The results of the 2009 “Sustainable Banking Awards”, organized by the Financial Times in partnership with the IFC, were announced in London on June 4th. A total of 117 renowned banks from 42 countries, such as the Deutsche Bank and the Standard Chartered Bank, vied for honors in five different categories. On the strength of its pioneering work and achievements in sustainable banking, the Industrial Bank, China 's first Equator Bank, picked up two nominations for the 2009 sustainable banking awards:“Sustainable Bank of the Year” and “Asian Sustainable Bank of the Year”.
In the finals, the Industrial Bank was awarded the title “Asian Sustainable Bank of the Year”, becoming the first bank in China to receive this accolade. The Industrial Bank is the only bank in China to have been nominated in the Sustainable Banking Awards for three consecutive years and to have been successful on two occasions.
The “Sustainable Banking Awards” were founded in 2006 by the Financial Times and IFC This year's event consisted of awards in 5 different categories, namely the Sustainable Bank of the Year, Sustainable Emerging Markets Bank of the Year, Achievement in Basic Needs Financing, Banking at the Bottom of the Pyramid and Sustainable Investor of the Year. The awards aim to commend banks that give consideration to social, environmental and corporate governance goals in their business activities and that have played the role of leaders and innovators in such areas. The granting of the “Asian Sustainable Bank of the Year” to the Industrial Bank is to commend the bank for its outstanding performance in green credit, sustainable finance, adopting the “Equator Principles” and the financing of projects that can conserve energy and cut green house gas emissions.
The financial crisis has given strategic significance to sustainable development. In response to government calls for “scientific development” to mitigate the impact that rapid economic development has on the environment, as the one of the first commercial banks in China to address environmental issues and call for green credit, the Industrial Bank has put Scientific Outlook on Development into practice by integrating the notion of sustainable development into its philosophy of corporate governance and development strategies. By taking a series of effective and comprehensive measures to achieve sustainable development, the Industrial Bank is encouraging itself to fulfill its social responsibilities and make efforts to seek a balance between man and nature and environment and society.
On October 31, 2008, the Industrial Bank officially announced that it would be adopting the Equator Principles. With this, the Industrial Bank became the first bank in China to conduct project finance on the basis of the Equator Principles and other international standards concerning sustainable development. This move demonstrated that the Industrial bank is among the top flight of domestic commercial banks in terms of the adoption of advanced international modes, the enhancement of environmental and social risk management and the promotion of scientific and sustainable development. It was also a major move in support of the “Green Credit Policy” advocated by the China Banking Regulatory Commission, the People's Bank of China and the Ministry of Environmental Protection.
Since committing itself to the Equator Principles, the Industrial Bank has been sparing no efforts in putting the principles into practice and increasing the effectiveness of its sustainable finance.
The bank has sought to strengthen its internal capacity by focusing on organization structure, working mechanisms, development of management systems, internal dissemination and IT related R&D, and is gradually formulating a set of tools for the scientific management of environmental and social risks. These tools are used to optimize the bank's credit policy and promote a strategic shift in the structure of the bank's operations. At the same time, in the aim of enhancing management at the source and achieving mutual benefit, the bank has helped to deepen the understanding of sustainable development in companies so that they are fully aware of environmental and social risks. It has also offered innovative financing products to support energy conservation and emissions reduction, and became the first bank to expand financing in this field to include carbon finance.
The Industrial Bank challenged traditional modes of thought by defining environmental and social risks as the most fundamental element of social responsibilities. Through in-depth cooperation with the National Development and Reform Commission, the Ministry of Environmental Protection, the China Banking Regulatory Commission, the People's Bank of China and local government and by sharing its system of management for environmental and social risks as well as its experiences and practices in sustainable development with other banks, the Industrial Bank has encouraged other banks to establish systems for the management for environmental and social risks, encouraged the development of energy conserving and emissions reducing finance and pointed out the way for the sustainable development of China's banking industry.
In March 2009, the Industrial Bank attended the “Manage Risks- Realize Sustainable Development” Forum that was held in Vietnam. During the forum, the Bank delivered a speech that demonstrated its pioneering spirit and outstanding achievements as China's leading green bank by talking about the bank's experiences in green credit, financing for energy conserving and emissions reducing projects, the Equator Principles and the new approach to social responsibility known as “Integrating Morals into Profits”. The speech was met with a fantastic response from banks present at the meeting. It will help to spread the notion of sustainable development in other emerging market countries.
The Industrial Bank is currently making preparations for a dedicated column about sustainable finance on its website. It hopes to enhance its links with financial organizations, enterprises, media organizations and NGOs and thereby promote the globalization of sustainable development through the construction of a platform for communication that is not restricted by national borders.