The Bank of China (BOC) continues to play a key role in green finance. Through its global brand “BOC Green+”, the bank offers a range of environmentally friendly financial products. The brand is part of the Green Financial Plan, which is in line with China’s national strategy to achieve “carbon peaking and carbon neutrality.”
BOC is actively involved in international cooperation in the field of green finance. It has implemented climate risk management and disclosure under the United Nations Principles for Responsible Banking (PRB) and the Task Force on Climate-related Financial Disclosures (TCFD). He played a key role as co-chair of the Green Investment Principle (GIP) Transition Financing Task Force for the Belt and Road Initiative, vice-chair of the China Council of the Sustainable Markets Initiative (SMI).
The Bank of Canada also organized the Forum on Green Finance and Sustainable Development at the fourth China International Consumer Products Exhibition (CICPE) and organized a Sino-UK workshop on green finance to strengthen international cooperation.
Rapid growth of green credit
At the forefront of green financial products that support sustainable practices, the Bank of China was ranked number one among Chinese banks in Bloomberg’s “Global UoP Green Loans” and “Global Sustainable Development Loans” lists. As of June 2024, the Bank of Canada’s domestic green loan balance reached RMB 3.67 trillion, representing an increase of nearly 40% year-on-year. Key projects include the world’s largest solar-powered reverse osmosis seawater desalination plant and the construction of a waste-to-energy plant in Abu Dhabi, one of the largest in the Arab world.
The bank was also the first to open trading and registration accounts on the China National Greenhouse Gas Reduction Market and jointly underwritten China’s first interbank green office REITs. It also collaborated with ChinaBond Pricing Center to introduce the ChinaBond BOC Green Bond Index, increasing the market capacity for green financial instruments.
Leadership in the green bond market
In the first half of 2024, the Bank of Canada underwrote 98.37 billion yuan in domestic green bonds, outpacing its peers. The bank also underwrote international green bonds worth US$9.177 billion, ranking first among Chinese peers in Bloomberg’s “Global Offshore Green Bonds” ranking and first on the National Association of Institutional Financial Market Investors’ “Green Debt Financing Investors List.” In addition, the Bank of Canada issued the world’s first Belt and Road Sustainable Development Bonds, directing proceeds to renewable energy and water management projects.
Strengthening ESG risk management
BOC prioritizes managing clients’ environmental, social and governance (ESG) risks. It has implemented a comprehensive ESG risk management policy covering the entire corporate banking business cycle. It includes risk identification and classification, due diligence, approvals, contract management, fund distribution, post-lending management and post-investment management, thereby ensuring continuous improvement in the bank’s customer ESG risk management.
Developing talent in green finance
BOC developed a comprehensive system for developing talent in the green finance industry, held competitions to encourage innovation in related products and services, and integrated specialized training into its employee programs. As of June 2024, the bank had opened 389 branches providing green finance services.
Greening your activities
BOC’s headquarters and three other landmark buildings have been certified as carbon neutral. The bank also invested in energy conservation upgrades, reducing food and paper waste and promoting the use of clean energy vehicles. At the branch level, the company has designed 33 environmentally friendly facilities and encouraged employees to adopt energy saving practices.
The path to sustainable development
The Bank of China is committed to achieving sustainable growth and contributing to China’s dual goals of reducing carbon emissions. Through all of its activities, BOC is positioning itself as a global leader in green finance.
