1

GENERAL INFORMATION

Vision and Objective for Issuing Green Bonds
Industrial and Commercial Bank of
China was established on 1 January
1984. On 28 October 2005, the Bank
was wholly restructured to a jointstock limited company. On 27 October
2006, the Bank was successfully listed
on both Shanghai Stock Exchange
and the Stock Exchange of Hong Kong
Limited.
Through its continuous endeavor andstable development, the Bank hasdeveloped into one of the leadingbanks in the world, possessing
a n e xc e l l e n t c u s t o m e r b a s e, adiversified business structure, strong
innovation capabilities and market
competitiveness. The Bank regards
service as the very foundation to seek
further development and adheres tocreating value through services whileproviding a comprehensive range offinancial products and services to over

9.691

million corporate704

millioncustomers andpersonal customers.
The Bank has been consciously in-tegrating the social responsibilities
with its development strategy andoperation and management activities, and gaining wide recognition in
the aspects of supporting pandemic
containment, promoting inclusive
finance, backing rural revitalization,
developing green finance and participating in public welfare undertakings.
The Bank always keeps in mind its
underlying mission of serving the real
economy with its principal business,
and along with the real economy itprospers, suffers and grows. Taking
a risk-based approach and neveroverstepping the bottom line, it
constantly enhances its capabilityof controlling and mitigating risks.
Besides, the Bank remains steadfast
in understanding and following thebusiness rules of commercial banks to
strive to be a century-old bank. It also
stays committed to seeking progresswith 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 specializedbusiness model, thus making it “acraftsman in large banking”.

The Bank was ranked
among theTop 1000 World Banksby The Banker

the 1st placein the Global 2000
by Forbes
stand the 1 placein the list of commercial banks of
the Global 500
in Fortune
for theninth consecutive yearstand took the 1 place
among the Top 500
Banking Brandsof Brand Financefor thesixth consecutive year

During the reporting period, being
fully committed to the strategic planof carbon peak and carbon neutrality,
ICBC established and improved thegreen financial development system,
issued the Work Plan of Industrial andCommercial Bank of China Limited for
Carbon Peak and Carbon Neutrality(Trial), and set up the Steering Group
for Carbon Peak and Carbon Neutrality to carry out the systematic planning and overall deployment of theBank’s carbon neutrality efforts. The
Bank conducted in-depth researches on topics such as low-carbon
transformation of commercial banks,financial support for carbon market
development, and business promotion of pilot zones for green financereform and innovation, explored
quantitative assessment methods forcorporate green development, andestablished an assessment mechanism of green finance development
under the framework of Paris Agreement. It also updated and publishedthe 2021 edition of the Belt and Road
Green Finance (Investment) Indexes
Report, took the lead to prepare theindustry standard for environmental
information disclosure by financial institutions, and developed the CERAT
online instrument for environmental
and climate risk analysis leading theWorking Gourp I of “Belt and Road”
Green Investment Principes (GIP) tohelp enterprises and financial institutions quantify the environmental
risks of overseas projects, also led
the Environmental Information Disclosure Working Group of the Green
Finance Committee of People’s Bankof China. It actively participated in
the global financial governance of
the Task Force on Climate-Related
Financial Disclosures, and sparedno efforts to push forward climatechange response and “dual carbon”
work through international platforms
such as United Nations Environment
Programme Finance Initiative (UNEP
FI), Global Investors for Sustainable
Development Alliance (GISD), Principles for Responsible Banking (PRB)of United Nations, “Belt and Road”
Green Investment Principes (GIP), andthe Belt and Road Interbank Regular
Cooperation Mechanism (BRBR).

The issuance of green bonds represents a further interpretation of the ICBC’s
green development strategy, which would help ICBC to achieve the common
goal of “carbon peaking and carbon neutrality” and maximise the combined
value of shareholder, stakeholder and social responsibility. The green bonds will
help ICBC Group deepen its development strategy in areas such as sustainable
development and climate change mitigation.

02

2021 GREEN BOND REPORT

Industrial and Commercial Bank of China Limited

03

Business Development of Green FinanceProtecting 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 has announced
its strategic goals of achieving carbon emissions peak by 2030 and carbon neutrality by 2060, and has dedicated asession to green development in the 14th Five-Year Plan. Achieving carbon peak and carbon neutrality represents a major
strategic decision to coordinate domestic and international markets. It is also an inevitable choice to address resourceand environment constraints and realize sustainable development of the Chinese nation, a solemn commitment to build
a community of shared future for mankind and an inherent requirement for China to promote high-quality economic
and social development. Carbon peak and carbon neutrality have an effect on the global landscape, economic model,
industrial structure and social development. The financial sector should vigorously develop green finance, implement
the new development philosophy fully and faithfully as well as ensure a steady and orderly transition of the economy
and society. As a global systemically important bank, ICBC has always adhered to the business philosophy of promoting
the development of the real economy with green finance. The Bank actively practiced the concept of sustainable
development, deeply rooted green development in its corporate management, and insisted on integrating the conceptof green development into its financial services and its own operations. Being committed to fulfil its economic and social
responsibilities, ICBC is dedicated to protecting the environment, growing the economy, creating jobs and removing
poverty all at the same time through financial means.

During the reporting period, the Bank issued global multi-currency overseas green bonds with the theme of“carbon neutrality” through five overseas branches in Hong Kong, Singapore, Macau, Luxembourg and London,
and was listed on the stock exchanges of Hong Kong, Singapore, Luxembourg, London and Macau simultaneously.
This bond was awarded the “Outstanding Award for Green and Sustainable Bond Issuer (Global Commercial
Banking Industry)-Largest Amount of Carbon Neutrality Themed Green Bond” by HKQAA and the award of "Banks
Quasi-Sov Best Green Bond 2021" by The Asset.

