THIS MATERIAL IS A MARKETING COMMUNICATION.
ESG Monthly (August 2022)
This month’s highlights:
China released its plans for carbon-intensive industries to peak emissions by 2030; targeted industries include steel, building materials, petrochemicals, non-ferrous metals, consumer goods, equipment manufacturing and electronics sectors (SCMP, August 2022)
The plan includes:
- Industrial companies with annual revenue above 20 million RMB (USD 2.9 million) to reduce energy consumption by 13.5% by 2025 compared with 2020 levels.
- China’s national emissions trading scheme to expand coverage from currently only regulating the power sectors to also include industrial sectors.
- Steel sector to increase annual recycling capacity to 180 million tonnes of scrap iron and steel by 2025.
Source: European Commission Joint Research Centre, October 2021
Commentary on ESG news and developments:
- The United States (US) Senate passed the Inflation Reduction Act (IRA), which includes a historic investment of $369 billion in energy security and climate change that is expected to support the reduction of US emissions by 40% by 2030 compared to 2005 levels (Bloomberg, August 2022).
- The European Union (EU) transposed two workforce directives (one relating to transparent and predictable working conditions and another relating to work-life balance), into national law under the European Pillar of Social Rights (EPSR).
- The United Kingdom (UK)'s Competition and Markets Authority (CMA) investigates fashion retailers ASOS, Boohoo and George at Asda on eco-friendly and sustainability claims made about their fashion products (CMA, August 2022).
In Asian Pacific markets…
- China released the Green Bond Principles which unifies domestic standards to those of international markets; issuers must allocate 100% of the proceeds to green projects based on the Green Bond Endorsed Projects Catalogue, Common Ground Taxonomy or the EU Taxonomy (China Dialogue, August 2022).
- China released its plans for carbon-intensive industries to peak emissions by 2030; targeted industries include steel, building materials, petrochemicals, non-ferrous metals, consumer goods, equipment manufacturing and electronics sectors (SCMP, August 2022).
- Hong Kong's Securities and Futures Commission (SFC) published its Agenda for Green and Sustainable Finance which sets out the regulator’s plans to continue supporting Hong Kong’s role as a regional green finance centre (SFC, August 2022).
- India revised its national carbon reduction targets – updating its Nationally Determined Contributions (NDCs) ahead of COP26 in November – committing to reduce the emissions intensity of its GDP by 45% by 2030 and to achieve 50% cumulative electric power installed capacity from non-fossil fuels by 2030 (Reuters, August 2022).
- Singapore released new guidelines on ESG funds disclosure requirements for fund managers to tackle greenwashing (Reuters, July 2022).
- South Korea introduced a new clean hydrogen rating scheme that determines whether hydrogen can be classified as “low carbon” based on the amount of carbon generated during production, to be implemented in 2024 (Korea Herald, July 2022).
September 05, 2022
Staying Ahead with Mirae Asset’s Latest Insights
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