In recent years, global capital markets have been placing an increasing emphasis on the efforts and contributions made by listed entities in promoting global sustainable development. Not only are their measures in focusing on climate change mitigation and environmental improvement drawing more and more attention, their performance in safeguarding the rights and interests of customers, shareholders, employees, society and other stakeholders are also gaining importance. The focus of all parties involved, especially institutional investors, is gradually shifting from short-term financial performance to long-term value creation.
With the resultant acceleration in the growth of the Green Financial Market, financial institutions must actively respond to the sustainable development initiatives, participate in the formulation of international standards for green finance and infrastructure construction and promote Green Investment Principles so as to boost the development of global green finance through innovation and development and directly contribute to social progress and common prosperity.
As one of the largest banks in the world, China Construction Bank Corporation (CCB) has actively explored new concepts in the development of the global green financing industry.
In a bid to become a low-carbon, environmentally friendly, sustainable bank that serves the public and improves people’s livelihood globally, CCB has been utilising a combination of financial instruments including green credit, green bonds, green leases and green trusts to continuously increase financial support in areas such as energy conservation and emission reduction, clean energy, clean transportation and pollution prevention and control, to pro-actively support and foster green industries globally.
In 2021 CCB increased the insurance, underwriting and investment of green bonds. The Bank issued multi-currency ESG-themed bonds, including the world’s first sustainability-linked bond in USD for financial institutions, the first demonstration green bond based on the Common Ground Taxonomy – Climate Change Mitigation released by China and the EU, and the first transition bond for the Bank
The Bank underwrote the market’s first batch of carbon neutrality bonds, sustainability-linked bonds, the first green Quasi REITs in the interbank market and the green bond dubbed the “Lotus Bond”. By the end of 2021, in comparison to 2020, the green bonds balance in RMB portfolios had increased by 342.57% and foreign currency portfolios had increased by 140.09%. compared to 2020. In addition, the Bank issued the “CCB Wind Green ESG Bond Issuance Index and Yield Curve”, the first issuance index in the Chinese green bond primary market that integrates the concept of ESG and carbon neutrality. CCB received the “2021 Best Chinese Offshore Banks Quasi-Sov Best Sustainability-linked Bond/Green Bond/Transition Bond Award” by The Asset – Hong Kong.
As at the end of 2021, the balance of green loans granted by CCB amounted to an approx. equivalent of USD 285 billion, which represented growth of 35.61% over 2020.
Our Bank is currently ascribed an Environmental, Social, and Governance rating of “A” by Morgan Stanley Capital International.
In line with our Group’s global initiative in promoting net-zero emissions, CCB Australia has placed an emphasis on low-carbon operations and a priority on the receipt of green energy. As a direct result of the introduction of a set of specific emission reduction and carbon-offset programs in the day-to-day operations in each of our Australian offices, CCB Australia was certified Carbon Neutral by the Federal Government Agency Climate Active in the calendar year 2020. We are proud to say that we were the first Chinese organisation in Australia to receive this certification and the first entity within the CCB Group globally to receive such recognition outside of our home market in China.
At the same time, in terms of our green themed business activities in Australia, since the establishment of our branch and initial office in Sydney, we have financed and supported our Chinese clients’ investments in the renewable energy sector in Australia. Over time and with the subsequent establishment of our offices in Melbourne, Brisbane and Perth our servicing and lending activities in this sector have been extended to include several Australian and other international project sponsors.
Following the introduction of the Green Loan Principles in 2018, CCB Australia was a lender in the world’s first ever Green Loan, and in 2019 CCB Australia participated in the first sustainability-linked loan undertaken by an energy corporate in the Asia Pacific region.
Over the past 13 years of operating in Australia, CCB has developed and supported a diversified portfolio of clients in the renewable energy sector and in the provision of green and sustainability linked loans, currently supporting in excess of AUD1 billion in committed credit facilities.
CCB Australia is committed to continue its support of green energy and net-zero initiatives and programs. Our Team in Perth, supported by green financing specialists across the globe, stands ready to combine our efforts with those of Western Australian businesses in ensuring a green and sustainable future, not only for our great State, but for the world.
