2022

Special Report on Green Finance (TCFD)
Industrial and Commercial Bank of China Limited

Contents
Forward

2

Part

I

Governance

4

Part

II

Strategy

13

Part III

Policies andProcedures

19Part IV

Risk Management

23

Part

V

Green Investment
and Financing

27

Part VI

Low-carbon
Operation at ICBC

52

Part VII

Prospective Study

61

Part VIII

Cooperation andCommunication

66

Part IX

Awards and Honors

73

Part

Appendices75

X

Forward
Green development is a development that conforms to the nature and promotes the
harmonious coexistence between people and nature, a development that achieves
the maximum economic and social benefits with the minimum cost of resources andenvironment, and a high-quality and sustainable development, which has become theconsensus of all countries. China has set “harmonious coexistence between people andnature” as an important feature and essential requirement of Chinese path to modernization.
Green has become the distinctive feature of China in the new era. The philosophy that“lucid waters and lush mountains are invaluable assets” has been practically implemented,
with the steady promotion of carbon peak and carbon neutrality. China is undergoing acomprehensive green transformation in terms of economic and social development. Great
strides have been made in building a beautiful China.
Green finance plays a key role in serving green transformation and helping to achieve carbon
peak and carbon neutrality. At present, China’s green finance has been accelerated in an allround way, the development foundation has been constantly consolidated, policies and rules
have been gradually improved, and the development of standards and systems has been
continuously promoted. The green financial market continues to expand, the green financial
products and services have been creatively developed, and the scale of green credit andgreen bonds has ranked among the top in the world. The prevention and control of climate
and environmental risks has continued to deepen, and relevant research such as stresstesting has been carried out in an orderly manner; international exchanges and cooperationin green finance have been deepened, and China has deeply participated in the formulationof international standards, and made a contribution to climate governance with Chinese
approach.
As an active advocate and practitioner of green finance standards and responsible investment
principles, Industrial and Commercial Bank of China (hereinafter referred to as “the Bank”)
has always been guided by Xi Jinping’s thought on ecological civilization. The Bank
insists on the systematic concept through the whole work process of “carbon peak andcarbon neutrality”, fully, accurately and comprehensively implements the new development
philosophy, actively serves and integrates into the new development paradigm, andpromotes the development of green finance as an important part of adhering to the financial
development path with Chinese characteristics, serving Chinese path to modernization andachieving high-quality development. In 2022, around the development of green finance, theBank further strengthened strategic guidance, improved corporate governance, and increased
financial support. It improved product & service system, promoted the management ofinvestment and financing environment and social risks, and actively participated in global
financial governance, continuously achieving remarkable results.
The Bank strengthened the top-level design and strategic promotion of green finance.
The Bank’s green finance governance structure has been gradually improved, and the Boardof Directors, the Board of Supervisors and the Senior Management have taken green financeas an important part of their duty performance, promoting the formation of a green financepromotion system throughout the Bank. The Bank formulated and issued the Development
Strategic Plan for the “14th Five-Year Plan” Period, clearly proposed to serve as a leadingbank in China to practice green development, and prudently promoted the work on carbon
peak and carbon neutrality. It officially released the green financial brand “ICBC GreenBank +”, demonstrating the role of ICBC as a big bank.
The Bank increased support for green investment and financing. It continued to improveits green investment and financing policies, effectively implemented the green classification
management policies for investment and financing, and improved the basic management

2

Industrial and Commercial Bank of China Limitedpolicies for green finance. It also promoted the green transformation of investment and financing structure,holistically serving carbon reduction, pollution reduction, green expansion and economic growth. Green loans,green bonds and other green investment and financing have maintained a leading position in the market. As at
the end of December 2022, the Bank recorded RMB3,978,458 million in the balance of green loans for green
industries such as energy conservation and environmental protection, clean production, clean energy, ecologicalconservation, green infrastructure upgrading and green services in accordance with CBIRC standard. Both scale
and increment remained the first in the industry.
The Bank promoted product and management innovation as a whole. The Bank actively and steadily
carried out innovation in carbon finance, digital supply chain and other investment and financing products,
comprehensively strengthened environmental (climate) and social risk management, and scientifically carried out
environmental risk stress testing. In 2022, all indicators of environmental benefits of investment and financing
improved significantly. Besides, the Bank put the management data statistics system of carbon footprints into
operation, continued to strengthen the innovation of online products, channels and scenarios, and actively
promoted the building of low-carbon outlets, constantly improving the Bank’s low-carbon operation.
The Bank deepened forward-looking research and international exchanges and cooperation. The Bank
attached great importance to and actively promoted green finance research, focused on the role of researchin supporting decision-making and serving business development, and provided intellectual support forgreen transformation and development through forward-looking research and international exchanges. Indepth research was carried out on key fields such as transitional finance, information disclosure, climate risk,biodiversity, new energy, and carbon market tools. With an open mind in exchange and mutual learning, the Bank
shared ICBC’s experience and contribute ICBC’s wisdom through international platforms such as BRBR (Beltand Road Inter-bank Regular Cooperation Mechanism), GIP (Green Investment Principles of Belt and Road), and
PRB (Principles for Responsible Banking of the United Nations).
Looking ahead, the Bank will further play the important role of green finance in promoting green development
and helping to achieve the goals of “carbon peak and carbon neutrality”. It will strive to boost ecologicalprotection using financial resources, accurately promote the green economy, and comprehensively advancelow-carbon life, so as to make new and greater contributions to promoting Chinese path to modernization
characterized by harmonious coexistence between people and nature, and building a clean and beautiful world.

2022 Special Report on Green Finance （TCFD） 3

Part I
Governance

The Bank has continuously improved its green finance governance framework,
optimized the role of the Green Finance (ESG and Sustainable Finance) Committee
in coordination and organization, and strengthened the top-level design and strategictransmission. As a result, the work promotion and operational mechanisms have got
increasingly developed, and the quality and efficiency of the development of green
finance have continuously and steadily improved.

4

Industrial and Commercial Bank of China Limited

Board of Directors
The Board of Directors of the Bank attaches great importance to the work on green finance. It is responsible
for considering the Bank’s policy objectives for fulfilling social responsibilities in respect of ESG andrelated matters, regularly reviewing proposals on corporate social responsibility (ESG) report, green financeimplementation report and risk management report and strengthening the supervision and management ofgreen 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 putting forward suggestions to the Board of Directors.

Corporate Social
Responsibility andConsumer Protection
Committee

It is responsible for studying and considering the Bank’s fulfillment of social
responsibilities for environment, society, governance and corporate culture,
consumer protection strategies, policies and objectives, green finance strategies, thedevelopment plan, basic rules, annual plan and evaluation measures of inclusive
finance business and other matters, and putting forward suggestions to the Board of
Directors.

RiskManagement
Committee

It is mainly responsible for reviewing and revising the Bank’s risk strategy, risk
management policy, risk appetite, the enterprise-wide risk management framework andinternal control process, supervising and evaluating their implementation andresults and making suggestions to the Board of Directors, including related matterssuch as climate risk.

○ Review of the Board of Directors and Special Committees on green finance andenvironment-related issues during the reporting period

Date

Agenda items

Audit Committee of the Board of Directors and the Board of Directors of the Bank reviewed and approved the
March 29 - 30 The
Proposal on the 2021 Annual Report and Its Abstract with a unanimous vote.
Risk Management Committee of the Board of Directors and the meeting of the Board of Directors of the Bank
March 29 - 30 The
reviewed and approved the Proposal on the 2021 Risk Report and Risk Appetite Assessment with a unanimous vote.
The Strategy Committee of the Board of Directors and the meeting of the Board of Directors of the Bank reviewed andthe Proposal on the 2021 Social Responsibility Report (ESG Report) of Industrial and Commercial Bank ofMarch 30 approved
China Limited with a unanimous vote. The Board of Directors and Special Committees learned about the Bank’s green
financial system and mechanism building, green credit, green investment, green bonds and other related contents.
The Strategy Committee of the Board of Directors and the meeting of the Board of Directors of the Bank reviewed andapproved the Proposal on ICBC’s Development and Strategic Plan during the 14th Five-Year Plan with a unanimous
May 20vote. The Board of Directors and Special Committees learned about the Bank’s green finance development plan,innovative green financial products, and the promotion of green finance and ESG system building.
The Risk Management Committee of the Board of Directors and the meeting of the Board of Directors of the Bank
reviewed and approved the Regulation on Enterprise-wide Risk Management (Version 2022) with a unanimous vote.
May 20
The Board of Directors and Special Committees learned about the Bank’s improvement of green financial business
management and the building of climate risk system.
The Risk Management Committee of the Board of Directors and the meeting of the Board of Directors of the Bank
August 29 - 30 reviewed and approved the Proposal on the 2021 Interim Risk Management Report with a unanimous vote. The
Board of Directors and Special Committees learned about the Bank’s green loans and green bonds.
The Audit Committee of the Board of Directors of the Bank and the meeting of the Board of Directors of the Bank
reviewed and approved the Proposal on the 2022 Semi-annual Report and Its Abstract with a unanimous vote. The
of Directors and Special Committees learned about the Bank’s deployment related to addressing climate
August 29 - 30 Boardchange, the implementation of green finance, and suggestions for promoting the development of green finance. At
the same time, the directors proposed to pay attention to China’s future policies for green finance, which will bringchallenges as well as opportunities to business. The Bank should seize these opportunities in the future.
The Audit Committee of the Board of Directors of the Bank heard the Report on the Results of Agreed-upon ProceApril 28
for the First Quarter of 2022, the Report on the 2022 Interim Review Results and the Report on the Results ofAugust 29 dures
Procedures for the Third Quarter of 2022, respectively. The Special Committees learned about green
October 27 Agreed-upon
credit management, the focus of green financial business development and other relevant contents.
Note: This table was formulated according to the proposal themes.

2022 Special Report on Green Finance （TCFD） 5

Column: Voices from Senior Management
Chen Siqing: Promote the harmonious coexistence between people andnature with financial power

On December 23, 2022, Chen Siqing, Chairman of the Bank, attended the “2022 Green FinanceInternational Summit · Dianchi Forum” via video conferencing and delivered a keynote speech on
the development of green finance. He expressed that financial institutions should deeply study andimplement Xi Jinping’s thought on ecological civilization, firmly establish and practice the philosophy
that “lucid waters and lush mountains are invaluable assets”, and promote the high-quality developmentof green finance, so as to provide more powerful financial assistance for building a beautiful China.
Chen Siqing emphasized that the Bank should strengthen its role, firmly adhere to the financial purposeof serving the real economy, and increase financial support with a focus on the national requirement
for green and low-carbon socioeconomic development. Additionally, the Bank should strengthen
innovation-driven development, meet national requirements through every possible financial means,focus on the low-carbon transformation and promote the innovation of financial products and services,and develop more comprehensive service plans for green finance. Moreover, the Bank should beconstantly mindful of worst-case scenarios, coordinate the development and carbon emission reduction,
holistic and regional development, and short-term and medium- to long-term development, ensure thesafety of food, energy resources, and important industrial chains and supply chains while promoting
the low-carbon transformation of investment and financing, and take a path to safe and low-carbon
development, thereby contributing to the steady promotion of the carbon peak and carbon neutrality
cause. The Bank should also strengthen open cooperation, promote global services while focusing
on domestic development, deepen international exchanges and cooperation in sustainable financial
concepts, green financial standards and other aspects, and advance mutual alignment and recognition ofrules and standards, thereby gathering strength for the development of green finance.
Chen Siqing said that ICBC regards the promotion of the high-quality development of green finance as
an integral part of adhering to the financial development path with Chinese characteristics and serving
China’s modernization. Additionally, ICBC has been an active advocate and practitioner of green credit
standards and responsible investment principles. Looking ahead, ICBC will continue to strengthen
the cooperation with all parties to further play the important role of green finance in promoting green
development and helping to achieve the goals of “carbon peak and carbon neutrality”, and make new
and greater contributions to promoting the Chinese path to modernization characterized by harmonious
coexistence between people and nature and building a clean and beautiful world!

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Industrial and Commercial Bank of China Limited

Liao Lin: Develop green finance to improve the quality and efficiency ofserving “carbon peak and carbon neutrality”

In February 2022, Liao Lin, Vice Chairman and President of the Bank, published a signed article in
China Finance.
The article described a new economic landscape brought by carbon peak and carbon neutrality.
From the perspective of supply end, the green transformation of the industrial structure has
accelerated; from the perspective of demand end, green consumption has become a new social
trend; from the perspective of finance, green standards have been integrated into the whole processof management.
The article pointed out that finance is an important force to achieve the goals of “carbon peak andcarbon neutrality”, and green finance is an important part of the modern financial system, whichplays a key role in serving the green transformation and helping to achieve carbon peak and carbon
neutrality. At present, China’s green finance has developed rapidly. The green financial service
system has been initially established, the scale of green credit and green bonds has ranked among
the top in the world, and a number of important achievements have been made in policy standards,
financial instruments and international cooperation. The Bank has played an important role inpollution and carbon reduction.
The article put forward opinions and suggestions on improving the quality and efficiency ofserving the goals of “carbon peak and carbon neutrality” with financial services from the aspectsof improving the strategic positioning of green finance, clarifying the path of green financetransformation, enriching the supply of green finance, preventing the risks of green financetransformation, improving the infrastructure of green finance, and promoting the global cooperationof green finance.
The article put it that ICBC would cooperate with global financial peers to continuously contribute
financial wisdom and strength to promoting carbon peak and carbon neutrality.

2022 Special Report on Green Finance （TCFD） 7

Column: Directors’ deep participation in green finance
ESG-related training
During the reporting period, directors of the Bank continuously improved their duty
performance capabilities and joined in the special training programs such as green financeand ESG organized by the regulatory authorities and the Bank, participated in the ESG special
training programs organized by the Listed Companies Association of Beijing and profoundly
studied issues related to ESG governance by listed companies.

SurveyDirectors of the Bank actively conducted survey concerning green finance on departmentsof the Bank, branches, and affiliated institutions to gain a deep understanding of the Bank’s
green finance development and put forward constructive opinions and suggestions on thehigh-quality development of green finance.

Research
During the reporting period, directors of the Bank conducted special research themed on thegreen finance of large commercial banks. In the research, directors of the Bank systematicallysorted out the practices and explorations made by large commercial banks in building policy
systems for green finance, enriching green finance product systems, conducting forwardlooking research on green finance, participating in international cooperation on green finance,
exploring the Bank’s own green and low-carbon transformation, and disclosing information
on green finance. By drawing on excellent practices concerning green finance, they provided
references from such perspectives as industries, policies, and practices for large commercial
banks to achieve sound development of green finance.

8

Industrial and Commercial Bank of China Limited

Board of Supervisors
During the reporting period, the Board of Supervisors effectively performed its supervisory duties, and actively
played its supervisory role in corporate governance supervision, providing support and guarantee for the Bank’s
compliant operation and prudent development.
The Board of Supervisors paid much attention to the implementation of the national economic and financial
policies and regulatory requirements by the Board of Directors and Senior Management, and focused on
the important tasks of “stability on six key fronts”, “security in six key areas”, common prosperity, rural
revitalization and technological innovation. Moreover, it urged the Bank to increase the fund support in key
areas with a focus on serving major national strategies, supporting and serving the real economy, preventing
and mitigating financial risks, and advancing inclusive finance and green finance for the achievement of goalsof carbon peak and carbon neutrality. Additionally, the Board of Supervisors made simultaneous arrangements
to support the Bank in serving major national development strategies and transforming business development,so as to improve the quality and efficiency of the development of modern financial services with Chinesecharacteristics.

Hold meetings of the Board of Supervisors in a standardized and efficient manner

During the reporting period, the Board of Supervisors held six meetings, at which 19 proposals such as the annual
report of the Bank and its abstract and social responsibility (ESG) report were deliberated, 19 work reports suchas the business conditions of the Bank, the external audit reports and the implementation of the Bank’s strategicplans in 2021 were heard, and 35 special reports such as the annual risk management report were reviewed.
Besides, it put forward suggestions around the implementation of the green finance strategy, supervised andpromoted the healthy and orderly development of the Group’s green finance.

Strengthen routine supervision over performance of duties

Through attending relevant meetings of the Board of Directors and Senior Management as non-voting attendees,
reading documents, accessing data, hearing review reports, and conducting special research and routine
supervision over the performance of duties, the Board of Supervisors continuously supervised the Board of
Directors, relevant special committees, and Senior Management, as well as their members, over their duty
performance in promoting green finance, helping achieve the goals of “carbon peak and carbon neutrality”,
improving ESG management, and strengthening climate risk management.

Assess the execution of strategic plans and information disclosure policies

In the process of supervision, the Board of Supervisors continuously paid attention to the planning, formulation,and execution of the Bank’s development strategies for the “14th Five-Year Plan” period, the meetings of theGreen Finance (ESG and Sustainable Finance) Committee, the annual report of the Bank, the social responsibility(ESG) report, the ESG semi-annual special report, the green finance special report (TCFD) report and theinformation disclosure. Meanwhile, it assessed the scientificity, rationality and effectiveness of the development
strategy, supervised the authenticity, accuracy and completeness of relevant information disclosure, as well as theimplementation of information disclosure policies, and then formulated relevant assessment opinions.

Conduct a special analysis of the supervision over carbon neutrality work

The Board of Supervisors paid attention to the Bank’s implementation of the Party’s and the country’s
decision and arrangement in “carbon peak and carbon neutrality”, systematically streamlined the Bank’s work
achievements in strengthening the “carbon peak and carbon neutrality” work arrangement in terms of governancestructure, clarifying the Bank’s key tasks in “carbon peak and carbon neutrality”, and taking measures for
major tasks. Benchmarking itself against the practice of domestic and foreign peers and from the perspective ofcorporate governance supervision, the Board of Supervisors put forward four supervision suggestions, including
strengthening the top-level design at the strategic level and accelerating the progress of its own carbon neutrality
work, which were approved by the Senior Management and adopted in the carbon neutrality operation andmanagement, thus promoting the Bank to accelerate the pace of carbon neutrality.

2022 Special Report on Green Finance （TCFD） 9

Senior Management
It is responsible for implementing the resolutions made by the Board of Directors and its special committees
on social responsibilities (ESG) and leading and coordinating the work related to social responsibilities(ESG) within the framework of objectives. Through the Green Finance (ESG and Sustainable Finance)
Committee, the Senior Management promoted the implementation of the goals of carbon peak and carbon
neutrality, coordinated and promoted the development of green finance business of all business lines andinstitutions of the Group, promoted green and low-carbon transformation, and continuously improved theGroup’s climate risk management level.

Green Finance (ESG and Sustainable Finance) Committee

The Bank established the Green Finance Committee at the Management of the Head Office in 2020. In 2022, theHead Office set up the Green Finance (ESG and Sustainable Finance) Committee, issued the Working Regulations
for the Green Finance (ESG and Sustainable Finance) Committee (Version 2022), added the functions of ESG
and sustainable finance to the original Green Finance Committee, divided the relevant committee departments andset up two secretariats according to the functions of green finance, ESG and sustainable finance, and clarified theorganization of the committee, job responsibilities and rules. The secretariat related to green finance functions is
set up in the Credit and Investment Management Department, and the secretariat related to ESG and sustainablefinance functions is set up in the Corporate Strategy and Investor Relations Department. The two secretariats arerespectively responsible for the routine organization and coordination of the relevant functions of the Committee.

Its specificresponsibilities

Implementing the Group’s strategy and goals of green finance (ESG and sustainable finance),
coordinating the work of all institutions and all lines in the field of green finance (ESG andsustainable finance), and guiding the whole Bank’s green finance (ESG and sustainable finance)development and business management as an auxiliary decision-making institution that leads andcoordinates green finance and ESG-related work for the Senior Management. All tier-one (directly
managed) branches have established the Green Finance (ESG and Sustainable Finance) Committee
by referring to that of the Head Office to promote green finance within their jurisdiction in acomprehensive and coordinated manner.

Column: The Green Finance (ESG and Sustainable Finance)
Committee held four special meetings during the reporting period
The first meeting: On June 17, 2022, the Committee reviewed the Green Guidelines for Investment and
Financing of ICBC (Trial), summarized the recent progress of the Bank’s asset end and its own work on“carbon peak and carbon neutrality”, analyzed the situation and problems faced by the development of“carbon peak and carbon neutrality” of the Bank, and arranged next key tasks.
The second meeting: On August 24, 2022, the Committee reviewed 2022 Interim Special Report on Corporate
Social Responsibility (ESG and Sustainable Finance) of Industrial and Commercial Bank of China Limited, andarranged the key work on ESG and sustainable finance in the H2 of 2022.
The third meeting: On October 27, 2022, the Committee reviewed the Report on Implementation of theRelevant Requirements of the Guidelines for Green Finance of the Banking and Insurance Industries Issuedby China Banking and Insurance Regulatory Commission, heard the reports on the promotion of green
finance of the Bank’s two subsidiaries, ICBC Investment and ICBC-AXA, and arranged the key work topromote the high-quality development of green finance in the next step.
The fourth meeting: On December 15, 2022, the Committee reviewed the Basic Provisions for Corporate
Social Responsibility (ESG and Sustainable Finance) and the Management Measures for Information
Disclosure of Social Responsibility (ESG and Sustainable Finance), and heard the report on the upgradingof the Bank’s MSCI ESG rating.

