Nanjing Bank Drives Low-Carbon Transition

As we stride into 2025, Nanjing Bank has embarked on an innovative journey in the realms of green finance, aligning its strategies with the establishment of the Jiangsu Province Product Carbon Footprint Public Service PlatformThis initiative marks a significant milestone for the bank as it successfully disbursed Jiangsu's first-ever loan linked to product carbon footprintsThe unique aspect of this loan is its rate being directly correlated with the carbon footprint of a product throughout its lifecycleIf targets are met, companies can benefit from reduced interest rates, thereby incentivizing businesses to ramp up their energy-saving effortsThis endeavor is instrumental in realizing the dual carbon goals of China and actively promotes environmental sustainability through tangible financial support.

Recognized as one of the critical banks in China's financial landscape, Nanjing Bank's exploration in green finance is a testament to its commitment to sustainable developmentIn a world increasingly driven by the imperatives of sustainability, green finance has emerged as a pivotal force facilitating economic transitions and environmental protectionChina, as one of the largest players in the global green finance market, is making strides to develop a robust system that not only guides policy but also fosters innovative financial instruments to bolster green initiatives.

Nanjing Bank has positioned itself as a driving force in this green finance revolutionFollowing their launch of a comprehensive green finance strategy, the bank has achieved remarkable outcomes in green credit, green bond issuance, and financing green projects, thereby contributing positively to the support of sustainable development in the real economyTheir focus on establishing a well-rounded green finance framework highlights a forward-thinking approach integral to navigating the complexities of environmental demands.

Looking to establish a comprehensive green finance development model, Nanjing Bank has set forth an ambitious plan

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The bank's strategic blueprint, unveiled in 2024, delineates its targets and pathways for green finance evolutionCentral to this strategy is a structured approach encapsulated in the “1+3+X” frameworkThis model affords enhanced support for the green low-carbon circular economy, aiming to shepherd more market players towards sustainable practices and make substantial contributions to regional economic transformation.

Breaking down this framework: the "1" signifies the publication of Nanjing Bank's green finance strategic plan; the "3" refers to operational strategies spanning the development of green finance, ESG risk management, and green operations; while the “X” encompasses a variety of specific actionable initiatives aimed at supporting the economy’s transition to low-carbon methodsThis multi-tiered confirmation ensures decisions cascade smoothly and effectively throughout the bank's operations.

To fortify its green finance strategy, Nanjing Bank has formed a dedicated Green Finance Development Committee at its senior management level, ensuring that decisions are implemented efficiently at every levelFurthermore, the bank has established a specialized green finance department within its corporate banking division, appointed green finance liaisons across various branches, and founded green branches, creating a comprehensive three-tiered linkage mechanism.

This systematic innovation initiative has led to an explosion in Nanjing Bank's green finance activitiesAs of the third quarter of 2024, the bank recorded a nearly 220% surge in the balance of green loans compared to pre-strategy implementation levelsAdditionally, it is noteworthy that the bank has supported 127 key projects, including solar power plants and smart grids, thereby realizing a genuine synergy between economic benefits and environmental stewardship.

Nanjing Bank's robust performance in the sphere of product innovation further cements its leadership role in green finance

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Among its recent successes is the launch of the province's first shipping transformation loan in 2024, providing significant support for green transitions in the shipping industryThe bank also introduced product carbon footprint-linked loans, directly tying interest rates to companies' carbon emissions performance to motivate proactive reduction in emissionsSuch breakthroughs cater to market demands for green financial solutions and offer novel perspectives on sustaining green finance initiatives.

By the end of 2024, the bank's green loan balance exceeded 220 billion RMB, vastly outpacing the industry averageThis financial reservoir primarily channels into critical projects related to clean energy and emission reductionsMoreover, Nanjing Bank actively contributes to the green bonds market, amassing tens of billions in underwriting green debt financing instruments, thus furnishing more businesses with cost-effective financing channels.

To quantify and assess the carbon performance of enterprises and projects more accurately, Nanjing Bank has independently developed a carbon accounting management platform tailored for financial institutionsThis platform adeptly calculates clients' greenhouse gas emissions arising from their operations, offering personalized emission reduction advice based on an analysis of industry-specific dataImportantly, the system employs a fully online deployment for carbon calculation, benchmarking, and utilization, greatly enhancing the bank's operational efficiency and service quality.

In its operational framework, Nanjing Bank integrates green practices into daily operations, formulating comprehensive green operational plans designed to advocate for low-carbon transitions across all branchesFor instance, the initiative to establish net-zero business points reflects the bank's commitment to optimization in energy management, progressively working towards achieving carbon neutrality in its operations

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In October 2024, the bank collaborated with Jiangning Development Zone, one of the first carbon peak pilot zones in the country, to launch the nation's premier net-zero business point.

These strategic measures not only underscore Nanjing Bank's superior capabilities in product innovation but also highlight its core competitive strengths in effectively translating innovative outcomes into tangible results.

As Nanjing Bank looks to the future, its continued commitment to green finance practice sets a benchmark for the industry while ensuring high-quality business growth for the institution itselfIn terms of transparency and communication, the bank actively shares its latest advancements and future plans in green finance, thereby fostering greater understanding and support among various stakeholders regarding its operational practices.

The influence of Nanjing Bank’s green finance market continues to expandInvited to collaborate on the "ESG Investment Development Report (2024)" spearheaded by the Chinese Academy of Social Sciences, the bank’s contributions focus on trends in ESG investments within China and their ripple effects on the capital marketsThe participation not only enhances the bank's brand image but significantly contributes to the dissemination of ESG ideology across the country.

Recently, during the “2024 Corporate Excellence Practices” event organized by Xinhua News Agency, Nanjing Bank's exemplary practices in green finance earned it the award for "Model of Financial Services for New Quality Productivity in 2024." This recognition is a culmination of multiple accolades garnered since 2024, such as “Best Green Finance Practices of 2024” by GF60 and “Outstanding Green Finance Case” from Xinhua's Credit Jinlan Cup.

As it marches ahead, Nanjing Bank remains resolute in its green development philosophy, vowing to enhance its support for green finance and comprehensively implement various initiatives encapsulated in the “Green Finance Grand Article.” The bank is committed to being a leader in driving green finance developments, contributing its strength toward the sustainable evolution of the economy and society.

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