Green Credit

As at the end of the reporting period,
the Bank recorded RMB

Green Bonds

1

Underwriting andinvestment ofgreen bond67

green bonds

140.13billion in total

ICBC actively implemented the national green development philosophy andsustainable development strategy, and continued to improve its financial
service capacity in support of the goals of “carbon peak and carbon neutrality”.
As at the end of the reporting period,
the Bank issued

6
042021 GREEN BOND REPORT

oversea green bonds

634.902

billionbillioncompared
to
the
year
beginningin green loans issued to energy saving andenvironmental protection, cleaner production,clean energy, ecological environment, green
upgrading of infrastructure, green services andother green industries under the CBIRC’s criteria,raising a total of RMB

In addition, the Bank actively invested in the green bond of various types,
including green unsecured bonds, green local government bonds, and green
asset-backed securities, with new investments in green corporate bonds
growing fast throughout the year. The Bank also increased the investment
in green bonds to offer financing support for quality customers in the fields
of ecological protection, clean energy, energy saving and environmental
protection, green transportation, green building, circular economy, low-carbon
economy, and other green sectors.

2

representing an increase of RMB

2,480.621

The Bank underwrites and invests in a wide range of green bonds, including
green finance bond, ultra-short-term financing bond, medium-term note, asset-backed note and corporate bond.
During the reporting period,
the Bank (as lead underwriter) has
underwritten a total ofGreen Bond
Issuance

ICBC did a good job in resource guarantee, assessment guarantee and limit guarantee
for green finance development, gave priority to green credit and other key fields, andactively met high-quality customers’ reasonable financing needs, such as low-carbon
transformation.

with a total amount of USD

13.06

billionand won

12

international
awards in total

Low-Carbon
Operation

ICBC established a self-operating carbon management information statistics andanalysis system, to collect, analyze and summarize historical carbon emission data,laying the foundation for continuous digital carbon emission management.

During the reporting period,
the Bank implemented an independent andcontrollable localization transformation of theoffice platform, optimized

56

system functions such as document
processing and business trip reimbursement

the Head Office of
the Bank heldsavingpaperless meetings

millionsheets of paper

810

5.2

and integrated and optimized
mobile office functions. It
handledand the number of active
mobile office users
increased by more thanmilliontransactions in the whole year%
year on year

270

29

50

Video conference devices
have been applied in% of the Bank’s
meetings were held byvideoconference.

all domestic tier-one
institutions and will be

gradually promoted in subbranches

Industrial and Commercial Bank of China Limited

05

Basic Information of Green Bond
Domestic Green
Bonds

Table 1

With the approval of “Approval of China Banking and Insurance Regulatory
Commission on the Issuance of Green Finance Bonds by ICBC” (《中国银保监
会关于工商银行发行绿色金融债券的批复》)(银保监复〔2021〕702号) and “Decision of the People's Bank of China to Grant Administrative Permission” (《中国人民银行准予行政许可决定书》)(银许准予决字〔2021〕第115号), the Bank
was approved to issue Green Finance Bonds up to RMB30 billion in the National
Inter-bank Bond Market.
On 24 September 2021, the Bank publicly issued ICBC’s 2021 Green Finance
Bonds (Tranche I) in the National Inter-bank Bond Market by book-building. The
bond code is 2128031 with an issue size of RMB10 billion, a term of 3 years andcoupon rate of 2.80%. The proceeds were received on 27 September 2021.

9.935

RMB
billion of which has beenutilized for green projects

Overseas Green
Bonds

2017

Issued by Luxembourg Branch

Issue Date

28 September 2017

Issuer’s rating

A1 (Moody’s)Issue rating

A1 (Moody’s)Issue type

Senior unsecured bondIssue format

Reg S

ISIN

XS1691909334

XS1692890343

XS1691909177

Type of issuanceThree-year Eurofloating-rate

Three-year US dollar
floating -rate

Five-year US dollar
fixed-rateIssuance amount

EUR1,100,000,000

US$450,000,000

US$400,000,000

Use of proceeds

For the purpose of financing or refinancing Eligible Green Assets as described in the Green Bond Frameworkof 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 in theregions and countries surrounding “Belt and Road”

Second opinion“Dark Green” shading by the Center for International Climate Research (CICERO) in Oslo in accordance withthe green bond principles

External auditor’sopinionExternal Assurance by Beijing Zhongcai Green Financing Consultant Ltd. in accordance with China’s green
bond standards

Certification

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

Listing

Luxembourg Green Exchange LGX (Luxembourg Stock Exchange)

2018

Issued by London Branch

Issue Date

5 June 2018

Issuer’s rating

A1 (Moody’s)

As of the end of the reporting period,
ICBC has issued

Issue rating

A1 (Moody’s)Issue type

Senior unsecured bondgreen bonds through its
Luxembourg Branch, London Branch,
ICBC Asia, Singapore Branch, Hong
Kong Branch and Macau Branch,respectively

Issue format

Reg S

As at the end of 2021,
among the proceeds of

10

RMB
billion raised
from the issue of 2021
Green Finance Bonds

while

65

million
RMB
remains unutilized

6

BONDS
with an aggregate issuanceamount equivalent to
US$

13.06

ISIN

XS1830984628

XS1830985278

XS1831163396

Type of issuanceThree-year US dollar
floating-rate

Five-year US dollar
floating-rate

Three-year Eurofloating-rateIssuance amount

US$500,000,000

US$500,000,000

EUR500,000,000

Use of proceeds

For the purpose of financing or refinancing Eligible Green Assets as described in the Green Bond Frameworkof 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 in theregions and countries surrounding “Belt and Road”

