In recent years, the world has actively faced a series of environmental and economic crises caused by climate change. The signing of the Paris Agreement has pointed out the general direction for global green and low-carbon transformation. As the world's largest developing country, China attaches great importance to addressing the severe challenges posed by global climate change and has announced a series of national policies to support this effort.Among them, the '14th Five-Year Plan' advocates for major strategic decisions of 'carbon peak and carbon neutrality', and has formulated a carbon reduction timeline and roadmap.
As an important national economic region, the Guangdong-Hong Kong-Macao Greater Bay Area is embracing opportunities and challenges of green economic transformation under the impetus of national policies. 2021year12month10On the same day, the inauguration ceremony of the Greater Bay Area Carbon Neutrality Association was held at the Hong Kong Convention and Exhibition Centre. The ceremony was attended by Mr. Hu Bojie, Vice Chairman and Executive Director of Peiran Environmental Consulting Co., Ltd., the founding president of the Association, together with Mr. Zhang Guoyi, Deputy Director of the Publicity and Culture Department of the Central People's Government Liaison Office, Mr. Liu Zhiming, General Manager of the Beijing-Hong Kong Talent Exchange Center, and Mr. Wong Kin-sing, Secretary for the Environment of the Hong Kong Special Administrative Region.GBS, JPMr. Zhang Xialing, Vice President and President of the Hong Kong Chinese Enterprise Association, and Academician Chen Qingquan of the Chinese Academy of Engineering, co-hosted the event.
At the ceremony, Mr. Hu Bojie, Vice Chairman and Executive Director of Peiran Environmental Protection Consulting Co., Ltd., the founding president of the association, delivered speeches respectively to8Member of the Joint Expert Committee of the Senior Advisory Group and16The HKIFC issued letters of appointment and membership certificates to the members, and this event was also attended by representatives from Digital Harbour, Hong Kong Listed Companies Chamber of Commerce, Hong Kong Green Building Council, Chartered Management Accountants Association, Hong Kong Institute of Certified Public Accountants, Hong Kong Association of Financial Advisors and Hong Kong Federation of Manufacturers.56Support from the institution.
The Greater Bay Area Carbon Neutrality Association was jointly initiated by Mr. Hu Bojie, Vice Chairman and Executive Director of Peiran Environmental Consulting Co., Ltd., Mr. Xu Zhuliang, Chairman of the Board of Directors of Jinshan Energy Group, Ms. Wu Min, President of Huarong Jinke Group, Mr. Geng Guohua, Executive Director and Chief Executive Officer of Aide New Energy Investment Holdings Group and Global Partner of Frost & Sullivan and President of Greater China Region, Dr. Wang Xin, Global Partner of Frost & Sullivan and President of the Asia-Pacific Region. The association aims to build a closer network within the region and convergeGather talents from all sectors of society and promote cross-sectoral cooperation in academia, innovation, finance, and other industries, with the aim of collectively contributing to achieving carbon neutrality over time.
Frost & Sullivan (Frost & Sullivan, abbreviated as: Frost & Sullivan) is a founding member of the Greater Bay Area Carbon Neutrality Association. Dr. Wang Xin, a Global Partner at Frost & Sullivan and President of Greater China, serves as the Vice-Chairman of the Association's founding board, and has been invited to give an opening speech at the 2021 Green Venture Capital Summit hosted by the Greater Bay Area Carbon Neutrality Association.
Since China announced its goal to achieve carbon peak by 2030 and carbon neutrality by 2060, the value of the dual carbon target, as well as how to achieve this goal, have become topics of widespread concern across all sectors of society.Dr. Wang Xin stated that the implementation and achievement of the dual carbon goal will bring about a systemic transformation to society.
Since China announced its action plans to achieve peak carbon dioxide emissions by 2030 and carbon neutrality by 2060, the value of such targets and the ways of implementation have attracted wide attention from all walks of life.Neil Wang, Ph.D., said that the implementation and integration of carbon peak and carbon neutrality policies will bring about a systemic revolution in society.
Firstly, it is to promote the rapid and sustainable development of new energy sources, reduce the proportion of fossil energy in China's energy consumption, facilitate the transformation of the energy structure, and ensure China's energy security. In the past few years, driven by various favorable policies, China's new energy industries such as photovoltaics and wind power have developed rapidly, with the proportion of new energy power generation continuously increasing; China's energy structure has also been continuously optimized. In the next few decades, new energy industries represented by photovoltaics and wind power will continue to be a focus of national development, and new energy power generation will become the main energy structure in China in the future.
