ESG News //
Shenzhen released the country's first municipal-level medium- and long-term plan for adaptation to climate change
On March 23, at the 2024 "World Meteorological Day" theme event in Shenzhen, the Shenzhen Municipal Bureau of Ecology and Environment released the "Shenzhen Climate Change Adaptation Plan (2023-2035)". The Plan is the first medium- and long-term plan for climate change adaptation at the municipal level in China, which aims to promote the construction of Shenzhen as a climate-resilient city in an orderly manner, comprehensively improve the ability to adapt to climate change, and strive to take the lead in the field of climate change adaptation. The Plan fully implements the National Strategy for Adaptation to Climate Change 2035, on the basis of in-depth assessment of Shenzhen's climate risks, focuses on the strategic positioning of "Pioneer of Sustainable Development", determines Shenzhen's construction goals for medium- and long-term climate adaptation, clarifies key areas of climate adaptation, action plans and implementation guarantee mechanisms, and builds a "1+4+17" climate change adaptation work system. With the vision of "a safer, more resilient, more livable and smarter Shenzhen", the Plan proposes four key tasks: building a safer urban foundation, shaping a more resilient urban system, creating a more livable urban environment, and building smarter urban management, and strives to build a climate-resilient urban development paradigm that matches the world's benchmark cities.
Shenzhen released the first carbon neutrality implementation plan for large-scale events at the municipal level
On April 3, it was learned from the Municipal Bureau of Ecology and Environment that the Bureau, together with the Municipal Development and Reform Commission and other 8 departments, jointly issued the "Shenzhen Large-scale Event Carbon Neutrality Implementation Plan", which is the first municipal-level carbon neutrality implementation plan in Shenzhen. According to the plan, by 2026, the city's government agencies, institutions and state-owned enterprises will take the lead in promoting carbon neutrality. It is reported that the "Plan" aims to actively respond to the national carbon peak and carbon neutrality strategy, encourage and standardize the implementation of carbon neutrality in Shenzhen's large-scale activities, accelerate the formation of a new way of green production and life, and help Shenzhen achieve the goal of carbon peak and carbon neutrality. The Plan clarifies the basic principles of carbon neutrality for large-scale events in Shenzhen, determines the main objectives, implementation scope, implementation requirements and safeguard measures of the carbon neutrality working mechanism for large-scale activities, and builds a "2+N+3" carbon neutrality work system for large-scale activities.
The preparations for the inclusion of the steel industry in the national carbon market are basically ready
The "2024 (15th) Iron and Steel High-Quality Development Conference" hosted by the Metallurgical Industry Planning and Research Institute was held recently, and the Ministry of Ecology and Environment introduced the progress of the steel industry's inclusion in the national carbon market, and experts and scholars discussed carbon reduction path measures. Lu Shize, deputy director of the Department of Climate Change of the Ministry of Ecology and Environment, said at the conference: "We are organizing carbon emission accounting guidelines and verification guidelines for the steel industry, including various technical preparations for quota allocation, which have been prepared for less than a year, and all documents are basically ready. Overall, the steel industry is indeed under great pressure to enter the carbon market. In particular, the process flow is particularly complex, and the energy flow and heat flow between each process intersect with each other, and how to accurately calculate the carbon emissions of each facility is indeed a relatively big test. Lu Shize revealed: "Starting in the second half of this year, enterprises in the steel industry will begin to report the number and conduct monthly storage. The monthly certification mechanism requires each enterprise included in the national carbon market to upload its key production data and emission data to our management platform every month as an important basis for annual carbon emissions. After being included in the national carbon market, steel companies will have a number of responsibilities and obligations. First, as the main body of carbon emission management, it is necessary to accurately report the number. Second, as the main body of carbon quota settlement and compliance, you can sell more quotas, and you must buy less quotas. The third is to take the initiative to accept carbon verification.
The guidelines for carbon emission accounting and verification in the cement industry are open for public comment, and the process of inclusion in the national carbon market is expected to be accelerated
On April 3, the Ministry of Ecology and Environment (MEE) publicly solicited the opinions of 17 units, including the National Development and Reform Commission, on the "Guidelines for Enterprise Greenhouse Gas Emission Accounting and Reporting for Cement Clinker Production" and the "Technical Guidelines for Enterprise Greenhouse Gas Emission Verification for Cement Clinker Production", becoming the third industry greenhouse gas emission accounting and verification technical guidelines for external consultation after the power generation industry and the electrolytic aluminum industry. From the perspective of the main revisions, 1) the key parameters of carbon emission accounting in the cement industry will be streamlined, from 15 to 4, 2) the applicable circumstances and values of relevant carbon emission factors, such as the deduction coefficients of five types of non-carbonate alternative raw materials and the value of process emission factors, and 3) the indirect emissions of non-fossil energy electricity will be clearly determined as 0. Overall, the operability and consistency of data verification are the main considerations in this revision.
