China's green finance sector is transitioning from rapid expansion to a phase focused on quality and efficiency. As a pioneer in this field, Industrial Bank Co.,Ltd. has consistently nurtured its green finance business over nineteen years, transforming it from a small initiative into a major strategic pillar. The bank's commitment is reflected in its substantial financing balance dedicated to green projects.
By the end of June 2025, Industrial Bank Co.,Ltd.'s total green finance financing balance reached 2.43 trillion yuan, an increase of 10.71% since the beginning of the year. Notably, its green loan balance exceeded one trillion yuan, serving 86,500 green finance clients. These financial figures translate into significant environmental benefits, including annual savings of 15.73 million tons of standard coal, reductions in carbon dioxide emissions by 27.45 million tons, and water savings of 18.39 million tons.
Guided by the philosophy that green finance should be a deeply rooted core business rather than a peripheral activity, Industrial Bank Co.,Ltd. has systematically developed its offerings. Starting with its first energy efficiency financing product in 2006, the bank has continuously evolved. By 2024, it had optimized a three-tier service system comprising diversified group products, specialized 'dual carbon' services, and targeted industry solutions, firmly establishing green development as a central theme.
The bank has been a leader in financial innovation. In November 2024, it issued the nation's first biodiversity protection green loan bundled with green insurance. This 8-million-yuan loan, using carbon sinks from the Guanyin Lake National Wetland Park in Suining, Sichuan as collateral, supports wetland greening projects. The wetland, with over 60% coverage, sequesters more than 500 tons of carbon annually, demonstrating a successful integration of ecological conservation and financial services.
Addressing new challenges like carbon tariffs, Industrial Bank Co.,Ltd. is exploring carbon footprint finance. In Shaoxing's Keqiao district, a major textile hub with nearly 8,000 enterprises accounting for a quarter of global textile trade, the bank leveraged carbon footprint data from local companies. It granted Zhejiang Dongjin New Material Co., Ltd. a pioneering 10-million-yuan carbon footprint innovation loan, offering preferential interest rates based on carbon reduction performance to help businesses navigate green trade barriers.
The bank's green financing solutions are precisely targeted across various sectors. Examples include a carbon普惠收益权质押 loan in Suzhou Industrial Park, a 'Forest Ticket 2.0' pledged loan to revitalize forestry resources in Sanming, Fujian, and a 365-million-yuan 'Climate Loan' to Wenzhou Hongqi Cable Group for disaster prevention. These initiatives ensure financial resources effectively support the real economy's green transition.
Industrial Bank Co.,Ltd. is also integrating green principles into emerging sectors, creating a 'Green+' development model. In 'Green+Technology,' it utilizes a technical evaluation system to provide CCUS carbon reduction loans in Inner Mongolia for steel slag recycling and supports high-tech firms in Ningxia. For 'Green+Park' initiatives, a photovoltaic station and energy-saving project in Fujian's Caimao City Industrial Park reduces CO2 emissions by 9,800 tons annually. The bank is also strengthening support for clean energy and new energy vehicles under 'Green+Energy' and 'Green+Automobile' frameworks.
This integrated approach extends globally, supporting Chinese new energy companies overseas. Industrial Bank Co.,Ltd.'s green finance services are facilitating projects like energy storage in Saudi Arabia, upstream nickel mining for lithium batteries in Indonesia, and wind farms in Argentina, providing a financial safeguard for the global expansion of Chinese green enterprises.
Sustainable green finance requires robust institutional frameworks. The bank has embedded ESG and climate risk management into its comprehensive risk management system. Since 2021, it has conducted regular climate risk stress tests and proactively disclosed results, integrating ESG factors throughout the credit process. Internally, it has enhanced incentive mechanisms, allocated more resources, and optimized talent development to support its green goals.
From the tea plantations in Anji to ecological reserve forests along the Yellow River in Lanzhou, and from waste battery recycling lines in Huzhou to wetland conservation in Suining, Industrial Bank Co.,Ltd.'s green finance practices are weaving a nationwide network that connects ecological protection with economic development. Looking ahead, the bank remains committed to advancing the 'Two Mountains' concept, supporting China's 'Dual Carbon' goals, and promoting high-quality green finance development in the comprehensive construction of a Beautiful China.
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