ESG News in Brief (21/11/2022 - 25/11/2022)

Demostic Enterprises

Domestic Policies

China Chamber of Commerce for Electromechanical Industry: to build a one-stop ESG service platform for foreign investment and cooperation enterprises

The National Development and Reform Commission, the National Bureau of Statistics and the National Energy Administration jointly issued the Notice on Further Improving the Relevant Work of New Renewable Energy Consumption Not Included in the Total Energy Consumption Control

Bangkok Goals for a Biocircular Green Economy

International Enterprises

U.S. announces zero emissions for medium and heavy-duty vehicles by 2040

Biden Harris Government Announces US $6 Billion to Protect US Clean Nuclear Energy Infrastructure

SEC Charges Goldman Sachs for Failing to Follow ESG Investing Policies

Neuberger Fund Xu Yixian: The different stages of ESG lead to great differences in the products developed by investment institutions

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BYD signs all-electric bus partnership with Nordic bus operator to help decarbonize Finland, Norway and Swedendecarbonize Finland, Norway and Sweden: BYD, a leader in new energy vehicles in China, announced today that it has signed an order for 64 buses with Nobina, the largest bus operator in the Nordic region, which are scheduled to be delivered in the second quarter of 2023 and put into operation in the Nedre Glomma region of Norway to help decarbonize transportation in the Nordic region.

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Swellfun released its ESG report this year, which covers seven sectors: corporate governance, product responsibility, supply chain responsibility, workplace construction, environmental management, community responsibility, and museum and cultural heritage. Swellfun actively responds to relevant national policies of the United Nations, constantly improves its own water resource management, strengthens waste management, and constantly improves its energy utilization efficiency, so as to achieve sustainable development of Swellfun through production activities, supply chain, office operations and other links.

Sinopec and Qatar sign long-term LNG purchase and sale agreement

Qatar is the world's largest LNG producer and the host country of this year's World Cup. On the first day of the World Cup, Qatar Energy signed a world-class deal with Sinopec: the two sides signed a 27-year long-term liquefied natural gas (LNG) purchase and sale agreement, under which Qatar Energy will supply Sinopec with 4 million tons of LNG annually.

Linde started green hydrogen production 

Linde, the world's largest industrial gas company, said on Tuesday that it had started to use renewable wind and solar energy to produce green hydrogen from water by electrolysis in Greek factories, providing oxygen, nitrogen, hydrogen and other gases for factories and hospitals.

SuperFoodz: Food Giving Utility Token for Social Impact to Support SDG

SuperFoodz.io is going to launch its first impact token focused on solving hunger with goal specific utilities which emphasizes giving food support to those suffering from food insecurity around the world. 40% of its profits will be donated in food quantitates as impact causes to NGO, non-profit and charitable initiatives.

MS Amlin unveils new, three-year ESG strategy

MS Amlin has said it is laying out a three-year sustainability roadmap in order to embed ESG into its business operations.ms-amlin-logoAccording to the firm, the Sustainability Strategy sets out the steps which the company will take over the next 36 months and provides multi-point plans for how it will embed ESG criteria and monitor performance effectively. This will support MS Amlin’s commitment to minimise the environmental impacts of its operations globally while also building out more robust social and governance practices.

Fidelity Expands Its Sustainable Investment Products Lineup With the Launch of Fidelity Healthy Future Fund

Fidelity Investments announced the launch of a new Environmental, Social and Governance (ESG) fund – Fidelity Healthy Future Fund (FAPHX), an actively-managed equity strategy that invests in companies around the world whose products, services, and/or technology are believed to either extend and/or improve life expectancy, enhance health and wellness in people’s lives, or mitigate negative environmental impacts affecting health and wellness.

In addition to fundamental, bottom-up financial analysis, the fund will use Fidelity’s proprietary forward-looking and historical ESG ratings framework alongside third-party ESG ratings to create a more complete picture of a company’s or issuer’s sustainable business practices.

