First Nature-Based Commercial Loan in China and First ESG-Linked Loan in Inner Mongolia

2024-07-03 14:30:14

Recently, China Shengmu Organic Dairy Co., Ltd. (hereinafter referred to as "China Shengmu") partnered with the Bank of China to successfully issue the first nature-based commercial loan in China and the first ESG (Environmental, Social, and Governance) linked loan in Inner Mongolia. The uniqueness of this loan lies in its direct linkage between the loan interest rate and the company’s ESG performance targets. This innovative structure not only encourages internal focus on ESG goals within the company, but also provides financial institutions with a new tool for credit risk management.

China Shengmu actively responds to national green development policies, achieving deep integration between finance and environmental protection. The loan was evaluated and certified by the Equator Environmental Evaluation Co., Ltd., which provided the certification services for this sustainable development-linked loan. This innovative model will further promote China Shengmu’s investment in environmental protection, social responsibility, and corporate governance, guiding financial resources to more precisely target green industries and supporting the green transformation of the economy.

China Shengmu is proactively advancing its transition to the new natural economy model. In 2021, China Shengmu’s initiative "Desert Organic Milk: Transforming the ‘Yellow Desert’ into an ‘Oasis Bank’" won the first "Golden Key – China Action for SDGs" New Natural Economy Group Championship. The successful issuance of this ESG-linked loan marks an important step for China Shengmu in the field of green finance. China Shengmu will continue to uphold the concept of green development and further advance its transition to the new natural economy model, driving sustainable development within the industry.

China Shengmu will continue to follow its organic and green development path, adhere to the harmonious coexistence of humans and nature, and build a new natural economy business model centered on "nature benefiting, business for good." The company remains committed to working tirelessly to create a better future for all stakeholders.