PSBC, one of China's six biggest government-owned banks, has established an environmental and social-riskmanagement system and carried out hierarchical management of clients while granting credit. The bank has integrated ESG and climate risk into its corporate customer credit investigation and review-reporting templates and included ESG-related risk indicators in its internal rating-adjustment factors. This approachenables the bank to evaluate the creditworthiness of its customers based on ESG considerations and adjust its internal ratings accordingly.