CHINA: RENEWABLE ENERGY AND BATTERY STORAGE PROMOTION PROJECT ENVIRONMENTAL and SOCIAL COMMITMENT PLAN (ESCP) Huaxia Bank April 2019 1 CHINA RENEWABLE ENERGY AND BATTERY STORAGE PROMOTION PROJECT ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) Huaxia Bank China Renewable Energy and Battery Storage Promotion Project Environmental and Social Commitment Plan 1. Huaxia Bank is planning to implement the China Renewable Energy and Battery Storage Promotion Project (the Project). The Ministry of Finance, National Development and Reform Commission and National Energy Administration will provide policy guidance for the Project. The World Bank has agreed to provide financing, implementation support and monitoring for the Project. 2. Huaxia Bank will implement measures and actions so that the Project is implemented in accordance with the World Bank Environmental and Social Standards (ESSs). This Environmental and Social Commitment Plan (ESCP) sets out a summary of the material measures and actions. 3. Where the ESCP refers to specific plans, whether they have already been prepared or are to be developed, the ESCP requires compliance with all mandatory provisions of such plans. In particular, the ESCP requires compliance with the mandatory measures and actions set out in Environmental and Social Management System (ESMS) and relevant framework and procedures that are identified in the ESCP, for example, the Environmental and Social Impact Assessment (ESIA), Resettlement Framework (RF), Ethnic Minority Development Framework (EMDF), and Stakeholder Engagement Plan (SEP). WORKING DRA FT 4. The table below summarizes the material measures and actions that are required as well as the timing of the material measures and actions. Huaxia Bank is responsible for compliance with all requirements of the ESCP even when implementation of specific measures and actions is conducted by the Ministry, agency or unit referenced in 1. above. 5. Implementation of the material measures and actions set out in this ESCP will be monitored and reported to the World Bank by Huaxia Bank as required by the ESCP and the conditions of the legal agreement, and the World Bank will monitor and assess progress and completion of the material measures and actions throughout implementation of the Project. 6. As agreed by the World Bank and Huaxia Bank, this ESCP may be revised from time to time during Project implementation, to reflect adaptive management of Project changes and unforeseen circumstances or in response to assessment of Project performance conducted under the ESCP itself. In such circumstances, Huaxia Bank will agree to the changes with the World Bank and will update the ESCP to reflect such changes. Agreement on changes to the ESCP will be documented through the exchange of letters signed between the World Bank and the Huaxia Bank. The Huaxia Bank will promptly disclose the updated ESCP. Depending on the project, the ESCP may also specify the funding necessary for completion of a measure or action. 2|Page CHINA RENEWABLE ENERGY AND BATTERY STORAGE PROMOTION PROJECT ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) 7. Where Project changes, unforeseen circumstances, or Project performance result in changes to the risks and impacts during Project implementation, the Huaxia Bank shall provide additional funds, if needed, to implement actions and measures to address such risks and impacts. WORKING DRA FT 3|Page CHINA RENEWABLE ENERGY AND BATTERY STORAGE PROMOTION PROJECT ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) CHINA: RENEWABLE ENERGY AND BATTERY STORAGE PROJECT ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN 03/28/2019 Summary of the Material Measures and Actions to Mitigate Timeframe Responsibility / Date of Completion the Project’s Potential Environmental and Social Risks and Authority and Impacts Resources/Fundin g Committed ESCP Monitoring and Reporting Prepare and submit environmental and social monitoring Annually throughout Green Finance Center June 2025 reports that show status of compliance with the ESMS and the project life of Huaxia Bank ESCP. Huaxia Bank will immediately notify the World Bank of any Immediately after Green Finance Center June 2025 environmental and social accidents/incidents following the safeguards of Huaxia Bank World Bank requirements, as specified in the Environmental incidents/accidents and Social Incident Response Toolkit (ESIRT). HXB shall keep the World Bank timely informed of the Once any high-risk Green Finance Center June 2025 WORKING DRA FT increase of environmental and social risks of subprojects and subproject(s) is of Huaxia Bank obtain the prior approval of the World Bank at the risk identified and to be screening stage in case any high-risk subproject is to be funded by the Project funded under the project. Meanwhile, the World Bank will upgrade the overall project risk level to “High� and the ESF requirements applicable to high-risk projects shall be implemented. SUMMARY ASSESSMENT ESS 1: ASSESSMENT AND MANAGEMENT OF ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS 1.1 Huaxia Bank will establish and maintain the Environmental By project approval Green Finance Center June 2025 and Social Management System (ESMS) for the Project and maintained of Huaxia Bank throughout the life of the Project, which will be applied to all throughout the sub-borrowers under the Project. project life 4|Page CHINA RENEWABLE ENERGY AND BATTERY STORAGE PROMOTION PROJECT ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) 1.2 Huaxia Bank will ensure proper institutional arrangement for By project approval Huaxia Bank By project approval implementation of ESMS, which includes (i) assigning a senior and maintained manager in charge of environmental and social risk throughout the management for the Project; (ii) recruiting at least one directly project life employed environmental and social risk management specialist at Green Financing Center to manage project-related environmental and social risks during implementation; (iii) hiring at least two qualified external environmental and social experts with at least 10 years of relevant experience; and (iv) carry out staff capacity training among sub-project management teams in branch offices. 