ESG News //
The National Green Certificate Issuance and Trading System was officially launched on June 30
On June 26, the National Energy Administration issued the "Announcement on the Launch of the National Green Certificate Issuance and Trading System", which is scheduled to be officially launched on June 30, 2024. In June 2023, the National Development and Reform Commission (NDRC) and the National Energy Administration (NEA) issued the Notice on Promoting Renewable Energy Electricity Consumption with Full Coverage of Renewable Energy Green Power Certificates, clarifying that green certificates are the only proof of the environmental attributes of renewable energy in mainland China, and clarifying the full coverage of green certificates. In addition, on June 24, the Ministry of Finance issued the Notice on the 2024 Renewable Energy Electricity Price Additional Subsidy Local Fund Budget, which clarified the priority allocation order and conditions of subsidy funds, including photovoltaic poverty alleviation projects, competitive photovoltaic projects, and projects determined by the principle of "revenue and expenditure".
The China Renewable Energy Development Report 2023 was released
On June 28, the General Institute of Hydropower and Water Conservancy Planning and Design released the "China Renewable Energy Development Report 2023". According to the report, as of 2023, about 470 million kW of new renewable energy power generation capacity will be installed globally, a year-on-year increase of 13.9%. More than 3.8 billion kW of renewable energy capacity has been installed globally. China's cumulative installed capacity of renewable energy exceeded 1.5 billion kW, a year-on-year increase of 24.9%, accounting for 51.9% of the country's total installed power generation capacity. Renewable energy accounts for nearly 40% of the world's installed renewable energy generation capacity. China's renewable energy generation reached 2.95 trillion kW·h, a year-on-year increase of 8.3%, accounting for 32% of the mainland's total electricity consumption, more than the combined electricity consumption of the 27 EU countries. The installed capacity of renewable source power generation in China has historically exceeded the installed capacity of thermal power, and the installed capacity of solar power and wind power has jumped to the second and third largest power sources in the mainland, and renewable energy power generation accounts for more than one-third.
China Media Group: Released the "2024 ESG Action Report"
On June 30, the Financial Program Center of China Central Radio and Television, together with the State-owned Assets Supervision and Administration Commission of the State Council, the All-China Federation of Industry and Commerce, the State-owned Economic Research Think Tank of the Chinese Academy of Social Sciences, and the China Enterprise Reform and Development Research Association, released the "2024 ESG Action Report" in Beijing, evaluating the selected 972 listed companies, showing the ESG characteristics and trends of Chinese enterprises, and compiling the "China ESG Listed Companies Pioneer 100" list. The report shows that with the acceleration of global ESG regulation and the introduction of relevant domestic policies, Chinese enterprises have made significant progress in ESG, with the average score of the "Pioneer 100" enterprise ESG index reaching 77.4, and the manufacturing industry accounting for half of the list, showing that Chinese enterprises attach great importance to ESG governance capabilities and performance levels. At the same time, China's listed companies have also shown enthusiasm in responding to climate change and integrating ESG concepts into supply chain management. At the event, the first ESG information disclosure release service platform in China was also released to improve the quality and efficiency of ESG information disclosure of Chinese enterprises.
The national standard of "Guidelines for Sustainability Evaluation of Large-scale Activities" has been implemented
On July 2, the local standard "Guidelines for the Evaluation of the Sustainability of Large-scale Events" formulated by the Beijing Municipal Administration for Market Regulation has been upgraded to a national standard. This standard summarizes the experience of sustainable management of the successful hosting of the Beijing 2022 Winter Olympics, and sets up 35 sustainability evaluation indicators in 7 categories for holding various large-scale events, which will provide a reference for improving the sustainability management level of large-scale events and scientifically evaluating the sustainability of large-scale events. According to the relevant person in charge of the Beijing Municipal Market Supervision Bureau, the national standard of the "Guidelines for the Sustainability Evaluation of Large-scale Activities" comprehensively covers key areas such as sustainable procurement, carbon neutrality, site utilization, and ecological restoration, and is committed to improving the green and low-carbon level of large-scale activities, strengthening the protection of the ecological environment, optimizing the utilization of resources, and actively assuming social responsibility. The birth of this national standard marks a new stage in the sustainability evaluation of large-scale events such as sports events, exhibitions, celebrations, performances, and summits.
The Ministry of Ecology and Environment (MEE) is soliciting opinions on the total amount and allocation of carbon emission allowances for the power generation industry
On July 2, the Ministry of Ecology and Environment (MEE) issued a notice on soliciting public comments on the "2023 and 2024 National Carbon Emission Trading Power Generation Industry Quota and Allocation Plan (Draft for Comments)". On the basis of maintaining policy continuity and stability, the new version of the "Quota Plan" has been optimized and improved in five aspects. The first is to optimize the basic parameters of quota allocation, from the approved quota based on power supply to the approved quota based on power generation. The second is to cancel the correction coefficient of the heat supply of the unit, and instead realize the reasonable incentive for the heating supply of the generator set by adjusting the benchmark value. The third is to adjust the correction coefficient of the load (output) coefficient of the unit to the correction factor of the peak regulation of the unit, and modify the scope of application. Fourth, indirect carbon dioxide emissions from the purchase and use of electricity will no longer be included in the scope of quota management. Fifth, the quota carry-over policy is introduced, which stipulates the conditions for the quota held by market entities to be retained for subsequent years, and guides trading entities to adjust their trading strategies and adjust the supply and demand of quotas. So far, China's carbon market has become the world's largest, covering about 5.1 billion tonnes of carbon dioxide emissions and including 2,257 key emitters.
