【ESG News】Global Trends Biweekly Newsletter Issue 10 (2024.6.17-2024.6.28)

 

Hong Kong China ESG trends

 

Green and Sustainable FinTech Proof-of-Concept Funding

Support Scheme Now Open for Application

Cyberport announced that the Green and Sustainable FinTech Proof-of-Concept Funding Support Scheme (the Green and Sustainable FinTech PoC Scheme or the Scheme) commissioned by the Financial Services and the Treasury Bureau, is now open for applications. The Scheme aims to promote the research and development (R&D) and commercial adoption of innovative Green FinTech solutions across five key areas, including 1. Green & Digital Finance and Investment; 2. ESG (Environmental, Social and Governance) Disclosure, Compliance & Regulatory Reporting; 3. Carbon Trading, Analytics and Technology; 4. ESG Data, Intelligence and Analytics; and 5. ESG/Climate Risk Modelling & Assessment. Each approved project is entitled to funding up to HK$150,000.

Source: Cyberport (https://www.cyberport.hk/files/667f071844c01523514167/[Press%20Release]%20Green%20and%20Sustainable%20FinTech%20Proof-of-Concept%20Funding.pdf)

 

Marine Department launches Green Incentive Scheme to facilitate green transformation of Hong Kong-registered ships

The Marine Department (MD) announced (June 28) that the Green Incentive Scheme is now open for applications from eligible Hong Kong-registered ships until December 31, 2026, to encourage the green transformation of the maritime industry.

 

Source: Hong Kong Government (https://www.info.gov.hk/gia/general/202406/28/P2024062800156.htm?fontSize=1)

 

International ESG trends

 

ICMA announce guidance for green enabling projects and guidelines for Sustainability-Linked Loan financing Bonds (SLLB) alongside other important updates

The Green, Social, Sustainability and Sustainability-Linked Bond Principles (the “Principles”) announce guidance for green enabling projects and guidelines for Sustainability-Linked Loan financing Bonds (SLLB) alongside other important updates. 

Key publications and resources released are:

• Guidance for green enabling projects: a great number of green enabling projects, vital to the value chain of green projects, are not themselves explicitly considered green but remain critical to these eligible green projects. This document seeks to provide guidance for such green enabling projects, encompassing both the induced and avoided emissions dimensions, as well as the management of related environmental and social risks. This includes identifying the role that green enabling projects play in catalysing and scaling the transition to a low-carbon economy in line with the goals of the Paris Agreement while recognising the complexities of value chains and challenges of multiple end-uses.
• Guidelines for Sustainability-Linked Loan financing Bonds (SLLBs): these guidelines, developed jointly with the Loan Market Association (LMA), define a dedicated bond instrument designed for issuers wishing to finance or re-finance a portfolio of eligible sustainability-linked loans (SLLs) aligned with the LMA’s Sustainability-Linked Loan Principles (SLLP). SLLBs may serve as an incentive to enhance the robustness of sustainability-linked loan structures in the market over the longer-term.

Source:  ICMA (https://www.icmagroup.org/News/news-in-brief/the-principles-announce-guidance-for-green-enabling-projects-and-guidelines-for-sustainability-linked-loan-financing-bonds-sllb-alongside-other-important-updates/)

 

ISSB ‘Harmonizes’ Global Sustainability Standards

This week, there was an update on the strengthening of relationships between the ISSB and Transition Plan Taskforce (TPT), the Greenhouse Gas (GHG) Protocol, CDP, Taskforce on Nature-related Financial Disclosures (TNFD), and Global Reporting Initiative (GRI). The official partnership with the GHG Protocol includes a memorandum of understanding, which ensures the ISSB is involved in future governance and engaged in any future decisions on the GHG Protocol standards.

Source:  ESG News (https://esgnews.com/tim-mohin-issb-harmonizes-global-sustainability-standards/)

ISO to Launch Global Net Zero Standard

The International Organization for Standardization (ISO) announced that it has commenced work on the development of a new international standard on net zero, aimed at providing clarity and credibility to organizations’ net zero targets and strategies, and to guard against greenwashing.

 

Source:  ESG Today (https://www.esgtoday.com/iso-to-launch-international-net-zero-standard/?utm_source=rss&utm_medium=rss&utm_campaign=iso-to-launch-international-net-zero-standard)

 

Mainland China ESG trends

 

ESG Standardization Project Research group was established in Beijing

On the 21st, the ESG Standardization Seminar and the launch meeting of the ESG Standardization Project research group was held in Beijing. The conference was co-sponsored by Capital University of Economics and Business and the China Institute of Standardization, and co-hosted by the China ESG Research Institute of Capital University of Economics and Business and the Resources and Environment Research Branch of the China Institute of Standardization. This conference brought together more than 100 experts and scholars from the Ministry of Ecology and Environment, the National Development and Reform Commission, the People's Bank of China, the Ministry of Industry and Information Technology, the CSRC and other ministries and commissions, as well as ESG international institutions, associations, enterprises, universities and research institutions to jointly discuss the road to ESG standardization construction in line with China's national conditions, aiming to promote the in-depth development of ESG practice. And promote sustainable development in China and around the world.

Source: China Securities Journal (https://www1.cs.com.cn/esg/202406/t20240627_6420482.html)

 

PRI response to the China Ministry of Finance’s consultation on corporate sustainability disclosure standards - basic standards

On the 26th, PRI's official website released a response to China’s Ministry of Finance's "Corporate Sustainability Disclosure Standards - Basic Standards". The PRI welcomes the issuance of the Basic Standards, their alignment with IFRS S1, and MoF’s effort to promote the adoption of ISSB standards and plan for a unified sustainability reporting framework in China. In addition, the Ministry of Finance's plan to establish a unified corporate sustainability information reporting framework will bring necessary improvements to sustainable reporting in China.

Source：UNPRI (https://www.unpri.org/consultations-and-letters/pri-response-to-the-china-ministry-of-finances-consultation-on-corporate-sustainability-disclosure-standards-basic-standards/12525.article)

 

Beijing Enterprise Association issued a proposal for enterprises to fulfill social responsibility

On the 26th, Beijing Enterprise Federation and Beijing Entrepreneurs Association (hereinafter referred to as "Beijing Enterprise Association") held the 2024 Beijing Enterprise Management Innovation and Social Responsibility exchange meeting. The meeting issued the "Beijing Enterprise ESG Management System Guide" and "Beijing Enterprise to fulfill Social Responsibility Proposal". Beijing Enterprise Association aims to support enterprises to improve the level of ESG governance through a series of special actions, establish an ESG industry benchmark, jointly build the ESG development ecology of Beijing enterprises, and make positive contributions to the high-quality, sustainable and healthy development of Beijing's economy.

 

Source：CNR (https://www.cnr.cn/ziben/yw/20240626/t20240626_526765173.shtml)

 

Sustainable Finance Certification Public and Completed by Lianhe Green