1.3 Huaxia Bank will ensure preliminary environmental and social Prior to Sub-branches, June 2025 risk screening will be carried out for all potential sub-projects, sub-projects lending Green Finance Center in order to screen against exclusions in ESMS and the legal investigation of Huaxia Bank agreement and identify environmental and social risks and impacts. 1.4 The preliminary environmental and social risks screening of Prior to sub-projects Sub-branches, June 2025 subprojects should be sent to the World Bank for prior loan approval Green Finance Center approval until HXB has demonstrated the capacity to screen WORKING DRA FT of Huaxia Bank adequately on its own. 1.5 Huaxia Bank will ensure the compliance of environmental and Prior to sub-projects Sub-branches, June 2025 social impacts assessment for all sub-projects according to loan approval Green Finance Center ESMS. Appropriate safeguards instruments will be included as of Huaxia Bank part of loan application package to be reviewed by Huaxia Bank Green Financing Center and the World Bank following ESMS requirements. 1.6 All sub-projects with low environmental and social risks Prior to sub-projects Sub-branches, June 2025 following ESMS, will be implemented in compliance with loan approval Green Finance Center national laws and regulations and obtain all approvals and of Huaxia Bank permits from different governmental agencies if applicable. 5|Page CHINA RENEWABLE ENERGY AND BATTERY STORAGE PROMOTION PROJECT ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) 1.7 For the first sub-project with Substantial, HXB will send the Prior to sub-projects Sub-branches, June 2025 environmental and social safeguards document package to the loan approval Green Finance Center World Bank for prior review and approval. The Bank will of Huaxia Bank retain the right of prior review and clearance of subprojects with further Substantial risk subprojects subject to HXB’s demonstration of its capacity to manage safeguard issues on its own. ESS 2: LABOR AND WORKING CONDITIONS 2.1 Huaxia Bank maintains staff management procedures Throughout project Human Resource June 2025 consistent with national law and ESS2. life Dept. of Huaxia Bank 2.2 Huaxia Bank will ensure incorporation of labor management At loan agreement Sub-branches, June 2025 requirements consistent with national law and ESS2 in loan signing stage and Green Finance Center agreements for sub-projects. throughout sub- of Huaxia Bank project implementation process ESS 3: RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT 3.1 Huaxia Bank will ensure incorporation of pollution control At loan agreement Sub-branches, June 2025 compliance requirements in loan agreements for sub- signing stage and Green Finance Center WORKING DRA FT projects, i.e. compliance with applicable emission standards throughout sub- of Huaxia Bank and mitigation measures as developed in relevant safeguards project documents. implementation process ESS 4: COMMUNITY HEALTH AND SAFETY 4.1 Huaxia Bank will ensure sub-projects meet any applicable Prior to sub-projects Sub-branches, June 2025 safety assessment requirements in compliance with national loan approval Green Finance Center laws/regulations requirements at loan approval stage. of Huaxia Bank ESS 5: LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT 6|Page CHINA RENEWABLE ENERGY AND BATTERY STORAGE PROMOTION PROJECT ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) 5.1 Huaxia Bank will ensure that all sub-projects with potential Prior to sub-projects Sub-branches, June 2025 land acquisition and resettlement will follow the provision of lending investigation Green Finance Center RF adopted as part of ESMS. Based on preliminary of Huaxia Bank environmental and social risk screening, for those sub- projects with minor land acquisition impacts (less than 50 mu (3.3 ha) or with less than 5 households involved in relocation) they need to be in compliance with national laws and regulations by obtaining relevant land acquisition approval and making proper compensations with affected people and communities 5.2 For those sub-projects with moderate to significant Prior to loan Sub-borrowers, June 2025 environmental and social impacts with more than 50 mu (3.3 approval Green Finance Center ha) of land acquisition or more than 5 households’ relocation, of Huaxia Bank individual resettlement plans will be prepared by sub- borrowers according to RF. The completed resettlement plans will be included as part of loan application package to be reviewed by Huaxia Bank Green Financing Center and the WORKING DRA FT World Bank following the ESMS requirements. ESS 6: BIODIVERSITY CONSERVATION AND SUSTAINABLE MANAGEMENT OF LIVING NATURAL RESOURCES 6.1 If any activity would bring significant impacts on natural Prior to sub-projects Sub-borrowers, June 