【ESG News】Global Trends Biweekly Newsletter Issue 4 (2024.3.25-2024.4.5)

Hong Kong China ESG trends

Government issues vision statement on developing sustainability disclosure ecosystem in Hong Kong

The Government today (March 25) issued a vision statement on developing the sustainability disclosure ecosystem in Hong Kong. The statement sets out the vision and approach of the Government and financial regulators in developing a comprehensive ecosystem for sustainability disclosure in Hong Kong. The Hong Kong Institute of Certified Public Accountants will develop the local sustainability reporting standards (Hong Kong Standards) aligned with the ISSB Standards as well as the complementary application and implementation guidance. The Hong Kong Standards are intended for cross-sectoral observance, including listed companies and regulated financial institutions, such as banks, fund managers, insurance companies, and Mandatory Provident Fund (MPF) trustees, etc. A phased implementation approach will be adopted, with application of the Hong Kong Standards prioritised for publicly accountable entities such as listed companies and regulated financial institutions. The Government will work with financial regulators and stakeholders to develop a roadmap on the appropriate adoption of the ISSB Standards, and aim to launch the roadmap within 2024 to provide a transparent and well-defined pathway on sustainability reporting for businesses in Hong Kong as well as sufficient time for making preparations and developing readiness for the pragmatic implementation of the Hong Kong Standards.

Source: Hong Kong Government (https://www.info.gov.hk/gia/general/202403/25/P2024032500391.htm?fontSize=1)

International ESG trends

SEC Pauses Climate Disclosure Rules Amidst Legal Challenges

The U.S. Securities and Exchange Commission announced that it has paused the implementation of its recently released climate disclosure rules requiring companies to report on climate-related risks and greenhouse gas (GHG) emissions, as it awaits a court review of the new rules following a series of legal challenges by several states and business groups.

Source: ESG Today (https://www.esgtoday.com/sec-pauses-climate-disclosure-rules-amidst-legal-challenges/)

EU Council Fails to Approve Landmark Nature Restoration Law

A key piece of legislation in the EU aimed at protecting and restoring natural ecosystems was dealt a major setback on Monday, with its removal from the agenda for an approval vote in the European Council after failing to maintain the necessary support by member states to enable its approval. The legislation, the Nature Restoration Law, included a mandated target for EU countries implement measures to restore at least 20% of the EU’s land and sea areas by 2030, and for all ecosystems in need of restoration by 2050.

Source: ESG today (https://www.esgtoday.com/eu-council-fails-to-approve-landmark-nature-restoration-law/)

Biden Administration Invests $6 Billion in Industrial Decarbonization Projects

The U.S. Department of Energy (DOE) announced today the selection of 33 projects to be awarded up to $6 billion in funding aimed at advancing technologies to help significantly reduce emissions across hard-to-decarbonize industries across sectors including chemicals, steel, food, refining and cement, among others.

Source: ESG today (https://www.esgtoday.com/biden-administration-invests-6-billion-in-industrial-decarbonization-projects/)

Mainland China ESG trends

The State-owned Assets Supervision and Administration Commission of the State Council will soon issue the Guiding Opinions on Central Enterprises to Fulfill Their Social Responsibilities with High Standards in the New Era

The State-owned Assets Supervision and Administration Commission of the State Council is about to issue the Guiding Opinions on Central Enterprises to Fulfill their Social Responsibilities with High Standards in the New Era to promote the ESG construction of central enterprises. As an investment concept that focuses on corporate environmental, social and governance performance rather than financial performance, ESG has become a new "yardstick" to measure corporate sustainability. Wang Yang, deputy director of the Social Responsibility Bureau of the State-owned Assets Supervision and Administration Commission of the State Council, previously said that for state-owned enterprises, the ESG concept fits a series of development requirements such as China's green development, carbon peak, carbon neutrality, and modern governance to build a community of human destiny. Therefore, we should take the lead in promoting the localization of ESG concept.

Source: 21jingji (https://m.21jingji.com/timeline/2d3836f4cbbff30148c9288663a49d8e.html)

The compilation work of CAS-SD6.0, the Sustainable Development Reporting Guide for Chinese Corporates, was officially launched

On the 25th, "ESG China Forum · Yuetan Salon - Guide 6.0 Launch and 'China ESG Research Ten Topics (2024)' focused opening meeting" was held in Beijing. Peng Huagang, president of the China Enterprise Reform and Development Research Association, former member of the Party Committee and Secretary-General of the State-owned Assets Supervision and Administration Commission of the State Council, said at the opening meeting that after years of precipitation and development, "CASS Series of Chinese Corporate Social Responsibility reporting Guidelines" has grown into the earliest development time, the most extensive application coverage, and the most significant international influence of the local sustainable development information disclosure guidelines. In the past two years, with the continuous upgrading of the standard guidelines for the disclosure of sustainable development information at home and abroad, in order to keep pace with the latest standard guidelines at home and abroad and better guide Chinese corporates to prepare high-quality sustainable development reports, it is of great significance and far-reaching influence to start the compilation of the Guide for Chinese Enterprises' Sustainable Development Reporting CAS-SD 6.0.

Source： Securities Daily (http://www.zqrb.cn/gscy/qiyexinxi/2024-03-26/A1711449427247.html)

Sustainable Finance Certification Public and Completed by Lianhe Green