In today’s evolving financial landscape, climate risk is no longer a distant concern. It is a material factor shaping long-term resilience. Senang Eco partnered with China Construction Bank Indonesia (CCBI) to support their journey in understanding and managing climate-related financial risks, aligned with global frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD) and regulatory expectations from OJK Buku 6.

Our work began with a comprehensive initial assessment, mapping CCBI’s current initiatives, identifying key data needs, and developing a tailored compliance roadmap. Through a detailed gap analysis benchmarked against OJK, PCAF, and TCFD, and consultations with over 15 internal stakeholders, we pinpointed critical areas for strengthening climate risk management.

At the core of this project was the development of a Climate Risk Management System (CRMS). We collected relevant data categories, designed standard operating procedures, and governance tools to ensure smooth integration of climate risk across the bank’s operations. We also conducted climate stress testing on more than half of CCBI’s loan portfolio, applying Baseline, Disorderly, and Hot House World scenarios to understand potential impacts from both transition risks such as carbon pricing and policy changes and physical risks including flooding and heatwaves affecting clients and assets.

In addition to delivering a full regulatory-aligned CRMS report, we supported CCBI in clarifications following submission and provided training and stakeholder engagement sessions to build internal capacity for ongoing climate risk integration. This system empowers CCBI to perform independent, repeatable, and data-driven climate risk assessments, positioning the bank as a climate-resilient and future-ready financial institution.

Through this collaboration, Senang Eco helped China Construction Bank Indonesia turn complex climate challenges into actionable strategies, strengthening their leadership in sustainable finance and aligning with both regulatory standards and emerging market expectations.