Industrial Bank was Invited to Attend the “Green Credit Forum of

Emerging Market Countries” Jointly Held by CBRC and IFC

From May 16 to 17, China Banking Regulatory Commission (CBRC) and International Finance Corporation (IFC) jointly held the first “Green Credit Forum of Emerging Market Countries” in Beijing, and Industrial Bank (IB) attended the forum upon invitation. President Li Renjie delivered a keynote address at the conference as the representative of the banking institutions. Liang Pingrui, General Manager of the Sustainable Finance Department gave a thematic speech at the sub-forum for the green credit practice of financial institutions in the banking industry of China, and Ms Lu Biying from the Legal and Compliance Department participated in the round table discussion in the sub-forum for the green credit practice of international banking and financial institutions and gave a speech.

This forum is the first international conference on green credit dominated by emerging market countries. Representatives from the banking regulatory authorities of 12 emerging market countries such as South Korea, Brazil, Bangladesh, and Indonesia, banking and financial institutions both from home and abroad, and representatives of relevant international organizations in the field of sustainable banking attended the conference, jointly discussing hot topics in the field of green credit such as sustainable banking business, management of environmental and social risks, and relevant financial innovation opportunities from three perspectives respectively, namely, banking regulation, banking institution, and technical resources and tools. Wang Zhaoxing, Vice Chairman of CBRC, pointed out in the keynote address that green and sustainable development had become a tide of this age in the current world, and the financial regulatory authorities and financial institutions in emerging market countries could push forward the green development of society and economy in five aspects. First, upgrading the implementation of green finance as a national strategy and policy; second, formulating credit policies in the green orientation; third, guiding the distribution of financial resources with effective incentive and restrictive mechanisms; fourth, financial institutions should foster a green finance culture with self-conscious social responsibility mechanism; fifth, creating a social environment for green finance with well-established legal and supervisory mechanisms. And Karin Finkelston, Vice President of IFC, indicated in her speech at the conference that sustainable development was both a challenge and an opportunity for financial institutions in the banking industry; it might help banks to increase the values of credit assets, so financial institutions should discuss together with each other on how the sustainable development of environment and society could be embedded into financial activities.

President Li Renjie said in his speech at the conference that green credit and green finance businesses would not only be a market with great potential and important orientation for the business development of commercial banks in the future, but more an important grab to propel the transformation of commercial banks. In recent years, the green financing handled by IB has reached RMB 130 billion accumulatively. Officials and experts from various countries attending this forum all agree that finance can guide the flowing direction of social resources through its leveraging function and resource-distributing function, and hence has a direct influence on the implementation effect of macroeconomic control policies. To develop green finance and take a green development road is not only a major opportunity to respond to the global financial crisis in an effective manner, but also an important way to break through the restriction of environment and resources and achieve sustainable development. Financial institutions should and can play a greater role.

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