Special Report on Green Finance (TCFD)

Industrial and Commercial Bank of China Limited

2021

Table of Contents

CONTENTS

Foreword/02

01 Governance/05

02 Strategy/14

03 Policies and Procedures/20

04 Risk Management/24

05 Green Investment and Financing /29(Metrics and Targets)

06 Green Operations/56(Metrics and Targets)

07 Forward-looking Research/71

08 International Cooperation/75

09 Awards/84

10 Appendices/86Foreword
As the low-carbon and sustainable development has become a global consensus, the yearof 2021 witnessed the encouraging progress made on the international green cooperation.
The 15th meeting of the Conference of the Parties (COP 15) to the Convention on Biological
Diversity, and the 26th meeting of the Conference of the Parties (COP 26)to the United
Nations Framework Convention on Climate Change (UNFCCC) were successfully held,
conveying to the world a firm belief in collective response to the climate change challenge.
The philosophy of carbon neutrality has further taken hold. More countries have been
devoted to achieving their carbon neutrality pledge or committed to cut carbon emissions,and taken more active actions to promote global climate governance.
After China announced the dual-carbon goals in September 20201, the year 2021 can be seen
as a new start of China’s efforts for carbon neutrality2. 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 resource and environment constraints
and realize sustainable development of the Chinese nation, a solemn commitment tobuild a community of shared future for mankind and an inherent requirement for China topromote high-quality economic and social development. The Central Government issued theWorking Guidance for Carbon Dioxide Peaking and Carbon Neutrality in Full and Faithful
Implementation of the New Development Philosophy and the Action Plan for Carbon
Dioxide Peaking Before 2030 in succession, gradually completing the top-level design ofcarbon peak and carbon neutrality and shaping a “1+N” policy framework. Carbon peakand 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 asteady and orderly transition of the economy and society.
Green finance refers to “financial services provided for economic activities that aresupportive of environmental improvement, climate change mitigation and adaption, andresource efficiency promotion”3. With countries and enterprises all over the world setting thenet-zero goal one after another, there is growing awareness of financial services empoweringgreen development. Supporting the green transition of industries and conserving biodiversity
have become new development goals and requirements of green finance. Environmental andclimate-related information disclosure and standardized and transparent data for investment
decision making have become important groundwork for green finance.
In 2017, Industrial and Commercial Bank of China (hereinafter referred to as “theBank”) became the first Chinese financial institution to sign a statement of support for therecommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) of the
Financial Stability Board (FSB). As a founding signatory to the Principles for Responsible“
1“The Bank has played a pioneering and leading role ingreen finance by improving the green finance development
system, making coordinated efforts to promote green
and low-carbon transition, product innovation and risk
management and serving China’s dual-carbon goals.”

At the General Debate of the 75th Session of the United Nations General Assembly, President Xi Jinping said that China would scale up its Intended
Nationally Determined Contributions by adopting more vigorous policies and measures, aiming to peak carbon dioxide emissions before 2030 and achievecarbon neutrality before 2060.
2
According to the research report entitled “ The First Year of Carbon Neutrality and Green Upgrading of Financial Sector” issued by Chongyang Institutefor Financial Studies, Renmin University of China.
3
In 2016, the Guidelines on Building a Green Financial System issued by seven central authorities including PBC defined green finance.

”

Banking (PRB) of the United Nations Environment
Program Finance Initiative (UNEP FI) in 2019,
the Bank has developed a green and low-carbon
strategy, improved corporate governance, gradually
optimized the investment and financing structure
and made in-depth, productive explorations inpromoting green and low-carbon transition.

Implementing the dual-carbon goals,
tapping deeply into green financeIn 2021, the Bank thoroughly implemented thestrategic plan of the State Council on green
development and set up a leading group for carbon
peak and carbon neutrality at the Head Office level.
The Opinions on Further Strengthening Green
Finance Development and the ICBC Work Plan for
Carbon Peak and Carbon Neutrality (Trial) were
issued successively in an effort to build a systemof green finance and “carbon peak and carbon
neutrality” work.

Fostering the green philosophy, acceleratingtransition of investment and financing

The Bank took the lead in advocating andpracticing the philosophy of green credit in the
global banking sector. It formulated investment andfinancing policies for 16 sections and 50 industries,
solidly promoted classified management of green
investment and financing and realized systematic
control of climate-related and environmental risks.
As one of the world’s first financial institutions
to research environmental risk stress testing, theBank is a market leader by main metrics of green
investment and financing, such as green loans,green bond issuance, green bond underwriting andinvestment, green non-standard agency investment
and green lease financing. By the end of December
2021, the Bank ranked first among Chinese peers byoutstanding green loans, and led in the volume of
new green loans. The Bank recorded RMB2,480,621
million in green loans issued to energy conservation,
environmental protection, cleaner production, clean
energy, ecological conservation, green upgradingof infrastructure, green services and other green
industries under the CBIRC’s criteria4, representing
an increase of RMB634,902 million from the
beginning of the year. By the balance of green
loans, the top three industries were green upgradingof infrastructures, clean energy and energy
conservation and environment protection.

Contributing ICBC’s wisdoms, serving
peer exchanges

The Bank actively participated in peer exchanges
at home and abroad, providing platform for viewexchanges focusing on issues such as carbon neutrality,
climate change and social responsibility fulfillment

4

The CBIRC’s criteria for green credit covers energy conservation and environmental protection industry, clean production industry, clean energy industry, ecological and environmental
industry, green upgrading of infrastructure, green services, overseas projects under international practices or standards, green trade financing and green consumer financing.

while sharing the Bank’s wisdom and practices. On the one hand, the Bank
proactively integrated with international sustainable finance governancethrough the Green Investment Principles (GIP) for the Belt and Road, BRICS
Business Council, the United Nations Environment Program Finance Initiative(UNEP FI), the Belt and Road Bankers Roundtable (BRBR), China-Europe
Business Council (CEBC) and the Green Finance Committee of China Society
for Finance and Banking among other platforms. On the other hand, the Bank
intensified research efforts and conduct in-depth research on topics such as
low-carbon transition of commercial banks, financial support for carbon market
development, business promotion in pilot zones for green finance reform andinnovation, carbon emissions reduction support tools and ESG rating, forming
a sound mechanism for green research to serve green development.

Aligning with international standards for higher
transparency

The Bank has prepared corporate social responsibility reports each year
since 2007, and published the semi-annual ESG report for the first timein August 2021, highlighting the three elements of environment, society
and governance for high-quality disclosure of responsibility information.
Since 2018, separate reports such as the Annual Report on Green Bonds
and the Special Report on Green Finance have been prepared andpublished. Based on good green finance practices, the Bank took the leadin carrying out the UK-China Climate and Environmental Information
Disclosure Pilot program, and was the first financial institution in China tocarry out environmental information disclosure. Aligned with the TCFD
recommendations5and with reference to the
Principles for Responsible Banking(PRB)6,
this Special Report on Green Finance(TCFD)
has been prepared for the fourth consecutive
year, disclosing the Bank’s performance andachievements in serving the green transitionof the economy and society and enhancing its
own green performance. In addition, under
the guidance from regulatory authorities, theGuidelines for Environmental Information
The Bank’s 2021 Corporate Social
Disclosure by Financial Institutions prepared Responsibility (ESG) Reportby institutions led by ICBC was officiallyreleased by PBC. The document provides a basic framework for standard
environmental disclosures of Chinese financial institutions. In recent
years, the Bank has explored and practiced environmental information
disclosures with respect to improving green financial governance,
innovating green financial products, developing standards, measuring
carbon footprint and carrying out stress testing, further forming a routine
disclosure mechanism and pushing for green and low-carbon banking.

Green development is an urgent issue, and green finance is an importantmission. In the future, the Bank will continue to implement the newdevelopment philosophy, serve the new development pattern, further
improve the organizational system, policy framework and product lineof green finance, make overall planning for green finance development,
continuously improve environmental information disclosure andpersistently contribute ICBC’s wisdom and strength to across-the-board
green and low-carbon transition of the economy and society.
5

See “TCFD Recommendations Index” on Page 87.
See “PRB Index” on Pages 88-89.

6

５

Governance

The Bank has kept improving its green finance governanceframework 7 over years. It has put in place a green financepromotion system featuring overall leadership of the Board of
Directors and the Green Finance Committee, collaboration andclarification of duties among departments, active innovation
among branches and engagement of all staff.

7This chapter focuses on green finance and climate-related governance framework.

01

Governance６

Board of Directors
The Board of Directors of the Bank attaches great importance to the work on green
finance. It has formulated the strategic development plan of the Bank, pushed forward thefulfillment of the carbon peak and carbon neutrality goals within the Bank at all levels,
regularly reviewed proposals on corporate social responsibility (ESG)report, green financeimplementation report and risk management report and strengthened the supervision andmanagement of green finance and ESG matters.

Strategy Committee
It is mainly responsible
for reviewing the strategic
development plan, major
overall strategic risks
matters (such as ESG risk
and climate risk) and annual
corporate social responsibility(ESG) report and making
suggestions to the Board of
Directors.

Corporate Social
Responsibility andConsumer Protection
Committee

It is mainly responsible forhearing reports on the Bank’s
fulfillment of corporatesocial responsibilities
in environment, society,governance, targeted poverty
alleviation and corporate
culture and reporting to theBoard of Directors.

Risk Management
Committee
It is mainly responsible forreviewing and revising theBank’s risk strategy, risk
management policy, risk
appetite, the enterprise risk
management frameworkand internal control processaccording to the Bank’ss t r a t e g y, s u p e r v i s i n g
and evaluating theirimplementation and results
and making suggestions to
the Board of Directors.

During the reporting period, the Board of Directors heard the Proposal on the Annual
Review of Risk Management Framework and Appetite in the US Region and Report on
Various Risks. A qualitative statement of “Environmental, Social and Governance (ESG)and Climate Risk” was added to the statement of risk appetite, aligning with the relevant
strategic planning for US institutions and setting forth specific risk appetite requirements.

The Board of Directors and its Risk Management Committee reviewed and approved theEnterprise Risk Management Policy (Version 2021), incorporating “climate risk management”
into the enterprise risk management system.

Clarifying the definition, influencing
factors and main manifestations ofclimate risk

2021 Special Report on Green Finance （TCFD）ICBC

Clarifying the climate risk management
system and management requirements

７◎Green finance-related proposals reviewed by the Board of Directors and its special
committees during the reporting period
Date

Meeting agenda

March 25
March 26
August 26
August 27

The Audit Committee of the Board of Directors reviewed and unanimously approved the Proposal on2020 Annual Report and Its Abstract.
The Board of Directors unanimously approved the Proposal on 2020 Annual Report and Its Abstract.
The Board of Directors and its Audit Committee reviewed and approved the Proposal on 2021 Interim Report and Its Abstract by unanimous vote respectively.
The Board of Directors and the special committee were informed about the Bank’s arrangements fortackling climate change, implementation of green finance and suggestions on promoting green financedevelopment.

March 26

The Board of Directors and its Strategy Committee reviewed and unanimously approved the Proposal
on 2020 Corporate Social Responsibility (ESG) Report of ICBC. The Board of Directors and the special committee were informed about the Bank’s green finance system and mechanism and the progresson the green credit, green investment and green bonds.

April 29

The Board of Directors and its Strategy Committee reviewed and unanimously approved the Proposalon the Strategic Development Plan of ICBC for 2021-2023 and the Proposal on the Risk Management
Plan of ICBC for 2021-2023.
The Board of Directors and the special committee were informed about the Bank’s green finance development plan and the updates on green development and ecological conservation, ESG and climate
risk system development. In addition, directors proposed that the new strategic plan should strongly
support green development.

April 28
August 26
October 28

The Audit Committee of the Board of Directors heard the Report on the Implementation Results of
the Agreed-upon Procedures in the First Quarter of 2021 and the Report on the 2021 Interim Review
Results. The special committee was informed about the green credit management and focal points ofgreen finance development, among others.

August 26
August 27

The Board of Directors and its Risk Management Committee reviewed and unanimously approved
the Proposal on 2021 Interim Risk Management Report respectively. The Board of Directors and thespecial committee were informed about the development of green loans of the Bank’s and the peers.

August 26
August 27

The Board of Directors and its Social Responsibility and Consumer Protection Committee
reviewed and unanimously approved the Proposal on the Report on Green Finance Developmentof ICBC respectively.
The Board of Directors and the special committee were informed about the Bank’s governancestructure and strategic promotion system for green finance, the scale of green investment andfinancing, prevention and control of environmental and social risks, etc. In addition, directors
proposed to continuously promote green and low-carbon transition of certain industries andenterprises and pay due attention to forestalling and defusing possible risks while developing
green finance.

Note: This table is arranged according to agenda items

01

Governance８

Column Voices from Senior Management
Chen Siqing: Make green finance a new force driving the world’s green
transition and development

On January 15, 2022, Chen Siqing, Chairman of the Bank, attended the Global Asset Management
Forum Shanghai Suhewan Summit and gave a video keynote speech. Chen called for incorporating
the philosophy of green, low-carbon and sustainable development into the modern financial systemand persistently enhancing the capability to offer financial services and promote green transition.
First, the Bank will keep serving the real economy, accelerate the development of green finance andmobilize various resources towards the low-carbon circular economy. Second, the Bank will adhere
to innovation-driven development, deepen investment and financing, give play to the dual drivingrole of technology and data and expand the boundaries of green financial services. Third, the Bank
will adhere to a systematic mindset, tackle lifecycle risks and improve the ability to manage andcontrol environmental and climate risks. Fourth, the Bank will adhere to openness and cooperation,
share development achievements and strive for a green finance governance framework featuring
fairness, reasonableness and win-win cooperation. ICBC is ready to work with all stakeholders andcontribute more to green transition of the global economy.

2021 Special Report on Green Finance （TCFD）ICBC

９Column The Board of Directors Attended Lectures
on Climate Risk Management and Green
Finance
Directors present heard the lecture on Climate Risk Management of Commercial Banks given by
Liu Ruixia, member of the Task Force on Climate-Related Financial Disclosures (TCFD)of the
Financial Stability Board (FSB)and the chief expert of the Working Group on China’s Banking
Industry Support for Fulfilling Carbon Peak and Carbon Neutrality Goals, and the thematic reporton ICBC’s Green Financial System presented by Li Zhigang, General Manager of the Credit andInvestment Management Department of the Bank. They had a rich discussion on climate risk
management and green finance and put forward a series of constructive opinions and suggestions.
All directors present agreed that strengthening climate risk management and developing green
finance are not only the inherent needs of the banking sector to achieve sustainable and high-quality
development, but also the inevitable choice for state-owned large banks to implement the newdevelopment philosophy and fulfill their responsibilities.

Directors present pointed out that the following work should be done well for green
finance development:
Conducting in-depth study on thedevelopment characteristics andfinancing needs of green industries,
continuously improving theadaptability, competitiveness andinclusiveness of financial services andsupporting high-quality developmentof green industries.

Keep
serving
the real
economyStrengthening the collection
and identification of carbon
emission data, stepping up thebuilding of information systems
and developing the statistical,
monitoring, analysis andreporting systems for carbon
emission data.

Adhering to the development
path of green finance with
Chinese characteristics,
actively participating in themaking of international rules,
making China’s voice heard,
providing China’s solutions andcontributing China’s wisdoms.

Strengthening
international
cooperation

Promotinginnovative
development
Coordinating
development
and security
considerations

Following the objective market
law, finding solutions in amarket-oriented way, steadily
optimizing the mix of investment
and financing, properly
controlling the pace and intensity
and reasonably supporting
energy conservation, emission
reduction, transition andupgrading of traditional energyintensive industries.

Strengthening
information
disclosure
Conducting forward-looking
study on regulators’ andexchanges’ rules for climate
risk information disclosures,
actively responding to theconcerns of regulators andinvestors and continuously
enhancing brand value.

01

Governance１０

Board of Supervisors
The Board of Supervisors of the Bank attaches great importance to its supervision of the Board of Directors
and senior management in performing their duties and responsibilities regarding green finance and climate risk
management and promotion. It focuses on the Board of Directors’ and senior management’s performance in
implementing the national economic and financial policies and regulatory requirements, serving major national
strategies, supporting and serving the real economy and facilitating the development of inclusive finance andgreen finance, so as to ensure the Bank’s fulfillment of its political, social and economic responsibilities as alarge state-owned bank.

Senior Management
Responsible for promoting the implementation of carbon peak and carbon neutrality goals, effectively allocating
resources, coordinating efforts on green finance development across all business lines and institutions of
the Group, promoting green and low-carbon transition and continuously improving the Group’s climate risk
management.

Risk Management Committee
The decision-making body for enterprise risk management.

Green Finance Committee
The assistant decision-making body for the overall leadership and coordinated promotion of green finance by
the management. It is mainly responsible for: (a) reviewing the strategic plan and medium- and long-term or
annual objectives of green finance development of the Bank; (b) reviewing the important policies, mechanisms,
processes and work plans for implementing the green finance strategy; (c) reviewing the report on bank-wide
promotion of green finance; and (d) coordinating the green finance work of all business lines and institutionsof the Group and supervising the implementation of green finance strategy and objectives. Tier-one (or directly
managed) branches set up their green finance committees according to the Head Office’s organizational structure tocoordinate and promote the green finance work within their mandate on every front.

2021 Special Report on Green Finance （TCFD）ICBC

１１

The Bank organized four special meetings of the Green Finance Committee
during the reporting period
The committee promoted all business lines to implement the green finance work plan of the Party Committee of the
Head Office and strove to create the Bank’s new strengths in green finance through active innovation, proactive actionand enhanced coordination. The committee reported thoroughly on green finance work to the Party Committee andsubmitted for deliberation the development plan and important policies for green finance. It regularly reported to theBoard of Directors and its Social Responsibility and Consumer Protection Committee on implementation of green
finance across the Bank. The Proposal on the Report on Green Finance Development of ICBC was submitted to theBoard of Directors for review and approval.

Reviewing the 2021
industry-specificinvestment andfinancing policy, andproviding guidanceon investment andfinancing activities of
the Bank.

Summarizing theBank’s progress ongreen finance work
since the first quarterof 2021, analyzing
the situation of green
finance development
and challenges
faced and making
arrangements for key
work in the next step.

Hearing the reports frombranches in pilot zones
on their support for theconstruction of pilot
zones for green financereform and innovation. It
was noted at the meetingthat six branches andnine tier-two branchesin pilot zones madeactive explorations
and strengthened
implementation, provided
strong financial support
for promoting ecologicalconservation in the pilot
zones and sustainable
development of the local
economy and delivered
an array of good andreplicable practices.

Studying the
Guidelines of the CPC
Central Committee andthe State Council on
Deepening the Fightagainst Pollution,summarizing theBank’s progress ongreen finance since thefirst quarter of 2021,
analyzing the situationof green financedevelopment andchallenges faced andmaking arrangementsfor key work in thenext step.

January 7
First meeting

May 8
Second meeting

July 22
Third meeting

December 9
Fourth meeting

01

Governance１２Work promotion mechanism
The Bank has established a green finance promotion mechanism under the overall leadership of the Board of Directors andsenior management. Under this mechanism, the Credit and Investment Management Department acts as the lead manager,
other relevant departments are coordinators and domestic and overseas branches are implementers.

Leading Group for Carbon Peak and Carbon Neutrality
During the reporting period, in order to better serve the national goals of “carbon peak and carbon neutrality”, the Bank set up
a Leading Group for Carbon Peak and Carbon Neutrality at the Head Office level. It is responsible for fostering the green andlow-carbon philosophy among all employees, conducting business training, strengthening the resource support and incentive
mechanism and coordinating efforts to implement all plans for the “carbon peak and carbon neutrality” work.

