On October 15, the "Climate Ambition and Global Action - Zero Carbon Mission 2024 International Climate Summit", hosted by Phoenix Satellite Television, the Beijing Office of the World Wide Fund for Nature and the Beijing Office of the Rocky Mountain Institute (RMI), was held at the Beijing Phoenix Center. During the summit, China's Industrial Bank (CIB) received the "Pioneering ESG Financial Institution of the Year" award for its leadership in environmental, social and governance (ESG) practices, making it the only Chinese financial institution to claim the accolade.
The summit was organized in response to the 29th Session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP 29) in Baku, Azerbaijan. It aimed to support global efforts in carbon reduction and green transition. During the event, Xia Weichun, incoming Secretary of the Board of Directors and General Manager of the Board of Directors and Supervisors Office at CIB, held in-depth discussions with various parties on "Progress of Stakeholders in Advancing the 2030 Agenda for Sustainable Development", contributing to global climate governance and environmental protection cooperation.
As a pioneer in China's ESG movement, CIB has embraced the political and people-oriented responsibilities of the financial sector and strengthened its ESG governance structure and management system. It has charted a course of balanced development that aligns economic, social, and environmental interests, harmonizing international standards with Chinese characteristics in its ESG journey.
In terms of corporate governance (G), CIB has been committed to developing a localized ESG roadmap. It has continuously optimized its top-level design by integrating ESG principles into its strategic planning. In 2022, CIB renamed its Strategy Committee of the Board of Directors as the Strategy and ESG Committee and introduced its ESG Policy, confirming the ultimate responsibility of the Board of Directors for ESG management with the Chairman leading the ESG Working Group. In addition, CIB pioneered the development of an ESG management system by establishing an industry-leading ESG Management Center that includes a closed-loop management system with four key modules: Strategy, Execution, Performance, and Communication. By setting annual priorities for ESG management, CIB has embedded ESG principles into its overall strategy, key decisions, daily operations, and employee behavior, effectively strengthening its internal governance.
In terms of the environment (E), CIB has positioned itself as a leader in green banking. Fully aligned with China's carbon peaking and carbon neutrality targets, CIB is committed to sustainable development through a variety of initiatives, including participating in the national carbon market, introducing innovative carbon financial products and improving its carbon financial service system. These efforts have enabled CIB to continuously enhance its professional capabilities in carbon financial services, introduce innovative products such as carbon quota pledge loans and sustainability-linked products, and provide comprehensive carbon financial services to major carbon-intensive companies and transition financial loans to the steel industry. As of June 30, 2024, CIB has served 65,000 green finance customers with a green finance balance of RMB 2.13 trillion. Of this, RMB 1.18 trillion has been allocated to carbon reduction projects, accounting for over 50% of the total.
CIB was also among the first in China's banking industry in adopting the United Nations Framework Convention on Climate Change's "Climate Neutral Now" initiative and setting its own carbon neutrality targets and roadmap. It has implemented a wide range of sustainable practices in its own operations, including green offices, green travel, green events, green consumption and green construction, providing valuable experience to support the industry's broader transition to carbon peaking and carbon neutrality.
In terms of social (S) aspects, CIB has translated its ESG leadership into differentiated service capabilities to support China's low-carbon transition and the international expansion of Chinese enterprises. It has developed an innovative "finance + non-finance" sustainable development service model, integrating ESG principles into corporate strategy to enhance the international competitiveness of Chinese enterprises. In April 2024, CIB partnered with Zhejiang University International Business School and Cambridge Judge Business School on a global consulting project to address the challenges faced by Chinese enterprises going global amid the EU's green transition. This project provides a comprehensive "finance + non-finance" service plan for enterprises at various stages of transformation, helping them develop ESG management structures that meet both international and domestic standards, ultimately enhancing the global competitiveness and influence of Chinese brands.
Since welcoming the International Finance Corporation (IFC) as a strategic investor in 2003, CIB has been at the forefront of in sustainable development, pioneering energy efficiency financing, advocating the "green to gold" concept, offering comprehensive carbon financial services, and embracing the United Nations Principles for Responsible Banking as a founding member. For more than two decades, CIB's commitment to sustainability has earned it recognition as a leading ESG benchmark in China's banking industry. In 2023, CIB's MSCI ESG rating was upgraded from A to AA, making it the only Chinese bank to receive the highest rating for five consecutive years. It was also the first Chinese bank to be included in S&P Global's Sustainability Yearbook (China). At this new stage of development, CIB is pioneering an ESG practice model centered on "meaningful profit". This model seeks to balance political significance, social benefit, environmental benefit and economic benefit, and advocates for an approach to development that prioritizes ecological conservation and green growth within the broader context of economic and social progress.