Firstly, the 'dual carbon' goal has driven new energy development rapidly and continuously. The goal allows for the reduction of fossil energy usage within China's energy consumption, which promotes the transformation of the energy mix and ensures our country's energy security. In recent years, China's new energy industries, such as photovoltaic and wind power industries, have developed rapidly under the promotion of various favorable policies, and the percentage rate of new energy power generation has been rising. China's energy mix has achieved continuous optimization under these circumstances. In the next few decades, the new energy industry, especially represented by photovoltaic and wind power markets, will remain as the focus of national development. New energy power generation will also become the major energy mix of China in the future.
Secondly, this is closely related to everyone's life. The achievement of the dual carbon target and the mitigation of the greenhouse effect will significantly improve our ecological environment and enhance our quality of life.
Secondly, the 'dual carbon' goal is closely related to our lives. Achieving the 'dual carbon' goal and alleviating the greenhouse effect will significantly improve our ecological environment and enhance our quality of life.
Thirdly, the implementation of the dual carbon target will force China's industrial upgrading and change the existing economic pattern. To achieve carbon neutrality, many industries with significant scale will undergo a complete reshuffle from raw materials, production and manufacturing to the consumer end.
Thirdly, the implementation of the 'dual carbon' goal will compel industrial upgrades and alter the current economic landscape. To achieve carbon neutrality, many large-scale industries will undergo a thorough transformation across their entire value chains—from raw materials and manufacturers to consumer end-users.
Fourth, carbon neutrality will driveESGinvestment. Against the backdrop of the dual carbon goal, China, and even the worldESGInvestment will accelerate development and empower the low-carbon transformation of the entire society.
Fourthly, carbon neutrality will drive ESG investment. In the context of the 'dual carbon' goal, China and the rest of the world will accelerate development on ESG investment and empower low carbonization across society.
What is itESGInvest?
What is ESG investment?
Dr. Wang Xin further explained, ESGInvestment, which focuses on environment, society, and governance, is an important lever for the comprehensive green transformation of China's economic and social development. In order to achieve the dual carbon goals as scheduled, the Fifth Plenary Session of the 19th Central Committee of the Communist Party of China put forward the major deployment of 'promoting a comprehensive green transformation of economic and social development'. Governments and regulatory agencies at all levels have actively promoted it.ESGConcept, establishmentESGDisclosure standards, improvementESGInformation disclosure, promoting enterprisesESGPractice, give full play toESGThe incentive and restraint roles of investment in promoting the 'dual carbon goals'. He pointed out,ESGAs a new type of investment concept and standard, it holds great value for the economic development of enterprises, society, and the country. At present, the United Nations Global Compact has gathered1.2More than 10,000 leading enterprises, followingESGThe asset scale managed by concept-driven investment institutions exceeds100trillion dollarsESGInvesting has become the focus of global investment institutions.
Neil Wang further explained that ESG investment is a concept that focuses on environment, society and governance, and it is an important grasp for the comprehensive green transition of China's economic and social development. To achieve the "dual carbon" goal in a timely manner, the "Fifth Plenary Session of the Nineteenth CPC Central Committee" has put forward the major deployment of "promoting eco-friendly economic and social development in all aspects". Governments and regulators at all levels actively promote the ESG concept, establish ESG disclosure standards, improve ESG information disclosure, stimulate ESG practices in enterprises, and maximize the incentive action brought by ESG investment while promoting the "dual carbon" goal. Neil Wang, a professor at the National University of Singapore's Business School, pointed out that as a new investment concept and guideline, ESG provides great value to enterprises, society, and national economic development. Currently, the United Nations Global Compact has gathered over 12,000 pioneering companies and an asset size of over USD100 trillion managed under investment institutions that follow the ESG concept. ESG investment has already become the main focus of global investment institutions.
According to the analysis of Frost & Sullivan,ESGThe value is mainly reflected in two aspects:
According to Frost & Sullivan's analysis, the value of ESG is mainly reflected in two aspects:
01 ESGPromote the concept of green investment
ESG Drives the Promotion of Green Investment Philosophy
The dual carbon goal highlights the importance of environmental protection and developing green economy for our country, as well as the level of attention paid by the Party and the state. At the same time, our country has implemented many measures in areas such as clean energy and environmental protection, including investments in photovoltaic, wind power, and other clean energy technologies, all of which reflectESGAnd the concept of green investment has been integrated into China's economic development and construction.