Executive Committee of the Senior Management
The committee heard the reports on progress of green finance work, including the results of green finance work of related
business lines, the situation of green finance and challenges faced and next-step work plan.

Green Finance Committee
The committee is responsible for overall leadership and coordinated promotion of green finance work. The Credit andInvestment Management Department functions as the secretariat to facilitate effective operation of the Committee. In
addition, it coordinates and organizes

23 member departments to jointly promote green finance.

2021 Special Report on Green Finance （TCFD）ICBC

１３Regular communication
mechanism with investors

The Bank actively responded to investors’ concerns about climate change,
promoting green finance development and improving ESG performance.
It has established and improved a regular communication mechanism forgreen finance, environmental and climate-related information throughspecial meetings on green finance and one-to-one or one-to-many investor
meetings.
During the reporting period, the Bank’s management led a team to hold10 special meetings on green finance and ESG with institutional investors
home and abroad, providing global investors with a full picture of theBank’s practices and achievements in green finance, ESG and climatechange response. Investors raised more than 700 questions throughresults briefings, roadshows, special communication meetings and otherchannels, including about 100 ESG-related questions such as carbon
neutrality, green finance, ESG strategy, climate risk management and ESG
information disclosure, accounted for about 15%8.

Overall planning mechanism for green finance research
The Bank attaches great importance to and promotes the research on green finance, unleashing the potentialof research in supporting decision-making and serving business development. It has established a researchsystem in which the Modern Finance Research Institute leads research and integrates think tank resources, bankwide research resources are well coordinated and shared across the Bank. Regular research is conducted with afocus on China’s goals of “carbon peak and carbon neutrality” as well as key and hot issues on green finance tosupport and serve the Bank’s green finance development.

In-depth researchPreparing the special
report series on green
finance development

Collaborative research

Causing all business lines andbranches to conduct research
and analysis on their own green
finance practices, and spurring
positive interaction that enables
research to serve decision making

01

02

External exchanges

Sharing the research findings
on green finance throughvarious exchange events, andboosting public awarenessof the Bank’s green finance
brand

03

Promoting the specialization in green financeDuring the reporting period, the Bank promoted the specialization in green finance. Branches were encouraged to
set up bodies specializing in green finance according to their own characteristics, the exclusive services for green
finance were refined, green finance specialists were appointed and the special assessment mechanism for green
finance was improved.

8

See the Bank’s 2021 Corporate Social Responsibility (ESG) Report.

02

Strategy１４Strategy

The Bank attaches great importance to the green finance. It has identified
green finance and ecological conservation as priorities in its work plan,
explicitly set the goal of “becoming a leading bank in green development”
and endeavored to build a green finance system. Towards the carbon
peak and carbon neutrality goals, the Bank is practicing the development
philosophy that “lucid waters and lush mountains are invaluable assets”
and promoting harmonious coexistence between man and nature.

2021 Special Report on Green Finance （TCFD）ICBC

１５Strategic goal
Developing into a world-leading green bank with a good international reputation.

Business philosophy
As the pioneer and leader in green finance, the Bank stays true to the business tenet that green finance serves thereal economy.

Planning
The Board of Directors of the Bank reviewed and approved the Strategic Development Plan for 2021-2023 (the“Plan”). In pursuit of sustainable development goals set in the 2030 Agenda for Sustainable Development withrespect to poverty eradication, food security, inclusive and equitable education, modern energy, full employment,
climate change response, ecological restoration and global partnership, the Bank continued to take actions
focused on green finance, inclusive finance (rural vitalization, livelihood security) and Fintech-empowered
development in the fields of institutional banking, corporate banking, financial innovation and financial elements
to practice the philosophy of sustainable development.

Mission1

Committed to working
with stakeholders toactively address urgent
issues such as climatechange, inclusive
social development,
environment andbiodiversity protection,
privacy protection
a n d d a t a s e c u r i t y,
and to jointly
promote sustainable
development

Strategic focus

Strategic framework2

In particular, the Planfocuses on the objectives,
path and tools of thegreen finance systemdevelopment in the next
three years, refines the green
and low-carbon financial
service system for regions,products, customers
and industries to makecentralized arrangements
and aims to become aleading bank in green
development

3

Create a low-carbon,
green sustainablefinancial service systemby means of Fintech
and management offinancial elements; build
a big data platform
for environmental
risk information andcontinuously improve
ESG risk management

Strategic actions

4

Align with the UN sustainable development goals, innovate ESG green rating and index research, explore quantitativeevaluation methods and tools of green development of enterprises and establish a cutting-edge system of green finance research
Under the framework of Paris Agreement, build a big data service platform for environmental risk information,
take the initiative in strengthening ESG information disclosure and climate-related investment and financing
information disclosure, improve and align the statistical classification standards of green investment and financing
and establish a scientific, comprehensive and systematic evaluation mechanism for green financial development

02

Strategy

１６Support green life, cleaner production and ecological restoration, increase ecological and environment management in the
Yangtze River and Yellow River basins, optimize the core structure of green credit for regions, products, customers andindustries, significantly increase the proportion of green loans and cement the leading position in green finance
Vigorously develop financial instruments such as green bonds, green stock index, green development fund, green
insurance and carbon finance to realize economic transition and upgrading and sustainable development of financial services

Under the guidance of the long-term strategy approved by the Board of Directors, the Opinions on
Further Strengthening Green Finance Development was issued during the reporting period as aplanning document in the field of green finance. These opinions define the development goals, basic
principles, main areas of work and key measures of the Group for green finance in the next few years in
the context of ecological conservation, in a bid to create new strengths in green finance.

Specific
objectives

To achieve a leading size and good quality of green loans, and seek
to lead peers in total green investment and financing; set qualitative
objectives and requirements on the organizational structure forgreen finance, policies and procedures, ability to prevent and control
environment and climate-related risks in investment and financing
and participation in the formulation of green financial standards.

The investment and financing in green industries grew rapidly; green
loans ranked first by size among large commercial banks, outpacing the
average growth of total loans for many consecutive years

Innovation has sped up in investment in all products including green
bonds, wealth management and funds

Implementation
results of green
finance plan

Environmental and social risks in investment and financing prevented andcontrolled effectively

Remarkable achievements made in forward-looking research and foreign
cooperation in green finance

Progress made in green finance development

2021 Special Report on Green Finance （TCFD）ICBC

Since the guidelines were
implemented, the Bank has
pushed for green financedevelopment across theboard in terms of policies,
management processes,
business innovation and inhouse performance.

１７

Column Solid Progress in Promoting the Achievementof Carbon Peak and Carbon Neutrality
Goals
During the reporting period, the Bank systematically promoted the work on carbon peak and carbon
neutrality (“dual-carbon”)across the organization. The dual-carbon work plan was formulated to clarify
the Bank’s objectives, pathways and actions for the work. A number of practical measures were taken,
including setting up a Leading Group for Carbon Peak and Carbon Neutrality at the Head Office level,
having the Green Finance Committee to coordinate efforts, fostering the green and low-carbon philosophy
among all employees, conducting business training, strengthening the resource support and incentive
mechanism and putting the plan into action.

The Leading Group for Carbon Peak and Carbon Neutrality was set up to boost
organizational push
The Leading Group is mainly responsible for leading the Bank’s dual-carbon work in every respect andorganizing the formulation and research of the Bank’s development plan and major issues regarding thedual-carbon work.

Work Plan for Carbon Peak and Carbon Neutrality of Industrial and Commercial
Bank of China (Trial) was formulated and issued
A forward-looking plan was made for the dual-carbon work on the Group’s own operation and its asset

Positioning

Principles

Roadmap to key tasks

The Plan positions thedual-carbon work as animportant part of green
finance, requiring persistentpush for the achivement ofdual-carbon goals under theoverall framework of green
finance to drive green, lowcarbon transition of theeconomy and society
and serve the national
goals of carbon peakand carbon neutrality

The Plan sets forth fivep r i n c i p l e s , n a m e l y,scientific planning,
serving the real economy,
coordinated development,
systematic advancement
and innovation
orientation

Including establishinga carbon accounting
system, setting goals,
promoting green
transition, innovating
business development,
strengthening climate risk
management, vigorously
promoting carbon
emissions reduction andestablishing and refining
basic policies andprocedures

02

Strategy

１８sides under China’s master plan for the work. The Plan defines the objectives, principles, roadmap andmain actions for the Bank’s dual-carbon work.

Strengthening research on the pathways to carbon peak and carbon neutrality,
clarifying investment and financing strategies
Report on the Long- and Medium-term Strategy for Improvement of Investment and Financing
Structure under the Carbon Peak and Carbon Neutrality Goals was prepared and issued across the
Bank. The Report regards carbon peak and carbon neutrality as a factor that must be considered in the
research on industry investment and financing policies and selection of customers. It guides the Bank
toward stronger push for green and low-carbon industries, reasonable control over funding of carbonintensive industries and precautions against structured financing risks.

Applying a “basket-specific policy” to investment andfinancing, promoting green, low-carbon transition of
the investment and financing structure, and intensifying
innovation in green financial products and services

Supporting the national carbon market, innovating carbon finance products
The Bank issued the Guidelines for Improving the Business Layout of Financial Services for Carbon
Market, clarifying the development goal, working mechanism and specific tasks of improving financial
services for carbon market. The Bank supported the building of a national carbon trading market
system by connecting the settlement system of the National Carbon Emissions Rights Registration
Agency and formulating a system development and connectivity plan for the registration agency. The
Bank followed up on the construction of regional and provincial markets and fully assessed the risks
and monitoring measures for the cooperation centers adopting the bank-commodity transfer mode toensure adequate risk control. At present, the Bank has established a link with the settlement system ofChina Liaoning Emission Exchange.

9Hyperlink: Http://www.tj.icbc.com.cn/icbc/Tianjin Branch2021 Special Report on Green Finance （TCFD）ICBC

１９The Bank provides comprehensive financial services. It has signed strategiccooperation agreements with China Carbon Emission Registration Clearing Co., Ltd.
and Shanghai Environment and Energy Exchange (SEEE), signed the settlement
cooperation agreement with China Carbon Emission Registration Clearing Co., Ltd.,signed the memorandum of understanding on cross-border cooperation with China
Emissions Exchange (CEEX) and Shanghai Clearing House.

The Bank fully aligned its work with the development of the national carbon market
registration and settlement system, the setup of the Carbon Peak Fund and otherrelated work. It has explored financial services such as customer recommendation on
the integrated service platform of green finance, credit demand of emissions control
enterprises and support for innovation in carbon finance products according to the needsof financial market infrastructure (FMI) development.

The case study on Tianjin Branch’s lending backed by “dual pledge registration”
of carbon allowance 9 was issued, thereby encouraging branches to explore theinnovation in carbon finance products such as carbon quota-backed loans.

Facilitating the implementation of carbon-reduction supporting tools
The Notice on Making Good Use of Carbon-Reduction Supporting Tool was issued to clarify the policy
and procedures for applying for carbon-reduction supporting tools, providing branches with guidance on
increasing support for key areas of carbon emissions reduction.

02

Strategy２０Policies and Procedures

Taking a systematic approach to development, the Bank has furthered
its efforts to build the green finance framework and mechanism focusing
on the dual-carbon goals. Green financial policies and procedures havebeen introduced to fortify the foundation for green finance managementin terms of economic capital occupation, performance appraisal of green
credit, green financing statistics, dedicated quotas, supplier management
and green procurement.

2021 Special Report on Green Finance （TCFD）ICBC

２１

Promoting green rebalancing of investment and financing
With its annualy-updated policy for industry investment and financing and its quota management scheme forkey industries, the Bank supports the development of green industries, controls the financing to carbon-intensive
industries and promotes the green rebalancing of investment and financing. The capital occupation policy isdifferentiated between green industries and energy-intensive, high-emissions industries, thus incentivisingbranches to increase support for green industries.

Formulating and issuing the 2021 Industry Investment and Financing Policy
The investment and financing policy was formulated for 50 industries in 16 sections, highlighting the “green”
orientation and further enhancing policy support and control for specific industries. Differentiated management
measures were taken in terms of economic capital occupation, authorization, pricing and scale. Metrics suchas technology, environmental protection and energy efficiency of the coporate were factored in the selection ofcustomers and projects in key industries.

Vigorously supporting the development of green and low-carbon circular economy
Key areas such as clean energy, green transportation, energy conservation and environmental protection havebeen positioned as industries for active or moderate participation.

Ongoing attention to biodiversity conservation
Since 2015, the Bank has included boosting domestic biodiversity in the Group’s green credit development
strategy. Active measures have been taken to protect biodiversity and the ecological conservation red lines
have been strictly observed to prevent damage to important habitats, statutory nature reserves and ecosystem in
ecologically fragile areas and to support biodiversity-friendly customers and projects, such as nature conservationand ecological restoration. For industries with high biodiversity risks, including agriculture, forestry, animalhusbandry and fishery, mining, oil and gas extraction, infrastructure and building materials, the Bank attaches
great importance to biodiversity risk management and actively supports environment-friendly customers.

03

Policies and Procedures

２２Strictly controlling financing to energy-intensive, high-emission industries
The Notice on Strengthening Investment and Financing Management of Energy-Intensive, High-Emission
Industries was issued to strictly control the financing of new projects in energy-intensive, high-emission fields,
heighten the energy efficiency standards for eligible projects and control the investment and financing risks
in these industries in a forward-looking manner. Classified management was carried out for energy-intensive,high-emission industries under a differentiating policy. The Notice on Implementing the Management of Total
Investment and Financing for Selected Key Carbon-intensive Fields was issued to strengthen risk prevention
and control in carbon-intensive fields and effectively promote green rebalancing of investment and financing.

Mining

The mining industry mainly includes mining and beneficiation of metallic ores such as iron, copperand aluminum, as well as non-metallic ores. The Bank paid close attention to the environmental
and social risks of investment and financing of domestic mines, strictly observed the relevant
provisions on environmental protection and biodiversity, met the requirements for pollution andwaste treatment methods, impact on endangered species and greenhouse gas emission regulations,actively supported the green transformation, environmental protection and governance of mining
enterprises, and supported their large-scale and intensive mining, resource conservation andcomprehensive recycling and utilization.

The energy industry mainly includes power production, power supply, coal, oil and gas and otherindustries. The Bank paid close attention to the environmental and social risks of investment andfinancing in the domestic energy industry, actively supported the development of clean energy, suchas wind power and photovoltaic power generation, and the clean transformation of traditionalenergy, orderly reduced the proportion of financing for coal-fired power generation and coal mining, andpushed forward the technical progress and cost reduction of the domestic clean energy industry chain.

Oil and gas

The oil and gas industry mainly includes such industries as oil and gas extraction, oil refining,
oil and gas transmission and other industries. The Bank paid close attention to the environmental
and social risks of investment and financing in the domestic oil and gas field, strictly observed theenvironmental protection regulations on pollution and waste treatment methods and greenhouse gas
emissions, mainly supported clean fuel production, large-scale advanced refinery-petrochemical
integration projects and the building and operation of natural gas transmission, storage,transportation and peak shaving facilities, and strictly controlled the financing of and investmentin the enterprises which purely specialize in refined oil products with high environmental
protection risk, and have no space for transformation and upgrading of energy conservation andenvironmental protection.

The transportation industry, including highway, railway, civil aviation, port, shipping andairport, plays an important role in economic development and the people’s livelihood. The
Bank actively supported the green development of the domestic transportation industry inthe direction of scientific layout, and clean, low-carbon, intensive and efficient development,
including supporting the building of railway, highway and airport projects with ecological andenvironment-friendly siting, railway electrification transformation, port resource integration,
large professional berth construction and high-grade waterway transformation, and meeting thefinancing needs of pilot enterprises in green shipping development.

Agriculture(including forestry)

EnergyTransportation

Agriculture, including planting, forestry, animal husbandry and fishery, is the basis of humansurvival and development. The Bank has recognized that the development of ecological agriculture
is an inevitable trend for the long-term survival of human society. Therefore, the Bank actively
supported the green development of domestic agriculture, including forest cultivation, ecologicalcircular agriculture, ecological aquaculture, comprehensive utilization of straw residue, productionof organic agricultural products and application of green agricultural technology.
Forestry mainly includes such fields as tree breeding and seedling raising, afforestation andregeneration, forest management, and timber harvesting and transportation. The Bank actively supported
the protection, cultivation and rational utilization of domestic forest resources, maintained biodiversity,
explored risk mitigation measures through collective forest rights, forest land operation income rights,
public welfare forest (natural forest) compensation income rights and other measures, and supported theconstruction of national reserve forest, carbon sink forest and other forest land projects.

2021 Special Report on Green Finance （TCFD）ICBC

２３

Green classification management of investment and financing for
institutions
In order to adapt to the changes in policy environment and effectively control the environmental risks ofenterprises, the Bank issued the Measures for Green Classification Management of Investment and Financing
for Corporate Customers in Chinese Mainland (Version 2021) during the reporting period.

Greenclassification
management

Revising the four-level and twelve-category green classification
standards, and strengthening the climate risk factors
Downgrading some carbon-intensive industries andenterprises under the new standards for green classification
Expanding the scope of green classification from credit toinvestment and financing for the first time; based on green
classification of loans, promoting the green classification managementof bonds, leasing and non-standard wealth management

The Bank issued the Notice on Trial Implementation of Green Classification Management of Investment
and Financing by Overseas Institutions, requiring overseas institutions to implement green classification
management of all investment and financing within the scope permitted by laws, regulations and supervisory
rules of the host country (region).

Strengthening statistical management of green financing
The Notice on Strengthening the Management of Green Financial Statistical Identifiers of Green Finance wasissued to strengthen the management of statistical identifiers for green investment and financing and effectively
boost the accuracy, timeliness and automation level of green investment and financing statistics.

Improving supporting policies and tools for green financeRefining theassessment
mechanism andstrengthening green
credit assessment

Green credit was included in the corporate social responsibility
section of branch’s performance assessment metrics. The branchassessment focuses the percentage share of outstanding green
loans, growth rate of green loans and compliance with green
credit policy.

Strengthening
credit policy
differentiation andeconomic capitaladjustment

The leading green industries, including railways, urban utilities,
urban rail transit and hydropower, have all been positioned asindustries for active participation eligible for lowered economic
capital charge coefficient, matched authorization and other
differentiated credit policies.

Developing theannual green lending
plan and making
FTP concessions

Allocating special quota for green loans, and prioritizing
the availability of credit sources to green industries. The
funds transfer pricing (FTP)incentive was introduced forgreen loans.

03

Policies and Procedures

２４

Risk Management

The Bank has incorporated climate risk management in its enterpriserisk management system. Climate risk management appears as aseparate section in the Enterprise Risk Management Policy (Version2021), making clear relevant duties and management requirements. The
Bank has created a climate risk management framework, cemented
the foundation of climate risk management, established a climate risk
database, strengthened the identification and management of climate
risks and conducted climate risk stress testing.

2021 Special Report on Green Finance （TCFD）ICBC

２５Climate risk management
Incorporating climate
risk in the Group’s
strategy and appetite
management

Clarifying the definition
and main forms ofclimate risk

Building a climate
risk management
system01

02

03

Establishing a climate risk
management system andclarifying the management
requirements with respect
to climate risk governanceframework, appetiteand limits, policies andprocedures, monitoring
and reporting, assessmentand evaluation, data andsystems, etc.

Firstline ofdefenseFortifying the threelines of defense
for climate risk
management

05

04
Establishing amechanism for climate
risk identification,a s s e s s m e n t ,measurement,
monitoring, control
and reporting;strengthening thecarbon emission dataand systems.