China Chamber of Commerce for Electromechanical Industry: to build a one-stop ESG service platform for foreign investment and cooperation enterprises

The Expert Committee of the China Chamber of Commerce for Machinery and Electronics proposed a few days ago at the 2022 annual working meeting that in 2023, the "Guidelines for the Construction of the ESG System of Chinese Foreign Investment and Cooperation Enterprises (Standards)" will be launched in due time to create a one-stop ESG service platform for foreign investment and cooperation enterprises. The expert committee of the Chamber of Commerce actively organized Chinese enterprises to carry out dialogue with international professional institutions, strengthened cooperation with international organizations such as the United Nations Development Programme (UNDP) and professional rating agencies in the fields of rating, certification and consulting, and launched the "Guidelines for the Construction of ESG System (Standards) for Chinese Foreign Investment Cooperation Enterprises" in 2023. Effectively help enterprises achieve sustainable development and help enterprises avoid the impact of ESG system on foreign investment and cooperation.

The National Development and Reform Commission, the National Bureau of Statistics and the National Energy Administration jointly issued the Notice on Further Improving the Relevant Work of New Renewable Energy Consumption Not Included in the Total Energy Consumption Control

In order to implement the spirit of the Twentieth National Congress of the Communist Party of China, improve the regulation of the total amount and intensity of energy consumption, and further improve the work related to the exclusion of new renewable energy consumption from the total amount control of energy consumption, the National Development and Reform Commission, the National Bureau of Statistics, and the National Energy Administration jointly issued the Notice on Further Improving the Work Related to the Exclusion of New Renewable Energy Consumption from the Total Amount Control of Energy Consumption (hereinafter referred to as the Notice).

The notice includes five parts: "Accurately define the scope of new renewable energy power consumption", "take green certificate as the basic voucher for the recognition of renewable energy power consumption", "improve the statistical accounting system of renewable energy consumption data", "scientifically implement the assessment and verification of the responsibility for energy conservation goals", and "well organize the implementation".

Recalling the APEC Putrajaya Vision 2040, APEC reaffirmed its commitment to pursuing strong, balanced, secure, sustainable and inclusive growth in the Asia-Pacific region. We will build on the APEC Putrajaya Vision 2040 and the Aoteoroa Action Plan to achieve prosperity for all people and future generations. By formulating the "Bangkok Goals for a Bio-Circular Green Economy", APEC will further achieve comprehensive and ambitious inclusive sustainable development goals and contribute to global action. APEC discussed ways to promote a bio-circular green economy, including promoting technological innovation, reducing waste, improving resource utilization efficiency, promoting sustainable business, and achieving more comprehensive, coordinated, balanced, inclusive, and sustainable growth. Appreciate and support the zero-emission and carbon-neutral commitments made by APEC members. Recognizing the importance of stabilizing energy markets and transitioning to clean energy, we will further strengthen the Asia-Pacific region's ability to use renewable energy and clean low-emission energy technologies. We will promote inclusive and sustainable trade and investment, implement the APEC Connectivity Blueprint, strengthen the stability, resilience and sustainability of supply chains, and promote connectivity. We will continue to prevent and reduce marine waste and plastic pollution. We will strengthen the fight against illegal logging and related trade, stop the degradation of forest ecosystems, and promote sustainable management and trade and consumption of legally harvested forest products. Finally, we will adopt an inclusive approach to improve the living standards of all people and to promote gender equality.

