In following up on the implementation of the "Climate Risk Management" (GS-1) supervisory manual issued by the Hong Kong Monetary Authority at the end of 2021, Industrial Bank Co., Ltd, Hong Kong Branch has successfully established a climate risk management framework compatible with the scale and mode of our business and operation by the end of 2022.

Climate risk is a cross-cutting risk integrated with traditional risks such as credit risk, market risk, operational risk and so forth, which can be categorized as transition risk and physical risk. Pursuant to the relevant regulatory requirements, our Bank has embedded climate risk management into the existing risk management mechanism in three major areas, namely “governance”, ”strategy” and “risk management”. The relevant information is disclosed in the Annex.

2023-07-06