Recently, Industrial Bank Co.,Ltd. has successfully executed a biodiversity loan that adopts the methodology of the Taskforce on Nature-related Financial Disclosures (TNFD). The bank provided a special loan of 200 million yuan to Zhejiang Shenghua Yunfeng New Material Co., Ltd. In accordance with the People's Bank of China's biodiversity finance standards, the loan proceeds are designated exclusively for sustainable forestry management and development. This initiative aims to reduce forest degradation, protect biodiversity, and support the sustainable utilization of biological and natural resources.
It is reported that TNFD is an international initiative jointly launched by the United Nations Development Programme (UNDP), the United Nations Environment Programme Finance Initiative (UNEP FI), and the World Wide Fund for Nature (WWF). Its published disclosure framework provides crucial guidance for companies and financial institutions to identify, assess, and manage nature-related risks. This framework has been adopted and applied by businesses and financial institutions in over 50 countries and regions worldwide.
This specific loan incorporates the recommendations of the TNFD framework. With the support of the GF60 Sustainable Investment and Finance Center, it systematically identifies and assesses the dependence and impact of the company's financing project on the local ecological environment and biodiversity using the LEAP methodology. Concurrently, a product carbon footprint calculation mechanism is embedded into the process. This use of financial instruments empowers the company to achieve its biodiversity conservation and zero-carbon development goals, while also providing a replicable and scalable practical example for the pilot implementation of biodiversity finance standards in Zhejiang.
"This innovative practice of designing a loan instrument using the TNFD guidelines is a vivid example of China's active promotion of green credit and adoption of international frameworks like TNFD. It can not only deliver better risk-adjusted outcomes for China's natural environment, enterprises, and financial industry but will also inspire nature-related financial innovation practices globally that align with the goals of the Kunming-Montreal Global Biodiversity Framework," the TNFD official expressed high recognition for the execution of this transaction.
Promoting financial practices for biodiversity conservation has become a key direction for the financial industry to implement ESG principles and support the green, low-carbon transformation of the economy and society. In 2025, the People's Bank of China organized pilot work on biodiversity finance standards, providing policy guidance and practical pathways for financial institutions to support biodiversity conservation and sustainable use. As a domestic pioneer in green finance, Industrial Bank Co.,Ltd. continues to increase its support for biodiversity protection. The bank has formulated and launched a biodiversity protection plan, signed the "Joint Declaration of Banking Financial Institutions in Support of Biodiversity Conservation," and innovated with green financial products in various locations such as Ailao Mountain in Yunnan, Sanbai Mountain in Jiangxi, and Nanping in Fujian. It has successfully executed multiple biodiversity conservation loans, further exploring effective pathways for integrating biodiversity protection with green finance and contributing its strength to building a beautiful China.
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