SBFN Member Since:
2013
Member Organisations
China Banking and Insurance Regulatory Commission
Superintendence of Banks and Financial Institutions of Chile (SBIF)
China Banking Association
Progress Against sub Pillars
Framework Documents
| 2022 | China Banking and Insurance Regulatory Commission (CBIRC) | |
| 2021 | People’s Bank of China | |
Guidance on Promoting Investment and Financing to Address Climate Change | 2020 | People’s Bank of China |
| 2019 | Ministry of Ecology and Environment of the People’s Republic of China | |
| 2018 | People’s Bank of China | |
| 2018 | Asset Management Association of China | |
| 2018 | People’s Bank of China | |
Compulsory Environmental Pollution Liability Insurance Regulation | 2018 | Ministry of Ecology and Environment of the People’s Republic of China |
| 2017 | National Association of Financial Market Institutional Investors | |
| 2017 | International Institute of Green Finance | |
| 2017 | China Securities Regulatory Commission | |
Impact of Environmental Factors on Credit Risk of Commercial Banks | 2016 | Industrial and Commercial Bank of China |
| 2016 | People’s Bank of China | |
| 2016 | China Securities Regulatory Commission (CSRC) | |
| 2016 | China Securities Regulatory Commission (CSRC) | |
| 2014 | China Banking and Insurance Regulatory Commission (CBIRC) | |
| 2013 | China Banking and Insurance Regulatory Commission (CBIRC) | |
| 2012 | China Banking and Insurance Regulatory Commission (CBIRC) | |
| 2007 | China Banking and Insurance Regulatory Commission (CBIRC) | |
| 2020 | National Development Reform Commission (NDRC), People’s Bank of China (PBoC), China Securities Regulatory Commission (CSRC) | |
Guidelines on Environmental Information Disclosure for Financial Institutions | 2021 | People’s Bank of China |
Pillar 1 - ESG Integration - Strategic Alignment
National Framework
P 1.1 – Has the regulator or industry association published a national framework (“Framework”) for the banking sector that sets out expectations for integrating the consideration of environmental, social, and governance (ESG) risks and performance?
Yes
Source Reference Detail
In January 2012, the former CBRC issued the “Green Credit Guideline”.
Source Reference Document
Green Credit Guidelines (CBIRC, 2012)
Source Reference Description
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P 1.2 – Has the relevant regulator or industry association published a Framework for capital markets, investment, insurance or other non-lending FIs that sets out expectations for integrating the consideration of environmental, social, and governance (ESG) risks and performance?
Yes
Source Reference Detail
In 2017,China Securities Regulatory Commission issued “Guiding Opinions on Supporting the Development of Green Bonds”.
Source Reference Document
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Source Reference Description
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Pillar 1 - ESG Integration - Strategic Alignment
Alignment with International Goals & Standards
P 1.3 – Does the Framework make reference to international sustainable development frameworks or goals?
Yes
Source Reference Detail
In June 2014, the former CBRC issued the “Key Evaluation Indicators for the Implementation of Green Credit”. Article 4.21.3 refers to related content.
Source Reference Document
Green Credit KPI (CBIRC, 2014)
Source Reference Description
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P 1.4 – Does the Framework make reference to established international ESG risk management standards and principles for FIs??
Yes
Source Reference Detail
In January 2012, the former CBRC issued the “Green Credit Guideline”.
Source Reference Document
Green Credit KPI (CBIRC, 2014)
Source Reference Description
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Pillar 1 - ESG Integration - Strategic Alignment
Alignment with national goals & strategies
P 1.5 – Does the Framework make reference to specific national development objectives, plans, policies, goals, or targets?
Yes
Source Reference Detail
“The State Council’s Comprehensive Work Plan for Energy Conservation and Emission Reduction during the Twelfth Five-Year Plan”
Source Reference Document
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Source Reference Description
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P 1.6 – Does any cooperation exist between agencies or between the regulator and industry association with respect to policy design and/or implementation related to ESG integration?
Yes
Source Reference Detail
In June 2014, the former CBRC issued the “Key Performance Indicators for the Implementation of Green Credit”, and then instructed China Banking Association to establish a professional committee for green credit business; in November 2017, China Banking Association issued the “China Banking Industry Green Bank Evaluation Implementation Plan (Trial)”
Source Reference Document
Green Credit KPI (CBIRC, 2014)
Source Reference Description
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P 1.7 – Does any inter-agency data sharing currently exist related to ESG integration by FIs?
Yes
Source Reference Detail
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Source Reference Document
CBIRC regularly posts corporate environmental and risk information on the “Data Collection Platform” of the Statistics Information Department of the CBIRC, with a frequency of once every six months.Banking institutions can view the list of companies that violate production safety, laws and regulations, and have environmental risks through this platform. CBIRC will also feed back the loan status of companies that violate production safety, laws and regulations to the emergency management department.
Source Reference Description
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Pillar 1 - ESG Integration - Regulatory and Industry Association Actions
Overall Approach & Strategy
P 1.8 – Does the Framework provide guidance on the role of the regulator or industry association with regard to assessing and managing ESG risk and performance in the financial sector?
Yes
Source Reference Detail
Article 5 of”Green Credit Guidelines” states that former CBRC is responsible for the supervision and management of the green credit business and environmental and social risk management of banking financial institutions in accordance with the law.
Source Reference Document
Green Credit Guidelines (CBIRC, 2012)
Source Reference Description
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P 1.9 – Has the regulator or industry association undertaken market assessment to identify systemic ESG risks through analysis of the portfolios of supervised entities/members and published the results?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
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Pillar 1 - ESG Integration - Regulatory and Industry Association Actions
Technical Guidance
P 1.10 – Does the Framework provide technical guidance or tools to support implementation of ESG risk and performance management by the financial sector?
