Hi, welcome to our first edition, where we share important regulatory changes in sustainable development and highlight a few upcoming important climate conference in China.

Regulatory Advances: Setting New Standards

Guidelines for Sustainable Development Reports: In a landmark move, the Shanghai, Shenzhen, and Beijing Stock Exchanges have jointly released the "Guidelines for Sustainable Development Reports of Listed Companies," effective from May 1, 2024. Read more here.

  • According to the 'Guidelines', companies that are continuously included in the SSE 180, Sci-Tech Innovation Board 50, SZSE 100, and GEM Index samples during the reporting period, as well as companies listed both domestically and overseas, are required to disclose 'Sustainable Development Reports' in accordance with the 'Guidelines'. Other listed companies are encouraged to voluntarily disclose.
  • The 'Guidelines' clarify the disclosure content and principles for listed companies, requiring that sustainable development issues of financial significance should be analyzed and disclosed around the four core contents of 'Governance—Strategy—Impact, Risk, and Opportunity Management—Indicators and Targets'.
  • Five index and ESG rating agencies including CSI, CNI, Wind, Commodity Path, and China Chengxin International have actively responded and referred to the 'Guidelines' to continuously strengthen the construction of the ESG rating system.

The China Listed Companies Association released a series of comparative analysis reports to help listed companies and market participants better understand the similarities and differences between the 'Guidelines' and overseas sustainable information disclosure standards.

Incorporating ESG into Credit Ratings: Further bolstering green financial systems, the Central Bank, in collaboration with six other departments, has unveiled guidelines to integrate ESG considerations into credit ratings. Read more here.

  • Over the next five years, an internationally leading financial support system for green and low-carbon development will be fundamentally established; by 2035, various economic and financial policies for green and low-carbon development will be promoted in a coordinated and efficient manner.
  • One of the highlights of the 'Guidelines' is the first official proposal to include ESG in credit ratings. Article 7 of the 'Guidelines' suggests: Encouraging credit rating agencies to establish and improve the rating system for green financial products, and support credit rating agencies in incorporating Environmental, Social, and Governance (ESG) factors into credit rating methods and models.
  • The 'Guidelines' indicate the need to promote gradual carbon accounting in the financial system; continuously improve the green finance standard system.

Financing the Green Transition

Beijing Century Yun'an New Energy: Marking a significant leap in green transportation, Beijing Century Yun'an New Energy has secured a substantial A+ round of funding for expanding its innovative charging solutions for new energy vehicles. This investment underscores the growing market and infrastructure for electric vehicles in China. Read more here.

Green Kangcheng's Bio-Tech Breakthroughs: In the biotechnology sector, Green Kangcheng Biotechnology has completed a promising Angel+ funding round. The company's focus on synthetic biology for producing high-value chemicals from renewable resources represents a significant step forward in green manufacturing. Read more here.

Spotlight on Green Conferences

Energy Storage International Summit and Exhibition: Hosted in Beijing from April 10 to 13, this event brought together industry leaders to explore new productive forces in energy storage and the role it plays in energy transition. The summit highlighted China's efforts in shaping international standards for green technology.

China International Environmental Protection Exhibition (IE expo China 2024): Scheduled for April 18 to 20 in Shanghai, this flagship exhibition is set to showcase cutting-edge ecological and environmental protection technologies, reflecting the industry's evolution towards higher standards and innovation.

Shanghai Climate Week 2024: Poised to be a global platform for climate action discussions, the inaugural Shanghai Climate Week on April 22 to April 26 aligns with China's dual carbon goals. It represents a significant effort to share China's climate initiatives with the world and to foster international cooperation in green development.

Towards a Greener Tomorrow

Through regulatory reforms, strategic investments, and global collaborations, China is not only amplifying its voice in the global environmental dialogue but also setting new benchmarks for green development.

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