Industrial Bank Lands First ESG-Linked Auto Finance Project Loan

Recently, Industrial Bank provided a loan of 80 million yuan to Huaxing Jinye Group for their Northwest Headquarters Center project, making it the first ESG-linked auto finance project loan by Industrial Bank.

The project is reportedly a benchmark sustainable retail service dealer project as indicated in the Mercedes-Benz Group’s China Sustainable Development Blue Book (2022-2023). It incorporates nine major sustainable development initiatives, including a solar photovoltaic system for power supply, and a series of carbon reduction construction schemes. The project’s loan interest rate is linked to the sustainable development performance indicators in Mercedes-Benz’s annual Sustainability Report and ESG Targets Summary, reflecting Industrial Bank’s deep integration of ESG into business development and its commitment to promoting the green and high-quality development of the automotive industry.

As a pioneer in the domestic ESG field, Industrial Bank’s MSCI ESG rating was upgraded from A to AA in 2023. It became the first domestic listed bank to achieve an AA rating from MSCI ESG and the only bank in the domestic banking industry to receive the highest rating for five consecutive years. This upgrade reflects the recognition of Industrial Bank’s outstanding performance in environmental, social, and governance areas, highlighting the bank’s active efforts and achievements in sustainable development. This rating upgrade further solidifies Industrial Bank’s leadership in the ESG field. Meanwhile, Industrial Bank has been actively promoting the development of innovative financial products, such as ESG-linked loans and wealth management products, to explore ESG service offerings. It has also been assisting clients in building ESG systems and has launched the “Dual Carbon Management Platform.” As a result, Industrial Bank has successfully created “carbon accounts” for over 1,300 corporate clients.