INDUSTRIAL BANK CO., LTD

Adoption Date: 31 October 2008
Country of Headquarters: China
Region of Headquarters: Asia
Institutional Reporting Hyperlink: http://download.cib.com.cn/netbank/download/cn/
Sustainable_Finance/report_2015en.pdf
Current EPFI Reporting Year/Period: 2015
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

Totals
2
1
0
Sector
Category A
Category B
Category C
Mining


Infrastructure 2 1
Oil & Gas


Power


Others


Region
Category A
Category B
Category C
Americas


Europe, Middle East & Africa


Asia Pacific 2 1
Country Designation
Category A
Category B
Category C
Designated1


Non-Designated 2 1
Independent Review
Category A
Category B
Category C
Yes 2 1
No


Totals
2
1
0

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: http://www.equator-principles.com/index.php/ep3/designated-countries


PROJECT NAME REPORTING FOR PROJECT FINANCE TRANSACTIONS

No. Project Name
Sector
Host Country Name/ Project Location Year of Financial Close
1 Highway Project from Jiangjin in Chongqing to Xishui in Guizhou Infrastructure China 2015


2 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: 9

Totals
4
5
0
Sector
Category A
Category B
Category C
Mining 1

Infrastructure
2
Oil & Gas 1

Power
1
Others 2 2
Region
Category A
Category B
Category C
Americas


Europe, Middle East & Africa


Asia Pacific 4 5
Country Designation
Category A
Category B
Category C
Designated1


Non-Designated 4 5
Independent Review
Category A
Category B
Category C
Yes 4 5
No


Totals
4
5
0

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: http://www.equator-principles.com/index.php/ep3/designated-countries


IMPLEMENTATION OF THE EQUATOR PRINCIPLES

For more detail, please see the hyperlink to our bank's public reporting - http://download.cib.com.cn/netbank/download/cn/Sustainable_Finance/report_2015en.pdf

Execution of the Equator Principles

Scientific enhancement of internal management performance

In 2015, on the basis of the further implementation of the Equator Principles III, the Bank further optimized the internal management system, hired an external authoritative agency to randomly check and evaluate project suited to the Equator Principles and implemented onsite inspection to find potential defects in internal management, constantly strengthened management concepts, improved management processes and promoted the full and correct implementation of the Equator Principles.

As of December 31, 2015, a total of 33 branches had established environmental finance centers (other branches had also set up environmental finance managers) for a bank-wide green finance team consisting of nearly 200 personnel, and such centers are equipped with dedicated risk management personnel to product support for Equator Principles projects within respective jurisdiction, identification of applicability of the Equator Principles and risk classification and review of projects’ environmental and social risks.

Implement major maintenance and alteration of the review system to enhance project review efficiency

In 2015, in accordance with the actual needs of review of Equator Principles projects, the Bank implemented maintenance of the Equator Principles project review system to make 15 major system alterations including streamlining of pre-review process, attachment uploading expansion, decision support system statistics arithmetic logic repair and strengthen inter-system data sharing and effective access. Thus, the Equator Principles project identification process and time can be shortened by half in comparison with the past with improved system efficiency and accuracy.

Innovative training methods to promote professional capacity-building

The Bank held throughout the year a total of 59 Equator Principles trainings for a total of 3,197 trainees and a total training time of some 5,000 minutes.

In 2015, at the headquarters level, the Bank implemented concentrated training on basic contents, application scope, review requirements and process and institutional system of Equator Principles through special meetings like thematic promotion meeting and credit business review meeting for a total 138 personnel including persons-in-charge and business cadres of branches’ environmental finance centers and branches’ environmental finance credit review personnel, and discussed and answered problems encountered in the Equator Principles review to promote further enhancement of professional ability of environmental finance-related personnel of branches.

Case: Fuzhou Branch always implements the Equator Principles training by alternating theoretical explanation and guidance of actual cases one by one. In the first half of 2015, branches implemented systematic training on the Equator Principles III for all customers managers of operating departments of branches and provided one-on-one guidance on the pre-review of 6 Equator Principles projects of 5 operating institutions including Changle Branch, Hualin Business Department and Yangqiao Business Department, effectively enhancing professional ability of project persons-in-charge and project information reporting quality.

