Committed to combating climate change, the Group is fast developing capabilities, launching initiatives and aligning with international best practices, aligning its environment risk strategy with:
- The 2015 Paris Climate Agreement and similar subsequent international agreements, such as the recent COP26 in Glasgow; and
- National Climate-Change Goals in its local jurisdictions, as well as recently released regulatory guidelines.
The Bank has codified the climate-change risk profile of its entire portfolio using standard external methodology.
It has also enhanced its integrated stress testing to incorporate the assessment of the impact of climate-change risk (physical and transition) scenarios on its capital adequacy, earnings and credit quality.
The Bank has initiated a process for identifying, monitoring and reporting emissions under the Scope 1, 2 and 3 categories at a Group and subsidiary level.
The Group’s key international units have formed governance committees to shape and oversee their climate-change risk management.
The Bank has enhanced its risk appetite to set a 2030 target of net zero for the emissions from its own operations and activities. Here’s the spilt between Scope 1, 2 and 3 activities.