As the first line of defense against climate risk, businessdepartments are the risk takers and managers responsible for
implementing the green finance eligibility criteria and properly
managing climate risk-related business activities.

Secondline ofdefenseThirdline ofdefenseAccelerating in-houseemissions reduction,enhancing international
exchanges and cooperation,building a climate-friendly
bank and improving theability to manage climate
risks

As the second line of defense against climate risk, theRisk Management Department shall formulate the policy,
standards and requirements for climate risk management
and provide the first line of defense with climate risk
management methods, tools, processes, training andguidance. It is also responsible for independently
monitoring, evaluating and reporting the Group-wide andbusiness line-specific climate risk profile and developments,
exercising the veto right for green finance deals andassessing the effectiveness and appropriateness of climate
risk management

As the third line of defense against climate risk, the internal
audit department is responsible for auditing the implementationof climate risk management, the green finance performance of
the Group and the effectiveness of green finance management
and processes, so as to persistently improve green financemanagement across the Group.

Climate risk identification and assessment
The Bank identifies and evaluates climate risks by analyzing climate factors that affect traditional risks.

04

Risk Management

２６

Main forms of physical risks and transition risksLess-than-expected
funds available to
the BankSpecifically, credit risk
caused by debtor ’s
weaker solvency andcollateral damage ordevaluation

Credit risk

Market risk

Lower or volatile
market value ofthe Bank’s assets
due to climatechangeOperational
操作风险
risk

Asset holdings unsuitable
for social transition tosustainable development
or unable to meet market
or consumer needs

Liquidity risk Operational risk Reputationalrisk
caused by the Bank’sbusiness interruption
or non-adaptation tochanges in laws andregulations◎ Identifying climate risk factors from the Bank’s traditional risk types
ImpactRisk type
ImpactClimate risk factors
duration• Climate change results in weaker
The risk that loss is caused to banking profitability or asset depreciation ofMedium and longu s i n e s s w h e n t h e b o r r o w e r o r the debtor
Credit risk bcounterparty
terms
fails to meet its contractual • Failure to adapt to the changes inpolicies, regulations and technologies
obligations.
has a negative impact on the obligor
The risk of loss to the Bank’s on- and offbalance sheet activities caused by adverse
depreciation due to climate
Medium and long
Market risk movements in market rates (including • Assetterms
interest rates, exchange rates, and stock change
price and commodity prices).
The risk that the Bank is unable to raise
funds on a timely basis or at a reasonable • Extreme weatherevents lead toMedium and longto settle liabilities as they fall due, customers’ credit overdraft or lessLiquidity risk cost
terms
perform other payment obligations and than-expected funds available to thesatisfy other funding demands of normal Bank
business development.
• Disruption of business activity andchain caused by extreme
T h e r i s k o f l o s s r e s u l t i n g f r o m supply
events and damaged
insufficient or problematic internal weather
Operational processes, employees and IT systems • facilities
Medium term
Carbon emission reduction measures
or from external events, including add
risk
to operating costs and capital
legal risk, but excluding strategic and expenditures
reputational risk.
• Failure to adapt to the changes inpolicies, regulations and technologies
The Bank’s behavior, its employees’
behavior or external events lead to • Negative impact caused bye g a t i v e o p i n i o n s o n t h e B a n k o f insufficient support for customers hit Short, medium and
Reputational nstakeholders,the public and the media, by extreme weather
long terms
risk
thus damaging the brand value, adversely • Reputational damage due to exposure
affecting the normal operation and even to carbon-intensive industries
affecting market and social stability.

10
According to the “green” level of investment and financing, that is, the environmental impact of investment and financing and the environmental and social risks they face, the investment
and financing for domestic corporate customers are divided into four grades and twelve categories. The four grades are Friendly, Qualified, Observation and Remediation; the twelve
categories are Friendly I, II, III and IV, Qualified I and II, Observation I and II, and Remediation I, II, III and IV.

2021 Special Report on Green Finance （TCFD）ICBC

２７Strengthening systematic control of environmental and social risks
In order to adapt to the changes in policy environment and effectively control the environmental risks ofenterprises, the Bank revised the four-level, twelve-category 10 green classification standards to strengthen
climate risk factors and downgrade some high-carbon industries and enterprises. Since 2021, basedon green classification of loans, the Bank has promoted the green classification management of bonds,
leasing and non-standard wealth management. The Notice on Strengthening the System Managementof Customer Environmental Risks was issued. By cooperating with third-party environmental data
providers and making full use of multi-dimensional big data on corporate environmental risks, the Bank has
added environmental information query control elements to the system, thus allowing real-time access toenvironmental information on enterprise and giving automatic risk alerts.

Issuing the Notice on Strengthening the System
Management of Customer Environmental Risks

Adding environmental information
query control elements

Automatic risk alerts

Conducting special audit on green credit
By combining off-site risk analysis with remote audit, the Bank focused on theimplementation effect of green credit strategy, the effectiveness of green credit systemconstruction and the compliance of process management, and carefully audited theimplementation of green credit policy, business management and major risks ofrelevant branches. This year’s green credit audit has achieved good results, which has
played a positive role in promoting the compliance management level of the Bank’s
green credit business.

From July to August, 2021, the Internal
Audit Bureau conducted the annual
dedicated audit on green credit overfour tier-one branches in Chongqing,
Guizhou, Guangxi and Tibet.

97customers with RMB10,640
million of green credit were selected
as audit samples.

Conducting environmental and climate risk stress tests
The Bank’s stress testing research in recent years has made positive contributions to the research on quantificationand transmission mechanism of environmental risks of commercial banks in China. At present, the stress testing
research on environmental risks has covered three major areas: policy, disaster and price. During the reporting
period, the Bank studied the world’s cutting-edge methods for climate risk stress testing and established thetransmission path of transition risk and physical risk based on the global stress scenarios provided by NGFS11,
shaping an impact mechanism of climate risks on key industries and regions.

11

The Network of Central Banks and Supervisors for Greening the Financial System (NGFS)was created in 2017 by eight central banks. PBC is a founding member of NGFS.

04

Risk Management

２８

Enriching stress test scenarios
The stress test scenarios provided
by the comprehensive evaluation
model include orderly transition,
disorderly transition and greenhouseworld

Conducting dedicated stresstests on key industries

Special stress test methods were
designed for selected key industries,
including thermal power, steel,transportation, coal and oil and naturalgas. This approach enables accurate
depiction of the law of industry
development, makes the stress testingmodel more specific to industry andensures orderly climate risk stresstesting under regulatory guidance12

Improving the transmission
mechanism of transition risk

Establishing a transmission pathfrom climate risk scenarios tocustomer’s business elements, andthen predicting customer’s financial
results and analyzing their ratingchanges

Adding physical risk stresstesting

Based on global warming scenarios,
the forecast data of trusted
organizations are selected to analyze
the losses caused by physical risks
according to the geographicaldistribution of the Bank’s assets andcollateral

Column I CBC (Asia)’s Dedicated Stress Test on
Climate Risk
In June 2021, according to relevant guidelines of the Hong Kong Monetary Authority (HKMA), ICBC
(Asia)successfully completed the dedicated stress test on climate risk. It used the risk quantification
method for the first time to measure the financial loss and the impact on profit and capital adequacy ofthe bank when physical risk and transition risk are transmitted to the bank’s credit risk, market risk andoperational risk under the climate risk scenarios defined by the Intergovernmental Panel on Climate
Change (IPCC) and the Hong Kong Observatory. ICBC (Asia) is the one of the first in Hong Kongbanking industry to submit climate risk stress test results, and the first institution of ICBC Group tocomplete climate risk stress test. In September 2021, with reference to the climate risk stress testing
methodology of ICBC (Asia), Hong Kong Branch also completed the climate risk stress test on timeand submitted results to HKMA. This successful test has laid a solid foundation for subsequent climate
risk identification, measurement, monitoring, reporting and mitigation management.

12
See Liu Guiping: Improve Management of Climate-Related Risks by the Financial System, by Liu Guiping, Deputy Governor, the People’s Bank of China, published on China Finance,
Vol. 05, 2022.

2021 Special Report on Green Finance （TCFD）ICBC

２９Green Investment and Financing(Metrics and Targets)

The Bank has developed focal points of “green” business in line with China’s
economic and financial conditions, strategic plans and new development
needs. It provides green industries with diverse, multi-level comprehensive
financial services through financial advisory service, bond underwriting,project loan, leasing + factoring, wealth management, investment andindustrial funds. Financial services are effectively integrated with ecologicalconservation and environmental protection in a broader and deeper manner.

05

Green Investment and Financing (Metrics and Targets)

３０Green credit
By the end of the reporting period, the Bank ranked first among Chinese
peers in outstanding green loans and lead in the size of new green loans

The Bank recorded

2 , 4 8 0 , 6 2 1 An increase of
RMB634,902 million
By the balance of green loans, the top
over the beginning of the year

RMB
million in green loans issued toenergy conservation, environmental
protection, cleaner production, clean
energy, ecological conservation, green
upgrading of infrastructure, green
services and other green industries
under the latest CBIRC criteria13.

three industries were:Green upgrade of infrastructure,clean energy,
energy conservation andenvironmental protection

Steady drop in the proportion of loans to energy-intensive, high-emission
industries
During the reporting period, the Bank supported the national energy supply security and low-carbon transition
strategy. Among the clean energy loans of the Bank, outstanding loans to wind energy and photovoltaic solar

36

energy industries accounted for% of total loans for the power industry, higher than the proportion of windenergy and photovoltaic energy in China’s power mix over the same period. The proportion of loans to energyintensive, high-emission industries decreased steadily.

More lending for transition and upgrading fields such as new energy,
resource recycling and advanced manufacturing
Financing support was focused on small and micro enterprises (SMEs) in green and low-carbon industries.
Innovative financing products were developed to meet emerging financing needs of low-carbon transition of
SME customers. The “digital inclusive” development route was followed to speed up the digital transition of
traditional SME credit products, gradually guiding SMEs’ business activity towards a digital and low-carbon
future. Innovative financial instruments such as digital credit certificates were used to increase the funding forindustrial chains of SMEs such as clean energy, pollution control and resource recycling.

13

The CBIRC’s criteria for green credit covers energy conservation and environmental protection industry, clean production industry, clean energy industry, ecological and environmental
industry, green upgrading of infrastructure, green services, overseas projects under international practices or standards, green trade financing and green consumer financing.

2021 Special Report on Green Finance （TCFD）ICBC

３１◎

Emission reduction of green credit projects

Item
Emission reduction of standard
coal equivalent
Emission reduction of carbon
dioxide equivalent

Unit

2021

2020

2019

10,000t

4,738.13

4,924.74

4,627.23

10,000t

COD emission reduction

10,000t

Ammonia nitrogen reduction

10,000t

Emission reduction of sulfur
dioxideEmission reduction of nitrogenoxidesWater saved

9,884.69

8,524.63

8,985.96

7.26

31.10

4.91

28.38

1,817.13

10,000t

1,539.46

10,000t

7,521.52

10,000t281.71

2,189.30

1,424.62
8,931.02

26.85
3.94
3.34

5,903.64

Green bond
The Bank actively implements the national green development philosophy and sustainable development strategy, andcontinued to improve its financial service capacity in support of the dual-carbon goals.
At the end of the reporting period, theIssuance of green bonds
Overseas: During the reporting period, the Bank optimized
the green bond framework formulated in 2017 in line withthe latest industry standards and guidelines, certified forforeign and domestic standards by Sustainalytics and Beijing
Zhongcai Green Financing Consultant Ltd. respectively.

sixof USD13.06 billion, and won
11 international awards in total

Bank issued
overseas green
bonds with an accumulative amountUnder this framework, the Bank issued global multi-currency overseas “carbon neutrality” green bonds on
October 21, 2021 through five branches in Hong Kong, Singapore, Macau, Luxembourg and London, and listed
the bond on the stock exchanges in Hong Kong, Singapore, Luxembourg, London and Macau.

●●●

3.23billion marking the biggest international green issue of

The total issue size was equivalent to USD
Chinese issuers.

Five bonds denominated in four currencies, namely, USD, EUR, MOP and GBP.

This bond obtained green certifications from three authoritative organizations at home and abroad, including

the “carbon neutrality” labeling certification evaluation report issued by Beijing Zhongcai Green Financing
Consultant Ltd., the green financial bond certification issued by the Climate Bonds Initiative (CBI), and thepre-issuance green and sustainable financial certificate issued by the Hong Kong Quality Assurance Agency(HKQAA).
● The use of proceeds is focused on low-carbon fields, and earmarked for green projects with significant carbon
emissions reduction effect, such as clean transportation and renewable energy.

05

Green Investment and Financing (Metrics and Targets)３２

During the reporting period, 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.

It also won the award of Banks Quasi-Sov Best Green
Bond from The Asset in Hong Kong.

Domestic: In September 2021, the Bank successfully issued the inaugural domestic green finance bond of
RMB
billion at a coupon rate of%, the lowest coupon rate of commercial banks’ financial bondsin the year. It also came as the first green financial bond issued in the domestic market by a national commercialbank since China made its commitment to carbon peak and carbon neutrality in September 2020. This bond has
been certified as labeled green bond by the Climate Bonds Initiative (CBI). All its proceeds have been invested
in clean energy and green transportation, receiving wide attention and active subscription from the market.
Successful subscribers covered a variety of investors such as banks, insurers, funds, securities firms and foreign
institutions. In addition, the Bank leveraged on its advantages in product innovation to support the green financedevelopment and issued the first green auto ABS among commercial banks in China.

10

2.80

Case: The first green auto ABS among commercial banks in China
During the reporting period, under the guidance from PBC and
CBIRC, “Gongyuan Zhiyuan 2021 Green Auto ABS Series 1”
initiated by ICBC was successfully issued in the interbank bondmarket. ICBC cooperated with Beijing Local Financial Supervision
and Administration in preparation for the issue. This project marked
the first green auto ABS issued by a national commercial bank in
China. The bond attracted cross-border investment through the Bond
Connect scheme, giving further impetus to the financial cooperation
between domestic and foreign institutions and to the two-way
opening of China’s green bond market. It marked the official
implementation of the “standardizing and exploring cross-border
ABS based on green credit ” task under the “two zones” policy.
In this project, the underlying assets are all personal installment
loans for new energy vehicles (NEV) issued by the Bank and meetthe green project criteria, and all issue proceeds are earmarked for
new NEV loans. This ABS product is green in both underlying assets
and use of proceeds, receiving a G2 green rating from China Credit

132

Rating, a green certification agency. With an issue size of RMB
million, the project was offered
simultaneously to domestic and foreign investors on September 9 through the Bond Connect scheme. On
the issue date, the bond was much sought after among domestic and foreign banks, funds and securities

2.95

60

firms. Its senior tranche was issued at a coupon rate of%. Of total successful subscription,%
came from foreign investors, making domestic green credit ABS products further recognized amonginternational investors.

2021 Special Report on Green Finance （TCFD）ICBC

３３

Green bond investment
The Bank has thoroughly implemented the decisions and arrangements of the State Council for ecologicalconservation, climate change response and the building of a green financial system. 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.

Green bond underwriting
During the reporting period,
the Bank, as a lead underwriterunderwrote

With the lead underwriting
amounting to RMB

million67 green bonds That raised A63,637
year-on-year increase of
RMB140,130 million
12.44 times
in totalAmong them, there were24

carbon neutral bonds
With a lead underwriting amount of

24,909 million
Ranking first among
RMB

Chinese peers.

During the reporting period, the Bank, as a lead underwriter, underwrote the first carbon neutrality bond in
the market - RMB500 million’s worth of green medium-term notes (carbon neutrality bond) of an airport
in some province, and the funds raised were used for the airport’s green building project. According to theassessment of a third-party specialized agency, the project can reduce the emissions of carbon dioxide,
sulfur dioxide, nitrogen oxides and smoke and dust by
tons,
tons,
tons
and
tons respectively every year.

19,700

1.08

5.32

5.55

During the reporting period, the Bank, as a lead underwriter, underwrote the first batch of sustainability-linked
bonds in the market.

Green bond trading
The Bank actively performed its duty of bilateral quotation in the inter-bank bond market in an effort to steadilystrengthen the capacity and quality of market making and quotation for green bonds, leading the market by either
number or quality of quoted bonds.
Through the over-the-counter (OTC) distribution channel, the Bank successfully distributed China Development Bank
(CDB)’s green bonds themed by “Carbon Neutrality” and “Yellow River Basin Ecological Conservation andHigh-quality Development” and the Agricultural Development Bank of China (ADBC)’s first carbon neutralitybond for forest sink in China. The Bank ranked first among peers by distribution size of the “Yellow River Basin
Ecological Conservation and High-quality Development” green financial bond. Through extensive publicity tocustomers, the Bank effectively fostered the public awareness of responsible investment.
Leveraging on its overseas network and cross-border collaboration, the Bank guided foreign institutional
investors to invest in CDB’s green financial bonds themed by carbon neutrality and low-carbon transportation
through the CIBM Direct and Bond Connect channels, making positive contributions to high-level opening-up of
the green bond market.

05

Green Investment and Financing (Metrics and Targets)３４

Case: Guangdong Branch took the lead in underwriting the first carbon
market performance-linked bond in China
On October 15, 2021, the Medium-Term Note (Sustainability-Linked) 2021 Series 1 of some company
underwritten by Guangdong Branch was successfully issued, with a total amount of RMB300 million
and a tenor of 3 years. The MTN came as the first bond linked to the carbon market performancein China, and the first ever sustainability-linked bond in Guangdong Province.
The sustainability-linked bond was an innovative debt financing instrument that emerged under
the Central Government’s decision to peak carbon emissions and achieve carbon neutrality. It was
launched by National Association of Financial Market Institutional Investors (NAFMII) in April
2021. In the design of bond structure, the bond clauses and coupon rate were contingent upon theemissions reduction target or performance of the issuer. This design not only broadens the issuer’s
financing channels and meets the capital needs of traditional industry transition, new energy
enterprises or enterprises in other industries, but also encourages the issuer to pursue sustainable
development in a planned and targeted way.
For the MTN, the issuer linked the coupon rate with two sustainability performance targets,
namely, “carbon market performance” and “reduction in average coal consumption per unitof thermal power generation” and made a commitment to the market from the perspectivesof “compliance” and “carbon emissions reduction”, manifesting the issuer’s responsibility anddetermination to support the achievement of dual-carbon goals. In addition, a professional thirdparty green finance evaluation and certification agency uses the blockchain among other cutting-edge
technologies to efficiently manage the sustainability performance targets of bonds, ensuring that thegreen evaluation results are professional, accurate, immutable and traceable.

2021 Special Report on Green Finance （TCFD）ICBC

３５

Case: Underwriting China’s first “green + vitalization of old revolutionary
base areas + rural vitalization” bond as lead underwriter
On September 2, 2021, the “Green Medium-Term Note 2021 Series 2” of some company underwrittenby the Bank as the lead underwriter was successfully issued in the interbank bond market. The
underlying project of the bond is a green animal husbandry project covered by the Catalogue of Green
Bond-Endorsed Projects (Version 2021). It is China’s first green bond labeled with “vitalization ofold revolutionary base areas”, “rural vitalization” and “green agriculture”. It is also one of thefirst debt financing instruments for vitalization of old revolutionary base areas in China. All theproceeds from this bond will be used for an energy-efficient, environment-friendly model pig farmproject with standard operation and intelligent management. The project will link the achievements inpoverty alleviation with rural vitalization, vitalization of old revolutionary base areas and green
finance, laying a solid foundation for high-quality, sustainable development of old revolutionary baseareas and rural areas on the economic and environmental fronts.

