On September 9th, the green finance brand launch conference of China Merchants Bank was successfully held in the head office building of China Merchants Bank. At the meeting, China Merchants Bank successfully released the green financial product and service plan and the Sustainable Finance Report under the Background of "Dual Carbon", and comprehensively demonstrated its exploration and practice in green operation.
At present, CMB is following the path of green development, continuously deepening industry awareness, innovating green financial products, exploring green operations, and helping enterprises ignite green engines, achieve green value creation, and help China achieve the major strategic goal of carbon peak and carbon neutrality through its own high-quality development and accompanying the green development of enterprises.
At the press conference, CMB also released its green finance brand, which was witnessed by executives and experts from leading enterprises in the fields of new energy power generation, new energy vehicles, energy conservation and environmental protection, and steel, and senior executives of CMB.
Investigate and research first, and release green finance research results
Since China clearly put forward the "dual carbon" goal in September 2020, the central government has completed the "9+N" policy system, and the "dual carbon" strategy is in full swing. From the supply side to the energy consumption side, the green development of energy saving, efficiency improvement and carbon reduction benefits industry development and residents' lives. At the press conference, CMB Research Institute released important green finance research results.
The "Sustainable Finance Report in the Context of "Dual Carbon" proposes that the "dual carbon" action will be promoted in an orderly manner according to the trend of "double new", that is, "new energy" and "new electricity"
the gasification revolution". At the same time, with the continuous development of new energy-saving technologies and the continuous construction of forest carbon sinks, the cumulative market investment demand can be generated about 160 trillion yuan. The report also studies and judges the development trend of green finance, and expounds the ideas and directions of CMB to support the development of green industries.
In CMB's view, the core meaning of green finance is to deeply cultivate green customers. On the one hand, CMB's green finance customers are "broad and comprehensive", covering not only customers in "dark green" industries such as wind power, photovoltaics, and new energy vehicles, but also customers in "transformation" industries such as thermal power, steel, and building materials. On the other hand, CMB provides customers with "precise and accurate" differentiated services by virtue of its industry-specific capabilities, and is committed to providing customers with more efficient and effective services by continuously deepening industry understanding and understanding customer needs.
Thanks to the full understanding of the strategic value of green development, the positioning of green finance in the operation system of CMB has been continuously improved. CMB established the Green Finance Business Development Committee, as the coordinating body of the whole bank's green work, and undertook the responsibility of planning the development direction, formulating business strategies and implementing development tasks. This year, CMB has included green finance in the "seven characteristics" of corporate finance. Under the guidance of the strategic goal of "Value Bank", increase policy and resource support for green finance, and actively integrate into the national green development strategy.
Build a product matrix and promote green finance services
Under the "dual carbon" goal, the energy transformation continues to advance, and green finance ushers in a period of accelerated development. CMB keeps up with the changes of the times and creates its own advantages in green finance development. As of the end of June 2023, CMB had a balance of RMB6.3879 billion in green loans and RMB321.2023 billion in carbon emission reduction loans. CMB gives full play to its service advantages and provides customers with a full range of financial services through public-private linkage and parent bank and subsidiary linkage. At the end of June 6, CMB's green FPA (total financing for corporate customers), green retail, and green investment full-caliber business balance was 8038.<> billion.
CMB's outstanding achievements in the field of green finance stem from three initiatives:
First, actively promote the improvement of its own green capabilities. CMB has formulated differentiated credit policies for the main areas and industries of green development, formed a green thematic policy section, and increased support for green industries. At the same time, CMB incorporated climate risk into the pre-loan and post-loan management of credit granting business, established an environmental risk database, and incorporated environmental assessment factors into customer ratings and business risk cost measurement models to reduce the loan costs of green industries and projects and support green development. Carry out the construction of "carbon capacity", launch the carbon inventory of investment and financing, and incorporate carbon emission information into customer KYC management, and continue to promote the construction of the bank's carbon information database. CMB uses carbon data to promote carbon-linked financial products and promote transition financial products and services.
The second is to focus on creating differentiated service advantages. Since its establishment in 1987, "change because of you" has always been CMB's business philosophy. In the field of green finance, CMB has always paid attention to the development trend of the industry, grasped the changes in customer needs, and provided differentiated service solutions by virtue of its own industry professional capabilities, from serving green energy, green transportation, green buildings, to supporting the green and low-carbon transformation of industry. Taking new energy vehicles as an example, CMB adheres to the business philosophy of the whole industry chain and continues to optimize and upgrade the service plan of "supply, production, sales and consumption" of new energy vehicles. In the supply chain, the account right pool provides a new online supply chain financing model for OEM suppliers, and breaks down geographical silos, shortens business processes, and improves financing efficiency through the "one service for all banks" mechanism. In the production process, the cash register is used as an intelligent collection solution for automobile sales, realizing functions such as omni-channel acquiring, intelligent reconciliation, and multi-party accounting; In the sales and consumption links, for the OEM agent sales model, it provides all-weather online "bicycle financing", tripartite supervision, intelligent cash register and other comprehensive services.
The third is to launch a characteristic product service system and create a product matrix of "five horizontal and seven vertical". The "Five Horizons" provides one-stop financial services around five scenarios: green financing, green asset operation, green investment, green retail and carbon finance. The "Seven Verticals" closely follow policy and market trends, and integrate scenario-based products into industry services, including the three "deep green" fields of "source, grid, load storage", new energy vehicles, and rail transit, as well as the four low-carbon transformation industries of thermal power, steel, building materials and agriculture to be covered by the People's Bank of China's transition finance framework.
CMB has innovated in product innovation, issued low-carbon credit cards to the society, guided customers to spend green, and issued more than 18,<> cards. On the liability side, we have created characteristic advantages, innovatively launched green deposit services, met the deposit needs of corporate customers, helped enterprises achieve stable capital returns, and helped customers closely integrate environmental protection, social responsibility practices and their own development, better meet the huge green and low-carbon investment and financing needs brought about by the transformation of the real economy, and improve customer ESG performance.
Explore green operations and strive to be a pioneer in the energy conservation and carbon reduction industry
In addition, at the press conference, China Merchants Bank also detailed its exploration and practice of green operation.
According to CMB, starting from sorting out the carbon footprint and finding out the "bottom line" of carbon emissions, CMB conducted a comprehensive inventory of all carbon emission sources of more than 1900,<> institutions in the past three years in line with international standards. At the same time, the bank also starts from the four dimensions of green office, green building, green travel and green procurement, implements various emission reduction measures according to local conditions, and continues to deepen its efforts in areas such as information disclosure and the establishment of carbon management system, effectively promoting the green transformation of its own operations, building the foundation of ecological civilization and taking the road of green development together.