Reporting – Industrial Bank CO., LTD (2018)

Adoption Date:31 October 2008
Country of Headquarters:China
Region of Headquarters:Asia
Institutional Reporting Hyperlink:https://download.cib.com.cn/netbank/download/cn/Sustainable_Finance/report_2018en.pdf
Current EPFI Reporting Year/Period:2018
EPFI Reporting in Compliance:Yes

Please read the important notes and disclaimer for further information on ‘EPFI Reporting’, compliance and publication on the Equator Principles Association website.

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

PROJECT FINANCE ADVISORY SERVICES

Total number mandated in the reporting period: 0

PROJECT FINANCE TRANSACTIONS

Total number that reached financial close in the reporting period: 3

Totals030
Totals030
SectorCategory ACategory BCategory C
Mining
Infrastructure2
Oil & Gas
Power
Others1
RegionCategory ACategory BCategory C
Americas
Europe, Middle East & Africa
Asia Pacific3
Country DesignationCategory ACategory BCategory C
Designated1
Non-Designated3
Independent ReviewCategory ACategory BCategory C
Yes3
No

1Designated Countries are those countries deemed to have robust environmental and social governance, legislation systems and institutional capacity designed to protect their people and the natural environment. For the list of Designated Countries, go to: https://www.equator-principles.com/index.php/ep3/designated-countries

PROJECT NAME REPORTING FOR PROJECT FINANCE TRANSACTIONS

3 projects were not disclosed as per the disclosure conditions specified in Annex B of the Equator Principles

PROJECT-RELATED CORPORATE LOANS

Total number that reached financial close in the reporting period: 3

Totals210
SectorCategory ACategory BCategory C
Mining1
Infrastructure1
Oil & Gas
Power
Others1
RegionCategory ACategory BCategory C
Americas
Europe, Middle East & Africa
Asia Pacific21
Country DesignationCategory ACategory BCategory C
Designated1
Non-Designated21
Independent ReviewCategory ACategory BCategory C
Yes21
No
Totals210

1Designated Countries are those countries deemed to have robust environmental and social governance, legislation systems and institutional capacity designed to protect their people and the natural environment. For the list of Designated Countries, go to: https://www.equator-principles.com/index.php/ep3/designated-countries

IMPLEMENTATION OF THE EQUATOR PRINCIPLES

Continuously standardize the whole procedure management of Equator Principles projects

In 2018, the Bank has continuously standardized the whole procedure management of Equator Principles projects, organized the Bank to conduct comprehensive self-inspections and inspections on the implementation of Equator Principles projects, conducted comprehensive re-inspections on the compliance of environmental and social risk management procedure of Equator Principles projects, issued Proposal for Compliance, and urged the branches to strengthen rectification, so as to effectively improve the management and implementation effect of Equator Principles projects.

Streamline and review policies, standards and business procedure of environmental and social risk management system

By comprehensively benchmarking against Guidelines for Green Credit and other external regulatory rules, and summarizing the key points of compliance risk and key processes of procedure, the Bank has further strengthened the management of Equator Principles projects, promoted the delicacy management of environmental and social risks in the review and access, duration management and other processes of the credit business, and escorted the compliant innovation of the green financial business.

Continuously promote equator principles through multiple channels

In 2018, the Bank has continuously publicized Equator Principles and environmental and social risk management through WeChat official account, video training, operation instruction manual, questionnaires and other forms. A total of 37 Equator Principles training sessions were held by the Bank throughout the year, with a total of 6366 participants and a training duration of nearly 4000 minutes. Specifically, a total of 335 employees of the institutions at all levels of the Bank has participated in the video training on Equator Principles, and a total of 2571 employees have participated in the on-line training on the topic of Bank Environment and Social Risk Management under the Background of Environmental Protection and Strict Supervision in the series compliance lectures of IB Voyage.

At the same time, Tenth Anniversary of Adopting Equator Principles WeChat Q&A activities has been carried out through IB’s WeChat official account, attracting the attention and participation of all stakeholders, and strongly promoting the spread of the concept of sustainable life. In addition, through producing Operation Instruction Manual for Equator Principles Projects, with manners including flow charts, key analysis and case analysis, we have concisely and intuitively prompted the key compliance points of each process of Equator Principles project management, grasped the management requirements of Equator Principles more deeply and accurately, and enhanced the quality and efficiency of the system’s implementation.

Data of IB’s Equator Principles projects

In 2018, the Bank has conducted assessment on the applicability of Equator Principles for a total of 42 projects (including the application of Equator Principles to an extended environmental and social risk assessment for a project beyond the scope), involving a total investment of approximately RMB177.5 billion, 40 customers and 24 national standard industries, covering 21 branches of the bank. Among them, six projects applying Equator Principles have reached the stage of formally financial close (financing contracts were signed), including three transactions of project financing, three corporate loans associated with the projects. Six project loans have been off the shelf, including three transactions of project financing and three corporate loans associated with the projects.

As of December 31, 2018, the Bank has carried out the judgment on the applicability of Equator Principles on a total of 1059 projects. Of these, 386 projects with the application of Equator Principles have involved a total investment of RMB1,616.5 billion and 349 customers.

Project financing

In 2018, the Bank has had three transactions of project financing reached financial close, all of which belong to Category B and are located in China (i.e., non-designated country). They have been mainly distributed in such industries as treatment of solid waste, manufacture of organic chemical raw materials and railway passenger transportation. An independent third-party environmental and social consulting agency has been engaged to assist in due diligence and evaluate the conformity of the project with Equator Principles.

Corporate loans associated with the projects

In 2018, the Bank has had three corporate loans related to the projects reaching financial close, including two of Category A and one of Category B, all of which are located in China (i.e., non-designated country). For all the projects, an independent third-party environmental and social consulting agency has been engaged to assist in due diligence and evaluate the conformity of the project with Equator Principles.

https://www.cib.com.cn/en/aboutCIB/social/report/index.html

https://download.cib.com.cn/netbank/download/cn/Sustainable_Finance/report_2018en.pdf