Transportation-Related Credit Policy of China Minsheng Bank

#Green Finance# #ESG Policy# #Credit Policy#

The transportation-related credit policy is one of the important elements of the Company's credit policies. Every year, the Company improves and updates the credit policy for the transport sector according to the latest situation both at home and  abroad and the orientation of national policies.

I.Background for the Policy

Transportation is the lifeblood of social development, and carbon emissions from the transportation industry account for 10% of China’s carbon emissions. In the Action Plan for Carbon Dioxide Peaking Before 2030, the State Council proposes to move faster to achieve green and low-carbon transportation. In the 14th Five-Year Development Plan for Green Transportation, the Ministry of Transport promotes environmental friendly infrastructure, clean and low-carbon transportation equipment and intensive and efficient transportation organizations.

II.Scope of the Policy

The transportation-related credit policy formulated by the Company covers railway transport (including railway project construction and transportation), water transport (including passenger transportation ports and cargo ports), traditional vehicles (including automobiles and parts manufacturing and automobile dealers), new energy vehicles (including vehicle and battery manufacturing and sales of relevant charging facilities), air transport industry (including air passenger and air cargo transportation), airports, roads (including road transportation, road transportation assistance, road

management and maintenance) and modern logistic and warehousing, as defined in the Industrial Classification for National Economic Activities (GB/T 4754-2017) issued by the National Bureau of Statistics.

III.Overall Credit Strategy

The Company has formulated transportation-related credit policy, which defines the overall strategies, access standards and key risk control points for key sectors including airports, ports, roads, railways, new energy vehicles, traditional vehicles, and air transport. The Company prefers to support sectors including railways, roads, ports, traditional vehicles and new energy vehicles.

IV.Prevention and Control of ESG Risks

The Company requires that the projects to be engaged shall meet the relevant national regulations and standards in terms of safety, energy conservation and environmental protection, complete with environmental protection and supervision system matching its scale, and have environment quality monitored on a regular basis. For example, warehousing and logistics projects shall not involve in logistics enterprises and  project financing of hazardous chemical.