To better inform investment decision making, this study develop a pragmatic framework for investors to assess environmental risks using the coal-to-chemical sector as an example. This report is developed by the Trucost and S&P Dow Jones Indices, and is supported by Energy Foundation China. This report describes how Trucost developed a stress-testing framework to measure the hidden financial cost of the sector given its environmental impacts under various scenarios. Using China-specific impact and risk data, Trucost analyzed the hotspots of risks across key products and regions to illustrate the potential hidden costs to be considered in financial analysis. Using case studies, this report further demonstrates how investors could leverage this framework in their existing risk analysis and management practices. With the framework and findings, this project intends to provide recommendations for the industry, its investors, and policy makers on closely linking environmental risks and financial analysis in the future.