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On April 12, 2024, the three major domestic stock exchanges officially launched the "Guidelines for Sustainable Development Reporting of Listed Companies (Trial)", and domestic supervision has officially launched the Chinese standard for sustainable development information in the capital market. The most striking thing is that this supervision has conveyed clear disclosure time and disclosure requirements. For the sample companies of the SSE 180, Science and Technology Innovation 50, Shenzhen 100, and ChiNext indices , as well as companies listed at home and abroad, the 2025 "Sustainable Development Report" should be disclosed for the first time in 2026 at the latest, and other companies are encouraged to disclose voluntarily.   Build a sustainable development information disclosure framework and strengthen sustainable development information disclosure The guidelines issued by the three major exchanges have clearly put forward the disclosure framework of sustainable development information, carried out topic importance analysis around the four core contents of "governance, strategy, impact, risk and opportunity management, indicators and goals", and clarified the relevant disclosure topics. Clear disclosure requirements are of great significance to improving the disclosure quality of listed companies. At the same time, the guidelines encourage qualified companies to use scenario analysis and other methods to conduct climate adaptability assessments and hire third-party institutions to conduct greenhouse gas emission data verification or certification. The release of this guideline will effectively promote the disclosure of sustainable development information by listed companies in China, enhance the enthusiasm of listed companies for continuous disclosure, improve the disclosure quality of listed companies, and lay a good data foundation for in-depth ESG rating.   CCX Green Finance International continues to provide ESG rating and disclosure services to listed companies As China's first-class credit rating agency, China Chengxin has been deeply involved in China's capital market for more than 30 years. Since the beginning of the development of China's green finance market, CCXGF has actively participated in the disclosure and rating of sustainable development information in the capital market. Relying on China Chengxin's 32 years of credit rating experience, CCXGF has developed ESG rating models for 57 industries, assigning different ESG rating weights to different industries based on industry characteristics and business attributes. It has rich practical experience in analyzing ESG key issues, showing deep industry accumulation, and has received good feedback from the market.   At the same time, CCXGF has developed an ESG investor service platform, covering more than 6,000 A-share and Chinese Hong Kong-listed companies and more than 4,300 bond issuers, accumulating ESG rating data over the past four years, actively assisting listed companies and bond issuers in conducting ESG rating work, and providing investors with a good data foundation and rating basis. At the same time, CCXGF actively participates in the formulation of relevant ESG groups and industry standards, including the ESG Report Preparation Guidelines for Electronic Information Enterprises and the ESG Report Preparation Guidelines for Financial Leasing Enterprises, and actively publishes China Chengxin's views and voices at the ESG standard level to promote the widespread implementation of ESG business.   ESG rating services can effectively guide the rated companies to improve their ESG management. At the same time, as the basis of index products, ESG ratings will bring incremental funds to companies selected into the index components. Carrying out ESG ratings is also an excellent opportunity to understand the ESG level of peers, as well as the company's own ESG performance and positioning, which is conducive to further formulating ESG strategies and policies that are in line with the development of the company. In short, ESG ratings can be used as a management tool for the company itself. A good ESG rating is conducive to improving the company's brand image and thus increasing the company's market value.   The guidelines issued by the three major exchanges also specifically encourage listed companies to conduct climate adaptability analysis and conduct verification work on greenhouse gas emission data. CCXGF has front-line practical experience in climate risk stress testing, has conducted climate risk stress testing services for financial institutions many times, and has rich project experience in climate adaptability analysis. China Chengxin Certification has AA1000 verification qualifications and can provide verification services for greenhouse gas emission data in ESG reports of listed companies , improve the effectiveness of disclosure of sustainable development reports, and enhance the confidence of investors and stakeholders in the disclosure of sustainable development information by listed companies.