10

Industrial and Commercial Bank of China Limited

Work promotion mechanism
The Bank has established a green finance work promotion mechanism under the overall leadership of theBoard of Directors and Senior Management, led by the Credit and Investment Management Department,
coordinated by other relevant departments, and implemented by domestic and overseas branches.

Steering Group for Carbon Peak and Carbon Neutrality

Main responsibilities: Comprehensively leading the Bank’s work on carbon peak and carbon neutrality andorganizing the formulation and study of the Bank’s development plans and major issues on carbon peakand carbon neutrality.

Executive Committee of the Senior Management

It mainly heard the reports on the progress of green finance, including the results of green finance in
relevant business lines, the situation and problems faced by green finance, and the next work plan.

Normalized communication mechanism with investors

30

During the reporting period, the Management of the Bank led a team to hold over
specialmeetings on green finance and ESG with domestic and foreign institutional investors around the world,
providing global investors with a full picture of the Bank’s practices and achievements in green finance,
ESG and climate change response, and responding honestly and professionally to concerns of various
stakeholders.Investors fully recognized the Bank’s efforts and achievements in implementing the green
and low-carbon philosophy.
During the reporting period, among the questions raised by investors through results briefings, investor
meetings and online channels, the questions regarding carbon neutrality, green finance, ESG strategy,
climate risk management and ESG information disclosure accounted for about

Green finance research and coordination mechanism

22%.

The Bank attached great importance to and actively promoted green finance research, and focused on
the role of research in supporting decision-making and serving business development. A research system
has been established, with the Modern Finance Research Institute (Office for Deepening Reform) as theresearch leader and the resource integration department of the think tank, to scientifically coordinate theresearch resources of the Bank, and to coordinate and share the research forces of the Bank. It focuseson the national goals of “carbon peak and carbon neutrality” and the key hot issues of green financeto carry out normalized research, thereby supporting and serving the development of the Bank’s green
finance business.

In-depth research

The Bank composed a seriesof special reports on thedevelopment of green financial
business.

Research cooperation

The Bank led all business lines andbranches of the Bank to actively
conduct research and analysis aroundtheir own green finance businesspractices, developing a soundinteraction for research and service
decision-making.

Active communication
with others

The Bank shared the research
results of green finance throughvarious forms of communication
activities, and promoted the Bank’s
green finance brand.

2022 Special Report on Green Finance （TCFD） 11

Green financial business training mechanism
During the reporting period
the Bank carried out

173 sessions of green finance business training for the Bank in various

ways, including face-to-face training, online training, video training, morning training, pre-shift andpost-shift training, with approximately

49,000 participants, achieving good training results.

│Launching theme courses and transmitting the green development philosophy
In the 31 sessions of the Bank’s special training course on the spirit of the 20th CPC National Congress,
excellent teachers were invited to teach the theme course of “advancing green development to promote theharmonious coexistence between people and nature”, further promoting the transmission and implementationof green development and harmonious coexistence throughout the Bank.

│Focusing on low-carbon transformation and paying attention to the interpretation of relevant strategies
With online and offline methods, the 252 sessions of training courses for various business lines were addedwith “carbon peak and carbon neutrality to speed up low-carbon transformation”, “green office and lowcarbon travel”, “carbon peak and carbon neutrality & green finance” and other relevant courses, to unify theperception of the Bank and continue to convey the development philosophy of low-carbon transformation andgreen finance under the new situation.

│Creating high-quality courses and strengthening the development of training resources
With respect to green finance, the Bank developed 12 sets of teaching materials, including the Work
Manual for Green Finance and the Work Manual for Bank Support for High-quality Development of the
Manufacturing Industry, as well as 27 pieces of course materials such as the Role of Green Finance inPromoting Carbon Peak and Carbon Neutrality and the Introduction to Green and Low-carbon Development.

Promote the building of green financial franchise system
The Bank actively promoted the building of green financial franchise system, encouraged all domestic
branches to innovate and establish green financial franchise institutions according to their own
characteristics, optimized exclusive services for green finance, equipped green financial professionals,
and improved the special assessment mechanism of green finance. Domestic institutions at all levels
implemented the green finance, ESG and sustainable development philosophy in accordance withthe spirit of the CPC Central Committee, laws, regulations, and regulatory requirements. Overseas
institutions implemented it in accordance with local standards and regulatory requirements.

Column: The Bank got the highest MSCI rating in China
The Senior Management of the Bank attached great importance to and guided the ESG work, and therelevant departments and institutions of the Head Office made every effort in the field of ESG-related
communication and disclosure, and made joint efforts of the Group to successfully enhance the ESG
rating of MSCI for consecutive years. In November 2022, MSCI upgraded the Bank’s annual ESG
rating to A, the highest rating of domestic commercial banks. Specifically, the impact of financing on
the environment and other issues had been significantly improved. The Bank was also the only bankthat has achieved rating improvement for two consecutive years.

12

Industrial and Commercial Bank of China Limited

Part II
Strategy

In the process of business development, the Bank has always adhered to integrating
economic responsibility with social responsibility, attached greater importance to thedevelopment of green finance and support for ecological civilization in the Group’s
development plan, made clear that “the Bank will lead the way in practicing green
development” in China. Additionally, the Bank has promoted the “building of green
finance and ESG system” as a specific measure in order to continuously accelerate theinnovative development of green finance and constantly improve the Bank’s services
for the development of ecological civilization.

2022 Special Report on Green Finance （TCFD） 13

Becoming a green bank with goodinternational reputation.

Strategic
goal
Businessphilosophy

Serving the real economy withgreen finance.

Planning
During the reporting period, the Bank issued its strategic development plan for the 14th Five-Year Plan period.
According to the development plan, by closely centering on the national arrangement for the 14th Five-Year
Plan and the long-range objectives of 2035, the Bank based itself on the new development stage, implemented
the new development philosophy, and served new development paradigm, carried out the strategic pattern of“leveraging our strengths, tackling areas of weaknesses and solidifying the foundation”, so as to consider theoverall development and security of the Bank, and pro-actively serve major national development strategies.
Thus, the Bank has enhanced the adaptation, competitiveness, and inclusiveness of a modern financial system,
built a world-class modern financial enterprise with Chinese characteristics in an all-round way, and striven to
open up a new prospect of a stronger, superior, and larger ICBC with high-quality development.
The Bank kept developing action measures in the fields of green finance, inclusive finance (rural revitalizationand people’s livelihood security), and financial technological empowerment in accordance with the sustainable
development goals and requirements set out in the 2030 Agenda for Sustainable Development and the Principles
for Responsible Banking of the United Nations, and practiced the sustainable development philosophy.

14

Industrial and Commercial Bank of China Limited

Mission

The Bank puts forward the mission of “adapting to the times, staying ahead ofcompetitors and benefiting the public”, emphasizes the need to comply with
the new trend of energy revolution, clean production and circular economy,
accelerate the innovative development of green finance, and improve the services
for ecological civilization.

Strategic framework

Focus on the objectives, path and tools of the green finance system development,
refine the green and low-carbon financial service system for regions, products,
customers and industries to make centralized arrangements, and make clear that“the Bank will lead the way in practicing green development” in China.

Strategic focus

Create a low-carbon, green sustainable financial service system by means ofFintech and management of financial elements; build a big data platform forenvironmental risk information and continuously improve ESG risk management.

Strategic actions

Align with the UN sustainable development goals, innovate ESG green rating
and index research, explore quantitative evaluation methods and tools of green
development of enterprises and establish a cutting-edge system of green financeresearch.
Under the framework of Paris Agreement, build a big data platform forenvironmental risk information, improve and align the statistical classification
standards of green investment and financing, establish a scientific, comprehensive
and systematic evaluation mechanism for green financial development, and takethe initiative in strengthening ESG information disclosure and climate-related
investment and financing information disclosure.
Support 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 and industries, significantly increase the proportion of green loans
and cement the leading position in green finance, to continuously improve theenvironmental quality and improve the quality and stability of the ecosystem.
Strengthen marine ecological protection and develop marine economy, andsupport the building of a marine power.
Vigorously develop financial instruments such as green bonds, green stockindex, green development fund, green wealth management, green insurance andcarbon finance to realize economic transition and upgrading and sustainable
development of financial services.

Specific objectives
To implement the Group’s “14th Five-Year Plan” development strategy, implement the Opinions
on Further Strengthening Green Finance Development, and strive to create new advantagesof green finance. To achieve a leading size and good quality of green loans, and seek to leadpeers in total green investment and financing; set qualitative objectives and requirements on
the organizational structure for green finance, policies and procedures, ability to prevent andcontrol environment and climate-related risks in investment and financing and participation in theformulation of green financial standards.

2022 Special Report on Green Finance （TCFD） 15

Column: Continuously promote carbon peak andcarbon neutrality
During the reporting period, under the overall arrangement and promotion of the Steering Group for
Carbon Peak and Carbon Neutrality with Chairman Chen Siqing as the group leader, President Liao
Lin as the deputy group leader, and each Senior Executive Vice President as the group member,the Bank implemented the work plan for “carbon peak and carbon neutrality” and the medium andlong-term optimization strategy of investment and financing structure, continuously promoting thework on “carbon peak and carbon neutrality” to go further.

Supporting the establishment of national carbon market
In accordance with the Opinions on Improving the Business Layout of Financial Services
in the Carbon Market, the Bank focused on the supporting role of green finance in serving
the establishment of the carbon market, provided financial services in the national carbon
market, and comprehensively connected with the development of the national carbon
market registration and settlement system. The Head Office and branches jointly developed
a comprehensive financial service plan for the main body of the national carbon market
operation, the China Registration and Settlement System of Carbon Emission Right, andcompleted the connection and joint testing with the System; strengthened the financial
services for carbon asset companies, and actively marketed the newly established carbon asset
management companies of key power groups, based on which, the Bank also explored thecomprehensive financial services in the carbon asset field of the whole group.

Carrying out carbon financial product innovation
During the reporting period, the Bank successfully issued the first carbon neutrality green
financial bond of the domestic commercial bank that totaled RMB10 billion, which was
the first green bond in China to quote the new version of the EU-China Common GroundTaxonomy, which conformed to the global mainstream green bond standards. It was abenchmark product in the domestic green bond market.
In the past two years, two issues of global multi-currency overseas green bonds themed “carbon
neutrality” were issued, setting the largest scale of green bond issuance by Chinese issuers.
The Bank was among the first on the market to carry out underwriting and investment ofcarbon neutrality bonds.
The Bank severed as the lead underwriter of the first green car loan asset-backed securities in
China.
ICBC Wealth Management created and released the CSI ICBC Wealth Management “carbon
neutrality” asset allocation index. Tianjin Branch, Zhejiang Branch and other branches
processed the pledged loans of carbon emission rights centered around the carbon market
pilot. Zhejiang Huzhou Branch accelerated the building of a green financial service systemwith “carbon emission reduction” as the core.

16

Industrial and Commercial Bank of China Limited

Actively advancing the implementation of carbon emission
reduction support tools
On the basis of the Notice on the Work Related to Proper Use of Carbon Emission
Reduction Support Tools previously issued, the Notice on Further Improving the
Declaration of Carbon Reduction Supporting Tools was issued in 2022, further clarifying
the relevant requirements for the declaration of carbon emission reduction support tools.
Since the launch of carbon emission
reduction support tools,
the Bank has granted

With a weighted average interest

RMB

Reducing the annual emission of

104,512 million ofrate of

3.49%

carbon emission reduction loans to a total

24,622,600 tons ofofcarbon dioxide equivalent

846 projects

Strengthening the research on the realization path of carbon
peak and carbon neutrality, and raising suggestions on
relevant investment and financing strategies of the Bank
The Bank completed and issued the Report on the Long and Medium-term Strategy for
Improvement of Investment and Financing Structure under the Goals of “Carbon Peak andCarbon Neutrality” . The report takes the carbon peak and carbon neutrality into considerationin the research of industry investment and financing policies and customer selection, andimplements the “basket by basket” strategy for investment and financing to continuously
promote the green and low-carbon transformation of investment and financing structure,and strengthen the innovation of green financial products and services. The report guides
the Bank to increase the financing for green and low-carbon industries, reasonably control
funding in high-carbon industries, and prudently prevent structural financing risks.

2022 Special Report on Green Finance （TCFD） 17

Column: Green Bank brand building
In November 2022, the Bank formally released
its green finance brand - “ICBC Green Bank+”
at the fifth China International Import Expo. It
indicates that the Bank will strive to play the roleof green finance vanguard and financial strength
to better protect lucid waters and lush mountains
by providing more assistance and cooperation.

One is asset-related green finance.
The Bank will comprehensively
promote green and low-carbon
transformation, product innovation
and risk management, serve thegoals of “carbon peak and carbon
neutrality”, and effectively play therole of pioneer and leader in green
finance.

Specifically, “Green Bank”
mainly consists of two parts

The other is green operation of
the Bank. The Bank will steadily
advance the green and low-carbon
transformation of its own operations,improve its environmental
performance, study and formulate
its goals of “carbon peak and carbon
neutrality” and implementation
roadmap, and guide the Bank’senergy conservation, efficiency
improvement and green operations.

“+” has four meanings“Home”It means green
finance experts, elites
and masters,who will
make the earth more
beautiful.

“Plus”“Integration”“More”It means refueling.

It means harmony,sharing andintegration.

It means looking
farther and doing
more for better.

Based on the Bank’s leading advantages in green financial credit scale, product type,governance system, data management, risk control, its own work on carbon peak and carbon
neutrality, international cooperation and innovation achievements, the Brand actively
advocated the philosophy of “harmony, mutual integration and friendship”, gave full play tothe role of a green finance vanguard in providing professional, comprehensive and forwardlooking financial support for green development, so as to achieve the goal of “More Green
Contributions for More Beautiful Home”.

18

Industrial and Commercial Bank of China Limited

Part III
Policies andProcedures
Focusing on the national double-carbon goals, the Bank assisted in implementing
China’s development strategy of ecological civilization, furthered the establishment ofgreen financial system and mechanism, and introduced various green financial policies
and procedures. It improved the green classification management of investment andfinancing of domestic and foreign institutions, and deepened the management of green
credit throughout the process. The Bank optimized the green finance assessment
mechanism, strengthened the statistical management of green finance, and constantly
fortified the foundation for green finance development.

2022 Special Report on Green Finance （TCFD） 19

Domestic industrial investment and financing policies and special
policies
Annual industrial investment and financing policies and relevant special policies were introduced to
implement green classification management, support the development of green industries and the green
transformation of traditional industries, actively promote the green adjustment of investment and financing
structure and effectively control ESG risks of investment and financing.

⌒ Implementing the Guidelines for Green Finance of the Banking and Insurance Industries

In alignment with the Guidelines for Green Finance of the Banking and Insurance
Industries issued by the CBIRC, the Bank formulated measures to promote its green
finance work, and made overall arrangements for deploying the tasks of all departments
and branches. The Notice on Relevant Issues of Implementation of the Guidelines forGreen Finance of the Banking and Insurance Industries put forward seven key tasks ofimproving green finance in the next step.

Strengthening the capacity building of environmental, social and governance (ESG)risk management, building ESG requirements into the enterprise risk management
system, and carrying out full-process risk management

Seven key tasks

Furthering the green and low-carbon adjustment of the investment and financing
structure, orderly reducing the carbon footprint of its own operation, and steadily
advancing carbon peak and carbon neutrality
Actively exploring and optimizing the Bank’s green financial system and mechanism
according to policy requirements
Actively leveraging scientific and technological means to improve green financial
services
Reinforcing green financial building of overseas investment and financing
Fortifying the responsibilities of entities at all levels to ensure that the Bank’s green
finance building meets regulatory requirements
Keeping close communication with the government and regulatory authorities

the Administrative Measures for Lawfully Disclosure of Corporate Environmental⌒ Implementing
Information issued by the Ministry of Ecology and Environment
In alignment with the Administrative Measures for Lawfully Disclosure of Corporate Environmental
Information issued by the Ministry of Ecology and Environment, the Bank regulated the disclosureof corporate environmental information according to law, and disclosed the basic corporate
information, corporate environmental management information and carbon emission informationof the Bank in accordance with law. As to its operations, the Bank built and put into operationa statistics system of carbon footprint management data to collect and disclose its own carbon
emissions data in the past three years.

20

Industrial and Commercial Bank of China Limited⌒ Issuing the 2022 Industry Investment and Financing Policy

It is an investment and financing policy covering nearly 50 industries of 16 segments, which
comprehensively highlights the “green” orientation and continuously strengthening the differentiatedpolicy support and control. It adopts differentiated management measures such as economic capital
occupation, authorization, pricing and scale. The indicators, including enterprise technology,
environmental protection and energy consumption, are embedded in the selection of customers andprojects in key industries. The Bank made great efforts to support the development of green, low-carbon
and circular economy, and positioned key areas such as clean energy, green transportation, energy
conservation and environmental protection as industries of aggressive entry or moderate entry.

⌒ Issuing the Green Guide to Investment and Financing of Industrial and Commercial Bank of China (Trial)

Focusing on green development, the Guide takes ESG risk prevention and control as the basic
starting point, and provides rich operation guidance for preventing and controlling ESG risk ofinvestment and financing. The Bank strengthened effective and targeted ESG risk prevention andcontrol through key points of ESG risk identification, minimum access standards, excellent standards,
and green investment areas. The ESG risk that the Guide focuses on includes, but is not limited to,environmental pollution prevention, energy conservation, response to climate change and carbon
emission control, water resource conservation and flood prevention and control, biodiversity andecological protection, safe production and occupational health, cultural relics protection, corporate
governance and business owner behavior.
In addition to general requirements, the Bank should also strengthen the differentiated management ofenvironmental, social and governance risks for 10 specific industries, i.e., thermal power, coal, steel,
nonferrous metal, chemicals, building materials, papermaking, agriculture（including forestry）,
shipping and port, with reference to the green guide to investment and financing of the industry.

⌒ Strengthening credit approval support for green finance

The Opinions on Improving the Quality and Efficiency of Credit Approval to Support Steady Credit
Growth was issued to establish green approval channels for major and emergency investment andfinancing in green finance and other fields, and give priority to acceptance and review of such business.
The Bank supported the transformation and upgrading of traditional manufacturing towards high-end,
intelligent and green manufacturing, and helped leading enterprises grow bigger and stronger.

⌒ Green classification management of investment and financing of domestic and overseas institutions

The Measures for Green Classified Management of Investment and Financing of Domestic Corporate
Customers (Version 2021) was implemented. It extended green classification management to all
investment and financing business, further improved the green classification standards and supporting
policies for green classification management, and reinforced the process and management mechanismof green credit classification. As at the end of the reporting period, the balance of environment-friendly
loans and environment-qualified loans of domestic branches accounted for 99.3% of total, achieving thegoal of no less than 95% set by the Board of Directors for many years.
The Bank implemented the Notice on the Trial Implementation of Green Classified Management of
Investment and Financing of Overseas Institutions, requesting all overseas institutions to carry out the green
classification management on all investment and financing business within the scope permitted by the laws,
regulations and regulatory provisions in the local countries (regions).

