Mian Yang City Commercial Bank (First Year Implementation)

Adoption Date: 20 Jul 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

Roles and Responsibilities

MYCCB’s management mechanism for EP includes 3 levels:the Credit Review Board, The Business Management Department, and the Green Finance Office.

The Credit Review Board decides whether the projects meet the EP requirements and provides recommendations. The Business Management Department is an institution of MYCCB headquarter, which is in charge of identifying the projects that fall within the scope of the Equator Principles. The EP reviewers within The Business Management Department determine a project´s risk category and advise clients on the assessments and reviews that need to be done, and on the EP requirements that need to be met to comply with the EP. Projects within EP scope that support green, low-carbon and circular economy are given priority.  EP reviewers review whether the projects comply with the EP requirements. The Business Management Department is responsible for monitoring post-loan implementation and compliance.

As part of its overall Green Finance strategy, MYCCB created a Green Finance Office. The Green Finance Office is responsible for incorporating the Equator Principles into MYCCB´s policies and procedures. As part of the Green Finance Office, the Green Credit Unit is responsible for ensuring that projects that fall within the EP scope comply with the Equator Principles.


Front officers hold primary responsibility for the implementation of the EP. They identify transactions that fall within the scope of the EP, categorize the projects, review the Environmental and Social documentation (due diligence report where applicable or other documentation received from the client) and draft a Project Evaluation Report on the Application of the Equator Principles (including the content of E&S evaluation ) for all projects.

A detailed review by internal E&S experts is required for all projects categorized A or B. More than 10 experts with hands-on experience on E&S Impact Assessment, field surveys, and due diligence, are integrated in E&S advisory teams in the different branches of the bank. The internal E&S experts provide a second E&S review and engage in discussions over E&S impacts, mitigation, management measures with the client, the E&S independent expert or counterparts from other financial institutions where necessary. They may also visit the project site. As a result, it is compulsory that the internal E&S experts provide their opinion on the opportunity to pursue the deal or not. This applies to lending and financial advisory operations.

Middle Officers are responsible for controlling that legal documentation is in line with the decisions and for the monitoring of EP clauses.

Other internal experts in the Credit Management Department are responsible for monitoring post-loan implementation and compliance.


 According to the EP, the client is required to conduct an E&S assessment of the proposed project (category A and category B), propose measures demonstrating how adverse impacts and risks are mitigated and monitored, disclose information and consult with communities affected by the project, and establish a grievance mechanism, as appropriate. Clients are also explicitly expected to include assessments of climate transition and physical risks as well as potential adverse human rights impacts.

MYCCB encourages lenders to hire an independent E&S consultant and establish a grievance mechanism, that is involved to assess the project’s alignment with EP requirements and verify monitoring information for all category A and appropriate category B projects.

Also, with the assistance of independent relevant expertise, MYCCB makes its own evaluation of how the steps taken by the client fulfill the EP requirements, and integrates EP covenants in the documentation and reports annually on the processes and projects.

Preparation and Training

The Green Finance Office was responsible for applying for membership and liaising with the EP Association.

Since joining the EP Association in July 2020, the bank has organized two EP training sessions for 6000 staffs working in credit and business line. The first session introduced the EP and the second session covered the application process for projects in scope.

So far, MYCCB have provided nearly 600 million yuan of credit support for projects in EP scope. MYCCB continuously works to improve its internal procedures and communication to implement and comply with the EPs when financing projects in scope.