On February 28, 2024, Hong Kong Financial Secretary Paul Chan announced the 2024-25 Budget and proposed extending the Green and Sustainable Finance Funding Scheme, which was originally scheduled to expire in the middle of this year, for three years to 2027, and expanding the scope of funding to transition bonds and loans to further encourage relevant industries in the region to use Hong Kong's transition financing platform to gradually reduce carbon emissions.   Paul Chan presents the budget in the Legislative Council   It is reported that the SAR government has successfully funded eligible bond issuers and borrowers through the "Green and Sustainable Finance Funding Scheme" to issue more than 340 green and sustainable debt instruments in Hong Kong, with a total amount of US$100 billion, to realize the vision of building Hong Kong into an "international green technology and financial center". Chan Mo-po emphasized that green development is the "underlying color" of high-quality development. The first "Hong Kong Green Week" held by the government this week covers green technology and finance and other fields, bringing together industry experts and leaders in the Asia-Pacific region to discuss important issues such as green development and climate financing in depth, and through this event, promote countries around the world to deepen green and low-carbon transformation.   CCXGF International believes that the extension proposal of the green and sustainable finance funding program will strengthen market confidence, send more positive signals to the market, enhance market vitality, and help market issuers and borrowers to reasonably arrange the progress of overseas financing. At the same time, this proposal also covers transition bonds and transition loans, which can further encourage high-carbon enterprises to raise funds in Hong Kong, promote the low-carbon transformation and development of the real economy, and further strengthen the market foundation for Hong Kong to build an international green finance center.   CCXGF International is a third-party service agency under China Chengxin International that specializes in green and sustainable finance-related businesses. It obtained the external review qualification of the Hong Kong Monetary Authority's Green and Sustainable Finance Funding Program in June 2023. As the first Chinese rating agency to obtain this qualification, CCXGF International has been deeply involved in the field of green and sustainable finance, and will continue to contribute to Hong Kong's construction of an international green finance center and the promotion of global high-quality development.

On the evening of May 3, 2024, the Hong Kong Monetary Authority officially announced the extension details of the Green and Sustainable Finance Funding Scheme. The green and sustainable finance subsidy policy that has attracted much attention from the market has finally been officially released and confirmed. The new green and sustainable finance funding scheme will be implemented on May 10, 2024 for a period of three years. In addition to continuing to support the relevant green and sustainable debt financing instruments of the previous period, the new funding scheme will cover financial instruments such as transition bonds and transition loans to promote enterprises to use Hong Kong's financing platform to accelerate low-carbon development. CCXGF International believes that the extension and expansion of the funding scheme will continue to promote the development of Hong Kong's green and sustainable financial market and continue to enhance Hong Kong's competitiveness in building an international financial center.   Since the current funding scheme was officially launched in May 2021, the Hong Kong SAR Government has funded more than 390 green and sustainable debt financing instruments in three years, with a financing scale of more than US$110 billion. The subsidy scheme has also become an important support for the development of green and sustainable development finance in Hong Kong in the past three years, allowing Hong Kong to remain Asia's largest green and sustainable bond arrangement and issuance center. (For details, please click "Read the original text")   Compared with the original funding plan, the new funding plan has three major characteristics:   Covering transition financial instruments and requiring disclosure of transition plans or programs The new funding program guidelines clearly propose to include transition bonds and transition loans in the funding scope. At the same time, sustainable development-linked bonds and loans and social responsibility bonds and loans are also clearly written into the funding guidelines. At the same time, the benchmarking and analysis of transition financial products should refer to internationally accepted standards or classification catalogues. It is expected that the above-mentioned financial instruments will become an effective means to continue to support Hong Kong in developing a green and sustainable financial market. Different from the current application for green and sustainable financial instrument subsidies, when applying for funding for transformation financial instruments, issuers or borrowers should submit and disclose their own corporate-level transformation plans and transformation paths. CCXGF International believes that this move will encourage more high-carbon enterprises that intend to raise funds in Hong Kong to accelerate their own transformation process. Benchmarking against Hong Kong Sustainable Finance Classification Catalogue The new funding scheme specifically mentioned the application of internationally accepted principles, standards and guidelines in the external review of pre-issuance external reviews when defining external review services, and specifically mentioned that the Hong Kong Sustainable Finance Classification Catalogue launched by the Hong Kong Monetary Authority on the same day could be used for external reviews. This move will also help enrich Hong Kong's experience in green finance standard building.   Set a cap on pre- and post-issuance evaluation costs The upper limit of external review fees for a single eligible debt financing instrument remains at HK$800,000, but the new funding plan specifies that the upper limit of external review fees before issuance is HK$250,000, and the upper limit of external review fees after issuance is HK$200,000 per year. Clear fee guidelines will promote the healthy development of the green finance external review market. As the most important green finance market in Asia, the new round of green and sustainable finance funding program will continue to promote the development of Hong Kong's green finance market, provide more financing facilities for the majority of market participants, and attract more issuers, borrowers and financial service institutions to participate in the construction of the green and sustainable finance market. CCXGF International is the first Chinese rating agency to obtain the external review qualification for Hong Kong's green and sustainable finance funding program. Through China Chengxin's huge customer network and good market reputation, it provides high-quality green and sustainable finance external review services to issuers and borrowers. As China's leading green and sustainable financial service provider, CCXGF has a deep understanding of the dynamics of China's green finance market, and has accumulated rich project experience in the fields of green, sustainable, socially responsible and transformation bonds and loans, which has been highly recognized by customers and the industry.

