Green Finance: A New Field Of China's Merchant Banking

"Green Finance", also known as "Sustainable Finance", is becoming a going trend with the growing concern on environmental protection and climate changes. It is not only a prerequisite for the sustainable development of society, economy, and environment, but also a natural outgrowth of sustainable financial development.The paper gives a systematic summary of theories and practices in the Green Finance. Based on theories in strategic corporate management and marketing, it explores the strategies for developing green finance in China's merchant banks and addresses some specific issues in the green financial marketing. The findings of this paper are as follows:1. Compared with traditional finance, green finance takes into account social responsibility and environmental protection. Therefore, it better prepares financial institutions for the risks and opportunities in their surroundings, and enables them to cope with the relationship between obligation and profits. This paper affords a rather practical perspective on the promises and threats lying before China's merchant banks, and their respective strengths and weaknesses. Some suggestions are offered for the development of green finance.2. With a view to the unpreparedness in developing green finance by China's merchant banks, this paper proposes a series of strategies, including substantiating the corporate outlook and commitment with green finance, improving corporate management, formulating operational policies, building special task forces, optimizing operations, reinforcing marketing, publishing reports on environmental efficacy and social obligation.3. The development of green finance in China's merchant banks entails the establishment of a corresponding marketing system. The paper also attempts some views on the choice of the end markets, market orientation, products reserves and development, as well as business models. The highlights of the paper are mainly two-fold:First, it elevates the strategic position of green finance to a level of establishing the corporate values and culture in financial organizations. Accordingly, the paper recommends "substantiating the corporate outlook and commitment with a sustainable development view", and "publishing reports on environmental efficacy and social obligation".Second, it offers specific and workable measures as to how to formulate operational polices of green finance, incorporate environmental considerations into the operation, set up an environmental risk management system, as well as establishing an operational model of green finance.