【ESG News】Global Trends Biweekly Newsletter Issue 1 (2024.2.5-2024.2.16)

 

Hong Kong China ESG trends

 

Hong Kong Issues $765 Million Digital Green Bond

The Hong Kong Monetary Authority (HKMA) has announced the successful offering of the Hong Kong government's digital green bonds. This issuance marks the second digital bond offering by the Hong Kong Special Administrative Region (HKSAR) Government, following the inaugural tokenized green bond issued in February 2023.

Source：HKMA (https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/02/20240207-6/)

 

International ESG trends

 

EU Lawmakers Agree to Regulate ESG Ratings Providers

EU lawmakers have agreed to regulate ESG ratings providers, aiming to enhance investor confidence and promote transparency in sustainable finance. The European Securities and Markets Authority (ESMA) will oversee the regulation, ensuring transparency in methodologies and data sources. Separate ratings will be provided for environmental, social, and governance factors, allowing for a comprehensive assessment of companies' performance in each area.

Source: ESG Today (https://www.esgtoday.com/eu-lawmakers-agree-to-regulate-esg-ratings-providers/)

 

European Commission recommended on Tuesday that the EU slash net greenhouse gas emissions by 90% by 2040

The European Commission recommended on Tuesday that the EU slash net greenhouse gas emissions by 90% by 2040, an ambitious target that will test political appetite for the region's fight against climate change ahead of EU elections.

Source: Reuters (https://www.reuters.com/world/europe/eu-set-recommend-deep-co2-cuts-2040-climate-target-2024-02-06/?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axiosgenerate&stream=top)

 

EU Launches Strategy to Massively Boost Carbon Capture to Hit Climate Goals

The European Commission announced the release of its strategy to significantly increase industrial carbon capture, storage and utilization capacity across the EU over the next several years, forming a key part of its plan to achieve its climate goals, including reaching net zero emissions by 2050.

Source: ESG Today (https://www.esgtoday.com/eu-outlines-strategy-to-massively-boost-carbon-capture-to-hit-climate-goals/)

 

Climate change drives world to first 12-month spell over 1.5C

The world just experienced its warmest January on record, marking the first 12-month period in which temperatures averaged more than 1.5C (2.7F) above pre-industrial times, the European Union's climate change monitoring service said on Thursday.

 

Source: Reuters (https://www.reuters.com/business/environment/january-was-worlds-warmest-record-eu-scientists-say-2024-02-08/)

 

Mainland China ESG trends

 

Mainland China’s stock exchanges issue guidelines on ESG disclosure for companies

On February 8, 2024, three major stock exchanges in China, namely the Shanghai Stock Exchange (SSE), the Shenzhen Stock Exchange (SZSE), and the Beijing Stock Exchange, released consultation guidelines for corporate sustainability disclosure. This marks a significant step towards promoting transparency and accountability in the country's financial markets. Companies included in the SSE 180, STAR 50, SZSE 100 indexes, and the ChiNext Index, as well as those listed both domestically and internationally, are required to publish their 2025 sustainability reports before April 30, 2026.

Source：SCMP (https://www.scmp.com/business/china-business/article/3251570/mainland-chinas-stock-exchanges-issue-first-guidelines-corporate-sustainability-disclosure)

 

China announced new regulations for carbon emissions trading system with focus on data quality management 

China announced that Premier Li Qiang has signed new regulations for its carbon emissions trading system, including allocating responsibility to government ministries for overseeing and managing trading, and introducing stricter penalties for entities that falsify information, aimed at providing a legal framework for the country’s carbon market and strengthen control of greenhouse gas emissions in carbon intensive sectors.

Source: ESG Today (https://www.esgtoday.com/china-sets-tougher-regulations-for-carbon-trading-market/)

 

China issued notices to strengthen the connection between green electricity certificates and policies related to energy conservation and decarbonization

The National Development and Reform Commission, the National Bureau of Statistics, and the National Energy Administration recently jointly issued the "Notice on Strengthening the Alignment of Green Electricity Certificates with Energy Conservation and Carbon Reduction Policies to Promote Non-Fossil Energy Consumption" to further strengthen the connection between green electricity certificates with energy conservation and carbon reduction policies, expands the application scenarios of green certificates, and promotes the completion of the binding targets for energy intensity reduction in the "14th Five-Year Plan".

 

Source：People’s Daily (http://paper.people.com.cn/rmrb/html/2024-02/05/nw.D110000renmrb_20240205_3-13.htm)

 

China Climate Bulletin 2023 is rolled out

According to the Bulletin, in 2023, China's climate was characterized by an obviously warm and dry pattern, leading to waterlogging and drought in particular. The national average temperature was the highest on record, the precipitation the second lowest since 2012, while the national average number of precipitation days the second lowest on record.

Source: World Meteorological Organization (WMO)(https://wmo.int/media/news-from-members/china-climate-bulletin-2023-rolled-out#:~:text=The%20national%20average%20number%20of%20hot%20days%20was%204.4%20days,National%20Climate%20Centre%20(NCC).)

 

Sustainable Finance Certification Completed by Lianhe Green