【ESG News】Global Trends Biweekly Newsletter Issue 20 (2024.11.4-2024.11.17)

Hong Kong China ESG trends

HKMA and Multilateral Organisations Enhance Strategic Partnership for Climate Investment in Asia

The Hong Kong Monetary Authority (HKMA), has joined hands with multilateral organisations, including the Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), and International Finance Corporation (IFC), a member of the World Bank Group, to announce a strategic partnership at the Asia Climate Investment Seminar on 11 November. The partnership marks a significant step towards strengthening strategic cooperation in sustainable finance in Asia.

The strategic partnership serves as a call to action for all stakeholders to unite against climate change, with Actis GP LLP (Actis) being one of the General Partners supporting the initiative, aiming to deploy at least US$500 million in Asia. The partners emphasise the importance of a collaborative approach involving multiple partners and institutions to address sustainability challenges in the region. They will focus on investments in sectors that contribute to achieving net zero emissions and reducing greenhouse gases in the region, including renewable energy infrastructure, energy solutions and sustainable transportation.

Source: Hong Kong Monetary Authority - HKMA and Multilateral Organisations Enhance Strategic Partnership for Climate Investment in Asia

The Hong Kong Government promulgated the Action Plan on Green Maritime Fuel Bunkering

The Hong Kong Government promulgated the Action Plan on Green Maritime Fuel Bunkering on November 15. The Action Plan sets out five green-centric strategies and 10 actions, covering a wide range of areas such as the supply of green maritime fuels, infrastructural support, port emissions reduction, incentive measures, collaboration with the Mainland and overseas, and talent training.

The Action Plan sets out a number of targets, including following the emission reduction target set by the IMO to reach net-zero carbon emissions from international shipping by or around 2050; reducing carbon emissions from Hong Kong-registered ships by at least 11% (compared to 2019) and ensuring that 55% of the diesel-fuelled vessels in the Government fleet switch to using green maritime fuels by 2026; and reducing carbon emissions from the Kwai Tsing Container Terminals by 30% (compared to 2021), as well as ensuring that 7% of Hong Kong-registered ships take up green maritime fuels by 2030.

Source: https://www.info.gov.hk/gia/general/202411/15/P2024111500574.htm?fontSize=1

International ESG trends

UN Climate Conference COP29

This year’s UN climate conference, COP29, will bring together leaders from government, business, and civil society seeking tangible solutions to the defining issue of our time, as global temperatures reach record highs and people worldwide are impacted by extreme weather events.

A key focus of COP29 will be on finance, as trillions of dollars are required for countries to drastically reduce greenhouse gas emissions and protect lives and livelihoods from the worsening impacts of climate change.

The conference, which will take place in Baku, Azerbaijan, from 11 to 22 November 2024, will also be a key moment for countries to present their updated national climate action plans under the Paris agreement, which are due by early 2025. If properly implemented, they are expected to limit global warming to 1.5°C above pre-industrial levels.

Conference Outcomes (as of 11.18)

-        Article 6.4 of the Paris Agreement was ratified on the opening day ( November 11), officially launched the global carbon market.

Source: COP29 | UN News

UAE Commits to Cut Emissions by 47% by 2035 Ahead of COP29

The United Arab Emirates (UAE) has announced an ambitious climate plan ahead of next week’s COP29 climate summit in Azerbaijan, becoming the first major emitter to submit updated Nationally Determined Contributions (NDCs) before the February 2025 deadline. The UAE’s third NDC outlines a commitment to reduce greenhouse gas (GHG) emissions by 47% by 2035, compared to 2019 levels. This target aims to cut emissions from 196.3 MtCO2eq in 2019 to 103.5 MtCO2eq by 2035, supporting the country’s longer-term net zero ambition by 2050.

Source: https://esgnews.com/uae-commits-to-cut-emissions-by-47-by-2035-ahead-of-cop29/

ISO Launches Principles for ESG Performance and Reporting

The International Organization for Standardization (ISO) announced the launch of the ISO ESG Implementation Principles, a new set of guidance aimed at enabling companies globally to improve ESG integration, performance, measurement and reporting.

ISO's ESG Implementation Principles (IWA 48) is a high-level structure and set of principles designed to guide organizations in implementing and embedding Environmental, Social, and Governance (ESG) practices within their organizational culture. This document supports the management of ESG performance and facilitates measurement and reporting under existing frameworks, enabling consistency, comparability, and reliability of ESG reporting and practices globally.

Source: ISO Launches Principles for ESG Performance and Reporting - ESG Today

Mainland China ESG trends

The SSE, SZSE, and BSE Released Guidelines for the Compilation of Sustainability Reports.

The Shanghai Stock Exchange, Shenzhen Stock Exchange, and Beijing Stock Exchange have respectively drafted the "Shanghai Stock Exchange Listed Companies Self-Regulatory Guidelines No. 4 - Sustainability Reporting (Draft for Comments)", "Shanghai Stock Exchange Science and Technology Innovation Board Listed Companies Self-Regulatory Guidelines No. 13 - Sustainability Reporting (Draft for Comments)", "Shenzhen Stock Exchange Listed Companies Self-Regulatory Guidelines No. 3 - Sustainability Reporting (Draft for Comments)", "Shenzhen Stock Exchange ChiNext Board Listed Companies Self-Regulatory Guidelines No. 3 - Sustainability Reporting (Draft for Comments)", and "Beijing Stock Exchange Listed Companies Sustainability Reporting Guidelines", and are now soliciting public opinions.

Source: 沪深北交易所发布可持续发展报告编制指南

People's Republic of China Energy Law Officially Launched

On November 8th, the twelfth session of the Standing Committee of the 14th National People's Congress voted to pass the "People's Republic of China Energy Law" (hereinafter referred to as the "Energy Law"). This law consists of nine chapters, mainly including General Provisions, Energy Planning, Energy Development and Utilization, Energy Market System, Energy Reserves and Emergency, Energy Science and Technology Innovation, Supervision and Administration, Legal Liability, and Supplementary Provisions, which will come into effect from January 1, 2025.

After the promulgation of the "Energy Law", China will form a relatively complete and systematic energy legal system led by the "Energy Law", with several single laws such as the "People's Republic of China Electricity Law" and the "People's Republic of China Renewable Energy Law" as the main body, and administrative regulations and rules as an important part.

Source: National Energy Administration（https://www.nea.gov.cn/2024-11/09/c_1310787187.htm）

"Ministry of Ecology and Environment and Six Other Departments Launch 'Soil Pollution Source Prevention Action Plan'"

The overall goal is to achieve significant results in the prevention and control of soil pollution by 2027, with the qualification rate of hidden danger investigation and rectification for key soil pollution supervision units reaching over 90%, the safe utilization rate of contaminated arable land reaching over 94%, and the safe use of construction land being effectively guaranteed. By 2030, these indicators are expected to be further improved.

Source: https://www.mee.gov.cn/xxgk2018/xxgk/xxgk03/202411/t20241108_1093746.html

Sustainable Finance Certification Public and Completed by Lianhe Green