ESG is in high alignment with China's "dual carbon" goals and has become an important indicator for measuring the sustainable and high-quality development of enterprises in China. Adopting a top-down approach, the Chinese central government has codified the importance of green and sustainable development in policy papers and Five-Year Plans. Financial institutions, in particular commercial banks, play a pivotal role in mobilizing resources, and their allocation in green activities and projects can help to accelerate the nation's green economy transformation and support the development of ecological civilization.

Accordingly, China market has seen various ESG banking products including green deposits, green credit, green bonds and green derivatives, along with the development of unified standards and information disclosure systems. This article is the first of our series of ESG banking products in China, discussing the issues surrounding the design, issuance, and management of green deposits.