The “2010 China Brand Value Management Forum” and the awards ceremony for “The 6th China Best Brand Construction Case” were held on October 26. The event was jointly held by 21st Century Economy News and Interbrand, the biggest comprehensive brand consultancy company in the world. During the awards ceremony, the China 's low-carbon credit card created by the Industrial Bank was granted the “China Best Brand Construction Case” Contribution Award. The card bears is noted for “practicing green finance and advocating a low-carbon lifestyle”. The jury deemed that “IB low-carbon credit card” stands high and aims far, has unique functions, corresponds with current mainstream values and hot points in social life, brings the credit card's function as a personal financial medium into play, introduces the concepts of “green, environmentally-friendly and low carbon” into people's lives and at the same time provides cardholders with a comprehensive personal carbon purchasing platform, thereby becoming an effective way for people to get involved in low-carbon.
“Low Carbon”- from businesses to individuals
Being the first in China to offer energy efficiency financing, IB has established itself as a pioneer and strong proponent of green credit in China . This successful trial increased the Industrial Bank's determination to delve deeper into green finance. On October 31, 2008, the Industrial Bank officially announced its commitment to the “Equator Principles”, thus becoming the 63 rd Equator Bank in the world and China's first. By the end of July, 2010, the bank had issued a total of 607 loans to support energy conservation and emissions reduction projects, totaling at RMB 34.675 billion.
While vigorously promoting the financing of energy conservation and emissions reduction in the corporate sector, IB also began to think about how to introduce the concept of low carbon into personal finance and use its social responsibility and influence as a corporation to advocate low carbon lifestyles and green consumption, which will play a role in striking a harmonious balance between people, nature, environment and society.
On January 28, 2010, IB's low-carbon credit card was launched nationwide. Capitalizing on the experience it had gained in green credit, IB opted to cooperate with authorized carbon emissions traders in the creation of the first payment channel for the personal purchase of carbon emissions reduction quota, thereby providing a feasible new approach for individual clients to realize “carbon neutralization”. Just as a senior manager in CBEEX said, the launch of the low-carbon credit card is a small step in itself, but will come to represent a major step in China 's carbon trading, green consumption and low-carbon consumption history.
Personal Support of Energy Conservation and Emission Reduction Projects
“Currently, there more than 60 banks in the world have adopted the Equator Principles. We are the first Equator Bank in China . Since we have positioned ourselves as a green bank, we have found in practice that many enterprises and individuals have a strong sense of responsibility, a real demand for carbon emission reduction, and a genuine desire to support the reduction of carbon emissions. They hoped for an easy to use trading platform that would make this possible. Our low-carbon credit card addresses this demand.” vice president of IB retail banking management headquarters and GM of the credit card center Yan Xuewang said.
The low-carbon credit card issued by IB extends energy conservation and emission reduction from the corporate sector to personal consumption, providing individuals with a feasible and convenient means to get involved in energy conservation and emissions reduction. This card has the following features: firstly, IB joined with the Beijing and Shanghai Environmental Exchanges, authoritative environmental rights and benefits transaction institutions in China, to develop a credit card carbon emission reduction personal purchase platform, which is the first bank transaction channel for individuals to engage in carbon transactions; secondly, IB has established the first “personal green file” system in association with the Beijing Environmental Exchange to realize the tracing of personal carbon transaction records, and thereby encouraging card holders to actively get involved in carbon emission reduction and lead a low-carbon lifestyle.
All consumers inevitably generate carbon emissions and form carbon “footprints” during the course of daily life and work. Some people are committed to environmental protection and have a willingness to become carbon neutral, but in the past they have lacked a convenient and feasible means of doing so. For them, IB's low-carbon credit card is an excellent choice. With just one phone call, cardholders can purchase carbon reduction quota from the environmental exchange using IB's low-carbon credit card. The payments will be collected and used to support energy conservation and emission reduction projects registered at the exchange. The supported enterprises use these funds to realize energy conservation and emissions reduction through technical renovation. The reduced carbon emissions effectively offset the emissions of the consumer, leading to carbon neutralization.
At present, IB's low-carbon credit card has supported five energy conservation and emission reduction projects by this means, cutting carbon emissions by 17,700 tons, which is equal to the amount of carbon generated by 127,000 people flying 1,000 kilometers on an airplane.
Low-carbon Credit Card's Future
The nation clearly stated in the suggestions for the twelfth “Five Year” plan that China should “establish green and low carbon development concepts, focus on energy conservation and emissions reduction, improve incentive and restraint mechanisms, expedite the development of conservation-oriented and environmentally friendly modes of production and consumption and strengthen sustainability”. This indicates that the low carbon economy is will be the direction of the future, and that this will continue to bear an influence on the actions of enterprises and individuals. As a financial innovation, the low-carbon credit card combines a financial product with the concept of voluntary emissions reduction. This not only facilitates the sustainable development of the bank, but also encourages the public to get involved in green consumption and actually reduces the emission of greenhouse gases, so it is beneficial for the environment and society. Therefore, the card is certain to have a bright future and promising market prospects.
In a period of less than a year since the IB low-carbon credit card was launched, the card has been welcomed by the market for its brand-new concept of green consumption concept, with almost 100,000 cards having been issued. Clients have purchased over 17,700 tons of carbon emission reduction quota with the card.
At the 2010 First Low Carbon Consumption Summit and Low Carbon Consumption·Chinese Influence Awards Ceremony held in May 2010, IB's low-carbon credit card was named as one of the “Top 10 Most Influential Brands”.
At the “2010 China Credit Card Summit Forum and Tencent Credit Card Appraisal Release Ceremony” held in July 2010 by Tencent and the Chinese Banking Research Center of the Central University of Finance and Economics, IB's low-carbon credit card was granted the “Best Contribution of a Credit Card” award.
The recognition that the card has received as an innovative move in China's financial industry to promote the low carbon economy and green consumption is highly evident.