On May 3, 2024, the Hong Kong Monetary Authority officially released the Hong Kong Sustainable Finance Classification Catalogue, which will serve as a voluntary market tool to guide the development of green and sustainable finance in Hong Kong, in order to continue to enhance Hong Kong's leadership in the green and sustainable finance market.   Currently, Hong Kong's sustainable finance classification catalog includes 12 economic activities in four major industry sectors, including electricity generation, transportation, construction, water and waste management. As a local classification catalog in Hong Kong, the catalog was formulated with reference to five principles: 1. Consistent with the goals of the Paris Agreement; 2. Guiding the industry to avoid greenwashing; 3. Achieving compatibility with other regional classification catalogs; 4. Relevant goals and evaluation criteria are based on scientific evidence; 5. Adopting the principles of no major harm and minimum social security.   In the process of formulating this classification catalogue, the Hong Kong Monetary Authority also referred to mainstream classification catalogues such as the China-EU Common Classification Catalogue, the China Green Bond Support Project Catalogue, and the EU Sustainable Finance Taxonomy to promote compatibility between standards and expand the liquidity of green financing products.   Since the Hong Kong Monetary Authority released the first discussion document on the Hong Kong Sustainable Finance Classification Catalogue in May 2023, CCXGF International has actively participated in the public consultation on the classification catalogue. Based on its extensive project experience and huge customer network, it has proposed relevant industry green project analysis standards, included more projects in the classification catalogue and other practical experiences, and received special thanks and recognition from the Hong Kong Monetary Authority.   Figure: The Hong Kong Monetary Authority expressed its gratitude for our work in the consultation process of Hong Kong’s Sustainable Finance Classification Catalogue   As Hong Kong's leading green and sustainable financial services provider, CCXGF International will continue to actively participate in the construction of Hong Kong's green and sustainable financial market, continue to provide advice and suggestions for the formulation of subsequent transitional financial classification catalogues, promote the inclusion of more green industries in the classification catalogues, and contribute to Hong Kong's construction of an international green and sustainable financial center.

