Chongqing - The Swiss Re Group suggested that to develop a green finance system, Chongqing should accelerate the construction of ESG regulatory mechanisms, establish a low-carbon transformation financial alliance, and encourage enterprises to engage in sustainable financial and business activities, according to the sub-forum on green finance of the CCI-FS 2023 on April 21.
ESG stands for Environmental, Social, and Governance, which are investment principles and corporate evaluation criteria focusing on these three factors. It was formally proposed in a United Nations report in 2004.
In recent years, the concept of ESG investment has been promoted worldwide, which refers to an investment approach that combines the three factors based on traditional considerations. It is essential for measuring listed companies' quality, investment value, and long-term sustainability.
"We suggest that Chongqing's government can accelerate to link the international requirements of physical properties information disclosure, promote the connectivity of taxonomy, optimize ESG information disclosure, and adapt to the specific conditions of the Chinese market," said Annie Xiong, Head of Public Sector Solutions for China of Swiss Re Group.
Annie Xiong reported the research on the green finance sub-forum. As an active member of several climate alliances, Swiss Re has adjoined Chongqing in improving its ESG regulatory mechanisms. (Photo/Kenny Dong
Xiong pointed out that Chongqing has advantages in promoting the establishment of a low-carbon transformation financial alliance due to its policy and location. A joint commitment to the financial industry will help to achieve higher synergies. She also believed that the participation of enterprises would improve the effectiveness of ESG financial disclosure and help the world gain more knowledge about specific practices of the Chinese market.
Chia Caihan, Chief Representative of the Beijing Representative Office of Singapore Exchange, told Bridging News that many people regard green finance as supporting environmental protection as a social responsibility. However, developing green finance requires enterprises and government units to see the long-term benefits of implementing such policies and products.
"China's biggest advantage is its large market, allowing everyone to try these financial products. Once we have a framework for ESG investment and financing platforms, we need a suitable market to promote our products, and this is where China and Singapore can work together," she said.
In August 2022, Chongqing was approved by the State Council of China to become the seventh national pilot zone for developing green finance reform and innovation and the fifth to get approval among all central and western China provinces.
On March 21, 2023, Chongqing signed a strategic cooperation agreement with seven banks to support the construction of the Chongqing Green Finance Reform and Innovation Pilot Zone and received over 300 billion yuan in green financing support.
Chia Caihan, Chief Representative of SGX Beijing Representative Office, shared ideas about linking green finance with China's need for RMB internationalization through deeper cooperation with Singapore. (Photo/ Kenny Dong)