The bond recorded an issue sizeof RMB
Tenor of

600
5
3.37
millionyears

Coupon rate of%

Expected to create more than

2,500

Helping overfarmers increase theirincome

3,600

jobs

Case: Shanghai Branch underwrote a carbon-neutrality asset-backed
commercial paper of a financial leasing company: one of the firstnationwide and first of its kind in Shanghai
The underlying assets of the project all came from green, low-carbon clean energy projects with asignificant reduction in carbon dioxide emissions when compared with equivalent on-grid energy using
thermal power generators. As an excellent case, the project earned the Bank the Innovative Bank of theYear by cls.cn in its “Green Carbon Pioneers” Awards.

910

In addition, Shanghai Branch underwrote an RMB
million green auto loan
ABS of a conglomerate’s finance company, the first of its kind in China, giving an
impetus to development of new energy vehicle industry.

05

Green Investment and Financing (Metrics and Targets)３６

Case: Shenzhen Branch underwrote
China’s first green panda MTN
themed by carbon neutrality andrural vitalization
Under the guidance of the Head Office andShenzhen Branch, Xinian Sub-branch ofShenzhen Branch efficiently underwrote the“China Everbright Greentech Limited MediumTerm Note 2021 Series 1 (Bond Connect/
Carbon Neutrality Bond/Rural Vitalization)in collaboration with Everbright Securities.
This bond was China’s first green panda
MTN themed by carbon neutrality andrural vitalization, and the first dual-label
green panda bond underwritten by the Bank.
The bond had an issue size of RMB1 billion, atenor of 3+2 years, coupon rate of 3.50% andoversubscription ratio of 2.25x. Customers
highly recognized the issuance process andunderwriting results.

Case: Sichuan Branch issued the first green bond in western China incooperation with ICBC International
Giving full play to ICBC Group’s strengths in “commercial banking + investment banking” integration,
Sichuan Branch, as a joint underwriter, joined hands with ICBC International, a wholly-owned overseas
investment bank of the Bank, to participate in the issuance of the first overseas green senior USD
bond in western China. With a tenor of 5 years and an issue size of USD300 million, the green bondhelps Sichuan Province achieve the goals of carbon peak and carbon neutrality and drive economic andsocial development to a green future.

2021 Special Report on Green Finance （TCFD）ICBC

３７

ColumnGreen Fund, Green Wealth Management,
Green Investment and Green Leasing

During the reporting period, the Bank leveraged on the Group’s strengths to support the goals of “carbon
peak and carbon neutrality”. All entities of the Group worked together to innovate services and products
regarding green fund, green wealth management, green investment and green leasing.

Green fundFarsighted push for green development funds, fully recognized across the market
ICBC Credit Suisse, a controlled subsidiary of the Bank, has integrated social responsibility into its
service and product innovation. It keeps targeting investments at sustainability and greenness in a pushfor green development products. ICBC Credit Suisse has successfully issued a number of equity funds
themed by green development, including ICBCCS New Materials and New Energy Fund, ICBCCS
Ecological and Environmental Industry Fund and ICBCCS New Energy Vehicle Fund. It also successfully
issued the ICBC Credit Suisse CSI 180 ESG ETF in June 2021.
At UNCTAD’s Seventh World Investment Forum, ICBCCS
Ecological and Environmental Industry Fund was nominatedas one of the top ten sustainability funds for emerging
markets. It was the only bank-run fund company shortlisted
in the top ten nomination for this award.
At the 17th Golden Funds sponsored by Shanghai Securities
News, ICBC Credit Suisse won the “Socially Responsible
Investment Fund Management Company Award for 2020”.

The size of Green fund products continued to expand, creating stable returns for investors
ICBC Credit Suisse attaches great importance to the research and development of sustainability themed
products, boasting a wide spectrum of green funds. By the end of the reporting period, the size of
ICBCCS New Materials and New Energy Fund, ICBCCS Ecological and Environmental Industry Fundbillion, RMB
billion andand ICBCCS New Energy Vehicle Fund had expanded to RMB
RMB
billion, respectively. The three funds have performed well, with an annualized returnof 9.6%, 17.0% and 55.1% respectively since their inception. Their excess return compared to CSI 300
Index was%,% and% respectively, creating long-term stable returns for investors.

2.37

12.59

9.4 17.2

5.79

49.2

Case: Participating in the National Green Development Fund
During the reporting period, the Bank pursued and promoted green development, vigorously supported
sustainable investment, and efficiently completed the approval and capital contribution of the national

88.5

green development fund. With a total amount of RMB
billion, the fund was mainly invested
in such fields as pollution control, ecological restoration and land greening, energy and resource
conservation and utilization, green transportation and clean energy.

05

Green Investment and Financing (Metrics and Targets)

３８Green wealth management
During the reporting period, ICBC Wealth Management, a wholly-owned subsidiary of the Bank, actively
promoted the innovation of green financial products and explored investment opportunities in the carbon
trading market. ICBC Wealth Management stuck to the basic concept of responsible investment andsustainable development, gave full play to the advantages of direct investment and expansion of wealthmanagement funds, continued to increase the investment in green finance, constantly enriched green financial
products and service models, vigorously supported the investment and financing needs of green financerelated sectors, industries and enterprises, and channeled more funds to the green development, and developed
a “green solutions” with the characteristics of ICBC Wealth Management.
As at the end of the reporting period, ICBC Wealth Management invested nearly RMB630 billion invarious green assets through bonds, equity, non-standard assets and other means, covering many green
finance-related sub-industries and segments, such as wind power generation, photovoltaic equipment,
new energy batteries, green transportation, low-carbon transformation, ecological environmental
protection, agriculture, forestry and water conservancy, and well-facilitated farmland construction.

Case: Creating Hengrui series of green
finance products
The Bank’s Private Banking Department strengthened collaboration
with ICBC Wealth Management and created Hengrui series ofgreen finance products during the reporting period, in a bid tochannel more investments into green and low-carbon development
fields and promote green and high-quality development. This
product series came as ICBC Wealth Management’s first WM
product focused on green and low-carbon business issued
under the New Regulations on Wealth Management, andthe first product themed by green finance in the industry,
demonstrating the Bank’s determination to implement low-carbon
transition and green finance investment. The product adopted the“fixed income plus” strategy. The fixed income side gives priority
to investing in high-quality domestic green bonds. The equity
side cooperates with the top fund companies and gives priority toinvesting in best-performing public funds or ETFs themed by newenergy, environmental protection and low carbon, with a focus on
the dual-carbon goals and a series of guidelines and policies issued
by the state. Portfolios are managed with quantitative strategy.
While helping customers seize the long-term opportunities ingreen investment, these products also meet the high-level demandof the Bank’s private banking customers for environmental
protection, sustainable development and social contribution,
help private banking customers serve China’s major strategies
including rural vitalization and common prosperity and carryforward the entrepreneurship in China today.

“Fixedincome plus”
strategy2021 Special Report on Green Finance （TCFD）ICBC

３９Green investment
During the reporting period, ICBC Investment, awholly-owned subsidiary of the Bank, engaged
in and served China’s dual-carbon goals. It fully
leveraged its advantage of debt-for-equity license to
conduct headquarters-to-headquarters cooperationof central government-owned enterprises and set up
fund of fund, increased investments in green finance,
and focused on providing support for a number ofenterprises in such green sectors as photovoltaic
power, wind power and hydropower, so as tofacilitate green and low-carbon development.

As at the end of
the reporting
periodOutstanding
investment
in new energy
industry chain was
RMB30 billion

An increase of
RMB12 billion
over 2020

Green leasing
ICBC Leasing, a wholly-owned subsidiary of the Bank, seized the development opportunity of green
finance, and gave full play to the product attribute advantages of leasing business to specially strengthen the
support for clean energy, green public transportation, green shipping, energy conservation and environmental
protection and other green industries, in tune with the development trend of “carbon peak and carbon
neutrality”. It optimized business structure, gave full play to the bank-company linkage mechanism, andcomprehensively utilized the “leasing + loan” model to support the diversified financing needs of enterprises.

As at the end of the reporting period, ICBC Leasing recorded

Greenleasing

41.8 billion in green leasing (under the CBIRC’s criteria),
accounting for about 40% of domestic financial leasing.
RMB

600

Green
bonds

Management
mechanisms

In 2019, ICBC Leasing successfully issued a USD
millionfive-year overseas green bond, the first green bond issued by aChinese leasing company in the international capital market. During

750

the reporting period, the company issued a USD
million fiveyear overseas green bond, the first overseas green climate bondissued by a Chinese leasing company.
Since 2021, the Bank has formulated the Administrative Measuresfor Green Classification of Leasing Business for Domestic
Corporate Customers and put the supporting system functions into
operation. It has realized online management of green classification,
optimized the risk pricing and assessment process, linked thegreenness of businesses (customers) with pricing and assessment andconstantly improved the system of green leasing management.

05

Green Investment and Financing (Metrics and Targets)４０

Column Research, Development, Update andMaintenance of Green Indices
Belt and Road Green Finance (Investment) Index
The index was jointly developed by the Bank and Oxford Economics. In 2019, the index was pre-released
at the Second Belt and Road Bankers Roundtable and included in the list of deliverables of the Second Beltand Road Forum for International Cooperation. In 2020, the index was released at the annual conference of
the Green Finance Committee (GFC) of China Society for Finance and Banking. In November 2021, the Beltand Road Green Finance (Investment) Index Research (2021) was released at the fourth China International
Import Expo (CIIE). The index provides a set of evaluation methodologies. It helps scientifically andsystematically measure the green level of the economy and finance in countries along the Belt and Road,
helps investors find more green investment opportunities and helps stay away from environmental risks, thus
boosting the investment willingness and efficiency along the Belt and Road.

ChinaBond-ICBC Green Bond Index
The index was jointly issued by the Bank and China Central Depository & Clearing Co., Ltd. (CCDC) in Beijing
on September 10, 2021, and listed and displayed in Chongwa (Macao) Financial Asset Exchange Co., Ltd. (MOX)and Luxembourg Stock Exchange (LGX) in October 2021. The index is the first interbank green bond index in theindustry based on the latest market standards. It can be tracked and replicated. The index covers the main green
products in the interbank market, including green enterprise bonds, green financial bonds and green debt financing
instruments. Financed projects have remarkable environmental benefits. The index provides a convenient channel
and reference for domestic and foreign investors to understand and invest in China’s green bond market. Up tonow, the index has outperformed market average in return. Its constituent bonds are stable in credit standing,highly decentralized and highly liquid. The index is easy to track and replicate.

CSI-ICBC Wealth Management Carbon Neutrality and Asset Allocation Index
During the reporting period, ICBC Wealth Management released the industry’s first carbon-neutrality multiasset index jointly developed with China Securities Index Co., Ltd. (CSI). The index focuses on the debt andequity assets in more than 30 segments in the deep decarbonization sector, giving full play to ICBC WealthManagement’s asset allocation capability. The target risk model was used to create optimal allocations of debt andequity assets benefiting from carbon neutrality. This index is focused on the theme with strong vitality, pursuingabsolute returns and emphasizing drawdown control. It suits the prudent risk appetite of wealth management
customers.

CSI 180 ESG Index
CSI 180 ESG Index was jointly released by the Bank and China Securities Index Co., Ltd. (CSI). It came as
first ESG index developed by a domestic commercial bank. The index measures the ESG performance of listedcompanies using ICBC’s unique ESG rating system. By assigning a bigger weight to the stocks with better
ESG performance, the index reflects the overall change in stock prices of enterprises with strong sustainability.
The ESG index came as a new practice for financial institutions to optimize resource allocation and promotesustainable development with innovative ideas and tools, helping enterprises better combine environment, social
responsibility and corporate governance with operating cost-effectiveness and establish a long-term development
mechanism.

2021 Special Report on Green Finance （TCFD）ICBC

４１

Column Supporting Development of Pilot Zones forGreen Finance Reform and Innovation
The Bank thoroughly implemented the national strategic plan at Head Office, branch and sub-branch levels,
providing persistent and strong financial support for promoting the ecological conservation and building thebridgehead of green finance in the pilot zones. The Bank issued the Guidelines for Promoting Financial
Services in the Pilot Zones for Green Finance Reform and Innovation. The document sets forth majortasks (namely, improving the green finance organization framework, continuously increasing investment
and financing support for green industries, focusing on strengthening supporting measures, strengthening

5

16

environmental and social risk management and improving the day-to-day work mechanism) andspecific actions, so that all institutions are able to play a better leading role in the local green finance reform
and innovation. Branches in pilot zones have developed an array of replicable practices in creation of thegreen finance organization framework and innovation in products and services.

Green loans grew steadily
As at the end of the reporting period, the Bank registered RMB439.7 billion in balance of green loans inZhejiang, Xinjiang, Guizhou, Jiangxi, Gansu and Guangzhou.
Outstanding green loans ofFinancial support planning for pilot zones

RMB439.7 billion

Branches in pilot zones developed finance action plans tailor-made for local green industry developments. For
example, Zhejiang Huzhou Branch formulated its latest Three-Year Plan for Green Finance Development of
Huzhou Branch in line with the “30•60” decarbonization goal, as the master plan for the branch’s green financedevelopment. The branch also prepares the Green Finance Model Project Plan of Huzhou Branch each year.

Refining the supporting mechanism for green financial services, improving theallocation of green financial resources

First, the organizational framework was improved. For example, Zhejiang Branch innovatively set up
a green finance department, and Huzhou Branch participated in the pilot program on carbon-neutrality
banks in Huzhou and facilitated the first zero-carbon building project. Second, the resource allocationand support were strengthened for green finance by prioritizing the green lending quota, applying
preferential interest rates to green loans and strengthening the performance assessment of green
finance. A differentiated credit process was introduced for green finance projects. In credit approval,
for example, Quzhou Branch gives priority to small and micro businesses included in the Whitelist ofEnvironment Friendly Green Enterprises.

Innovative green financial products and services were introduced to effectively
support the green finance reform and innovation in pilot zones

Financial product innovation was strengthened based on traditional operations on and off balance sheets,
giving full play to the Bank’s overall strengths.
For example, Huzhou Branch launched dedicated financing products such as Green Park Loan, Green Seedling
Loan, Green Breeding Loan and Carbon Benefit e Loan.
Guangzhou Branch actively participated in the construction of green bond market, recommended green bonds(including Carbon Neutrality Bonds) and Sustainability-Linked Bonds to enterprises, innovatively introduced
supply chain financing and launched the Huadu Green Industry Cluster Loan.

05

Green Investment and Financing (Metrics and Targets)４２

Case: Huzhou Branch provided innovative financial services for bamboo
carbon sink
In September 2021, in order to provide targeted financial support for the bamboo carbon sink industry,
Huzhou Branch of the Bank set up a research group on “Anji Bamboo Carbon Sink” under theguidance from the Modern Finance Research Institute and formulated the Research Report on Anji
Bamboo Carbon Sink Industry based on in-depth survey. The Branch was deeply involved in creating theAnji bamboo carbon sink trading mechanism, and highly recognized by the local government. With financial
support as the link, the Branch innovatively designed a financial service scheme for carbon sink covering thegeneration, storage and use of carbon sinks in bamboo forests, including Carbon Sink Common Prosperity
Loan, Carbon Sink Storage Loan and Carbon Neutrality Aid Loan. It signed strategic cooperationagreements with the three sides respectively, giving a financial impetus to the Anji bamboo carbon sink industry.
The bamboo carbon sink-related financial service model innovatively uses the right to earnings in forestry carbon
sink as pledge, effectively turning ecological resources into economic benefits. Such mechanism of offsetting
industrial carbon emissions by the increment of forestry carbon sink can not only boost the industry nurturing
agriculture process, but also create space for low-carbon transition of local industries.

Signing ceremony for the cooperation agreement on carbon sink storage loan.

Case: Guizhou Branch supported the building of the pilot zone for green
finance reform and innovation
During the reporting period, ICBC Guizhou Branch fully supported the building of a pilot zone forgreen finance reform and innovation in Gui’an New Area. From the perspectives of establishing separate
convenient access to green finance review, moderately lowering the access threshold for green projects,
cutting the financing costs of green loans, ensuring the scale of green credit, accelerating the innovationof green financial products and financing channels, the Bank took diferentiated resources allocation andguarantee for green loans in Gui’an pilot zone, and established the development goal of green finance in
Gui’an pilot zone for green finance reform and innovation. For the green projects in Gui’an Industrial Park,
the Bank broadened the financing channels for companies through investment-loan linkage, so as to meet thefinancing needs of high-quality green enterprises with one-stop solutions.

Case: Jiangxi Branch implemented a “Six Dedicated” service model for
institutions in Ganjiang New Area
Jiangxi Branch introduced a “Six Dedicated” service model (namely, dedicated credit quota, dedicatedfund price, dedicated risk management metrics, dedicated credit approval channel, dedicatedperformance assessment and dedicated green finance products) for institutions in Ganjiang New Area, so
as to improve work efficiency and accelerate the development of green credit projects.

2021 Special Report on Green Finance （TCFD）ICBC

４３

Innovation in green investment and financing products
Biodiversity conservation
Tianjin Branch s u p p o r t e d e c o l o g i c a l c o n s e r v a t i o n i n n o r t h e r nmountainous area of Tianjin

This project was located in the northern mountainous area of Tianjin, part of the Beijing-Tianjin-Hebei
integration region in the northern sand prevention belt. This area is a national key eco-function zone anda crucial area for China’s desertification prevention and control. The project mainly controls the BeijingTianjin sandstorm sources. The project will effectively protect the existing natural resources in the region,
further increase the vegetation cover, enhance the eco-functions of windbreak and sand fixation, soil
and water conservation and biodiversity and improve the quality and stability of the natural ecosystem.
The project investment totals RMB
billion. Tianjin Branch has disbursed its participating loan of
RMB
billion with a term ofyears. The project mainly works on bare land restoration,
ecological conservation, forest tending, plant introduction and domestication, ecological experience andthe improvement of the ecological environment in northern mountainous area through afforestation, after
which moderate eco-tourism activities will be carried out based on the soundness of the ecosystem.

3.75

30
25

Tianjin Branch provided credit support for the tourism project of Limutai Scenic Area in Jixian County

05

Green Investment and Financing (Metrics and Targets)４４

Guizhou Branch

supported ecological restoration of Caohai, Bijie City

Guizhou Branch of the Bank prioritize the support for Caohai ecological restoration in its financial services offering,promoting biodiversity conservation and green development in the area. Guizhou Weining Sub-branch provided
RMB
million of credit support for “Vegetation Restoration Project in the Rain Collection Area on the North
Bank of Caohai”. Caohai, located in Bijie City, Guizhou Province, is a national nature reserve and one of the few
natural freshwater lakes on the plateau. The large-scale expansion of the county town has gradually consumed thevegetation around Caohai. The local forest coverage rate is less than 10% with severe soil erosion. Guizhou Branch
supported the renovation of road surfaces on the north slope of Caohai, the landscaping of park roads and squares,
afforestation and auxiliary facilities. With its help,
mu of vegetation restoration has been realized in the rain
collection area on the north bank of Caohai. In recent years, the number of bird species in Caohai Nature Reserve has
birds wintered in Caohai Nature Reserve.
increased from 228 to 246. More than

620

2,500

60,000Fujian Branchprovided financing for core attractions in Fujian Wuyishan National Park120

million of financing to the operator of core attractions in Wuyishan
Fujian Nanping Branch provided RMB
National Park. Nanping Branch developed a customized financial solution for the customer. Secured by the charging
rights in particular assets, RMB
million of credit was granted to fund the ecological conservation at core
attractions and meet the working capital needs for renewal, renovation and repair of facilities and landscapes in thepark. Wuyishan National Park, located in the north of Fujian Province, is the largest world heritage site in China atpresent. It is a subtropical evergreen broad-leaved forest area withspecies of key protected wild animals,
square kilometers of native forest vegetation that has not been destroyed by human activities. It is themost complete, typical and largest subtropical forest ecosystem on the same latitude in the world. Fujian Nanping
Branch provided strong support for its ecological conservation and biodiversity.

