On July 15, the 2021 China SIF Summer Summit took place as a hybrid event held in Beijing on-site with online access and simultaneous interpretation available to remote participants. Domestic and international experts engaged in in-depth discussions and exchanges on transition risk opportunities and corresponding ESG investment opportunities related to China’s carbon neutrality target.
The Summit was divided into two halves. The first half took a macro perspective and explored the risks and opportunities of transition under the carbon neutrality target. The second half of the summit was held from a micro perspective, where the guests discussed how financial institutions can systematically take climate change factors into account and carry out ESG investments under the carbon neutrality target.
Tiffany Grabski, Senior Specialist at the United Nations Sustainable Stock Exchanges initiative, delivered a keynote address where she presented two recent UN SSE reports related to climate disclosure: the SSE’s Action Plan to Make Markets Climate Resilient and Model Guidance on Climate Disclosure. She identified five key areas in which stock exchanges can contribute to carbon neutrality: reporting of climate-related information, broader communication, evaluation and integration of risks and opportunities, climate data, and promoting change in each key area.
The UN SSE’s work in this area was supported by its 100 members strong Advisory Group on Climate Disclosure which was organized under the auspices of Mark Carney, UN Special Envoy on Climate Action and Finance, and co-chaired by the CEOs of London Stock Exchange Group and Johannesburg Stock Exchange. Shanghai Stock Exchange, Shenzhen Stock Exchange, and Hong Kong Exchanges and Clearing Market, were all members of this Advisory Group and contributed to the final reports.
The UN SSE is a longtime contributor to China SIF and you can know more details about the past collaborations in 2018, 2017, and 2015.
SSE Climate Action
To help exchanges lead a transition to more climate-resilient markets using the various tools available to them, SSE published its Action Plan to Make Markets Climate Resilient which provides a voluntary practical action plan and bespoke guidance on creating climate-resilient markets. Stock exchanges can help their market to mitigate risks associated with climate change, access growing opportunities, and help align climate-related disclosures to global standards and best practices to ensure their markets are both efficient and resilient.
The SSE also has a tool for exchanges titled “Model Guidance on Climate Disclosure: A template for stock exchanges to guide issuers on TCFD implementation” that assists exchanges in guiding their market on how to disclose climate-related financial information. The template is oriented around the Financial Stability Board’s (FSB) Task Force for Climate-Related Disclosures (TCFD) recommendations, the current best practice for climate-related disclosure. Within this guidance the template is written in the voice of an exchange, providing text they may use when they guide their issuers, as well as ideas for strengthening their guidance by adapting it to their market’s circumstances.
China Social Investment Forum (China SIF), established in 2012 as a non-profit organization, is dedicated to promote responsible investment and to provide an internationalized platform for exchanging and sharing ideas on issues concerning sustainable development, with focus on facilitating Environmental, Social and Governance (ESG) integration, advocating green finance, and contributing to a responsible capital market in China as well as its sustainability.
Since the establishment, China SIF has invited domestic and foreign experts to share their research, experiences and cases during both online and offline theme events. Professionals and practitioners from research institutes, financial institutions, listed companies, government agencies, as well as representatives from media have joined our discussion and endeavor to explore multiple ways to practice responsible investment and green finance.
