China Chengxin Green Finance International (CCXGFI) has provided climate risk stress testing services for China Power International Development Limited (Stock Code: 02380), in compliance with the Hong Kong Stock Exchange (HKEX) requirements and adhering strictly to the International Financial Reporting Standards IFRS S2. This service integrated the climate transition risk stress testing framework from the People's Bank of China and referenced climate change scenarios from the IPCC (Intergovernmental Panel on Climate Change) and NGFS (Network for Greening the Financial System) to develop a customized testing approach tailored to the company's specific operational conditions.

In terms of stress scenario settings, the testing simulated three carbon price scenarios—mild, moderate, and severe—based on domestic carbon emission trading market price fluctuations and NGFS carbon price settings. The key assumptions included long-term conditions related to carbon emissions, cost payments, technological advancements, and market pricing power, used to analyze the company's financial performance and potential carbon emission gaps under various carbon price scenarios. Additionally, through financial modeling, CCXGFI conducted an in-depth analysis of the future financial performance of key emitting subsidiaries of China Power and assessed the impact on the group's overall financials by consolidating parent and subsidiary financial statements.

This testing not only provided China Power with a comprehensive understanding of its financial risks and opportunities in carbon reduction but also offered crucial reference points for the company's strategic planning in the evolving carbon market.