ONE

General Information
Vision and objective

In April 2018, UNEP FI announced the initiation of the Principles for Sustainable
Banking project. A core working group was formed consisting of ICBC, together
with the other 27 banks from around the world, has formed the core working
group to draft the principles. The draft principles were released to the world during
the UNEP FI Global Round Table held in Paris, France on 26 November 2018, andhas officially takes effect as from September 2019.

Industrial and Commercial Bank of China Limited (hereinafter referred to as “ICBC”)
has been consciously integrating the social responsibilities into its development
strategy, operation and management activities in the aspects including developing
inclusive finance, supporting targeted poverty relief, protecting environment andresources, and backing social and public welfare undertakings.

On September 22nd 2019, UNEP and global banking representatives released
Principles for Sustainable Banking at UN New York Head Office.As the only Chinesebank in the working group that initiated the Principles, ICBC first signed thePrinciples.

In accordance to the vision of “building a world-class and modern financial
enterprise with global competitiveness featuring delivering excellence, sticking
to our founding mission, customer’s favourite, leading in innovation, security
and prudence and people-oriented”, ICBC has been making constant efforts withfocus on serving the real economy, developing inclusive finance, practicing green
finance, targeted poverty relief, preventing financial risks and other important
initiatives.

In 2018, ICBC, as the Chinese leader of the working group for UK-China
Environmental Information Disclosure Pilot, worked with the group to formulate
the UK-China Environmental Information Disclosure Pilot Work Plan, and issued athree-phase action plan and the 2018 Progress Report on UK-China Climate andEnvironment Information Disclosure Pilot. Each pilot institution will gradually
disclose its environmental information in the next few years.

ICBC has been an active advocate of green finance both nationally andinternationally as a social and environmental commitment. It is a member of thestanding council of Green Finance Committee established under China Financial
Forum. It was the first Chinese commercial bank to join the UN Global Compact
in 2012 and joined the United Nations Environment Programme Finance Initiative(UNEP FI) in 2014.

In December 2018, the “CSI 180 ESG Index” jointly developed by ICBC and China
Securities Index was officially launched. With ICBC’s green ratings as the basis andits long-term data accumulation as an edge, the index has effectively improved theaccuracy and effectiveness of ESG ratings. The index is a manifestation of ICBC’s
active fulfillment of social responsibilities and its practical action in promoting
green economic transformation. It is also another new innovation for sustainable
development.

The vision of ICBC : To build a world-class and modern financial enterprise with global competitiveness.
Issuing green bonds
will be a further
elaboration of ICBC’s
green strategy.

Featuring delivering
excellence2

Sticking toour founding
mission2018 Annual Green Bond Report

Customer’s
favourite

Leading ininnovation

Security andprudence

Issuing green bonds
will also facilitate
the building ofChina’s ecologicalcivilisation.

The issuances willfurther boost ICBC asa Group in deepening
its development
strategies in termsof sustainability andclimate change.

The green bondframework willfurther support ICBC
investors to achieve
their goals in the
fast-growing green
economy.

Peopleoriented

Industrial and Commercial Bank of China Limited

3

Green FinanceGreen Loan
Firstly, in improving its policies
and systems, ICBC has issued theOpinions on Comprehensively
Strengthening the Building ofGreen Finance to define the work
objectives and basic principles aswell as to sort out the main lines
of work and specific measures forstrengthening the building of green
finance, including 27 measuresrelated to six major aspects, namely,
continuous adjustment to green
investment and financing structures,comprehensive reinforcement

Actively implementing its five major development concepts of “Innovation,
Coordination, Green, Opening, and Sharing”, ICBC has put stepping up efforts
on green finance as an important strategy for long-term commitment in various
respects including policies and systems, management processes, business
innovation, and our own performance, fully promoting the building of green
finance, actively supporting the development of green industries, strengthening
the prevention and control of environmental and social risks, and continuously
advancing low-carbon operations, aiming at achieving improvement in economic,
social and ecological benefits at the same pace.

