Publication / 22 Apr 2016

Accounting for Natural Capital Costs Associated with Chinese Financial Institutions

Trucost has developed a natural capital analysis tool to help Chinese banks and investors understand the natural capital implications of their financing activities.

China has enjoyed increased prosperity as a result of having one of the fastest growing economies in the world. However, this growth has been highly dependent on the consumption of natural resources to support a strong manufacturing-based economy.

The result has been increased environmental impacts which have severely compromised the sustainability of the country. These impacts have recently received considerable public and government attention, leading to more stringent environmental laws and sector-specific regulations, which translate environmental impacts into material financial risks for Chinese businesses. In turn, Chinese financial institutions are exposed to these risks through their investment and lending activities.

To help Chinese financial institutions manage their exposures to environmental impacts, Trucost has developed a model quantifying natural capital costs within 35 business sectors in China, selected in collaboration with project partner the Industrial and Commercial Bank of China. This model covers six major environmental key performance indicators, and is able to quantify environmental impacts in monetary terms. This model attributes these natural capital costs to the portfolios of the financial institutions through their equity or loan exposures to these sectors.

25 September, 2019
Events Sustainable Investment Forum – New York – 25th September

As finance becomes the number one focus for the UN SDGs, what is your organisation doing to invest in our future?

Find out more
8 July, 2019
Events Plug and Play Europe Sustainability: July Deep Dive – 8th July – 10th July – München Germany

Please join us for the first ever Plug and Play Europe Summer Summit. This event will combine the ecosystems of six different Plug and Play programs to showcase technology trends and corporate innovation pain points within each respective industry. The result will be a large but focused event with tremendous opportunity to connect with...

Find out more
Events Web-conférence: De l’Article 173 Loi TECV aux stress tests TCFD: 14 mai 2019

Suite à l’entrée en vigueur en 2016 de la loi française sur la transition énergétique pour la croissance verte, les investisseurs institutionnels français ont établi un reporting « ESG-Climat » qui se base, par exemple, sur l’empreinte carbone ou la part verte/brune. Proposées également par la Task force on Climate-related Financial Disclosures (TCFD) comme...

Find out more

VIEW ALL NEWS & INSIGHTS