Green Bond FrameworkforIndustrial and Commercial Bank of China
August 2021

Table of Contents

Purpose ............................................................................................................................. 3
Assertions from the Management ................................................................................... 3
Background ....................................................................................................................... 3
Rationale of ICBC Green Bond Framework ................................................................... 4
United Nations Sustainable Development Goals (“UNSDGs”) .................................... 6
Framework Overview ....................................................................................................... 7
1. Use of Proceeds ............................................................................................ 7
2. Project Evaluation and Selection ................................................................. 93. Management of Proceeds ............................................................................ 9
4. Reporting ...................................................................................................... 10
External Review .............................................................................................................. 11
Disclaimer ........................................................................................................................ 122

PurposeThis Green Bond Framework (the “Framework”) has been developed to demonstrate how
Industrial and Commercial Bank of China (“ICBC” or the “Bank”) will issue Green Bonds tofund new and existing projects with environmental benefits.
Green Bonds issued under this Framework will finance existing and new projects that arealigned with the Green Bond Principles 2021 (the “GBP”) issued by International CapitalMarket Association (the “ICMA”) and the Green Bond Endorsed Projects Catalogue (2021
Edition) issued jointly by the People’s Bank of China (PBoC), the National Development andReform Commission (NDRC) and the China Securities Regulatory Commission (CSRC) (the“China Green Bond Project Catalogue”).
In addition, Green Bonds issued by ICBC under this Framework can further be certified by the
Climate Bond Initiative (“CBI”) in accordance with the Climate Bonds Standard (“CBS”).

Assertions from the Management
For each Green Bond issued, ICBC asserts that it will adopt (i) Use of Proceeds, (ii) ProjectEvaluation and Selection, (iii) Management of Proceeds, and (iv) Reporting, as set out in thisFramework.

Background
ICBC was established on January 1st 1984. On October 28th, 2005, the Bank was wholly
restructured to a joint-stock limited company. On October 27th, 2006, ICBC was successfully
listed on both Shanghai Stock Exchange and the Stock Exchange of Hong Kong Limited on
the same day.
Through its continuous endeavor and stable development, ICBC has developed into theleading bank in the world, possessing an excellent customer base, a diversified businessstructure, strong innovation capabilities and market competitiveness. The Bank regards
service as the very foundation to seek further development and adheres to creating value
through services while providing a comprehensive range of financial products and services to
9.20 million corporate customers and 690 million personal customers. ICBC has been
consciously integrating the social responsibilities with its development strategy and operation
management activities, and gaining wide recognition in the aspects of supporting pandemic
containment, promoting inclusive finance, backing poverty alleviation and rural revitalization,
developing green finance and participating in public welfare undertakings.
ICBC always keeps in mind its underlying mission of serving the real economy with its
principal business, and along with the real economy it prospers, suffers and grows. Taking arisk-based approach and never overstepping the bottom line, ICBC constantly enhances its
capability of controlling and mitigating risks. Besides, the Bank remains steadfast inunderstanding and following the business rules of commercial banks to strive to be a
century-old bank. ICBC also stays committed to seeking progress with innovation while
maintaining stability, continuously enhances the key development strategies, actively
develops the FinTech and accelerates the digital transformation. The Bank unswervingly
delivers specialized services, and pioneers a specialized business model, thus making it “acraftsman in large banking”.
Ranking first in the Top 1000 World Banks by The Banker magazine, first in the Global 2000
by Forbes, and first in the list of commercial banks of the Global 500 in Fortune for nine3

consecutive years, ICBC also took the first place among the Top 500 Banking Brands of Brand
Finance for five years in a row.

