The ESG Newsletter is prepared by SynTao Green Finance to provide readers with analysis and information on green finance, responsible investment and environmental, social and governance (ESG) issues.
Key Focus · STGF Insights · Policy Update · Market Update
ESG Investment Instruments Update · ESG Controversies
Key Focus
The 10th China SIF Annual Conference and 2022 China SIF Week
China SIF, 2022.12
China SIF will hold its 10th China SIF Annual Conference and China SIF Week from the 5th until the 9th of December. We will review the development of ESG from its emergence and rise to its gradual maturation into the mainstream by looking back at the milestones over the past decade. We will also explore the prospects, trends and key features of ESG investment for the next ten years.
Date of the Annual Conference: Dec. 6th, 2022
2022 China SIF Week: Dec. 5th – 9th, 2022
Venue: Beijing+online (hybrid format）
For registration, please copy to open in your browser：http://lxi.me/7klu1
SynTao Green Finance Partners With HKEx to Launch TCFD Training (Chinese Only)
SynTao Green Finance，2022.10.12
HKEx is committed to promoting ESG management and transparency and has partnered with the United Nations Sustainable Stock Exchange Initiative (UNSSEi), IFC, CDP and SynTao Green Finance to launch a climate disclosure training course to help companies better understand how to incorporate the key recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) into their business strategies and reporting.
SynTao Green Finance，2022.10.23
To promote the research practice and promotion in environmental information disclosure work, the Green Finance Committee (GFC) of the China Society for Finance and Banking has set up a working group on environmental information disclosure. The working group has started ten projects on environmental information disclosure.
STGF Insights
ISSB Commentary: The Debate on Double Materiality (Chinese Only)
Guo Peiyuan，2022.10.09
The GRI has 25 years of accumulated experience and is self-contained with a complete framework. GRI is also the most used disclosure standard by companies worldwide. ISSB, as a newcomer, has the advantage of coming from a famous family and standing on the shoulders of giants. The former brings brand influence, and the latter brings technical competence. In a sense, ISSB stands for efficiency and GRI for fairness.
Policy Update
Notice on the Issuance of the Guidelines on Environmental Information Disclosure for Financial Institutions in Shenzhen
Shenzhen Local Financial Supervision Authority，2022.09.30
To implement the "Green Finance Regulations of Shenzhen Special Economic Zone" and regulate the disclosure of environmental information by financial institutions in Shenzhen, five local regulatory authorities have jointly issued the "Guidelines on Disclosure of Environmental Information by Financial Institutions in Shenzhen".
HK Fund Manager's Carbon Disclosure Deadline Looming - Proven Solution Revealed
PR Newswire，2022.10.17
This notice comes on the backdrop of SFC's announcement that all Hong Kong-based fund managers are required to make substantive disclosures on their climate-related investment risks by the 20th of November. Specifically, fund managers with more than HKD 8 billion AUM would have already implemented measures two months ago (20th of August), but all fund managers must comply by the November deadline.
HKEx Launches Core Climate, Hong Kong's International Carbon Marketplace, Supporting Global Transition to Net Zero
HKEx，2022.10.28
HKEx announced the launch of "Core Climate", a new international carbon market trading platform designed to connect capital to climate-related products and opportunities in Hong Kong, the Mainland, Asia and beyond.
Market Update
State-owned Assets Supervision and Administration Commission (SASAC) Requires Central Enterprises to Formulate a "One-Enterprise, One-Strategy" Carbon Peaking Action Plan
Xinhuanet，2022.10.07
The SASAC requires central enterprises to formulate a "One-Enterprise, One-Strategy" Carbon Peaking Action Plan, focussing on promoting the transition and upgrading of industrial structure, adjusting and optimizing energy structure, strengthening green low-carbon technology innovation, promotion and application, and promoting synergy and efficiency in reducing pollution and carbon.
G20 Finance Ministers and Central Bank Governors Meeting Endorses the G20 Sustainable Finance Report 2022 (Chinese Only)
GreenFinanceChina，2022.10.14
The fourth meeting of G20 Finance Ministers and Central Bank Governors unanimously adopted the G20 Sustainable Finance Report 2022, supporting the achievements of the G20 Sustainable Finance Working Group in areas such as developing a transformational financial framework, refining the net zero emissions commitments of financial institutions and developing sustainable financial instruments.
China's Transition to a Low-Carbon Economy and Climate Resilience Requires a Shift in Resources and Technology (Chinese Only)
World Bank Group，2022.10.12
The World Bank Group released the "China Country Climate and Development Report", which notes that climate change poses a significant threat to China's long-term prosperity. But China is well positioned to meet its development goals while meeting its climate commitments and driving a green economic transition.
