practices, and strengthened its green finance exchanges andcooperation with peers home and abroad.

Actively supporting the Global Investors for Sustainable Development(GISD) Alliance initiated by the UN
To facilitate a resilient recovery of world economy against COVID-19, and to advance the
UN Sustainable Development Goals (SDGs), the Bank actively participated in the GISD
Alliance cooperation, attended the GISD Leaders Extraordinary Meeting on “Covid-19:
Response and Recovery” , introduced its financial services for epidemic prevention andcontrol and poverty alleviation, and shared China’s successful experience in green finance.
It also contributed to the GISD deliverables in developing the Sustainable Development
Investing (SDI) definition, submitting the recommendations rweport to European
Commission’s Renewed Sustainable Finance Strategy Consultation, releasing the Call to
Action for Covid-19 Bond Issuance and promoting cooperation in sustainable development
projects, etc.

On the afternoon of November 6, 2020, the Bank, together with the PBC, successfully held a financial cooperation forum at the
National Exhibition and Convention Center (Shanghai).

2020 Special Report on Green Finance ICBCTaking solid steps to promote the implementation of TCFD framework
and related practice48

As a member institution of TCFD
working group and the lead
institution of China in China-UK
pilot on climate and environmental
risk disclosure, the Bank mainly
participated in the following workin 2020: first, the Bank completed
a survey on its implementationof TCFD recommendations andcomprehensively reviewed thecurrent status of its climate related
financial information disclosure
work; second, it actively participated in the discussion of TCFD working group members’
relevant thematic meetings and the formulation of rules, so as to provide suggestions fordrafting the Report on the Implementation Status of TCFD Recommendations in 2020, theIntegrated Guide to Risk Management and the Guide to Scenario Analysis; third, the Bank
further promoted the pilot project of environmental information disclosure of financial
institutions in China and the UK, and drew up the Objective Framework for Environmental
Information Disclosure of Financial Institutions in China in conjunction with Chinese pilot
institutions, to clarify the objectives and elements of disclosure. In 2019 and 2020, the Bank
prepared and released the Special Report on Green Finance for two consecutive years,
so as to make a helpful exploration on environmental information disclosure. In 2020, theannual work plan was further specified. While doing a good job in climate related financial
information disclosure with reference to the TCFD framework, the Bank promoted pilot
institutions to carry out information disclosure practice in alignment with their own actual
status, and conduct stress test research and quantitative capacity-building.

Pushing forward the work related to theimplementation of TCFD in 2020

Filling in thequestionnaire survey tocomprehensively sort out
the current situation ofclimate related financial
information disclosure

Actively participatingin TCFD working groupmembers’ discussion andrule formulation

Deeply advancing
the pilot projectof environmental
information disclosureof Chinese and British
financial institutions.

Participating in the sub-forum activities of 2020 World Economic
Forum - “shaping the future of green finance”
On March 31, 2020, the online meeting of the sub-forum “shaping the future of green
finance” of the 2020 World Economic Forum was successfully held. The Bank participatedin the meeting to share and introduce its practice in green finance, in an effort to attract
funding and talent for China’s economic green development. Besides, it introduced tothe attendees its work of active participation in global governance, especially the specificpractice in environmental information disclosure and GIP WG1.

07
Appendices

◆
◆
◆
◆

TCFD Recommendations Index / 50
PRB Index / 51
Notes to the Report / 53
Feedback Form / 54

07 Appendices2020 Special Report on Green Finance ICBC

TCFD Recommendations Index

Principles for Responsible Banking (PRB) Index◆ Governance:
Content

Page

Principle
7-87-8a) Describe the board’s oversight of climate-related risks and opportunities.
b) Describe management’s role in assessing and managing climate-related risks and opportunities.

1

We will align our business strategy to be consistent with and contribute toindividuals’ needs and society’s goals, as expressed in the Sustainable Development
Goals, the Paris Climate Agreement and relevant national and regional frameworks.

Alignment

Contents◆ Strategy:
Content50a) Describe the climate-related risks and opportunities the organization has identified over the short, medium,and long term.
b) Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, andfinancial planning.
c) Describe the resilience of the organization’s strategy, taking into consideration different climate-related
scenarios, including a 2°C or lower scenario.

Page
9-12
9-12
45-48

Page

1.1 Describe (high-level) your bank's business model, including the main customer segments
served, types of products and services provided, the main sectors and types of activities, andwhere relevant the technologies financed across the main geographies in which your bank has
operations or provides products and services.

15-35

1.2 Describe how your bank has aligned and/or is planning to align its strategy to be consistent
with and contribute to society's goals, as expressed in the Sustainable Development Goals(SDGs), the Paris Climate Agreement, and relevant national and regional frameworks.

7、10-11、46-48◆ Risk management:
Contenta) Describe the organization’s processes for identifying and assessing climate-related risks.
b) Describe the organization’s processes for managing climate-related risks.
c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into theorganization’s overall risk management.

Page
10-12
10-12
10-12

Principle

2

Impact andTarget Setting

We will continuously increase our positive impacts while reducing the negative
impacts on, and managing the risks to, people and environment resulting from ouractivities, products and services. To this end, we will set and publish targets where
we can have the most significant impacts.

Contents◆ Indicators and goals:
ContentPage

10 -12a) Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its
strategy and risk management process.
b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related 16-18、36-39
risks.
7、11-14c) Describe the targets used by the organization to manage climate-related risks and opportunities andperformance against targets.