Rationale of ICBC Green Bond Framework
ICBC Business Philosophy: Protecting the ecological environment and addressing
climate change have become a common challenge for the world at present. A board
consensus has been formed in the international community. The Chinese government hasannounced its strategic goals of achieving carbon emissions peak by 2030 and carbon
neutrality by 2060, and has dedicated a session to green development in the 14th Five-Year
Plan. As a global systemically important bank, ICBC has always adhered to the businessphilosophy of promoting the development of the real economy with green finance. The Bank
actively practiced the concept of sustainable development, deeply rooted green developmentin its corporate management, and insisted on integrating the concept of green development
into its financial services and its own operations. Being committed to fulfil its economic andsocial responsibilities, ICBC is dedicated to protecting the environment, growing the economy,
creating jobs and removing poverty all at the same time through financial means.
Strategic Governance Structure: ICBC has made its strategic goal to develop into aworld-leading green bank with good international reputation. In 2007, ICBC took the lead in
China to clarify the development philosophy of “Green Credit” and vigorously promote thedevelopment of green finance in a top-down manner. As the forerunner and leader of green
finance, ICBC has always adhered to the business philosophy of promoting the developmentof the real economy with green finance. The Bank resolutely implemented the arrangements
for advancing ecological civilization and responding to climate change, fully leveraged theimportant role of green finance in transitioning to the green and low-carbon production andlifestyle, and regarded green finance as a key strategy for long-term pursuit. With strategic
guidance, policy support, reform & innovation, and global service comprising a four-wheel
drive, ICBC comprehensively promoted the formation of a green finance system, to improve
economic, social, and ecological benefits simultaneously.
Long-Term Management Mechanism: ICBC has actively absorbed advanced concepts
from around the world and formed a green finance strategic advancing mechanism under theoverall leadership of the Green Finance Committee of the head office, with 23 departments
collaborating and dividing the work, domestic and overseas branches proactively innovating
and all staff participating in the process. On this basis, ICBC has continuously increased its
support in differentiated policy and incorporated the concept of green development into every
aspect of financial services and operation management to ensure the effective implementationof the green finance strategy and promote the development of the real economy with green
finance.
Green Business and Activities: Over the years, ICBC has established a comprehensive
green finance service system through multiple channels, and covering products including
green loans, green bonds, industrial funds, asset securitization, trusts and leasing. For many
years, the total scale of green credit in ICBC has remained the first place in China banking
industry, with growth rates consistently higher than the average level of all loans. Green Loans
were invested in areas including energy conservation and environmental protection, clean
production, clean energy, protection of ecological environment, green infrastructure upgrading
and green services. Meanwhile, the Bank accelerated the pace of transition to a low-carbon
investment and financing structure, and continuously increased the proportion of renewableenergy projects in the energy financing portfolio. In addition to green credit, ICBC also
provided a full range of other green products and services, including bond investment, asset
management, and lease financing. As a leader in green finance in China banking industry, theBank actively guided social capital to invest in green areas.