Yes
Source Reference Detail
In 2012, the former CBRC issued the “Green Credit Guideline”,then issued the “Statistical System for Green Credit” in 2013. In 2014, the former CBRC issued the “Key Performance Indicators of Green Credit”.
Source Reference Document
Green Credit Guidelines (CBIRC, 2012) | Green Credit KPI (CBIRC, 2014)
Source Reference Description
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Pillar 1 - ESG Integration - Regulatory and Industry Association Actions
Supervisory Activities & incentives
P 1.11 – Is the implementation of the Framework regularly monitored and/or information regularly collected from FIs by the regulator and/or industry association?
Yes
Source Reference Detail
In 2013, the former CBRC issued the “Statistical System for Green Credit” to collect data on green credit on a regular basis. In 2020, CBIRC issued the “Notice on Work Related to the Statistical System for Green Financing”, establishing a statistical system for green financing.
Source Reference Document
Green Credit Statistics Reporting (CBIRC, 2013)
Source Reference Description
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P 1.12 – Does the regulator or industry association provide any financial or non-financial incentives for FIs to manage ESG performance as part of the Framework?
No
Source Reference Detail
–
Source Reference Document
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Source Reference Description
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P 1.13 – Does the regulator or industry association apply any disincentives/penalties for non-compliance by FIs in terms of expectations from the regulator and/or industry association related to ESG risk management as part of the Framework?
Yes
Source Reference Detail
In 2018, the People’s Bank of China issued the “Green Credit Performance Evaluation Plan for Depository Financial Institutions in the Banking Industry”, in which “3. Evaluation Results and Application (11)” involves related content.
Source Reference Document
Notice of Green Finance Performance Evaluation Program (PBOC, 2018)
Source Reference Description
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Pillar 1 - ESG Integration - Regulatory and Industry Association Actions
Tracking & Aggregated Disclosure
P 1.14 – Has the regulator or industry association established a data collection approach and database to track or regularly publish data related to ESG integration by FIs as part of the Framework?
Yes
Source Reference Detail
In 2014, the former CBRC issued the “Key Performance Indicators of Green Credit”. Chapter 2 (2.7.1-2.7.3) involves this content.
Source Reference Document
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Source Reference Description
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Pillar 1 - ESG Integration - Expectations of FI Actions
Strategy & Governance
P 1.15 – Does the Framework require/ask the FI’s board of directors (or highest governing body) to approve an ESRM and/or ESG integration strategy, and to supervise its implementation?
Yes
Source Reference Detail
In 2014, the former CBRC issued the “Key Performance Indicators of Green Credit”. Chapter 2 (2.7.1-2.7.3) involves this content.
Source Reference Document
Green Credit KPI (CBIRC, 2014)
Source Reference Description
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Pillar 1 - ESG Integration - Expectations of FI Actions
Organizational Structure & Capacity Building
P 1.16 – Does the Framework require/ask FIs to allocate resources/budget commensurate with portfolio ESG risks and define roles and responsibilities for ESG integration within the organization?
Yes
Source Reference Detail
In 2014, the former CBRC issued the “Key Performance Indicators of Green Credit”. Chapter 2 (2.9.1-2.9.3) involves this content.
Source Reference Document
Green Credit KPI (CBIRC, 2014)
Source Reference Description
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P 1.17 – Does the Framework require/ask FIs to develop and maintain the ESG expertise and capacity of staff commensurate with portfolio ESG risks through regular training and learning?
Yes
Source Reference Detail
In 2014, the former CBRC issued the “Key Performance Indicators of Green Credit”. Chapter 3 (3.14.4) involves this content.
Source Reference Document
Green Credit KPI (CBIRC, 2014)
Source Reference Description
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P 1.18 – Does the Framework require/ask FIs to create incentives for managers to reduce the ESG risk-level of the portfolio over a specified timeframe?
Yes
Source Reference Detail
In 2014, the former CBRC issued the “Key Performance Indicators of Green Credit”. Chapter 5 (5.23.1-5.23.2) involves this content.
Source Reference Document
Green Credit KPI (CBIRC, 2014)
Source Reference Description
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Pillar 1 - ESG Integration - Expectations of FI Actions
Policies & Procedures
P 1.19 – Does the Framework require/ask FIs to develop policies and procedures to identify, classify, measure, monitor, and manage ESG risks and performance throughout the financing cycle at the client level and/or the transaction/project level?
Yes
Source Reference Detail
In 2014, the former CBRC issued the “Key Performance Indicators of Green Credit”. Chapter 3 (3.10.1-3.10.4；3.11.1-3.11.5) involves this content.
Source Reference Document
Green Credit KPI (CBIRC, 2014)
Source Reference Description
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P 1.20 – Does the Framework require/ask FIs to undertake a regular review and monitoring of ESG risk exposure at aggregate portfolio level?
Yes
Source Reference Detail
In 2014, the former CBRC issued the “Key Performance Indicators of Green Credit”. Chapter 4 (4.20.1-4.20.3) involves this content.
Source Reference Document
Green Credit KPI (CBIRC, 2014)
Source Reference Description
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P 1.21 – Does the Framework require/ask FIs to establish and maintain an external inquiry/complaints/grievance mechanism for interested and affected stakeholders in relation to ESG practices?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
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Pillar 1 - ESG Integration - Expectations of FI Actions
Tracking, Reporting & Disclosure
P 1.22 – Does the Framework require/ask FIs to report ESG risks and performance to the regulator or industry association?
Yes
Source Reference Detail
In 2014, the former CBRC issued the “Key Performance Indicators of Green Credit”. Chapter 4 (4.20.4) involves this content.
Source Reference Document
Green Credit KPI (CBIRC, 2014)
Source Reference Description
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P 1.23 – Does the Framework require/ask FIs to report on ESG integration publicly?
Yes
Source Reference Detail
In 2014, the former CBRC issued the “Key Performance Indicators of Green Credit”. Chapter 5 (5.24.1-5.24.3) involves this content.