Second opinion“Dark Green” shading by the Center for International Climate Research (CICERO) in Oslo in accordance withthe green bond principles

External auditor’sopinionExternal assurance by Beijing Zhongcai Green Financing Consultant Ltd. in accordance with China’s green
bond standards

Certification

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

Listing

London Stock Exchangebillionall of which werehighly recognized and over-subscribedby global investors

06

2021 GREEN BOND REPORT

Details of ICBC’s overseas green bond issuance as of the end of the reporting period

Industrial and Commercial Bank of China Limited

07

2018

Issued by ICBC Asia

2019

Issued by Hong Kong Branch

Issue Date

13 June 2018

Issue Date

9 September 2019

Issuer’s rating

A1 (Moody’s)Issuer’s rating

A1 (Moody’s)Issue rating

A1 (Moody’s)Issue rating

A1 (Moody’s)Issue type

Senior unsecured bondIssue type

Senior unsecured bondIssue format

Reg S

Issue format

Reg S

ISIN

XS1839369300

XS1839372601

HK0000425899

ISIN

XS2052134652

XS2052134223

XS2052134496

HK0000525359

HK0000525334

Type of issuanceThree-year US dollar
floating-rate

Five-year US dollar
floating-rate

Two-year HK dollar
fixed-rate

Type of issuanceThree-year US dollar
fixed-rate

Three-year US dollar
floating-rate

Five-year US dollar
floating-rate

Two-year HK dollar
fixed-rate

One-year Renminbi
fixed-rateIssuance amount

US$200,000,000

US$200,000,000

HKD2,600,000,000

Issuance amount

US$500,000,000

US$1,000,000,000

US$1,000,000,000

HKD4,000,000,000

CNY1,000,000,000

Use of proceeds

For the purpose of financing or refinancing Eligible Green Assets in the Guangdong-Hong Kong-Macau
Greater Bay Area as described in the Green Bond Framework of Industrial and Commercial Bank of China,
covering areas including renewable energy, low carbon and low emission transportation, energy efficiency aswell as sustainable water and wastewater management

Second opinion“Dark Green” shading by the Center for International Climate Research (CICERO) in Oslo in accordance withthe green bond principles

External auditor’sopinionExternal assurance by Beijing Zhongcai Green Financing Consultant Ltd. in accordance with China’s green
bond standards

Certification

Awarded the Pre-issuance Stage Certificate by the HKQAA from August to September 2019;
awarded the Post-issuance Stage Certificate by the HKQAA on 14 September 2020

ListingHong Kong Stock Exchange

Use of proceeds

For the purpose of financing or refinancing Eligible Green Assets as described in the Green Bond Frameworkof 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

Second opinion“Dark Green” shading by the Center for International Climate Research (CICERO) in Oslo in accordance withthe green bond principles

External auditor’sopinionExternal assurance by Beijing Zhongcai Green Financing Consultant Ltd. in accordance with China’s green
bond standards

Certification

Awarded the Pre-issuance Stage Certificate by the HKQAA on 28 May 2018;
awarded the Post issuance Stage Certificate by the HKQAA on 5 July 2019

ListingHong Kong Stock Exchange

2019

Issued by Singapore Branch

2021

Jointly issued by Hong Kong, Singapore, Luxembourg, London and Macau Branches

Issue Date

16 April 2019

Issue Date

21 October 2021

Issuer’s rating

A1 (Moody’s)Issuer’s rating

A1 (Moody’s)Issue rating

A1 (Moody’s)Issue rating

A1 (Moody’s)Issue type

Senior unsecured bondIssue type

Senior unsecured bondIssue format

Reg S

Issue format

Reg S

ISIN

XS1982691070

XS1982691153

XS1982690858

XS1982691237

Issuing branches

Hong Kong Branch

Singapore Branch

Luxembourg Branch

London Branch

Macau BranchType of issuanceThree-year US dollar
floating-rate

Five-year US dollar
floating-rate

Three-year Euro
fixed-rate

Three-year
Renminbi fixed-rate

ISIN

XS2381043350

XS2384565508

XS2384014705

XS2384533563

MO000A3KV710

Issuance amount

US$900,000,000

US$600,000,000

EUR500,000,000

CNH1,000,000,000

Type of issuance

Five-year US dollar
fixed-rate

Three-year US dollar
fixed-rate

Five-year Euro
fixed-rate

Long Four-year
British Poundfixed-rate

Two-year Macau
pataca fixed-rate

US$1,050,000,000

EUR500,000,000

GBP250,000,000

MOP2,000,000,000

Use of proceeds

For the purpose of financing or refinancing Eligible Green Assets as described in the Green Bond Frameworkof 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

Issuance amount

US$1,000,000,000

Second opinion“Dark Green” shading by the Center for International Climate Research (CICERO) in Oslo in accordance withthe green bond principles

Use of proceeds

For the purpose of financing or refinancing Eligible Green Assets with significant carbon emission reduction
benefits as described in the Green Bond Framework of Industrial and Commercial Bank of China, covering
areas including renewable energy, low carbon and low emission transportation.

External auditor’sopinionExternal assurance by Beijing Zhongcai Green Financing Consultant Ltd. in accordance with China’s green
bond standards

Second opinion

Sustainalytics issued a second opinion in accordance with the green bond principles

Listing

Singapore Exchange

External auditor’sopinionExternal assurance by Beijing Zhongcai Green Financing Consultant Ltd. in accordance with China’s Green
Bond standards and China’s carbon neutrality bond standards.