480

210.702021 Special Report on Green Finance （TCFD）ICBC

7,400

４５

Xinjiang Branch

supported ecological conservation of Bayinbuluke Reserve

300

Xinjiang Branch granted a loan of RMB
million backed by charging rights in particular assets to a tourism
development company. The company is mainly responsible for the development and operation of tourism projects
in Bayinbuluke Reserve and infrastructure construction at tourist attractions. Bayinbuluke, located in the Yourdusi
Basin in the middle of Tianshan Mountains, is named as one of the six most beautiful swamps in China by Chinese

5

National Geography, and is a national A tourist attraction. With the loan support from Xinjiang Branch, thefrequency and scheduling of shuttle buses in the nature reserve are more reasonable, and the tourism satisfaction has
been improved. As the shuttle buses are mainly renewable energy vehicles with zero pollution, even in the case of asignificant rise in the number of tourists, the local ecosystem can be conserved.

Hebei Branch

supported the Baiyangdian Ecosystem Rehabilitation Projectin Xiong’an New Area

The pilot project of Baiyangdian Ecosystem Rehabilitation in Xiong’an New Area is divided into three bid sections.
-year project loan of RMB
million for the enterprise responsible for the firstHebei Branch approved abid section. It also issued a project loan of RMB
million to the enterprise responsible for the third bid section,with a loan term of up to
years. Baiyangdian ecosystem rehabilitation is the top priority of ecological work in
Xiong’an New Area, relating closely to the ecological security and sustainable development of the Beijing-TianjinHebei region. When completed, the project will effectively improve the water body of Baiyangdian Lake and theliving environment of the surrounding residents. It is an important move to create a new eco-friendly and livable rural
environment in the new area.

10

15

182

168

05

Green Investment and Financing (Metrics and Targets)

４６

Low-carbon transition
Shanghai Branch supported enterprises in energy conservation and emissions reduction
Shanghai Branch issued the first ever innovative loan for purchasing
carbon emission allowance and China Certified Emission Reduction(CCER), helping emission control enterprises in surrender of carbon
emission rights and performance of emissions reduction obligation.
Shanghai Branch supported the “capacity upgrading, coal reductionand emissions reduction” of key energy projects in Shanghai
during the 13th Five-Year Plan period. It provided financial support
for a factory’s high-efficiency generators transformation project
billion earmarked for “two 650
with a joint loan of RMB
thousand MW double reheat ultra-supercritical coal-fired units”.
The branch underwrote RMB
million of green mediumterm note issued by an environmental company, with remarkable
benefits in energy conservation and emissions reduction. It provided
financing for two large floating storage regasification units (FSRUs)
for liquefied natural gas (LNG). FSRUs are typical environmentfriendly vessels designed and built with the concept of “green,environmental protection, low carbon and safety”.

1.3

300

Zhejiang Branch supported market-oriented green power trading
On September 7, 2021, the first pilot direct trading of green power was launched on the online platform. Throughproactive marketing, Zhejiang Quzhou Branch learned that a local large state-owned enterprise planned toparticipate in the market-oriented trading of green power and subscribe for 100 million kWh of green power,
which would be partially funded with external financing. The Branch submitted a service proposal immediately.
After the proposal was accepted by the enterprise, the Branch activated the expedited process for dedicatedbusiness according to the branch’s credit management system for green “carbon credit” customers, andcompleted the approval process in just two days. The Branch eventually issued an RMB
million financing
facility for the enterprise’s initial green power subscription of 50 million kWh. This successful subscription forgreen power is equivalent to a reduction oftons of carbon dioxide emissions, effectively helping
the borrower achieve energy conservation and emissions reduction and fulfill its social responsibility.

29

35,000Inner Mongolia issued “Carbon Sink Loan” to diversify green financing channels
BranchOn November 2, 2021, Baotou Branch successfully
granted a “Carbon Sink Loan” of RMB
millionto a steelmaker in Inner Mongolia for its carbon
sink trading. It came as the largest financing facility
for carbon sink trading from financial institutions
in Baotou so far, which is the innovative financial
support for green, low-carbon, energy-conservation andemission-reduction industries, and helps to improve thesustainability of local environment.

102021 Special Report on Green Finance （TCFD）ICBC

Inner Mongolia Branch paid a field visit to the production line of a steelmaker４７

Shandong Branch issued the first subsidy-backed loan for biomass power producer
In September 2021, Shandong Branch of the Bank approacheda local biomass power producer. Under the guidance of thelocal PBC branch, Shandong Branch successfully issued to thecompany a loan backed by confirmed fiscal subsidy receivables
as pledge. This loan was of great significance to innovating theform of pledges, diversifying corporate financing channels andpromoting the development of renewable energy. Meanwhile, thisloan was used to purchase crop straw residues as raw materials,
effectively boosting the income of local farmers. It is aneffective form of targeted poverty alleviation through industrial
development, and an important way to achieve rural vitalization.
Jiangsu Branchhelped a green energy company acquire 10 photovoltaic power plants

Jiangsu Branch issued an M&A loan to a green energy
company to fund its acquisition of 10 photovoltaic
power plant project companies. The loan enabled theborrower to further optimize its network of photovoltaic
power plants and the regional solar energy mix. The
photovoltaic business has further expanded to enhance theconglomerate’s core competitiveness. The seller’s total
registered installed capacity was 360 MW, all of which
was in operation and connected to power grids. The
underlying assets included one “Leader” power station(100 MW) and two “Poverty Alleviation” power
stations. Their operation models include “farming+ lighting” combination and “fishery + lighting”
combination. These projects deliver good economicand environmental benefits.
Shanxi Branch

supported the PPP Project Phase I of Taiyuan Rail Transit Line 1

5Shanxi Branch and Beijing Branch jointly issued a syndicated project loan of up to RMB billion for the PPP
Project Phase I of Taiyuan Rail Transit Line 1. With a term of no more thanyears (with a grace period ofyears), the loan is earmarked for project implementation. As a key project of China Railway Construction,
the project has a large total investment, many participating banks and complicated syndication work. The
Taiyuan Rail Transit Line 1 project has reduced the environmental impact on surrounding areas by optimizing
the organizational design and working processes, strictly controlling the boundaries of construction sites andstrengthening the supervision of works. In addition, to meet the needs of energy conservation, emissions
reduction and low-carbon life, the project has incorporated energy-efficient design and upgrades in terms ofroute design, traction and braking of trains, operation modes of rail transit systems and product selection. Whenput into operation, the project will effectively improve the urban traffic environment, increase jobs and boost
economic development along the line and in the broader region.

30

6

05

Green Investment and Financing (Metrics and Targets)

４８

Precious Metal
Business Department

provided financial leasing services for the green industryof refinery-petrochemical integration

The Precious Metal Business Department keeps rebalancing its energy investment and financing in line with
the national energy mix adjustments. It provided
tons of silver leasing and financing service forthe green industry of refinery-petrochemical integration. The refinery-petrochemical integration project ofa petrochemical company is an encouraged key project in the national petrochemical industry. The project
improves the energy cycle efficiency and forms a low-consumption, low-emission and high-efficiency
industrial development system through the integrated construction of utilities and the centralized allocation of
supply of water, electricity and other utility services. The Precious Metal Business Department issued
tons of silver leasing to the company to ensure smooth project implementation.

121.2

57.9

Ningbo Branch

supported a local tool manufacturer to be renovated into a “green factory”

Ningbo Branch facilitated a local tool manufacturer’s green transition with stronger financing support anddiverse financial services. As of October 2021, the company had a financing balance of RMB
million with Ningbo Branch. Through technical revamp, introduction of advanced systems and other measures,the company was committed to building a “green factory” and a green manufacturing system with low energy
consumption and high energy efficiency. The company was honored as a “Municipal Green Factory” for its
high rating in carbon emissions per unit of industrial added value.

31.95

Heilongjiang
Branchhelped a green energy company cut carbon emissions

A green energy company built a “new MSW-to-energy incineration project with a daily treatment capacity of800 tons” in Qiqihar under a concession contract. With one 15MW turbine generator set and a total investmentof RMB392.29 million, the project applied for bank financing of RMB
million, accounting for%of total investment, with a term of 15 years. The financing was backed by charging rights in the project witha concession period of 30 years. When put into operation, the project will treat 800 tons of municipal solid
wastes (MSW) per day, representing an annual treatment capacity of 292,000 tons and a maximum on-gridenergy output of 81.1 million kWh. On the one hand, it can meet the demand for environmental and economic
sustainability and for an environment-friendly society. On the other hand, the MSW-to-energy approach is ofgreat significance to promoting environmental protection, for it effectively relieves the pressure of landfill sites
and saves massive valuable land resources.

237

2021 Special Report on Green Finance （TCFD）ICBC

60.4

４９

Shaanxi Branch supported Hanjiang Baihe Hydropower Project2

Shaanxi Branch issued a project loan of RMB billion to a hydropower developer’s Hanjiang Baihe
Hydropower Project. With a term of up to
years, the project loan is unsecured during the construction
period, and secured by the tariff charging right and related accounts receivable after the project is completed.
By the end of the reporting period, the Branch had granted a total loan of RMB
million forthis project. Baihe Hydropower Project is a comprehensive utilization project in the upper reaches of HanjiangRiver. Its principal task is hydropower generation, supplemented by shipping and other benefits.

25

1,179.65

According to the energy output estimates, the project will, when completed, save

181,000 tons of standard coal equivalent for thermal power and reduce the emissionsof carbon dioxide, sulfur dioxide and nitrogen oxides by 474,000 tons, 1,500
tons and 1,300 tons, respectively.
Hunan Branch

supported the wind farm project in Sapo Township, Jingle County

During the reporting period, Hunan Branch of the Bank increased its support for green and environmental
protection projects. It supported nine wind energy projects of a subsidiary of State Power Investment
Corporation (SPIC). The approved financing facility totaled RMB5.02 billion. By the end of the reporting period,
Hunan Branch had disbursed RMB
million with an outstanding balance of RMB
million.
RMB
million of financing was approved for the 200MW wind farm project in Sapo Township, Jingle
County. By the end of the reporting period, Dongtang Sub-branch in Changsha City, Hunan Province had
disbursed RMB
million of financing for the project. With a planned capacity of 200MW, it is an energyefficient and environment-friendly project that harnesses wind to generate electricity. It helps save energy, cut
emissions and improve the power supply mix, playing a positive role in improving the power grid capacity of
Xinzhou, Shanxi Province. When completed, it will supply
MWh clean energy to the power
grid a year. In addition, it can also reduce a large amount of soot and fly ash emissions each year, cut water
consumption, and reduce wastewater emissions, thus delivering remarkable environmental benefits.

3,595

884

2,371

500

441,591.35

143,958.78 tons of standard coal equivalentand reduce emissions of carbon dioxide, sulfur dioxide and nitrogen oxides by 348,848.33 tons,
2,534.73 tons and 3,806.52 tons, respectively.

The project will, when put into operation, save about

05

Green Investment and Financing (Metrics and Targets)

５０Green supply chain
Inclusive Finance
Department

innovatively developed “e-Chain Quick Loan”

Inclusive Finance Department cooperated with a leading solar PV manufacturer to promote the development of digital supply
chain business in the field of distributed solar PV, giving a boost to high-quality development and comprehensive green
and low-carbon transition. The company is mainly responsible for the expansion and operation of home rooftop solar PV
systems. Its principal business is divided into two models: leasing and sales. Under the sales model, when rural households
as end customers purchase solar power systems from agents of the manufacturer, they need an efficient, convenient financing
channel to support lump-sum cash payment
for their purchases. Based on the philosophyof being oriented to customer experienceand innovating risk controls withoutchanging the business logic of the scenario,
Inclusive Finance Department embedded the“e-Chain Quick Loan” into the purchasing
scenario where the manufacturer provided
rural households as end customers with afull range of services including equipment
sales, installation, commissioning and gridconnected power generation through local
agents (non-affiliated). In this way, supply
chain loans were issued to fund the purchaseof distributed solar PV systems. This projectprovided a new path and model for inclusive
finance and green credit development.

Henan Branch

supported a company’s downstream supply chain financing

To effectively address downstream customers’ fund shortage in buying vehicles, an automotive company
partnered with financial institutions in supply chain financing. Buyers of new energy vehicles (NEVs)
accounted for one third of financed customers, with about 1,000 vehicles sold, mainly in the bus and commuter
sectors. These NEVs have reduced carbon emissions and pollutants that cause smog and reduced the PM2.5
concentration in the air, effectively reducing carbon emissions and improving air quality. Compared with fuelfired buses, a pure electric bus reduces carbon dioxide emissions by about 7 tons and other exhaust pollutants bynearly 0.4 tons a year. Henan Branch helped electrification of
buses to reduce carbon emissions by
nearlytons and other exhaust pollutants by about
tons a year, enabling green travel in a lowcarbon and energy-efficient fashion.

7,000

2021 Special Report on Green Finance （TCFD）ICBC

1,000
400

５１

Green agriculture
Heilongjiang
Branchsupported the financing of an agribusiness conglomerate

48

During the reporting period, Heilongjiang Branch granted a total ofloans to an agribusiness conglomerate,with an outstanding balance of RMB
million. These loans were mainly used for grain reserves andday-to-day production and operation of its subsidiaries, all of which are included in the PBC’s scope of green
lending. The Branch will further provide all-round financial services to the customer and persistently support its
vigorous push for sustainable agriculture. The agribusiness conglomerate is an important national commodity
grain base and strategic grain reserve base in China, manifesting the largest scale of farmland, the highest degreeof modernization and the strongest comprehensive production capacity in the country. It serves as a “ballaststone” for the national food security. Keeping in line with the content, characteristics and trends of sustainableagriculture, Heilongjiang Branch has regarded supporting sustainable agriculture as a crucial focal point of green
financial work and helped the customer make great strides in sustainable agriculture.

7,081

Xinjiang Branch supported sustainable agriculture development
Xinjiang Changji Branch granted the “Quick Lending
for Operation” and “Online Revolving Loan”, totaling
RMB
million, to a crop seeds company in Xinjiang.
The company is mainly engaged in research, development,
breeding, production, experiment, demonstration, operationand promotion of crop seeds. It applied for loans to Xinjiang
Changji Branch to finance its seed production activity andworking capital needs. Xinjiang Changji Branch developed
a tailor-made financial service solution based on its key
credit products, including “Quick Lending for Operation”
and “Online Revolving Loan”, and disbursed credit funds
quickly. The service strongly supported implementation of
the local government’s sustainable agriculture plan. It wasalso a move to implement the national rural vitalization
strategy, providing strong support for local sustainableagriculture.

8.5

05

Seed warehouse of a company financed by Xinjiang Branch

Green Investment and Financing (Metrics and Targets)

５２

Green services
Beijing Branch

supported green city operations and green Olympics

1.36

Beijing Branch granted RMB
billion of financing for the geothermal “dual-source” district coolingand heating system project in the core area of Beijing sub-center. The project employs the largest single-batch
geothermal “dual-source” system worldwide, launched as a demonstration project for “near-zero carbon
emission zone” in Beijing.

21,000The project will savetons of standard coal equivalent and reducecarbon dioxide emissions for the city sub-center a year

48,000 tons of

In addition, Beijing Branch served green Olympics by supporting the construction of low-carbon venues, energy
utilization and transportation for Beijing 2022 Winter Olympics. This Winter Olympics came as the firstinternational sports event held after China announced the dual-carbon goals. As one of the three competition zones,
Beijing Yanqing Winter Olympics Village and Mountain News Center met China’s green building standards.
The project design and construction embodied the philosophy of green Olympics and ecological sustainability
everywhere. Beijing Branch took the lead in completing the project financing approval, and was one of the biggest
participants in syndicated lending to the project.

2021 Special Report on Green Finance （TCFD）ICBC

５３

Bills Discounting
Department

launched the green bills discounting service brand “ICBC iGreen Discount”

During the reporting period, the Bills Discounting Department of the Bank tapped its innovation potential. By
stepping up innovation investment and technological research and development, “ICBC i-Green Discount” wascreated and launched as a unified service brand for green bills discounting. The brand provides an effective tool
for the bills financing function to serve green customers through research and development of such features ascustomer classification label, green customer whitelist and green financial policy system elements. Targeted
support was provided for customers in green
industries through an expedited businessprocess, preferential interest rate discounts,
central bank policy alignment, cooperation
with pilot zones for national green financereform and innovation and other incentive
and publicity mechanisms. During thereporting period, the accumulative amountof “ICBC i-Green Discount” was nearly
RMB
billion, which all channeled togreen enterprises aligning with the national
orientation towards environmental protectionand energy conservation.
% of theseenterprises were manufacturers who took up
more than% of the total amount.

35

50

70

ICBC Technology building a blockchain service platform for bank confirmations

Under the guidance of CBIRC,
Ministry of Finance and otherregulatory authorities, ICBCTechnology as contractor createdthe “Blockchain Platform forBank Confirmations”, based on its
experience in “ICBC e Confirmation
Service”, jointly with China Banking
Association and Chinese Institute ofCertified Public Accountants. The
platform provides secure, efficient andlow-cost digital confirmation services
for banking institutions and accounting
firms. By the end of the reporting
period,banking institutions andaccounting firms had establishedan access to the platform to access theOn December 18, 2020, Zhang Wenwu, Senior Executive Vice President of the Bank, attended the launch event anddigital confirmation services. Theresigning ceremony of the Blockchain Platform for Bank Confirmations in Beijing.
were over 12 million traditional bankconfirmations a year. The Blockchain Platform for Bank Confirmations helps create a paperless office ecosphere,effectively reducing paperwork and logistics costs and contributing to carbon emissions reduction across the industry.

14

32

05

Green Investment and Financing (Metrics and Targets)

５４

Overseas green financeSupporting an offshore wind farm project in the UK
During the reporting period, the Bank took
an active part in multilateral cooperationand jointly developed third-party markets
leveraging on its broad overseas network.
The Bank joined a syndicate consisting ofcommercial banks from Spain, France,
Germany and Japan, providing financing for
an offshore wind farm project in the UK. It
was a typical case of multilateral cooperationin large-scale new energy projects. The
project is expected to supply electricity tohouseholds in Scotland ayear, meeting the power demand of 40%
of local households and cutting carbon
emissions by
million tons.

16

950,000

1.7

Supporting a solar thermal and photovoltaic integrated power
plant project in Dubai
During the reporting period, the Bank as the leadarranger successfully organized an international

2.5

syndicate of commercial banks, issued a USD
billion credit facility for a solar thermal andphotovoltaic integrated power plant project in Dubai.
This project is one of the important projects under the
UAE’s clean energy strategy. When completed, it can
supply clean electricity to more thanhouseholds in Dubai a year.

270,000

Emissions reduction:
million tons of carbon dioxide

1.6110,000 tons of sulfur dioxide

29 million tons of inhalable particulate matters
50,000 tons of nitrogen oxides

and2021 Special Report on Green Finance （TCFD）ICBC

５５

Sydney Branch: Supporting a light rail transit (LRT) refinancing
project
Thanks to its good reputation in infrastructure finance in Australia, outstanding professional skills and long-term
stable partnership with consortium members, Sydney Branch stood out from the fierce competition among morethan 20 banks. It became one of the participating banks for a LRT refinancing project, and the only Chinese bankamong the five shortlisted banks.