Green Bondsof environmental and social risk
management, active commencementof green financial innovation, earnest
implementation of regulator yrequirements, stronger protection
on green financial organisations
and day-to-day management,
laying a solid foundation for overall
strengthening the building of green
finance, creating an internationallyleading green bank and achieving
the sustainable development ofinvestment and financing operations.
Secondly, in stepping up efforts on

the management of environmental
and social risks, ICBC has been strictly
enforcing compliance from thebottom line for environmental andsocial risks, and implementing fullprocess green credit management.
Thirdly, ICBC has been strengthening
the establishment of green credit
safeguarding measures, reinforcing
the assessment of green credit andthe allocation of resources to improve
the level of information-based green
credit management.

Over the reporting period, ICBC actively practices green finance, which has facilitated the growth of the green bond market.

Raising funds
amounting to RMB

Underwritten

6

66.51

green bonds

billionDuring thereporting period,

2

new dual-currency
green bonds were
issuedAs of the end of the reporting period, the balance of ICBC’s domestic green
credit extended to energy conservation and environmental protection
projects related to ecological protection, clean energy, and the recycling.
With highlights below:

Utilisation of resources

1,237.758

RMB

billionIncrease from the beginning of the year
On 5 June 2018,

On 13 June 2018,

ICBC issued the US dollar and Euro dual-currency green
bond through London Branch and the final issue amount

ICBC issued the US dollar and Hong Kong dollar dualcurrency green bond through ICBC Asia and the final

1.6

was equivalent to US$

billion.The bond wasofficially listed on the London Stock Exchange andbecame the largest green bond listed on the exchange.
The bond has been certified by the Climate Bonds
Initiative (CBI) as “Climate Bonds” in the Climate Bonds
Certification and Post-issuance Certification under the
Climate Bonds Standard.

138.559

RMB

730

issuance amount was equivalent to US$

million. The bond was officially listed on the Hong Kong
Stock Exchange.
The bond was awarded the Pre -issuance Stage
Certificate and the Post-issuance Stage Certificate by theHong Kong Quality Assurance Agency (HKQAA).

For the above two bonds, the green bond framework established by the bank in 2017 has been followed to meet the latest
domestic and international green bond standards.

Increase

12.61%
Higher than the increase in outstandingloans of domestic corporations during thesame period by approximately

6.6

42018 Annual Green Bond Reportbillionpercentage points

Industrial and Commercial Bank of China Limited

5General information of the bonds
As of the end of the reporting period, ICBC issued three dual-currency“Belt and Road” green bonds through Luxembourg Branch, London
Branch and ICBC Asia, with an aggregate issuance amount of US$4.48
billion, all of which were highly recognised and over-subscribed by
global investors.

The amount of aggregate
issuance is

US$

4.48

billionLuxembourg Branch

Reg S

ISIN

XS1830984628

XS1830985278

XS1831163396

Type of issuanceThree-year US dollar
floating-rate

Five-year US dollar
floating-rate

Three-year Euro floatingrate

Issuance amountUSD 500,000,000

USD 500,000,000

EUR 500,000,000

Use of proceeds

For the purpose of financing or refinancing eligible green assets as described in
the Green Bond Framework of Industrial and Commercial Bank of China, covering
areas including “Belt and Road” and national renewable energy, low carbon and low
emission transportation, energy efficiency as well as sustainable water and wastewater
management

Second opinion

Rated as “Dark Green” by the Center for International Climate Research (CICERO) in Osloin accordance with the green bond principles

Issue date

28 September 2017

Issuer’s rating

A1 (Moody’s)

External auditor’sopinionAn external auditor’s opinion issued by Beijing Zhongcai Green Financing Consultant
Ltd. in accordance with China’s green bond standards

Issue rating

A1 (Moody’s)

Certification

Labelled by CBI as “Climate Bonds” on 28 May 2018; awarded the Post-Issuance
Certification by CBI on 4 June 2019

Issue type

Senior unsecured bond

Listing

London Stock Exchange

Issue format

Reg S

Issue date

13 June 2018

ISIN

XS1691909334

XS1692890343

XS1691909177

Issuer’s rating

A1 (Moody’s)Type of issuanceThree-year Eurofloating-rate

Three-year US dollar
floating-rate

Five-year US dollar fixedrate

Issue rating

A1 (Moody’s)

Issuance amount

EUR 1,100,000,000

USD 450,000,000

USD 400,000,000

Issue type

Senior unsecured bondIssue format

Reg S

Use of proceeds

For the purpose of financing or refinancing eligible green assets as described in
the Green Bond Framework of Industrial and Commercial Bank of China, covering
areas including “Belt and Road” and national renewable energy, low carbon and low
emission transportation, energy efficiency as well as sustainable water and wastewater
management