Certification

Awarded the Pre-issuance Stage Certificate and Sustainable Financial Certificate by the HKQAA on 13 August
2021; labelled by CBI as “Climate Bonds” on 30 August 2021

Listing

Singapore Stock Exchange, Hong Kong Stock Exchange, Luxembourg Stock Exchange, London Stock
Exchange, Chongwa (Macao) Financial Asset Exchange

08

2021 GREEN BOND REPORT

Industrial and Commercial Bank of China Limited

09

Bond Awards
Since the inaugural issuance of Green Bonds in 2017, ICBC has won

2017

12

major awards with details as follow:

Green bonds issued by Luxembourg
BranchReceived from Finance Asia

2019

Green bonds issued by Singapore BranchAwarded by The AssetAwarded by The Asset“Best Financial
Institutions Group
Bond” (Best FIG Bond)7

The “Best Issuer
for Sustainable
Finance”

The “Best Environmental, Social andGovernance Deal” (Best ESG Deal)award1 for 20172019Green bonds issued by Hong Kong BranchReceived from IFR Asia

Awarded by The AssetAwarded by The Banker

The “Best Socially Responsible Investing
Bond” (Best SRI Bond) award2
for 2017

The “Best Green Bond"3

The “Deals of the Year 2020 Asia Pacific”8

The comments of which include “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”.

Received from Environmental Finance

Received in the Hong Kong Sustainability Finance Award 2020
held by the Hong Kong Quality Assurance Agency

The “Award for Innovation in
the Use of Proceeds from Green
Bonds"4 for 2018

The “Outstanding Award for Green Bond Issuer Largest Single Green Bond (Banking Industry)”

Granted by GlobalCapital

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

5

2021

Carbon Neutrality Green Bond issued by Hong Kong Branch, Singapore Branch,
Macau Branch, Luxembourg Branch, London Branch

received from HKQAA

2018

Green bonds issued by London Branch

The “Outstanding Award for Green and Sustainable Bond
Issuer (Global Commercial Banking Industry)-Largest Amountof Carbon Neutrality Themed Green Bond”

Received from CBIThe “Largest Emerging Markets Certified
Climate Bond in 2018” award6

awarded by The Asset

The “Banks Quasi-Sov Best Green Bond” for 2021
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

102021 GREEN BOND REPORT

6.https://cbi19.climatebonds.net/past-events/2019
7.https://www.theasset.com/awards/country-awards-2019-deals-north-asia
8.https://www.thebanker.com/Awards/Deals-of-the-Year/Deals-of-the-Year-2020-Asia-Pacific?ct=true

Industrial and Commercial Bank of China Limited

11

2

MANAGEMENT OF PROCEEDS
Table 2Governance Framework
Domestic Green
Bonds

Based on the guiding principles of the Announcement No. 39 [2015] of
the People' Bank of China, the Bank has formulated the "Measures for theManagement of Green Finance Bonds Proceeds (2021 Edition)", whichclearly defines the relevant business processes and division of departmental
responsibilities, and provides for the management of green industry project
evaluation and selection, requirements for the management of proceeds, thirdparty certification and information disclosure management requirements, etc.,
to ensure that the proceeds from green finance bonds can be used for green
industry projects and maximize the green effect.
The Bank identifies the Bank's green industry projects based on the classification
criteria in the Green Bond Endorsed Projects Catalogue (2021 Edition), withreference to the Green Credit Guidelines, the Notice of the General Office of
the China Banking Regulatory Commission on the Submission of Green Credit
Statistics Form, the Green Industry Guidance Catalogue (2019 Edition), and thedefinitions in the national standards of relevant industries, and also taking into
account the Bank's actual situation.

Overseas Green
Bonds

ICBC has established the Green Bond Framework (hereinafter referred to as the“Framework”), under which funds raised by ICBC through green bonds will be
used for financing or refinancing Eligible Green Assets that make contribution
to low-carbon environmental protection, sustainable economic development
and combat climate change. Please refer to Table 2 for the categories andexamples of Eligible Green Assets.

Categories and examples of Eligible Green Assets

Eligible Green Asset Category

Description and Examples

Generation and transmission of energy from renewable energy sources- Renewable energy sources include offshore and onshore wind, solar, tidal, largehydropower (life cycle emissions below 100g CO2e/kWh or power density above 5W/m2), and biomass (lifecycle emissions below100g CO2e/kWh)

Renewable Energy

Construction, maintenance, research and development of zero direct emission (e.g.
electric and hydrogen driven) transportation facilities excluding any infrastructure
or rolling stock assets used for the transportation of fossil fuel or mining products- Examples include metro, rail tram, bus rapid transit systems, and electric vehicles
Low Carbon and
Low Emission
Transportation

Manufacture of key assets, systems, and components dedicated for zero directemission vehicles and vessels

Products or technologies that increase energy efficiency and reduce at least 30%
energy consumption of the related asset(s), technology(ies), product(s) or system(s)- Examples include LED lights, improved chillers, and improved lighting technologies

Improved efficiency in the delivery of bulk energy services

Energy Efficiency- Examples include smart grids and energy storage

In any case, the Eligible Green Assets shall exclude the following industrial
categories:
Water collection, treatment, recycling technologies and related infrastructure

Fossil fuel related assets
Nuclear energy and nuclear related assets
Biomass/feedstock that- will be derived from sources that compete with food production- will be grown in areas which are or were high in biodiversity- will reduce the effectiveness of carbon pools in soil

- Examples include water pipes and collection facilities to collect water or rainwater forrecycling, and wastewater treatment plant facilities

Sustainable Water
Management

Note: Eligible assets in each category shall at least meet the relevant standards as recognised in the respective country. In case of no official or recognised
standards from the respective country, corresponding international standards shall apply.

