A Chinese bank that has pioneered lending for energy conservation, emissions reduction and other green projects was named Asia's sustainable bank of the year last night at the 2009 FT Sustainable Banking Awards in London.

Industrial Bank of China, a medium-sized lender, is the first Chinese institution to have committed itself to international sustainability standards such as the Equator Principles for project finance.

With the government in Beijing promising tough action to mitigate the environmental impact of the country's rapid economic growth, IBC's lead in incorporating environmental standards in its lending policies is being followed by other banks such as Industrial and Commercial Bank of China.

The overall winner of the 2009 awards was Triodos Bank of the Netherlands, created in 1980 to lend to businesses, organisations and projects with a social, environmental or cultural benefit. The bank has continued to grow despite the financial crisis, investing in like-minded institutions in emerging markets and managing funds of €3.7bn ($5.2bn, £3.2bn).

“We don't invest in sub-prime markets or in vehicles such as derivatives,” Triodos said in its entry.

Runner-up in the awards was Standard Chartered, the UK-based emerging markets bank that operates in countries facing problems created by climate change, environmental degradation, poverty and disease. Itau Unibanco of Brazil, a country whose banks have dominated the awards in their first four years, was overall Emerging Markets Bank of the Year.

“The financial crisis has necessitated a re-assessment of the way in which banks and investment houses operate,” said Lionel Barber, Financial Times editor. “The winners of these awards are radically changing the industry's approach to risk and opportunity.”

Lars Thunell, chief executive of the International Finance Corporation that created the awards with the FT, said: “The crisis underscores that sustainability is at the core of building a healthy global economy. A growing number of financial institutions, especially those in emerging markets, are driving this change.”

Despite the crisis in the banking sector, the 2009 awards attracted 165 entries from 42 countries, including non-banking financial institutions, as well as banks.