ISIN

XS1839369300

XS1839372601

HK0000425899

Type of issuance

Second opinion

Rated as “Dark Green” by the Center for International Climate Research (CICERO) in Osloin accordance with the green bond principles

Three-year US dollar
floating-rate

Five-year US dollar
floating-rate

Two-year HK dollar fixedrate

External auditor’sopinionAn external auditor’s opinion issued by Beijing Zhongcai Green Financing Consultant
Ltd. in accordance with China’s green bond standards

Issuance amountUSD 200,000,000

USD 200,000,000

HKD 2,600,000,000

Certification

Labelled by CBI as “Climate Bonds” on 26 September 2017; awarded the Post-Issuance
Certification by CBI on 11 October 2018

Use of proceeds

For the purpose of financing or refinancing eligible green assets as described in theGreen Bond Framework of Industrial and Commercial Bank of China, covering areas
including renewable energy, low carbon and low emission transportation, energy
efficiency as well as sustainable water and wastewater management

Listing

Luxembourg Green Exchange LGX (Luxembourg Stock Exchange)

Second opinion

Rated as “Dark Green” by the Center for International Climate Research (CICERO) in Osloin accordance with the green bond principles

Issue date

5 June 2018

External auditor’sopinionAn external auditor’s opinion issued by Beijing Zhongcai Green Financing Consultant
Ltd. in accordance with China’s green bond standards

Issuer’s rating

A1 (Moody’s)
Certification

Awarded the Pre-issuance Stage Certificate by the Hong Kong Quality Assurance
Agency on 28 May 2018; awarded the Post-issuance Stage Certificate by the Hong Kong
Quality Assurance Agency on 5 July 2019

ListingHong Kong Stock Exchange

Issue rating

A1 (Moody’s)Issue type

Senior unsecured bond2018 Annual Green Bond Report

ICBC Asia

London Branch

6

London Branch

Details of ICBC’s overseas green bonds as of the end of 2018

Issue format

Industrial and Commercial Bank of China Limited

7

Awards
Since the issuance of green bonds, ICBC has won

6

major awards as follows:

Green bond awards won by Luxembourg BranchReceived from Finance Asia

Received from International Financing Review Asia (IFR Asia)

The “Best Socially Responsible Investing Bond” (Best SRI
The “Best Environmental,

Bond) award 2 for 2017. The evaluation comments of whichSocial and Governanceinclude “ICBC has created a precedent for other Chinese issuers in
the integration of domestic and foreign green standards” and “while
meeting the green standards of China and the world, the green
framework of ICBC has dispelled the doubts of overseas investors overdefinitions related to the domestic green market”.

Deal” (Best ESG Deal)award1 for 2017.

Green bond awards won by London BranchReceived from CBIAwarded by The Asset

Received from Environmental Finance , aspecialised green media in London

The “Largest Emerging Markets Certified Climate Bond in 2018” award6 .

"Best Green Bond"3 for 2017.
The “Award for Innovation in the Use ofProceeds from Green Bonds"4 for 2018.

Issued by GlobalCapital

The “2018 Asia Pacific Green/SRI Bond Deal of the Year” award5 .

1.https://www.financeasia.com/News/441270,winners-emfinanceasiaems-achievement-awards-part-2.aspx
2.http://www.ifrasia.com/sri-bond/21320981.article
3.https://www.theasset.com/awards/regional-deals-2017-fixed-income
4.https://www.environmental-finance.com/content/awards/green-bond-awards-2018/winners/award-for-innovation-use-of-proceeds-icbc.html
5.http://www.globalcapital.com/article/b19tcwdcbrq2ks/sri-award-winners-2018-revealed

82018 Annual Green Bond Report

6.https://cbi19.climatebonds.net/past-events/2019

Industrial and Commercial Bank of China Limited

9

TWO

Management of Proceeds
Use of Proceeds
ICBC has established the Green Bond
Framework (hereinafter referred toas the “Framework”), under whichfunds raised by ICBC through green
bonds will be used for financing or
refinancing eligible green assets
making contribution to low-carbon
environmental protection, sustainableeconomic development and climatechange. The categories and examplesof eligible green assets are shown in
Table .

