Leveraging ESG Practices to Empower Green Industries: Hengfeng Bank's FirstUS Project Loan Lands in Shandong

With the in-depth implementation of the "dual carbon" strategy and the continuous advancement of the construction of a green and lowcarbon high-quality development pilot area in Shandong Province, green finance has become an important means to promote the formation and development of new productive forces. Hengfeng Bank set its sights on the green development track, actively layouts green projects, and recently, Hengfeng Bank's Binzhou Branch has successfully landed the bank's first CC (Carbon Capture, Utilization, and Storage) project loan, promoting the deep integration of green credit with the green industry. This is not only a concrete practice of implementingG (Environment, Social, and Governance) environmental responsibility but also an important measure to promote the low-carbon upgrading of the industry through financial empowerment.

CCUS refers the process of separating carbon dioxide from industrial processing, energy utilization, or the atmosphere, directly utilizing it or injecting it into the stratum to achieve permanent carbon dioxide emission reduction With the proposal of the "dual carbon" goal and the continuous advancement of carbon reduction work, China is transitioning from dual control of energy consumption to dual control of carbon emissions and. Carrying out major technological innovation in the full process of carbon dioxide capture, transportation, utilization, and geological storage, and carrying out large-scale industrial CCUS technology demonstration can provide important support for the realization of carbon reduction goals and have significant implications for serving the national strategy and the green and low-carbon development of the economy and society. Binzhou Zhongyu Food Co., Ltd. has the longest and most complete wheat industry chain in China and has created the "Zhongyu Model" of "three industries, green cycle" for the first time in the country. This year, the enterprise plans to use CCUS technology to build the Zhongyu Industrial Integration Development Demonstration Park Carbonioxide Comprehensive Recovery and Utilization Project. Through the low-temperature distillation process, carbon dioxide generated in the alcohol production process is extracted and continuously recycled in the new production process. the project is completed, it is expected to achieve an annual recovery of 50,000 tons of carbon dioxide, save 20,000 tons of coal, and reduce carbon emissions by 13,600 tons. This project will also drive the green extension of the industrial chain and achieve synergistic effects of saving and emission reduction simultaneously. After learning about the construction plan, ecological benefits, and financing needs of the project, Hengfeng Bank Binzhou Branch conducted a metic project evaluation, tailored a credit scheme, and successfully obtained a special credit approval for the enterprise. To encourage enterprises to reduce carbon and increase efficiency, Hengfeng Bank broke the interest rate limit, linked the interest rate with the relevant indicators in the "Enterprise Carbon Credit Report" issued by Shandong Province Credit Co., Ltd., integrated the of sustainable development with the enterprise's CCUS project, saved financing costs for the enterprise, and supported the enterprise's green and low-carbon sustainable development. With the of the project construction, Binzhou Branch has recently granted the bank's first sustainable development linked loan for CCUS projects, amounting to 26 million yuan. This another practice of Hengfeng Bank's exploration of financial empowerment for green development. In recent years, Hengfeng Bank has continuously deepened the innovation and of green finance, focusing on energy conservation, pollution reduction, carbon reduction, and green expansion, striving to improve the product system, optimize service models, actively integrate into local industrial chains green transformation, and increase financial services and support. As of the end of June this year, the bank's green financial loans have increased by 28.17% to the beginning of the year, taking practical actions to promote the deep integration of green credit with the green industry, help build a sustainable development ecology under the guidance of ESG, contribute to the green and low-carbon high-quality development of the economy and society.