The Bank of China (BOC) continues to play a pivotal role in green finance. Through its global brand “BOC Green+”, the bank offers a range of green financial products. The brand is part of its green financial plan, which aligns with China’s national strategy to achieve “carbon peaking and carbon neutrality.”
The Bank of China actively participates in international cooperation in green finance. Climate risk management and disclosure has been implemented within the framework of the UN Principles for Responsible Banking (PRB) and the Task Force on Climate-related Financial Disclosure (TCFD). She has played pivotal roles, serving as co-chair of the Green Investment Principle (GIP) Transition Finance Task Force for the Belt and Road Initiative, and vice-chair of the China Council of the Sustainable Markets Initiative (SMI).
The Bank of China also organized the Green Finance and Sustainable Development Forum at the 4th China International Consumer Products Expo (CICPE), and organized the China-UK Green Finance Symposium to promote international cooperation.
Rapid growth in green credit
At the forefront of green financial products that support sustainable practices, Bank of China ranked first among Chinese banks on Bloomberg’s “Global Green UoP Loans” and “Sustainability-Linked Global Loans” lists. As of June 2024, the Bank of China’s domestic green credit balance had reached CNY 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 facility, and the construction of a waste-to-energy facility in Abu Dhabi, one of the largest in the Arab world.
The bank was also the first to open trading accounts and register on China’s National Greenhouse Gas Emission Reduction Market, and participated in the underwriting of China’s first interbank green office construction real estate investment trusts. It also cooperated with the China Bond Bond Pricing Center to launch the China Bond Bank of China Green Bond Index, enhancing the market’s capacity for green financial instruments.
Leadership in the green bond market
In the first half of 2024, the Bank of China subscribed CNY98.37 billion worth of domestic green bonds, exceeding its peers. The bank also underwrote US$9.177 billion worth of international green bonds, leading among its Chinese peers in Bloomberg’s “Global Offshore Green Bonds” rankings and No. 1 on the National Association of Financial Markets’ “Investors in Green Debt Instruments List.” In addition, the Bank of China issued the world’s first “Belt and Road” sustainable development bonds, directing proceeds to renewable energy and water management projects.
Enhancing environmental, social and governance risk management
BOC has prioritized managing environmental, social and governance (ESG) risks for clients. It has implemented a comprehensive ESG risk management policy that governs the entire business cycle of corporate banking. It includes risk identification and profiling, due diligence, approval, contract management, fund distribution, post-lending and post-investment management, thus driving continuous improvements in ESG risk management for clients in the bank.
Building green finance talent
BOC has developed a comprehensive talent development system in green finance, holds competitions to encourage innovation in related products and services, and integrated specialized training into its employee programs. As of June 2024, the bank has established 389 sub-branches featuring green financing services.
Greening its operations
BOC’s head office and three other landmark buildings have received ‘carbon neutral’ certifications. The bank has also invested in energy saving improvements, reducing food and paper waste, and encouraging the use of clean energy vehicles. At the sub-branch level, he designed 33 environmentally friendly sites and encouraged employees to adopt energy-saving practices.
The path to sustainable development
The Bank of China is committed to driving sustainable growth and contributing to achieving China’s dual carbon targets. By leveraging its entire operations, Bank of China has positioned itself as a global leader in green finance.
