What is "Equatorial Bank"

Why is Industrial Bank called Equator Bank? More than a month ago, the board of directors of Industrial Bank passed the Proposal on Applying to Join the Equator Principles, authorizing the senior management to promote the work of joining the Equator Principles. As a result, Industrial Bank became the first Chinese bank that publicly stated that it would apply to join the "Equator Principle". Prior to this, the project loan for energy saving and emission reduction launched by Industrial Bank in cooperation with its strategic investor IFC (International Finance Corporation) has become the first landmark project of green finance practice in China banking industry. The proposal of the equator principle shows that Industrial Bank does not want to stop there, but intends to continue to expand the green financial territory. The "blue ocean" opportunity after financing of energy-saving and emission-reduction projects begins with financing of energy-saving and emission-reduction projects. With the increasingly clear goal of energy conservation and emission reduction in China, Industrial Bank is keenly aware that China has a huge market prospect in energy conservation and emission reduction. Since the second half of 2005, Industrial Bank has been in active contact with international finance companies, hoping to jointly explore the financial service market of energy saving and emission reduction in China. The two sides then decided on a "risk sharing mechanism" to implement the project. Specifically, Industrial Bank provides loans to enterprises with energy-saving and emission-reduction potential to help them carry out energy-saving and emission-reduction transformation. In case of loan loss, IFC will share the loan principal loss of Industrial Bank according to the agreed situation and compensation ratio. In the view of Zhu, general manager of the corporate business department of Industrial Bank, this move can be described as multi-faceted: it not only reduces the loan risk of banks and the financing threshold of enterprises, but also realizes energy conservation and emission reduction. The popularity of the product after listing far exceeded the expectations of both parties. The first-phase cooperation quota was 460 million yuan, which was used up in just 1 1 month. So, on February 25th this year, Industrial Bank and IFC signed the second cooperation agreement in North China, which not only expanded the loan amount, but also expanded the financing scope. Judging from the loan balance, the amount of loans for energy conservation and emission reduction in the first half of this year has more than tripled compared with last year. Judging from the loan quality, the current NPL ratio is zero. By the end of June this year, Industrial Bank had provided loans for energy-saving and emission-reduction projects in 14 provinces and municipalities directly under the Central Government, and supported 69 energy-saving and emission-reduction projects, with a total financing of 2,654.38+53 million yuan, which could save 2,364,700 tons of standard coal and 6,569,700 tons of indoor gases such as carbon dioxide in the country, equivalent to closing down 13 buildings. While boating in the "blue ocean", it is the improvement of the bank's risk management ability. Compared with traditional loan projects, the financing of energy-saving and emission-reduction projects pays more attention to indicators such as corporate cash flow and debt repayment coverage. "Financing for energy conservation and emission reduction has updated our risk management concept and enriched our risk assessment technology, which can also be applied to other credit fields, which is the core." Zhu Dui said: After two years of exploration, Industrial Bank has trained a well-trained team, formed a sustainable and scalable financing model for energy conservation and emission reduction, and initially established its unique competitive advantage in the field of green credit. They have also won recognition from all walks of life and even international organizations. Just two weeks ago, eight domestic NGOs jointly awarded Industrial Bank the "2007 China Green Bank Innovation Award". The action of Industrial Bank does not stop there. Zhu revealed that based on the rise of CERs trading in China, Industrial Bank is also considering expanding its carbon finance business and launching more innovative financial products according to national policies and market demand. "We want our customers to realize that reducing the emissions of carbon dioxide and other indoor gases is an asset in itself, and air can also be sold." Zhu Dui said: He revealed that Xingye will continue to consolidate its leading edge in this field and set a minimum target of "654.38 billion yuan in three years". At the same time, we will start with improving the team's professional ability and expand the market by industry and region to ensure the realization of this strategic goal. Opportunities and Challenges of "Equatorial Bank" However, today, Industrial Bank's vision is not limited to the financing of energy-saving and emission-reduction projects, they have targeted to become an equatorial bank. "Effectively implement the Scientific Outlook on Development, deepen the understanding of the relationship between bank social responsibility and its own sustainable development, actively explore ways to promote bank social responsibility, and build a good situation in which people live in harmony with nature, environment and society." This is the corporate governance concept put forward by Mr. Gao Jianping, the chairman of Industrial Bank. This has also become an important part of Industrial Bank's development strategy. The so-called equator principle is the lowest industry standard for the participation risk of international project financing environment formulated by major financial institutions in June 2003. Its applicable project amount exceeds100000 USD, involving 62 industries such as manufacturing, chemical industry, energy and infrastructure, covering not only environmental protection, but also social standards such as health, safety and cultural protection. Its blueprint is based on IFC's social and environmental sustainable development policies and performance standards, as well as industry-specific environmental, health and safety guidelines. At present, there are more than 60 banks adopting the equator principle in the world, but there is no breakthrough in China. In fact, several domestic banks have paid attention to and studied the equator principle for a long time. However, as an international standard, the Equator Principle is more specific and stricter than the current green credit guidelines in China, so all parties are more cautious. "The business philosophy of Industrial Bank is consistent with the purpose of the Equator Principle. The adoption of the equator principle is a strategic decision made by the board of directors of Industrial Bank for the sustainable development of the whole bank, and it is the integration and improvement of the sustainable financial system of Industrial Bank. " Hua Bing, general manager of the Legal Compliance Department of Industrial Bank, said. For Industrial Bank, joining the Equator Principle will mean both opportunities and challenges: on the one hand, joining the Equator Principle will help to enhance its social image, win international financing projects, help customers and themselves improve their level of avoiding and managing environmental and social risks, and optimize the credit structure; On the other hand, it is also possible to face the reputation risk of customer loss, profit decline, external pressure and even poor implementation in the short term. Hua Bing revealed that his trip to Brazil and IFC in May strengthened the significance of this work. In Brazil, he saw that Itau Dabeiya Bank, the largest wholesale bank in Brazil, had consciously extended the equator principle to all credit projects. In the International Finance Corporation, there are many experts and personnel who are committed to promoting the equator principle in order to gain a wider understanding and compliance. "The attitudes and practices of these financial institutions make us realize that green credit is the general trend of building a resource-saving and environment-friendly society in China. It is not only good for the environment and society, but also brings economic benefits. " However, once the equator principle is implemented, it will be a revolution for banks. It will completely innovate the credit concept of bank project financing, and involve the reorganization of relevant institutional systems and credit processes. Perhaps based on this, the equator principle gives a one-year transition period to join the bank. To this end, Industrial Bank has formulated a work plan for the coming year. At the same time, according to the decision of the management, an inter-departmental joint working group composed of the Risk Management Department, the Credit Approval Department, the Legal Compliance Department and the Office of the Board of Directors has started to operate. It is reported that Societe Generale has begun to actively communicate with some non-governmental organizations, which are mainly responsible for monitoring the observance and implementation of the Equator Principles by Equator Bank abroad. In the next step, Societe Generale will also discuss with some big customers to explore the prospect of green finance. For Industrial Bank, a new journey has begun.

Satisfied, please adopt.