On behalf of eight Chinese environmental NGOs, Mr. Yu Xiaogang, Director of Green Watershed, announced the Green Banking Innovation Award in on July 26th. China Industrial Bank Co. Ltd. received this award at the Best China Banks Ceremony organized by the Economic Observer weekly in Shanghai.

The Green Banking Innovation Award is the first-ever award in China specifically about green banking and sustainable finance, which will promote banks and other financial institutions to consider their roles in environmental protection. This award was nominated and voted by eight renowned NGOs: Green Watershed, Friend of Nature, Institute of Public & Environmental Affairs, Green Earth Volunteer, Global Environmental Institute, Civil Society Watch, China Development Brief and Green Volunteer League of Chongqing. SynTao Co. Ltd., a leading consulting firm in on corporate social responsibility, acted as an advisor to this award.

In his speech, Mr. Yu Xiaogang explained: “Green Banking is defined from two dimensions. Internally, a green bank often improves resource efficiency and encourages employees to participate in environmental activities. Externally and more importantly, it has to minimize indirect environmental impacts through financing activities, and explores new opportunities from environment-related business.” According to this definition, the jury committee, consisting of eight NGOs, developed an approach to assess the overall performance of nominated banks based on materials submitted by banks as well as public information.

China Industrial Bank got the highest score and won this award. This is a bank that promises to integrate social responsibility and sustainable development into its strategy, and has implemented numbers of activities. For instance, environmental performance has become a precondition for its business loans, and the bank will withdraw the money if any environmental violation is discovered. China Industrial Bank also collaborates with IFC on energy efficiency lending project that supports companies to improve energy efficiency and control carbon emission. With this, the bank was awarded by Financial Times in 2007 as runner up in “the Sustainable Deal of the Year”. In addition to that, China Industrial Bank is a member of UNEP FI and a signatory of CDP 6, and recently announced to adopt the Equator Principle.

It is a brand new experience for grassroots in to award a bank. This not only indicates Chinese NGOs are using more diversified approaches to advocate sustainable development, but highlights the efforts of Chinese banking sector on environment. Mr. Yu Xiaogang pointed out at the end of his speech, “This is a first but important try. To the winner, this award means both honors and responsibilities. We expect China Industrial Bank can continue its innovation and build up a model green bank in China.”

Organizers said they would continue to nominate and note Chinese green bank next year.