Source Reference Document
Green Credit KPI (CBIRC, 2014)
Source Reference Description
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P 1.24 – Does the Framework require/ask FIs to track credit risk (e.g. loan defaults) and/or financial returns in relation to ESG risk level?
Yes
Source Reference Detail
In 2012, former CBRC issued the “Green Credit Guidelines”, in which Article 20 stated that banking financial institutions should strengthen post-lending management, and formulate and implement targeted post-lending management measures for customers with potential major environmental and social risks. Pay close attention to the impact of national policies on customers’ operating conditions, strengthen dynamic analysis, and make timely adjustments in asset risk classification, provisioning, and loss verification. Establish and improve the internal reporting system and accountability system for major environmental and social risks of customers. When a major environmental and social risk event occurs, a customer shall take relevant risk treatment measures in a timely manner, and report to the supervisory authority the possible impact of the event on the banking financial institution.
Source Reference Document
Green Credit Guidelines (CBIRC, 2012)
Source Reference Description
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Pillar 2 - Climate Risk Management - Strategic Alignment
National Framework
P 2.25 – Has the regulator or industry association published a national framework (“Framework”) for the banking sector that sets out expectations for integrating the consideration and management of climate risks and their impact in the national economy?
Yes
Source Reference Detail
On January 2020, China Banking and Insurance Regulatory Commission(CBIRC) issued “Guidance on promoting high quality development of banking and insurance industry”. On June 2020, the general office of China Banking and Insurance Regulatory Commission(CBIRC) issued “Notice on relevant work of green financing statistical system”. On October 2020,Ministry of Ecology and Environment(MEE) , National Development and Reform Commission (NDRC). The People’s Bank of China (PBOC),China Banking and Insurance Regulatory Commission(CBIRC) and China Securities Regulatory Commission(CSRC) issued “Guidance on promoting investment and financing in response to climate change”.
Source Reference Document
Guidance on Promoting Investment and Financing to Address Climate Change (PBOC, 2020)
Source Reference Description
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P 2.26 – Has the relevant regulator or industry association published a Framework for capital markets, investment, insurance or other non-lending FIs that sets out expectations for integrating the consideration and management of climate risks and their impact in the national economy?
Yes
Source Reference Detail
People’s Republic of China (MOF), National Development and Reform Commission (NDRC), Ministry of Environmental Protection of the People’s Republic of China (MEP), China Banking Regulatory Commission (CBRC), China Securities Regulatory Commission (CSRC), and China Insurance Regulatory Commission (CIRC) jointly issued “Guidance on the Construction of Green Financial System”. On January 2020, China Banking and Insurance Regulatory Commission(CBIRC) issued “Guidance on promoting high quality development of banking and insurance industry”. On June 2020, the general office of China Banking and Insurance Regulatory Commission(CBIRC) issued “Notice on relevant work of green financing statistical system”. On October 2020,Ministry of Ecology and Environment(MEE) , National Development and Reform Commission(NDRC), The People’s Bank of China(PBOC), China Banking and Insurance Regulatory Commission(CBIRC) and China Securities Regulatory Commission(CSRC) issued “Guidance on promoting investment and financing in response to climate change”.
Source Reference Document
Guidelines for Establishing the Green Financial System (PBOC, 2016)
Source Reference Description
People’s Republic of China (MOF), National Development and Reform Commission (NDRC), Ministry of Environmental Protection of the People’s Republic of China (MEP), China Banking Regulatory Commission (CBRC), China Securities Regulatory Commission (CSRC), and China Insurance Regulatory Commission (CIRC) jointly issued “Guidance on the Construction of Green Financial System”. On January 2020, China Banking and Insurance Regulatory Commission(CBIRC) issued “Guidance on promoting high quality development of banking and insurance industry”. On June 2020, the general office of China Banking and Insurance Regulatory Commission(CBIRC) issued “Notice on relevant work of green financing statistical system”. On October 2020,Ministry of Ecology and Environment(MEE) , National Development and Reform Commission(NDRC), The People’s Bank of China(PBOC), China Banking and Insurance Regulatory Commission(CBIRC) and China Securities Regulatory Commission(CSRC) issued “Guidance on promoting investment and financing in response to climate change”.
Pillar 2 - Climate Risk Management - Strategic Alignment
Alignment with International Goals & Standards
P 2.27 – Does the Framework make reference to international agreements or frameworks to address climate?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
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P 2.28 – Does the Framework recognize or align with established regional or international good practice for climate risk management and disclosure by FIs?
Yes
Source Reference Detail
On October 2020, Ministry of Ecology and Environment(MEE) , National Development and Reform Commission(NDRC), The People’s Bank of China(PBOC), China Banking and Insurance Regulatory Commission(CBIRC) and China Securities Regulatory Commission(CSRC) issued “Guidance on promoting investment and financing in response to climate change”：Further strengthen practical cooperation with international financial institutions and foreign-funded enterprises in the field of Climate Investment and financing,and actively learn from international good practices and financial institutions.
Source Reference Document
Guidance on Promoting Investment and Financing to Address Climate Change (PBOC, 2020)
Source Reference Description
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Pillar 2 - Climate Risk Management - Strategic Alignment
Alignment with National Goals & Strategies
P 2.29 – Has the regulator or industry association aligned the Framework with national goals to address climate change in line with the country’s Nationally Determined Contributions (NDCs) to the Paris Agreement?
Yes
Source Reference Detail
On October 2020,Ministry of Ecology and Environment(MEE) , National Development and Reform Commission(NDRC), The People’s Bank of China(PBOC), China Banking and Insurance Regulatory Commission(CBIRC) and China Securities Regulatory Commission(CSRC) issued “Guidance on promoting investment and financing in response to climate change”.
Source Reference Document
Guidance on Promoting Investment and Financing to Address Climate Change (PBOC, 2020)
Source Reference Description
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P 2.30 – Does any cooperation exist between agencies, or between government and industry association, with respect to policy design or implementation related to climate risk management?
