Recently, the Postal Savings Bank of China (PSBC) innovatively launched a “ESG loan plus insurance” financial service model, and conducted China’s first “ESG loan plus insurance” business in Hechi, Guangxi.

The nonferrous metal industry is a pillar industry in Guangxi Zhuang autonomous region. The traditional way of nonferrous metal production usually consumes a large amount of energy. Therefore, how to reduce carbon emissions in the industry and promote the low-carbon transition has become a pressing problem for the region. During its research tour, PSBC Hechi Branch learned that a nonferrous metal company had begun to carry out carbon footprint measurement since 2019, and the company hoped to improve its sustainability by optimizing its production technology. With this information, PSBC Guangxi Branch plans to use ESG financial products to guide and motivate the company to embark on its low-carbon transition and upgrading.

Under the guidance of the People’s Bank of China Guangxi Zhuang Autonomous Region Branch, the National Financial Regulatory Administration Guangxi Office, and the Local Financial Regulatory Administration of Guangxi Zhuang Autonomous Region, PSBC Guangxi Branch, based on the industrial characteristics of nonferrous metal smelting enterprises, has innovatively launched an “ESG loan plus insurance” financial service model by establishing an enterprise ESG rating system that applies environmental (E), social (S) and corporate governance (G) in the credit process and introducing the environmental assessment system of insurance companies and the third-party green assessment system. While providing financial services for enterprises, this financial service model can facilitate them to fulfill their environmental and social responsibilities, encourage them to improve ESG management, and further help them enhance their sustainability and ESG risk management.