Publication / 04 Sep 2017

The Hidden Costs of China’s Coal-to-Chemical Sector

Trucost and Energy Foundation China provide market participants with a framework to stress test investments for environmental risk

Quantifying environmental externalities is one of the priorities in green finance development in China. Both Chinese and international policy makers are emphasizing the importance of stress testing environmental risks for investment, including the use of scenario analysis.

This report looks at the hidden environmental risks and financial implications in China from the bottom up, using the coal-to-chemical sector as an example. It presents an assessment framework to measure the hidden costs from seven risk factors under various scenarios and illustrates how investors could integrate this into existing risk and financial analysis:

  • Regulatory risks: energy standard compliance, environmental tax, national carbon emissions trading scheme, pollutant emission right trading system, water cap compliance, and water resource tax.
  • Physical risks: water stress.
18 June, 2020
Events Building Best in Class ESG Practices’ – Webinar

In this Webinar we will take a look at how global banks and asset managers can build best practices around data quality, assessment frameworks and risk modelling. Christopher Perceval – Director and Head of Business Development EMEA at Trucost, part of S&P Global will be speaking at this event. For more info or details...

Find out more
16 June, 2020
Events ESG Disclosure and Due Diligence:  Through the Lens of Equity Capital Markets – Webinar

AFME’s first sustainable finance webinar will explore the increasingly important topics of ESG Disclosure and Due Diligence and more specifically, what they mean for Equity Capital Markets. With the support of our co-hosts, Allen and Overy, we’ll be using their planned report as a foundation to discuss further implications, challenges and projections around these...

Find out more
28 January, 2020
Events Uncovering Business Value from Environmental, Social and Governance Factors, Webinar, 28th January 2020

More than ever companies are measuring and disclosing their performance around environmental, social and governance (ESG) issues. By doing this, companies are able to reduce financial risks and uncover business opportunities. Moreover, record amounts of capital are flowing towards companies who do good. In this webinar you will learn: • The current sustainability landscape...

Find out more

VIEW ALL NEWS & INSIGHTS