Facilitating Environmental Risk Management for Banks to Promote Green Finance

2020-02-19

As part of our work to promote climate finance among commercial banks, NRDC jointed IPE to develop a dynamic environmental risk management system of companies. NRDC worked together with IPE to pilot the system with commercial banks and assigned more weight on carbon emission data in the system. On February 19, IPE and NRDC demonstrated the system to the Postal Savings Bank of China (PSBC). The three parties also discussed how to implement environmental and climate risk management into banks’ daily finance operations. This system, based on IPE’s environmental database, which has over 1.8 billion corporate environmental records collected from government sources, can help commercial banks check and track the environmental performance of enterprise-borrowers and be alerted to their environmental risks. This system is expected to be a useful tool for banks to manage the environmental and climate risk of their entire lending portfolio. Consequently, it can push enterprise borrowers to improve environmental information disclosure and environmental management. 

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