Download the report in English at (please copy to open in your browser)：https://openknowledge.worldbank.org/handle/10986/38136
Emissions Gap Report 2022 Published (Chinese Only)
UNEP，2022.10.27
Emissions Gap Report 2022: The Closing Window – Climate crisis calls for rapid transformation of societies and finds that the international community is falling far short of the Paris goals, with no credible pathway to 1.5°C in place. Only an urgent system-wide transformation can avoid climate disaster.
Download the report in English at (please copy to open in your browser)：
https://www.unep.org/resources/emissions-gap-report-2022
ESG Investment Instruments Update
October ESG Funds Ranking
Note: This list screens the top 10 ESG funds by the percentage of peer group fund interval returns. The peer group funds include Equity Blend, Common Equity, International (QDII) Equity, Flexible Allocation, Enhanced Index, Passive Index, and Balanced Blend funds.
Data source: Wind Data Terminal, compiled by SynTao Green Finance
New ESG Funds
Data source: Wind Data Terminal, compiled by SynTao Green Finance
ESG Controversies
Environmental Controversies
· On Oct 31, the holding subsidiary of Lu'an Environmental Energy Dev. Co., Ltd. (601699.SH) was fined 1.40784 million yuan for construction without approval.
· On Oct 31, the holding subsidiary of Huayang Co., Ltd. (600348.SH) was fined 690000 yuan for excessive discharge of water pollutants.
· On Oct 31, the indirect holding subsidiary of Tianshan Shares (000877.SZ) was fined 459000 yuan for violation of environmental impact assessment.
Social Controversies
· On Oct 2, Haitian Flavoring (603288.SH) encountered the "double standard" storm of food additives, and experts appeal to the public to treat additives rationally.
· On Oct 10, Xingyu Mine, a subsidiary of Huayang Co., Ltd (600348.SH)., was shut down due to an accident, resulting in one death.
· On Oct 11, Shenwan Hongyuan's (000166.SZ) subsidiary was sued by a private equity company for failing to perform its duty of diligence in the underwriting and recommendation process.
· On Oct 28, Industrial Bank (601166.SH) was fined 4.5 million yuan for five violations of laws and regulations in its wealth management business.
· On Oct 28, ABC (601288.SH) Wealth Management was fined 2.4 million yuan for six violations of laws and regulations in its wealth management business.
· On Oct 28, China Construction Bank (601939.SH) was fined 2 million yuan for the scale of its old wealth management products being rebounded at some time points.
Governance Controversies
· On Oct 1, CSG A (000012.SZ) was sued by a shareholder and requested that the resolution of the second extraordinary general meeting of shareholders be rejected.
· On Oct 1, Qingdao Taidong COFCO Joy City (000031.SZ) was accused of fraud, which led to the collective rights protection of owners.
· On Oct 8, Tian Huiyu, former Party Secretary and President of China Merchants Bank (600036.SH), was expelled from the Party and public office for serious disciplinary offences.
· On Oct 26, Tian Huiyu, former president of China Merchants Bank (600036.SH), was arrested on suspicion of taking bribes.
· On Oct 31, Han Fenglin, the former risk director of China Construction Bank (601939.SH) Shenzhen Branch, was prosecuted.
SynTao Green Finance (STGF) is one of the first Chinese organizations specialized in providing green finance and ESG responsible investment services, starting ESG data collection and research as early as in 2009. STGF ESG data and research on ESG key issues are widely employed to support investment decisions, risk management, policy making, and sustainable finance product innovation. "STGF STαR ESG Data Platform" and "STGF ESG Risk Radar System" cover all A-share market, and Hong Kong stocks in the stock connect schemes, amounting to 5,000 listed companies. In 2020, STGF launched "STGF PANDA Climate Data Platform", providing carbon emission data of Chinese entities based on GHG protocol. STGF ESG ratings (SynTaoGF-ESG) has been onboarding on Bloomberg Intelligence, making it the first Chinese ESG rating agency to have its data displayed on Bloomberg.
STGF is the first signatory of Chinese service provider joining PRI, a member of the first Advisory Council of Green Bond Principles and Social Bond Principles of International Capital Market Association (ICMA), the founding member of China Green Finance Committee, the certified consulting agency for UK Green Investment Bank, the first China based Climate Bonds Standard (CBS) approved verifier, a member of the National Association of Financial Market Institutional Investors (NAFMII).
Disclaimer：The data used in this report, unless otherwise specified, is derived from the research institution's own research or collected through publicly available sources. The research institution is therefore not responsible for decisions made or actions taken based on the information in this report or for any losses arising from such decisions or actions.