Cargill completed its first RMB equivalent ESG deposit transaction in China

Cargill, an American agricultural giant, has made frequent moves in China recently. Following the concentrated opening of four factories from June 14th to 15th, Cargill recently completed a € 350 million ESG deposit business with a major state-owned bank in China, in order to promote the development of green industries and achieve China's sustainable goals. This is Cargill's first ESG deposit business in China. Cargill will also collaborate with more Chinese financial institutions and is expected to complete an ESG deposit scale equivalent to approximately 3 billion yuan by 2023.
In the first ESG deposit transaction implemented by Cargill, the bank promised to invest all the deposits in projects that comply with the relevant requirements of the "Green Industry Guidance Catalogue (2019 Edition)" jointly issued by seven ministries including the National Development and Reform Commission and the People's Bank of China, including energy conservation and environmental protection, clean production, clean energy, water resource management, ecological environment, and infrastructure green upgrading Green services and other related industries with sustainable development benefits.
Guan Huili, president of Cargill China, said that Cargill has been rooted in China for more than 50 years and is committed to working with all parties to explore innovative technologies and models to support the achievement of China's Sustainable Development Goals. We believe that through innovative ESG deposit solutions, more social resources can be leveraged to invest in green industries, enhancing the overall society's awareness of corporate responsibility and sustainable development, and promoting a virtuous cycle of economy, society, and environment
It is understood that as a financial product that can promote the use of funds in the ESG field, ESG deposits are an innovative enterprise deposit solution. In this scheme, the bank will use the raised depositor's funds for eligible "green" assets, socially responsible assets and sustainable linked assets to help depositors give deeper support to the ESG field and make contributions to improving the environment, solving social problems and implementing the Sustainable Development Goals.
Cargill stated that sustainable development is an important value proposition. Cargill has set global carbon reduction targets and plans to reduce greenhouse gas emissions from Scope 1 and Scope 2 by 10% (based on 2017) by 2025. Since 2021, Cargill has adopted green energy sources such as photovoltaic and wind power in multiple factories in China, with an estimated annual reduction of nearly 60000 tons of greenhouse gas emissions.
It is reported that Cargill Global invests 2% of its Earnings before taxes in corporate responsibility every year, and works with many parties to promote environmental protection, environmental education, rural revitalization and sustainable agriculture. In China, Cargill has provided free training to 3.5 million farmers, covering areas such as aquaculture, planting, warehousing, and sustainable agricultural practices. Prior to this, on July 18th, Cargill China and the Rural Economic Research Center of the Ministry of Agriculture and Rural Affairs officially launched a one-year pilot project on conservation tillage/renewable agriculture, aiming to explore effective mechanisms to promote the popularization of renewable agriculture in corn cultivation, while protecting black soil and saving water resources, increasing farmers' income and assisting rural revitalization.