12

2021 GREEN BOND REPORT

Industrial and Commercial Bank of China Limited

13

Deposit, Use and Management of Proceeds

Project Evaluation and Selection
Domestic GreenBonds

The Bank's green project decision-making process and procedures are divided
into two stages: preliminary project selection and project review.

Preliminary
project
selection
stage

Each branch conducts preliminary assessment and selection of green
projects in accordance with relevant internal standards and procedures,and due diligence and other work is carried out in accordance with theBank's "Measures for the Management of Green Finance Bond Proceeds(2021 Edition)" and relevant provisions of the existing credit approval
process. If the project meets the relevant green requirements, the front
office operation department will make preliminary determination,
determine the classification of green credit projects, and measure theenergy-saving and emission reduction effectiveness indicators when thebusiness supported by relevant credit facilities is initiated.

Project
review
stage

Each branch submits the list of projects meeting the requirements andother information to the Credit and Investment Management Department of the Head Office in accordance with the green project determination process and standards of the Head Office. The Credit and Investment
Management Department of the Head Office will screen the projects
initially selected by each branch and finally determine the green projects
that meet the requirements. The Credit and Investment Management
Department of the Head Office will inform the relevant branches of the
final list of green projects selected and procure the relevant branches tocomplete the project placement in a timely manner.

Overseas Green
Bonds

dedicated Green Bond
Working Group

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 approvalas “Eligible Green Asset” and form
the “Eligible Green Asset List” (eachas “Eligible Green Asset”, collectively
the “Eligible Green Asset List”). For
refinancing projects, the Green Bond
Working Group will prioritize the selection of newer projects.

142021 GREEN BOND REPORT

Domestic Green
Bonds

Upon the issuance of green finance bonds, the Bank will transfer the proceeds
to the designated account and account for them in accordance with the relevant rules. Upon the receival of the proceeds from the issuance of green financebonds, the Bank will continue to follow up the progress of the loan businessdevelopment of green industrial projects, strengthen the management of relevant loan business, implement relevant loan execution monitoring, improve theefficiency of the use of the proceeds, and support the healthy development ofgreen projects on the premise of commercial sustainability and risk control.
The Bank has established a special ledger to strengthen the management ofproceeds from green finance bonds to ensure that all funds raised are used
for green projects during the tenure of the bonds and to implement the credit
policies of the competent authorities to support green projects. Unutilized proceeds awaiting investment can be invested by the Bank in green bonds issued
by non-financial enterprises and money market instruments with high credit
ratings and market liquidity, and other relevant areas in accordance with regulatory requirements. As for the division of internal management, during thetenure of the bonds, the Financial Market Department of the Head Office spearheads the operation and information disclosure of idle funds, while the Credit
and Investment Management Department of the Head Office takes the lead in
the use of proceeds from green finance bonds.

Overseas Green
Bonds

Proceeds raised by the six green bonds issued by ICBC have been transferred infull to the head office through Luxembourg Branch, London Branch, Hong Kong
Branch, Singapore Branch and Macau Branch respectively, and are all used tosupport the existing Eligible Green Assets.

First, Eligible Green Assets will firstly be identified and proposed by ICBC business
units globally, including its subsidiaries and branches. It will then be reviewed
and screened by a dedicated Green Bond Working Group at ICBC Head Office
which comprises representatives of:Asset & Liability
Management +Department

Credit andInvestment
Management
Department+

Corporate
Finance
Department

The Green Bond Working Group shallhave experts with environmental experience and knowledge as its members who have a right to veto. The assets vetoed by them shall be excluded
from the Eligible Green Asset List.
Annually, the Green Bond 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 pro-

+

Urban
FinanceResearch
Institute

External assessment and certification+

Other
relateddepartments

ject has been amortized, prepaid,
sold or otherwise become ineligible)and facilitate ongoing reporting.
The Green Bond Working Group will
decide any necessary update of the
Eligible Green Asset List (such as
replacement, deletion, or addition ofprojects) to maintain the eligibility of
the use of proceeds.

Domestic GreenBonds

The Bank has engaged Lianhe Equator Environmental Impact Assessment Co.,
Ltd. to conduct green bond pre-issuance certification to ensure that the Bank's
policies and internal controls related to the management of green finance bondproceeds, green project evaluation and selection, information disclosure andreporting comply with relevant requirements.
During the tenure of the bonds, the Bank engaged Lianhe Equator Environmental Impact Assessment Co., Ltd. to conduct tracking and evaluation of the green
industry projects supported by the green bonds and the environmental benefits; and Asia Pacific (Group) CPA (Special General Partnership), which posseses
relevant experience and qualifications, has issued a special assurance report on
the use of proceeds.

Industrial and Commercial Bank of China Limited

15

Overseas Green Bonds

Table 3

USE OF PROCEEDSICBC Green Bond Framework - External assessment and certification

Certificationon

Certification
standard

3
ICBC Green Bond Framework

The Green Bond Principles of the International
Capital Market Association (ICMA)

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), PBoC
Announcement No.39 [2015] for “Issuancesof green finance bonds in the interbank
bond market”, PBoC Announcement No.29[2018] for “Strengthening the supervision andmanagement of green finance bonds during
their duration”

Use of Proceeds
Domestic Green
Bonds

During the reporting period,
the Bank launched

15
9.944

new green projects
with loan amount of RMB
billionthe balance at the end of theyear was RMB

9.935
15

billionand the balance involved

Certifying
agencySustainalytics

Beijing Zhongcai Green Financing Consultant
Ltd.

“Assessment Conclusion:

Status ofcertification(excerpts)

Sustainalytics is confident that the Green Bond
Framework of ICBC is robust, transparent, andin alignment with the four core components of
the Green Bond Principles 2021.