2022 Special Report on Green Finance （TCFD） 21

Improving basic management policies on green financeRefining the assessment mechanism and strengthening the assessment of green finance
The Bank included green finance in the branch performance assessment index system,
focusing on assessment of the proportion of green loan balance, increase of green loans,green financial products and service innovation of each institution. ESG and sustainablefinance were included into assessment indicators of integrated subsidiaries of the Group.
Strengthening differentiated credit policies and economic capital regulation
The Bank defined the leading green industries, including railway, urban railtransit and hydropower, as the industries of aggressive entry, and adopted
differentiated credit policies, including reduction of economic capital
occupation coefficient and matched authorization.
Formulating annual green loan plan and providing FTP preferences
The Bank increased credit support for green development, and arranged a specific amountof green loans to ensure green industry financing. Internal fund transfer pricing (“FTP”)
incentive measures were implemented for green loans.
Enhancing the statistical management of green financing
In accordance with the Notice on Strengthening the Management of Statistical
Identification of Green Finance, the Bank further strengthened the managementof statistical identification of green investment and financing, and effectively
improved the accuracy, timeliness and automation of statistics of green
investment and financing. The Bank issued the Notice on the Self-inspection of
Statistical Data Management of Green Financing of the Bank and carried out
the self-inspection of statistical data management of green finance.
Improving supplier management policies
The Measures for Supplier Management was adjusted according to the national andindustrial regulatory requirements, adding the new national and industrial standards, energy
saving and environmental protection product list and other qualification requirements inthe form of appendices to provide guidance for the project regulators to prepare centralized
procurement requirements and recommend centralized procurement suppliers.
Actively practicing green procurement
In the public engagement of centralized procurement suppliers by the
Head Office and the setting of qualifications for recommending centralized
procurement suppliers, the Bank reviewed the measures taken by engaged andrecommended suppliers to perform social responsibilities for environmental
protection, energy saving, occupational health and safety, etc. and theeffect in accordance with national regulatory requirements and the businessneeds of the Bank’s own green transformation. It also required suppliers
to provide environmental management system certification, occupational
health certification, product environmental sign certification, energy saving
certification, social responsibility standard certification and other qualification
certificates. To facilitate the Bank’s green transformation, the Head Office
implemented a number of green procurement projects such as bank-wide copy
paper procurement and procurement of carbon footprint inventory consulting
services in 2022, and put forward requirements for the Bank’s green officesupplies procurement and its own carbon footprint management optimization.

22

Industrial and Commercial Bank of China Limited

Including climate risk in the enterprise-wide risk management
The Bank has incorporated climate risk management into the all types of risk management system.
The Regulation on All Types of Risk Management (Version 2022) contains a chapter of “climate risk
management”, which defines the governance framework design of domestic climate risk management
and the responsibilities of the Board of Directors, the Board of Supervisors, senior management,
business departments, the risk management department and the internal audit department for climate risk
management.
The Board of Directors

Senior management and relevant committees

The Board of Supervisors

It is responsible for formulating arisk strategy and appetite systemcovering climate risk to support theimplementation of carbon peak andcarbon neutrality.

It is responsible for supervisingand inspecting the performanceof the Board of Directors andsenior management in climate risk
management.

The risk management department

Business departments
As the first line of defense forclimate risk management, businessdepartments are the main bearerof climate risk and assumes
the primary responsibility forcontrolling such risk. Businessdepartments are responsible for
implementing the access standards
for green financial business, andstrengthening climate risk-related
business management.

As the second line of defense for climate
risk management, the risk management
department shall formulate climate risk
management policies, standards andrequirements, and provide climate risk
management methods, tools, processes,
training and guidance for the firstline of defense. The risk management
department shall independently monitor,
assess and report climate risk status andrisk changes of the Group and businesslines. The risk management department
should introduce the one-vote veto powerfor green financial business and assess
the effectiveness and appropriateness ofclimate risk management.

They are responsible for implementing
carbon peak and carbon neutrality,
effectively allocating resources, working
together to further the development ofgreen financial business of all businesslines and institutions of the Bank,
promoting green and low-carbon
transformation, and continuously
enhancing the Bank’s climate risk
management.

The internal audit departments
As the third line of defense forclimate risk management, the internal
audit department is responsible
for auditing the implementationof climate risk governance, theperformance of the Group’s
green financial business, and theeffectiveness of green financial
business management and process,so as to further the continuous
improvement of the Group’s green
financial business management.

Comprehensively strengthening the management of domestic
environmental (climate) and social risks
The relevant requirements of the climate risk management system are specified in the Regulation on
Enterprise-wide Risk Management (Version 2022).

Clarify thedefinition ofclimate risks
and main risk
profile.

24

Establish a climate
risk management
system, and specify
the management
requirements
on climate risk
governancestructure, appetiteand limits, policies
and processes,monitoring
and reporting,assessment, data andsystems.

Incorporate
climate risks
into the Group’s
strategy
and appetite
management.

Industrial and Commercial Bank of China Limited

Establish
climate risk
identification,assessment,
measurement,
monitoring,
control andreportingmechanisms.

Strengthencarbonemission dataand systemconstruction.

Accelerate theBank’s carbon
emission reduction,
strengtheninternational
exchanges andcooperation,
develop the Bank
into a climatefriendly bank,and enhance theBank’s climate
risk management
capabilities.

Identification and assessment of climate risks
The Bank identifies and assesses climate risks by studying and analyzing the climate factors that affect traditional risks.

Main forms ofphysical risks andtransition risks
Risk type

Creditrisk

Marketrisk

ImpactLiquidity
riskOperationalrisk

Climate risk factors

Reputational
risk

Impact duration

Credit risk

● Climate change results in weakerprofitability or asset depreciation of the
The risk that loss is caused to banking businessdebtorwhen the borrower or counterparty fails to meet
● Failure to adapt to the changes in
its contractual obligations.
policies, regulations and technologies has anegative impact on the obligor

Medium andlong terms

Market risk

The risk of loss to the Bank’s on- and offbalance sheet activities caused by adversem o v e m e n t s i n m a r k e t r a t e s ( i n c l u d i n g ● Asset depreciation due to climate changeinterest rates, exchange rates, and stock
prices and commodity prices).

Medium andlong terms

The risk that the Bank is unable to raise funds
on a timely basis or at a reasonable cost to ● E x t r e m e w e a t h e r e v e n t s l e a d t oLiquidity risk settle liabilities as they fall due, perform other customers’ credit overdraft or less-thanpayment obligations and satisfy other funding expected funds available to the Bank
demands of normal business development.

Medium andlong terms● Disruption of business activity and
The risk of loss resulting from insufficient or supply chain caused by extreme weather
problematic internal processes, employees events and damaged facilities
and IT systems or from external events, ● Carbon emission reduction measures add
including legal risk, but excluding strategic and to operating costs and capital expenditures● Failure to adapt to the changes in
reputational risk.
policies, regulations and technologies

Medium term

Operationalrisk

The Bank’s behavior, its employees’ behavior●Negative impact caused by insufficientor external events lead to negative opinions on
support for customers hit by extreme
Short, medium
Reputational the Bank of stakeholders, the public and theweatherand long terms
media, thus damaging the brand value, adversely
risk● Reputational damage due to exposure toaffecting the normal operation and even affecting
carbon-intensive industries
market and social stability.

Establishment of climate risk database
The Bank completed the establishment of a climate risk database, integrating eight types of climate risk data. The Bank
regularly updated and maintained the database to support climate risk management and analysis.

Eight types of climate risk data

Carbonaccounting data

Carbonmarket data

Climatedata

Transition
risk data

Physical risk
data

Scenario
data

Disclosuredata

ESG data

2022 Special Report on Green Finance （TCFD） 25

Improving the systematic control of domestic environmental, social andgovernance risks

The Notice on Strengthening the Management of Customer Environmental Risk System was issued. Throughcooperation with third-party environmental data providers, the Bank took full advantage of multi-dimensional
big data information of corporate environmental risk, added ESG information query and control linkage elementsin the GCMS system, and supported real-time acquisition of corporate climate information in the process andautomatic system risk prompt.

Actively conducting special audit on green finance

From August to September, 2022, the Internal Audit Bureau conducted the annual special audit on green financeover four tier-one branches in Anhui, Tianjin, Jiangxi and Henan. The audit focused on the implementation effectof the Bank’s green finance strategy, the effectiveness of green credit system construction and the compliance ofprocess management. By combining off-site risk analysis with remote audit, the Bank selected 80 customers with
RMB11,627 million of green credit as audit samples, and carefully audited the implementation of green financepolicy, green credit business management and major risks of relevant branches. This year’s green finance audit
achieved good results, which played a positive role in promoting the Bank’s green finance management.

Conducting climate risk stress testing
During the reporting period, the Report on Climate Risk Stress Testing was completed. With reference tothe technical framework of the United Nations Environment Programme (UNEP) and the Central Banks andSupervisors’ Network for Greening the Financial System (NGFS), the stress tests were adjusted by taking
consideration of domestic and localized factors, established the transmission models of transformation risk
and physical risk. The Bank became the first bank in China to complete the climate risk stress test using
international advanced technology.
The technical framework of climate risk stress test is mainly based on the stress test scenarios provided by
the NGFS comprehensive assessment model, including three categories of scenarios, i.e., orderly transition,
disorderly transition and greenhouse world. The Bank designed special stress test methods for key industries
such as thermal power, steel, transportation, coal, oil and gas, described the development laws of these industries,
established the transmission path between the climate risk scenario and customer operating factors, and thenpredicted customers’ financial statements and analyze the changes in their ratings. Based on the global warming
scenario, the Bank selected the forecast data of authoritative institutions, and analyzed the losses caused byphysical risks according to the Bank’s asset and collateral distribution in various regions.
According to the technical framework of climate risk stress testing, the Bank built and developed a climate
risk stress test system, which supports the collection and expansion of stress test scenarios, realizes thesystematic and process-based management of climate risk pressure transmission, and lays the foundation forcomprehensively improving the climate risk management capability and helping attain the goals of “carbon
peak and carbon neutrality”.

26

Industrial and Commercial Bank of China Limited

Part VGreen
Investment and
Financing

Closely focusing on the green development strategy and needs, and fully leveraging theGroup’s diversified operation advantages, the Bank rendered integrated services forcarbon emission reduction, pollution reduction, green expansion and growth throughloans, bonds, funds, wealth management, leasing, insurance asset management
and other financial products. It actively innovated green investment and financing
products and services, boosted the green transformation of development modes withfinancial services, supported the prevention and control of environmental pollution,
improved the diversity, stability and sustainability of ecosystems, and help promote
carbon peak and carbon neutrality actively and steadily.

2022 Special Report on Green Finance （TCFD） 27

Green Credit
As at the end of the reporting period
The Bank recorded RMB

the evaluation of green banks by the China
Insurance Regulatory Commission
3,978,458 InBanking
and the Banking Association, the company

million in green loans issued to energy saving andenvironmental protection, cleaner production, clean
energy, ecological environment, green upgrading of
infrastructure, green services and other green industries
under the CBIRC criteria
Both ranking first in the industry in terms ofbalance and growth

The top three industries in terms of balance weregreen upgrading of infrastructure,clean energy and energy saving
and environmental protection

ranked firstWas awarded“Advanced Unit in the Evaluationof Green Banks”“Outstanding Contribution Unit
by the Professional Committee
for Green Credit”

The Bank actively supported the national strategy of energy supply security and low-carbon transformation, andmade every effort to meet the reasonable financing needs of energy supply enterprises.
The Bank’s balance of clean energy loans
for wind power and photovoltaic power
generation accounted forHigher than the proportion of wind power
and photovoltaic power generation in China’s
power structure in the same period

37.8% of thetotal loans to the power industry○ Emission reduction of green credit projects
Item

Unit

2020

2021

2022

10,000t4924.744738.137048.31

10,000t8524.639884.6913726.53

COD emission reduction

10,000t281.71

28.38

35.09

Ammonia nitrogen reduction

10,000t

31.1

7.26

9.29

10,000t

2189.30

1817.132925.84

10,000t1424.62

1539.462071.03

10,000t

8931.027521.5210842.27

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

Emission reduction of sulfur
dioxideEmission reduction of nitrogen oxides
Water saved

28

Industrial and Commercial Bank of China Limited

Green bondIssuance of green bonds
Overseas
So far, the Bank has issuedWon

8 overseas green bonds

in total from The Asset, The Banker,
International Financing Review, Environmental
Finance, Hong Kong Quality Assurance Agency(“HKQAA”), etc.

With a total amount of
USD

13 international awards

17.9 billion

Within the green bond framework of the GroupOn May 24, 2022, the Bank issued global
multi-currency overseas green bonds
with the theme of “carbon neutrality”
via four overseas branches in Hong Kong,
Singapore, London and Dubai, with a total

On January 11, 2023, the Bank issued global
multi-currency overseas green bonds withthe theme of “carbon neutrality” via four
overseas branches in Hong Kong, Singapore,
Dubai and Sydney, with a total amount ofamount of USD

USD

2.68 billion

The bonds consist of five bonds denominatedin USD, EUR, HKD and RMB

2.21billion

The bonds consist of four green bonds
denominated in USD, offshore RMB and AUD.

These bonds have obtained the “carbon neutrality” green finance bond certificate issued by Beijing Zhongcai
Green Financing Consultant Ltd. and the “carbon neutrality” green and sustainable financial planningcertificate issued by HKQAA. The raised funds will focus on the low-carbon field and be specially used forgreen projects in fields with significant carbon emission reduction effects, such as clean transportation andrenewable energy.

So far, the Bank has been awarded◇ The “Best Green Bond – Carbon Neutrality in 2022” by The Asset◇ The “Outstanding Award for Green and Sustainable Bond Issuer (Global Commercial
Banking Industry) – Largest Amount of Carbon Neutrality Themed Green Bonds” by
HKQAASpecifically, the USD bonds of Hong Kong Branch also won the “Outstanding Greenand Sustainable Bond Issuer (Global Commercial Banking Industry) – largest Single
Carbon Neutrality Themed Green Bond”

2022 Special Report on Green Finance （TCFD） 29

Domestic
On June 8, 2022, the Bank successfully issued RMB10 billion of green finance bond with thetheme of “carbon neutrality” in the National Interbank Bond Market. It was the first green financebond themed as “carbon neutrality” of a domestic commercial bank recognized by the regulator.
The proceeds from the issuance were effectively used and all invested in green industrial projects
with significant carbon emission reductions. The carbon emission reduction of the bond was“measurable and verifiable”. The funded project is expected to reduce a large number of emissionsof carbon dioxide, sulfur dioxide, nitrogen oxide and smoke and dust annually. The bond is highly
consistent with international standards. It was the first green bond in China quoting the newversion of the EU-China Common Ground Taxonomy, which conformed to the global mainstream
green bond standards. It was a benchmark product in the domestic green bond market.

Green bond investment
The Bank actively engaged in RMB-denominated green bond investment toprovide green financial support for key areas of ecological civilization. Investment

in RMB green bonds increased by RMB 126.3 billion during the reporting period.
As at the end of the reporting period, the balance of green bonds exceeded RMB 200
billion, representing a year-on-year increase of over 60%. Newly increased green
bonds mainly include corporate bonds issued by a central nuclear power enterprise
and a central petrochemical enterprise, as well as local government bonds issued by
Shandong, Guangdong, etc., energetically driving the high-quality development ofChinese economy.

The Bank prudently made investment in foreign currency green bonds, and steadily
improved its market influence. During the reporting period, investment in foreign
currency green bonds rose by USD416 million , with a year-end balance of
USD932 million, up 44% year on year. Specifically, investment in green financebonds issued by Chinese-funded issuers amounted to USD183 million, with a yearend balance of USD472 million, which were mainly the bonds issued by Chinesefunded financial institutions such as Bank of China and China Construction Bank, andthe bonds of some central and Chinese-invested power enterprises.

30

Industrial and Commercial Bank of China Limited

Green bond trading

The Bank deeply participated in green bond market making trading,and steadily expanded the scale of green bond trading. During thereporting period, the Head Office’s trading book completed green bondinvestment trading of RMB17,509 million in the primary andsecondary markets, representing an increase of 46% year on year. The
Bank actively performed its duty of market makers to steadily strengthen
the capacity and quality of market making and quotation for green bonds,
leading the market by number of quoted bonds and quotation spread.

The Bank continuously enhanced the capability of over-the-countersales of green bonds, and effectively fostered the public awarenessof responsible investment. The Bank actively assisted issuers in
distributing green bonds through over-the-counter channels, andsuccessfully distributed RMB150 million of green finance bonds of
the Agricultural Development Bank of China during the reporting period.
Through extensive publicity to customers during the distribution period,
the Bank helped expand the social effect of green finance.

Leveraging on its overseas network and cross-border collaboration,
the Bank effectively served green bond investment trading of overseas
institutional investors. The Bank actively promoted and guided foreign
investors to invest in domestic green bonds through the CIBM Direct
and Bond Connect channels, making positive contributions to highlevel opening-up of the green bond market.

Case

The Bank successfully launched third-party foreign currency repo
transactions with green bonds as collateralThrough China Foreign Exchange Trade System, the Bank successfully entered into USD10
million of three-party foreign currency repo transactions collateralized by green bonds,
making it one of the financial institutions which first completed such transactions on thefirst day the service was launched. It further enriched the Bank’s foreign currency liquidity
management means, and consolidated its leading position in domestic foreign exchangemoney market.

2022 Special Report on Green Finance （TCFD） 31

Green bond underwriting
During the reporting period
As a lead underwriter, the Bank underwrote

108

ESG bonds

Covering green bonds, sustainable development
linked bonds and social responsibility bonds.
Among the total proceeds of

578,170 million
145,713 million

,

RMB

RMB

was underwritten by the Bank.

Specifically, the Bank, as a lead underwriter, underwrote

67

green bonds accumulatively,

224,840 million
56,338 million

with total proceeds of RMB
of which RMB,

was underwrittenby the Bank as a lead underwriter.
All the proceeds were invested in the fields such as clean

energy and green development,

effectively supporting green economic development.

The Bank successfully underwrote the largest amount of green bonds of the manufacturingindustry in 2022, fueling the innovative development of new energy private enterprises. The
Bank successfully issued RMB5 billion of green medium-term notes on behalf of a new energy
enterprise, the highest among all green bonds of private enterprises in 2022 and the highest
among all green medium-term notes issued by manufacturing enterprises in the same year. The
Bank effectively provided green financial services for advanced manufacturing enterprises andspared no effort to boost the high-quality development of manufacturing industry.

The Bank successfully underwrote China’s first carbon emission right green asset-backed
bond in an effort to actively assist in clean and efficient utilization of coal. The Bank, as a leadunderwriter, underwrote the country’s first carbon emission right green asset-backed bond. The
bond is a new financing instrument based on the value of carbon assets and guaranteed by carbon
emission rights, with an issuance amount of RMB130 million. The funds raised from the bond will
be used for the steam turbine unit retrofitting project of a thermal power group. After the projectis completed and put into operation, it is estimated that 80 thousand tons of standard coal will besaved and 210 thousand tons of carbon dioxide emissions will be reduced throughout the year,
thus abating the impact on the atmospheric environment quality in the locality of the project andsurrounding areas. It will bring good environmental and social benefits.

The Bank successfully underwrote China’s first green automobile loan asset-backed
securities in free trade zone. The Bank successfully issued China’s first green personalautomobile mortgage asset-backed securities in free trade zone, with an amount of RMB1 billion.
The raised funds were all used as personal mortgage loans for new energy automobile, so as tohelp the organic integration of manufacturing finance and green finance. It plays an exemplary rolein the whole society.

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Industrial and Commercial Bank of China Limited

Column: Cases of investment banking business
The Bank actively cooperated with the National Green
Development Fund

Participating in the preparation of

Actively developing businessthe National Green Development

coordination and cooperation

Fund

relationships

The Bank actively participated in
the preparation of National Green
Development Fund Co., Ltd. (the “FundCompany”). The Fund Company has
a total scale of RMB88.5 billion, of
which the Bank plans to subscribe
RMB8 billion. The Bank holds 9.04%
of shares in the Fund Company. The
Bank paid RMB 800 million and RMB
1 billion share capital in 2021 and 2022
respectively.

The Bank held some ten project promotion
meetings with the Fund Company andprovided a total of more than 60 project
investment clues to the Fund Company.
As at the end of the reporting period, someof those projects had been launched.
The cooperation effectively helped
the Bank and the Fund Company
complement each other’s advantages
and strengthened the Bank’s support togreen and low-carbon industries.

Beijing Branch takes the lead in providing a M&A loan
syndicate in the water treatment industry
In the first quarter of 2022, Beijing Branch handled M&A syndicate business fora central state-owned enterprise in the construction industry to acquire a listed
environmental protection company. The total scale of the syndicate is RMB3.866
billion, of which the Bank provided RMB1.866 billion loans. The target company is aleading water treatment company in China and has great technological strength. It cancomplement the buyer in resource and technology, creating relatively strong synergistic
effect. Supporting the M&A transaction in the water treatment industry in the form of a
M&A loan is in line with the Bank’s policy orientation of supporting green finance andthe environmental protection industry. It has typical and exemplary significance.

2022 Special Report on Green Finance （TCFD） 33

Green investment and financing practice of integrated
subsidiaries
Green fund: ICBC Credit Suisse Asset Management
Farsighted push for green development funds. ICBC Credit Suisse Asset Management issued 14 funds focusing
on ecological environment, new energy, ESG and carbon neutrality, covering actively managed products andpassively managed products in terms of investment methods. These funds mainly include new energy vehicle
hybrid fund, ecological environment industry equity fund, new material and new energy industry equity fund,beautiful town-themed equity fund and CSI 180 ESG ETF. It is a fund company that took the lead in the industry
to engage in products in the field of sustainable development.