“Eligible Green Asset Categories”
for ICBC

Description and Examples“Eligible Green Asset Categories”
for ICBC

Description and Examples

Renewable Energy

Energy Efficiency

Generation and transmission of energy fromrenewable energy sources

Development of products or technology and theirimplementation that reduces energy consumption ofunderlying asset, technology, product or system(s)Renewable energy sources include offshore
and onshore wind, solar, tidal, hydropower
subject to conditions, biomass andgeothermal

Examples include LED lights, improved chillers, improved
lighting technology, and reduced power usage inmanufacturing operations
Improved efficiency in the delivery of bulk energy services
Examples include district heating/ cooling systems, smart
grids, energy recovery technology, and the storage,transmission and distribution of energy that results in
reducedenergy losses

In any case, the eligible
green assets shall exclude
the following categories:
Fossil fuel related assets
Large-scale hydropower
plantsNuclear and nuclear–
related assets

102018 Annual Green Bond Report

Low Carbon and Low Emission
Transportation

Sustainable Water And Wastewater
Management

Low carbon or emission transportation
assets, systems, infrastructure, components
and services excluding any infrastructure or
rolling stock assets used for the transport offossil fuel products

Wa t e r c o l l e c t i o n , t re a t m e n t , re c yc l i n g, re - u s e,technologies and related infrastructure

Examples include rail tam, metro, bus rapidtransit systems, electric vehicles

Examples include water pipes and collection facilities tocollect water/rainwater, dams, treatment plant facilities

Note: Assets in all eligible
categories shall at least
reach the threshold of
relevant official standardsof environmental impacts
recognized in the local
jurisdictions. In case of no
official standards locallyrecognized, corresponding
international standards
shall apply.

Industrial and Commercial Bank of China Limited

11

External assessment and certification

Project Evaluation and Selection

External assessment and certification on green bond framework

1

Proposal

2

Eligible green assets
will firstly be identified
and proposed by ICBC’s
business lines, including
its domestic and foreign
branches and subsidiaries.

Review

They will then bereviewed by a dedicatedgreen bond working
group at ICBC Head
Office which comprises
representatives of:Asset & Liability Management
Department

Item forcertification

Certification standard

Certifying agency

The Green Bond Principlesof the International CapitalMarket Association (ICMA)

Center forInternational
Climate Research(CICERO)

Status of certification(report excerpts)

International Banking Department
Credit and Investment
Management Department
Finance & Accounting Department
Corporate Strategy and Investor
Relations Department
Urban Finance Research Institute
Other departments if relevant“Based on an overall assessment of theactivities that will be financed by the green
bond and the governance of the framework,
ICBC’s Green Bond Framework is awarded the
Dark Green shading..”“We are of the view that:

Prior to the issuance

Post-Issuance

The Green Bond Working Group will review all proposed
Eligible Green Assets to determine their compliancewith the ICBC Green Bond Framework for approvalas “Eligible Green Asset” and form an eligible green
asset list (each “Eligible Green Asset”, collectively the“Eligible Green AssetLists”). In the Green Bond Working
Group, representatives shall be nominated if they haveenvironmental experience and knowledge. The experts
with environmental experience and knowledge enjoya veto power to the final decision on the selection. The
assets vetoed by them shall be excluded from theEligible
Green Asset List.

Annually, the Green Bond Working Group will review the
allocation of theproceeds to the Eligible Green Asset Listand determine if any changes are necessary (for example,
if a project has amortized, been prepaid, sold or otherwise
become ineligible) and facilitate ongoing reporting.

Management ofProceeds

122018 Annual Green Bond Report

The Green Bond Work ing Group will decide anynecessary update of the Eligible Green Asset List (such as
replacement, deletion, or addition of projects) to maintainthe eligibility of the Use of Proceeds.

Proceeds raised by the three green bonds issued by ICBC have been passed in fullto the head office through Luxembourg Branch, London Branch and Hong Kong
Branch, respectively, and are all used for the existing eligible green assets.

