Bank of China (BOC) continues to play a pivotal role in green finance. Through its “BOC Green+” global brand, the bank is offering a range of green financial products. The brand is part of its Green Financial Plan, which aligns with China’s national strategy of achieving “carbon peak and carbon neutrality.”
BOC actively participates in international green finance collaboration. It has implemented climate risk management and disclosure under the framework of the United Nations Principles for Responsible Banking (PRB) and the Task Force on Climate-related Financial Disclosure (TCFD). It has played pivotal roles, serving as co-chair of the Transition Finance Taskforce of the Green Investment Principle (GIP) for the Belt and Road initiative, vice-chair of the China Council of the Sustainable Markets Initiative (SMI).
BOC also has organised the Green Finance and Sustainable Development Forum at the fourth China International Consumer Products Expo (CICPE), and organized the China-UK Green Finance Seminar to strengthen international cooperation.
Rapid Growth in Green Credit
At the forefront of green financial products that support sustainable practices, BOC has ranked first among Chinese banks on Bloomberg’s “Global Green UoP Loans” and “Global Sustainability-Linked Loans” lists. As of June 2024, BOC’s domestic green credit balance reached 3.67 trillion RMB, representing a nearly 40% year-over-year increase. Key projects include the world’s largest solar powered reverse osmosis seawater desalination facility and the construction of the Abu Dhabi waste-to-energy facility, one of the largest in the Arab world.
The bank was also the first to open trading and registration accounts in China’s National Greenhouse Gas Emission Reduction Market and jointly underwrote China’s first interbank green office building REITs. It also collaborated with the ChinaBondPricing Centre to introduce the ChinaBond BOC Green Bond Index, enhancing the market’s capacity for green financial instruments.
Leadership in the Green Bond Market
In the first half of 2024, BOC underwrote 98.37 billion RMB in domestic green bonds, outpacing its peers. The bank also underwrote US$9.177 billion in international green bonds, topping among Chinese peers in Bloomberg’s “Global Offshore Green Bonds” rankings and ranked first in the National Association of Financial Market Institutional Investors’ “list of Investors in Green Debt Financing Instruments”. Additionally, BOC issued the world’s first “Belt and Road” sustainable development bond, channeling proceeds into renewable energy and water management projects.
Strengthening ESG Risk Management
BOC has prioritised customer Environmental, Social, and Governance (ESG) risk management. It has implemented a comprehensive ESG risk management policy governing the entire business cycle for corporate banking. It encompasses risk identification and classification, due diligence, approval, contract management, fund distribution, post-lending management and post-investment management, thereby driving continuous improvements in customer ESG risk management at the bank.
Building Green Finance Talent
BOC has developed a comprehensive green finance talent development system, held competitions to encourage innovation in related products and services, and integrated specialised training into its employee programs. As of June, 2024, the bank has established 389 sub-branches featured with green finance services.
Greening Its Operations
BOC’s head office and three other landmark buildings have obtained “carbon neutral” certifications. The bank has also invested in energy-saving upgrades, reduced food and paper waste, and promoted the use of clean energy vehicles. At the sub-branch level, it has designed 33 green-built locations and encouraged employees to adopt energy-saving practices.
A Path to Sustainable Development
Bank of China is committed to driving sustainable growth and contributing to China’s dual carbon goals. By leveraging its entire operation, BOC has positioned itself as a global leader in green finance.