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Global Exchange and Cooperation: ICBC proactively engaged in international
governance for sustainable development and promoted global green and low-carbon
development through platforms such as Belt and Road Inter-bank Regular Cooperation(“BRBR”), United Nations Environment Programme Finance Initiative ("UNEP FI"), and Green
Investment Principles (“GIP”) for the Belt and Road. Relying on BRBR, ICBC carried out
international exchange and cooperation on green finance, adopted the BRBR guidelines
document, prepared for the establishment of the BRBR Green Finance Working Group, andcontinuously promoted the work of BRBR on green finance; ICBC also actively participated in
the activities of UNEP FI; Striving to put into practice the United Nations Principles for
Responsible Banking (“UNPRB”), ICBC actively spoke out on topics such as carbon neutrality,
climate change and social responsibility; The Bank solidly promoted the implementation of theframework of the Task Force on Climate related Financial Disclosure (“TCFD”) as well. Whilst
in China, ICBC is a member of the standing council of Green Finance Committee (“GFC”)
established under the China Financial Forum. In 2018, ICBC assisted GFC and the City of
London to jointly draft the GIP for the Belt and Road, and became the first signatory; ICBC
joined hands with the pilot institutions to formulate the "UK-China Climate and Environmental
Information Disclosure target framework", to encourage the pilot institutions to carry out
climate-related financial information disclosure practices, and to push forward stress testingand quantitative research; The Bank also jointly released the Green Finance (Investment)
Index. ICBC has been an active advocate of green finance both nationally and internationallyas a social and environmental commitment.
Risk Management Mechanism: ICBC continued to strengthen the management ofinvestment and financing risks in environmentally sensitive areas, embedded theenvironmental, social and climate risk assessment requirements into the entire investment
and financing business approval and management process, in which ICBC implements thegreen one-vote veto system throughout the entire process. The Bank continuously improved
the risk management mechanism, conducted special green credit audits, strengthened green
credit assessment, and comprehensively improved environmental (climate) and social risk
management. Meanwhile, ICBC is proactively pushing forward the research in green finance,
including conducting stress testing on the impact of environmental risk on commercial banks’credit risk, which provides a tool for global financial institutions to study environmental risks.
On the other hand, ICBC developed ESG Green Finance Rating and Green Index products toestablish a scientific evaluation system, which is the first of its kind among China’s domestic
commercial banks, and has been well-received by global investors.
Corporate Social Responsibility: “Excellence for you - excellence services to customers,
maximum returns to shareholders, real success for our people, great contribution to society” is
not only a social responsibility objective of ICBC, but also the solemn commitment made tovarious stakeholders. The Bank is committed to serving common interests of various
stakeholders in economic and social development, promoting sustainable economic
development and social progress, developing core values such as “Integrity, Humanity,
Prudence, Innovation and Excellence”, and maximizing comprehensive value to economy,
environment and society.
Reporting Transparency: ICBC prepares social responsibility reports annually withreference to the Global Reporting Initiative (“GRI”)’s Sustainability Reporting Standards (GRI
Standards), the Ten United Nations Global Compact (UNGC) Principle and the ISO26000”
Social Responsibility Guideline (2010)”, and obtains independent third-party assurance
reports. Starting from 2019, the Bank prepared the Special Report on Green Finance (the“Special Report”) with reference to the TCFD recommendations to showcase its practices andsuccesses in optimizing its green finance system, innovating green financial products andservices, and enhancing its green performance on an annual basis. While in 2021, as the only5

Chinese financial institution in the core working group of the UNPRB, ICBC elaborated on its
efforts to integrate environmental and climate considerations into its strategic governance,business processes, investment and financing decisions in the Special Report with reference
to UNPRB.
Recognition Received: ICBC gained extensive social recognition by its good
performance in social responsibility fulfillment and green finance strategy promotion. The
Bank were awarded such as the “Annual Best Practice for Achieving SDGs” by the Global
Compact Network China, the “Best Green Commercial Bank in China” by the Asiamoney, the“Best Green Bond Award in China” by the FinanceAsia, the Outstanding Underwriter Awardfor the constituent securities of the China Bond Green Index by the China Central Depository& Clearing (“CCDC”), and the SGCX-ESG50 Index Enterprise. Meanwhile, ICBC was selected
as a constituent stock of the Hang Seng Sustainability Index. By the end of 2020, the Bank’s
green bonds issued previously have cumulatively won 10 international awards, including IFR
Asia, The Asset and Environmental Finance.
The issuance of Green Bonds is a further elaboration of the Bank’s consistent sustainability
strategy, and will assist in achieving the common goal of carbon emissions peak and carbon
neutrality by maximizing the value of shareholders, stakeholders and social responsibility.
This will further boost ICBC as a Group in its strategies related to sustainable development
and combating climate change. This Framework is a further step in supporting ICBC’s
investors to meet their objectives in the fast-growing green economy.

United Nations Sustainable Development Goals (“UNSDGs”)
On 25 September 2015, at the United Nations Sustainable Development Summit, 193
member states formally adopted 17 UNSDGs to transform the world, with a purpose to movetowards a sustainable development path by addressing the problems in the economic, socialand ecological dimensions of sustainable development, in an integrated manner between
2015 and 2030.