Systematic improvement of depth and influence of customer communication program

Case: empathy for understanding

For customers’ doubts in the initial contact with the Equator Principles, Shenzhen Branch designed from multiple angles a full-period, targeted and macro-to-micro communication program:

What are the Equator Principles? Shenzhen Branch instills into customers the concepts, contents and international influence analysis of the Equator Principles to help enterprises fully understand the Equator Principles and clear customers’ doubts face to face.

Are the Equator Principles loan conditions imposed by the Bank on customers? Through professional explanation, Shenzhen Branch elaborates what environmental and social risks the Equator Principles can help enterprises to manage and prevent, how much they can enhance enterprise reputation and what advantages they can bring about to the outward development of enterprises in the future, enabling enterprises to realize that the Equator Principles are an advantageous tool provided by Equator Banks as additional value for enterprises to independently manage environmental and social risks and enhance own social and commercial reputation.

Are there any successful cases of the Equator Principles in China? By sharing typical cases of the Bank adopting the Equator Principles in recent 8 years and introducing classic cases of overseas banks adopting the Equator Principles, Shenzhen Branch paints a clear picture for enterprises at the operational level.

Meanwhile, through the “Unibank Media Player”, Shenzhen Branch plays in a loop promotional video on Equator Banks and Equator Principles in its outlets and other places on a daily basis and has paid a number of visits to government departments like Development and Reform Commission and Human Settlements and Environment Commission as well as leading enterprises in the environmental finance field to make onsite presentation on the Bank’s environmental finance business and contents of the Equator Principles.

Actively promote the frequency and breadth of international exchange of experience

In April 2015, Industrial Bank exchanged practical and business experience on the Equator Principles with the visiting Taiwan Cathay United Bank as Taiwan’s first and China’s second Equator Bank to introduce the Bank’s Equator Principles management system, institutional arrangements and project review and explored future direction of cooperation to promote cross-strait business exchanges and development of sustainable banking financial services.

Meanwhile, the Bank continued to actively participate in various seminars on detailed rules for the implementation of the Equator Principles, the Equator Principles association management architecture reform and establishment of the Equator Principles training system, and absorb good experience from internationally advanced EPFIs to improve internal policies and management, and participated in the Equator Principles annual meeting, “China Pavilion” activities in the Paris Climate Change Conference and Asia Pacific EPFIs seminars to give feedback from Chinese banking industry.

At the invitation of Banking Regulatory Bureau of Anhui Province, Banking Bureau of Qinghai Province and Financial Office of Qinghai Province, in 2015, the Bank actively participated in green finance training and introduced to regulatory authorities and other banks the Equator Principles and the Bank’s environmental and social risk management system.

Equator Principles Project Data

In 2015, the Bank implemented judgment of applicability of the Equator Principles for 45 projects and identified 41 projects where the Equator Principles were applicable, which involves a total investment of RMB 138 billion.

12 projects where the Equator Principles were applicable reached financial close in the reporting period (signing of financing contracts), including 3 Project Finance and 9 Project-Related Corporate Loans, and another 12 project loans were released, including 2 Project Finance and 7 Project-Related Corporate Loans for a total amount of RMB 7.378 billion.

As of December 31, 2015, the Bank had implemented judgment of applicability of the Equator Principles for 899 projects, involving a total investment of RMB 2,261.421 billion.

There were a total of 258 projects where the Equator Principles are applicable, involving a total investment of RMB 564.5 billion, 223 customers and a cumulative release amount of RMB 24.064 billion.

Project Finance

In 2015, the Bank had 3 Project Finance in effect and the projects were all in China (i.e. non-designated country), which are mainly in road management and maintenance and road construction industries; for all effective Equator Principles projects, an independent third-party environment and social counseling agency was hired to assist in the due diligence investigation and evaluation of project compliance with the Equator Principles.

2015 classification of Equator Principles projects for financing: 2 in category A, 1 in category B and 0 in category C.

Project-Related Corporate Loans

As of the end of 2015, the Bank had 9 Project-Related Corporate Loans that were all in China (i.e. non-designated country), and an independent third-party environment and social counseling agency was hired to assist in the due diligence investigation and evaluation of project compliance with the Equator Principles.

2015 classification of Project-Related Corporate Loans: 4 in category A, 5 in category B and 0 in category C.