C-ESG international progress and Chinese practice
ClimSystems supported the recent Beijing Meteorological Society (BMS) expert forum, with Senior Climate Scientist Dr Yinpeng Li presenting.
More than 70 researchers and postgraduates from the Urban Institute, directors and members of the BMS, and relevant research and business personnel attended the online forum.
From the perspective of international trends and China’s development, the discussion in the forum focused on climate-related financial disclosure and environmental, social and governance (C-ESG) analysis methods and their application in urban areas, reporting global trends in addressing climate change, the identification of new growth points and the discovery of new areas for development. The discussion also focused on the potential willingness of domestic enterprises to participate and the technical thresholds they may face for inclusion. The importance of the integration of scientific accuracy and economic directionality was highlighted. The forum broadened everyone’s horizons and fostered innovative thinking while providing new perspectives to analyse, understand and respond to climate change.
The global climate is undergoing profound change, as exemplified by the recent Red Code Alert issued by the Intergovernmental Panel of Climate Change (IPCC) AR6 report which reminds us that humanity has little time to avoid a catastrophic hot-house Earth environment. Enterprises worldwide are critical players in the puzzle. They can be responsible leaders in setting and then implementing emission reduction plans with vigour to reduce our collective vulnerability while enhancing their physical, social and economic resilience. Moreover, more and more enterprises are positively, yet passively, engaged in C-ESG reporting and monitoring which form one pillar of the green finance system.
China has followed a GDP-driven development approach adopted by developed countries. However, although the economy has achieved rapid growth over the past four decades, it has also caused in some cases severe damage to the environment and natural resources. Moreover, with the changing socio-economic and political conditions in-country and abroad, China’s development approach has encountered challenges. It is important that action is taken quickly yet effectively to mainstream the C-ESG systems approach in the decision-making process, especially in investment and strategic planning.
Data methodologies and services for C-ESG practice in China need to be addressed and improved. That support is being delivered by a German-funded GIZ project, led by ClimSystems and BNU and an international team that is ramping up the capacity building, research and development. The complexity of C-ESG practices requires, given its nature, an inclusive yet adaptive system with institutional, social, economic, earth and technological (ISEET) elements embedded across relationships, structures, functions and dynamics. The ISEET framework developed by ClimSystems is a tested method for thinking and analysing the dynamics of C-ESG that includes critical aspects of future climate change.