On May 22, 2024, the International Day for Biological Diversity was held in Hainan, and my country updated and released the "China Biodiversity Conservation Strategy and Action Plan (2023-2030)". As one of the earliest parties to sign and ratify the Convention on Biological Diversity, China attaches great importance to biodiversity conservation, continues to strengthen biodiversity surveys, monitoring and assessments, and organizes ecosystem resource surveys, species resource surveys and various resource censuses. Many central enterprises and state-owned enterprises have actively responded to biodiversity conservation actions, carried out regional environmental governance and ecological restoration, and paid attention to the impact of changes in nature and biodiversity on enterprises, and took timely response measures.   As changes in nature and ecosystems are gaining more and more attention, the capital market needs more complete information to price assets and allocate capital reasonably. The Taskforce on Nature-Related Financial Disclosures (TNFD) is a market-led initiative. It was prepared and initiated by 75 member units around the world (covering financial institutions, companies, government regulators, think tanks and market alliances) in July 2020 and was officially established in October 2021. TNFD will release the final version of the framework recommendations for managing and disclosing nature-related risks in September 2023, so as to better identify and manage risks and opportunities related to the natural environment and promote information disclosure by companies and market stakeholders. The TNFD framework provides a basic concept and definition for the term "nature", dividing it into four major areas: land, ocean, freshwater and atmosphere; due to the different functions of different areas, there are also large differences between different regions, biomes and ecosystems.   Figure TNFD release framework overview   TNFD aims to integrate natural risk factors into corporate management and business decisions, guide global funds to flow to areas that improve the natural environment, and integrate risk management and disclosure content so that companies can disclose and respond to changing nature-related risks such as deforestation and habitat destruction, species loss, drought, land use changes, etc.   TNFD Disclosure Framework   LEAP Analysis Path As the risks associated with nature in financing activities such as lending, investment and insurance, as well as all other consulting activities, are very complex, TNFD provides companies and financial institutions with a path to assess and disclose their dependence on and impact on nature - LEAP, which consists of Locate, Evaluate, Assess and Prepare, and emphasizes the integration of science-based, location-first approaches into corporate and portfolio risk management.   The LEAP approach provides a step-by-step process for companies to assess their nature-related impacts and dependencies across their direct operations and value chains, and to prioritize nature-related risks and opportunities.     Positioning the connection with nature Positioning is a critical factor in the LEAP Guidelines. During the positioning process, companies need to identify priority locations with higher natural values to avoid loopholes in the value differences between different regions and the same areas when assessing natural risks and opportunities. Before assessing how to affect environmental assets and ecosystems, companies can first carefully study the "biomes" in which their operations and value chains are located to ensure that risks and opportunities are correctly identified and quantified.   In order to understand the interaction between the company and the natural environment and screen sensitive points, the company can use geospatial analysis methods to screen and evaluate the natural conditions of the company's main operating areas. The screening assessment can select appropriate assessment criteria based on the company's business characteristics.   Assessing impacts and dependencies Companies need to assess the key impacts and dependencies on nature in direct operations and upstream and downstream value chains, and can use ENCORE and SBTN industry-level importance assessment tools. Generally speaking, important drivers of natural impacts include land, water and ocean use, resource development, climate change, pollution and species invasion; natural dependencies mainly include direct inputs of natural resources, natural factors related to production, and measures to reduce natural impacts.   Assessing nature-related risks and opportunities Companies can use WWF’s risk screening tool to assess nature-related physical and transition risk opportunities based on dimensions such as geographic location, industry category and asset information. The assessment must involve analysis of risks and opportunities in various dimensions related to nature, and consider the impact of the company’s operations on ecosystems, wildlife and biodiversity.   Prepare to respond and report At the end of the assessment, the company should be prepared to present the resulting risk management, strategy and resource allocation decisions. Based on the risks and opportunities identified, management should set objectives and define and measure performance in managing nature-related dependencies, impacts, risks and opportunities.   Case Study China Mengniu Dairy Co., Ltd. ("Mengniu"), as a leading dairy company in my country and one of the top eight dairy companies in the world, demonstrated its high attention to natural capital under the TNFD framework in its 2023 "Nature-related Information Disclosure Report". By analyzing the relationship between business operations and upstream and downstream links of the value chain and nature, it assessed the impact and dependence on nature, identified nature-related risks and opportunities, and provided an example reference for the dairy industry to achieve "harmonious coexistence with nature".   