The Green Bonds issued by ICBC contribute to the following UNSDGs:
 Goal 6: Clean Water and Sanitation
 Goal 7: Affordable and Clean Energy
 Goal 9: Industry, Innovation and Infrastructure Goal 11: Sustainable Cities and Communities

Framework Overview
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ICBC established the Framework under which the Bank plans to finance or refinance, in whole
or in part, Eligible Green Assets as defined below:
1. Use of Proceeds
The proceeds of each ICBC Green Bond will be used to finance or refinance Eligible Green
Assets that promote environmental protection, sustainable economic development, andcombating climate change.
The Eligible Green Assets consist of Eligible Green Asset Categories from the various
business units of ICBC.
Eligible Green Asset Categories
Eligible Green
Asset Categories
Renewable energy

Cleantransportation

Eligibility CriteriaGeneration and transmission ofenergy from renewable energy
sourceso Renewable energy sources
include offshore andonshore wind, solar, tidal,
large hydropower (lifecycle
emissions below 100g
CO2e/kWh or power density
above 5 W/m2), and biomass(lifecycle emissions below
100g CO2e/kWh)Construction, maintenance,
research and development ofzero direct emission (e.g.
electric and hydrogen)transportation facilities
excluding any infrastructure or
rolling stock assets used for thetransportation of fossil fuel ormining productso Examples include metro, rail
tram, bus rapid transit

UNSDG
Alignment1

Environmental
Objectives2
Climate change
mitigation

Target 7:
Ensureaccess toaffordable,
reliable,sustainable
and modern
energy for all
Climate change
mitigation andpollution
prevention &control
Target 11:
Make cities
and humansettlements
inclusive,
safe, resilientand1

Partial alignment for demonstration only. Full mapping please refer to:https://www.icmagroup.org/green-social-and-sustainability-bonds/mapping-to-the-sustainable-development-goals/
2

Partial alignment for demonstration only. Full mapping please refer to:https://www.icmagroup.org/assets/documents/Sustainable-finance/2021-updates/Green-Project-Mapping-June-2021-100621.pdf

7

Energy efficiencySustainable water
and wastewater
managementsystems, and electricvehiclesManufacture of key assets,systems, and components
dedicated for zero directemission vehicles and vessels
Products or technologies that
increase energy efficiency andreduce at least 30% energy
consumption of the related
asset(s), technology(ies),
product(s) or system(s)o Examples include LED
lights, improved chillers, andimproved lighting
technologies
Improved efficiency in thedelivery of bulk energy services
o Examples include smart
grids and energy storage
Water collection, treatment,
recycling technologies andrelated infrastructureo Examples include water
pipes and collection facilities
to collect water or rainwaterfor recycling, andwastewater treatment plantfacilities

sustainable

Climate change
mitigation

Target 9:
Build resilient
infrastructure, promotesustainableindustrializati
on and foster
innovation
Pollution
prevention &control
Target 6:
Ensureavailability
andsustainable
managementof water andsanitation forall

Note: Assets in eligible categories shall at least reach the threshold of relevant official green
standards of environmental impacts recognized in the local jurisdictions. In case of no official
standards locally recognized, corresponding international standards shall apply.
For the avoidance of doubt, in any case, the Eligible Green Assets shall exclude theassets that are involved in the following sectors or activates below：
 Fossil fuel related assets
 Nuclear and nuclear related assets
 Biomass/feedstock thato will be derived from sources that compete with food production
o will be grown in areas with currently or previously high in biodiversity
o will decrease carbon pools in soil

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2. Project Evaluation and Selection
Eligible Green Assets will be from the various business units of ICBC globally, including its
branches and subsidiaries.
They will then be reviewed by a dedicated Green Bond working group at ICBC Head Office(the “Working Group”) which comprises representatives of:






Asset & Liability Management Department
Credit and Investment Management Department
Corporate Banking Department
Modern Finance Research Institute
Other departments if relevant