The 'dual carbon' goal highlights the importance of the environment and the development of green economy for our country, reflecting the priority given by the party and the state. Meanwhile, China has implemented various initiatives in the fields of clean energy and environmental protection, including investments in photovoltaic, wind power and other technologies in clean energy. These efforts all reflect the integration of ESG and the concept of green investment into the construction of China's economic development.
02Energy conservation and environmental protection Guard the Earth
Strengthen corporate social responsibility and increase the information disclosure ratio
ESGThe requirements and standards put forward for enterprises in terms of social responsibility further boost the regulation and fulfillment of corporate social responsibility. Data shows that,ESGDriven by investment concepts, listed companies in China areESGThe willingness to disclose reports has significantly increased.2020yearAListed company announcementsESGThe number of related reports has reached1,021Home, proportion27%Among them, Shanghai and Shenzhen300Among259DisclosureESGRelevant reports, accounting for more than86%, indicating that leading Chinese enterprises already have a strongESGdisclosureConsciousness and social responsibility.
ESG sets high requirements and standards for companies at the societal level and has played a significant role in boosting regulation and fulfillment of corporate social responsibilities. Data shows that under the promotion of ESG investment philosophy, listed companies in China have significantly increased their willingness to disclose ESG reports. In 2020, the number of A-share listed companies that disclosed ESG-related reports reached 1,021, accounting for 27% of the total number of A-share listed companies. In particular, 259 companies from the CSI 300 Index disclosed ESG-related reports, accounting for 86% of all 300 companies. This reflects that pioneering Chinese companies have already established a strong consciousness in ESG disclosure and social responsibility.
Dr. Wang Xin emphasized that China has unlimited potential in the field of green finance and will become a major global player.ESGOne of the markets, globallyESGIt plays an important role in the market. Frost & Sullivan believes that globallyESGThe investment scale will continue to grow, especially in China, over the next few years, or even decades.ESGThe investment scale will witness explosive growth.
Neil Wang, Dr., emphasized that China has unlimited potential in the field of green finance and will become one of the main ESG markets that play a critical role in the global ESG market. Frost & Sullivan believes that the scale of ESG investment will maintain a continuous uptrend, especially in China. It is expected that the ESG investment scale will usher in explosive growth in the coming years or decades.
Frost & Sullivan has been continuously paying attention to green investment and has produced a large number of forward-looking reports on green industries, guiding investors to focus on China's green sector. "Green venture capital is an important lever for China to implement its carbon neutrality goals. Carbon neutrality is a catalyst for accelerating the significant transformation of our energy sector, improving our ecological environment, and enhancing the quality of life. Frost & Sullivan will continue to pay attention to carbon neutrality and fully support the country in achieving its carbon neutrality targets," said Dr. Wang Xin.
Throughout this period, Frost & Sullivan has maintained attention in green investment while producing a large number of related forward-looking reports that have guided investors to focus on China's green industry. Neil Wang, Partner at Frost & Sullivan, stated, "Green ventures are a key driver for achieving China's carbon neutrality goal. Carbon neutrality is a booster that accelerates significant transformation in China's energy sector, improves our ecological environment, and enhances our quality of life. Frost & Sullivan will continue to closely monitor carbon neutrality and fully support our country in achieving this goal."
About the Greater Bay Area Carbon Neutrality Association
The association is a non-profit organization composed of scientific research institutions, universities, industry experts, funds, financial institutions, media, groups, enterprises, and individuals who support environmental protection and carbon neutrality. Its purpose is to provide members with services related to carbon neutrality, environmental protection and emission reduction, as well as related design, consulting, evaluation, certification, rating, valuation, expert opinions, talent training, academic and industry exchanges, introduction and exchange of new technologies, international promotion and exchanges, joint project research and development, project delivery and implementation, green finance and capital market operations. It is committed to promoting the transformation of the green carbon neutrality industry in the Greater Bay Area, advancing the development of green technology, actively developing the green finance and carbon trading market in the Greater Bay Area, and taking the lead in promoting carbon neutrality and development in various regions with the advantages of the Guangdong-Hong Kong-Macao Greater Bay Area. It aims to contribute to the country's climate change commitments and influence the world.