Yes
Source Reference Detail
On August 2016, The People’s Bank of China(PBOC), Ministry of Finance of the People’s Republic of China(MOF), National Development and Reform Commission(NDRC), Ministry of Environmental Protection of the People’s Republic of China(MEP), China Banking Regulatory Commission(CBRC), China Securities Regulatory Commission(CSRC), and China Insurance Regulatory Commission(CIRC) jointly issued “Guidance on the Construction of Green Financial System”.On October 2020,Ministry of Ecology and Environment(MEE) , National Development and Reform Commission(NDRC), The People’s Bank of China(PBOC), China Banking and Insurance Regulatory Commission(CBIRC) and China Securities Regulatory Commission(CSRC) issued “Guidance on promoting investment and financing in response to climate change”.
Source Reference Document
Guidelines for Establishing the Green Financial System (PBOC, 2016)
Source Reference Description
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P 2.31 – Does any inter-agency data sharing currently exist related to climate risk management by FIs?
Yes
Source Reference Detail
China Banking and Insurance Regulatory Commission(CBIRC) 、Ministry of Ecology and Environment(MEE) 、Ministry of Emergency Management(MEM)、National Health Commission(NHC),etc.
Source Reference Document
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Source Reference Description
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Pillar 2 - Climate Risk Management - Regulatory and Industry Association Actions
Overall Approach & Strategy
P 2.32 – Has the regulator or industry association undertaken research on historical impacts to the economy and financial sector from climate change, and/or future expected impacts resulting from physical and transition climate risks?
Yes
Source Reference Detail
For example, Industrial and Commercial Bank of China(ICBC) has carried out stress test on the credit quality of thermal power industry loans in response to changes in environmental protection policies. China Construction Bank(CCB) has carried out stress test on chemical industry and thermal power industry respectively. Green Finance Research Center of Tsinghua University has carried out quantitative research on the risk of climate transformation.
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Source Reference Description
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P 2.33 -Does the Framework identify key sources of GHG emissions – such as in particular sectors – as priorities in the proactive management of climate risks by the financial sector?
Yes
Source Reference Detail
On October 2020,Ministry of Ecology and Environment(MEE) , National Development and Reform Commission(NDRC), The People’s Bank of China(PBOC), China Banking and Insurance Regulatory Commission(CBIRC) and China Securities Regulatory Commission(CSRC) issued “Guidance on promoting investment and financing in response to climate change”：Mitigation of climate change， includes adjusting industrial structure and actively developing strategic emerging industries; optimizing energy structure and vigorously developing non fossil energy; controlling greenhouse gas emissions from non energy activities such as industry, agriculture and waste disposal.
Source Reference Document
Guidance on Promoting Investment and Financing to Address Climate Change (PBOC, 2020)
Source Reference Description
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P 2.34 – Does the Framework incorporate the conservation/restoration of natural carbon sinks (such as oceans, forests, mangroves, grasslands, and soils) as an important part of reducing climate change risks? (e.g., through guidelines, scenario analysis, targets, or incentives for FIs)
Yes
Source Reference Detail
On October 2020,Ministry of Ecology and Environment(MEE) , National Development and Reform Commission(NDRC), The People’s Bank of China(PBOC), China Banking and Insurance Regulatory Commission(CBIRC) and China Securities Regulatory Commission(CSRC) issued “Guidance on promoting investment and financing in response to climate change”：Adaptation to climate change ,including improving the adaptability in key areas such as agriculture, water resources, forestry and ecosystem, ocean, meteorology, disaster prevention, mitigation and relief; strengthening the construction of adaptation infrastructure, accelerating infrastructure construction, and improving scientific and technological capabilities.
Source Reference Document
Guidance on Promoting Investment and Financing to Address Climate Change (PBOC, 2020)
Source Reference Description
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P 2.35 – Has the regulator or industry association developed an internal strategy to address climate risk, and/or embedded climate risk management into its governance, organizational structures, and budget as part of the Framework?
Yes
Source Reference Detail
On January 2012, China Banking Regulatory Commission(CBRC) issued “Notice on printing and distributing the guidelines on green credit”. Banking regulators should strengthen the guidance on self-evaluation of green credit of banking financial institutions, comprehensively evaluate the effectiveness of green credit of banking financial institutions in combination with off-site supervision and on-site inspection, and take the evaluation results as the regulatory basis of banking financial institutions in accordance with relevant laws and regulations .It is an important basis for rating, institution access, business access and performance evaluation of senior executives.
Source Reference Document
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P 2.36 – Has the regulator or industry association undertaken any activities to expand and deepen analytical understanding of national and/or cross-border physical and transition climate risks, and to raise awareness as to how these risks may transmit to, and impact, the financial sector?
Yes
Source Reference Detail
On June 2020, the general office of China Banking and Insurance Regulatory Commission(CBIRC) issued “Notice on relevant work of green financing statistical system”,Domestic banking financial institutions are required to collect statistics and submit financing supporting low-carbon economy and circular economy, climate financing including mitigation and adaptation, and environmental equity financing. On November 2021, a forum on actively responding to climate change and effectively managing climate risk was held, with the participation of some domestic banking and insurance institutions.
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Source Reference Description
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Pillar 2 - Climate Risk Management - Regulatory and Industry Association Actions
Technical Guidance
P 2.37 – Has the regulator or industry association developed risk assessment approaches, methodologies, or tools to understand and assess the financial sector’s exposure to climate risk as part of the Framework?
