ESG News in Brief (12/12/2022 - 18/12/2022)

Demostic Enterprises

Domestic Policies

The 8th China North Bund Asset Management Summit "ESG New Era and New Journey" was successfully held

Government launches Pilot Green and Sustainable Finance Capacity Building Support Scheme

International Enterprises

EU to Implement a Carbon Tax in October next year

Government launches Pilot Green and Sustainable Finance Capacity Building Support Scheme

2022 Carbon Dafeng Carbon Neutral Forum & Shenzhen International Low Carbon City Forum successfully held

1

On December 16, Aon China officially announced the results of the selection of the best ESG employers in 2022. A total of 27 employer brands were on the list. During the four-month selection process, Aon carefully and strictly screened the applications of nearly 200 companies from different industries, and passed employee surveys, company questionnaires and executive interviews, and was reviewed by the review committee. , selected 20 best ESG employer brands and 7 individual award-winning brands. At the same time, according to the evaluation model of Aon, it summarizes the four keywords of the award-winning brands in the ESG field: responsibility, resilience, agility, and evolution.

2

Recently, MSCI, the world's largest index company, upgraded Lenovo Group's ESG rating to AAA, the highest level in the world. According to the data, the performance of Lenovo Group surpassed well-known foreign companies such as HP and Cisco, and Apple only got BBB grade.

BorgWarner Announces New Scope 3 Emissions Reduction Target

On December 15, BorgWarner announced that it will reduce absolute Scope 3 emissions by at least 25% by 2031 from a 2021 baseline. This new Scope 3 target, along with the previously announced target of an 85% absolute reduction in Scope 1 and Scope 2 emissions by 2030 (from a 2021 baseline), has been formally submitted to SBTi for validation. These science-based goals and commitments to carbon neutrality align with BorgWarner’s Charging Forward, an accelerated electrification path aimed at achieving a net-zero carbon future for all.

To achieve its Scope 3 goals, BorgWarner will focus on actions the company can take, such as transitioning its product portfolio to electrification, by increasing recycled and remanufactured Raw materials to advance circular product development. The company will also require its suppliers to establish a carbon-efficient supply base.

MetLife Investment Management Completes Acquisition of ESG Investment Manager Affirmative Investment Management

MetLife Investment Management, the institutional asset management business of MetLife, Inc., announced that it has completed the acquisition of Affirmative Investment Management, a specialist global ESG impact fixed income investment manager.

In her new role, Nakagawa will lead Microsoft’s company-wide environmental sustainability work, including initiatives towards reaching its 2030 targets to become carbon negative, water positive and zero waste while contributing to biodiversity, as well as its efforts to deliver technology to help customers and partners achieve their own sustainability goals, and to partner with governments, nonprofits, and businesses to help accelerate broader global sustainability progress.

On December 12, 2022, the "8th China North Bund Asset Management Summit - ESG New Era and New Journey" was successfully held in Shanghai Hongkou North Bund. "The 8th China North Bund Asset Management Summit - ESG New Era and New Journey", with ESG as the theme, invited senior people from the world's top industries, practitioners of professional institutions, etc. to jointly discuss and explore the new journey of ESG, and carried out warm discussions around ESG investment and other topics, which is of great significance for building a cooperative, open and shared financial ecosystem and further promoting green financial development and international cooperation. The summit was hosted by Shanghai Hedge Fund Park and supported by Shanghai Asset Management Association. At present, the new round of development and construction of the North Bund is being vigorously promoted. Focusing on the strategic goal of building "Shanghai North Bund, Pujiang Golden Triangle", we are accelerating the building of Shanghai's global asset management center and financial technology core bearing area. In the North Bund area, the wealth management brand has been fully launched. Specifically, in the context of ESG finance, it is to serve the country's dual carbon strategy, serve the sustainable development of enterprises, and serve the needs of the people for common prosperity. Picture 3. Liu Mingkang, member of the pngGF60 Academic Committee and former chairman of the China Banking Regulatory Commission, delivered a wonderful speech with the theme of "the value and role of ESG in the process of Chinese path to modernization". Fang, ESG Research Director of Luboma Fund Management (China) Co., Ltd., shared the investment philosophy and practice of international institutions with the "cross asset analysis framework and evaluation system driven by ESG's active investment philosophy".

Government launches Pilot Green and Sustainable Finance Capacity Building Support Scheme

The Government announced today (December 13) the launch of the three-year Pilot Green and Sustainable Finance Capacity Building Support Scheme to encourage local eligible practitioners and prospective practitioners to participate in training related to green and sustainable finance in response to the new trend of developing low‑carbon and sustainable economy.

I announced in the 2022-23 Budget that the Government would launch the Pilot Scheme and earmark $200 million to provide subsidies to eligible persons participating in the training, with a view to building up the local green and sustainable finance talent pool and thereby supporting the development of green and sustainable finance in Hong Kong," the Financial Secretary, Mr Paul Chan, said.

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".

EU to Implement a Carbon Tax in October next year

On December 13 local time, members of the European Parliament and the Council reached a provisional agreement to establish the EU Carbon Border Adjustment Mechanism (CBAM, also known as "carbon tariff"), and confirmed that it will start trial operation in October 2023 to address climate change. and prevent carbon leakage. The European Union has become the first economy in the world to impose a carbon dioxide tariff.

According to the agreement, the EU carbon tariff will cover industries such as steel, aluminum, cement, fertilizer, electricity and hydrogen energy. The initial carbon tariff applied only to reporting obligations, aimed at collecting data. However, with the gradual implementation of the policy, subsequent companies need to pay for their carbon emissions when importing products, and the price is linked to the European Union's Emissions Trading System (ETS). There is also an exemption mechanism for carbon tariffs, and countries that are in line with EU emission standards will enjoy tax exemptions.

At the hearing, described by the Senate as ensuring that “the state’s public pension funds are not being invested to further political or social causes,” the committee, led by Senator Bryan Hughes repeatedly challenged BlackRock Head of External Affairs Dalia Blass and State Street Global Advisors (SSGA) Global CIO Lori Heinel, over climate-related statements made by their respective firms, specific engagements and votes by each, and their participation in climate-focused investment associations such as Climate Action 100+, which that targets the world’s largest corporate greenhouse gas emitters to promote taking necessary action on climate change.

2022 Carbon Dafeng Carbon Neutral Forum & Shenzhen International Low Carbon City Forum successfully held

On December 12, the 2022 Carbon Dafeng Carbon Neutral Forum and Shenzhen International Low Carbon City Forum officially kicked off in Shenzhen International Low Carbon City. The theme of this forum is "Focusing on the 'Double Carbon' Goals and Promoting the Green Recovery of the Global Economy", and will last for three days until December 14. Well-known experts and scholars, research institutes, leading companies, and representatives of international organizations from the green and low-carbon field at home and abroad gathered in the low-carbon city to discuss green recovery countermeasures and share successful practices of green transformation. According to the "1+9+N" model, the forum will hold 1 main forum and 9 parallel forums, and hold multiple international seminars, project roadshows and trade fairs, major project signings and releases and other rich activities at the same time to convey the Shenzhen The concept of green development promotes the high-quality development of Shenzhen's green and low-carbon industries and helps achieve the "double carbon" goal.