2017 ICBC’s
green bondframework

The Green Bond Framework of
ICBC is in line with the Guiding
Opinions on Building a Green
Financial System (Yinfa [2016]
No. 228) jointly issued by the
People’s Bank of China, theMinistry of Finance, the National
Development and Reform
Commission, the Ministr y ofEnvironmental Protection,
the China Banking Regulatory
Commission, the China Securities
Regulatory Commission, andthe China Insurance Regulatory
Commi ssi on, as well as theCatalogue of Projects Supported
by Green Bonds issued by the
People’s Bank of China

Zhongcai Green
FinancingConsultant Ltd.

1. The direction of the use of proceeds and thecategories of assets for application in the Green
Bond Framework are in line with the standardsof The Green Bond Principles 2017 of theInternational Capital Market Association (ICMA);
and in line with the Catalogue of Projects
Supported by Green Bonds (2015 Edition).
2. The Green Bond Framework has establisheda scientific assets evaluation and selection
process, capable of selecting eligible green
assets if it is implemented effectively.
3. The Green Bond Framework has developed
a comprehensive plan for the follow-up
management of proceeds, capable of ensuringthat the proceeds are used for eligible green
assets if it is implemented effectively.
4. The Green Bond Framework has establisheda clear plan for the disclosure of green bondinformation. If it is effectively implemented, it
can ensure effective disclosure of green bondinformation.”

Industrial and Commercial Bank of China Limited

13

External assessment and certification on Issuance
Item forcertification

Certification standard

Certifying agency

Status of certification(report excerpts)“On 26 September 2017, in view of theapplication documents and verification
reports provided by the applicant, theClimate Bonds Standard Committee
agrees to grant “Climate Bond Certified”
to the first climate bond to be issued
u n d e r th e E MT N o f th e a ppl i c a nt
Luxembourg Branch of ICBC.”
Green bonds 2017
Luxembourg
branchClimate Bonds
Standardw

Climate Bonds Initiative
(CBI)

THREE

Use of Proceeds
The three green bonds issued by ICBC raised a total of US$4.48 billion, mainly usedin supporting refinancing of the renewable energy industry and the low carbon
and low emission transportation industries.

“On 11 October 2018, in view of theapplication documents and verification
reports provided by the applicant, theClimate Bonds Standard Committee
agrees to grant “Post-issuance
Certification” to the “Belt and Road”
climate bond, equivalent to US$2.15
billion, issued under the EMTN of theapplicant Luxembourg Branch of ICBC in
September 2017.”

Luxembourg Branch“O n 2 8 M a y 2 0 1 8 , i n v i e w o f t h eapplication documents provided by theapplicant, the Climate Bonds Standard
Committee agrees to grant “Climate
Bond Certified” to the green bond issued
by London Branch of ICBC.”
Climate Bonds
Standardw

Green bonds 2018
ICBC Asia

14

Green Finance
Certification
Schemerequirements

2018 Annual Green Bond Report

Climate Bonds Initiative(CBI)

Hong Kong Quality
Assurance Agency(HKQAA)On 4 June 2019, in view of theapplication documents provided by theapplicant, the Climate Bonds Standard
Committee agrees to grant "Postissuance Certification" to the green
bonds issued by ICBC London Branch.

"Hong Kong Quality Assurance Agency
has proved that the three-year floatingrate US dollar green bond, the five-year
floating-rate US dollar green bond andthe two-year fixed-rate HK dollar green
bond to be issued by Industrial andCommercial Bank of China (Asia) Limited
are in line with the requirements of theGreen Finance Certification Scheme andare applicable to the pre-issuance phaseand the post-issuance phase.”

4.48

billionUse of proceeds

Proceeds US$

Green bonds 2018
London branch

The three green bonds issued by ICBC
raised a total of US$

2.15
billionProceeds US$
London Branch

1.6
billionProceeds USD
ICBC Asia

0.73
billionAmount offunds used US$

2.15

Idle funds US$0billionbillionAmount offunds used US$

Idle funds US$

1.6

0billionbillionAmount offunds used USD

Idle funds US$

0.73
billion0
billionIndustrial and Commercial Bank of China Limited15

Breakdown by Sector
Breakdown by Category

The Eligible Green Assets funded fall into two categories, namely renewable energy(wind and solar) and clean transportation (railway and metro).