Case

Successfully issued a carbon neutrality-themed ETF product

On July 13, 2022, ICBC Credit Suisse Asset Management successfully issued acarbon neutrality-themed ETF product. It is one of the eight products first approved
and issued by the industry to track the SEEE Carbon Neutrality Index. The producthas a good investment capacity in terms of market value and a wide range of industry
coverage, objectively reflecting the overall performance of enterprises that makea great contribution to carbon neutrality in Shanghai and Shenzhen stock markets.
Carbon neutrality ETF will become an important tool to drive sustainable investment
practices and help achieve the strategic goal of carbon neutrality.

The size of green fund products continued to expand.
Active equity fund
As at the end of the reporting
period,the size of ICBCCS New
Materials and New Energy
Fund, ICBCCS Ecological andEnvironmental Industry Fund and
ICBCCS New Energy Vehicle
Fund kept expanding, increasing
to RMB1,646 million, RMB3,401
million and RMB5,704 million
respectively over the end of theprevious year. The three funds
have performed well, with anannualized return of 4.57%,
10.09% and 31.12% respectively
since their inception. Their excess
return compared to CSI 300 Index
was 7.46%, 13.69% and 26.56%
respectively, creating long-term
stable returns for investors.

34

Industrial and Commercial Bank of China Limited

Passive quantitative fundAs an ESG-themed fund, ICBC
Credit Suisse CSI 180 ESG ETF
was the first ETF fund with theinvestment theme of ESG in theindustry, which was issued in
2021. The target index it tracks- CSI 180 ESG Index, is an
ESG stock index developed by
the Modern Finance ResearchInstitute (Office for Deepening
Reform) in cooperation with
China Securities Index Co.,
Ltd. The fund outperformed thebenchmark in 2022.

Green leasing: ICBC Leasing
ICBC Financial Leasing Co., Ltd., a wholly-owned subsidiary of the Bank, kept improving its investment
and financing structure, and specially strengthened service support for clean energy, green shipping, energy
conservation and environmental protection and other green industries. It optimized business structure, andcomprehensively utilized the “leasing + loan” model to satisfy the diversified financing needs of enterprises andimprove its own green financial services.

As at the end of the reporting period
Green leasing accounted for about

40%

The balance of the company’s green leasing
business (under the CBIRC’s criteria) was aboutof the company’s total domestic financial leasing balance

RMB

According to the types of green industries, of thebalance of green lease,43,603 million

An increase of RMB

1,758

million compared with theend of the previous year

Case

green transportation accounted for 66.94%
Construction and operation of clean energy
facilities accounted for 28.39%
Pollution control and manufacturing ofgreen transportation equipment, facilities
and products accounted for 4.67%

Supporting a French shipping company’s dual-fuel container ship projectIn 2020, ICBC Leasing granted a USD630 million financing lease for a French shipping
company’s five new container ships, two of which were oil and natural gas dual-fuelpowered ships. This ship type can reduce 25% of carbon dioxide emissions, 99% of sulfur
dioxide emissions, 99% of particulate matter emissions and 85% of nitrogen oxide emissions
compared with the same type of heavy oil-fueled ships in the market. The ships increased
its Energy Efficiency Design Index (“EEDI”) by 20%, taking into account environmental
protection and economic effectiveness.
The first dual-fuel ship of the project was delivered at Shanghai Jiangnan Changxing
Shipyard in the first half of 2022. It is the first time LNG fuel propulsion mode has been
applied to such container ships, which is of pioneering significance and a financial means toenhance the manufacturing capacity of Chinese shipyards.

Case

Continuing to promote the development of wind power industry

During the reporting period, ICBC Leasing completed the leaseback of no more than
RMB500 million of a company’s wind power assets, and had granted loans of RMB285
million for the project accumulatively. The leased property of the project is the wind power
generating units and tower tubes, which are the core assets of production and operation.
The 200MW wind power project which is affiliated to the assets is one of the wind power
projects of a 10-million-kilowatt wind power base in Hami. The project uses the UHV DC
transmission line for “wind, light and fire bundling” long-distance power transmission. It isa part of the national demonstration project. This project is the first large-scale new energy
project independently developed by the company, and also the largest single wind power
project that has been connected to the grid.

2022 Special Report on Green Finance （TCFD） 35

Green insurance asset management: ICBC-AXA
As the main manager of the assets of ICBC-AXA Assurance Co., Ltd., ICBC-AXA Asset Management
implemented the carbon peak and carbon neutrality strategy and served the green transformation of the real
economy, focusing on the application of insurance funds.

In the field of green bonds
ICBC-AXA Asset Managemen supported the development of local green and low-carbon industries byinvesting in green bonds. As at the end of the reporting period, the balance of the company’s green bondinvestment using ICBC-AXA Assurance’s insurance funds reached RMB250 million, and the balance ofgreen bond investment using portfolio insurance asset management products stood at RMB100 million.
The proceeds from the green bonds invested by the company were used in local metro construction,
helping Wuhan, Chongqing and other regions to reduce carbon dioxide emissions by more than 100 tons.
Take Chongqing and Guangzhou as an example, the bonds held by the company’s portfolio products
could save 360 tons and 18.35 tons of standard coal annually, and reduce 760 tons and 38.39 tons ofcarbon dioxide emissions. Meanwhile, the company supported the construction of rural revitalization,
ecological protection, green and low-carbon projects in various regions by investing in local government
special bonds. As at the end of the reporting period, the balance of relevant bonds exceeded RMB30
billion, helping to promote the sustainable development of local economy.

In other green investment fields
ICBC-AXA Asset Management has invested in the clean energy projects of State Power Investment
Corporation Limited (“SPIC”) and China Huadian Corporation, and the green and low-carbon energy
projects such as China Minmetals Corporation’s lithium battery base project. Specifically, the proceedsfrom the China Life Insurance – SPIC clean energy equity investment program for which the company has
subscribed were used to invest in the LP shares of the SPIC carbon neutrality fund. The fund has passed thehighest level (G-1) standard certification of CCXGF, making it the first green certified low-carbon industry
investment fund in China. As at the end of the reporting period, the balance of the company’s green
investment in clean energy using ICBC-AXA Assurance’s insurance fund was about RMB2.35 billion.

Case

ICBC-AXA - Hainan Holdings debt investment program for hydrojunction green infrastructure

On August 3, 2022, the “ICBC-AXA - Hainan Holdings debt investment program forhydro junction green infrastructure” initiated by ICBC-AXA Asset Management Co., Ltd.
and under the custody of the Bank’s Hainan Branch was successfully registered with theInsurance Asset Management Association of China. The issue size was RMB1.2 billion andthe term was five years. By the end of the reporting period, the program had raised RMB600
million. The invested projects were the Nandu River Maiwan Water Control Project and theBeimen River Tianjiaotan Water Control Project in Hainan Province, both of which wereamong the 172 major water conservancy projects of the State Council, and the key projectsof Hainan Province to optimize the allocation of water resources, build the flood control
system, improve the ecological environment and support the development of industry andagriculture.
As the first green insurance debt investment program of ICBC-AXA Asset Management,
the program complies with the Green Bond Endorsed Projects Catalog (Version 2021),
the Green Industry Guidance Catalog (Version 2019) and the Green Bond Principles(Version 2021), and meets the requirements of the highest green certification standard (G1), according to the assessment of Lianhe Equatorial Environmental Assessment Co., Ltd.
In the “2022 China Insurance Ark Award Selection” sponsored by the Securities Times, theprogram won the “2022 Innovative Insurance Asset Management Product Ark Award”.

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Industrial and Commercial Bank of China Limited

Green equity investment: ICBC Investment
ICBC Investment has given full play to its role as a major player in market-based debt-to-equity swap andfocused on the national policy of deepening the supply-side structural reform and the strategy of carbon peak andcarbon neutrality. It has increased support for green and low-carbon development and optimize the investmentlayout of green assets through market-based debt-for-equity equity investment. While serving enterprises’
leverage reduction or stabilization, mixed-ownership reform and investment attraction, reorganization andintegration and poverty alleviation through reform, ICBC Investment deepened coordinated supply of equity withcredit loans and bonds, promoting high-quality development of the real economy.

As at the end of the reporting period
The balance of the green finance investment stood at
RMB

46.6 billion
21%

Accounting forGreen finance accounted for more than

25%of the newly increased investment in the year.
More than83%of the investment was made infive key regions, i.e., Beijing-Tianjin-Hebei, the Yangtze
River Delta, Guangdong-Hong Kong-Macao, ChengduChongqing, and central China

Case

The debt-for-equity swap project of a wind power company

A group is the largest nuclear power enterprise and the second largest clean energy enterprisein China, and its wholly-owned subsidiary, a wind power company, has sufficient reservesof wind power and photovoltaic resources. As at the end of 2020, the Group introduced
strategic investors for the purpose of capital increase of the wind power company. It
successfully introduced strategic investors at the end of November 2021, attracting total
strategic investment of RMB30.53 billion.
ICBC Investment and relevant partners set up the largest investment consortium in the same
industry as an important move to respond to the national “carbon peak and carbon neutrality”
goals, boost the development of China’s energy industry, actively participate in the threeyear action plan for state-owned enterprise reform, and provide support for the sustainable
and high-quality development of the group’s new energy business.

Case

The debt-for-equity swap project of an automobile company

An automobile group is one of the top 10 high-quality enterprises in China’s automobile
industry in terms of comprehensive strength. In 2022, the Group introduced strategic
investors for investment in one of its core subsidiaries, and formally completed theintroduction of strategic investors in October 2022, attracting a total investment of RMB18.3
billion.
ICBC Investment joined hands with 52 industrial investors, leading investment institutions
and national and local investment institutions.The project was the largest single private
equity financing in the domestic new energy vehicle industry in recent years, providing an“investment sample” for broadening the development path of new energy vehicles in China,
facilitating the upgrading and development of the automobile industry, and promoting green
transformation.

2022 Special Report on Green Finance （TCFD） 37

Green wealth management: ICBC Wealth Management
During the reporting period
ICBC Wealth Management comprehensively utilized various tools to satisfy diversified financing needs ofenterprises and support the development of key fields of green industry. The proportion of green finance investment
further increased. The Bank actively issued green finance and ESG-themed financial products to enhance its green
financial service capacity. In the selection of 2022 China awards sponsored by The Asian Banker, CSI-ICBC WealthManagement Carbon Neutrality and Asset Allocation Index and green finance-themed wealth management products
were awarded the “Best Asset Management Product in Green and Sustainable Finance”.

In the field of green bond investment
ICBC Wealth Management actively invested in green corporate bonds, green financial bonds, green
asset-backed securities and other green bonds. During the reporting period, it invested in green
bonds of enterprises such as Three Gorges New Energy, GD Power, China Huaneng, Datang New
Energy, CGN Wind Power, Sichuan Energy Industry Investment, China Energy Conservation andEnvironmental Protection Group, Everbright Environmental Protection, Guizhou Water Investment
Group, Suzhou Natural Gas, Sany Heavy Industry and Geely Holding Group.

In other green investment fields
During the reporting period, ICBC Wealth Management launched typical agency debt investment
business related to green finance, including the construction of service infrastructure such as Hubei
Communications Investment, improvement of energy efficiency of Xinjiang New Energy, andshutdown of backward production capacity of Shandong Iron and Steel. Meanwhile, it also invested
in Penghua Shenzhen Energy REITs, the first clean energy infrastructure REITs in the market.

Case

ICBC Wealth Management actively issued green finance and ESG wealthmanagement products
In October, November and December 2022, three ESG-themed optimal wealthmanagement products were successfully issued, with a total scale of RMB310
million, filling the gap of related products of ICBC Wealth Management.

In terms of investment, the Bank fully practiced ESG investment philosophy, actively
invested in credit assets and bonds that meet ESG standards, and focused on investment
opportunities of green bonds and carbon neutrality bonds. It has selected mutual funds,
ETFs, preference shares and other qualified products.
In terms of products, all the products were fixed income products, which adopt a closed
operation mode of no more than two years to provide customers with a more prudent holding
experience. The three products have maintained stable operation since their establishment.
The successful issuance and operation of ESG-themed optimal wealth management
products has laid a solid foundation for the subsequent expansion of ICBC WealthManagement’s ESG products and better services for green finance.

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Industrial and Commercial Bank of China Limited

Column: Innovation practice in pilot zones for green
finance reform and innovation
The pilot zones for green finance reform and innovation serve as the pioneer in green finance reform andinnovation. The Bank thoroughly implemented the national strategic plan, providing persistent and strong
financial support for promoting the ecological conservation and building the bridgehead of green financein the pilot zones. The Bank issued the Guidelines for Promoting Financial Services in the Pilot Zones forGreen Finance Reform and Innovation in 2020. The documents set forth five major tasks (namely, improving
the green finance organization framework, continuously increasing investment and financing support forgreen industries, focusing on strengthening supporting measures, strengthening environmental and social risk
management and improving the day-to-day work mechanism) and 16 specific actions, so that all institutions
are able to play a better leading role in the local green finance reform and innovation.

∥

Zhejiang Huzhou Branch accelerated the construction of a green
financial service system focusing on “carbon emission reduction”

Zhejiang Huzhou Branch, as one of the pilot institutions of green finance at the Head Office level,
actively promoted the innovation of green financial products, services, business patterns andmanagement focusing on “one thread, five mechanisms and N products”.
One thread – Taking the construction of “carbon neutrality” banks as the thread, refining work measures,
formulating action plans, and preparing a three-year plan for the development of green finance.
Five mechanisms – Thoroughly implementing the “five mechanisms”.
◇ Improving the green financial organization mechanism. Huzhou Branch has successively set
up a green financial service center and a green financial task force under the charge of the head of
institution, and set up a green financial service team.
◇ Improving full-process green credit management mechanism. Huzhou Branch included carbon factors in
the whole process of credit management, established a green credit operation system of “risk identification– classification – assessment – control – monitoring”, and took the carbon performance of investment andfinancing customers as an important basis for overall assessment and credit decision.
◇ Establishing the mechanism to forestall and defuse green financial risks. Huzhou Branch strictly
implemented the one-vote veto system for environmental protection, continuously carried out
environmental information disclosure, and conducted climate risk stress tests.
◇ Establishing a green finance results-oriented assessment mechanism. Green finance was linked
for a long time with the performance of relevant departments and persons in charge.
◇ Establishing a green finance talent cultivation mechanism. Huzhou Branch strengthened the inhouse training and promoted the green development philosophy throughout its jurisdiction.
N products – Expanding and enriching the green financial service system.
◇ Forming a “green park service program” integrating “green organic renewal loan”, “green purchaseand construction loan” and “green leasing loan”.
◇ Developing a “green ecological rural service program” integrating “green renovation loan”, “green
scenic spot loan” and “green homestay loan”.
◇ Launching an innovative “green common prosperity service program” including “green breedingloan”, “green seedling loan” and “green rural development loan”.
◇ Increasing financial support for green and environmental protection fields such as clean energy andecological restoration.
◇ Launching “zero carbon loan” and carbon quota pledge financing, expanding the application of“industrial carbon efficiency code” in the financial field, developing “Carbon Benefit e Loan”, an
online product, and effectively implementing “carbon footprint management”.
Besides, Zhejiang Huzhou Branch actively explored the fields such as pilot carbon accounts of key
customers, the application of ESG assessment system, and the relationship between carbon sinks inbamboo forests and biodiversity conservation.

2022 Special Report on Green Finance （TCFD） 39∥ Jiangxi Branch actively advanced green finance development in key regions
Jiangxi Branch issued the Implementation Opinions of Jiangxi Branch on Supporting Green
Finance Development of Ganjiang New Area Branch, to further the comprehensive economic
and social development and green and low-carbon transformation of the pilot zone, and provide
replicable experience for the building of green finance in the Bank.
As at the end of the reporting period, the balance of green loans to institutions in Ganjiang New
Area reached RMB3,923 million, an increase of RMB1,258 million or 47.21% over the beginningof the year. In June 2022, Ganjiang New Area Branch signed a cooperation agreement with
Jiangxi Public Resources Exchange Group Co., Ltd. to achieve Ganjiang New Area Branch’s
carbon neutrality in May 2022 and carbon neutrality in advance from June 2022 to May 2023
by purchase of forestry carbon sink, which has been assessed and certified by Jiangxi Carbon
Emissions Trading Center. Gangjiang New Area Branch has become the first branch of the Bank
to achieve carbon neutrality in Jiangxi Province.

∥ Xinjiang Branch played an exemplary role in pilot zones
The balance of green loans of tier-two branches in Hami, Changji and Karamay, three pilot zones,
reached RMB17,746 million at the end of the reporting period, an increase of RMB1.52 billion
or 9.37% over the beginning of the year. Hami Branch focused on supporting the constructionof new comprehensive energy base and the clean and efficient development and utilization ofcoal resources. As at the end of the reporting period, the balance of green loans was RMB10,611
million, accounting for 60% of total loans, ranking first in the industry. Changji Branch supported
the key green project of Zhundong Energy Base, developed new markets such as advanced
manufacturing industry, strategic emerging industries, cultural tourism industry, and funded
green projects such as smart grid, clean energy, tourism, and resource recycling. As at the end of
the reporting period, the balance of green loans reached RMB6,299 million, ranking first in theindustry. Karamay Branch actively conducted environmental information disclosure, and released
environmental information disclosure reports for 2021, the first quarter of 2022 and the first halfof 2022 through the political and financial platform. The branch focused on supporting projects
such as oilfield natural gas recycling, water saving facilities, and landscaping. As at the end of
the reporting period, the balance of green loans reached RMB836 million.

∥ Gansu Branch deepened the reform and innovation of green financeGansu Branch actively participated in the brand building of the pilot zone for green financereform and innovation in Lanzhou New Area, and participated in the formulation of green financemanagement documents such as the Implementation Plan, the Five-year Development Plan ofGreen Finance, the Implementation Rules and the Green Finance Standards of the pilot zone forgreen finance reform and innovation in Lanzhou New Area. The branch supported the building
and launch of the “Green Finance Connect” platform, a comprehensive green financial service inLanzhou New Area. Since the platform was launched, the branch has provided enterprises with
RMB 2 billion of financing support by releasing various credit products. The branch establisheda regular communication mechanism with relevant government departments in Lanzhou New
Area, conducted regular and irregular business connection, and provided comprehensive green
financial products and services for enterprises within its jurisdiction. The branch held the“Gansu·Qilian Mountains Forum” for five consecutive times, and adhered to practice thephilosophy of green development.

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Industrial and Commercial Bank of China Limited

∥

Guizhou Branch actively carried out various pilot projects ofgreen finance and innovation in Gui’an New Area

reformGuizhou Branch actively carried out various pilot projects of green finance reform and innovation in
Gui’an New Area, focusing on green manufacturing, green transportation, big data, ecotourism andother fields in Gui’an New Area, and determined the development goal of “Two Growth, Two Higher,
and Two Innovation” for green finance in Gui’an New Area.
In recent years, Guizhou Branch continued to increase the differentiated resource support for green
finance in Gui’an New Area, and supported the construction of outstanding green projects in Gui’an
New Area. It granted RMB4.5 billion of loans for the construction of Gui’an Road, Baima Road,
Guihong Road, Qingyang Road and other sponge city roads in Gui’an New Area, and RMB900
million of project loans for the Phase II project of the standard workshop in Gui’an New Area
Electronic Information Industrial Park. In the meantime, through the syndicated approach, the Bank
granted loans of RMB300 million and RMB183 million for Guizhou Gui’an Hospital (Phase I) project
and a company’s cloud data center project in Gui’an New Area, in an effort to fully serve the “carbon
peak and carbon neutrality” goals, and continuously increase support for green development.
Guizhou Branch actively pushed forward green bills re-discounting, and realized the rediscounting of green bills of RMB100 million. While providing low-cost financing for green
enterprises and deepening bank-enterprise cooperation, the branch has opened up the rediscounting channel for green bills, and assisted in the targeted implementation of innovative
monetary policy tools in the green field.

∥

Guangzhou Branch went all out to support the building of pilot
zones for green finance reform

Guangzhou Branch made every effort to help Huadu Branch in Guangzhou Green Finance
Reform and Innovation Pilot Zone to improve the quality and efficiency of services forgreen economy. During the reporting period, Guangzhou Huadu Branch recorded thebalance of green loans of RMB7,094 million, an increase of RMB2,534 million or 55.6%
over the beginning of the year.
Guangzhou Huadu Branch has established a leading group for green finance businessdevelopment and a green finance business department, formulated green credit assessment
methods, and adhered to the principles of “preferential interest rates, scale guarantee,
efficient services, and complete risk control” in helping promote the development of thegreen credit industry in the region.
The branch actively utilized the industry-finance alignment platform to actively align all
green enterprises and projects in Huadu region. For enterprises that met green standards,
the branch provided preferential interest rates and green approval channels to accelerate
the launch. During the reporting period, the Bank expanded the size of green credit from
Guangzhou projects to national projects, focusing on the construction of the national green
smart cold chain logistics demonstration base project of a cold chain company, and a newenergy project.

