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 2020 CCB issued USD1.2 billion of senior green bonds under the theme of “tackling global climate change” and was awarded the 2020 Best Offshore Green Bond by The Asset – Hong Kong. At the end of the same year, CCB’s global portfolio of “green loans” stood at USD215 billion, which was an increase of USD26 billion or 14.20% over the prior year.
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 11 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.