Corporate credit linked with environmental efforts
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E-mail Xinhua, January 3, 2014
The Chinese government will use "environmental credits" to gauge companies' pollution control efforts and influence the treatment they get in various social aspects.
According to a trial guideline on corporate environmental credit evaluation, companies' performance in following environment-related rules and fulfilling their duties in environmental protection will be rated and the results released as references for public supervision and decision-making by financial institutions when granting loans.
The document was jointly released Thursday by the Ministry of Environmental Protection, the National Development and Reform Commission, the People's Bank of China and the China Banking Regulatory Commission.
Aimed at raising the cost for enterprises' environmental violations, the system will also guide related government departments, associations and unions to offer favorable treatment for companies with high environmental credit in administrative approval, procurement, financial support and certifications.
Meanwhile, those with low credit might face restraints or delays in these procedures.
According to the document, targets for the trial credit evaluation include companies in heavily polluting industries and those that have been punished for environmental pollution in the previous year.
