Chongqing Rural Commercial Bank (First Year Implementation)

Adoption Date: 27 Feb 2020
Region of Headquarters: Asia-Oceania
Current EPFI Reporting Year/Period: First Year Implementation
Institutional Reporting: No Report Available

 

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Further information on this EPFI may be obtained through the Institutional Reporting hyperlink.

Implementation of the Equator Principles

1.Improvement of organizational structure

In order to ensure the effective implementation of the Equator Principles, in 2020, CQRCB has established a “1+3+22+N” organization system, which means Green Finance Committee + 3 working groups + 22 departments of the head office + various institutions of the whole bank. A special green finance committee is set up under the management to coordinate and to promote the development of green finance. The committee established three groups: green finance, green operations, and green culture lead by logistic, credit management and party-masses relationship department. The department of company business has established a green finance department, which is responsible for the implementation and management of the EP, green finance policy research, business management and promoting green finance.

2.Supplement of Principle 8: Covenants

“Principle 8: Covenants” was supplemented into the bank’s environment and social risk management contract:

“Clients shall promptly and fully inform the bank of various permits, approvals, and approvals related to environmental and social risks in the process of commencement, construction, operation, and shutdown, and the assessment and inspection of its environmental and social risks, the supporting construction and operation of environmental facilities, the discharge and compliance of pollutants, the major complaints and protests from neighboring communities, and other matters that the bank believes are related to environmental and social risks, etc.”

“Cooperate with the bank or a third party recognized by the bank in the assessment and inspection of Clients’ environmental and social risks, and perform duties that the bank believes are related to the control of environmental and social risks.”

3. Guidance by incentive system  

Incentive policies was set up to Guide credit funds to be invested in projects with slight or no adverse risks and impacts on the environment and society, category B and C projects for instance. Develop Chongqing Rural Commercial Bank’s Guiding Opinions on the Development of Green Credit. A preferential channel for projects related to green finance was established with optimized approval processes.

4. Organize training

Since joining EB in February 2020, the bank organized 5 EP training sessions for 24,709 staffs.

5. Activities

The theme contest of “Rural, commercial and green finance” with the background of environmental and social risk management was launched, and to reward any staff who gives constructive ideas regarding green finance.

6. External cooperation

(1)    Became the first local bank in Chongqing which joined the National Green Finance Committee.

(2)    A strategic cooperation memorandum with the Green Finance Development Research Center of Tsinghua University was signed. Mr. Ma Jun was appointed as consultant for green finance development of the bank.

(3)    Entitled to be West China’s first member of the UK-China climate and environmental risk information disclosure group, setting up Environmental Information Disclosure Work Plan practically based on different projects, in order to improve the information quality addressing the bank’s climate and environmental risk disclosure works.

(4)    The bank was active in supporting the development of  local carbon trading platform, and recognized the economic value of carbon emissions by providing financial technology support.

(5)    Actively participating in the construction of the city’s green-data integrated service system.

(6)    Signing strategic cooperation memorandum with government and enterprises to promote green finance development.

(7)    Actively supporting the construction of Chongqing’s green finance innovation test area, setting up special working groups between headquarter and branches and insist on active engaging and field research. It is the responsibility of the branch presidents to give full support to the construction work.

7. Business development

By the end of 2020, the bank’s green loans balance reached 24.5 billion yuan, which indicates a net increase of 7.5 billion yuan in one year with growth rate of 44%. The bank’s green loans balance of city’s financial institutions market share ranking was increased by 1.

CQRCB’s Social Responsibility Report 2020 is available here.