【ESG News】Global Trends Biweekly Newsletter Issue 16 (2024.9.9-2024.9.20)

Hong Kong China ESG trends

HKICPA issues the exposure drafts of two inaugural Hong Kong Sustainability Disclosure Standards for public consultation

The Hong Kong Institute of Certified Public Accountants (HKICPA) announces today (16 September) the publication of the Exposure Drafts for HKFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and HKFRS S2 Climate-related Disclosures (HKFRS Sustainability Disclosure Standards) for public consultation. The HKICPA is seeking comments on the Exposure Drafts of HKFRS Sustainability Disclosure Standards from now to 27 October 2024.

Source: HKICPA (https://www.hkicpa.org.hk/en/News/News-Release/20240916_HKFRS-S1_S2)

HKMA and DFSA hold joint conference to strengthen sustainable finance collaboration

The Hong Kong Monetary Authority (HKMA) and the Dubai Financial Services Authority (DFSA) concluded their inaugural Joint Climate Finance Conference today (16 September). The hybrid conference, which took place in Hong Kong, brought together more than 240 participants from financial institutions, industry associations, and international organisations across both regions. Under the theme “Building a Net-Zero Asia – Middle East Corridor”, the event discussed the demand for, and the gap in, transition finance, and explored the opportunity for greater collaboration between Hong Kong and Dubai. It highlighted the vision for the net-zero transition in each market, and for encouraging investment into the transition.

Source: HKMA (https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/09/20240916-4/)

International ESG trends

SBTi Enhances Corporate Net-Zero Standard to Refine Emission Neutralization

The Science Based Targets initiative (SBTi) is advancing its efforts to help companies achieve net-zero by revising its Corporate Net-Zero Standard. Initially published in 2021, the Standard outlines how companies should set science-based targets to reduce their emissions and neutralize any remaining residual emissions through permanent carbon removal and storage. One of the key areas of focus in this revision is the refinement of the approach to neutralization. After companies reach their long-term emission reduction targets, they must neutralize any remaining emissions that cannot be reduced further. The revision aims to clarify how companies can effectively achieve this through credible, science-backed carbon removal and storage solutions. This update is part of a larger effort to align the Standard with the latest climate science, including findings from the IPCC’s Sixth Assessment Report, and ensure robust validation of net-zero claims.

Source:  ESG News (https://esgnews.com/sbti-enhances-corporate-net-zero-standard-to-refine-emission-neutralization/)

Global Investors Push for Stronger Climate Policies Ahead of COP29, Urging Governments to Unlock $29 Trillion for Net-Zero Transition

More than 530 financial institutions, managing over $29 trillion in assets, are pressuring governments worldwide to take decisive action on the climate crisis. In a joint statement ahead of COP29, investors call for policies that will accelerate the transition to a net-zero, climate-resilient economy, including mandatory climate-related reporting and decarbonization strategies for high-emitting sectors.

Source:  ESG News (https://esgnews.com/global-investors-push-for-stronger-climate-policies-ahead-of-cop29-urging-governments-to-unlock-29-trillion-for-net-zero-transition/)

SEC Disbands Climate & ESG Task Force

The SEC’s beleaguered ESG agenda took another hit this week as their Enforcement Division’s Climate & ESG Task Force, set up three years ago, was quietly disbanded. The group was created in March 2021 to “develop initiatives to proactively identify ESG-related misconduct.” Since then, the group has played a pivotal role in some of the SEC’s biggest ESG-related fines, like their biggest ones against Deutsche Bank ($25 million) and Goldman Sachs ($4 million) for misleading ESG fund claims. The SEC now claims that “the expertise developed by the task force now resides across the Division.”

Source:  ESG News (https://esgnews.com/tim-mohin-sec-disbands-climate-esg-task-force/)

Mainland China ESG trends

The Guidelines for Accounting and Reporting of Greenhouse Gas Emissions of Corporates for the Cement Industry and other four standards were issued

In order to further standardize the greenhouse gas emission accounting reporting and verification of corporates in the cement and aluminum smelting industries, consolidate and improve the quality of data, in accordance with the Interim Regulations on the Administration of Carbon Emission Trading, The Ministry of Ecology and Environment has formulated the Guidelines for Accounting and Reporting of Greenhouse Gas Emissions by Corporates for Cement Industry (CETS-AG-02.01-V01-2024), Technical Guidelines for Verification of Greenhouse Gas Emissions by Corporates for Cement Industry (CETS-VG-02.01-V01-2024) and Guidelines for Accounting and Reporting of Greenhouse Gas Emissions by Corporates Aluminum smelting industry (CETS-AG-04.01 -- V01-2024), Corporate Greenhouse Gas Emission Verification Technical Guide Aluminum smelting industry (CETS-VG-04.01 -- V01-2024) and other four national carbon emission rights trading market technical specifications.

Source: The Beijing News (https://m.bjnews.com.cn/detail/1726819297129387.html)

The Shanghai Action Plan for Accelerating Green and Low-carbon Transition (2024-2027) was released

Shanghai Municipal Development and Reform Commission introduced that in order to further promote the green low-carbon transition of the city and form new quality productivity, the Municipal government recently issued the Shanghai Municipal Government to accelerate the green low-carbon transition Action Plan (2024-2027). The Action Plan defines green and low-carbon transition in five key areas, including energy, industry, transportation, construction and circular economy. And put forward the improvement of technological innovation mechanism, strengthen the financial support mechanism, improve the energy market mechanism, optimize the carbon pricing mechanism, improve the financial security and price mechanism, improve the industrial cultivation mechanism, strengthen the green and low-carbon management mechanism, strengthen the social participation mechanism and other mechanism innovation and guarantee measures.

Source: Shanghai government (https://www.shanghai.gov.cn/nw12344/20240914/a33482feb8a24666ad745e95ef295f03.html)

National Action Plan on Health Adaptation to Climate Change (2024-2030)

Recently, the National CDC, together with the National Development and Reform Commission, the Ministry of Finance, the Ministry of Ecology and Environment and other 12 relevant departments issued the National Action Plan on Health Adaptation to Climate Change (2024-2030) (hereinafter referred to as the Action Plan), aiming to improve the level of health adaptation to climate change and promote the construction of a healthy and beautiful China. The Action Plan proposes that by 2025, a multi-sectoral collaboration mechanism on climate change and health should be improved, and a framework of policies and standards related to climate change and health should be established. We will strengthen the monitoring system for climate-sensitive diseases and develop indicators for assessing climate change and health. The first round of assessments on health risks, vulnerability and resilience to climate change has been completed, and a list of major needs for scientific research on health adaptation to climate change has been developed.

Source：Xinhua (http://www.news.cn/energy/20240920/fc54e37a342d45c8af8569e80b431161/c.html) 

Sustainable Finance Certification Public and Completed by Lianhe Green