1. The green asset categories under theGreen Bond Framework are all in line with thecriteria of the Green Bonds Endorsed Projects
Catalogue (2021 Edition). The selection ofprojects is subject to the description/condition
under the green project categories listed in theGreen Bonds Endorsed Projects Catalogue (2021
Edition).
2. The Green Bond Framework establishes ascientific process for project evaluation andselection, which will effectively select eligible
green assets.
3. The Green Bond Framework has a soundplan for the subsequent management and useof proceeds, which effectively ensure that theproceeds are used for eligible green assets.
The Green Bond Framework establishes a clear
scheme for green bond disclosure, which will
effectively ensure effective disclosure of green
bond information.”

16

2021 GREEN BOND REPORT

projects

At the end of the reporting period,
the Bank utilized RMB

9.935

billionof proceeds

Overseas Green
Bonds

from the latest issue ofbonds with RMB

65

millionremaining unutilized

1
8,333,300

repayment projectwith repayment amount of RMBAmong them, the ratio of
the number of new projects
to the number of refinancing
of stock projects was

2:1

The Bank managed anddeposited the proceed
awaiting investment in strict
accordance with the relevant
regulatory requirements

ICBC has issued six overseas green bonds with an aggregate issuance amountequivalent to US$13.06 billion. As of the end of the reporting period, the 3-year
EUR1.1 billion green bond and the 3-year US$450 million green bond issued
by Luxembourg Branch in 2017, the 3-year EUR500 million green bond and the
3-year US$500 million green bond issued by London Branch in 2018, the 2-year
HKD2.6 billion green bond and the 3-year US$200 million green bond issued by
ICBC Asia in 2018 and the 1-year RMB1 billion green bond and the 2-year HKD4
billion green bond issued by Hong Kong Branch in 2019 had already matured,
resulting in a total balance of ICBC’s existing overseas green bonds equivalent
to US$9.03 billion. The proceeds were mainly used to support refinancing in the
renewable energy industry, low carbon and low emission transportation industry and sustainable water resources management industry, details of which are
set out in table 4.

Industrial and Commercial Bank of China Limited17

Table 4

Use of proceeds of existing overseas green bonds as of the end of the reporting period

2017 Luxembourg Branch

Proceeds

Amount of proceeds
allocated

Idle funds

US$

US$

US$

400

400
millionmillion

US$

US$

US$

million2018 London Branch

500
millionUS$2018 ICBC Asia

200
millionUS$2019 Singapore Branch

2,200
millionUS$2019 Hong Kong Branch

2,500
million2021 Jointly issued bybranches in Hong Kong,
Singapore, Luxembourg,
London and Macau

US$

3,230
million

US$

9,030

Total

million18

2021 GREEN BOND REPORT

500
million

US$

200

0
0
US$

2,500
millionUS$

3,230
millionUS$

9,030
millionTable 50

millionUS$0

millionUS$0

millionUS$0

millionPlacement of green projects by category at the end of the reporting period

No.

Primary
classification

Secondaryclassification

Tertiary classification

No. ofprojects

Investment
balance（RMB million）

Proportion(by amount)

1

Green
infrastructure
upgradeGreentransportation

Urban and rural publicpassenger and freighttransportation

3

6,350

64%

2

Clean energy
industry

Clean energy

Renewable energy facilities
construction and operation

12

3,585

36%

15

9,935

100%

US$

US$

US$

In terms of investment structure, asset categories funded by the Bank’s existing
green bond included wind power generation, photovoltaic power generation
and rail transportation projects, involving 2 primary categories of green infrastructure upgrade and clean energy industry; 2 secondary categories of green
transportation and clean energy; distributed in 13 provinces including Tianjin,
Fujian, Qinghai, Shanxi and Beijing.
As of the end of the reporting period, the balance of green industry projectplacement was as follows:

millionmillionmillionDomestic Green
Bonds

0

million

2,200

Breakdown by Asset Category

Total

Table 6

Distribution of green projects by region at the end of the reporting period

Geographical distribution

Investment balance (RMB million)

No. of projects

Tianjin

5,000

1

Fujian850

1

Qinghai572

2

Shanxi

570

1

Beijing

500

1

Inner Mongolia

495

2

Xinjiang

464

1

Gansu

299

1

Heilongjiang

274

1

Anhui

250

1

Guangdong249

1

Shaanxi

242

1

Ningxia

170

1

Total

9,935

15

Industrial and Commercial Bank of China Limited

19

Overseas Green
Bonds

As of the end of the reporting period, asset categories funded by ICBC’s existingoverseas green bond included wind power generation, solar power generation,
railway transportation, metro transit and urban water conservation.

with a project value ofIssuer

1.365
1.365

US$
allocated funds of

US$

932
911

with a project value ofallocated funds ofbillionUS$

millionUS$

million

5.029
2.756

with a project value ofUS$allocated funds of

US$

5.636
3.956

billionUS$billion2

with a project value ofUS$millionUS$

millionallocated funds of2021 GREEN BOND REPORT42
422017 Luxembourg
BranchProject value(US$ million)

Amount ofproceeds allocated(US$ million)

Proceeds fromgreen bonds asa percentage of
project value (%)