The project is a LRT system consisting of three lines. The trams used canrecover 99% of energy consumption in braking mode, estimated to reduce

663,000 tons of GHG emissions in the next 30 years. This project has

been certified as green financing by the Climate Bond Standards Board. It
also became the first infrastructure project in operation certified for green
loan in New South Wales.

ICBC Standard: exploring clean energy business, serving energy
conservation and emission reduction needs
ICBC Standard attaches great importance to ESG and sustainable finance development, actively exploringbusiness opportunities in clean energy and other fields. Leveraging on its unique strengths in energy business,
ICBC Standard has successfully provided clean energy financing services for large LNG customers, meeting
their business needs and empowering clean energy development. In addition, the bank conducts in-depth
communication with energy customers, helps enterprises’ professional discussions on natural gas and LNG risk
management and financing and explores business opportunities while promoting carbon emissions reduction. To
meet business needs in the field of new energy vehicles, ICBC Standard has carried out platinum-group metalleasing and transitional loan projects for low-carbon enterprises, thereby serving the business needs of customers.

05

Green Investment and Financing (Metrics and Targets)５６Green Operations(Metrics and Targets)

Focusing on key tasks in the 14th Five-Year Plan period and the dualcarbon goals, the Bank makes persistent explorations and innovations
to achieve green operation, build green office and offer green services
through the in-depth integration of finance and technology. In a pushfor “green banking”, the Bank endeavors to build zero-carbon outlets,strengthen the publicity and education of environmental protection andfulfill the commitments to energy conservation and emissions reduction.

2021 Special Report on Green Finance （TCFD）ICBC

５７Energy conservation and emissions reduction
Carbonfootprint
management

Among the financial institutions in Chinese Mainland, the Bank is the first to havean in-house statistical system for carbon footprint management and the first to
realize digital reporting, standard approval and automatic aggregation of energy
consumption data. With a pilot program carried out among selected institutions, inaddition to the Head Office, some branches (e.g. Beijing and Hunan) have carriedout carbon inventory. According to the total amount and structure of carbon emissions
in the past five years, the Bank has started a research on its carbon neutrality timetablefor own operations and its roadmap for energy conservation and emissions reduction,
making gradual progress in the work on carbon-neutral operations.

Steady decline in energy consumption
During the reporting period, the Bank increasingly standardized its energy management. The green officeevaluation methods and management policy were formulated and refined to encourage proactive explorations
for institution-specific energy conservation and emission reduction measures, and for institution-specific policyon the use of energy resources. The Bank regularly assesses the operation of the energy-using systems on
Beijing-based office premises of the Head Office and strengthened the supervision and measurement of energy
use. According to the Notice of Beijing Municipal Ecology and Environment Bureau on Management of Key
Carbon Emission Entities and the Pilot Work on Carbon Emissions Trading in 2021, the Bank has completed
the carbon emissions verification, clearing of carbon emissions trades and other related work for Beijing-based
office premises of the Head Office. Employees’ awareness of energy conservation has been enhanced by carryingout a series of events, including intensifying publicity and guidance, giving lectures on energy conservation andcreating an energy efficient organization.
During the reporting period, the total fuel consumption of business vehicles
at the headquarters of the Bank was 65,355 liters, with a mileage of 478,618
kilometers.
The lighting sources in some areas of the underground spaceat the Head Offce were upgraded to LED lamps, saving power
consumption by% while boosting lighting effects.

50

The operation management and maintenance of central air-conditioning
units were strengthened to ensure their optimal condition and efficiency,
standardize and control the temperature of office air-conditioning and turnoff air-conditioning in idle areas, thus reducing power consumption.
The Bank’s data center used the solar photovoltaic technology to generate
electricity on a pilot basis, reducing power consumption in the park, withmillion transactions processed a day. Carbon dioxidea peak ofemissions were cut by nearly
tons during the reporting period.

868

6,000

The Software Development Center purified or replaced the lithium bromide
solution of two direct-fired air conditioners, and recycled the wastewaterproduced by water dispensers in the office building, thus reducing energy use.

06

Green Operations (Metrics and Targets)

５８

◎

◎

Solid Wastes Generated by Electronic and Information Products
Item

Unit

2021

2020

2019

Microcomputers

sets

920

838

519

Monitors

sets

991

544

280

Laptop computers

sets

655

212

494

Printers

sets

150

297

132

Servers

sets

0

12

7

Others

sets

740

674

292

Tonerskg

980.85328.05332.85Cartridges

kg3362.41124.41141.2

Ribbons

kg

2

3

4.5

The Bank standardized
the electronics scrapping
procedure to ensureharmless treatment ofe-wastes and minimize
environment impact.

Main metrics of green operation of the Head Office in 2019-2021
Item

Unit

2021

2020

2019

Proportion of domestic
E-banking business volume

%

98.8

98.7

98.1

Office paper consumption

million pieces

9.72

8.86

10.26

Office power consumption

kWh81,161,682

17,290,357

19,667,324

Office water consumption

ton

282,154

125,103

177,550

Corporate vehicle fuelconsumption

liter

65,35557,33967,796

Corporate vehicle mileagekm

478,618

335,907397,510Notes:
1. Statistical scope of total office water consumption and total office power consumption in 2021 covered the Head
Office, the kindergarten, Business R&D Center and Beijing R&D department of the Software Development Center ofthe Head Office; the statistical scope of total office water consumption and total office power consumption in 2019-2020
only included the Head Office and the kindergarten of the Head Office.
2. The statistical scope of total oil consumption and mileage of business vehicles in 2021 covered business vehicles,
dining cars and other vehicles; the statistical scope of total oil consumption and mileage of business vehicles in 20192020 only included business vehicles.
3. The statistical scope of the total amount of office paper consumption covered the Head Office.

2021 Special Report on Green Finance （TCFD）ICBC

５９

Carbon emissions from Green operations (Scope 1/Scope 2)
GHG emissions from Beijing-based institutions of the Head OfficeDirectGHG
emissions

Emissions(Tons of carbon
dioxide)Mainsource3,075.30

Natural gas
consumption(10,000 m3)

IndirectGHG
emissions

Emissions(Tons of carbon
dioxide)4,9021.66

Electricity
consumption
(MWh)

Main
source81,161.682

142.2307

Note: According to the carbon emissions management requirements of Beijing, information on Beijing-based institutions of the Head Office includes information on the Head
Office Park, kindergarten, the Business R&D Center and the Software Development Center (Beijing). Relevant energy consumption was calculated according to the Guidelines for
Carbon Dioxide Emissions Accounting and Reporting of Beijing Enterprises (Organizations).

GHG emission from Beijing Branch (headquarters)

DirectGHG
emissions

Emissions(Tons of carbon
dioxide)MainsourceIndirectGHG
emissions

1,582.13

Natural gas
consumption(10,000 m3)

Emissions(Tons of carbon
dioxide)50,295.84

Power consumption
(MWh)
Main
source731.746

06

83,271.26

Green Operations (Metrics and Targets)６０

Column Leader in Building Green Data Center
The Bank’s data center upholds the mindset of energy conservation and environmental protection.
In response to the national dual-carbon goals, the Bank has implemented the philosophy of building
and operating green data centers in terms of computer room construction, energy conservation andemissions reduction as well as efficient operation and maintenance, giving an impetus to green, lowcarbon transition of economic and social development and serving the national goals of carbon peakand carbon neutrality. In 2020, Jiading Park of the Bank’s data center was honored as “National Green
Data Center”. This award showed the Bank’s achievements in green data center construction andoperation fully recognized among national authorities and professional accreditation bodies.

Computer room construction
In the second phase of the Jiading Park computer room project, the Bank applied 21 “new-era
infrastructure” technological solutions, including high-water-temperature cooling, series structure ofwater chillers and plate heat exchangers, high-voltage variable-frequency water chillers, air-cooled
water chillers and high-voltage DC. Among them, 14 technologies were first used in financial
industry data centers, and 8 technologies were first used in financial and internet firms’ data
centers. The PUE design value was reduced from 1.6 (Jiading Phase I) to 1.387 (Jiading Phase
II). When operating in full capacity, Jiading Phase II will save 30 million kWh of energy a year.
In Waigaoqiao Park, the data center designed and built the experimental environment of container
computer room based on the philosophy of prefabrication and modularization, and used newtechnologies to enable high-efficiency operation of the computer room. The average PUE was as low
as 1.192 in the year, a leading level across the sector, and winning the Bank the IDC’s “Future Digital
Infrastructure Leader” award.

Energy conservation and emissions reduction of equipment
The Bank adopted technologies such as cloud environment virtualization and containerization to
fully unleash equipment performance and better utilize IT equipment. The Bank deployed customized
high-density servers, liquid-cooled servers, high-performance CPUs, large-capacity storage and otherenergy-efficient and high-performance IT equipment, so as to increase the deployment density per unit
space and reduce the resource consumption of computer rooms.

Operation and maintenance management
The Bank’s data center has actively researched and applied the new technologies regarding computerroom operation and maintenance to improve the efficiency, security and stability of the computerroom.

2021 Special Report on Green Finance （TCFD）ICBC

６１First, ICBC was the first bank to apply the intelligent
inspection robot and the power inspection robot to
explore the unmanned and smart management ofcomputer rooms.
Second, ICBC was the first bank to use the RFID-based
asset tracking technology to realize intelligent asset
management.

Real scene of Jiading Park of Data Center

Third, based on the real-time digital simulation (RTDS)
technology, ICBC was the first bank to accomplish the realtime simulation of computer room refrigeration and theinteraction between DCIM monitoring data and simulation
data, enabling predictive management of the computerroom refrigeration system and visualization of computerroom airflow management. The solution has provided
a scientific basis for IT equipment deployment andinfrastructure control management, receiving the second prizeof the “Data Center Technology Achievements Award” at
CDCC 2021 Ninth Data Center Standards Summit.

Active explorations for low-carbon outlets
During the reporting period, the Bank built four carbon-neutral “zero-carbon outlets” on a pilot basis, gaining
experience in “green banking” in own operations. The Bank has integrated the environment-friendly technologies
and the green development philosophy into the design of outlets. Environment-friendly building materials andfurniture were used. ICBC cooperated with the carbon emissions exchange in checking the carbon emissions ofbuilding materials and office supplies during outlet remodeling and operation, and offset carbon emissions, so
as to achieve the “carbon neutrality” in outlet remodeling and “carbon neutrality in advance” in outlet operation.
The Bank also renovated outlets for energy-efficient lighting and piloted automated cash handling at outlets,
making gradual progress in low-carbon outlet development.

Inauguration of the Bank’s first “zero-carbon outlet”

06

Green Operations (Metrics and Targets)６２

On September 14, 2021, China Emissions
Exchange (Guangzhou) issued a “carbon
neutrality” certificate to Shantou Park
Sub-branch, marking the official launchof the Bank’s first “zero-carbon outlet”.
On November 10, 2021, China Emissions
Exchange (Tianjin) issued a “carbon
neutrality” certificate to First Development
Sub-branch of Tianjin Branch, the firstbanking institution in Tianjin Binhai New
Area to be awarded this certificate.

On December 24, 2021, China Emissions
Exchange (Tianjin) issued a “carbon
neutrality” certificate to the Sino-Singapore
Tianjin Eco-city Sub-branch of Tianjin
FTZ Branch, the first banking institution in
the eco-city to be awarded this certificate.

On December 27, 2021, Qingning Road
Sub-branch in Yulin, Guangxi wascertified for “carbon neutrality” and “carbon
emissions offset” by China Emissions
Exchange (Guangzhou), marking theofficial launch of the first “zero-carbon”
outlet in the Guangxi banking industry.

“Carbon peak and carbon neutrality” publicity and exhibition area of Qingning Road Sub-branch in Yulin,
Guangxi

Case: Sihui Sub-branch became the first county-level green sub-branch in
Guangdong province

Showcasing the green credit elements and achievements in the sub-branch’s lobby

2021 Special Report on Green Finance （TCFD）ICBC

On May 12, 2021, Sihui Sub-branch
in Zhaoqing City, Guangdong
Province officially became a green
sub-branch. It was the first green
sub-branch in Guangdong Province
outside the Guangzhou Pilot
Zone for Green Finance Reformand Innovation, and also the first
county-level green sub-branch inthe province. It was a contribution
to the drive for a “Beautiful Bay
Area” and Guangdong’s goal to
become the first province to peakcarbon emissions. Sihui Green Subbranch is a key county-level subbranch of the Bank, with deposits andloans ranking among the top three６３

branches. Leveraging on the Bank’s online network, the sub-branch has vigorously developed low-carbon
and environment-friendly green financial services such as internet financing, and continuously deepened theintegrated development of online and offline services in line with the “Internet Plus” trends and customers’
demand for “non-contact” services. The sub-branch took the lead in fully launching the paperless cash counter
operation services across the Bank. Individual customers can go through the entire business process throughoral communication and electronic signature without using a single piece of paper.

Case: The Banking Department of Shenzhen Branch was named one of thefirst “Green Financial Institutions in Shenzhen”
Shenzhen Branch participated in the pilot
program on specialized green institutions ofShenzhen Local Financial Supervision and
Administration. The Banking Department ofShenzhen Branch was licensed to be “Shenzhen
Green Financial Institution” in August 2021,
becoming one of the first 11 specialized green
financial institutions in Shenzhen. By the end of
the reporting period, the Banking Department of

12,075

Shenzhen Branch recorded RMB
million in balance of green credit, an increase

40.87 % over the beginning of theyear, accounting for 39.15% of Shenzhen

ofBranch’s outstanding green credit. The green
credit covered a number of green industries,
playing a remarkable model role.

The Banking Department of Shenzhen Branch was named one of the first “Green
Financial Institutions in Shenzhen”

Green operations“Online” and “paperless” officeDuring the reporting period, the Bank implemented localization of the office platform and integrated andoptimized mobile office features. Green office assessment was strengthened, with paperless meetings and training
further promoted.

56

system features
optimized, including
document processing
and travel expense
reimbursement270

810 paperless meetings held

Video conferences accounted

Mobile office DAU rose by more

for

than

5.2 million sheets of paper saved

29% of the Bank’s

total meetings

million transactions
handled in the year

50% year-on-year

06

Green Operations (Metrics and Targets)

６４“Non-contact” services
During the reporting period, the Bank adhered to the principle of “technology-driven, value creation” for a “digital,
smart and automated” transition of business operations. It continuously improved the online and intelligent levelof financial services, promoting paperless financial operations and services, energy conservation and emission
reduction by online and mobile means. With a focus on the hot areas of people’s livelihood, such as healthcare,education and transportation, the Bank built a financial ecosystem based on an open platform and a financial
eco-cloud platform. It launched 20 “financial + industrial” cloud services, including healthcare. At present, thefinancial ecosystem ranks No. 1 in the sector by types of service and number of scenarios. Efforts were made tobuild a new service model of “ICBC on the Cloud”, pursuing technology-driven upgrading of mobile banking

469

and providing a full range of online services formillion users. The supply of non-contact and online
services was further increased under a variety of scenarios, including cloud processing of transactions, screen-toscreen emergency handling, 24×7 communication and integrated services.

By the end of the reporting period, the Bank processed 98.8% of transactions
through electronic channels, equivalent to the business volume of more than
100,000 physical outlets and 1 million tellers, effectively reducing carbon
emissions from financial services.
Case: Building the “No.1 Mobile Bank” to make financial services moreconvenient
The Bank launched the innovative Personal Mobile Banking 7.0 with leading technologies such as“Smart Brain + Journey Engine”. The new version provides “Five Smart Companions” with “human+ digital” power, namely wealth companion, cloud companion, dedicated companion, bill companion
and benefits companion, so as to create a mobile banking with all-round interaction and through-thejourney companion. The Corporate Mobile Banking 4.0 was launched. This version incorporates an
inclusive finance module to meet online financing needs of small and micro businesses. It offers key
financial services such as online credit line evaluation and quick loan issuance. Video interview andfacial recognition technologies were introduced to enable online application, approval, contract signing,drawdown, payment and repayment. Personalized services were offered by launching exclusive versions(e.g. Happy Life Version 2.0, Better Home Version 2.0, SME Inclusive Finance Version 1.0, and English
Version) as well as the ICBC Salary Housekeeper payroll sections, so as to enhance dedicated services
for key customer groups such as the elderly, county-area customers, small and micro enterprises, crossborder customers and payroll customers and meet their diverse financial needs.

Launching Corporate
Mobile Banking 4.0
Launching theinnovative Personal
Mobile Banking 7.0

2021 Special Report on Green Finance （TCFD）ICBC

Creating a personalized
service system

６５“ICBC Ju Fu Tong” financial service brandIn boosting digital transition of traditional service models, the platform
was linked to nearly
governmental, industrial and consumer
platforms, serving
and200
73 G-end platforms, 26,000 B-end customers

19.6 million C-end customers.

Serving rural vitalization by extending online service channels
downwards to county areas
The Bank built a novel rural financial access system featuring online-offline
integration, with the ICBC Xingnongtong APP developed innovatively. The
Mobile Banking County-area Version 2.0 was upgraded, registering
million users as at the end of the reporting period

16.03

Online services available from28,00016,000 cloud

wealth managers and more thanoutlets,
100 remote customer service representatives

Deeper onlineoffline integration,better convenienceand availability offinancial services

Online-offline integrated services available from“intelligent + manual” and “text+ voice + video” cloud
outlets, cloud studios and cloud customer service
representatives.
Online organizations, employees and services realized
preliminarily
Interaction between mobile banking and remote banking/physical outlets were deepened. The mobile banking
feature of real-time on-screen counseling was introduced,
expanding the scope of online video examination service
and upgrading from “face-to-face” to “screen-to-screen”
interaction. Service scenarios were diversified for no-card,
no-certificate outlet services and “online order, offlinedelivery” services, replacing over
% of traditionaltransactions at relevant outlets.

90

Remote banking served intelligent transition96
97 63011

The number of “Gino” intelligent service portals has increased to, covering“incoming + outgoing”, “voice + text”, “online + offline” and “internal + external”
service scenarios. The voice and text recognition accuracy exceeded%.
million intelligent service transactions were completed, an increase of% overthe previous year.

06

Green Operations (Metrics and Targets)６６

Building a green service system for corporate customers
During the reporting period, the Bank gave full play to its intensive, intelligent and professional operations
to build a green service system for corporate customers. Through a green, low-carbon transition of banking
services, the Bank helps corporate customers pursue the dual-carbon goals with a financial service networkfeaturing efficient, intensive and cyclical use of resources.
Introducing the OFD cloud receipts for “green” financial operations of corporate customers. A fully digitalchain of corporate accounting information was introduced to reduce the conversion of accounting information
between banks and financial software. This service model has effectively solved the pain points (e.g. heavy
manual workload and inefficient handling) faced by corporate customers under traditional service models that
required manual printing, matching and recording of bank receipts. Take a conglomerate’s shared service centeras an example, the center processed about 1.5 million paper receipts a year, spending more than 1.5 million
on the printing, record-keeping and storage of receipts. After OFD cloud receipts were introduced, manual
operations have been cut substantially and each receipt only requires storage space of 18KB, down 80% from thepast, while boosting the transmission efficiency.
The “ICBC e Confirmation Service” brand was developed for “green” confirmation service. Leveraging
on Fintech solutions such as data lake, API and electronic seal, the Bank introduced the first digital bankconfirmation service brand “ICBC e Confirmation Service” in the sector. The brand has realized automated,
standardized and intensive processing of bank confirmation services. The “ICBC e Confirmation Service” is fully
traceable, allowing electronic filing of confirmations with electronic seals. The processing time has been reduced
from 10 working days to less than 48 hours. So far, the Bank has signed cooperation agreements on “ICBC e
Confirmation Service” with more than 300 accounting firms. The confirmations have proved to be accurate,
convenient and efficient in annual report audits in 2019 and 2020, effectively boosting the digital transition ofdomestic accounting firms and audited companies.