Yes
Source Reference Detail
On June 2020, the general office of China Banking and Insurance Regulatory Commission(CBIRC) issued “Notice on relevant work of green financing statistical system”,21 major domestic banks are required to report to the regulatory authorities every six months on the financing of domestic support for low-carbon economy and circular economy,climate financing including mitigation and adaptation,and environmental equity financing.On August 2016, The People’s Bank of China(PBOC), Ministry of Finance of the People’s Republic of China(MOF), National Development and Reform Commission(NDRC), Ministry of Environmental Protection of the People’s Republic of China(MEP), China Banking Regulatory Commission(CBRC), China Securities Regulatory Commission(CSRC), and China Insurance Regulatory Commission(CIRC) jointly issued “Guidance on the Construction of Green Financial System”,when banks and other financial institutions carry out credit asset quality stress test, they should take environmental and social risks as important influencing factors, and give full consideration to them in asset allocation and internal pricing. On October 2020,Ministry of Ecology and Environment(MEE) , National Development and Reform Commission(NDRC), The People’s Bank of China(PBOC), China Banking and Insurance Regulatory Commission(CBIRC) and China Securities Regulatory Commission(CSRC) issued “Guidance on promoting investment and financing in response to climate change”,proposing to establish climate performance evaluation standards and encourage enterprises and institutions to fully consider the impact of future market carbon prices in investment activities.On June 2021,the China Banking Association initiated the establishment of an expert working group for China’s banking industry to support the realization of carbon peak and carbon neutrality goals,and preliminarily formulated nine goals and tasks,including guiding banks to establish a climate risk governance and risk control system.
Source Reference Document
Guidance on Promoting Investment and Financing to Address Climate Change (PBOC, 2020)
Source Reference Description
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Pillar 2 - Climate Risk Management - Regulatory and Industry Association Actions
Supervisory Activities & Incentives
P 2.38 – As part of the Framework, has the regulator clarified supervisory expectations with regard to climate risk management by FIs, including consideration of international good practices?
Yes
Source Reference Detail
On January 2012, China Banking Regulatory Commission(CBRC) issued “Notice on printing and distributing the guidelines on green credit”,Banking financial institutions should promote green credit from a strategic height, increase support for green economy, low-carbon economy and circular economy, prevent environmental and social risks, improve their own environmental and social performance, optimize credit structure, improve service level, and promote the transformation of development mode.On August 2016, The People’s Bank of China(PBOC), Ministry of Finance of the People’s Republic of China(MOF), National Development and Reform Commission(NDRC), Ministry of Environmental Protection of the People’s Republic of China(MEP), China Banking Regulatory Commission(CBRC), China Securities Regulatory Commission(CSRC), and China Insurance Regulatory Commission(CIRC) jointly issued “Guidance on the Construction of Green Financial System”,when banks and other financial institutions carry out credit asset quality stress test, they should take environmental and social risks as important influencing factors, and give full consideration to them in asset allocation and internal pricing.On October 2020,Ministry of Ecology and Environment(MEE) , National Development and Reform Commission(NDRC), The People’s Bank of China(PBOC), China Banking and Insurance Regulatory Commission(CBIRC) and China Securities Regulatory Commission(CSRC) issued “Guidance on promoting investment and financing in response to climate change”,deepen international cooperation in climate investment and financing.
Source Reference Document
Guidelines for Establishing the Green Financial System (PBOC, 2016) | Guidance on Promoting Investment and Financing to Address Climate Change (PBOC, 2020)
Source Reference Description
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P 2.39 – Has the regulator started to explicitly embed climate-related risk in supervisory activities and review processes as part of the Framework?
Yes
Source Reference Detail
On August 2016, The People’s Bank of China(PBOC), Ministry of Finance of the People’s Republic of China(MOF), National Development and Reform Commission(NDRC), Ministry of Environmental Protection of the People’s Republic of China(MEP), China Banking Regulatory Commission(CBRC), China Securities Regulatory Commission(CSRC), and China Insurance Regulatory Commission(CIRC) jointly issued “Guidance on the Construction of Green Financial System”, exploring ways to support local green finance development through refinancing, macro Prudential evaluation framework, capital market financing tools, etc.
Source Reference Document
Guidelines for Establishing the Green Financial System (PBOC, 2016)
Source Reference Description
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P 2.40 – Has the regulator started to explicitly embed climate-related risk in supervisory activities and review processes as part of the Framework?
Yes
Source Reference Detail
On June 2020, the general office of China Banking and Insurance Regulatory Commission(CBIRC) issued “Notice on relevant work of green financing statistical system, 21 major domestic banks submit green credit data to regulators every six months.
Source Reference Document
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Source Reference Description
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P 2.41 – Has the regulator started to explicitly embed climate-related risk in supervisory activities and review processes as part of the Framework?
Yes
Source Reference Detail
On October 2020,Ministry of Ecology and Environment(MEE) , National Development and Reform Commission(NDRC), The People’s Bank of China(PBOC), China Banking and Insurance Regulatory Commission(CBIRC) and China Securities Regulatory Commission(CSRC) issued “Guidance on promoting investment and financing in response to climate change”, encouraging cooperation modes such as”government bank guarantee””government bank insurance””bank loan+risk guarantee compensation”and”tax financing”,and establish mechanisms such as loss sharing,risk compensation and guarantee credit enhancement according to law.
Source Reference Document
Guidance on Promoting Investment and Financing to Address Climate Change (PBOC, 2020)
Source Reference Description
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Pillar 2 - Climate Risk Management - Regulatory and Industry Association Actions
Tracking & Aggregated Disclosure
P 2.42 – Does the regulator or industry association regularly collect and/or report market-level and/or FI-level data on climate-related financial sector risks as part of the Framework?
Yes
Source Reference Detail
On June 2020, the general office of China Banking and Insurance Regulatory Commission(CBIRC) issued “Notice on relevant work of green financing statistical system”,21 major domestic banks submit green credit data to regulators every six months.
Source Reference Document
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Source Reference Description
Pillar 2 - Climate Risk Management - Expectations of FI Actions
Strategy & Governance
P 2.43 – Does the Framework require/ask FIs to establish a strategy for climate risk management with responsibility at the board of director level (or highest governing body)?