2022 Special Report on Green Finance （TCFD） 41

Practical Cases of Green Investment and Financing Innovation
Green transformation of service development mode
Shanghai Branch promoted the construction and operation of passenger and freight railways and the energy saving and environmental
protection upgrading of railways in the Yangtze River Delta region using the “headquarters-to-headquarters” mode

Leveraging its leading role in the Yangtze River Delta and alignedwith various business of Shanghai Railway Administration in the
Yangtze River Delta region, Shanghai Branch actively supported“Shanghai-Suzhou-Huzhou High-speed Railway”, “ShanghaiNantong Railway Phase I” and other newly built railway projects
as well as green transformation projects such as the “Qingfu
Railway Electrification Transformation”. In 2022, Shanghai
Branch took the lead in completing the overall inquiry of 12loans, winning bids of RMB8.41 billion, ranking first in theindustry. In the year, railway loans increased by RMB2.45 billion,
and the proportion of green loans rose to 96.69%.

Zhejiang Jinhua Branch actively promoted carbon account finance business

Zhejiang Jinhua Branch granted a carbon account finance project loan to a company

Jinhua city is one of the five pilot cities for carbon accountfinance determined by Zhejiang Provincial Government. In
accordance with the Operation Guidelines for Carbon AccountCredit Business in Jinhua City issued by the local office of thePeople’s Bank of China, Zhejiang Jinhua Branch strengthenedcarbon account finance cooperation with enterprises above
designated size, included carbon account finance in thewhitelist of key structural indicators, and actively promoted
carbon account finance business by means such as ensuringcredit resources, implementing preferential interest rates andestablishing green channels for green and low-carbon enterprises
with reference to carbon credit reports and carbon efficiency
ratings. As at the end of the reporting period, a total of RMB
281 million of carbon account finance loans had been granted.

Qinghai Branch supported key counties to receive assistance in pursuing rural revitalization with green credits
Qinghai Branch actively implemented the guideline for financial support for rural economic development, and granted a RMB1.5
billion green project loan for the “Huaneng Photovoltaic 500,000-kW Construction Project of Hainan 3 million-kW Base” of acompany in Hainan Prefecture in line with the requirements for green finance development. The project is located in Gonghe County (akey county of China to receive assistance) at the northeast edge of the QinghaiTibet Plateau (its east gateway) and to the south of Qinghai Lake. The terrain ismainly comprised of plateau mountains, with an average altitude of 2,460 meters,
and there is plenty of sunlight throughout the territory.
The project loan greatly helped Qinghai give full play to its comparativeadvantages of local resources, and effectively promoted the spatial gathering ofsocial resources through infrastructure construction of clean energy, resource
recycling, natural ecological protection and other fields in the counties of the state
to receive assistance. The project played a positive role in absorbing the labor
force of the counties to receive assistance, and improving local employment
and industrial structure. It deepened the national rural revitalization strategy andlocal green sustainable development, and achieved significant environmental,
economic, and social benefits.

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Industrial and Commercial Bank of China Limited

Qinghai Branch supported key counties to receive assistance inpursuing rural revitalization with green credits

Tianjin Branch supported the construction of “salt-solar complementary” power generation projectThrough innovative service models, Tianjin Branch took the lead in providing RMB2.5 billion of financing support for agroup’s 1,000MW “salt-solar complementary” centralized photovoltaic power generation project in Tianjin Binhai New Area.
So far, a total of RMB843 million of upfront loans have been granted for the project.
The project adopted the “salt-solar complementary” mode. While not affecting the normal production of Changlu Haijing
Salt Field, the project fully utilized the water surface of about 24 thousand mu salt field to build photovoltaic arrays, with an
installed capacity of 1GW and a design life of 25 years. The project is expected to save about 540 thousand tons of standard
coal for power generation, and reduce the emissions of about 1.36 million tons of greenhouse gas and nearly 700 tons ofatmospheric pollution gas annually. The project is of great significance to the building of a local clean and low-carbon energy
system and alleviation of structural contradictions between energy supply and demand.

Newly built 1,000MW “salt-solar complementary” centralized photovoltaic power generation project in Binhai New Area, Tianjin

Hunan Yueyang Branch supported fishery-photovoltaic complementary power generation project
Hunan Yueyang Branch increased support for green and environmental protection projects and actively participated in the
syndicated project for the “Tuoxihu Phase I 100 MW fishery-photovoltaic complementary power generation in Huarong
County of Yueyang” of a company. By the end of the reporting period, Yueyang Branch had granted a total loan of RMB158
million for the project. The project is a photovoltaic power plant adopting the “photovoltaic + fishery” development modeland combining aquaculture and photovoltaic power generation. It installs photovoltaic modules on fishponds, and conducts
aquaculture in the waters below the modules, forming a new
power generation model of “generating electricity whileraising fish”. The project was the first 220KV outgoing
photovoltaic power plant in Hunan Province, with an averageannual power generation of about 120 million kWh. The
project can save about 52 thousand tons of standard coaland reduce emissions of about 101,200 tons of greenhousegases annually. The project can alleviate the power supply
contradiction of the local power grid, increase the proportionof renewable energy in the energy structure, and is of greatsignificance to improving the local energy system andTuoxihu Phase I 100 MW fishery-photovoltaic complementary power generation
boosting local economic development.
project in Huarong County, Yueyang

Chongqing Branch supported intelligent manufacturing projects of manufacturers of major
lightweight automobile parts
Lightweighting of automobile can effectively reduce vehicle oil consumption, and “replacing steel with plastics” isan effective way to achieve the lightweight automobile development. The application of plastic parts in automobile
will become increasingly widespread. A company in Chongqing focused on providing downstream automotive
manufacturers with seven categories of automotive fuel pipeline
assemblies comprising over 2,000 specifications, which are mainly
made of polymer materials such as nylon. The project has strong
technical strength and good development prospects.
In order to meet the company’s fund demand for the constructionof intelligent manufacturing projects, Chongqing Branch optimized
the review and approval process, and innovated mortgage guarantee
methods. The branch successively granted a project credit of RMB50
million and an unsecured credit of RMB70 million for the company,
strongly supporting the development of green manufacturing.

2022 Special Report on Green Finance （TCFD） 43

Supporting environmental pollution prevention and control
Xinjiang Branch provided financial support for Dujuan River regulation PPP project for the sake ofurban environmental improvement
Dujuan River regulation PPP project, located in Dujuan River (Phase IV) of Korla, is mainly intended to improve the Dujuan River
course and its surrounding ecological environment, and implement greening, lighting, fitness and wetland park programs. As a key
livelihood project in Korla City, the project is of great significance for improving the service functions of infrastructure in Korla.
Xinjiang Branch granted a loan of RMB300 million for the project, with abalance of RMB245 million as at the end of the reporting period. The loan
was used to help Korla City innovate the water resource utilization mode, andregulate the river course in line with the domestic wastewater treatment andrecycling project. The city will build urban wetlands along the Dujuan River,form a new green ecological development corridor, and comprehensively
improve the ecological environment of 11.9 kilometers of the Dujuan
River and 3,600 mu of surrounding land. It is an ideal place of leisure andentertainment for citizens, with significant environmental and social benefits.

Dujuan River after regulation

Specific asset-backed financing project of Suzhou Branch for sewage treatment
A sewage treatment company in Suzhou is mainly responsible for the collection and treatment of sewage from all water
jet looms in Taoyuan Town. The treated reclaimed water is fully recycled to achieve zero sewage discharge. Pledged by
the right to charge sewage treatment fee on the “49-thousand-ton wastewater recycling” project that has been completed
and put into operation by the enterprise, Suzhou Branch designed a specific asset-backed financing project loan witha term of 25 years for the company. The innovative model granted
RMB450 million of specific asset-backed financing project loan
accumulatively for the company, which was used to replace all its
outstanding working capital loans. After its implementation, theproject will play a good role in improving the water quality andprotecting the environment of the water system in Taoyuan Town,
with significant environmental, social and potential economic
benefits. The branch has declared green financial innovation productof financial institutions in Suzhou for the project as a key featured
Specific asset-backed financing project for sewage treatment of a
project of ICBC.
company in the Yangtze River Delta demonstration area in Suzhou

Henan Xinyang Branch supported the Huaihe River diversion and water supply & irrigation projectin the old revolutionary areas in Dabie Mountains
Henan Xinyang Branch actively implemented the rural revitalization strategy and green development strategy of the central
government, and approved a loan of RMB1.6 billion for a company’s “PPP project of Huaihe River diversion and watersupply & irrigation project in the Dabie Mountains old revolutionary areas of Henan Province”. Of the loan, RMB140
million has been granted.
This project, as a “Xixian Hub”, is a large backbone water source project on the Xinyang section of the Huaihe River,with a storage capacity of 120 million cubic meters. It can provide 62 million cubic meters of water for farmland irrigation
annually, thus significantly improving the regional drought resistance and disaster reduction capacity. It can also increase
irrigation area by 357 thousand mu and annual grain output by 93.5 million kilograms. With an annual irrigation benefit of
RMB107 million, the project will benefit 227,500 people and increase annual income per capita by RMB471 in irrigation
areas. The project not only can achieve high grain output and increase farmers’ income in irrigation areas, but also will
provide important support for the successful fulfillment of grain output tasks
in Xixian County and Huaibin County. It is of great significance for ensuring
national food security.
Apart from irrigation, the project will also provide stable and reliable surface
water sources for the use of urban domestic water in Xixian County andHuangchuan County, with an average annual water supply of 103 million
cubic meters and a probability of water supply of 95%. It can ensure the safetyof urban water use, and benefit 1.03 million people. Using Huaihe River waterto replace groundwater as urban domestic water in the two counties can not
only ensure the safety of water use for residents, but also recharge groundwateralong the Huaihe River and in the urban areas of Xixian County. It will
significantly improve the regional water ecological environment.

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Industrial and Commercial Bank of China Limited

Huaihe River diversion and water supply & irrigation projectin the old revolutionary areas in Dabie Mountains

Shenzhen Branch successfully launched the first digital supply chain financing in the environmental
protection industry
Shenzhen Branch successfully launched the first digital supply chain financing for a group company. The
company is a leading enterprise in comprehensive waste and leachate treatment in China and a major domestic
manufacturer of waste treatment equipment. Relying on cuttingedge technologies such as blockchain and ICBC e Credit digital
supply chain products, Shenzhen Branch worked with multiple
entities such as core enterprises and chain enterprises in thegreen industry chain to rapidly transmit high-quality credit ofcore enterprises to the “nerve endings” of multi-level upstream
suppliers, provided convenient and efficient financing services
for small and medium-sized suppliers at all ends of the chain,
improved the financing efficiency of small and medium-sizedenterprises, reduced financing costs, realized the integrationof industry and finance, and assisted in the operation anddevelopment of environmental protection industry.
Shenzhen Branch successfully launched the first digital supply chain
financing in the environmental protection industry

Anhui Branch supported barren mountain control project
Anhui Branch actively explored and supported a barren mountain control and construction project to increase theeffective amount of cultivated land, and became a pioneer and leader of green finance in the field. The branch designed
a customized financing plan for the “Chengjiangshan comprehensive land consolidation project in Duji District” ofa construction and investment company in Anhui, and has granted a total loan of RMB193 million for the project.
After completion of the project, 290 thousand square
meters of land was consolidated and leveled, 435 mu of
agricultural land was consolidated, and 25.4 thousandsquare meters of roads were built. Furthermore, farmland
water conservancy projects and farmland protectionand ecological environment protection projects wereconstructed. The project can effectively improve theecological environment, promote the saving and rationaland efficient use of land resources, and enhance thecomprehensive carrying capacity of land resources.

Chengjiangshan comprehensive land consolidation project in Duji District

Xiamen Branch supported the waste incineration power plant project
The Phase II project of the Eastern Waste Incineration Power Plant carried out by a company in Xiamen City started
operation in October 2020. Currently, the project disposed ofan average of 45.5 thousand tons of garbage and generated ongrid electricity of 18.65 million kWh monthly. The project will
effectively alleviate the pressure of living garbage disposal
brought about by the population growth in Xiamen City. Xiamen
Branch granted a project loan of RMB200 million with a termof no more than 15 years. The loan can be unsecured, and uponcompletion of the project, the proceeds from the project will be
used as pledge for the project loan.
After the project is completed and put into operation, it can
incinerate 547.5 thousand tons of domestic waste, generate about
250 million kWh of electricity, save about 100 thousand tonsof standard coal, and reduce about 180 thousand tons of carbon
dioxide emissions annually.

The plant of Phase II project of the Eastern Waste Incineration Power Plant
in Xiamen2022 Special Report on Green Finance （TCFD） 45

Helping to improve the diversity, stability and sustainability of ecosystem
Guangdong Branch granted the first loan pledged with expected right to earnings on marine
carbon sink
Nan’ao County, Shantou, Guangdong Province, has rich marine resources and a good foundation for the marine
aquaculture industry. Nan’ao oysters are one of the main specialties of Nan’ao County. During the growth of oysters,
they can immobilize and synthesize carbon dioxide in water bodies into oyster shells and soft tissues, thereby reducing
greenhouse gas concentrations.
Guangdong Branch assessed the carbon sink that can be generated by the oysters raised by a marine farmer in Nan’ao
County, used the expected realizable right to earnings on carbon sink as pledge with reference to market prices, andregistered and announced the pledge through the unified movable
property financing registration and announcement system of
the Credit Reference Center of the People’s Bank of China. In
September 2022, it took the lead among all financial institutions in
the province to successfully grant a loan pledged with the expectedto earnings on marine carbon sink, amounting to RMB500
thousand. It was also the first loan pledged with the expected rightto earnings on marine carbon sink in the Bank, revitalized thecarbon sink ecological products in the ocean, and blazed a newpath for the realization of the value of marine carbon sink productsin the province through financial support.
Guangdong Branch granted the first loan pledged with expected right toearnings on marine carbon sink

Jiangsu Branch supported modern marine ranch project
A company’s modern marine ranch project (Phase I) is located in Binhai County, Yancheng City, Jiangsu Province,with a total investment of RMB408.9 million. The project will build a multi-functional comprehensive platform formarine ranching, artificial fish reefs, and other ancillary facilities,
and purchase supporting vessels and aircraft. The project has been
included in the list of major agricultural and rural projects in Jiangsu
Province, aiming to establish the “first national marine ranchdemonstration area” in Yancheng and the “first land-sea integrated
marine ranch demonstration area” in Jiangsu Province.
Jiangsu Branch actively contacted the project implementation entity,
developed a customized financing plan for customers, efficiently
approved a loan of RMB280 million for the project and initiallygranted RMB150 million. The successful implementation of the
project indicates that Jiangsu Branch has achieved new progressin providing financial support for high-quality development of thecoastal economy of the province.

A marine ranch project in Binhai County, Yancheng City

Sichuan Branch supported biodiversity conservation in Wawu Mountain
The Wawu Mountain comprehensive tourist project is located in
Wawu Mountain National Park, and Sichuan Branch approved a loanof RMB1 billion for the project. In credit investment, the branch
not only paid attention to the key points of project financing, butalso closely followed the impact of the project on the surrounding
ecological environment and biodiversity in consideration of
the particularity of the project. Currently, the Wawu Mountaincomprehensive tourist project has been basically completed and beenhome to a variety of rare animals and plants, perfectly combining
tourist development and biodiversity conservation and harmonizing
human with nature.

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Industrial and Commercial Bank of China Limited

Wawu Mountain National Park in Sichuan

Fujian Sanming Branch supported the construction of carbon sink forest
A forestry company in Fujian, as a leading forestry enterprise in China, has largest certified stock of timber forests in thecollective forest regions of southern China. The construction site of the company’s carbon sink forest project is rich inforest resources, with over 1,000 species of plants in the county where the company is located, and 539 species of wild
plants belonging to 127 families have been identified.
Fujian Sanming Branch, relying on the rich local forest
resources and the government’s supporting policies andmeasures for forest reform, launched a carbon sink forest
reserve loan secured by the ownership and use rights oftrees and the predictable receivables from carbon sink after
completion of the project, and granted a cumulative project
loan of RMB100 million to the company’s “150 thousand mu
carbon sink forest construction project”. It is expected that thecompletion of the project will gradually increase the forestry
carbon sink volume, enhance the forestry carbon sink capacityand ecological service functions, and further protect the plant
diversity of the region.

Fujian Branch supported a forestry enterprise’s 150 thousand mu carbon sinkforest construction project

Guangxi Branch supported the construction of a national wetland park project

Beihai National Coastal Wetland Park

BeihaiNational Coastal Wetland Park is the only national
wetland park in Guangxi. The wetland treatment project of thepark includes eight major projects, including source control
and pollution interception, endogenous pollution treatment, theDaguansha reclaimed water plant and water refill pipes, water
conservancy and river channel, ecological restoration, sponge
city, landscape project and smart water system. As the project
leader, Guangxi Branch granted a total of RMB903 million
loans for the project during the reporting period. Currently, theproject has been basically completed and selected as a typicalcase of ecological restoration with Chinese characteristics. The
complex wetland ecosystem composed of multiple wetland
types breeds a rich and diverse variety of wetland organisms,
and has become an urban park with clusters of egrets andblooming flowers, forming a new pattern of harmony between
human and nature.

Dalian Branch supported medical aid, protection research, and popular science education related tomarine animals
A local company in Dalian is engaged in marine animal rescue, breeding research, and science popularization. Its marine
park is a featured park that integrates marine animal protection, marine life exhibition, and marine popular scienceeducation. With a variety of rare animals, the company
once assisted in rescuing harbor seals as a major
member of a wild animal rescue organization.
Relying on the Bank’s various technical channels andplatforms such as acquiring system and electronicbanking, Dalian Branch provided diversified financial
services, especially the specific asset charging
rights-backed loans, to meet the daily operations,capital and other needs of the enterprise, support thedevelopment of its marine park, assist the enterprisein carrying out marine life protection, and accelerate
the development of regional environmental protection
and green finance.

Dalian Branch supported medical aid, protection research, and popular science education
related to marine animals

2022 Special Report on Green Finance （TCFD） 47

Supporting energy system construction under the goals of carbon
peak and carbon neutrality
ICBC successfully launched first project loan for carbon capture, utilization and storage (“CCUS”)
In October 2022, the Bank’s first CCUS project loan, which is also the first refinancing in the field of carbon emission
reduction technology declared by the Bank to the People’s Bank of China, debuted successfully in Shandong. RMB190
million will be granted in the early stage for the construction of a petrochemical company’s “1-million ton-per year
carbon dioxide recycling project”.

A petrochemical company’s 1-million ton-per year carbon dioxide recycling
project

The project is the first million ton-level CCUS project in China
and it is also the largest CCUS entire industry chain demonstrationbase and model project in China. The project used cryogenic andcompression technology to capture and purify the carbon dioxide
generated in the production process. Through green and lowcarbon transportation methods, the carbon dioxide was transported
to the oilfield and then injected into the oil well so as to increase
the mobility of the in-place oil, improve the oil recovery ratio andextend the life of the oil well. Meanwhile, carbon dioxide canbe stored underground by replacing oil and gas, dissolving andmineralizing. When completed, the project is expected to store 1
million tons of carbon dioxide annually, and increase the output of
2,965,000 tons of crude oil in the next 15 years.

Beijing Branch assisted a wind power project in successfully issuing the largest blue bond in the market
The blue bond is an innovative debt financing tool and one of the subcategories of green bonds. All the funds raised fromthe bond will be invested in the sustainable marine economy, and play an important role in promoting marine protection
and sustainable utilization of marine resources. As the lead underwriter and book runner, the Bank successfully
underwrote RMB2 billion of blue bond for a company.

Beijing Branch assisted a wind power company in successfully issuing thelargest blue bond in the market

The bond has been the largest single issue of blue bonds in themarket since the launch of such bonds in 2020. The funds raised
from the blue bond will be used to support an offshore wind power
project. According to evaluation and calculation, compared withcoal-fired power plants of the same thermal power generation
capacity, the offshore wind power project can reduce carbon
dioxide by 777,700 tons per year in terms of environmental
benefits. The funds raised from the green medium-term note are
expected to reduce 274,500 tons of carbon dioxide emissions
annually. Meanwhile, it is expected to save 126 thousand tons ofstandard coal and reduce 42.24 tons of sulfur dioxide emissions
annually, achieving significant environmental benefits.