In order to help build Shenzhen into a global sustainable financial center, to promote sustainable financial development in the Greater Bay Area, and to jointly build a sustainable financial ecosystem, the first Green and Sustainable Finance Summit in the Greater Bay Area was successfully held in Shenzhen on November 16. In recent years, Shenzhen has vigorously developed financial technology, green finance and sustainable finance, promulgated my country's first local green financial regulations, compiled the first domestic financial technology index, and jointly launched the Guangdong-Hong Kong-Macao Greater Bay Area Green Finance Alliance with Guangzhou, Hong Kong and Macau Last year and this year, offshore RMB local government bonds, including green bonds and blue bonds, were issued in Hong Kong for two consecutive years, creating good conditions for Shenzhen's future green and sustainable financial development. The Hong Kong SAR government has been committed to promoting more institutions to use Hong Kong's financing platforms and professional services to carry out green and sustainable investment, financing and certification to support green enterprises and projects in the Greater Bay Area. In order to build a green financial ecosystem, the Hong Kong SAR government will work with financial regulators and the industry to promote the development of green and sustainable finance in Hong Kong through a multi-pronged approach around the three themes of products, talents and markets, and provide infrastructure and motivation to facilitate market development. Climate change is a global challenge that requires a global response. The UK is actively cooperating with global partners to promote green and sustainable financial development. He said that through measures such as improving the green financial policy service system and taking the lead in promulgating the first local regulations on green finance in China, Shenzhen's green finance is at the forefront of the country.

U.S. announces zero emissions for medium and heavy-duty vehicles by 2040

At the 27th Conference of the Parties (COP27) to the United Nations Framework Convention on Climate Change in Egypt recently, U.S. Energy Secretary Jennifer Granholm said the U.S. aims to sell and produce only zero-emission medium and heavy-duty vehicles by 2040.

Biden Harris government announced through the U.S. Department of Energy (DOE) that it would choose the Diablo Valley Power Plant located near Avila Beach, California, to obtain the first round of funds for civil nuclear credit (CNC) projects. The $6 billion needed for the project was funded by President Biden's bipartisan infrastructure law. This Act supports the continuous operation of safe and reliable nuclear power facilities, and protects thousands of high paid clean energy jobs while avoiding carbon emissions. As the largest carbon free energy source in the United States, nuclear energy is an important resource to achieve the Biden Harris government's goal of 100% clean electricity by 2035 and net zero emission economy by 2050.

The Securities and Exchange Commission charged Goldman Sachs Asset Management, L.P. (GSAM) for policies and procedures failures involving two mutual funds and one separately managed account strategy marketed as ESG investments.

For example, the order finds that GSAM’s policies and procedures required its personnel to complete a questionnaire for every company it planned to include in each product’s investment portfolio prior to the selection; however, personnel completed many of the ESG questionnaires after securities were already selected for inclusion and relied on previous ESG research, which was often conducted in a different manner than what was required in its policies and procedures.

“Today’s action reinforces that investment advisers must develop and adhere to their policies and procedures over their investment processes, including ESG research, to ensure investors receive the advisory services they would expect to receive from an ESG investment,” said Andrew Dean, Co-Chief of the Enforcement Division’s Asset Management Unit.

Neuberger Fund Xu Yixian: The different stages of ESG lead to great differences in the products developed by investment institutions

On November 11, at the roundtable forum of "Sustainable Investment and Practice under the Global ESG Wave" of "China Sustainable Investment and Hainan Free Trade Port Construction Forum", Deputy General Manager of Neuberger Fund Management (China) Co., Ltd. When Xu Yixian talked about the reasons for the different performances of ESG investments in China and foreign countries, he said that the richness of products and the different time dimensions have caused great differences. The main reasons behind this are the supervision of various places, including the disclosure of listed companies, and the different stages of ESG. The products developed by investment institutions are very different. The real core reason is that domestic and foreign countries are in different development stages. China has just begun to really pay attention to and invest in ESG research and investment. He said that overseas, ESG data development stages are different in different countries. Regarding ESG information of companies, sustainable economic activity classification catalog, climate risk disclosure, etc., the European Union has done a lot, and the United States is not as demanding as the European Union. At present, in addition to the data obtained through the research of listed companies, there is also big data analysis, through the data captured on the Internet, to make some supplements to the ESG database, and then to make some judgments. In terms of domestic big data collation, it has just started and nothing has been implemented yet. However, the domestic Internet is very developed and there are a lot of data, which can be used for mutual reference.