Shanghai Rural Commercial Bank Draws Financial Water To Develop "Oasis"

In September 2020, China proposed at the 75th session of the UN General Assembly that carbon dioxide emissions should reach the peak by 2030 and strive to achieve carbon neutrality by 2060. This is the first time that China has put forward the schedule of carbon neutral plan on a formal global occasion. At the two sessions held in March this year, "carbon peak, carbon neutral" was written into the government work report for the first time, which also put forward new goals and requirements for the development of green finance in China.

Green finance has become an important bridge and converter to realize "green water and green mountains" to "golden mountains and silver mountains". As a domestic financial institution, it always has a social responsibility and mission. As a local corporate bank in Shanghai, Shanghai Rural Commercial Bank actively practices the "two mountains theory" that "green waters and green mountains are golden mountains and silver mountains" and the "two city concept" of "people's city, people's city, people's city for people". Xu Li, chairman of the board of directors, said, "the whole bank should adhere to the road of ecological priority and green development, conscientiously implement the policy requirements of green credit, and focus on promoting green credit We will continue to explore the development and construction of color credit business in terms of financial promotion of green development, energy conservation and emission reduction Through the establishment of a professional green management team, in-depth investigation of industry segments, R & D and innovation of business models, and formulation of professional development policies, Shanghai Rural Commercial Bank has initially formed a green financial service mode of "whole industry chain, full life cycle and full product service". At the beginning of 2021, with the formulation of "Shanghai Rural Commercial Bank's green finance development strategy for 2021-2025", the bank will strive to form a green financial service mode with Shanghai's local characteristics and rural commercial characteristics through perfecting the system, strengthening product innovation, deepening regional integration, and strengthening the integration of science and technology, so as to further improve the accessibility and affordability of green financial services And sustainability.

Practicing green finance is a long-term companion

Since the establishment of the bank, Shanghai Rural Commercial Bank has actively implemented the national green development concept and sustainable development strategy, conscientiously implemented the deployment and requirements of the Party Central Committee and the State Council on the fight against pollution, and comprehensively promoted the construction of green finance. By the end of 2020, the balance of green credit of Shanghai rural commercial bank exceeded 6 billion yuan, all of which were directly or indirectly invested in green industries such as industrial energy and water saving, ecological agriculture, clean energy, waste treatment and pollution control.

"Accompany" is a key word for Shanghai Rural Commercial Bank to practice green finance. Among the "green" enterprises supported by the bank, many have been accompanied for many years. Ailang Technology Co., Ltd. (hereinafter referred to as "Elan technology") is one of the representative companies. This is a high-tech private enterprise integrating R & D, manufacturing, sales and after-sales service of wind turbine blade products. Its wind turbine blade products have been installed in more than 100 wind farms all over the country, contributing to the development of green environmental protection of wind power in China. As early as 2009, Shanghai Rural Commercial Bank noticed this "green" star, providing credit support for the start-up stage of ailang technology. For more than ten years, it has been a process of deepening mutual understanding and strengthening trust. From the 10 million yuan working capital loan initially cooperated in 2009 to nearly 1.8 billion yuan in various types of credit within the group, the services provided by Shanghai Rural Commercial Bank have covered many fields, such as daily settlement, RMB on and off balance sheet financing, international trade financing, etc. In 2019, Shanghai Rural Commercial Bank and ailang technology signed a strategic cooperation agreement, and established a long-term and stable strategic partnership based on the principle of "long-term cooperation, value creation and common development".

At present, among the nearly 500 "green" enterprises served by Shanghai Rural Commercial Bank, there are a considerable proportion of small and micro enterprises. I believe that with the company of the bank, more "green" stars like ailang will continue to shine and grow.

Practicing green finance is professional persistence

Serving "agriculture, rural areas and farmers" is the persistence and specialty of Shanghai Rural Commercial Bank in the period of rural credit. In the process of practicing green finance, on the one hand, Shanghai Rural Commercial Bank promotes the development of local green countryside, including supporting the construction of Chongming world-class ecological island, supporting the evaluation and promotion activities of Shanghai real estate high-quality agricultural products by Shanghai Agricultural and Rural Committee, issuing the first "brand loan" of high-quality real estate agricultural products in Shanghai, so as to promote the development of quality agriculture, green agriculture and strong brand agriculture This specialty and support will benefit more regions through local high-quality "three rural" customers, so that the financial strength can be extended.

Shanghai Nongle Biological Products Co., Ltd. (hereinafter referred to as "Nongle bio") is a high-tech enterprise designated by the state to engage in research and development and production of biological and environmental protection pesticides. It is also a designated cooperative enterprise of Luochuan County People's Government in the "double reduction project" (reducing the use of high concentration pesticides, using biological pesticides; reducing the use of chemical fertilizers, using organic fertilizers). In 2020, taking Luochuan County apple growers' purchase of green agricultural materials as an opportunity, Shanghai Rural Commercial Bank and Agrobiology cooperated to open up a series of new green financial models, such as agricultural financing, real-time payment and sales channel support. Nongle bio provides "double reduction" organic fertilizer package to apple growers in Luochuan, which can increase the output of apple per unit area and reduce the pollution of land on the premise that the cost of farmers' expenditure is not higher than that of common fertilizers and pesticides. Shanghai Rural Commercial Bank developed the "Nong · Xine loan" personal online loan product to help farmers apply for online credit loan. The loan was specially used to pay farmers to buy organic fertilizer packages and pay them to the account of Nongle biology in real time. By the end of 2020, the bank has provided more than 50 million yuan of financing funds for local fruit farmers under this mode, and has served nearly 200 fruit farmers in total. The bank plans to extend the model to other agricultural industry chains, further play the important role of production factors such as technology and data, deeply plough the industrial scene and financial demand in the vertical field of agriculture, assist enterprises to build green development industrial chain and value chain, promote farmers' income, improve the economic benefits of green agriculture, and let farmers better share the fruits of green agricultural development.

