Chinese regulators and investors are beginning to step up on ESG, particularly by taking more concrete action on climate and environmental issues.
While it is notable that the social component of ESG remains a major challenge in China - for example, there is growing investor concern surrounding the alleged abuse of Uyghur Muslims in the Xinjiang region - on the environmental side, China is making efforts to align with international and regional initiatives such as the EU Taxonomy.
Part of this is likely a response to increasing engagement by international investors but, as RI recently reported, the growing number of domestic investors engaging with companies through for example CA100+ is expected to help translate climate pledges to meaningful progress.
Crucially, President Xi Jinping pledged the nation would reach climate neutrality by 2060 at the end of last year. This declaration “will have the most far-reaching impact on ESG developme…