To increase financial support for the transition towards green and low-carbon development and strengthen the management of climate risks, CCB Head Office recently held a meeting to kick off the climate risk stress test consulting program, teaming up with specialized consulting agencies to perfect the climate risk stress test system. Chief Risk Officer Mr. Cheng Yuanguo attended the meeting. Heads of the Board of Directors Office, the Credit Management Department, the Credit Approval Department, the Corporate Banking Department, the Strategic Clients Department and Shanghai Risk Measurement Center as well as relevant heads of KPMG China participated in the meeting as well.

According to the report delivered at the 20th National Congress of the CPC, “modernization with Chinese characteristics is the modernization of harmony between humanity and nature”, increasing response to climate risks and working towards carbon neutrality and carbon peaking goals are important approaches to fulfill the vision. Working with top specialized institutions at home and aboard, CCB launched the program to build a climate risk stress test system adapted to the high-quality development across the Bank, establish the climate scenario system, model and method system and data calculation template aligned with international standards, and fully evaluate the impact of climate related financial risks based on CCB’s business and asset portfolios, so as to offer stronger support for operations, restructuring and risk control.

Chief Risk Officer Mr. Cheng Yuanguo said, taking root in theories and being application oriented, the program should introduce mature methods at home and abroad and keep aligned with the “1+N” policy system, with the outcomes integrated in operating and management processes to create advanced, pragmatic, forward-looking and leading practice. Also, leveraging systems thinking with a big picture in mind and leading practice across the world, all participants should form a joint force to improve CCB’s ESG ratings and resilience against climate risks.

Following the kick-off meeting, the Head Office’s Department of Risk Management organized the first lecture of the “Proactive Risk Management of Climate Change” Youth Forum in 2022. Upon invitation, Mr. Li Lishu, an expert outside CCB, gave a lecture themed “Responding to Climate Changes – Climate Risks and Governance”, detailing the background of the response to climate changes, China’s “1+N” policy system and updates about the industries with high carbon emissions, as well as the practice of regulators and banking institutions at home and abroad. The lecture was livestreamed across the Bank via the platform of CCB University.