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 major strategic decisions on '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 in green economic transformation under the impetus of national policies.On December 10, 2021, the founding ceremony of the Greater Bay Area Carbon Neutrality Association was held at the Hong Kong Convention and Exhibition Centre.The ceremony was presided over by Mr. Hu Bojie, Vice Chairman and Executive Director of Peiran Environmental Consulting Co., Ltd., who is also the founding President of the Association. Together with Deputy Minister Zhang Guoyi from the Publicity Department of the Central Committee Liaison Office, Mr. Liu Zhiming, General Manager of the Beijing-Hong Kong Talent Exchange Center, Mr. Wong Kin-sing, Secretary for the Environment of the Hong Kong Special Administrative Region, Mr. GBS, JP, Vice President and President of the Hong Kong China Enterprise Association, and Academician Chen Qingquan of the Chinese Academy of Engineering, they jointly hosted the event.
At the ceremony, Mr. Hu Bojie, Vice Chairman and Executive Director of Peiran Environmental Protection Consultants Limited, the founding president of the association, presented appointment letters and membership certificates to 8 members of the Joint Expert Committee of the Senior Advisory Group and 16 founding members respectively. This event was also supported by 56 institutions including Cyberport, Hong Kong Listed Companies Chamber of Commerce, Hong Kong Green Building Council, Chartered Management Accountants Association, Hong Kong Financial Advisers Association, and Hong Kong Manufacturers Federation.
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 at Frost & Sullivan, and Dr. Wang Xin, Global Partner at Frost & Sullivan and President of Greater China. The association is committed to building a closer network within the region, bringing together talents from all sectors of society, and promoting cross-border cooperation in academia, innovation and finance, with the aim of collectively achieving carbon neutrality goals.
Frost & Sullivan (Frost & Sullivan, abbreviated as Frost & Sullivan) is a founding member of the Greater Bay Area Carbon Neutrality Association. Dr. Wang Xin, Global Partner and President of Greater China at Frost & Sullivan, serves as the Vice-President of the association's founding board and was 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 of achieving 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, MD, 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 generation continuously increasing; China's energy structure has also been continuously optimized. In the coming decades, new energy industries represented by photovoltaics and wind power will continue to be a focus of national development, and new energy 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. This goal enables a reduction in fossil energy use 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, have developed rapidly under the promotion of various favorable policies, and the proportion of new energy power generation has been increasing. Under these circumstances, China's energy mix has achieved continuous optimization. In the next few decades, the new energy industry, especially represented by the photovoltaic and wind power markets, will continue to be a focus of national development. New energy power generation will also become the main 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 goal will force China's industrial upgrading and change the existing economic pattern.To achieve carbon neutrality, many industries with significant scale will have to restructure 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 value chains—from raw materials and manufacturers to the consumer end.
Fourth, carbon neutrality will drive ESG investment.Against the backdrop of the dual carbon goal, ESG investment in China and even globally will accelerate its development and empower the entire society towards low-carbonization.
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 ESG investing?
What is ESG investment?
Dr. Wang Xin further explained,ESG investment is an investment philosophy that focuses on the environment, society, and governance. It 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 actively promote the ESG concept, establish ESG disclosure standards, improve ESG information disclosure, encourage corporate ESG practices, and give full play to the incentive and restraint role of ESG investment in promoting the 'dual carbon goals'.He pointed out that ESG, as a new type of investment concept and standard, holds immense value for the economic development of enterprises, society, and the country.Currently, the United Nations Global Compact has gathered more than 12,000 leading enterprises, and investment institutions managing assets in accordance with ESG principles exceed $10 trillion. ESG investing has become a focus for 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 are actively promoting the ESG concept, establishing ESG disclosure standards, improving ESG information disclosure, stimulating ESG practices in enterprises, and maximizing the incentive action brought about 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 with assets exceeding USD100 trillion managed by investment institutions following the ESG concept. ESG investment has already become the main focus of global investment institutions.
According to the analysis of Frost & Sullivan, the value of ESG is mainly reflected in two aspects:
According to Frost & Sullivan's analysis, the value of ESG is mainly reflected in two aspects:
01 ESG drives the promotion of green investment concepts
ESG Drives the Promotion of Green Investment Philosophy
The dual carbon goal highlights the importance of environmental and green economic development for our country, as well as the level of attention paid by the Party and the state. At the same time, China has implemented many measures in areas such as clean energy and environmental protection, including investments in photovoltaic, wind power, and other clean energy technologies, which reflect that ESG and green investment concepts have been integrated into China's economic development and construction.
The 'dual carbon' goal underscores the importance of the environment and the development of green economy for our country, reflecting the priority given by the Party and the state. At the same time, 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.
02 Energy conservation and environmental protection, safeguarding the earth
Strengthen corporate social responsibility and increase information disclosure ratio
ESG's requirements and standards for corporate social responsibility at the societal level further boost the regulation and fulfillment of corporate social responsibilities. Data shows that driven by the ESG investment philosophy, the willingness of listed companies in China to disclose ESG reports has significantly increased. In 2020, A-share listed companies issued 1,021 ESG-related reports, accounting for 27%. Among them, 259 companies from the CSI 300 index disclosed ESG-related reports, accounting for over 86%, indicating that leading Chinese enterprises already have a strong awareness of ESG disclosure and social responsibility.
ESG sets high requirements and standards for companies at the societal level and has played a significant role in promoting regulation and fulfilling 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 awareness in ESG disclosure and social responsibility.
Dr. Wang Xin emphasized that China has unlimited potential in the field of green finance and will become one of the world's major ESG markets, playing an important role in the global ESG market.Frost & Sullivan believes that the global scale of ESG investment will continue to grow, especially in China, where the scale of ESG investment is expected to experience explosive growth over the next few years or even decades.
Neil Wang, Dr. of Peking University and former Deputy Governor of the People's Bank of China, 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 continue to rise, especially in China. It is expected that the ESG investment scale will experience 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 that accelerates the significant transformation of our energy sector, improves our ecological environment, and enhances 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.Dr. Neil Wang stated that 'Green venture is a key approach for implementing the carbon neutrality target in China. 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 follow carbon neutrality and fully support our country in implementing the carbon neutrality target.'
About the Greater Bay Area Carbon Neutrality Association
This 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 aim is to provide members with services related to carbon neutrality such as environmental protection, emission reduction, design, consulting, evaluation, certification, rating, valuation, expert opinions, talent training, academic and industry exchanges, introduction and exchange of new technologies, international promotion and exchange, joint project 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 markets in the Greater Bay Area, and taking the lead in promoting carbon neutrality and development in various regions based on the advantages of the Greater Bay Area, contributing to the country's climate change commitments and influencing the world.
