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Internalization Of Environmental Costs And Investment Stress Testing: Aluminum Sector in China

 

Authors

Derek Hon Yan Ip, Kaboo Po Yi Leung, Chaoni Huang, Lokesh Raikwar, Beth Burks, Gautham P, Matyas Horak, Siddartha Joshi, James Richens And Rebecca Edwards

Research organisation

Trucost

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Internalization Of Environmental Costs And Investment Stress Testing: Aluminum Sector in China

Report Date

March 2017

Release Date

October 2017

Document summary

Answering the regulatory and market need to address externalities, Trucost collaborated with the Industrial and Commercial Bank of China (ICBC), the Foreign & Commonwealth Office and the Green Finance Committee in China to assess and quantify the environmental externalities of major sectors in China. In April 2016, Trucost worked with ICBC on quantifying the natural capital costs associated with 35 business sectors in China, empowering investors to assess and compare environmental costs across impact types and sectors, provide insights for green loans or green investment strategies, as well as manage environmental risks. This report continues the collaboration between Trucost and ICBC by focusing on one sector – aluminum – and developing a sensitivity analysis tool for investors to assess the potential internalized costs and environmental risks of their investments in this sector.