The central government has issued special management measures for energy conservation, carbon reduction, and pollution control
On April 8, the National Development and Reform Commission issued the "Special Management Measures for Investment in the Central Budget for Energy Conservation and Carbon Reduction" and the "Special Management Measures for Investment in the Central Budget for Pollution Control", of which the support funds for a single project shall not exceed 100 million yuan in principle. The "Special Management Measures for Investment in Energy Conservation and Carbon Reduction in the Central Budget" points out that the special focus is on supporting energy conservation and carbon reduction in key industries and key areas, and the direction of circular economy to help carbon reduction, etc., and the key support content includes: carbon peak and carbon neutrality advanced technology demonstration and application projects, energy conservation and carbon reduction projects in key industries and key areas, circular economy to help carbon reduction projects, and others. The "Special Management Measures for Investment in the Central Budget for Pollution Control" points out that the special focus is on supporting the construction of urban environmental infrastructure, cleaner production transformation of key industries, environmental governance in key areas, water pollution control and water conservation, etc., and the key support content includes: urban environmental infrastructure construction, cleaner production transformation of key industries, environmental governance in key areas, water pollution control and water conservation, and others.
Notice of the CNCA on clarifying the filing requirements for directly carbon-related certification rules
On April 8, the CNCA issued a notice on clarifying the filing requirements for direct carbon-related certification rules, requiring all certification bodies to strictly follow the notice and carry out the filing of direct carbon-related certification rules through the unified reporting platform for certification and accreditation business information. The notice clarifies that the rules for direct carbon-related certification refer to the basic requirements and procedures for the implementation of carbon-related certification for products, management systems, services, etc. on the basis of the quantification of greenhouse gas emissions. According to the different purposes and needs of certification, the carbon-related certification rules are divided into three categories: carbon emission reduction/removal, carbon disclosure, and carbon neutrality. Product carbon neutrality certification is used to prove that the total amount of greenhouse gas emissions generated by the product within a certain period of time is zero, or to achieve net zero emissions. The carbon neutrality category should include the principle of effectively reducing greenhouse gas emissions by focusing on independent carbon emission reduction strategies, and then neutralizing unavoidable emissions through carbon offsetting.
Seven ministries and commissions, including the People's Bank of China: Guidance on further strengthening financial support for green and low-carbon development
The People's Bank of China and other seven departments recently jointly issued the Guiding Opinions on Further Strengthening Financial Support for Green and Low-Carbon Development, making clear plans for optimizing the green finance standard system, strengthening the constraint mechanism based on information disclosure, and promoting the development of green financial products and markets. On April 10, the relevant person in charge of the central bank answered reporters' questions on the "Guiding Opinions on Further Strengthening Financial Support for Green and Low-carbon Development", pointing out that the development of green financial products and markets will be promoted from five aspects: first, promote the construction of carbon emission trading market, and gradually expand the scope of trading entities suitable for the development of the mainland carbon market; The third is to further increase the capital market's support for green and low-carbon development, the fourth is to vigorously develop green insurance and services, and improve the insurance protection system for major risks related to climate change, and the fifth is to expand the participants in the green finance market.
The Regulations on Ecological Protection Compensation will come into force on June 1, 2024
Recently, Premier Li Qiang signed a decree of the State Council promulgating the Regulations on Ecological Protection Compensation, which will come into force on June 1, 2024. The "Regulations" have a total of 6 chapters and 33 articles, including clarifying the connotation of ecological protection compensation, clarifying the working principles, improving the working mechanism, standardizing the vertical financial compensation, improving the horizontal compensation between regions, encouraging and promoting the compensation of market mechanisms, and strengthening the guarantee and supervision and management. The "Regulations" encourage, guide and promote the establishment of ecological protection compensation mechanisms between ecologically beneficiary areas and the people's governments of ecological protection areas through consultation and other means, and encourage and guide social funds to establish market-oriented ecological protection compensation funds to participate in ecological protection compensation in an orderly manner in accordance with the law.
ESG Risk Analysis //
From March 30 to April 12, there were 4,879 ESG disputes in the A-share market, including 0 environmental disputes, 102 social disputes (94 low-risk events, 8 medium-risk events, and 0 high-risk events), and 4,824 governance events (2,927 low-risk events, 1,218 medium-risk events, and 679 high-risk events).
In terms of industry distribution, the industrial and information technology industries have a relatively high number of disputes, accounting for 36.71% of the total market, followed by the optional consumer goods and materials industries, accounting for about 14% of the total number of disputes, and the sum of the two is 27.77%, and the remaining seven industries have less than 10% of the number of disputes, accounting for 35.52% of the total (note: the industry classification is Wind Level 1).
From the perspective of event types, the disputes with high frequency mainly include financial losses or deterioration of indicators, changes in securities prices, changes in senior executives, problems of affiliated enterprises, abnormal share pledges, litigation disputes, shareholder reductions, abnormal assets, etc.
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