Wind power
generation

1

152

152

100.00

Solar power
generation

2

153

132

86.27

Railwaytransportation

1

644

116

18.01

4

949

400

42.15

1

884

500

56.56

1

884

500

56.56

1

1,313

200

15.23

1

1,313

200

15.23

Wind power
generation

6

463

463

100.00

Solar power
generation

3

206

206

100.00Low carbon andlow emission
transportation

Railwaytransportation

4

1,737

1,489

85.72

Sustainable water
management

Urban water
conservation

2

42

42

100.00

15

2,448

2,200

89.87

Wind power
generation

2

479

479

100.00Urban RailTransit

5

1,906

1,570

82.37

Railwaytransportation

2

451

451

100.00

9

2,836

2,500

88.15

Wind power
generation

2

271

271

100.00

Solar power
generation

2

573

573

100.00Metro transit

4

3,730

2,386

63.97

8

4,574

3,230

70.62

RenewableenergyLow carbon andlow emission
transportation

Total
2018 London
Branch2018 ICBC Asia

Low carbon andlow emission
transportation

Railwaytransportation

Low carbon andlow emission
transportation

Railwaytransportation

Total

Renewableenergy2019 Singapore
BranchbillionUS$

Urban water-saving projects

20billion

9

Urban rail transit projects

No. ofprojects

Asset Categories

Total

9

Railway transportation projects

Breakdown of allocation of proceeds raised by existing overseas green bondsby each green asset category at the end of the reporting periodbillion7

Solar power generation projects

allocated funds ofTable 7

11

Wind power generation projects

with a project value of

Please refer to table 7 for the allocation of the funds raised by the existing overseas green bonds to each asset class at theend of the reporting period.

Total
Renewableenergy2019 Hong Kong
BranchLow carbon andlow emission
transportation

Total
2021 Jointly issuedby branches
in Hong Kong,
Singapore,
Luxembourg,
London and
Macau
Total

RenewableenergyLow carbon andlow emission
transportation

Notes: 1. All amounts are translated to US dollar.
  
2. Project value refers to the loan balance from the Bank for that project.

Industrial and Commercial Bank of China Limited21

Assets funded by existing overseas green bond as of the end of the reporting period were located in a number of countries
and regions both within and outside of China. For the geographical distribution of the assets, please refer to table 8.

Table 8

Breakdown of allocation of proceeds raised by existing overseas green bonds
by region at the end of the reporting period

IssuerNo. ofprojects

Project value(US$ million)

Amount of proceeds
allocated (US$ million)

East

2

153

132

Northwest

1

152

152

Southwest

1

644

116

4

949

400

1

884

500

1

884

500

1

1,313

200

1

1,313

200

Pakistan

1

70

70

Egypt

1

27

27

East

3

590

538

South

1

672

566

Central

2

166

166

Southwest

2

230

230

Northwest

5

693

603

15

2,448

2,200

9

2,836

2,500

9

2,836

2,500

United Kingdom

1

29

29

United ArabEmirates

1

400

400

Central

3

2,086

2,086

South

2

1,886

541

Countries and regions2017 Luxembourg BranchWithin China

Total
2018 - London BranchWithin China

Central South

Total
2018 - ICBC Asia

Within China

Northeast

Total
Outside China

2019 Singapore BranchWithin China

Total
2019 - Hong Kong BranchWithin China

South

Total

Outside China
2021 Jointly issued by branches
in Hong Kong, Singapore,
Luxembourg, London andMacau

Within China

Northeast
Total

1

173

173

8

4,574

3,230

Notes: 1. All amounts are translated to US dollar.
    2. Project value refers to the loan balance from the Bank for that project.

4

ENVIRONMENTAL IMPACTS
OF GREEN BONDS

Domestic Green Bonds
During the reporting period, according to the proportion of the actual amount of the proceeds utilized in the bonds
concerned to the total investment in the invested projects, the bonds concerned can achieve

1,210,600

tons

of CO2 emission reduction

472,800

239.88There wasnomajor pollution incident or any other environmental breach occurred in the green assets supported

tons
of soot emission reduction

319.91

tons

0.96

tons
of NOx emission reductionof standard coal saving

tonsof PM10 emission reduction per year

Overseas Green Bonds

CO2

In particular,
the total annual carbon emission reduction fromrenewable energy projects and low carbon and low
emission transportation projects were

As of the end of the reporting period,
the green assets supported by the proceedsfrom the Bank’s existing overseas green bonds
have contributed to an annual carbon emission
reduction of

24,379,885
450,000

7,148,687
17,231,198

tons

and

tons, respectively

tons

an annual increased water supply capacity of

Major Pollution Incident or Other Environmental Breach

47.98

tons
of SO2 emission reduction

cubic metres

450,000
35,640,700

cubic metres

andand an annual wastewater treatment capacity of

35,640,700

and the annual increased water supply capacity andannual wastewater treatment capacity from sustainable
water resources management projects were

cubic metrescubic metres,

respectively

by the proceeds from the Bank’s existing overseas green bonds as of the end of the reporting period.

222021 GREEN BOND REPORT

Industrial and Commercial Bank of China Limited

23

Table 9

IssuerAsset category

Wind power
generation

RenewableenergySolar power
generation2017 Luxembourg
BranchLow carbon
and low
emissiontransportation

Railwaytransportation

Total: CO2 emission reduction (tons)
2018 London
BranchLow carbon
and low
emissiontransportation

Railwaytransportation

Total: CO2 emission reduction (tons)

2018 ICBC Asia

Low carbon
and low
emissiontransportation

Railwaytransportation

Total: CO2 emission reduction (tons)

Wind power
generation

Renewableenergy2019 Singapore
BranchSolar power
generation

Low carbon
and low
emissiontransportation

24

2021 GREEN BOND REPORT

Railwaytransportation

Environmental impacts
Key impact indicators(By project)

Key impact indicators(By amount of proceeds allocated)