Case: ICBC (Turkey) put into operation the paperless online processing
integration project for export credit
In export credit processing in Turkey, it is necessary to obtain the basic information on the latest versionof e-commerce customs declaration and its remarks, so as to provide customers with tax credits, letterof credit processing and other operations. After ICBC (Turkey) put into operation the paperless online
processing integration project for export credit, the core banking system was connected with the system
of Turkey’s Minister of Commerce, enabling the online processing of customs declaration forms, remarks
notification and remarks inquiry, and effectively mitigating the business processing risk and improving theprocess efficiency. The project has substantially reduced the consumption of paper and printing supplies inexport credit operations, giving a boost to transition to a low-carbon economy.

Supply chain management and green procurement

Supplier access

Suppliers are
required to provide

Self-evaluation of measures taken to fulfill corporate social
responsibilities in environmental protection, energy conservationand occupational health and safety and their results
Environmental management system certification, occupational healthcertification, environmental label certification, energy efficiency
certification, social responsibility standard certification, etc.
Description of whether the products are shortlisted for energy
conservation and environmental protection

2021 Special Report on Green Finance （TCFD）ICBC

６７

Supplier
management

Suppliers are managed based on the Bank’s centralized procurement
supplier database. A sound mechanism for annual supplier review
is in place to regularly conduct comprehensive risk screening andassessment of all suppliers in the database and remove any unqualified
suppliers. The database has played a bigger role in the access, grading
and risk examination of suppliers. A graded approval and collective
review mechanism is in place to examine the access of suppliers
and strictly control the acceptance of suppliers. Open recruitment of
suppliers is carried out to ensure the onboarding of suppliers withexcellent brands, advanced technology and sound management.

Green finance training
162

During the reporting period, the Bank organizedsessions of bank-wide training on green finance in theform of face-to-face training, online training, video training, morning training and pre-shift/after-shift training,with a total of
million attendees. These training programs have delivered good results.

576.13

Promoting the philosophy of green development via management training
During the reporting period, such courses as “promoting comprehensive green transformation in economic andsocial development, pursuing modernization featuring harmonious coexistence between human and nature” were
included in the training of managers at all levels under the theme of green development. These training courses
have enhanced the management’s understanding of green development and promoted bank-side implementationof the green development philosophy and sustainable development strategy.

Interpreting policies on green credit at home and abroad
During the reporting period, seven training sessions on green credit (four sessions domestically and threeoverseas) were provided both online and offline, and the courses on “interpretation of green credit policies” wereadded to 27 training sessions, ensuring compliant and efficient development of the Bank’s green credit.

Training on green transition against the backdrop of carbon neutrality
During the reporting period, face-to-face, video, internet, dedicated lectures and other ways were adopted, focusing
on management at all levels, and 19 training sessions on the development and transition of green finance under the
background of carbon neutrality were held to explore the green development strategies and pathways of commercial
banks and convey the development philosophy of green finance business under the new situation.

Climate risk training
Climate risk training was provided for the heads and core staff of the risk management departments at tier-one(or directly managed) branches, overseas institutions and comprehensive subsidiaries. Such training helped
employees better understand the background and basic concepts of climate risk, how climate risk affects banks
and the climate risk management methods and practices at home and abroad.

06

Green Operations (Metrics and Targets)６８Green charity events
During the reporting period, the Bank organized a total of

6,425 green youth volunteer events. A total of

33,000 young volunteers provided 26,000 hours of volunteer services.

“Beautiful China - Young ICBC in Action” Season 4
The Bank carried out public welfare plogging for the fourth consecutive year, including waste sorting
and anti-pollution events, to disseminate the philosophy of ecological conservation and advocate
green lifestyle. These events covered more than 200 cities and more than 300 universities in 32
provinces or equivalents. More than 37,000 young volunteers participated in these events. In 2021,
under the theme of “protecting the source of three rivers”, young volunteers were organized to takepart in environmental protection events through garbage-collecting jogging, environmental protection
lecturing and public welfare donations. More than 8,000 young volunteers from the Bank
participated in the events. A total of RMB90,000 was raised from over 5,000 people. These
vents were broadly covered by the media, including People.cn and chinanews.com.

Events covering
provinces32
or equivalentadministrative area

2021 Special Report on Green Finance （TCFD）ICBC

More than

200cities

300

Over
universities

37,000Overyoung volunteers
participated in
the events

６９

ICBC (Asia): Carrying out the “Plantation Enrichment Plan”
In November 2021, the third phase of plantation protection work was successfully carried out underthe “ICBC (Asia) Plantation Enrichment Project” jointly launched with The Hong Kong Agriculture,
Fisheries and Conservation Department and The Green Earth. More than 25 members of the ICBC
(Asia) Tree Planting Volunteer Team went to the Clear Water Bay Country Park to take good careof the saplings planted by ICBC (Asia) Volunteer Team earlier. The event marked ICBC (Asia)’s
strive to enhance the ecological value and enrich biodiversity of Hong Kong’s forest areas, and boost
sustainability of the ecosystem in Hong Kong.

ICBC (Peru): Cleaning coastlines to fulfill social responsibility
ICBC (Peru) organized employees to pick up garbage along the green coast of Lima, the capital ofPeru, to clean the beach, fulfill social responsibility, advocate environmental protection and protect themarine ecosystem. A total of 25 employees participated in this event, removing 15 big bags of garbage
from the 1,000-meter-long beach.

06

Green Operations (Metrics and Targets)

７０

ICBC Credit Suisse: Investor training on green investment
As a response to regulators’ call for stronger investor education and protection, ICBC Credit Suisse
created a website to educate investors on green investment under the national policy of carbon
peak and carbon neutrality. Through the “online + offline” integrated development model, the bankprovided investors with guidance on green industry policies and green fund investments.

ICBC of China Hangzhou Institute of Financial Studies：Plogging for abeautiful Hangzhou
The “Civilization Pioneer in Action” event was organized, a plogging event for a beautiful Hangzhou.
The “World Environment Day” publicity event was carried out with the video entitled “Nonexhaustive Illustration of Wild Animals in Sanjiangyuan” produced to call for protecting the Yellow
River, China’s “Mother River”. The Bank participated in the Earth Hour campaign and generated an
initiative. The “Collecting Green Energy, Protecting Lucid Waters and Lush Mountains” annual cloudtree planting event was carried out to make positive changes for environmental protection.

2021 Special Report on Green Finance （TCFD）ICBC

７１

Forward-looking Research

The Bank attaches great importance to forward-looking researchon green finance. In 2021, ICBC conducted in-depth research on
topics such as low-carbon transition of commercial banks, financial
support for carbon market development, business promotion in pilot
zones for green finance reform and innovation, carbon-reduction
supporting tool and ESG rating, shaping a sound mechanism forresearches to serve decision making and business development.

07

Forward-looking Research７２

Green finance research findings serve decision-making
and transition
Since China announced the dual-carbon goals, the Bank has conducted in-depth research on green finance thatyielded remarkable results in policy tracking, business support, standard guidance and brand awareness.
The Modern Finance Research Institute of the Bank coordinates Group-wide efforts to strengthen research on
national policies, industry trends and banking business under the dual-carbon goals, shaping a good atmospherefor green research supportive of decision-making and green development. Such research has provided effective
intellectual support for the transition to green finance, including green bonds, green funds, green wealthmanagement, green leasing, green indices, carbon emissions-related trading products and green internet financeplatform.

Research serves decision
making and businessdevelopment

Greeninternet
finance
platform
Carbonemissionsrelated
trading
products

Green
bonds

Green
funds

Intellectual
supportGreen
indicesGreen
wealthmanagement

Greenleasing

Research on key issues regarding green finance development
In-depth research reports were prepared with a focus on key issues regarding green finance development. Policy
recommendations were made on key issues such as ESG rating, carbon-neutrality banking, construction of pilot
zones for green finance reform and financial services for carbon market. These policy recommendations are
implemented with the approval of the Party Committee of the Head Office. Laser-focused on financial support
for the dual-carbon goals, the Bank has completed the Research on Green and Low Carbon Transition of ICBC
under the Background of Carbon Neutrality, a key research project of the Bank, and the Research on Green
Finance Development Supportive of the Dual-carbon Goals, a research project of PBC and FSDC.

In-depth application of “CSI 180 ESG Index”
The index went online in 2018. As the first ESG-themed stock index created by a domestic commercial bank, it
has outperformed SSE 180 in either short-term or medium-to-long term return. It is also more resilient to market
declines than mainstream indexes and similar indexes. During the reporting period, ICBC Credit Suisse launched
an ETF linked to this index, the first approved ESG.ETF product and a successful practice of innovation in
research-business interaction.

2021 Special Report on Green Finance （TCFD）ICBC

７３

Fruitful cooperative researchCompilation of Casebook of BRBR Green Finance Practice
The BRBR14 Secretariat compiled the Casebook from the dimensions of products and management (e.g. green
bonds, green loans, product innovation and in-house governance) based on the cases solicitated from BRBR
members and publicly available information. The Casebook is intended to promote industry champions,encourage innovation, provide reference for BRBR members of different scales, continuously strengthen
capability building on green finance and jointly contribute financial wisdoms and strengths to make green the
background color of the Belt and Road Initiative. The framework of the Casebook of BRBR Green Finance
Practice was released on the Parallel Session on “Green Finance Facilitates Sustainable Development” of the
Hongqiao International Economic Forum at the Fourth China International Import Expo (CIIE).

Publishing the abstract of the Report on Practices of Chinese and EuropeanEnterprises in Peak Carbon Dioxide Emissions and Carbon Neutrality
This report is a research result of the Bank relying on the China-Europe Business Council (CEBC)15. It
summarized the good practices of Chinese and European enterprises on the way to carbon peak and carbon
neutrality, outlined the challenges faced in pursuing the dual-carbon goals, put forward the “China-Europe Green
Bridge” action plan and proposed a feasible pathway to sustainable development.

Participating in formulation of standards
Under the PBC guidance, the Bank took the lead in formulating the Guidelines for Environmental Information
Disclosure by Financial Institutions. The guidelines were officially released by PBC in July 2021 as the firstrecommended industry standard for environmental information disclosure of financial institutions in China. At
present, it has been piloted in nine areas across six provinces and the Guangdong-Hong Kong-Macao Greater
Bay Area.

Column Hunan Branch Successfully Completed the PBC Pilot
Program on Environmental Information Disclosure

Hunan Branch became the only branch of a state-owned commercial bank designated by PBC Changsha
Central Sub-branch to take the lead in carrying out the pilot program on environmental information
disclosure of financial institutions. The 2020 Annual Report on Environmental Information of Financial
Institutions was prepared based on identification and assessment of the environmental opportunities
and risks of Hunan Branch in 2020 in terms of governance structure, policies and procedures,
innovation in products and services, environmental risk management process, impact of environmental
factors, environmental impact of investing and financing activities, environmental impact of operating
activities, data collation and protection and green finance innovation and research results.

15
The China-Europe Business Council (CEBC) was initiated by ICBC with leading enterprises from China and Europe and officially launched on April 29, 2021. and participated in byleading enterprises from China and Europe. It aims to upgrade the China-Europe economic and trade relations through the cooperation between Chinese and European enterprises.

07

Forward-looking Research

７４Compiling the green finance development report series
The Bank and Renmin University of China jointly led the compilation of 2021 China Green Finance
Development Research Report. It was the fifth year that the Bank prepared the report. This report represents
common wisdoms of regulators, industries and academia. It not only reviews the latest developments in green
finance across China, but also provides insights into hot and focal issues, providing a valuable reference forpolicy makers, financial institutions, enterprises and academia. The Bank also participated in the preparation of
PBC’s annual report on green finance development for 2021, the fourth consecutive year of preparing the report.

Research on environmental information disclosure of financial institutions
The Bank’s Modern Finance Research Institute and the Institute of Finance and Sustainability (IFS) jointly issued
the Research Report on Environmental Information Disclosure of Financial Institutions under the Dualcarbon Goals. Based on analysis of the evolution and trend of domestic and foreign policies on environmental
disclosure of financial institutions and China’s practices in environmental disclosure of financial institutions, thisreport focuses on the key issues and difficulties in financial institutions’ environmental disclosure, recommends
the approaches and methods for quantitative measurement and analysis of environmental disclosure of Chinese
financial institutions and proposes next-step countermeasures in this regard.

Proactive research on climate risks
The Bank has incorporated climate risk into the enterprise risk management system. It carried out climate risk
identification, assessment, monitoring and control in a proactive manner and conducted climate risk stress tests
in an orderly manner under regulatory guidance.
Solid climate risk analysis and stress test
research

Participation in TCFD global financial
governance

Since 2015, the research results have covered a wide range
of industries and fields such as thermal power, cement, steel,electrolytic aluminum, water risk and carbon trading. They
have been published on Network for Greening the Financial
System (NGFS), G20 and other platforms. The Bank led
some GFC institutions in compiling and publishing thefirst professional book on environmental and climate risk
management in China, namely, Environmental Risk Analysis
by Financial Institutions and Case Study, and publishedfive research reports on stress testing of environmental andclimate risks.

The Bank is the first Chinese financial institution to sign the
TCFD recommendation. As an expert member of TCFD, theBank participates in TCFD global financial governance. In
2021, the Bank attended four general meetings of TCFD andgave suggestions on refining important documents, including
TCFD’s Guidance on Metrics, Targets, and Transition
Plans and Portfolio Alignment Techniques. The Bank led
more than 10 domestic banks in completing the TCFD
questionnaire, causing TCFD international rules to consider
China’s national conditions.

Translating and proofreading five TCFD
deliverables documents

Performing duties as leader of the Banking
Expert Group

Including TCFD Recommendations on Climate-Related
Financial Disclosures, Guidance on Risk Management
Integration and Disclosure, Guidance on Scenario Analysis
for Non-Financial Companies, The Use of Scenario Analysis
in Disclosure of Climate-related Risks and Opportunities
and 2021 Status Report. The document, “translated by
ICBC Working Group on Climate Risks”, was published on
the TCFD website. It provides Chinese institutions with a
TCFD framework for reference in strengthening climate risk
management and making relevant disclosures.

In June 2021, the Bank and the China Banking Association(CBA) jointly established a Banking Expert Group on
Carbon Peak and Carbon Neutrality, led by ICBC. The
Bank worked with CBA to formulate important documents,
such as the Management Measures of the Expert Group,
the Five-Year Work Plan and the Joint Initiative. The Bank
led compilation of the Report on the Practices of Banking
Support for Carbon Peak and Carbon Neutrality Goals withnearly 130,000 Chinese characters. A climate risk database
covering hundreds of documents was created.

2021 Special Report on Green Finance （TCFD）ICBC

７５International Cooperation

Relying on international green finance organizations and platforms,
the Bank participates in sustainability-related international
governance and formulation of standards, contributing ICBC’s
strength to green finance and sustainable development.

08

International Cooperation

７６

The Bank engages with global financial institutions and international platforms. Under the guidancefrom regulatory authorities, The Bank initiated the Belt and Road Bankers Roundtabel (BRBR) andjoined the Green Investment Principles (GIP) for the Belt and Road, the United Nations Environment
Program Finance Initiative (UNEP FI) and the United Nations Principles for Responsible Banking(PRB), taking an active part in international exchanges and cooperation and capacity building in green
finance. As the deputy director of the Green Finance Committee of China Society for Finance andBanking, the Bank participates in various domestic green finance conferences and academic exchanges
to share its research findings and experience in business development.

Hosting the Global Systemically Important Financial Institutions Meeting 2021,
promoting joint release of the Beijing Initiative for Climate-friendly Banks
In October 2021, the Bank hosted
the Global Systemically ImportantFinancial Institutions Meeting 2021,
with the topic of “Promoting ClimateFriendly, Advancing Green Finance andSustainable Development”. Chen Siqing,
Chairman of the Bank, attended andaddressed the conference. The parties
to the conference jointly released the
Beijing Initiative for Climate-friendly
Banks, first international initiative toaddress climate change led and proposedby Chinese commercial organizations.

On October 21, 2021, Chairman Chen Siqing and President Liao Lin of the Bank attended the Global Systemically Important Financial Institutions Meeting 2021.

2021 Special Report on Green Finance （TCFD）ICBC

７７Participating in the Ecological Civilization Forum of UN Biodiversity Conference, signing the“Ecological Civilization: Building a Shared Future forAll Life on Earth” initiative
On October 15, 2021,
President Liao Lin of the
Bank attended the Ecological
Civilization Forum at the 15th
meeting of the Conference of
the Parties (COP 15) to theConvention on Biological
Diversity in Kunming,and delivered a closing
speech. Liao provided threesuggestions on financial
support for biodiversity
conservation: First, financial
services should be used
to vitalize market players.
Second, financial services
On October 15, 2021, President Liao Lin of the Bank attended the Ecological Civilization Forum at the 15th meeting of the Conference
should empower economicof the Parties (COP 15) to the Convention on Biological Diversity in Kunming, Yunnan.
rebalancing. Biodiversity
conservation should be incorporated into financial institutions’ own development strategy, thereby guiding
more funds toward eco-friendly projects and helping build a green and low-carbon system of circular
economy. Third, financial cooperation should promote global environmental governance. ICBC is readyto work with the global financial peers to pioneer the practicing of the green development philosophy,
encourage eco-friendly flows of financial resources, take proactive and well-targeted actions and make new
and greater contributions to building a shared future for all life on earth and a cleaner and beautiful world.

Co-hosting the 2021 annual conferenceof the Green Finance Committee
On September 25, 2021, the Bank co-hosted the 2021
annual conference of the Green Finance Committeeof China Society for Finance and Banking. It was
the seventh annual conference of the Green FinanceCommittee. Wang Jingwu, Senior Executive Vice
President of the Bank, delivered a speech at the
opening ceremony, stressing that the efforts topursue green finance development should follow the
principles of serving the real economy, technologicalempowerment and putting people at the center. Banking
institutions should, on the one hand, expand the scale
September 25, 2021, Wang Jingwu, Senior Executive Vice President of the Bank,of green financing to support the development of low- On
attended and addressed the 2021 annual conference of the Green Finance Committee ofcarbon industries and technological upgrade, energy China Society for Finance and Banking.
conservation and carbon emissions reduction of
traditional industries, and keep environmental risks
under control on the other hand. In addition, advanced technologies should be used to make financial services
more targeted and improve the ability to manage environmental risks.

08

International Cooperation

７８

Co-hosting the Green Finance Forum of Eco Forum Global Guiyang 2021
On July 11, 2021, the Bank and Guizhou Provincial People’s Government jointly hosted the Green Finance
Forum of Eco Forum Global Guiyang 2021 under the theme of “green finance helping to peak CO2 emissions
and achieve carbon neutrality”. Senior Executive Vice President Xu Shouben attended and addressed theforum. Experts, scholars andindustry insiders from government
agencies, universities and financial
institutions were invited to discuss
how to implement the five-pronged
development philosophy ofinnovation, coordination, greenness,
openness and sharing in the financial
sector and support the high-quality
development of green finance.
The forum consisted of a summit
meeting and two sub-forums, namely,“Financial Support for Integrated
Development of Green Healthcare”
and “Paths of Finance Supporting
L o w - c a r b o n Tr a n s f o r m a t i o n o f
Economy”.
On July 11, 2021, Xu Shouben, Senior Executive Vice President of the Bank, attended and addressed the Green
Finance Forum of ECO Forum Global Guiyang 2021.