Practicing green finance is the integration of strategy

The Yangtze River Delta integration development is a national strategy. As the frontier demonstration area of national green and low-carbon construction and development, the Yangtze River Delta region has always been in the forefront of the country in terms of policy formulation and implementation effect. As a member of the Yangtze River Delta rural commercial bank, Shanghai rural commercial bank takes advantage of its geographical advantages, uses mode innovation and service innovation to help the Yangtze River Delta integration development, and at the same time, focuses on the regional green industry and supports enterprises to become bigger and stronger.

Pf new energy group (hereinafter referred to as "pf group") is a newly established energy development, investment and operation platform. Through the comprehensive utilization of photovoltaic, wind power and energy storage and other distributed energy, we provide green energy solutions for customers' low-carbon environmental protection logistics and storage facilities services, and develop third-party high-quality roof and affordable ground resources to achieve the goal of low-carbon environmental protection. Due to the fact that the enterprise has been established for less than one year, and the project distribution of distributed photovoltaic power station is scattered and the single volume is small, it is difficult to meet the approval requirements of traditional bank loans.

After repeated communication and in-depth investigation, in September 2020, Shanghai Rural Commercial Bank provided a batch landing mode for its projects in the Yangtze River Delta region, providing project credit of 111 million yuan to PF group, corresponding to 12 distributed photovoltaic power station projects in the Yangtze River Delta region. It is reported that the bank is the first bank to provide financing for distributed photovoltaic power plants under pf group, and the only bank to provide financing services for it in 2020. This cooperation not only reflects the development and innovation of Shanghai Rural Commercial Bank to support the Yangtze River Delta integration development strategy, but also reflects the firm determination of the bank to practice green finance.

In addition, in terms of assisting the national strategy of the new port area, Shanghai rural commercial bank takes advantage of its location advantages and actively creates a characteristic mode of financial service in the new area. Within five years from 2019, it will provide credit support of no less than 100 billion yuan to Lingang New Area, give priority to supporting aviation logistics, biomedicine, artificial intelligence, chip manufacturing and other key industries in the new area, and provide strong financial support for infrastructure construction, major project implementation and the development of mass Entrepreneurship and innovation enterprises in industrial finance. Relying on the location and ecological advantages of the new area, actively explore the construction of green financial service system.

Practicing green finance is a continuous breakthrough

While actively developing green credit, Shanghai Rural Commercial Bank has never stopped exploring green financial products. In 2019, the bank will sell the first counter green financial bond. In 2020, it will undertake the work of issuing green financial bonds over the counter of China Development Bank, sell the raised funds of green financial bonds for low-carbon green projects, mitigate and suppress climate change, and reduce pollutant emissions. In February 2021, in response to the implementation of the "carbon neutral" goal promoted by the state, Shanghai Rural Commercial Bank actively participated in the investment of 50 million yuan of the first batch of "carbon neutral" bonds issued by the state power investment group, and the bond raised funds were invested in wind power and photovoltaic power generation projects.

In March, Shanghai Rural Commercial Bank successfully completed the underwriting of the first "carbon neutral" special "bond link" green financial bond of China Development Bank in the inter-bank market and over-the-counter market. This issue of "carbon neutral" bonds is one of the green bonds with the largest amount of issuance in the market at present, which is used to help achieve the goal of "carbon peak" and "carbon neutral". It is the first "carbon neutral" bond in China to obtain the labeling certification of the international climate bond initiative. It has also been certified by a third-party certification agency and equator in China.

The national green development fund is a national government investment fund jointly initiated by the Ministry of finance, the Ministry of ecological environment and Shanghai Municipality. It aims to improve the investment channels of diversified ecological environment protection, support ecological civilization and green development with market mechanism, and promote the construction of beautiful China. Shanghai Rural Commercial Bank participated in the establishment of green fund in 2020, with a subscription amount of 1 billion yuan. During the operation and management period of the green fund, it will focus on the fields of pollution control, ecological restoration, land and space greening, energy conservation and utilization, green transportation and clean energy.

Practicing green finance is the background of development

With the formulation of the green finance development strategy of Shanghai Rural Commercial Bank from 2021 to 2025, the concept of green financial development has been formally integrated into the overall development strategy of Shanghai Rural Commercial Bank. In order to speed up the process of achieving the goal of carbon peak and carbon neutralization, Shanghai Rural Commercial Bank will take "three steps" in the future: the first step is to build and improve the internal green financial system, allocate special green low-carbon credit scale, strategic expenses, economic capital and incentive measures, so as to match the allocation of business resources with the demand of green investment and financing; the second step is to further explore new types of green financial system The role of financial technology in the field of green and low-carbon is to embed carbon emissions into the credit link; the third step is to create a mode of green finance to help social governance and energy transformation, to create green Inclusive Finance and low-carbon industrial chain finance with the bank's characteristics through the financial integration of social resources, and support Shanghai to accelerate the construction of zero carbon demonstration with "package" financial services Industrial Park and hydrogen energy demonstration city.

Standing at a new starting point and facing new opportunities, Xu Li, chairman of the board of Shanghai Rural Commercial Bank, said that green is the background color of the development of Shanghai Rural Commercial Bank. Shanghai Rural Commercial Bank will practice green finance, embody the inclusive characteristics, enable social governance to help people live a better life, and strive to become a regional unique green financial institution.