Cumulatively

17

Value

USD

Allocated
value

9

USD

1.862

billion

Allocated
value

USD

1.122

Value (US$million)Wind power

4

508

371

73.03

billionLuxembourg
BranchSolar power

6

286

258

90.21

Railway

2

2040

1521

74.56

12

2834

2150

75.86

13

1354

751

55.47

3

283

109

38.52

3

2051

740

36.08

19

3688

1600

43.38

Metro

1

50

50

100.00Railway

1

954

680

71.28

2

1004

730

72.71

Total

569

Wind power

millionRenewableenergy367

Solar power

LondonBranchmillionLow carbon and合计low emission
transportation
railway project

USD

5.045

ICBC Asia
USD

2.941

Railway

TotalbillionValue

Allocatedvalue

合计
Low carbon andlow emission
transportation

billion
Total

1

Allocated
value

16

Note: 1. All amounts are in US dollar.
2. The value refers to loan balance of ICBC share in the project.

metro project

Value

2018 Annual Green Bond Report

Proceeds fromgreen bonds asa percentageof the projectvalue (%)

R enewableenergysolar power generation project

USD

No. ofprojects

Asset Categories

Low carbon andlow emission
transportation

Value

6

Issuerwind power generation project

Amount ofproceeds
allocated(US$million）

USD

USD

50
50

millionmillionIndustrial and Commercial Bank of China Limited

17

Observation of Environmental Accident or Breach

The Eligible Green Assets funded is located in many countries and regions in and outside China.

Breakdown by Region
There have beenIssuerCountries and regions

OutsideChina

Luxembourg
BranchWithinChina

WithinChina

Amount ofproceeds allocated(US$ million)

1

132

132

Thailand

3

11

11

Northwest

3

370

276

East

3

281

210

Central South

1

644

480

Southwest

1

1396

1041

12

2834

2150

1

54

50

Pakistan

1

75

55

Northwest

9

1016

530

Northeast

2

218

100

North

1

114

64

East

1

88

32

Central South

3

1402

539

Southwest

1

721

230

19

3688

1600

UK

LondonBranchValue (US$million)Morocco

Total

OutsideChina

No. of projects

Total
Outside China

Australia

1

50

50

Within China

Northeast

1

954

680

2

1004

730

no

environmental defaults,

breaches or alerts in the Eligible Green Assets
selected as use of proceeds by the end of 2018.

No

project has expired or been replaced.

ICBC Asia

Total

Note: 1. All amounts are in US dollar.
2. The value refers to loan balance of ICBC share in the project.

182018 Annual Green Bond ReportIndustrial and Commercial Bank of China Limited

19

FOUR

Environmental Impacts
Overallenvironmental
benefits

The 3 green bonds issued helped to reduce a total CO2 emission of 11,324,703 tons/
year, including 8,040,170 tons/year by renewable energy projects, and 3,284,533
tons/year by low carbon and low emission transportation projects.

Environmental benefits

IssuerEnvironmental benefits

Type of project

Key impact indicators

Total installed capacity(MW)：2,934

IssuerType of projectWind power
generation

Key impact indicators

Wind power
generation

Total installed capacity (MW)：550
Solar power
generation

LondonBranchCarbon emission reduction：2,075,469

Renewable energy
projects

Low carbon andlow emission
transportation
projects

Annual generation capacity(MWh)：983,371

Annual number of passengers transported
Railway

Carbon emission reduction (tons)：644,968

Annual number of passengers transported
Low carbon andlow emission
transportation
projects

Total: Carbon emission reduction (tons)
Metro

Annual volume of goods transported(10,000 tons)：1,907
Carbon emission reduction (tons)：1,465,998(10,000 people)：4,312
Carbon emission reduction (tons)：1,591,813(10,000 people):1,367
Railway

Annual generation capacity (MWh)：818,859
Carbon emission reduction (tons)：626,225

Total installed capacity(MW)：406
Solar power
generation

Luxembourg
BranchAnnual generation capacity(MWh)：2,538,800

Carbon emission reduction (tons)：4,693,508

Renewable energy
projects

Total installed capacity(MW)：1,100

Annual generation capacity(MWh)：7,197,754

ICBC Asia

Low carbon andlow emission
transportation
projects

6,911,546
Carbon emission reduction (tons)：2,129

Annual number of passengers transported
Railway(10,000 people)：956
Carbon emission reduction (tons)：224,593

