Environment and climate risk management fostering high-quality development
Deloitte supports environment and climate risk management initiatives – from top-level design to implementation – for a leading Chinese securities company. We provide integrated solutions that combine environment and climate risk management with business operations, ensuring they align deeply with client needs.
The situation
The client is a leading state-owned securities company in China. It has the largest number of domestic branches and one of the most extensive investment banking networks across Asia. With a unique history, brand, shareholder advantages, capital scale, profitability, business strength, and risk management capabilities, the company is a sector leader. It serves over 17 million clients in China and along the “Belt and Road”, managing more than CNY5 trillion (USD688 billion) in assets. The client aims to prioritize high-quality development by integrating ESG principles into its long-term business strategy, aligning with regulatory guidance and industry trends, and incorporating ESG factors into its business operations and risk management.
The solution
Deloitte assisted the client in formulating a comprehensive approach to environmental and climate risk management, from top-level design to practical implementation. This involved analyzing the current state of the company's management and integrating strategic planning, business development, regulatory requirements, industry trends, and capital market expectations to create a robust environmental and climate risk management system and capability-building framework. Additionally, Deloitte developed tools to assess environmental and climate risks aligned with business operations; conducted stress tests for climate transition risks; and supported the establishment, monitoring, statistics, and analysis of related indicators. This ensured the integration of environmental and climate risks into the company's comprehensive risk management system, enhancing overall environmental and climate risk management.
The impact
Deloitte is deeply engaged in the risk management projects for financial institutions, with a thorough understanding of their related systems and business models. By contributing to the construction of green finance and climate risk management systems for leading financial institutions, Deloitte has accumulated practical experience in developing quantitative climate risk identification and assessment tools. These tools enable us to shape integrated environmental and climate risk management solutions tailored to clients' business operations.
