Beijing’s push for greater green financing in China is prompting leading financial institutions to step up their environmental information disclosures.
The Shenzhen branch of Industrial Bank Co., Ltd. released its “2020 Environmental Information Disclosure Report” (2020年环境信息披露报告) on 14 July.
The move marks the first time that a commercial bank in China has publicly released an environmental report outlining the carbon footprint of its financial activities, as well as the first time that the branch of a national bank in China has publicly released its own environmental information disclosure report.
Industrial Bank calculated the carbon foot print of its business and lending activities based on the “Financial Institution Environmental Information Disclosure Guide” (金融机构环境信息披露指南) issued by the Chinese central bank, while also analysing the environmental impact of its green finance strategy, environmental and social risk management systems and investment activities.
According to the report as of the end of 2020 the green loan balance of Industrial Bank’s Shenzhen branch was 6.228 billion yuan, while projects supported by its green loans have achieved annual coal reductions of 6769 tonnes, and annual carbon dioxide reductions of 14,094 tonnes.
Beijing has pushed hard for greater growth in green financing in China since the start of 2021, after unveiling the ambitious emissions mitigation targets of peak carbon by 2030 and carbon neutrality by 2060.