CITIC Limited is committed to environmental protection and the efficient use of resources. We have adopted effective measures in the course of our business to minimise the impact of our operations on the environment. We have also made a commitment to improve our environmental practices and performance in order to meet changing needs in social development.
Our Green Initiatives
In response to China’s initiative to promote cooperation in the public service sector and the government, we have organised social capital (PPP) joint entities among our subsidiaries, such as CITIC Bank, CITIC Trust, CITIC Securities, CITIC Engineering Design and CITIC Environment. Through the provision of integrated service solutions, including consulting, designing and management, direct investment and financing, we are constructing and operating social and public products and services related to environmental protection that contribute to a “Beautiful China” and protection of the environment, regarding river control and sewage treatment.
Our subsidiaries in the financial sector continued to offer their green credit programme to resource-saving companies and environmentally-friendly industries in response to China’s green finance policy.
In the CITIC Bank Strategic Planning 2015-2017 initiative, CITIC Bank has specified that it will persist in supporting selected key sectors, including new economy industries and strategic new industries such as energy conservation and environmental protection, alternative energy, next-generation information technology, green materials, alternative-energy vehicles, biology and high-end equipment manufacturing.
Launch of a carbon-related financial business
In 2015, CITIC Bank studied national policies on climate change and supported research carried out by tertiary institutions and other research institutes in areas such as carbon exchange, the “sponge city” concept and sustainable development. The result was the Analysis on the Development of Carbon Exchange in China report, which discussed national policies concerning climate change and the market demand for related financial product solutions.
Exploring the green credit sector
Formulating a new credit policy. In 2015, CITIC Bank has set out green credit principles and requirements for the equipment manufacturing, petrochemical, cement production. CITIC Bank implemented new credit approval process. During the pre-loan due diligence stage, CITIC Bank will focus on compliance, land use, environmental impacts related to project loan applications. During the examination and approval stage, an environmental veto system will check the environmental compliance of the potential corporate borrower as a pre-condition for granting credit. In support of this process are two new policies — the Four Reasons for Rejecting Loan Applications Note 1 and Six Requisite Conditions for Project Financing Note 2. As at the end of 2015, green loans by CITIC Bank were mainly granted to projects in green transportation, recyclable energy and clean energy, energy conservation and environment protection service, waste treatment and pollution prevention.
CITIC Trust provided financial support of over RMB100 million as well as other integrated financial services to environmental technology companies, such as Beijing Bairui Shengtian, Beijing Chinsuny Environment Protection Tech Company and Qinghai Huaheng New Energy. CITIC Trust has also taken steps to minimise its own carbon footprint and carbon emissions by promoting a green office, energy conservation and emissions reductions among its staff.
- (1) Rejected projects include those failing to obtain the approval of competent environmental authorities; new construction projects under the restricted category of national industrial policies and projects under the elimination category; high-pollution projects subject to “regional approval restrictions” and “river region approval restrictions” under the classification of the Ministry of Environmental Protection; and companies and projects subject to non-compliance with environmental regulations.
- (2) Credit will not be granted to companies that fail to comply with industry policies and market entry thresholds; project approval, vetting or filing procedures; land use pre-approval; environmental impact assessments; energy conservation assessment vetting and credit; and safety and urban planning requirements.
Resources and Energy
As an integrated supplier of strategic natural resources and major commodities, CITIC Resources applies the latest technologies in an effort to protect the natural environment of its operating areas and the local communities.
Karazhanbas Oilfield turns scrap metal into cash
The Karazhanbas Oilfield in Kazakhstan has been in operation since 1974. Over the years, it has amassed a large quantity of abandoned facilities, vehicles and pipe materials in the plant zone with the retirement of obsolete production equipment and the introduction of technology and process upgrades. This dumping has resulted in considerable contamination and damage of the surrounding ecology. In October 2014, Karazhanbas Oilfield established a work group to clean up scrap metals, which have been classified into more than ten categories. Independent contractors hired by the Oilfield have since sold off the scrap metals, including 15,600 tonnes of scrap metals from November 2014 to December 2015. In the meantime, Karazhanbas Oilfield has built a new scrap metals stockpile in compliance with the environmental authorities of Kazakhstan. From May 2015 when this new stockpile began operating to December 2015, over 2,000 tonnes of scrap metal has been stored.
CITIC Mining International
In 2015, CITIC Mining International reported positive results from its environmental management system and full compliance with government regulations. CITIC Mining International is now upgrading its environmental management system (EMS) on an ongoing basis to ensure Sino-iron project to fully comply with the latest ISO14001 environmental management system standards published in 2015.
As the first company in the resource sector joining the Pilbara Mesquite Management Committee (PMMC) in 2009, CITIC Mining International has been actively involved in the formulation, examination and implementation of a strategic prosopis treatment. Thereafter, seven companies engaged in the resource business and cattle rearers in CITIC Mining International’s Mardie Station have also joined the collective effort to fight prosopis. PMMC was awarded the Golden Gecko Award 2015 for its work in wiping out prosopis, in which CITIC Mining International played a key role.
In 2015, subsidiaries of Sunburst Energy, including Jiangsu Lidian Group and Shandong Xin Julong Company, adopted the following measures in environmental protection, energy conservation and emissions reduction:
CITIC Heavy Industries
CITIC Heavy Industries fully complies with national laws and regulations pertaining to environmental protection and environmental standards. The handling of waste water, polluted air, noise and solid wastes and the related facilities have been operating normally.
CITIC Dicastal commenced the following projects in environmental protection and energy conservation/discharge reduction in 2015:
CITIC Pacific Special Steel
CITIC Pacific Special Steel puts a strong emphasis on the processing of gas, waste water and particles, and the recovery of solid waste. Energy consumption in the production process is lowered through the recycling of gas, steam and thermal air. Major environmental initiatives in 2015 included the following:
CITIC Environment: an energy conservation and environment specialist with a mission
As a specialised platform of CITIC Limited for energy conservation and environmental protection, CITIC Environment is dedicated to the advancement of energy-conservation and environmental-protection technologies and related industrial upgrades. CITIC Environment has a strong focus on waste water treatment, solid waste processing, energy conservation and discharge reduction, and recovery of resources. It has implemented several key projects with investment modes including BOT (Build-Operation-Transfer), EPC (Engineering, Procurement and Contracting) and PPP (Public-Private-Partnership). Today, the company has three major strategic business segments: water treatment, solid waste disposal and energy conservation services. The company creates values for shareholders.
In April 2015. CITIC Environment completed the transaction of equity acquisition in Singapore-listed United Envirotech Ltd., and renamed it as CITIC Envirotech Ltd., making CITIC Environment a flagship platform for CITIC Limited in water supply and sewage treatment.