Chinese banks face RMB 11 trillion environmental risk

(Eco Business, 27 Apr 2016) Environmental data consultancy Trucost has found that Chinese banks and investors are not doing enough to manage the risks associated with the environmental impacts of the industrial activities they finance, leaving them exposed to costs of up to RMB 11 trillion.

Chinese banks are failing to consider the environmental risks of their investment and lending activities, and this oversight leaves them exposed to costs of RMB 11 trillion (US$1.69 trillion), a new report by environmental data consultancy Trucost has found.

Titled Accounting for Natural Capital Costs Associated with Chinese Financial Institutions – Banking Sector Case Study and launched on Saturday, the study shows that when banks invest in, or lend to companies, unforeseen environmental costs could undermine their financial returns.

Chaoni Huang, Trucost head of business development in Asia, noted that “Chinese banks and investors face a complex landscape of risks and opportunities resulting from the policies driving the transition to a clean, low-carbon economy”.

External link

Eco Business, 27 Apr 2016: Chinese banks face RMB 11 trillion environmental risk