Page

10-12

2.1 Impact Analysis

7、10-12

2.2 Target Setting
2.3 Plans for Target Implementation and Monitoring

7-8、10-12

2.4 Progress on Implementing Targets

Principle

3

Clients andCustomers

8

We will work responsibly with our clients and our customers to encouragesustainable practices and enable economic activities that create shared prosperity
for current and future generations.

Contents
3.1 Provide an overview of the policies and practices your bank has in place and/or is planningto put in place to promote responsible relationships with its customers. This should include
high-level information on any programmes and actions implemented (and/or planned), theirscale and, where possible, the results thereof.

Page

10-12

51

07 Appendices2020 Special Report on Green Finance ICBC

3.2 Describe how your bank has worked with and/or is planning to work with its clients andcustomers to encourage sustainable practices and enable sustainable economic activities. Thisshould include information on actions planned/implemented, products and services developed,
and, where possible, the impacts achieved.

Principle

4

10-12

We will proactively and responsibly consult, engage and partner with relevant
stakeholders to achieve society’s goals.

Stakeholders

Scope of the report
Contents

52

4.1 Describe which stakeholders (or groups/types of stakeholders) your bank has consulted,
engaged, collaborated or partnered with for the purpose of implementing these Principles andimproving your bank’s impacts. This should include a high-level overview of how your bankhas identified relevant stakeholders and what issues were addressed/results achieved.

5

Principle

Page7、34-35

We will implement our commitment to these Principles through effective
governance and a culture of responsible banking

Contents

10-12

5.2 Describe the initiatives and measures your bank has implemented or is planning to
implement to foster a culture of responsible banking among its employees. This should
include a high-level overview of capacity building, inclusion in remuneration structures andperformance management and leadership communication, amongst others.

7、38-39

6

Transparency &Accountability

6.1 Progress on Implementing the Principles for Responsible Banking

7-8、10-12

Page

46-49、51

Note: For more information, please refer to the 2020 Corporate Social Responsibility (ESG) Report of Industrial and Commercial Bank of
China Limited.
http://v.icbc.com.cn/userfiles/Resources/ICBCLTD/download/2021/2020shzrCN202103.pdf

Data

Data used in this report is mainly from 2020, most of which is excerpted from the statistical data of
the Bank’s internal systems and branches. Unless otherwise provided, figures involved in this reportshall be in RMB.

FormatWe will periodically review our individual and collective implementation of these
Principles and be transparent about and accountable for our positive and negative
impacts and our contribution to society’s goals.

Contents

This report refers to the Recommendations of the Task Force on Climate-related Financial Disclosure
issued by the TCFD of the Financial Stability Board, the environment-related principles of the
UN Global Compact, and the SDGs of the UN, and meets the Green Credit Statistics System andthe Green Credit Guidelines issued by the CBIRC, the Guidelines for Environmental Information
Disclosure of Listed Companies issued by Shanghai Stock Exchange, the Environmental, Social andGovernance Reporting Guide issued by the Stock Exchange of Hong Kong Limited and other relevant
opinions and guidelines.

Page

5.1 Describe the relevant governance structures, policies and procedures your bank has
in place/is planning to put in place to manage significant positive and negative (potential)
impacts and support effective implementation of the Principles.

5.3 Governance Structure for Implementation of the Principles

Organization scope: This report covers the whole Group, focusing on the Industrial and Commercial
Bank of China Limited.
Time frame: January 1-December 31, 2020, and some contents are beyond this time frame.

Principles for report preparation

Governance & Culture

Principle

Notes to the Report

This report is released in soft copy, which is available on the website of the Bank (www.icbc-ltd.
com). This report is published in Chinese and English. In the case of discrepancy between the two
versions, the Chinese version shall prevail.

53

2020 Special Report on Green Finance ICBC

Feedback FormThank you for reading the Special Report on Green Finance. In order to better meet your reading needs, provide
you and all stakeholders with more valuable information, effectively implement the Bank’s philosophy of green
operation, and fulfill our responsibility and mission of promoting green transformation of the real economy withgreen finance, we earnestly hope that you can make valuable comment on the report and provide it to us by:
Tel: 010-66105355
Fax: 010-81013544
Email: CEIR@icbc.com.cn
Address: 121 C Xuanwumen West Street,
Xicheng District, Beijing
Post code: 100031
54

1. Your overall comment on this report
Very good 〇 Good 〇 Average 〇 Poor 〇2. Which of the following stakeholders you belong to?
Government 〇 Regulator 〇 Shareholder or investor 〇 Customer 〇 Partner 〇 Staff 〇 Others 〇3. To what extent do you think this report can meet your reading needs?
Very good 〇 Good 〇 Average 〇 Poor 〇4. How clear, accurate and complete do you think the information, data and indicators disclosed in thisreport are?
High 〇 Relatively high 〇 Average 〇 Low 〇5. To what extent do you think this report can effectively demonstrate the environmental and social
influence and contributions of ICBC’s green finance work?
Very good 〇 Good 〇 Average 〇 Poor 〇6. To what extent do you think the layout and design of this report are suitable for reading?
Very good 〇 Good 〇 Average 〇 Poor 〇7. Your suggestions on the Bank’s green finance work and this report