Prior to the issuance, the Green Bond Working Group will review all proposed Eligible Green
Assets to determine their compliance with the ICBC Green Bond Framework for approval as“Eligible Green Asset” and form an eligible green asset list (each “Eligible Green Asset”,
collectively the “Eligible Green Asset List”). For refinancing project, the Working Group willprioritize the most recent projects.
In the Working Group, representatives nominated shall include experts possessing
environmental experience and knowledge, and enjoy a veto power to the final decision on theselection. The assets vetoed by them shall be excluded from the Eligible Green Asset List.
Annually, the Working Group will review the allocation of the proceeds to the Eligible Green
Asset List and determine if any changes are necessary (for example, if a project has
amortized, been prepaid, sold or otherwise become ineligible) and facilitate ongoing reporting.
The Working Group will decide any necessary update of the Eligible Green Asset List (such as
replacement, deletion, or addition of projects) to maintain the eligibility of the Use of Proceeds.
3. Management of Proceeds
Prior to the issuance of a Green Bond, ICBC shall develop a preliminary Eligible Green Asset
List in accordance with the procedures as described in the Project Evaluation and Selection
section to ensure that the proceeds can be allocated to the Eligible Green Assets in a timely
manner.
A Green Bond allocation register (the “Register”) will be established to record the allocation ofGreen Bond proceeds. The proceeds of each ICBC Green Bond will be deposited in thegeneral funding accounts and “earmarked” pending allocation.
The Register will contain, for each Green Bond issued, information including:1) Details of Green Bond: currency, amount, ISIN, pricing date, maturity date, etc.
2) Details of Eligible Asset List: information including:Eligible Green Asset Categories

Summary of details of projects financed such as amount, project description, age ofthe project, etc.
Amount of allocated proceeds on the projects

Other necessary information so that the aggregate of issuance proceeds allocated to
the Eligible Green Assets is recorded at all times

Estimated environmental and social impact where applicable of the projects financed

9Any balance of issuance proceeds not allocated to Eligible Green Assets will be held inaccordance with ICBC’s sound and prudent liquidity management policy. The remaining
unallocated proceeds will be handled as compliant with the relevant green bond standards ofthe issuing location, which includes to be temporarily invested in Green Bonds issued by
non-financial enterprises, money market instruments with good credit rating and market
liquidity in the domestic and international markets until they are allocated to Eligible Green
Assets. The unallocated proceeds shall not be invested in highly polluting, high-carbon
emission or resource-intensive projects.
4. Reporting
ICBC commits to publish a Green Bond Annual Report which will provide information on
allocation and impacts on an annual basis, and provide timely updates shall there be any
material changes to the projects allocated.
For Green Bonds issued in China domestic interbank bond market out of this framework,
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ICBC will also follow the requirements in the Chinese Green Bond Standards , which include
disclosure on the use of proceeds to the market on a quarterly basis. The Bank will disclose
the annual report on the use of proceeds and special auditor’s report from the previous year,
and the use of proceeds in the first quarter of the year by 30th April every year. The annual
report on the use of proceeds from last year will also be reported to the PBoC.
1) Allocation Reporting
Information will be provided on amounts equal to the proceeds of the Green Bond issued andprovide disclosure on the below aspects:(i)aggregate amount allocated to the various Eligible Green Asset Categories(ii)
remaining balance of funds which have not yet been allocated(iii)
geographical distribution of the proceeds (on country level)(iv)
examples of Eligible Green Assets (subject to confidentiality disclosures)
Furthermore, ICBC will confirm that the use of proceeds of the Green Bond issuance conforms
to the Framework.
2) Impact Reporting
ICBC will endeavor to report on the relevant environmental and social impacts by project andon a pro-rated basis according to the share of ICBC’s Green Bond financing where applicable
resulting from Eligible Green Assets, and the relevant information on the methodology andassumptions used for impact evaluation.
Subject to the nature of Eligible Green Assets and availability of information, ICBC aims toinclude, but not limited to, the following potential impact indicators:

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The China Green Bond Standards includes (i) the “Green Bonds Endorsed Projects Catalogue (2021 Edition)” jointly announced by the
PBoC, NDRC and CSRC; (ii) the PBoC Announcement No. 39 [2015] for the “Issuances of green financial bonds in the interbank bondmarket”; and (iii) the PBoC Announcement No.29 [2018] for “Strengthening the supervision and management of green financial bonds
during their duration”

