CUB built a scenario analysis model for physical and transition risks brought by climate change, and evaluates the impact of extreme weather and policies on loan assets. a.Short-, mid-, and long-term risks b.Material risks and opportunities c.Scenario analysis Cathay identified short-, mid-, and long-term climate risks and opportunities through ERMF, and built a scenario analysis model, formulating response strategies, management indicators, and goals based on quantified results of the impact of climate risk.