2025 habitats as defined by ESS6 and ESS9, then HXB would rate the loan approval Green Finance Center subproject as Substantial risk and apply the requirements of of Huaxia Bank ESS6. No subproject will be financed if identified with direct or indirect (e.g. through supply chains) impacts on critical natural habitats. ESS 7: INDIGENOUS PEOPLES/SUB-SAHARAN AFRICAN HISTORICALLY UNDERSERVED TRADITIONAL LOCAL COMMUNITIES 7.1 Huaxia Bank will ensure that all sub-projects with potential Prior to sub-projects Sub-branches, June 2025 negative impacts on ethnic concentrated communities will lending Green Finance Center follow the provision of EMDF adopted as part of ESMS. Based investigation. of Huaxia Bank on preliminary environmental and social risk screening, Huaxia Bank will determine if proposed sub-project will have negative impacts on ethnic minority communities. 7|Page CHINA RENEWABLE ENERGY AND BATTERY STORAGE PROMOTION PROJECT ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) 7.2 For those sub-projects which have negative impacts on ethnic Prior to sub-projects Sub-borrowers, June 2025 minority communities, based on provisions of EMDF, loan approval Green Finance Center individual EMDP will be prepared based on extensive of Huaxia Bank consultations with affected individuals and communities by sub-project sponsor and sub-project management teams from Huaxia Bank. The completed EMDP will be included as part of loan application package to be reviewed by Huaxia Bank Green Financing Center. ESS 8: CULTURAL HERITAGE 8.1 Huaxia Bank requires compliance with chance-finds At loan agreement Green Finance Center June 2025 procedures by sub-projects. signing stage and of Huaxia Bank throughout sub- project implementation process 8.2 For any subprojects screened for substantial risks and impacts At loan agreement Green Finance Center June 2025 on cultural heritage a cultural heritage management plan will signing stage and of Huaxia Bank be developed to stipulate relevant mitigation. throughout sub- project WORKING DRA FT implementation process ESS 9: FINANCIAL INTERMEDIARIES 9.1 Huaxia Bank will establish and maintain the Environmental By project approval Green Finance Center By project approval and and Social Management System (ESMS) for the Project and maintained of Huaxia Bank maintained throughout the throughout the life of the Project, which will be applied to all throughout the project life sub-borrowers under the Project. project life 8|Page CHINA RENEWABLE ENERGY AND BATTERY STORAGE PROMOTION PROJECT ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) 9.2 Huaxia Bank will ensure proper institutional arrangement as By project approval Huaxia Bank By project approval and specified in the ESMS, which includes (i) assigning a senior and maintained maintained throughout the manager in charge of environmental and social risk throughout the project life management for the Project; (ii) recruiting at least one directly project life employed environmental and social risk management specialist at Green Financing Center to manage project-related environmental and social risks during implementation; (iii) hiring at least two qualified external environmental and social experts with at least 10 years of relevant experience; and (iv) carry out staff capacity training among sub-project management teams in branch offices. ESS 10: STAKEHOLDER ENGAGEMENT AND INFORMATION DISCLOSURE 10.1 Disclose the ESMS on Huaxia Bank’s website and permits the By project approval Green Finance Center June 2019 Bank to disclose on the Bank’s external website. of Huaxia Bank 10.2 Disclose safeguards documents (ESIAs, RAPs, EMDPs, etc) for Prior to sub-projects Green Finance Center June 2025 sub-projects classified as substantial risk on Huaxia Bank’s loan approval of Huaxia Bank website and permits the Bank to disclose on the Bank’s external website. 10.3 Prepare and disclose a Stakeholder Engagement Plan (SEP) on By project approval Green Finance Center June 2019 WORKING DRA FT Huaxia Bank’s website and permits the Bank to disclose on the of Huaxia Bank Bank’s external website. 10.4 For those sub-projects with moderate and substantial Prior to sub- Sub-borrowers, June 2025 environment and social impacts, stakeholder identification projects loan Green Finance Center and engagement will be carried out throughout sub-project approval and of Huaxia Bank preparation and implementation. throughout the sub- project lifecycle 10.5 Develop and implement the arrangements for the grievance By project approval Green Finance Center June 2025 mechanism. of Huaxia Bank Capacity Support Specify Training to be provided Specify Targeted Groups and Specify Training Completed Timeframe for Delivery 9|Page CHINA RENEWABLE ENERGY AND BATTERY STORAGE PROMOTION PROJECT ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) Training on national laws and regulations on HXB senior management, environmental and social risks and impacts management; headquarter units related to green HXB environmental and social management system; financing review/approval, prior World Bank ESF; ESMS of the World Bank project. to loan effectiveness and repeated as necessary during implementation Training on detailed requirements and procedures of HXB local branches involved, HXB ESMS; key requirements of World Bank ESSs; Project Green Financing Center, external monitoring and reporting requirements. environmental and social experts prior to loan effectiveness and repeated as necessary during implementation WORKING DRA FT 10 | P a g e