To help Chinese financial institutions understand the environmental risks of their investments, Trucost has developed a model that quantifies natural capital costs of 35 business sectors in China selected in collaboration with project partner ICBC. This model attributes these natural capital costs to the portfolios of the financial institutions through their equity or loan exposures to these sectors. As a case study, this report summarises the results of applying the model to assess natural capital costs associated with the Chinese commercial banks from their lending to these 35 sectors, along with recommendations of how Chinese investors could respond to the increasingly material environmental risks in the country.