Inner Mongolia Branch supported a million-kilowatt
wind power base project
A million-kilowatt wind power base project is located in Xilingol
League in the central Inner Mongolia Autonomous Region. Inner
Mongolia Branch has completed the approval of a total loan of
RMB 4.5 billion to the project’s capital needs throughout the wholeproject cycle.
The project has a total installed capacity of 1,100MW, pioneering in theuse of existing thermal power transmission channels to regulate the peakload of wind power, so as to meet the demand for clean energy in the
Beijing-Tianjin-Hebei region. It plays an exemplary role.

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Industrial and Commercial Bank of China Limited

Inner Mongolia Branch supported a million-kilowatt wind
power base projectShanxi Branch supported an affordable on-grid photovoltaic power generation project
During the reporting period, Shanxi Datong Branch successfully granted a loan of RMB667 million for a photovoltaic
power generation project in Hunyuan County. The loan was unsecured. After completion of the project, the loan will be
secured by the charging right of the project. The loan has a term of 15 years. It was the largest single project loan granted
to the new energy industry in the province in recent years.

An affordable on-grid photovoltaic power generation project inHunyuan, Shanxi

As a key project for energy saving and emission reduction and green
development in Datong City, the project will help Datong accelerate thetransformation from a traditional coal power and energy base to new
types of green energy sources such as solar energy. The project has anannual power generation capacity of 192,164 thousand kWh. It can save
58,600 tons of standard coal, reduce emissions of 159,900 tons of carbon
dioxide, 30.75 tons of sulfur dioxide and 34.4 tons of nitrogen oxide. The
project helps integrate resources to achieve intensive development, reduce
peak load of electricity, save and optimize investment in distribution
networks, and guide residents to pursue green energy consumption.

Liaoning Branch supported the construction of a nuclear power projectCurrently, the initial project loan of RMB5 billion for the first phase of a nuclear
power project has been approved by Liaoning Branch, laying a solid foundation
for distributing the loan for Phase I nuclear power project.
The planned capacity of the nuclear power project is six million-kilowattpressurized water reactor nuclear power units, which will be constructed inthree phases. The three phases of the project are expected to save about 180
million tons of standard coal and reduce carbon dioxide emissions by about 69
million tons annually.

Liaoning Branch supported the constructionof a nuclear power project

Hebei Branch organized the first syndicated loan for the pumped storage power plant project of a
private enterprise

A Hebei-based private enterprise’s pumped storage power
generation station project

As of March 2023, Hebei Branch has granted RMB1.45 billion of theexternal syndicated loan for a private enterprise of pumped storage
power generation it approved earlier. The total loan amount for the
project does not exceed RMB7.6 billion, and the Bank, as the leadarranger and the correspondent bank, undertook to grant 45% of the
syndicated loan for the construction of a pumped storage power plant
project. It was the first time that a financial institution in Hebei Province
granted a syndicated loan for a pumped storage power plant project of a
private enterprise, and plays an exemplary role.

Ningbo Branch supported a distributed photovoltaic power generation projectA technology company, as the first listed company mainly engaged in string inverter manufacturing in the world, hasdeveloped into one of the new energy equipment research, development and production enterprises with certain technicalinfluence which stay ahead of global peers. In recent years, the company made efforts to expand and build household
distributed photovoltaic power plants in Shandong, Henan, Hebei, andother places in light of national policies.
Ningbo Branch developed a customized financing plan, and completed
48 project financing transactions for the enterprise during the reporting
period, with an approved amount of RMB773 million. At the same time,
the branch used big data technology to customize the income sweeping
path. It developed a post-review evaluation model for household power
plant projects, achieved real-time collection, cleansing and matching
analysis of batch data, and solved post-lending management challenges.

A distributed photovoltaic power generation project built by acompany in Ningbo

2022 Special Report on Green Finance （TCFD） 49

Actively supporting global green and sustainable development
The Macao-based institutions innovated in green financing service solutions
The Macao-based institutions continued to follow up on major projects
implemented by Macao SAR Government to promote green and low
carbon transition such as replacement with environmentally-friendly
buses. In February 2022, the Macao-based institutions signed anagreement on strategic cooperation in green finance and financing forthe new energy bus project of Sociedade de Transportes Colectivosde Macau, S.A. (TCM) with a central state-owned group in Macao,
under which the institutions supported the group’s bus company putting
into service nearly 400 new energy buses. It is of great and profoundsignificance to promoting the building of Macao into a low carbon,
smart city and creating a better life for its citizens.

TCM New Energy Bus Project in Macao

ICBC (New Zealand) supported green upgrading of local infrastructure
During the reporting period, ICBC (New Zealand), as the only
Chinese-funded bank, successfully participated in and prepared a local
syndicated loan totaling NZD450 million, which provided funds forthe construction of the inland port project invested by the large Maoritribe in North Island, New Zealand. As a major municipal project of
Waikato, New Zealand, the project will have profound influence on theregional development after it is completed. By upgrading infrastructure,
it can improve the efficiency of local logistics. In design, the project
has followed the green, sustainable development philosophy. After it iscompleted, it is expected to help reduce long-distance transportation by
65,000 trips every year, cut carbon dioxide emissions by 600 tons, andcreate 12,000 local jobs, demonstrating remarkable social benefits. So
far, the project has been going smoothly and its sequential key nodes
have been achieved on schedule. The project is highly praised by the
New Zealand government and the Maori tribe.

Karachi Branch provided financial service solutions for a corridor clean energy projectOn December 31, 2021, Karachi Branch participated in a syndicated loan for a hydropower plant project in Azad Pattan,
with a total financing amount of USD1,155 million. The branch continued to jointly promote the project financing withthe syndicate, providing the Pattan project with comprehensive financial services such as letter of guarantee, foreignexchange collection and payment, and payroll payment agency services.
After it is completed, this project is expected to drive the development of local transportation, building materials, andhydropower related industries, increase employment opportunities and local fiscal revenue, improve the living standards of
local people, and drive local economic and social development. When completed and put into operation, the project will supply
power to Pakistan’s power grids, thus alleviating the power shortage in Pakistan. Compared with the gas-fired thermal power
alternative, Pattan hydropower plant can save 860 million cubic meters of gas worth about USD2.6 billion a year.

Rendering of the Azad Pattan hydropower station project in Pakistan

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Industrial and Commercial Bank of China Limited

Yangon Branch supported a gas power plant project in Kyauk Phyu, Myanmar
The gas power plant project is located in Kyauk Phyu Town, Rakhine, west Myanmar. It is a key project initiated by
the Ministry of Electricity and Energy (“MOEE”) of Myanmar, aiming at alleviating power shortage in Kyauk Phyu
region. During the reporting period, Yangon Branch provided USD10.81 million in foreign exchange settlement forthe construction and operation enterprise of the project, with a settlement amount of USD28.45 million in the same year.
Meanwhile, it cooperated with a local bank in Myanmar to issue loans totaling USD9 million for the enterprise.
The gas-steam combined cycle power generation technology used in this project is a clean power generation method,with extremely low content of smoke and dust, sulfur dioxide and nitrogen oxides in the exhaust gas. The gas and steam
combined cycle power generation sets used in the project has an efficiency of about 19 percentage points higher than thatof a single cycle gas turbine unit and about 12 percentage points higher than that of an internal combustion engine unit,
saving a large amount of natural gas fuel.

A gas power plant project in Kyaukpyu, MyanmarFrankfurt Branch supported the electric transition and development of the German auto industry
To realize the goals of carbon peak and carbon neutrality faster, the global auto industry has sped up electric transition
and upgrading. The three major auto groups in Germany are planning to introduce the goal of “carbon neutrality” into
their standby syndicates and strive to realize carbon neutrality through the entire value chain in 5~10 years. In August
2022, the branch received a modification application from an auto group for including EUR11 billion standby syndicatedloan in ESG indicator terms. The group will include two indicators, namely, exhaust emissions of its stock passenger carsin EU countries and percentage of global sales of new electric cars of its brands, into the standby syndicate contract as
ESG goals. After the modification contract is signed, the branch’s total participation of EUR328 million in the syndicatedloan will be converted into an ESG linked standby syndicated loan. In November 2022, the branch received a letter ofintent from another group to update its standby syndicate and introduce ESG indicators in 2023. The branch plans to
support the group’s efforts to organize an ESG linked standby syndicated loan.

ICBC (Brasil) and Panama Branch jointly supported through cross-border coordination theconstruction of a wind power project of a group’s subsidiary in Brazil
During the reporting period, ICBC (Brasil) andPanama Branch, through cross-border coordination,
successfully provided equipment procurement
financing, totaling USD42 million, to a group’s
subsidiary in Brazil for its in-process greenfieldwind power project, and realized the first drawdown.
Located in Bahia State, Brazil, the project is the thirdwind farm of the subsidiary in the state. After it iscompleted, it is expected to generate 800 million
kWh annually and provide green energy to 320,000
households in the surroundings.
A wind power project in Brazil

2022 Special Report on Green Finance （TCFD） 51

Part VI
Low-carbon
Operation at
ICBC

The Bank has actively responded to the goals of carbon peak and carbon neutrality.
While promoting energy conservation, emission reduction and green operation withadvanced technology, the Bank has kept exploring innovative green service models,
actively pushed for construction of low-carbon outlets, and promoted the building of a“Green Bank”.

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Industrial and Commercial Bank of China Limited

Energy conservation and emission reduction
Major progress of carbon peak and carbon neutrality work in the Bank’s
own operation
Putting into service and optimizing independently
developed the carbon footprint management data statistics
systemCompleting attribution
analysis of historical data
The Bank completed attribution analysis ofhistorical data during the reporting period.
Based on historical data emission data, theBank conducted research on “carbon peakand carbon neutrality” work in its own
operation, analyzed energy consumption
and carbon emission potential andimplementation paths, and guided the Bank
to carry out energy conservation and carbon
emission work in four areas, namely, IT
infrastructure, building infrastructure, daily
office, and key energy-using facilities.

During the reporting period, the Bank put
into service and optimized the independently
developed carbon footprint management
data statistics system and realized digital
information filing, standard approval,
automated summarization, and intelligent
inspection, laying a solid foundation for
the Group to continue to push forward thework relating to carbon peak and carbon
neutrality. The Bank organized its domestic
institutions and subsidiaries to fill in energy
consumption data. The data collection
scope includes three types, namely, carbon
emission data, discharge facilities andmonitoring facilities.

Improving the level ofgreen office
The Bank continued to improve thelevel of green office. It optimized
the vid eo c o n f e r e n c i n g f u n c ti o n ,strengthened management of importantm e e t i n g s , r e f i n e d r e m o t e o ff i c eservices, put into service mobile review& approval of common office affairs,
continued to reduce the use of office
paper, and further promoted green,efficient office.

Strengthening data
verification
The Bank engaged a third-party
professional company to verify data
through onsite inspection, document
review, etc.

“Online” “paperless” office
Aspired to promote green development, advocate green and low-carbon practices and build a green bank, theBank advocated “paperless” office across ICBC, encouraged all institutions of ICBC to actively promote green
office, promoted paperless office, and enriched the content of office informatization.
By holding paperless meetings online, the Bank

The office platform and the mobile office platform

saved about

handled a total of

19 million sheets
98 tonsor aboutof paper

5.2 billion
27,000 tons

paperless business transactions,which saved aboutof paper2022 Special Report on Green Finance （TCFD） 53

Column: Building green data centers to support therealization of the carbon peak and carbon neutrality goals
The data centers of the Bank actively responded to the national goals of carbon peak and carbon neutrality anddevoted itself to establishing the building and operating standards system of green data centers. It actively madeplanning for data centers and pushed for the building of green data centers, and promoted the deployment andimplementation of new technologies for green and low carbon development, to support the realization of the national
goals of carbon peak and carbon neutrality.

Saving energy and increasing efficiency ofequipment
The machine room in the Waigaoqiao industrial park
successfully completed the technological upgrading projectsof replacing high-frequency UPS and fluorine-pump air
conditioners with energy-saving ones and replacing wet
membrane humidification with electrode humidification,and the optimization and integration of fragment resources
mined deep from the machine room. The machine room in the
Jiading industrial park completed a number of technologicalupgrading projects including the upgrading of the end cap
type online rubber ball cleaning device of the water chilling
unit, the intelligent dynamic adjustment of cooling waterand the adjustment and optimization of the dual cold source
load ratio, and optimized the energy-saving operation of
infrastructure. The data centers actively promoted deployment
and installation of liquid cold plate servers in the production
machine room in Jiading, laying a R&D foundation for
subsequent promotion and application of liquid coolingtechnology in high-performance equipment of the Bank suchas AI servers. According to the calculation, all the PUE values
in the three industrial parks declined in 2022. The PUE valueof the data center in the Waigaoqiao (A2) industrial park was
1.525, that in the Jiading (Phase I) industrial park was 1.561,
and that in the Xisanqi industrial park was 1.599, down 4.93%,
3.15% and 0.19% from the corresponding period of 2021
respectively. Throughout the year, the Bank saved about 6.99
million KWH of electricity.

Planning layout reasonably
According to the requirements of national macro
policies such as “carbon peak and carbon neutrality”“integrated synergistic computing power hubs of
big data centers” “financial security bottom line”
and “developing digital economy”, to meet the key
information system infrastructure needs for thebuilding of D-ICBC, the Bank, centering on the overall
objectives of “reasonable planning and layout, safety,
stability, reliability, efficiency, flexible expansion,green, low carbon, energy conservation, advanced
technological innovation, and intelligent and integrated
operation”, studied and proposed the Data Center
Building Plan and the Implementation Plan for the Site
Selection of New Park Area, laying a solid foundation
for the long-term business development of the Group.

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Industrial and Commercial Bank of China Limited

Building green industrial parks
The data centers actively implemented thenational strategy on carbon peak and carbon
neutrality and put into place the requirementsof the Work Plan of Industrial and Commercial
Bank of China Limited for Carbon Peak andCarbon Neutrality. With green data centers at
the core, based on the current situations of thepower, water supply, lighting and HVAC systemsof the industrial parks and the latest technologies
and best practices of green industrial parks andintelligent operation in the industry, the Bank
put forward the specific plan of building green
data center parks, which extends the green andlow carbon concept from the data center levelto the whole industrial park level and aims tobuild demonstration green industrial parks ofdata centers of ICBC and showcase the green andlow carbon building results and industry-leading
advantages of the data centers of the Bank.

Awards◇ The “Research and Practice of New Typesof Green and Low-carbon Machine RoomInfrastructure in the Financial Industry” won“Excellent Case at the 2022 (2nd) Jin Xin Tong
Innovative Application of FinTech” organized by the
China Academy of Information and Communications
Technology and the parties of the FinTech industry
ecosystem at the 5th China FinTech Industry Summit
in 2022.
◇ The “Green Data Center Building andOperation Project” won Second Prize of the
FinTech Development Award 2021 of the People’s
Bank of China.
◇ The “Green Data Center Building and Operation
Project” won “Outstanding Contribution Awardto the Digital Transformation of the Chinese
Financial Industry 2022” at the 13th FinTech
Application Innovation in 2022 organized by Financial
Computerizing of the People’s Bank of China.

Exploring to develop green and low-carbon outlets
During the reporting period, the Bank incorporated advanced environmental protection technology and green
development philosophy into the source of outlet building and explored building of green, low-carbon outlets. Using
outlet decoration and upgrading as an opportunity, the Bank encouraged use of green building, energy-saving andlow-carbon technologies. It considered the green development and emission reduction of outlets through their fulllifecycles as a whole. By cooperating with carbon emission rights exchanges, it verified carbon emissions and wrote
off carbon emission reduction of building materials and office supplies during the decoration and operation of outlets,
helping promote green, low-carbon transformation and development of financial outlets.

Case

The first certified“green outlet”in China at Beijing sub-center was opened

Tongzhou Bei guan Sub-branch of the Bank in Beijing passed the review of the Beijing National
Financial Technology Certification Center, becoming the first financial institution in the country topass the “green outlet”service certification.It helped the sub-center of Beijing explore and lead thenew paradigm of green development.

◇ In terms of serving
environment
The outlet integrated
energy-saving andemission-reducing
basic service facilities
including fresh air
system, LED displays,
lamps and greenery
walls.

Case◇ In terms of servicemode

The outlet has vigorously
promoted mobile internet
financial services and theintelligent transition of theoutlet, optimized businessprocedures, and pushed for thepaperless service reform at thecounter. It has also set a fastchannel that gives priority togreen financial business andmeets customers’ financial
service needs.

◇ In terms of publicity
of green finance

The outlet has set up a low
carbon and environmental
protection publicity and education
zone and placed low carbon
and environmental protection
e-posters, actively spreading
green and low carbon concepts
such as environmental protection,
ecological benefits, energy
conservation and emission
reduction among customers.

◇ In terms of
institutional
management

The outlet has formulated
the Evaluation Plan ofGreen Outlet Services andgreen office management
regulations, promoted“green office and lowcarbon lifestyle” , andpracticed paperless service
and office, garbage sortingand processing, green
transportation, etc.

Bigui Sub-branch in Yangjiang, Guangdong becomes the first carbon neutral financial
institution in the province that uses GEC to realize green electricity consumption

Bigui Sub-branch in Yangjiang, Guangdong purchased 65 green electricity certificates (GEC) of
Guangdong from the China Green Electricity Certificate Subscription Platform, which are equivalent
to using 65,000kWh green electricity and reducing carbon dioxide emissions by 42,672.5kg, sulfur
dioxide emissions by 30.55kg and nitric oxides emissions by 27.95kg. Reducing carbon emissions
from the source and realizing green electricity consumption, the sub-branch was granted the Green
Electricity Certificate by the National Renewable Energy Information Management Center and became
the first financial institution in Guangdong Province to obtain the certificate. The sub-branch was
also the first carbon neutral financial institution in the province to use Chinese GECs to realize green
electricity consumption.
Meanwhile, Bigui Sub-branch has incorporated environmental protection technology and the green
development philosophy into its outlet building and realized the goals of carbon neutral outlet
decoration and advance carbon neutral outlet operation, for which it awarded the Carbon Neutrality
Certificate and the Carbon Emission Reduction Cancellation Certificate by the Guangzhou Emissions
Exchange and became the first “green sub-branch” with such certificates in Yangjiang.

2022 Special Report on Green Finance （TCFD） 55

Green operation
During the reporting period, the Bank accelerated the building of an ecological bank and promoted business development
and innovation in green finance in a coordinated manner, which produced good results. As at the end of the reporting
period, the proportion of digital business of the Bank maintained above
the business volume of

98%, equivalent to substituting

110,000 outlets and 1.1 million tellers. It supported the Bank’s

implementation of carbon peak and carbon neutrality goals.

Launching innovative green finance functions in personal mobile banking 8.0 version
The Bank rolled out new functions such as global green pass and carbon ledger, the first of their kinds, identified
users’ green behaviors in financial scenarios, introduced professional carbon emission measurement rules to measurecarbon emission reduction, and recorded users’ low carbon footprints. It was the first to complete the transformationof making internet services elderly-friendly and accessible and was among the first to obtain the “information
accessibility” label from the Ministry of Industry and Information Technology. As at the end of the reporting period,
the Bank had 516 million personal mobile banking customers and the mobile end had 174 million MAUs.

Establishing a convenient, efficient internet finance platforms for corporate customers
The Bank strengthened support to inclusive finance. It realized online deployment of all the three major types of products
for inclusive scenarios (credit, mortgage and chain) on corporate internet banking and mobile banking, and continued to
upgrade the inclusive edition of corporate mobile banking. Both the proportion of balance of loans to online inclusive
corporate customers and that of corresponding customers exceeded 70%, and the proportion of increment in loans to online
inclusive corporate customers surpassed 80%. The Bank refined basic services such as account management, transfer,
remittance, payroll service, U-shield management, etc., which saved operating costs such as clearing and settlement costs
for enterprises and provided a minimalist online comprehensive service platform for corporate customers. As at the end of
the reporting period, the Bank had 13.56 million corporate internet banking customers. Corporate internet banking had 5.14
million MAUs and corporate mobile banking had 2.13 million MAUs.
With a focus on specialized and sophisticated enterprises that produce new and unique products, the Bank provided
well-matched, differentiated online financing services. One of every two specialized and sophisticated enterprisesthat produce new and unique products in China uses ICBC’s corporate internet banking and mobile banking services.
The Bank’s corporate internet financial services covered 55% of the specialized and sophisticated enterprises that
produce new and unique products certified by the Ministry of Industry and Information Technology.

