Kang Yukun, Vice President of IB, held business talks with Citibank, Bank of Nova Scotia

and Hang Seng Bank on sustainable finance, environmental and social risks management and mutual business cooperation

In order to learn more about the advanced experience and operation models of excellent international Equator Banks in sustainable finance and environmental and social risks management, to improve IB’s management level of sustainable finance, to improve IB’s ability in risk management and compliance operation of new products and new businesses and to expand the scope of cooperation with international counterparts, Kang Yukun, IB’s Vice President, held business talks with Citibank, Bank of Nova Scotia and Hang Seng Bank in the middle of March 2011.

As one of the most powerful multinational financial groups in the world, Citibank Group has, for a long time, remained an international leader in assets, service network and business varieties and is particularly known for its rich management and practice experience in environmental and social risks management and sustainable finance. From 2008 up to the present, Citibank has carried out multi-level and multi-dimensional cooperation with IB in the exchange of experience in the Equator Principles and sustainable finance. After taking presidency of the Equator Principles Steering Committee from 2009 to 2011, Citibank has been highly interested in and deeply involved in IB’s progress in the implementation of the Equator Principles, and even in the promotion of the Equator Principles in China. Scotiabank is not only one of the largest financial institutions in North America but also one of the world’s major Equator Banks. Scotiabank has been involved in a lot of financing operations of environment-related projects and boasts of world-leading rich experience and good practices in sustainable finance. After adopting the Equator Principles in January 2005, Scotiabank set up a perfect environmental and social risks management system. As the Canadian chairman of NATF of UNEP FI and one of the best domestic employers in Canada, Scotiabank has excellent concepts and rich experience in developing and performing corporate social responsibilities.

The exchange of ideas with the two excellent international Equator Banks was focused on the Equator Principles, environmental and social risks management, social responsibilities and financial cooperation. Citibank elaborated upon its experience and understanding in the course of implementing the Equator Principles, and demonstrated to our delegation the overall situation and relevant regulations of its environmental and social risks management system (ESRM). Our delegation was deeply impressed by a series of concepts and measures adopted by Citibank’s Sustainable Development Department to promote the bank’s sustainable development. Scotiabank has a lot in common with IB in the framework and system of implementing the Equator Principles. Scotiabank cares about sustainable financial innovation and is very outstanding in promoting everybody-wins development of society, environment and economy by means of innovative financial products, including common funds, credit loans for energy-saving equipment in the retailing industry and interest refunds for green construction projects. IB discussed separately with Citibank and Scotiabank about mutual cooperation in financing future projects within the territory of China, to which the Equator Principles are applicable.

Hang Seng Bank is the second largest shareholder of IB. Since the two banks carried out stock cooperation in 2003, the two banks have had close and highly effective cooperation in corporate governance, risk management and credit card business, and have established a partnership based on mutual trust and joint progress. The meeting with Hang Seng Bank was centered on risk and compliance management. Hang Seng Bank gave a detailed introduction to its risk management structure and the management models of credit risks, market risks and operational risks, and its compliance policy, management system and management measures. Moreover, Hang Seng Bank used its wealth management products and other new products as examples to elaborate on its risk assessment and approval process, which was very inspiring to IB in its risk management and compliance work.

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