NGOs single out China Industrial Bank for green award
London, 31 July: China Industrial Bank Co has been recognised for its record on ‘green’ banking, with an award judged by eight Chinese NGOs.

The Fuzhou City-based bank was praised by the judges of the Green Banking Innovation Award for integrating social responsibility and sustainable development into its strategy. The NGOs also noted that the bank has recently announced it will adopt the Equator Principles, voluntary environmental and social guidelines for project finance.

It has introduced environmental criteria for business loans, and withdraws money if it discovers companies flout these conditions, the NGOs said. The bank collaborates with the International Finance Corporation to extend more than $200 million in loans for utilities to carry out energy efficiency improvements. It is also a member of the UN Environment Programme’s Finance Initiative. The bank is listed on the Shanghai Stock Exchange.

Yu Xiaogang, director of one of the NGOs on the judging panel, Green Watershed, explained the criteria used to choose a winner: “Green banking is defined from two dimensions. Internally, a green bank often improves resource efficiency and encourages employees to participate in environmental activities. Externally and more importantly, it has to minimise indirect environmental impacts through financing activities, and explores new opportunities from environment-related business.” Green Watershed focuses on integrated watershed management in the south-west of China.

The other judges were Friend of Nature, China’s first legal environmental NGO; the Institute of Public & Environmental Affairs; Green Earth Volunteer; Global Environmental Institute; Civil Society Watch; China Development Brief; and the Green Volunteer League of Chongqing. Corporate social responsibility consulting firm SynTao Co acted as advisor.

The award was presented at the Best China Banks Ceremony organised by the Economic Observer, and is the first award in China focusing on green banking and sustainable finance.

Banks were assessed based on information they submitted and information in the public domain.