Yes
Source Reference Detail
On January 2012, China Banking Regulatory Commission(CBRC) issued “Notice on printing and distributing the guidelines on green credit”,the board of directors or board of directors of banking financial institutions is responsible for determining the green credit development strategy, examining and approving the green credit objectives set by the senior management and the green credit reports submitted, and supervising and evaluating the implementation of the green credit development strategy of the banking financial institutions.
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Pillar 2 - Climate Risk Management - Expectations of FI Actions
Organizational Structure & Capacity Building
P 2.44 – Does the Framework require/ask FIs to define the roles and responsibilities and related capacities of the FI’s senior management and operational staff in identifying, assessing, and managing climate-related financial risks and opportunities?
Yes
Source Reference Detail
On January 2012, China Banking Regulatory Commission(CBRC) issued “Notice on printing and distributing the guidelines on green credit”,The senior management of banking financial institutions should, in accordance with the decisions of the board of directors or the board of directors, formulate green credit objectives, establish mechanisms and processes, clarify responsibilities and authorities, carry out internal control inspection and assessment, report the development of green credit to the board of directors or the board of directors every year, and report relevant information to the regulatory authorities in a timely manner. The senior management of banking financial institutions should define a senior executive and leading management department, allocate corresponding resources, and organize and manage the work of green credit.
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Pillar 2 - Climate Risk Management - Expectations of FI Actions
Policies & Procedures
P 2.45 – Does the Framework require/ask FIs to expand existing risk management processes to identify, measure, monitor, and manage/mitigate financial risks from climate change?
Yes
Source Reference Detail
On January 2012, China Banking Regulatory Commission(CBRC) issued “Notice on printing and distributing the guidelines on green credit”,banking financial institutions should formulate special credit guidance for industries with significant environmental and social risks, implement differentiated and dynamic credit policy, and implement risk exposure management system. Strengthening the management of credit approval, and determining reasonable credit authority and approval process according to the nature and severity of environmental and social risks faced by customers.
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Pillar 2 - Climate Risk Management - Regulatory and Industry Association Actions
Tracking, reporting & disclosure
P 2.46 – Does the Framework require/ask FIs to report on their overall approaches to climate risk management in line with international good practices (e.g., TCFD), or establish a timeline by which FIs should begin to align their reporting with such practices?
No
Source Reference Detail
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Source Reference Document
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Source Reference Description
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P 2.47 – Does the Framework require/ask FIs to identify, measure, and report on exposure to sectors which are vulnerable to transition risk and physical risk?
Yes
Source Reference Detail
On August 2016, The People’s Bank of China (PBOC), Ministry of Finance of the People’s Republic of China(MOF), National Development and Reform Commission(NDRC), Ministry of Environmental Protection of the People’s Republic of China(MEP), China Banking Regulatory Commission(CBRC), China Securities Regulatory Commission(CSRC), and China Insurance Regulatory Commission(CIRC) jointly issued “Guidance on the Construction of Green Financial System”,banks and other financial institutions are encouraged to evaluate the risk exposure of loans and assets in high-risk areas, and quantitatively analyze the credit and market risks that the risk exposure may bring to financial institutions under various scenarios in the future.
Source Reference Document
Guidelines for Establishing the Green Financial System (PBOC, 2016)
Source Reference Description
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P 2.48 – Does the Framework require/ask FIs to adopt and report on performance targets to reduce portfolio greenhouse gas (GHG) emissions on a regular basis?
No
Source Reference Detail
On June 2020, the general office of China Banking and Insurance Regulatory Commission (CBIRC) issued “Notice on relevant work of green financing statistical system”,21 major domestic banks are required to report to the regulatory authorities every six months on the financing of domestic support for low-carbon economy and circular economy,climate financing including mitigation and adaptation,and environmental equity financing.
Source Reference Document
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Source Reference Description
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P 2.49 – Does the Framework require/ask FIs to adopt and report on performance targets to reduce exposure to climate change risks at the portfolio level on a regular basis?
Yes
Source Reference Detail
On June 2020, the general office of China Banking and Insurance Regulatory Commission (CBIRC) issued “Notice on relevant work of green financing statistical system”,21 major domestic banks are required to report to the regulatory authorities every six months on the financing of domestic support for low-carbon economy and circular economy,climate financing including mitigation and adaptation,and environmental equity financing.
Source Reference Document
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Source Reference Description
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Pillar 3 - Financing Sustainability - Strategic Alignment
National Framework
P 3.50 – Has the regulator or industry association published a national framework (“Framework”) for the banking sector that sets out expectations for integrating the consideration of instruments, goals, and standards for financing sustainability, including requirements for ensuring credibility and managing and measuring resulting impacts in the national economy?
Yes
Source Reference Detail
In December of 2017, China Banking Association issued the Implementation Plan for the Evaluation of Green Bank in China’s Banking Industry.
Source Reference Document
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Source Reference Description
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P 3.51 – Has the relevant regulator or industry association published a Framework for capital markets, investment, insurance or other non-lending FIs that sets out expectations for integrating the consideration of instruments, goals, and standards for financing sustainability, including requirements for ensuring credibility and managing and measuring resulting impacts in the national economy
Yes
Source Reference Detail
August of 2016, the People’s Bank of China, other seven ministries and commissions jointly issued guidelines on building the green financial system,which require banks, insurance companies and other financial institutions as well as capital markets to actively develop green finance and support sustainable economic and social development
Source Reference Document
Guidelines for Establishing the Green Financial System (PBOC, 2016)
Source Reference Description
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Pillar 3 - Financing Sustainability - Strategic Alignment
Alignment with International Goals & Standards
P 3.52 – Has the regulator or industry association developed a strategy, regulations, or set of frameworks for stimulating the allocation of capital to sustainable assets, projects, and related sectors in line with global goals, such as the Sustainable Development Goals (SDGs)?