Accelerating layout of financial service channels in counties and villages
The Bank launched the app “ICBC Xingnongtong” to enrich product capabilities and ecosystem scenarios. Specifically,it launched 12 types of basic financial services including card opening, loan and fee payment, deployed the exclusive
channel of ICBC of the Credit Express of the Ministry of Agriculture and Rural Affairs, integrated the Bank’s rural
government service platform “Digital Villages” and agricultural sales platform “Agricultural Matchmaking”, andintroduced agriculture-related production and living scenarios such as “Farmers’ Classroom”. As at the end of
the reporting period, ICBC Xingnongtong services were made available in more than 1,800 counties.

Empowering the expansion of the “GBC+” customer ecosystem
The Bank served the digital transition of governments and industries and accelerated the expansion of “Ju Fu
Tong” in financial markets. During the reporting period, the Bank served nearly 200 customers on the G end,
and active customers on the B and C ends reached 90,000 and 17.02 million respectively. The Bank rolled
out the comprehensive service solution “Education Cloud” to accelerate its expansion in the basic education
market. The Bank served, through “Industry Integration Cloud”, traditional enterprises’ digital transition of
production, supply and marketing. It built the agricultural and sideline products selling platform “Agricultural
Prosperity 832” with China Co-Op Group.

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Industrial and Commercial Bank of China Limited

Building diversified, open service channels
The Bank promoted the “Cloud ICBC” non-contact service brand, upgraded cloud outlets 2.0, and promoted“Customer Manager’s Cloud Studio”. By leveraging the role of remote banking in connecting online andoffline services, the Bank continued to enrich “screen-to-screen” non-contact services via channels like remotebanking, mobile banking and intelligent devices.
The Bank creatively launched the enterprise WeChat platform of the Head Office, rolled out “QR Code Win”, apartnership-based marketing model for everyone, and pushed for the building of online scenarios of e-CNY.
As at the end of the reporting period, more than 15,000 cloud outlets and 28,000 wealth managers of
the Bank could provide services online. Cloud outlets had more than 800 million visits in the year, and 5.12
million transactions of “screen-to-screen” non-contact services were completed.

Improving the layout of overseas online services and strengthening coordination
between domestic and overseas institutions
The Bank launched overseas mobile banking 7.0 and a minimalist version. It established salary remittance and studyabroad fee payment scenarios, made cross-border RMB payroll service via corporate internet banking available inDubai, Singapore, Manila, etc., and piloted salary repatriation service via overseas personal mobile banking in Thailand.
As at the end of the reporting period, the Bank promoted internet financial services in 46 overseas institutions.

Fostering new drivers of green finance services
Accelerating upgrading of remote banking services. The Bank ensured stable and efficient operation of online
platforms through various forms including “resident customer service + home-based customer service”“intelligent + self-service + manual” “voice + text + video/audio”, etc. The Bank also extensively applied newtechnologies such as multi-round dialog and knowledge graph to innovate in services. Intelligent outboundcall scenarios covered 14 business lines and 36 branches, business volume of intelligent services reached 680
million transactions.The Bank led the industry in terms of intelligent service distribution ratio and sped up
transition and upgrading to remote intelligent services.
The Bank built the intensive, refined online customer operation mode with customers at its center. Centeringon customer companionship through the full journey, the Bank established mobile banking operation units
and journey service points and realized intelligent, online customer reach and promotion of financial products.
The Bank created activity brands like “Xianghui Thursday” and “Huiju Weekend” and established the “Zhike”
enterprise-level digital customer operation platform. Meanwhile, the Bank promoted in depth the establishmentof the synergistic online customer operation mechanism and pushed for online reach to customer of all types.
The Bank reached 270 million individual customers online throughout the year.

Continuing to innovate in products to support digitalization of business procedures
Launching OFD cloud receipt and cloud account reconciliation services to assist enterprises
in low-carbon operation. The Bank was the first in the industry to launch OFD cloud receipts and cloud

account reconciliation service models, realizing precision matching and full-chain digital processing and filingof electronic receipts and bank statements between the corporate financial system and the banking businesssystem. That effectively solved the “last mile” problems of paper certificates that are difficult to receive, enter
into the account book and file and helped improve the quality of accounting information and promote the“carbon peak and carbon neutrality” building of enterprises and public institutions. The Bank participated in
the pilot project of electronic certificates on the issuer’s side and the receiver’s side launched by the Ministryof Finance. It was the first bank in the industry to make electronic receipt service available via all channels,
it issued the first electronic statement of account that meets accounting data standards, it was the first bankin the industry to realize auto dual circulation of electronic receipts and statements between the issuer’s sideand the receiver’s side, and it was the first bank in the industry to realize interactive processing and automatedmatching of electronic receipts between the correspondent bank and the financial budget system. The Bank
led the industry in terms of business volume and quantity. It provided services to 101 receivers on the listof institutions participating in the pilot project, connected to the electronic receipt and statement systems of
86 central state-owned enterprises and universities affiliated to ministries. Customer coverage was 85%. In
addition, the Bank jointly built the bank-government ecosystem with Zhejiang Province’s government affairs
platform. The Bank issued a total of more than 25 million electronic certificates that meet the requirements of
the Ministry of Finance, and its customer size and business data were ahead of peers.

Building the “ICBC e Confirmation Service” brand and supporting the pilot project ofdigital audit. The Bank realized automated processing and digital reply of confirmation service throughthe whole process. The processing time was reduced from 10 working days to 48 hours. Currently, the Bank hassigned a cooperation agreement with more than 1,200 accounting firms. The Bank participated in the pilot projectof bank confirmation business for listed companies organized by five ministries including the Ministry of Financeand CBIRC. ICBC’s services were provided to 86% of the accounting firms in the pilot project and the proportionof customers confirmed by the Bank was 91%. The Bank satisfactorily completed the tasks of the pilot project andhelped push for the pilot implementation of digital audit, for which it was spoken highly by regulators.

2022 Special Report on Green Finance （TCFD） 57

Public welfare programs for green and environmental protection
Continuing to intensify publicity of carbon peak and carbon neutrality toestablish the green and low carbon concept among all employees

The Bank continued to intensify publicity of carbon peak and carbon neutrality. First, it disclosed the Bank’s
progress in carbon peak and carbon neutrality work to show its positive image as a green and low-carbon bank.
Second, it created a green office and low-carbon operation atmosphere by displaying promotional contents ofgreen office on electronic displays, computer screens, etc. in institutions. Third, it pushed for internalization of
the green and low carbon concept into a basic concept and conscious action of all employees by holding the “Green
Office, Low-carbon Travel, and Environmentally-friendly Lifestyle” knowledge contest and spreading energy
conservation and emission reduction knowledge.

“ICBC in Action for Beautiful China” Season V

The ICBC Young Volunteers Association held the “ICBC in Action for Beautiful China” Season V plogging activity themedby “ICBC in Action for More Green in Sanjiang” in the forms of plogging, public welfare publicity, environmentally-friendly
cycling, environmental protection painting, garbage classification, cash donation for environmental protection, etc. The
program won Silver at the 6th China Young Volunteer Service Programs Competition.

More than

9,400

young

volunteers across the Bank participatedin the activity,

575

sessions

w e r e o rg a n i z e d , a n d m o r e t h a n

340,000

RMB

donations were raised.

Holding “2022 Green Finance Charity Forum”

In April 2022, the Private Banking Department of the Bank, in cooperation with other departments of the Bank and partner
institutions outside the Bank, launched the “Entrepreneur Service Improvement Project”, and on April 22 World Earth Day,
they successfully held “2022 Green Finance Charity Forum” themed by “Reduce Emissions and Build a Green Home withICBC” online, working with entrepreneurs to better fulfill social responsibilities, create social value and promote in depth
the development of green finance. In December 2022, the Private Banking Department launched the “Partner Charitable
Trust” Sanjiangyuan Ecological Protection Project to build a wildlife rescue station in the Make River protection zone of theSanjiangyuan National Park, creatively combining charity trust with green public welfare.

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Industrial and Commercial Bank of China Limited

ICBC (Asia): supporting the “Plantation
Enrichment Programme”

ICBC International held a beach cleaning
activity

ICBC (Asia) jointly implemented the “Plantation
Enrichment Programme” with the Agriculture, Fisheries andConservation Department of Hong Kong and the Hong Kong
environmental protection group The Green Earth, aiming
to improve the ecological value and biodiversity of local
plantation and promote sustainable development of green
ecology and life in Hong Kong. Currently, the Programme
has planted more than 1,200 trees of over 17 species in theplantation, and all of the trees are in good condition. It has
made important contributions to protecting the environment
and promoting the sustainable development of the Hong
Kong society.

ICBC International organized a beach cleaning activity.
The activity removed discarded plastics, metals and othergarbage at Sok Kwu Wan Beach on Lamma Island. It was
one of the Bank’s moves to implement the environmental
protection philosophy.

Impacts of operating activities on the environment○ Carbon emissions from the Bank’s operation over the past three years (Domestic)
Carbon emissions

Unit ofmeasurement

2020

2021

2022

Total carbon emissions

10,000t CO2

206.36216.26202.13

Building emission intensity

kgCO2/m2

88.69

91.91

85.08

Per capita emission
intensityt CO2/person

4.66

4.88

4.47

Direct emissions (Scope 1)

10,000t CO2

12.42

12.96

9.74

Indirect emissions (Scope 2)

10,000t CO2

193.94203.30192.39Notes: 1. The Bank engaged an external professional institution to examine resource consumption and calculate total carbon emissions of domestic institutions of
ICBC over the past three years. Those domestic institutions include the Head Office, tier-one branches, tier-two branches, sub-branches, outlets, directly
managed institutions, domestic integrated subsidiaries, etc.
2. The carbon emissions of the Bank mainly came from use of energy and escape of greenhouse gases, including Scope 1 and Scope 2 emissions as definedin ISO14064. Scope 1 emissions included direct emissions from combustion of fossil fuel such as bunker coal, natural gas, liquefied petroleum gas andnaphtha and diesel oil; Scope 2 emissions were indirect emissions caused by electricity, purchase heat and cooling capacity.
3. The building emission intensity was calculated using the floor area of the Bank. The per capita emission intensity was calculated using the number ofenergy users of the Bank including the employees of the Bank and staff of third-party partners who worked in the Bank.
4. The total carbon emissions were measured using the Guide for Measurement Methods and Reporting of Greenhouse Gas Emissions of Public Building
Operators (Trial) issued by the National Development and Reform Commission and the emission factors of energy specified in the Average Carbon
Dioxide Emission Factors of Regional Power Grids of China based on the measurement scope proposed in ISO14064-1: 2018 Greenhouse gases - Part 1:
Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals.
5. During the reporting period, due to factors such as the adjustment to the office mode, the total direct emissions of carbon dioxide dropped largely.

2022 Special Report on Green Finance （TCFD） 59

○ Energy consumption of ICBC over the past three years (Domestic)
Energy consumption

Unit ofmeasurement

2020

2021

2022

Water

10,000t

3186.443156.562553.82

Electricity

MWh2345793.94

2490745.64

2394577.27

Anthracitet1367.50

1178.00

154.54Natural gas

10,000Nm3

3206.053457.722840.83

Gasolinet14062.03

15169.83

10050.70

Dieselt

540.17459.56326.65

Office papert12281.57

12845.49

7426.70

Notes: 1. The main source of energy consumption of the Bank was outsourced electricity, natural gas, gasoline and diesel. Institution includes domestic
institutions, including the Head Office, tier-one branches, tier-two branches, sub-branches, outlets, directly managed institutions, and domestic
subsidiaries.
2. The statistical scope of gasoline consumption was gasoline consumption by motor vehicles, and the statistical scope of diesel consumption included diesel
consumption by motor vehicles and diesel consumption by fixed sources.
3. Water consumption was calculated based on municipal water supply.

○ Statistics of wastes of ICBC over the past three years (electronic information products)
Item type

Unit ofmeasurement

2020

2021

2022

Microcomputers (hosts)

Unit

519

838

480

Displays

Unit

280

544

373

Laptops

Unit

494

212

342

Printers

Unit

132

297

66

Servers

Unit

7

12

0

Other

Unit

292

674

82

Toner

kg

332.85328.05319.95

Toner cartridges

kg1141.21124.4895.2

Ribbons

kg

4.5

3

2.1

Note: During the reporting period, the Bank standardized the scrap procedures of electronic products to ensure innocent treatment of electronic wastes and minimize
their impacts on the environment.

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Industrial and Commercial Bank of China Limited

Part VII
Prospective
Study

In 2022, with a focus on the new requirement and new idea of green development,
the Bank tracked international and domestic policies on economic transformationand green finance and important international meetings such as the COP27 (the 27th
session of the Conference of the Parties of the United Nations Framework Convention
on Climate Change (UNFCCC)) and the COP15 (the 15th session of the Conferenceof the UNFCCC). It continued to conduct research on key areas such as transition
finance, information disclosure, climate risk, biodiversity, new energy and carbon
market instruments and offered advice and suggestions on global financial governance,
green development of the banking industry and ICBC’s green transition, giving fullplay to the role of research in serving decision-making and creating value.

2022 Special Report on Green Finance （TCFD） 61

Getting rich research results in green finance, efficiently
serving decision-making and transition & development
Since the goals of carbon peak and carbon neutrality were put forward, the Bank has promoted in depth researchon green finance and has made remarkable achievements in policy tracking, business support, standards
formulation and brand publicity.
The Modern Finance Research Institute (Office for Deepening Reform) of ICBC planned the research resourcesof the Bank as a whole, intensified research on green finance, and created a good atmosphere in which green
research supports decision-making and serves development. The research provided effective intelligent support tothe development and innovation of green finance businesses such as green credit, green bonds, green funds, green
wealth management and carbon trading.

⌒

The Modern Finance Research Institute (Office for Deepening Reform) formulated the Research on
Green and Low-carbon Transition of ICBC Against the Backdrop of Carbon Neutrality
The report systematically summed up and analyzed the global carbon neutrality pattern, the latest progress inregulatory policies, green preference of the financial market and comparable transition experiences of peers and put
forward approaches and suggestions on how to accelerate the low-carbon transition and development of ICBC fromfive dimensions, namely, detailing objectives, optimizing layout, refining system, reducing emissions from operations
and building consensus based on ICBC’s goals of “becoming a green bank with good international reputation”. The
report won Special Award of Key Subjects on Reform and Development of ICBC 2022.

⌒

The Modern Finance Research Institute (Office for Deepening Reform) took the lead in the preparationof the Suggestions on How to Refine the Business Layout of Financial Services for the Carbon Market
The report, with a focus on serving the building of the carbon market and strengthening the role in supporting green
finance, further defined the development objectives, work mechanism and specific tasks of improving the financial
services for the carbon market. The report provided guidance and support to the Head Office and branches to jointly
study and formulate comprehensive financial service solutions to the national carbon market operator China Carbon
Emissions Registration and Clearing Co., Ltd.

⌒The Credit Management Department formulated the Report on Medium- and Long-term Optimization Strategies ofInvestment and Financing Structures in the Pursuit of the Goals of Carbon Peak and Carbon Neutrality
The report took carbon peak and carbon neutrality as a factor that must be considered in the research of industry
investment and financing policies and customer selection. It explored paths and strategies to continue to promote thegreen and low-carbon transition of investment and financing structures and intensify innovation in green financial
products and services and guided the Bank to increase business layout in green and low-carbon industries, reasonably
control fund investments in high-carbon industries, and steadily prevent structural financial risks.

⌒

The Asset Custody Department completed the Application Research of Custody Business of ESG
Rating System From the Asset Management Ecosystem’s Perspective
Against the backdrop that clients and investment managers value ESG value investment and derivative services more
under the goals of carbon peak and carbon neutrality, the report built an ESG assessment model that is in line with thecharacteristics of the Chinese capital market and studied the application of the ESG assessment system in custody. The
report can help consolidate the Bank’s leading position in the custody industry and build the green bank brand.

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Industrial and Commercial Bank of China Limited

⌒

ICBC Wealth Management conducted research on special subjects such as “green asset
management”
The subsidiary formulated in-depth reports such as the Research on Developing Green Asset Management to Support
the Carbon Neutrality Strategy and the Carbon Peak and Carbon Neutrality Development and New Economic Cycle,
released the Handbook of Research of Green Bonds, the Application of ESG in Fixed-income Investment Research
Fields, the Comments on the Release of China Green Bond Principles and other reports, and completed a number of
research reports on the new energy industrial chain, providing strong support to investment in new energy fields.

⌒

The Modern Finance Research Institute (Office for Deepening Reform) supported Zhejiang
Huzhou Branch innovating in green finance
The Modern Finance Research Institute (Office for Deepening Reform) and Huzhou Branch held periodical
communication meetings centering on important topics of green finance, and actively empowered banks participatingin Head Office-level reforms and experiments of green finance to give play to their innovation advantage. In 2022, theModern Finance Research Institute (Office for Deepening Reform) directed the completion of the Survey Report of
the Carbon Sink of the Bamboo Forest in Anji by Huzhou Branch and promoted the establishment of the collection,
storage and trading mechanism of carbon sink of the bamboo forest in Anji, injecting financing resources into thedevelopment of the bamboo forest carbon sink industry of Anji.

Obtaining positive results in cooperation research, assistingin global finance governanceLeading and advancing the work of GIP Working Group-I

The Bank serves as co-chair of the Working Group I (Environmental and Climate Risk
Assessment) of Green Investment Principles for the Belt and Road (GIP). During the reporting
period, Working Group-I drafted and released the Report on Belt and Road Transformation Risks
and Opportunities, conducted research on biodiversity risk of the Belt and Road, which provided
research support and case reference to financial institutions in the countries and regions along
the Belt and Road to identify and manage environmental and climate risks. To commend theoutstanding achievements made by the Bank in green transformation, the GIP Secretariat granted“Best Capability Building” and “Best Green Finance Practice” to the Bank in 2021 and 2022
respectively.

Leading the preparation of standards

On the basis of leading the preparation of the Environmental Information Disclosure Guide forFinancial Institutions, the Bank, during the reporting period, led the preparation of two standards, theEnvironmental Risk Stress Testing Guide for Commercial Banks and the Environmental Information
Disclosure Guide for Commercial Banks.

Actively participating in TCFD global financial governance

The Bank was the first financial institution in China to sign and uphold the TCFD (Task Force on
Climate-Related Financial Disclosures) recommendations. As an expert member of the TCFD, theBank attended two TCFD plenary meetings during the reporting period and supported and promoted
TCFD related work based on China’s financial practices during the reporting period. The Banktranslated the 2022 Status Report and other documents, and published on TCFD website. These
documents provided reference for Chinese institutions to strengthen climate risk management andmake relevant information disclosure by referring to the TCFD framework.

2022 Special Report on Green Finance （TCFD） 63

Leading the implementation of the work of China-UK Financial
Institution Sustainability Information Disclosure Task Force

Under the joint guidance of the Green Finance Committee of the China Society for Finance and Banking
and the City of London, the pilot project of China-UK financial institution environmental information
disclosures whose implementation was led by the Bank and the Principles for Responsible Investment (PRI)
produced positive results. During the reporting period, the task force for the pilot project released the 20202021 Progress Report to the public. The task force has established three discussion mechanisms on banking,asset management and insurance respectively, and three subject research teams on stress testing, brown
assets and carbon neutrality respectively. Relevant research results have provided an important foundation
for the People’s Bank of China to organize and conduct climate related risk sensitivity tests and stress tests.
At the end of 2022, the China-UK Financial Institution Environmental Information Disclosure Task Forcewas renamed UK-China Financial Institution Sustainability Information Disclosure Task Force, and the
Bank remained the Chinese leader institution.

Leading and advancing the work of the Environmental Information
Disclosure Task Force of the GFC

As the leader institution of the task force, the Bank took the lead in the setting of the priorities and tasksof the task force in 2022, and organized and held eight annual subject research projects with dozens ofinstitutions. The task force studied in depth the latest trends in the regulation, standards, practices andapproaches of financial institution environmental information disclosure, gave major support to theresearch of relevant policies and standards of regulators, and promoted research and practical results ofenvironmental and climate information disclosures, which helped Chinese financial institutions build
environmental information disclosure capability and improve environmental information disclosure level.
The Research on Transition Finance Information Disclosure by Financial Institutions that was completedwith the Modern Finance Research Institute (Office for Deepening Reform) of ICBC, was released at the
Hongqiao International Economic Forum of the 2022 China International Import Expo. The research reportlaid down the core contents and key indicator system of transition finance information disclosure, which canhelp promote the low-carbon transition of the Chinese financial industry.

