【ESG News】Global Trends Biweekly Newsletter Issue 17 (2024.9.23-2024.10.4)

Hong Kong China ESG trends

SFC welcomes voluntary code of conduct for ESG ratings and data products providers

The Securities and Futures Commission (SFC) welcomes the publication today of a voluntary code of conduct (VCoC) by an industry-led working group for environmental, social and governance (ESG) ratings and data products providers providing products and services in Hong Kong. The code, an initiative supported and sponsored by the SFC, was led by the Hong Kong ESG Ratings and Data Providers VCoC Working Group (VCWG) (Note 1). The International Capital Market Association (ICMA), which has acted as the Secretariat of the VCWG in the formulation of the VCoC, will host and maintain the code (Note 2).

Source: SFC (https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=24PR159)

International ESG trends

IFRS Foundation publishes guide for companies as investors call for voluntary application of ISSB Standards

Investors globally have called on companies to voluntarily apply ISSB Standards to provide investors with decision-useful, globally comparable information in the absence of regulatory requirements to apply ISSB Standards. To support companies meet this demand, the IFRS Foundation has today—at New York Climate Week—published Voluntarily applying ISSB Standards—A guide for preparers. The guide aims to support companies as they start to apply ISSB Standards voluntarily as well as helping them communicate their progress to investors.

Source:  IFRS (https://www.ifrs.org/news-and-events/news/2024/09/ifrs-foundation-publishes-issb-voluntary-application-guide/)

EU Commission Warns 17 Member States Over Failure to Implement CSRD Sustainability Reporting Rules

The European Commission announced that it has sent letters to 17 EU member states, opening infringement procedures with the states over their failure to communicate that they have fully transposed the new Corporate Sustainability Reporting Directive (CSRD) into their national laws.

Source:  ESG Today (https://www.esgtoday.com/eu-commission-warns-17-member-stated-over-failure-to-implement-csrd-sustainability-reporting-rules/)

ICMA publishes new paper on the role of commercial paper in the sustainable finance market

The International Capital Market Association (ICMA) has today released a paper entitled "The role of commercial paper in the sustainable finance market," highlighting the growing recognition of the potential of sustainable commercial paper (CP) to form an integral part of sustainable finance strategies. With the market for sustainable CP potentially reaching EUR 300 billion, this paper provides crucial insights into its development and the best practices shaping its future.

Source:  ICMA (https://www.icmagroup.org/News/news-in-brief/icma-publishes-new-paper-on-the-role-of-commercial-paper-in-the-sustainable-finance-market/)

Mainland China ESG trends

List of CGT-Aligned Chinese Outstanding Green Bonds (September 2024 Version)

To further promote the opening of China’s green bond market, and enhance the role of the Common Ground Taxonomy (CGT) in facilitating cross-border flows of green capital, the expert group convened by the Green Finance Committee (GFC) of China Society for Finance and Banking has undertaken the relabelling work for green bonds newly issued in China’s interbank market in August 2024 against the CGT. 15 green bonds supporting projects on climate mitigation have been newly identified as CGT-aligned, with a total scale of RMB 24.16 billion. Among these, 10 green bonds have already been aligned with the CGT during issuance. Each bond meets the specified technical requirements outlined in the Substantial Contribution Criteria of the CGT.

Source: CFETS (https://www.chinamoney.com.cn/english/svcnrl/20240930/2971599.html)

Six Departments Issued Guidelines to Strengthen the Clean and Efficient Use of Coal

The National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Natural Resources, the Ministry of Ecology and Environment, the Ministry of Transport and the National Energy Administration recently jointly issued the Opinions on Strengthening the clean and Efficient use of Coal. The guideline has deployed 15 key tasks and specific measures from the four aspects of building a green collaborative development system, a safe and environmentally friendly production system, a clean and perfect storage and transportation system, and a diversified and efficient use system, and has clarified relevant safeguard measures to promote the comprehensive strengthening of clean and efficient utilization of all links of the coal development, production, storage and transportation, and use of the whole chain.

Source: Xinhua (http://www.news.cn/20241004/836efc1c6c3b43d6ac96f42447ec9cb4/c.html)

Sustainable Finance Certification Public and Completed by Lianhe Green