10Eligible Green Asset
Categories
Renewable energy
Clean transportation

Energy efficiency
Sustainable water andwastewater management

Potential Impact Indicators











KWh of power generated from renewable energy
Tonnes of CO2 (or other GHG) avoided
Tonnes of CO2 (or other GHG) avoided
Length of new tracks built (km)No. of passenger
No. of electric vehicles purchased
KWh of energy saved per year
Percentage energy efficiency achieved
Amount of water saved
Amount of waste water treated

The Green Bond Report(s) will be publicly available via annual updates on ICBC’s official
global website www.icbc-ltd.com.
ICBC will also make disclosure through other channels where feasible, such as annual reports
and corporate social responsibility reports, which will also be published on www.icbc-ltd.com.

External Review
ICBC has engaged Sustainalytics to act as an external reviewer of this Framework for GBPalignment and Beijing Zhongcai Green Financing Consultant Ltd. to act as an external
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reviewer of this Framework for the Chinese Green Bond Standards . The Second Party
Opinions and relevant assessment reports released by Sustainalytics and Beijing Zhongcai
Green Financing Consultant Ltd. will be made publicly available on ICBC official global
website www.icbc-ltd.com.
ICBC will engage an independent third party to provide assurance on its Green Bond Annual
Report which will provide information on allocation and impacts.

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The China Green Bond Standards includes (i) the “Green Bonds Endorsed Projects Catalogue (2021 Edition)” jointly announced by the
PBoC, NDRC and CSRC; (ii) the PBoC Announcement No. 39 [2015] for the “Issuances of green financial bonds in the interbank bondmarket”; and (iii) the PBoC Announcement No.29 [2018] for “Strengthening the supervision and management of green financial bonds
during their duration”

11Disclaimer
The information and opinions contained in this Green Bond Framework are provided as at thedate of this document and are subject to change without notice. ICBC does not assume any
responsibility or obligation to update or revise any such statements, regardless of whether
those statements are affected by the results of new information, future events or otherwise.
This Green Bond Framework is provided for information purposes only and does not constitute,or form part of, any offer or invitation to underwrite, subscribe for or otherwise acquire or
dispose of, or any solicitation of any offer to underwrite, subscribe for or otherwise acquire or
dispose of, any debt or other securities (“securities”) of ICBC and is not intended to provide thebasis for any credit or any other third party evaluation of securities. If any such offer or
invitation is made, it will be done so pursuant to separate and distinct documentation in theform of a prospectus, offering circular or other equivalent document and any decision topurchase or subscribe for any securities pursuant to such offer or invitation should be madesolely on the basis of such prospectus and not this material.
This material should not be considered as a recommendation that any investor should
subscribe for or purchase any securities. Any person who subsequently acquires securities
must rely solely on the final prospectus published by the ICBC in connection with suchsecurities, on the basis of which alone purchases of or subscription for such securities should
be made. In particular, investors should pay special attention to any sections of the final
prospectus describing risk factors. The merits or suitability of any securities or any transaction
described in these materials to a particular person’s situation should be independently
determined by such person. Any such determination should involve an assessment of thelegal, tax, accounting, regulatory, financial, credit and other related aspects of the securities orsuch transaction.
This material is not intended for distribution to, or use by, any person or entity in any
jurisdiction or country where such distribution or use would be contrary to law or regulation.
This Green Bond Framework may contain projections and forward looking statements. Anysuch forward-looking statements involve known and unknown risks, uncertainties and otherfactors which may cause the ICBC’s actual results, performance or achievements to bematerially different from any future results, performance or achievements expressed or
implied by such forward-looking statements. Any such forward-looking statements will bebased on numerous assumptions regarding ICBC present and future business strategies andthe environment in which ICBC will operate in the future.
Further, any forward-looking statements will be based upon assumptions of future events
which may not prove to be accurate. Any such forward-looking statements in these materials
will speak only as at the date of these materials and ICBC assume no obligation to update orprovide any additional information in relation to such forward-looking statements.

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