Yes
Source Reference Detail
In August of 2016, the People’s Bank of China, other seven ministries and commissions jointly issued guidelines on building the green financial system. The main purpose of building the green financial system is to mobilize and encourage more social capital to invest in green industries, and restrain polluting investment more effectively.
Source Reference Document
Guidelines for Establishing the Green Financial System (PBOC, 2016)
Source Reference Description
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P 3.53 – Does the Framework recognize and/or align with existing standards, voluntary principles, or market good practices related to sustainable finance instruments?
Yes
Source Reference Detail
In July 2020，the People’s Bank of China, National Development and Reform Commission, China Securities Regulatory Commission on Issuing the Catalogue of Green Bond-Supported Projects (2020 Edition)(Draft for consultation)
Source Reference Document
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Source Reference Description
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Pillar 3 - Financing Sustainability - Regulatory and Industry Association Actions
Alignment with national goals & strategies
P 3.54 – Does the Framework enable the achievement of stated national objectives by guiding capital to sectors, assets, and projects that have environmental and social benefits in line with national sustainable development priorities, strategies, targets, and the size of sustainable investment needs, and taking into account the local barriers to scaling-up sustainable finance?
Yes
Source Reference Detail
In August of 2016, the People’s Bank of China, other seven ministries and commissions jointly issued guidelines on building the green financial system. The main purpose of building the green financial system is to mobilize and encourage more social capital to invest in green industries, and restrain polluting investment more effectively.
Source Reference Document
Guidelines for Establishing the Green Financial System (PBOC, 2016)
Source Reference Description
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P 3.55 – Does the Framework enable the achievement of stated national objectives by guiding capital to sectors, assets, and projects that have environmental and social benefits in line with national sustainable development priorities, strategies, targets, and the size of sustainable investment needs, and taking into account the local barriers to scaling-up sustainable finance?
Yes
Source Reference Detail
In December of 2017, China Banking Association issued the Implementation Plan for the Evaluation of Green Bank in China’s Banking Industry; The Green Bank Evaluation Experts consist of green credit experts recommended by major banks, as well as green credit experts from third-party intermediaries, non-governmental organizations, academic research institutions and other fields, and the list is selected by the China Banking Association.
Source Reference Document
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Source Reference Description
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P 3.56 – Does any inter-agency data sharing currently exist related to stimulating and monitoring sustainable finance flows?
Yes
Source Reference Detail
In December of 2017, China Banking Association issued the Implementation Plan for the Evaluation of Green Bank in China’s Banking Industry; The People’s Bank of China, CDB, policy banks, state-owned commercial banks, joint-stock commercial banks, Postal Savings Bank of China, Bank of Beijing, Bank of Shanghai, Bank of Jiangsu are solved; Green credit performance evaluation is conducted quarterly.
Source Reference Document
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Source Reference Description
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Pillar 3 - Financing Sustainability - Strategic Alignment
Overall Approach & Strategy
P 3.57 – Does the Framework require/ask the regulator or industry association to establish mechanisms to identify and encourage the allocation of capital to sustainable sectors, assets, and projects?
Yes
Source Reference Detail
In December of 2017, China Banking Association issued the Implementation Plan for the Evaluation of Green Bank in China’s Banking Industry; The Green Bank evaluation frequency is once a year.
Source Reference Document
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Source Reference Description
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Pillar 3 - Financing Sustainability - Regulatory and Industry Association Actions
Technical Guidance
P 3.58 – Does the Framework require/ask the regulator or industry association to establish mechanisms to identify and encourage the allocation of capital to sustainable sectors, assets, and projects?
Yes
Source Reference Detail
In February of 2012, CBRC issued a notice on the issuance of green credit guidelines; In 2015, Catalogue of Green Bonds was approved by People’s Bank of China; In August of 2016, the People’s Bank of China, other seven ministries and commissions jointly issued guidelines on building a green financial system.
Source Reference Document
Green Credit Guidelines (CBIRC, 2012) | Guidelines for Establishing the Green Financial System (PBOC, 2016)
Source Reference Description
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P 3.59 – Does the Framework provide guidelines for extending green, social or sustainability-focused loans (excluding bonds)?
Yes
Source Reference Detail
In February of 2012, CBRC issued a notice on the issuance of green credit guidelines; In August of 2016, People’s Bank of China, seven other ministries and commissions jointly issued guidelines on building the green financial system.
Source Reference Document
Green Credit Guidelines (CBIRC, 2012) | Guidelines for Establishing the Green Financial System (PBOC, 2016)
Source Reference Description
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P 3.60 – Does the Framework provide guidelines for issuance of green, social or sustainability bonds?
Yes
Source Reference Detail
In February of 2012, CBRC issued a notice on the issuance of green credit guidelines; In August of 2016, People’s Bank of China, seven other ministries and commissions jointly issued guidelines on building the green financial system.
Source Reference Document
Green Credit Guidelines (CBIRC, 2012) | Guidelines for Establishing the Green Financial System (PBOC, 2016)
Source Reference Description
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P 3.61 – Does the Framework require/ask for external party verification to ensure the credibility of sustainability instruments?
Yes
Source Reference Detail
In February of 2012, CBRC issued a notice on the issuance of green credit guidelines(Article 24); In August of 2016, People’s Bank of China, seven other ministries and commissions jointly issued the guidelines on building the green financial system (Article 14).
Source Reference Document
Green Credit Guidelines (CBIRC, 2012) | Guidelines for Establishing the Green Financial System (PBOC, 2016)
Source Reference Description
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Pillar 3 - Financing Sustainability - Regulatory and Industry Association Actions -
Supervisory activities & incentives
P 3.62 – Does the regulator or industry association monitor information reported by FIs related to green/social/sustainability investment, lending, and other instruments to prevent greenwashing and social-washing?
