The results of the “2009 Sixth China Best Corporate Citizen Awards” were recently announced. The Industrial Bank was granted the Best Corporate Citizen Award for the third year in a row. The event was organized by 21st Century Business Herald and 21st Century Business Review.
Organizer 21st Century stated that that the Industrial Bank has been granted this award because it is the first bank in China to put the Equator Principles into practice, and it was also the first bank in China to offer loans aimed at energy consumption and emissions reduction. In doing so, it has successfully established its image as a pioneer and advocate of “Green Credit” in China. This award is renewed recognition of the efforts and accomplishments that the Industrial Bank had made in terms of social responsibilities and sustainable finance.
The Industrial Bank believes that the social responsibilities of a bank go beyond profit-making, tax payment and charitable donations. Social responsibilities involve doing business in an appropriate manner, understanding and addressing the concerns of interested parties and relying on the unique advantages and influences that banks have in social and economic development to set and example and encourage companies and even industries to pay attention to their social responsibilities. Based on this viewpoint, the Bank has developed the concept of Integrating Obligations into Interests, under which it has integrated the concept of social responsibility and sustainable finance into the bank's development strategy in order to be more responsible.
Guided by the concept of Integrating Obligations into Interests, Industrial Bank has elevated sustainable development to the strategic level by incorporating it into the bank's developmental targets and corporate culture. The bank has also integrated social and environmental factors into its business procedure and operation as well as required that its staff become more conscious of social responsibilities. This allows sustainable development concepts to become embedded in the operational strategy of the bank. This way, the needs and requirements of a diverse range of interested parties such as the public,ecological environment and the social progress will be given consideration as the bank conducts its business, and the bank will act responsibly as it provides services and expands business. In this way the bank will establish itself as an outstanding corporate citizen.
To implement the nation's environmental policy of green credit, Industrial Bank has formulated credit permit regulations for the major industries which take environmental protection compliance into consideration when reviewing and approving credit, granting loans and monitoring risks. Under these regulations, projects that fail to meet environmental requirements can be refused on the power of a single opposing vote. Through dynamic tracking, monitoring, feedback and analysis, the Industrial Bank makes prompt judgments on the environmental and social risks of customers who have been granted credit and factors that could lead to problems. Additionally, the Industrial Bank has also followed global trends and adopted the Equator Principles, the globally recognized financial industry standard. Currently, Industrial Bank has completed the preparations for the implementation of the Equator Principles, which has involved redesigning systems, operating procedures and conducting internal training. The first project to be governed by the Equator Principles, namely, the Fujian Hua Dian Yong An Power Generation Co., Ltd's 2×300MW expansion was formally launched in December 22, 2009. This symbolizes that Chinese banks have realized the transition from internal standardization of social and environmental risk management to the implementation of actual projects. This is testament to the fact that sustainable finance in China has taken another step forward.
The Industrial Bank stated that it will continue its support for the nation's green credit policy and implement the Equator Principles, improve its environmental and social risks management system and promote the sustainable development of the economy, society and environment.