ICBC recently won the Achievement in Climate Risk Management Award, as part of the China Awards 2022 program organized by The Asian Banker.

The Achievement in Climate Risk Management Award is attributable to ICBC’s innovative and leading role in developing climate risk management systems and technologies fit for the Chinese banking industry. As a member of the Task Force on Climate-related Financial Disclosures (TCFD) of the Financial Stability Board (FSB) and the leading unit of the Carbon Reduction Expert Working Group in the banking industry, ICBC has incorporated climate risk into its enterprise risk management system, created climate risk stress test methods, explored the integration of climate factors into its internal ratings, established a climate risk database, continuously enriched the content of climate risk disclosures, and participated in the formulation of global rules on climate risk.

ICBC’s climate risk stress testing draws on the technical framework of the United Nations Environment Program (UNEP), and selects the Central Banks and Supervisors Network for Greening the Financial System (NGFS) stress scenario. A stress transmission model has been constructed in light of actual conditions in China to conduct bank-wide climate risk stress tests with the data of customers, businesses, and industries available in the Bank and beyond.

For the next step, ICBC will apply the concept of sustainable development, further exploit the driving role of innovation, endeavor to improve climate risk management and related technical capabilities, actively participate in industry cooperation and standard formulation at home and abroad, and promote green and low-carbon development of the Chinese economy and society.