Total: Carbon emission reduction (tons)

4,186,435

Total: Carbon emission reduction (tons)

226,722

Note: 1. For renewable energy projects, impacts are calculated following the EIB Carbon Footprint Methodology.
http://www.eib.org/attachments/strategies/eib_project_carbon_footprint_methodologies_en.pdf
2. For low-carbon low-emission transportation projects, impacts are calculated following the index for railway sector in PRC in IEAUIC Energy and CO2 Railway Handbook.
(https://uic.org/IMG/pdf/handbook_iea-uic_2017_web3.pdf) and EIB CO2 evaluation method

202018 Annual Green Bond ReportIndustrial and Commercial Bank of China Limited21

Typical green project case analysis
Case One
Low carbon and low emission
transportation project – rail transportation

Case Three
Low carbon and low emission
transportation projects – Metro

The project is a railway construction project with a mainline length of 350.85
kilometers and a full-line operating length of 361.30 kilometers. Railway grade:level 1; traction: electricity; designed speed: 200.00km/h. The project can shorten
the journey time from Guilin to Liuzhou from over two hours to one hour. The
annual number of passengers transported is 11.793 million people, and the annual
volume of goods transported is 12.7 million tons. It is able to reduce CO2 emissions
by 819,000 tons per year. The construction of the project can effectively resolve theissue of the need for a fast and large-capacity passage in the surrounding areas,
alleviating the intensive conflicts stemming from the north-south transportation
capacity, and playing an important role in promoting the rapid development of thelocal economy and participating in the international economic competition in the
Asia-Pacific region.

The metro project is located in Melbourne, Australia, and is funded by the Victorian
Government and managed by the Melbourne Metro Rail Authority. The project
includes side-by-side railway tunnels from Kensington to South Yarra, covering
five metro stations with a total length of nine kilometres. Electric traction is used.
The project connects the original Cranbourne/Pakenham line to the Sunbury line
to form the new Sunshine- Dandenong line. The project is expected to reduce CO2
emissions by 2,129 tons per year. The project plays an important role in improving
the railway network in the urban areas of Melbourne, expanding the public
transport network of Melbourne and consolidating the status of Melbourne as oneof the world’s most liveable cities.

The annual number of passengers
transported is

The annual volume of goods
transported is

It is able to reduce
CO2 emissions by

11.79312.70

819,000

million people

million tons

The project is expected to reduce CO2 emissions by

2,129

tons per year

tons per year

Case Two
Renewable energy project – wind power
generation
The project is an offshore wind power project located on the east coast of Scotlandwith a maximum depth of more than 56 meters and a maximum height of 188
meters at the tip of the offshore wind turbines. It took altogether three years
from the start of construction to the completion of installation of all offshore
wind turbines, of which, the onshore section began in May 2016 and the offshore
section began in April 2017. The first wind turbine was installed and connected to
the grid in July 2018, and the last wind turbine was installed on 14 May 2019. Afterthe entire project is officially put into operation, the power generated may meetthe electricity demand of about 450,000 local households. With a total installedcapacity of 588 MW, the project can provide about 2,526,300 MWh of clean
electricity per year. It can reduce CO2 emissions by about 1,136,200 tons per year
and other gaseous atmospheric pollutants such as dihydrogen sulphide, nitrogenoxides and soot.

22

The total installed capacity of

The project can provide about

588

It can reduce CO2 emissions by about

2,526,300

1,136,200

MWh of clean electricity per year

tons per yearMW2018 Annual Green Bond ReportIndustrial and Commercial Bank of China Limited

23

FIVE

Disclosure and Reporting
ICBC undertakes to publish the Annual Green Bond Report to provide informationon the allocation of funds and the impact of projects.
This report is an annual report covering the period from 1 January 2018 to 31
December 2018. Some of the contents may go beyond this period.
The Annual Green Bond Report will be updated on a yearly basis and will be
published on www.icbc-ltd.com, the global official website of ICBC. In addition,
ICBC will disclose relevant content through other feasible channels, such as annual
reports and corporate social responsibility reports. These reports will also be
published on www.icbc-ltd.com.
ICBC has engaged Beijing Zhongcai Green Financing Consultant Ltd. to giveexternal assurance for this report.

24

2018 Annual Green Bond Report