Moody's has entered into a strategic partnership with MSCI to introduce MSCI industry ESG ratings and information
On July 2, Morgan Stanley Capital International Inc. (MSCI) and Moody's announced a strategic cooperation agreement to improve market transparency in the field of ESG and sustainability to help investors make better decisions. Under the agreement, Moody's will use MSCI's ESG ratings and information, which will primarily measure how well companies are managing financial-related ESG risks and opportunities. MSCI will leverage Moody's Orbis database to expand its coverage of ESG data for private companies. The companies also plan to explore new solutions based on Moody's private sector data and credit scoring models to provide deeper insights into the private credit market. Both Moody's and MSCI executives said it was a win-win partnership, aiming to provide global customers with richer ESG information and risk assessment data.
The European Union will officially impose tariffs on Chinese electric vehicles from July 5
On July 4, the European Commission announced tariffs on battery electric vehicles (BEVs) imported from China, effective July 5. Previously, the European Commission considered that European battery electric vehicle manufacturers face the threat of unfair subsidies from China's battery electric vehicle value chain. The new tariffs follow the European Commission's launch of a countervailing investigation into EV imports from China in October 2023, which found that the surge in heavily subsidized EVs poses a threat to the EU's automotive industry. France has been pressuring for months to launch an anti-dumping investigation into Chinese electric vehicle companies, but other countries, including Germany, have warned that the move could trigger a trade war. The Biden administration previously announced in May that it would increase tariffs on Chinese electric vehicles to 100% from the previous 25%, and on lithium-ion electric vehicle batteries and battery components from 7.5% to 25%. The tariffs are aimed at cracking down on China's "unfair trade practices," including forced technology transfers, intellectual property theft and the use of excess capacity to put cheap products on the market, according to a White House statement.
The General Office of the State Council has issued government procurement support policies for green products
On July 4, the General Office of the State Council issued the "Three-year Action Plan for Rectifying Market Order, Building a Legal System, and Promoting Industrial Development in the Field of Government Procurement (2024-2026)". Among them, it is proposed to revise the standards for commodity packaging procurement needs and guide the whole society to use green packaging. Formulate and introduce government procurement support policies for green products. Implement preferential procurement or compulsory procurement for products that have obtained green product certification or meet the government's green procurement demand standards, and promote green and low-carbon development. Expand the scope of government procurement to support green building materials and promote the implementation of policies to improve building quality. Expand from 48 cities (municipal districts) to 100 cities (municipal districts), requiring hospitals, schools, office buildings, complexes, exhibition halls, affordable housing and old city renovation projects and other government procurement projects to purchase green building materials that meet the standards, and timely study to further expand the scope of policy implementation. Strengthen the assessment and supervision of cities that implement policies to ensure that policy requirements are implemented.
China's Blue Book on Climate Change (2024) was released
On July 4, the China Meteorological Administration released the Blue Book on Climate Change in China (2024), which reflects the global and Chinese climate change situation in terms of the atmosphere, hydrosphere, cryosphere, biosphere and climate change drivers. 2023 is the warmest year on record globally, with frequent extreme weather and climate events, and the average continental temperature hitting a record high since complete meteorological observations were recorded. In the next 30 years, the average extreme maximum temperature in China will increase by 1.7°C~2.8°C, with the largest increase in East China and western Xinjiang. The average number of high temperature and heat wave days in China will increase by 7~15 days. Especially under the high-emission scenario, the current extreme heat event that occurs once in 50 years will become once in 1~2 years by the end of this century. In the future, the increase of extreme precipitation in the continent will be greater than that of total precipitation, and the variability will increase, and the precipitation will tend to be more extreme.
ESG Risk Analysis //
From June 29 to July 5, a total of 2,030 ESG disputes occurred in the A-share market, including 1 dispute involving the environment (a medium-risk event); There were 66 social disputes (57 low-risk events, 9 medium-risk events, and 0 high-risk events); There were 2,003 governance incidents (1,379 low-risk events, 438 medium-risk events, and 186 high-risk events).
In terms of industry distribution, the industrial industry has the highest number of disputes, accounting for more than 20% of the entire market; followed by information technology, consumer discretionary, finance and materials industries, the number of disputes accounted for between 10% and 15%, and the sum of the four accounted for 51.33%; The number of dispute events in the remaining seven industries accounted for less than 10%, accounting for 27.39% in total (Note: the industry classification is Wind Level 1).
From the perspective of the types of events, the disputes with high frequency mainly include related enterprise issues, securities price changes, abnormal share pledges, senior management changes, litigation disputes, sales restrictions, shareholder reductions, etc.
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ESG(Wind ESG评级)
Massive transparent data provides in-depth analysis of ESG fundamentals of listed companies
The indicators are in line with international standards and highlight Chinese characteristics
Risks penetrate layer by layer, and disputes are warned in time