Working with others on research to protect biodiversity through finance

The Modern Finance Research Institute (Office for Deepening Reform) and Huzhou Branch joined the “researchgroup on financial support for biodiversity” of the Green Finance Committee of the China Society for Financeand Banking and jointly developed and released the report titled Research on Key Problems about Financial
Institutions’ Support to Biodiversity with the Institute of Finance and Sustainability (IFS). On the basis of learningfrom relevant frontier research and practices at home and abroad, the Bank put forward paths and measures on
how to support biodiversity through finance. In addition, based on the business practices of Huzhou Branch, theBank established biodiversity risk and impact assessment methods of loan projects and the indicator system,
providing a technological path and practical example for financial institutions to identify biodiversity risk.

Working with others to sum up practices and cases of green finance

The Bank, together with Renmin University of China, led the preparation of the China Green Finance
Development Research Report for the seventh year straight. The report tracked the development and changes ingreen finance policies and practices in China, enterprise-widely presented the overall situation and research resultsof green finance in China, and laid down the next development direction and suggestions. The Bank participatedin the subject research titled Zero-carbon Transition and Development of Green Finance of the Banking Industry
in the Pursuit of the Goals of Carbon Peak and Carbon Neutrality, which summed up the green development
experiences in the banking industry. The Bank participated in the preparation of the annual China Green Finance
Development Report of the People’s Bank of China, in which the Bank gave advice on how to achieve highquality, sustainable development of China’s green finance. As the only financial institution participating in the
research group Research and Demonstration of Building Carbon Emission Accounting and Assessment Methodsof the Ministry of Housing and Urban-Rural Development, the Bank put forward suggestions on building carbon
emission accounting and evaluation criteria of low-carbon buildings. The Bank participated in the formulationof the PRB Case Collection of Chinese Financial Institutions. The Bank participated in the Research Subject on
Green Finance Development of Large State-owned Banks of the Institute of Finance and Sustainability, in which,the Bank summed up its innovation case of green finance reform and experiment zone.

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Industrial and Commercial Bank of China Limited

Actively conducting research on climate risk management
and refining the enterprise-wide risk management system

Refining the climate risk
management system
The Bank studied and analyzed
the climate factors that are
affected by traditional risks,
and identified and assessedclimate risk. The Bank
completed the establishmentof the climate risk databaseand integrated eight types ofclimate risk data including
carbon emissions, stressscenarios, information
disclosure and ESG ratings
into the database.

Assisting the banking
industry jointly
promote climate risk
management
During the reporting period,
the Bank continued to fulfill
its responsibilities as theleader of the expert working
group of the Chinese banking
industry supporting therealization of the goals ofcarbon peak and carbon
n e u t r a l i t y, s t u d y i n g a n dtranslating international
climate risk policy
documents such as Basel.
Meanwhile, working withothers, the Bank continued
to push for research of key
subjects including climate
risk stress testing, climate
risk governance and carbon
accounting data standards.

Advancing researchof climate risk stresstesting
Based on the technicalframework of the United
Nations Environment
Programme (UNEP) andthe stress scenarios of the
Network of Central Banksand Supervisors for Greening
the Financial System (NGFS),
the Bank determined local
stress scenarios and built thetransition risk and physicalrisk transmission model.
The Bank was the firstbank in China to employ
international advanced
technology to complete
climate risk stress testing. It
realized systematic, process
management of climate risk
stress transmission, which
comprehensively improvedt h e B a n k ’s c l i m a t e r i s kmanagement capability.

2022 Special Report on Green Finance （TCFD） 65

Attending the BRICS Business ForumOn June 22, 2022, Chen Siqing, Chairman of BRICS Business Council Chinese Chapter and Chairman of
ICBC, attended the Opening Ceremony of the BRICS Business Forum and participated in the “Uphold theConcept of Openness and Promote World Economic Recovery” discussion at the Forum as a guest speaker.
Chen Siqing pointed out that the industrial and commercial circles, as the main forces and fresh forces of BRICS
economic cooperation, should actively implement the Global Development Initiative, promote deep integrationof technological innovation and green development, and support green and low-carbon economic transitionof countries. In terms of green development, ICBC, as the chair unit of the BRICS Business Council Chinese
Chapter, innovated in ESG green ratings and indexes and established the green finance research system, which
helped realize higher-quality, more resilient and more sustainable economic growth.

On June 22, 2022, Chairman Chen Siqing attended the Opening Ceremony of the BRICS Business Forum and gave a speech

Attending the First BRICS Energy Cooperation ForumOn June 21, 2022, Chen Siqing, Chairman of BRICS Business Council Chinese Chapter and Chairman of
ICBC, attended the First BRICS Energy Cooperation Forum and delivered a speech. Chen Siqing said that since
its establishment, the BRICS Business Council has attached great importance to energy cooperation for green
development. ICBC, as the chair unit of the BRICS Business Council, will actively respond to the joint initiative,
continue to provide high-quality financial services for energy industries, and together with the industrial andcommercial circles of BRICS, ICBC will strengthen synergy, innovation, risk awareness, openness and inclusion,and further deepen BRICS energy cooperation. ICBC will enhance drivers of green transition, ensure no systemicrisks concerning safe development arise, and continue to contribute wisdom and resources to realizing greener,
safer and more sustainable global development and building a community with a shared future for mankind.

On June 21, 2022, Chairman Chen Siqing attended the First BRICS Energy Cooperation Forum2022 Special Report on Green Finance （TCFD） 67

Attending the Research Forum on Green Finance of the People’s
Bank of China
On August 22, 2022, the Bank’s Vice Chairman and President Liao Lin and Executive Director and Senior
Executive Vice President Wang Jingwu attended the Research Forum on Green Finance of the People’s Bankof China. Liao Lin said that ICBC pursued development and safety in a coordinated manner, steadily promoted
green and low-carbon transition on the asset side and the operation side, took solid steps to advance relevant
work about carbon peak and carbon neutrality, kept improving the adaptability, competitiveness and inclusionof financial services, firmly followed the financial development path with Chinese characteristics, and mademore contributions to promoting high-quality social and economic development. Wang Jingwu gave a keynote
speech, in which he analyzed the problems and challenges faced by China in the development of green finance inareas such as industrial base, industrial transition, carbon accounting and standards preparation, and put forward
recommendations for improvement.

On August 22, 2022, the Bank’s Vice Chairman and President Liao Lin and Executive Director and Senior Executive
Vice President Wang Jingwu attended the Research Forum on Green Finance of the People’s Bank of China

Co-hosting the 5th Qilian Mountain ForumOn June 28, 2022, the Bank’s Executive Director and Senior Executive Vice President Zheng Guoyu attended
and addressed the Opening Ceremony of the 5th Gansu Qilian Mountain Forum via video link. The forum,with the theme of “Do What Gansu Can Do to Meet National Demand” and the aim of “Practice the Green
Development Philosophy and Promote High-quality Economic Development of Gansu”, discussed problems inthe development of economy, society, ecology, etc. of Gansu. Zheng Guoyu said that ICBC provided substantial
support to the economic and social development of Gansu and did a lot of work in serving key strategic projects,
helping realize common prosperity, supporting ecological conservation, etc., and in future ICBC will keep
optimizing financial product supply to support high-quality economic and social development of Gansu. The
Qilian Mountain Forum was jointly hosted by China Economic Information Service of Xinhua News and ICBC
Gansu Branch.

On June 28, 2022, the Bank’s Executive Director and Senior Executive Vice President Zheng Guoyu attended
the Opening Ceremony of the 5th Gansu Qilian Mountain Forum via video link

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Industrial and Commercial Bank of China Limited

Attending COP15
On December 14, 2022, the Bank’s Executive Director and Senior Executive Vice President Wang Jingwu attended
and addressed the side event themed by “nature and climate actions of the banking industry” in the second phaseof COP15 (the 15th session of the Conference of the Parties of the United Nations Framework Convention on
Climate Change (UNFCCC)) via video link. Wang Jingwu pointed out that ICBC has incorporated green financeinto its development strategic, strongly supported biodiversity protection, and contributed its bit to the buildingof a beautiful world in which all things are in perfect harmony. First, ICBC has strengthened top-level design by
including biodiversity protection into the Group’s strategy. Second, ICBC has strengthened layout optimizationand increased investment and financing support. Third, ICBC has strengthened innovation as the drive andactively built the biodiversity financing product system. Fourth, ICBC has strengthened the bottom-line thinking
and kept enhancing environmental risk management. Fifth, ICBC has strengthened cooperation and mutual
benefits by actively promoting international cooperation in green finance. At the side event, the Bank participatedin the release of the Joint Action Plan of Banking Institutions to Support Biodiversity Protection.

On December 14, 2022, the Bank’s Executive Director and Senior Executive Vice President Wang Jingwu attended
the side event themed by “nature and climate actions of the banking industry” in the second phase of COP15

Attending the 17th 21st Century Annual Finance Summitof Asia
On December 20, 2022, the Bank’s Executive Director and Senior Executive Vice President Wang Jingwu
attended the 17th 21st Century Annual Finance Summit of Asia via video link and gave a keynote speech titled“Fulfill the Responsibilities as a Large Bank to Support the Real Economy” at the main forum themed by“The methodology of seeking progress while maintaining stability: responsible finance leads to final success”.
Wang Jingwu pointed out that in supporting green development with green finance, ICBC increased supply ofgreen financing, accelerated innovation in green finance, improved ESG risk control, actively participated in
preparation of international standards, and served the green transition of the real economy, actively contributing
to sustainable development of the economy and society. Next, ICBC will continue to apply the new development
philosophy in full, in the right way, and in all fields of endeavor, earnestly fulfill the responsibilities as a large
state-owned bank, and continue to inject ICBC drive into high-quality economic and social development.

On December 20, 2022, the Bank’s Executive Director and Senior Executive Vice President Wang
Jingwu attended the 17th 21st Century Annual Finance Summit of Asia via video link

2022 Special Report on Green Finance （TCFD） 69

Hosting the BRICS Business Council - New Development
Bank Dialogue
On June 15, 2022, the Bank’s Senior Executive Vice President Zhang Weiwu gave a welcome address at the
BRICS Business Council – New Development Bank Dialogue. Zhang Weiwu called on the parties to act insynergy and provide financial support to pragmatically promote robust, green, healthy, high-quality developmentof BRICS countries. The theme of the dialogue is “Jointly Build a Future of High-quality Development” andhad two themed roundtable discussions, “Sustainable Development” and “Strengthen Development Resilience”.
The dialogue deepened the consensus of the parties, provided new thoughts on future operation, and was helpful
for BRICS to implement the United Nations 2030 Agenda for Sustainable Development. ICBC, as chair unitof BRICS Business Council Chinese Chapter and leader unit of the financial service working group Chinese
Chapter, hosted the dialogue.

On June 15, 2022, the Bank’s Senior Executive Vice President Zhang Weiwu attended the BRICS Business Council –New Development Bank Diagloue by video link themed by “Jointly Build a Future of High-quality Development”

Attending the “China International Finance Annual Forum2022” of CFTIS
On September 2, 2022, Zhou Yueqiu,then Chief Economist of the Bank, gave a keynote speech at the “China
International Finance Annual Forum 2022”, a special event of the China International Fair for Trade in Services(CFTIS). Centering on the topic of climate investment and financing, Zhou Yueqiu, starting with the three major
functions of “resource allocation” “risk control” and “price discovery”, analyzed in depth the important roleand responsibility of green finance in responding to climate challenges, and put forward a new outlook for highquality development of green finance.

On September 2, 2022, Zhou Yueqiu, then Chief Economist of the Bank, attended the “China International Finance Annual
Forum 2022” of CFTIS

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Industrial and Commercial Bank of China Limited

Actively promoting BRICS cooperation and contributing
green resources to the industrial and commercial circles
In February 2022, ICBC served as chair unit of BRICS Business Council Chinese Chapter and continued
to work as leader unit of the financial service working group Chinese Chapter. Under the guidance of the
Ministry of Foreign Affairs, the Bank actively promoted cooperation in ESG and green finance under the
BRICS cooperation framework.
On the council level, during the reporting period, the Bank released the BBC Joint Statement on Jointly
Building Sustainable Partnership, calling on the industrial and business circles of BRICS countries tosupport the low-carbon, circular economic system and help promote green transition and development.
The Bank held the “BRICS Solutions for Sustainable Development Goals Awards 2022” to explore bestpractices and optimal solutions and promote cooperation and communication among BRICS.
On the financial service working group level, the Bank made deepening cooperation in ESG and green
finance a job priority of the year. It organized and held the BRICS Business Council - New Development
Bank Dialogue and set two themed roundtable discussions, “Sustainable Development” and “Strengthen
Development Resilience” for the dialogue. It completed the BRICS Green Finance Cooperation Report incooperation with others, providing workable, replicable job recommendations on green finance to BRICS.
In addition, the Bank launched three sessions of “BRICS Green Finance Series Workshops” centering on
the topics of “green bonds” “green credit” and “carbon market and carbon finance”.

Making full use of BRBR to build a green consensus
On July 14, 2022, BRBR and GIP, with the support of Crédit Agricole Corporate and Investment Bank andIndustrial Bank, jointly held the Common Ground Taxonomy: Sustainable Finance workshop. Nearly 200
representatives including BRBR members and observers attended the workshop. On November 5, 2022, theParallel Session “promoting transitional finance for green and low-carbon development” of the Hongqiao
International Economic Forum was held during the 5th China International Import Expo (CIIE). Representativesof government organs, financial institutions, enterprises, academic research institutions and international
multilateral organizations from more than 20 countries and regions attended the forum. At the forum, a numberof results including the Bank’s research report on transition finance information disclosure, “carbon neutrality”
themed BRBR green bonds and the “ICBC Green Bank +” brand were released.

2022 Special Report on Green Finance （TCFD） 71

Serving China-Europe economic and trade relations and facilitating
China-Europe cooperation in carbon peak and carbon neutrality
During the reporting period, the Bank, in cooperation with the China-Europe Business Council (CEBC) jointly
initiated and established by excellent enterprises from various areas in China and Europe, held series green
finance related events. The Bank held two sessions of the “Best Carbon Peak and Carbon Neutrality Practices”
themed capability building forum. The Bank held the China-Europe Common Ground Taxonomy: Sustainable
Finance themed capability building forum, at which it put forward the action plan of jointly building a “green
bridge” and provided practical path suggestions to promote China-Europe cooperation in carbon peak and carbon
neutrality and realize sustainable development. The Bank also held the Carbon Border Adjustment Mechanism(CBAM) seminar. During the 5th China International Import Expo, the Bank organized the China Europe CEO
Summit themed by “Green Innovation for a Shared Future” and released the Build the China-Europe Economic
and Trade Cooperation Bridge - Research Report on Economic and Trade Cooperation between Chinese andEuropean Enterprises.

Overseas institutions held various green finance themed events
During the reporting period, the overseas institutions of the Bank held or participated in dozens of green financerelated events and supported China’s communication and cooperation with their host countries in green finance.
For example, in March 2022, ICBC (Europe) Amsterdam Branch held “China-The Netherlands Cooperation
Forum on Protected Agriculture and Gardening”. In November 2022, Zurich Branch successively held ChinaSwitzerland Sustainable Finance and Investment Forum, and ICBC (Europe) Madrid Branch successfully
held the forum “Investment Opportunities in China and Spain Against the Backdrop of Carbon Neutrality”. In
December 2022, ICBC (Europe) Paris Branch and Natixis developed cooperation in green and sustainable finance.

Holding domestic and international communication
meetings on climate risk management
On December 14, 2022, the side event themed by “China corner”——“nature and climate actions of the banking
industry” in the second phase of COP15 (the 15th session of the Conference of the Parties of the United Nations
Framework Convention on Climate Change (UNFCCC)) was held in Montreal, Canada. The chief expert of theclimate risk working group of the Bank gave a keynote report titled Climate Risk Management and Biodiversity
Protection. During the reporting period, the Bank led or participated in peers’ communication meetings of thedomestic banking industry multiple times and shared its climate risk management practices.

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Industrial and Commercial Bank of China Limited

Part IX
Awards andHonors2022 Special Report on Green Finance （TCFD） 73

◆ China Banking and Insurance Regulatory
Commission, China Banking Association
Excellent Green Banking Institution
Institution with Outstanding Contribution for theProfessional Committee of Green Credit◆ Ernst & Young Hua Ming LLP
Excellent Case of EY Sustainability ExcellenceAwards 2022
◆ Sina Finance
China ESG Golden Awards 2022 - Annual Sustainability
Award
China ESG Golden Awards 2022 - Best Responsible
Investment Bank Award
China ESG Golden Awards 2022 - Best Environmental
Responsibility Award (E)◆ The AssetBest Bank For Sustainable Finance, Domestic
Best Green Bond Award - ICBC USD3.2 Billion
Global Multi-currency “Carbon Neutrality” Theme
Overseas Green Bonds◆ International Finance Forum
Global Green Finance Award 2022 - Innovation
Award◆ The Economic Observer
Trustworthy Green Financial Institution◆ Green Finance Forum of 60
GF60 Green Finance Awards - Best Financial
Institution◆ BRICS Business Council Chinese Chapter
2022 BRICS Solutions for Sustainable Development
Goals Competition: Masterpiece Award under the
category of livelihood improvement, ExcellenceAward and Masterpiece Award under the categoryof international cooperation, and Innovation &Improvement Award

74

Industrial and Commercial Bank of China Limited◆ Southern Weekly
Low-carbon Pioneer 2022
◆ China.com.cn
Excellent Case of Green Finance of the Year2022
◆ Belt and Road Green Investment Principles
Best Green Finance Practice Award◆ Hong Kong Quality Assurance Agency
Outstanding Award for Green and Sustainable
Bond Issuer (banking industry) - Largest Amountof Carbon Neutrality Green Bonds
Outstanding Award for Green and Sustainable
Bond Issuer (banking industry) - Largest Single
Carbon Neutrality Green Bond
◆ The Chinese Banker
2022 China’s Financial Service Innovation
Awards - Top 10 Innovations in Green Finance◆ Global Finance
Outstanding Innovations in ESG - Carbon
Neutral Asset Allocation Index◆ The Asian Banker
Achievement in Climate Risk Management
Best Asset Management Product in Green andSustainable FinancePart X
Appendices

TCFD Recommendations Index
Principles for Responsible Banking (PRB) Index
Notes to the Report
Feedback Form

2022 Special Report on Green Finance （TCFD） 75

TCFD Recommendations Index◆ GovernanceContentsa) The Board of Directors’ monitoring on climate-related risks and opportunitiesb) Describe the responsibilities of the Management for assessing and managing climate-related risks
and opportunities										

Page
5-8
9-12

◆ Strategy
Contentsa) 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)

Page
25
14-17, 25
26◆ Risk management
Contentsa) 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

Page
24-26
24-26
24-26

◆ Metrics and Targets
Contentsa) 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			

76

Industrial and Commercial Bank of China Limited

Page
25-26
28, 59-60
14-15

Principles for Responsible Banking (PRB) Index

Principle

1

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.

Consistency

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.

28-51

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.

14-15

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

24-26

2.2 Objective setting

15, 24-26

2.3 Objective implementation and monitoring plan

24-26

2.4 Objective implementation progress

24-26

Principle

3

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.

ContentsPage

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).

59-60

2022 Special Report on Green Finance （TCFD） 77

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

59-60

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
Corporate governanceand banking culture

66-72

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

5-12, 20-22

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.

7-101

5.3 Governance structure for implementation of the Principles for Responsible Banking

2-71

6

Principle

Transparency andresponsibility

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.
Contents

6.1 Implementation progress of the Principles for Responsible Banking

Note: 1. Please refer to the Bank’s 2022 Semi-annual Report on Corporate Social Responsibility (ESG) and Sustainable Development for more details.:
http://www.icbc-ltd.com/page/743763499058024448.html

78

Page

Industrial and Commercial Bank of China Limited

Page

3，64，661

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, 2022, 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 principlesof the UN Global Compact, and the SDGs of the UN, and meets the Green Credit Statistics Systemand 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, Socialand Governance Reporting Guide issued by the Stock Exchange of Hong Kong Limited and otherrelevant opinions and guidelines.

Data
Data used in this report is mainly from 2022, most of which is excerpted from the statistical data of
the Bank’s internal systems and branches. Unless otherwise provided, figures involved in this reportshall be in RMB.

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 Chinese version shall prevail.

2022 Special Report on Green Finance （TCFD） 79

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 philosophyof green operation, and fulfill 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 thisreport are?
High 〇 Relatively high 〇 Average 〇 Low 〇5.To what extent do you think this report can effectively demonstrate the environmental and social
influence and contributions of ICBC’s green finance work?
Very good 〇 Good 〇 Average 〇 Poor 〇6.To what extent do you think the layout and design of this report are suitable for reading?
Very good 〇 Good 〇 Average 〇 Poor 〇7.Your suggestions on the Bank’s green finance work and this report80

Industrial and Commercial Bank of China Limited

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