The People’s Bank of China (PBC)

Red LineText of policiesCommentsScore
Regulatory requirements
Ensure LegalityAll prospective clients must be in full compliance with all local, national and international norms, regulations, laws and conventions related to acquisition, harvesting, sourcing or use of land, concessions, forest products or production materials.PBC highlights the importance for all financial systems to promote guidelines regarding Green Credit, but they do not specify their Green Credit Policy publicly.not
No Corruption and Tax EvasionClients must not be involved in corruption nor establish ownership structures that are clearly meant to avoid the payment of taxes in the country where the production activities are taking place.Not covered in publicly available policies and documentation.not
Ensure ESIA for mills and plantationsProspective clients must provide evidence that they have completed and publicly disclosed, online, a full and comprehensive Environmental and Social Impact Assessment (ESIA) covering all direct and indirect impacts of their activities involving management of and sourcing from forests and plantations, their manufacturing facilities and their operation. Clients must demonstrate that all relevant stakeholders were properly consulted when conducting the assessment and that their concerns and rightful interests have been fully taken into account.Not covered in publicly available policies and documentation.not
Social requirements
Ensure FPICClients must demonstrate that proposed operations have obtained the free, prior and informed consent (FPIC) of all affected Indigenous peoples and communities with customary rights. This must include documentation of the FPIC procedures for identification, consultation and documentation of all affected communities, as well as the establishment of a dispute mechanisms for, and provision of remedy for, adverse impacts.Not covered in publicly available policies and documentation.not
Respect Human RightsClients must demonstrate that their operations respect human rights, as defined by the United Nations and other international bodies, throughout their own operations as well as within the companies from which they source or which they contract. Clients must respect all core conventions of the International Labour Organisation, including those on child labour, forced labour and debt bondage.Not covered in publicly available policies and documentation.not
Respect Indigenous rights and customary land use rightsClients must demonstrate that their operations fully respect Indigenous rights, as defined in the UNDRIP, as well as traditional rights, including land tenure and use rights of local communities.Not covered in publicly available policies and documentation.not
No forced resettlementClients must not cause resettlement of people who are dependent for their livelihoods on land affected by the client’s project, whether full or partial, permanent or temporary, physical or economical, without their Free, Prior and Informed Consent.Not covered in publicly available policies and documentation.not
Environmental Requirements
No forest degradation and deforestationClients must prove that their operations, or those of the companies from which they
source materials for their manufacturing process, do not involve activities that lead to:
● loss of endangered forests and high conservation value forests, ecosystems and habitats;
● conversion of natural forests or other high conservation value ecosystems into plantations for paper fibre;
● loss or degradation of high carbon stock forests;
● loss or degradation of regionally, nationally or internationally protected areas (UNESCO Natural World Heritage Sites, UNESCO Man and the Biosphere Reserves,
IUCN Protected Areas, Key Biodiversity Areas, and wetlands designated under the Ramsar Convention on Wetlands of International Importance);
● degradation of areas where forest restoration or threatened wildlife reintroduction is taking place;
● degradation of critical habitat for endangered and threatened specie
Not covered in publicly available policies and documentation.not
Protect endangered speciesClients must not harvest or trade in species that are protected under host country laws or regulations or listed on the IUCN Red List for endangered species, or allow this to take place as a result of their operations.Not covered in publicly available policies and documentation.not
No high-risk speciesClients must not introduce genetically modified species into the environment, or introduce or use invasive alien species, or allow this to take place as a result of their operations.Not covered in publicly available policies and documentation.not
No fireClients must not use fire for the conversion of land, or allow this to take place as a result of their operations. Exceptions can be made only for cases where there is a scientific consensus that fire is part of the natural dynamics of the ecosystem and where the use of fire is essential to maintain the ecosystem.Not covered in publicly available policies and documentation.not
Protect peatClients must not establish plantations on peatland, regardless of depth, nor degrade peatland, or allow this to take place as a result of their operations.Not covered in publicly available policies and documentation.not
No persistent pollutionTechnology used in mills must include at least secondary effluent treatment and must not emit persistent pollution to air or water, or cause lethal or chronic toxicity to aquatic species. No use of elemental chlorine bleaching. No use of hog fuel from logs that have been transported in salt water.Not covered in publicly available policies and documentation.not
Corporate association / scope of the policy
Corporate association / scope of the policyThe scope of a client’s responsibility includes the sourcing of forestry commodities from third parties that may be involved in activities listed in this list of Red Lines or the association through a holding to a parent, sister or subsidiary company which is active in the forestry sector and which is involved with such activities.Not covered in publicly available policies and documentation.not