【ESG News】Global Trends Biweekly Newsletter Issue 23 (2024.12.16-2024.12.29)

Hong Kong China ESG trends

Good Practices on Transition Planning

On 16 December 2024, the Acting Executive Director of Banking Policy Department wrote to share with the industry some key observations and good practices on transition planning, based on the responses of authorized institutions (“AIs”) to a survey that the Hong Kong Monetary Authority (“HKMA”) conducted in Q4 2023.

Source: Good Practices on Transition Planning

International ESG trends

SBTi Updates Decarbonization Plans for Oil, Gas, Chemicals, and Power Sectors

The Science Based Targets initiative (SBTi) has released updated plans for its sectoral standards targeting the oil and gas, chemicals, and power industries—three of the largest global emitters. These updates aim to create science-aligned net-zero pathways, equipping businesses in high-emitting sectors with robust criteria to reduce their environmental impact.

The oil and gas industry is responsible for 85% of global CO2 emissions. SBTi’s new standard will guide companies on decarbonizing their business models while attracting financing and enabling a smooth energy transition. The draft is expected for public consultation in early 2025. The chemicals sector supports 95% of manufactured products and is the third-largest industrial emitter worldwide, contributing to key industries like agriculture, construction, and healthcare. SBTi’s Chemicals Sector Criteria is open for pilot testing and public consultation until January 10, 2025. The final criteria will be released in Q3 2025

Source: ESG news (https://esgnews.com/sbti-updates-decarbonization-plans-for-oil-gas-chemicals-and-power-sectors/)

Vietnam’s New Electricity Law Sets Framework for Renewable Energy Growth

Vietnam has enacted a new Electricity Law, effective February 1, 2025, to modernize its energy sector and create a robust framework for renewable energy development. The amended law addresses longstanding challenges in cost structures, regulatory frameworks, and market dynamics while promoting a competitive energy market and transitioning to sustainable energy sources.

Aligned with the Power Development Plan 8 (PDP8), the law targets over 60% of installed capacity from solar and wind energy by 2050. Current renewables contribute approximately 30%, underscoring the law’s role in scaling up efforts.

Source: ESG news (https://esgnews.com/vietnams-new-electricity-law-sets-framework-for-renewable-energy-growth/)

Mainland China ESG trends

The Ministry of Industry and Information Technology and Three Other Departments Jointly Issued the “Action Plan for Standard Improvement to Lead the Optimization and Upgrading of the Raw Material Industry (2025-2027)”

The “Action Plan” proposes that by 2027, the standard system that leads the raw material industry towards higher quality, better efficiency, better layout, greener development, and safer growth will be gradually improved, and the standard work mechanism will be more robust, continuously enhancing the standard technical level that promotes in-depth transformation and upgrading of traditional industries and innovative development of the new material industry.

Firstly, the standard system will be further optimized. Complete the standard evaluation and optimization of industries such as petrochemicals, chemical engineering, steel, non-ferrous metals, building materials, rare earths, and gold, and build a standard system that supports the high-quality development of the raw material industry on a per-industry basis. Secondly, the capacity for standard supply will be greatly improved. Publish and implement more than 200 digital transformation standards, more than 100 new material field standards, and more than 100 green and low-carbon standards, and promote the initiation of more than 10 mandatory national standards. Revise and formulate more than 500 basic general and quality improvement standards. Thirdly, the implementation and application of standards will continue to be deepened. Focusing on key areas of raw materials such as digital transformation, green and low-carbon, and new materials, select more than 300 outstanding standard application cases and more than 100 typical scenarios.

Source: https://www.gov.cn/zhengce/202412/content_6993147.htm

Ministry of Ecology and Environment Approves the “Pilot Assessment Method for the Progress of ‘Zero Waste Cities’ Construction”

On December 18th, Huang Runqiu, Minister of the Ministry of Ecology and Environment, presided over the executive meeting of the ministry, conveyed the spirit of the State Council’s executive meeting, and reviewed and approved in principle the “Pilot Assessment Method for the Progress of ‘Zero Waste Cities’ Construction” and the “Regulations on Environmental Radiation Protection for Nuclear Power Plants”.

The meeting emphasized that the formulation of the “Pilot Assessment Method for the Progress of ‘Zero Waste Cities’ Construction” is an important measure to implement the deployment requirements of the Party Central Committee and the State Council, and to promote the high-quality construction of “Zero Waste Cities”. The meeting pointed out that the revision of the “Regulations on Environmental Radiation Protection for Nuclear Power Plants” is of great significance for strengthening the supervision of environmental protection during and after the operation of nuclear power plants, and ensuring nuclear and radiation safety.

Source: https://www.eco.gov.cn/index.php/news_info/74089.html

The “2025 Caijing Sustainable Development Summit Forum” with the Theme of “Green Transformation, Creating a Shared Future” was Successfully Held in Beijing.

As an annual event of Caijing, this forum focused on topics such as firmly promoting green transformation, cultivating patient capital, developing new forms of productive forces, and being an advocate of ESG (Environmental, Social and Governance). It invited experts and scholars from regulatory authorities, academic circles, domestic and foreign listed companies, and financial institutions to gather together. They engaged in high-level intellectual exchanges and debates, discussing the changes and missions, the present and the future, the practice and perseverance, as well as the challenges and opportunities of sustainable development. This provided more valuable references for the green transformation and sustainable development of domestic and foreign listed companies and financial institutions.

Source: https://finance.stockstar.com/IG2024121800039137.shtml

Sustainable Finance Certification Public and Completed by Lianhe Green