Participating in the sideline dialogue series on green finance related to the 26th meetingof the Conference of the Parties (COP 26) to the United Nations Framework Convention
on Climate Change (UNFCCC) hosted by the City of London
Senior Executive Vice President Zhang Weiwu attended the APAC Green Tea Dialogue by video and had discussions
with 10 financial institutions in Asia-pacific regions on the global role of financial institutions in the transition to netzero carbon emissions under the themes of “Route to Net Zero” and “Opportunities in Carbon Market”.

In July 2021, Zhang Weiwu, Senior Executive Vice President of the Bank, took part in green finance discussions by video link.

2021 Special Report on Green Finance （TCFD）ICBC

７９

Attending the 18th Global Annual Conference of the International Finance
Forum (IFF)
On December 5, 2021, Zhou Yueqiu, Chief Economist of the Bank, attended the 18th IFF Global Annual
Conference. The conference was co-sponsored by China Council for the Promotion of International Trade(CCPIT), Guangzhou Municipal People’s Government and the International Finance Forum (IFF). Distinguishedguests from financial institutions
and international organizations in
China, the United States and Japanattended the conference. Zhou
Yueqiu delivered a speech at the
global carbon neutrality summit of
the annual conference. He madean in-depth analysis on the “newgoal”, “new energy”, “new market”
and “new partners”, analyzed the
responsibilities and opportunities
of financial institutions under the
background of global cooperation toachieve carbon neutrality goals andproposed to contribute more financial
wisdoms.
On December 5, 2021, Zhou Yueqiu, Chief Economist of the Bank, attended the 18th IFF Global Annual Conference.

Hosting the Parallel Session on “Green Finance Facilitates Sustainable
Development” of the Hongqiao International Economic Forum, fully
leveraging on the influence of CIIE
During the Fourth China International Import Expo (CIIE), the Bank successfully hosted the parallel session on“Green Finance Facilitates Sustainable Development” of the Hongqiao International Economic Forum. The event
was attended by representatives from the government, financial institutions, non-financial enterprises, academic
research institutes and international multilateral organizations from 23 countries and regions. Attendants had indepth exchanges on topics such as promoting carbon peak and carbon neutrality, enterprises’ demand for green
finance in their low-carbon transition, carbon market construction, and international cooperation on green financealong the Belt and Road.

Serving China-Europe economic and trade relations, boosting the bilateral
cooperation in “carbon peak and carbon neutrality” work
On April 29, 2021, amid the broad opportunities of China-Europe cooperation, the Bank established ChinaEurope Business Council (CEBC) jointly with outstanding Chinese and European enterprises. A working groupon sustainable development was set up within the CEBC. CEBC follows the principles of openness, greenness,
inclusiveness, mutual benefit and win-win cooperation. It aims to upgrade the China-Europe economic and traderelations through cooperation between Chinese and European enterprises, and make new contributions to thedevelopment of China-EU relations. During the 4th CIIE, the Bank successfully held the China-Europe CEO
Summit for the third year in a row, and released the abstract of the Report on Practices of Chinese and EuropeanEnterprises in Peak Carbon Dioxide Emissions and Carbon Neutrality.

08

International Cooperation

８０

Column Remarkable Results of Joint Efforts toPromote the UK-China Climate andEnvironmental Information Disclosure Pilot
Under the support and guidance from PBC and the joint leadership of the Green Finance Committeeof China Society for Finance and Banking and the City of London, ICBC and the UN Principles for
Responsible Investment (PRI) as lead bodies jointly advanced the pilot program.
Since December 2017, the Bank has made unremitting explorations and led China’s pilot
financial institutions in drawing upon international best practices and aligning with international
trends. The Bank has developed the pathway to the climate and environmental disclosures pilot
suitable for China’s national conditions, including its development stage and characteristics.
The Action Plan for the Pilot Program on China-UK Environmental Information Disclosure of
Financial Institutions was formulated innovatively, setting out a three-stage action plan for thepilot. On that basis, the China-UK Financial Institutions Environmental Information Disclosure
Targets Framework (China) was developed to clarify the definitions and contents (qualitativeand quantitative metrics) and forms of environmental information disclosure. By the end of
May 2021, the number of Chinese and UK pilot institutions (including financial institutions,city representatives and observers) had increased from the original 10 to 2016, covering banking,asset management, insurance and securities sectors.
◎

Capacity building events for environmental information disclosures ofChinese and UK financial institutions
Date

Meeting

Meeting agenda

April 2021

China Carbon Neutrality
Week

The online meeting discussed three major topics: policy andregulatory developments for achieving carbon neutrality goals,
climate-related risk management and information disclosure,investor stewardship management and participation of listedcompanies, preparing for and playing an active role in the global
and China’s transition to carbon neutrality.

June 2021

Workshop on
Decarbonization
and Climate-related
Disclosure in China
Workshop on the Latest
Analysis of Pathways to
Carbon Neutrality and Its
Impact on Investors andChina’s Coal Industry

December 2021

International Workshop
on Green Finance 2021

16

Discussion on the climate-related financial risk disclosures in
China’s low-carbon transition and rapid development.
Introduction to the latest analysis on net-zero emissions in China
and worldwide, e.g. how China’s carbon market supports thedual-carbon goals, and the impact of the latest scenario forecasts
on global climate policies on investors and net-zero target.
Focusing on the G20 consensus on sustainable financedevelopment, the meeting introduced the environmental
disclosure standards of Chinese financial institutions, the current
situation of TCFD, China’s ESG stewardship management,
banks’ ESG practices and development recommendations andprogress of green technological platforms. Meanwhile, theworking group on the UK-China Climate and Environmental
Information Disclosure Pilot also held a meeting.

UK-China Climate and Environmental Information Disclosure Pilot institutions (including financial institutions, city representatives and observers): ICBC, Industrial Bank, Bank of
Jiangsu, Bank of Huzhou, E Fund, China Asset Management, Ping An Group, PICC P&C Insurance, AVIC Trust, Bank of China, Jiangxi Bank, Chongqing Rural Commercial Bank, Bank ofJiujiang, Haitong International, China Construction Bank and the Leading Group on the Huzhou Pilot Zone for Green Finance Reform and Innovation (16 from China) and HSBC, AVIVA,HERMES Investment Management and Brunel Pension (four from the UK).

2021 Special Report on Green Finance （TCFD）ICBC

８１

Column Fostering Green Consensus within BRBR
The Belt and Road Bankers Roundtable (BRBR) is an international financial cooperation mechanism
initiated by the Bank under the guidance of the PBC during the first Belt and Road Forum forInternational Cooperation in 2017. During the reporting period, the Bank as the BRBR Secretariat
stepped up efforts to build a green BRBR. The Working Group on Green Finance was set up. Based on
the mechanism, the Bank kept fostering the consensus on green development by launching initiatives,
issuing BRBR green bonds, releasing reports, and holding forums and training series. These moves haveboosted information exchange and capacity building in green finance. The Bank successively held highlevel events as the BRBR Green Finance Webinar, the parallel session on “Green Finance Facilitates
Sustainable Development” of the Fourth Hongqiao International Economic Forum and the forum themed“Empowering the ESG Transformation - the Role of Technologies” at the Expo 2020, Dubai, UAE. It
also held BRBR Green Finance Training series including three workshops on green bonds issuance, green
credit and carbon finance respectively.

The first plenary meeting of the BRBR Working Group on Green Finance

08

International Cooperation

８２

BRBR Green Finance Webinar was held for the
first time. President Liao Lin and Senior Executive
Vice President Zhang Weiwu of the Bank andrepresentatives from PBC, the Green FinanceCommittee and the Institute of International
Finance delivered speeches at the event. Representatives from nearly 40 member institutions attended
the meeting. The meeting reached broad consensus
on promoting green recovery in the post-epidemicera, increasing green finance offering, pushing
forward the transition of green financial services
and supporting the sustainable economic and social
development along the Belt and Road.
During the second China-Africa Economic andTrade Expo (CAETE), the Bank and the Standard
Bank Group jointly hosted the China-Africa
Financial Cooperation Dialogue. The BRBR
Initiative on Promoting the High-Quality Development in Africa was released at the event. The
initiative called for adhereing to the UN Sustainable Development Goals, and the goals set by the
UN Framework Convention on Climate Change
and Paris Agreement, as well as the Green
Investment Principle (GIP) for the Belt and Road,
strengthening support for energy conservation,
environmental protection, green energy, green
transportation and green infrastructure throughextensive and multi-level cooperation, fulfillingsocial responsibilities to increase local jobs,
promoting low-carbon transition progressively andmaking contributions to the high-quality development and green development of African countries.

The Bank successfully held the “ICBC Day” of the
China Pavilion at the Expo 2020 in Dubai under thetheme of “Together, for a Shared Future”. The
BRBR Secretariat and Dubai (DIFC) Branch of the
Bank jointly held the BRBR thematic forum during
the event. Discussions were made on “empowering
the ESG transition - the role of technologies”. Good
practices were shared on how to give full play to
Fintech in empowering economic and social
sustainability as well as the business transition andrisk management of the financial service sector.

April
2021

July
2021

September
2021

November
2021

December
2021

Second halfof 20212021 Special Report on Green Finance （TCFD）ICBC

The BRBR Working Group on Green Finance
was formally established. The working group ischaired by Crédit Agricole CIB and also joinedby nine BRBR members from seven countries indifferent stages of development.

The Bank hosted the parallel session on “Green
Finance Facilitates Sustainable Development”
of the Hongqiao International Economic Forum
under the support of BRBR. During the event,the Bank unveiled a number of green deliverables, including the BRBR “carbon neutrality”
themed green bonds, the Belt and Road Green
Finance (Investment) Index Research (2021),
the framework of Casebook of BRBR Green
Finance Practice, the ChinaBond-ICBC Green
Bond Index and the memorandum of understanding on tripartite cross-border cooperation between
ICBC, Shanghai Clearing House and China Emissions
Exchange (Guangzhou), of which two deliverables were contributed by the BRBR.

The BRBR Green Finance Traning Series
invited experts and practitioners from
regulators, financial institutions, multilateraldevelopment banks, advisory body, and external
evaluation providers are invited to walk theaudience through regulatory environment,
market development and offering, standards &assurances and risk management measuresacross the fields of green bonds issuance, green
loans and carbon finance both in China andinternationally. The workshops were welcomedby BRBR members and observers, China-Europe Business Council (CEBC) members,
prospective BRBR members, and the employees
from the Head Office as well as domestic andoverseas institutions of the Bank with nearly
1,000 person/time from more than 50 countries
and regions attended online and offline. To
strengthen the in-house green capacity building,the workshops have been uploaded to the ICBC
Research Center, receiving more than 10,000
hits so far. More than 3,000 employees havecompleted their study.

８３Column ICBC’s Broad Participation in and GreenContribution
to International Multilateral Cooperation
Promoting discussions and cooperation on issues related to green financeissues under the framework of BRICS Business Council
In August 2021, the Bank, together with the BRICS Business Council (BBC), adopted the Joint Statement
on Business Co-operation Towards Achieving Sustainable Development Goals. According to the United
Nations’ 2030 Agenda for Sustainable Development, the joint statement holds that the business community
should strengthen cooperation in economic development, trade, investment, innovation, research andcreation of sustainable development, calling on BRICS leaders to jointly achieve sustainable development
goals. At the same time, as the leader of the BBC Working Group on Financial Services, the Bank actively
promoted the discussions and cooperation in issues related to green finance within the working group.

Participating in the Green Investment
Principles (GIP) for the Belt and Road

The Bank won GIP’s “2021 Best Capacity
Building Award”

During the reporting period, BRBR Secretariat, which sits in the
Bank, joined the GIP Steering Committee. The Bank promoted GIP
within BRBR and attended the GIP annual conference and GFLP,
a green finance capacity building project in Southeast Asia.
As a Co-chair of the GIP Working Group I on Environmental
and Climate Risk Assessment (GIP WG1), the Bank led somemembers in carrying out rounds of optimization and dozens of
in-depth discussions over two years and successfully developed
CERAT, an online tool for environmental and climate risk
management of the Belt and Road Initiative projects. It is ascientific instrument for enterprises and financial institutions tomeasure and manage environmental and climate risks of projects.
The Bank won the GIP “2021 Best Capacity Building Award”
for its above green finance contributions.

CERAT, an online tool for environmental and climate risk managementof the Belt and Road Initiative projects, enables measurement ofcarbon emissions, pollutants and water risks of four project categories,
namely, construction, transportation, industry and electricity.

Improving its own ESG performance, implementing the UN Principles for
Responsible Banking (PRB)
The Bank is the only Chinese financial institution that joined the PRB Banking Board. It has
actively aligned itself with PRB requirements, strengthened the publicity of the PRB andextensively participated in discussions on issues such as tackling climate change and fulfillingsocial responsibilities. As a representative of Chinese banks, the Bank joined the working groupon PRB framework improvement, reviewed the applicability of the principles together with PRB
global financial partners and improved the framework according to the latest trends in sustainable
development and biodiversity commitments. Under the guidance of the new framework, a biennial
PRB Collective Progress Report was shaped.

08

International Cooperation

８４

Awards2021 Special Report on Green Finance （TCFD）ICBC

８５◇ International Finance Forum (IFF)
Institution of the Year, “2021 Global Green Finance Awards”◇ Xinhua News Agency“Model Case of Green Finance Practices” in the financial
industry in the first year of the 14th Five-Year Plan

◇ UN Global Compact Network China“Best Corporate Practices for Achieving the Sustainable
Development Goals 2021”- Eco-Environment Protection and Concern about Climate
Change◇ Green Investment Principles (GIP) for the Belt and Road
“2021 Best Capacity Building Award”

09

Awards８６

Appendices

●
●
●
●

2021 Special Report on Green Finance （TCFD）ICBC

TCFD Recommendations Index
PRB Index
Notes to the Report
Feedback Form

８７

TCFD Recommendations Index◆ Governance
Page

Contenta) The Board of Directors’ monitoring on climate-related risks and opportunities
6-9, 11-12b) Describe the responsibilities of the Management for assessing and managing climate-related risks
10-12
and opportunities												◆ Strategy
Page

Content25a) Describe the short, medium and long-term climate-related risks and opportunities identified byorganizations			b) Describe the impact of climate-related risks and opportunities on business, strategy and finance oforganizationsc) Describe the strategic adaptability of organizations, taking into account different climate-related
scenarios (including scenarios with a temperature of 2°C or lower)

14-17, 25
26◆ Risk management
Page

Contenta) The process of identifying and assessing climate-related risks by organizations and institutionsb) The process of managing climate-related risks by organizations and institutionsc) Describe how to integrate the process of identification, assessment and management of climaterelated risks with the overall risk management of organizations and institutions

19-21, 23-26
19-21, 23-26
23-26◆ Metrics and Targets
Page

Contenta) Metrics used by organizations in assessment of climate-related risks and opportunities according totheir strategies and risk management processesb) Direct (Scope 1) and indirect (Scope 2) GHG emissions. Where necessary, describe other indirect
GHG emissions (Scope 3) (if applicable) and related risksc) Targets used by organizations in managing climate-related risks and opportunities and thefulfillment of such targets 			25
30-31, 57 - 59
15-16

10

Appendices８８

Principles for Responsible Banking (PRB) Index

1

Principle

Consistency

We will ensure that our business strategy is consistent with and contributes to the
Sustainable Development Goals (SDGs) of the United Nations, the Paris Climate
Agreement and individual needs and social goals set out in relevant national andregional frameworks.

ContentsPage

1.1 (Outline) Describe your business model, including the main customer groups you serve,
the types of main products and services you provide, the main industries/technologies/
activities to which you provide financing, and the geographical areas you mainly operate orprovide financing.

28-53

1.2 Describe how your current strategy /plan adjustment strategy is consistent with andcontributes to the Sustainable Development Goals (SDGs) of the United Nations, the Paris
Climate Agreement and social goals set out in relevant national and regional frameworks.

2-4, 14- 17

Principle2

We will continue to enhance the positive influence, while reducing the negative
influence of our business activities, products and services on human andenvironment and managing the related risks. To this end, we will set and makepublic goals for the fields that have the biggest influence on us.

Influence andobjective setting
ContentsPage

2.1 Influence analysis

23-26

2.2 Objective setting

14-15

2.3 Objective implementation and monitoring plan

15-17

2.4 Objective implementation progress

15-17

3

Principle

Customers

Based on the principle of responsibility, we cooperate with customers, encourage
their sustainable practice, promote the development of economic activities, andcreate common prosperity for current and future generations.

Contents
3.1 Outline the policies and practices that your bank has implemented and/or planned to
implement in order to promote the responsible relationship with customers. Outline the plans
and measures that have been implemented (and/or to be implemented), the scale and theresults (in any possible circumstance).

2021 Special Report on Green Finance （TCFD）ICBC

Page

19-21

８９

3.2 Describe how your bank cooperates or plans to cooperate with customers, so as toencourage their sustainable practices and promote sustainable development of economic
activities. The information disclosed shall include the action plan that has been implemented
or to be implemented, the products and services developed, and the effect (in possible
circumstances).

Principle

4

19-21

We will actively and responsibly consult, interact and cooperate with stakeholders
to achieve social goals.

Stakeholders
Contents
4.1 Describe which stakeholders (or the group/type of stakeholders) your bank has consulted,
communicated or cooperated with in order to improve your influence. Outline how your bankidentifies stakeholders, and the issues that your bank has solved and the achievements yourbank has made.

5

Principle

Page12, 19-21, 64

We will fulfill our commitment to these principles through effective corporate
governance and a responsible banking culture.

Corporate governanceand banking culture
ContentsPage

5.1 Describe relevant governance structure, policies and processes that your bank has
implemented or planned to implement in order to manage the substantial (potential) positive
and negative influence and effectively fulfill the Principles.

6-12, 19-21, 23- 26

5.2 Describe the initiatives and measures that your bank has implemented or planned to
implement in order to cultivate a responsible banking culture among employees. Outline
the inclusion of relevant factors in the related capacity building, remuneration structure andperformance management, as well as leader communication.

64-68, 70- 72

5.3 Governance structure for implementation of the Principles for Responsible Banking

Principle

6

Transparency andresponsibility

6-12

We will regularly evaluate the implementation of these principles by each of ourinstitutions and all signing banks, publicly disclose our positive and negative influenceand our contribution to social goals, and be responsible for the relevant influence.
ContentsPage

2-4, 81

6.1 Implementation progress of the Principles for Responsible Banking
Note: Please refer to the Bank’s 2021 Corporate Social Responsibility (ESG)Report for more details.
http://v.icbc.com.cn/userfiles/Resources/ICBCLTD/download/2022/2021CSR.pdf

10

Appendices

９０

Notes to the Report

Scope
Organization scope: This report covers the whole Group, focusing on the Industrial and Commercial Bank of
China Limited.
Time frame: January 1 to December 31, 2021, and some contents are beyond this time frame.

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

Data
Data used in this report is mainly from 2021, most of which is excerpted from the statistical data of the Bank’s
internal systems and branches. Unless otherwise provided, figures involved in this report shall be in RMB.

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

2021 Special Report on Green Finance （TCFD）ICBC

９１

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

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

10

AppendicesAll rights reserved. Reproduction without permission is prohibited.

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