Yes
Source Reference Detail
In February of 2012, CBRC issued a notice on the issuance of green credit guidelines(Article 24).
Source Reference Document
Green Credit Guidelines (CBIRC, 2012)
Source Reference Description
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P 3.63 – Are there any financial or non-financial incentives for FIs to develop and grow green, social, or sustainability finance instruments?
Yes
Source Reference Detail
In December of 2017, China Banking Association issued the Implementation Plan for the Evaluation of Green Bank in China’s Banking Industry (Article13&14).
Source Reference Document
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Source Reference Description
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Pillar 3 - Financing Sustainability - Regulatory and Industry Association Actions -
Tracking & Aggregated Disclosure
P 3.64 – Does the regulator or industry association collect and/or publish data from FIs or other sources about allocation of capital to green/social/sustainability assets, projects, or sectors?
Yes
Source Reference Detail
In July of 2013, Notice of CBRC on the Submission of Green Credit Statistics.
Source Reference Document
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Source Reference Description
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Pillar 3 - Financing Sustainability - Expectations of FI Actions
Strategy & Governance
P 3.65 – Does the Framework require/ask FIs to establish a strategy, governance, or high-level targets, including at the Board of Directors level, for capital allocation to sustainable assets, projects, or sectors?
Yes
Source Reference Detail
In February of 2012, CBRC issued a notice on the issuance of green credit guidelines(Article6&7&8).
Source Reference Document
Green Credit Guidelines (CBIRC, 2012)
Source Reference Description
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Pillar 3 - Financing Sustainability - Expectations of FI Actions
Organizational Structure & Capacity Building
P 3.66 – Does the Framework require/ask FIs to define internal staff roles and responsibilities to encourage finance flows to green, social, and/or sustainability-focused investments?
Yes
Source Reference Detail
In February of 2012, CBRC issued a notice on the issuance of green credit guidelines(Article8).The senior management of the bank is responsible for formulating green credit goals, establishing mechanisms and procedures, clarifying responsibilities and authorities, and conducting internal control inspections and assessments
Source Reference Document
Green Credit Guidelines (CBIRC, 2012)
Source Reference Description
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P 3.67 – Does the Framework require/ask FIs to develop and maintain internal staff capacity on green, social, or sustainability products through regular training and learning?
Yes
Source Reference Detail
In February of 2012, CBRC issued a notice on the issuance of green credit guidelines(Article14).
Source Reference Document
Green Credit Guidelines (CBIRC, 2012)
Source Reference Description
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Pillar 3 - Financing Sustainability - Expectations of FI Actions
Policies & Procedures
P 3.68 – Does the Framework require/ask FIs to put in place policies and procedures for defining, issuing, managing proceeds, tracking performance, and reporting on green, social or sustainability-focused products?
N/A
Source Reference Detail
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Source Reference Document
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Source Reference Description
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P 3.69 – Does the Framework require/ask FIs to appoint an independent external reviewer to confirm that the FI’s internal framework meets the requirements of the recognized national framework and regulations, or aligns to international standards?
Yes
Source Reference Detail
In February of 2012, CBRC issued a notice on the issuance of green credit guidelines (Article24); In August of 2016, the People’s Bank of China and seven other ministries and commissions jointly issued the guidelines on building a green financial system(Article 14).
Source Reference Document
Green Credit Guidelines (CBIRC, 2012) | Guidelines for Establishing the Green Financial System (PBOC, 2016)
Source Reference Description
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P 3.70 – Does the Framework require/ask that FIs create incentives for managers to increase sustainable loans or investments in the portfolio?
No
Source Reference Detail
Source Reference Document
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Source Reference Description
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Pillar 3 - Financing Sustainability - Expectations of FI Actions
Tracking, reporting & disclosure
P 3.71 – Does the Framework require/ask FIs to publish annual updates on the performance and impacts of the sustainability instruments in compliance with relevant national and/or international standards?
Yes
Source Reference Detail
In December of 2017, China Banking Association issued China Banking Green Bank Evaluation Implementation Plan;The Green Bank evaluation frequency is once a year.
Source Reference Document
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Source Reference Description
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P 3.72 – Does the Framework require/ask FIs to obtain and disclose independent review of metrics reported annually in relation to the social and environmental outcomes and impacts achieved through the sustainability instruments?
No
Source Reference Detail
–
Source Reference Document
Guidelines for Establishing the Green Financial System (PBOC, 2016)
Source Reference Description
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P 3.73 – Does the Framework require/ask FIs to obtain and disclose independent review of metrics reported annually in relation to the social and environmental outcomes and impacts achieved through the sustainability instruments?
Yes
Source Reference Detail
In July of 2013, Notice of CBIRC on the Submission of Green Credit Statistics; In December of 2017, China Banking Association evaluated the implementation plan of China Banking Green Bank.
Source Reference Document
Green Credit Statistics Reporting (CBIRC, 2013)
Source Reference Description
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P 3.74 – Does the Framework require/ask FIs to report to the regulator(s) or industry association(s) on green, social, and/or sustainability bonds or other positive impact investments?
Yes
Source Reference Detail
In February of 2012, CBRC issued a notice on the issuance of green credit guidelines (Article24);In August of 2016, CSRC issued Guidelines for Green Bond Issuance Article (5).
Source Reference Document
Green Credit Guidelines (CBIRC, 2012) | Guidelines for Green Bond Issuance (China Securities Regulatory Commission, 2016)
Source Reference Description
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P 3.75 – Does the Framework require/ask FIs to report publicly on their green, social and sustainability-focused finance activities and positive outcomes or impacts (i.e. not only to the regulator or shareholders)?
Yes
Source Reference Detail
In February of 2012, CBRC issued a notice on the issuance of green credit guidelines (Article24). Banks should disclose green credit strategies and policies, and fully disclose the development of green credit.
Source Reference Document
Green Credit Guidelines (CBIRC, 2012)
Source Reference Description
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