Total installed capacity (MW):400

Total installed capacity (MW):400

Annual generation capacity (MWh):
920,000

Annual generation capacity (MWh):
920,000

CO2 emission reduction (tons):
752,100

CO2 emission reduction (tons):
752,100

Total installed capacity (MW):180

Total installed capacity (MW):155

Annual generation capacity (MWh):
209,300

Annual generation capacity (MWh):180,563

CO2 emission reduction (tons):
171,103

CO2 emission reduction (tons):
147, 611

Annual number of passengers
transported (10,000 people):
1,179

Annual number of passengers
transported (10,000 people):
212

Annual volume of goods transported(10,000 tons):
1,270

Annual volume of goods transported(10,000 tons):229

CO2 emission reduction (tons):
818,798

CO2 emission reduction (tons):
147,466

1,742,001

1,047,177

Annual number of passengers
transported (10,000 people):
730

Annual number of passengers
transported (10,000 people):413

CO2 emission reduction (tons):
513,219

CO2 emission reduction (tons):
290,174

513,219

290,174

Annual number of passengers
transported (10,000 people):
956

Annual number of passengers
transported (10,000 people):
146

CO2 emission reduction (tons):
224,593

CO2 emission reduction (tons):
34,206

224,593

34,206

Total installed capacity (MW):1,851

Total installed capacity (MW):1,851

Annual generation capacity (MWh):
2,129,486

Annual generation capacity (MWh):
2,129,486

CO2 emission reduction (tons):
1,641,207

CO2 emission reduction (tons):
1,641,207

Total installed capacity (MW):260

Total installed capacity (MW):260

Annual generation capacity (MWh):
296,488

Annual generation capacity (MWh):
296,488

CO2 emission reduction (tons):
211,246

CO2 emission reduction (tons):
211,246

Annual number of passengers
transported (10,000 people):
5,151

Annual number of passengers
transported (10,000 people):
4,415

CO2 emission reduction (tons):
4,493,255

CO2 emission reduction (tons):
3,851,618

Issuer2019 Singapore
BranchKey impact indicators(By project)

Key impact indicators(By amount of proceeds allocated)

Annual increased water supply capacity(CBM): 450,000

Annual increased water supply capacity(CBM): 450,000

Annual wastewater treatment capacity(CBM): 35,640,700

Annual wastewater treatment capacity(CBM): 35,640,700

6,345,708

5,704,071

Annual water supply capacity (m )450,000

450,000

Annual wastewater treatment
capacity (m3)35,640,700

35,640,700

Total installed capacity (MW):150

Total installed capacity (MW):150

Annual generation capacity (MWh):
1,537,159

Annual generation capacity (MWh):
1,537,159

CO2 emission reduction (tons):
1,191,298

CO2 emission reduction (tons):
1,191,298

Annual number of passengers
transported (10,000 people):
59,283

Annual number of passengers
transported (10,000 people):
48,831CO2 emission reduction (tons):
4,591,825

CO2 emission reduction (tons):
3,782,286

Annual number of passengers
transported (10,000 people):
1,196

Annual number of passengers
transported (10,000 people):
1,196

CO2 emission reduction (tons):
218,813

CO2 emission reduction (tons):
218,8136,001,936

5,192,397

Total installed capacity (MW):1,700

Total installed capacity (MW):1,700

Annual generation capacity (MWh):
1,377,156

Annual generation capacity (MWh):
1,377,156

CO2 emission reduction (tons):
939,804

CO2 emission reduction (tons):
939,804

Total installed capacity (MW):1,350

Total installed capacity (MW):1,350

Annual generation capacity (MWh):
4,427,433

Annual generation capacity (MWh):
4,427,433

CO2 emission reduction (tons):
2,241,929

CO2 emission reduction (tons):
2,241,929

Annual number of passengers
transported (10,000 people):
85,517

Annual number of passengers
transported (10,000 people):
54,705CO2 emission reduction (tons):
6,370,695

CO2 emission reduction (tons):
4,075,334

9,552,428

7,257,067

Asset category
Sustainablewater
resources
management

Urban water
conservation

CO2 emission reduction (tons)
Total:

3

Renewableenergy2019 Hong Kong
BranchWind power
generation

Metro transit
Low carbon
and low
emissiontransportation
Railwaytransportation

Total: CO2 emission reduction (tons)

Wind power
generation

2021 Jointly issuedby branches
in Hong Kong,
Singapore,
Luxembourg,
London and
Macau

RenewableenergySolar power
generation

Low carbon
and low
emissiontransportation

Metro transit

Total: CO2 emission reduction (tons)

Notes: 1. For renewable energy projects, impacts are calculated based on the EIB Carbon Footprint Methodology. https://www.eib.org/attachments/publications/eib_project_carbon_footprint_methodologies_2022_en.pdf
2. For low carbon and low emission transportation projects, impacts are calculated based on the index for railway sector in PRC in IEA-UIC Energy and CO2
Railway Handbook(https://uic.org/IMG/pdf/handbook_iea-uic_2017_web3.pdf ) and EIB CO2 evaluation method

Industrial and Commercial Bank of China Limited

25

5

DISCLOSURE AND REPORTINGICBC commits to publish an annual green bond report (“the “Annual Green Bond Report”),
which will provide information on the allocation of proceeds from green bonds and theenvironmental impacts.
This report is an annual report covering the period from 1 January 2021 to 31 December
2021. Some of the contents may go beyond this period.
The Annual Green Bond Report will be publicly available via annual updates on ICBC’s
official global website www.icbc-ltd.com. In addition, ICBC will make disclosure throughother channels where feasible, such as annual reports and corporate social responsibility
reports, which will also be published on www. icbc-ltd.com.
ICBC has engaged an independent third party to provide external assurance for this report.

262021 GREEN BOND REPORT