Figure: Identification of Mengniu Dairy’s relationship with nature and biodiversity impact assessment Source: Mengniu official website (https://www.mengniu.com.cn/sustainable.html)   The dairy industry is closely linked to the ecological environment. Mengniu uses the LEAP assessment method, with 68 factories at home and abroad as the basic assessment objects, extending the scope of the assessment to the upstream of the value chain, further including the participating and controlled ranches that provide raw milk to Mengniu; analyzing whether the operating sites of each factory and major ranch involve biodiversity conservation priority areas such as endangered species, biodiversity conservation areas and biodiversity sensitive areas, to provide basic support for the identification and management of nature-related risks and impacts.   TNFD Disclosure Indicators TNFD's disclosure indicators consist of "core disclosure indicators" and "additional disclosure indicators". Based on the disclosure framework, the core disclosure indicators include "core general disclosure indicators" applicable to all industries and "core industry disclosure indicators" for eight major industries. In addition to the disclosure framework, TNFD has also issued a set of additional guidelines to help companies identify, evaluate, manage and disclose nature-related issues. TNFD's disclosure framework and guidelines will help companies and financial institutions incorporate natural information into their decision-making, risk management and disclosure, and ultimately guide global funds to flow into the field of improving the natural environment.       TNFD Draft Industry Disclosure Guidelines To facilitate investors and other stakeholders to compare the performance of companies in terms of nature-related situations within their industries, TNFD analyzes the industry level through quantitative indicators. TNFD released the draft industry guidelines in November 2023 and is still soliciting market opinions, including disclosure indicators and indicator guidelines for some industries, as a supplement to the previous disclosure framework and other guidelines. Currently, TNFD has released nature-related risk assessment guidelines for oil and gas, metals and mining, forestry and paper, food and agriculture, power utilities, chemicals, biotechnology and pharmaceuticals, and aquaculture. In addition, TNFD provides additional guidance for companies in eight major industries to apply the LEAP approach in the draft industry guidelines.   Comparison between TNFD and TCFD Compared to TCFD, which focuses on improving companies' disclosure of risks and opportunities in climate change, TNFD has a broader scope, covering not only climate change but also other nature-related issues such as biodiversity, land use, water resources and ecosystem services.   The purposes of establishing TNFD and TCFD are also different. The goal of TCFD is to help companies identify, assess and manage climate-related risks and opportunities so that investors, creditors and other stakeholders can make informed financial decisions. TNFD provides a framework and tool set to help companies understand, assess and disclose the impact of their activities on natural capital and the impact of changes in the natural environment on the company, emphasizing the company's overall impact and dependence on the natural environment.     TNFD application In January 2024, TNFD released the first list of early adopters, and the companies on the list will complete the disclosure in accordance with TNFD recommendations in fiscal year 2025 or fiscal year 2024 or earlier. Among them, Shanghai Xintonglian Packaging Co., Ltd. will disclose in fiscal year 2024 or earlier, belonging to the container packaging industry; three companies in Hong Kong will disclose in fiscal year 2024 or earlier, and the industries are mainly real estate and power utilities. Figure TNFD Partial list of companies responding in 2024 In addition, although many domestic companies such as ENN Group, Mengniu, and Tencent are not on the early response list, they have adopted the TNFD disclosure framework system to identify natural risks in their 2023 ESG reports. At present, the disclosure parties in my country that refer to the TNFD framework recommendations are mainly concentrated in industry leaders. Affected by factors such as the certain use threshold of natural risk identification tools and the limited attention paid by companies themselves, the actual application of the TNFD disclosure framework in my country is still in the early stages. It is expected that more companies will adopt the TNFD disclosure framework in their ESG reports in the future.   Subsequent impact of TNFD   Building on the experience of the TCFD, the TNFD is expected to have an impact in the following three ways: Influence on other standard systems: ISSB and GRI participated in the design and development phase of the TNFD framework as partners. TNFD also hopes to further help shape specific disclosure standards related to nature. At present, the 2024 version of "GRI 101: Biodiversity" has been officially released, replacing "GRI 304: Biodiversity (2016 version)". The new version mainly provides normative guidelines for biodiversity management and content disclosure and quantification of its impact, and provides reference and basis for companies to identify and measure potential risks arising from biodiversity loss; the European Sustainability Reporting Standards (ESRS) adopted by the European Union recommends the use of TNFD's LEAP assessment method to identify natural and biodiversity risks, and at the same time, "biodiversity and ecosystems" as a theme standard; the International Sustainability Standards Board (ISSB) plans to include "biodiversity, ecosystems and related services" in the priority development theme standards in the next two years; it is expected that more international organizations will cooperate with TNFD on natural information disclosure in the future. Provide reference for government regulations: TNFD will guide financial markets to price asset values and make corresponding capital allocations. The current market-led voluntary disclosure framework may quickly transform into part of the mandatory regulatory framework in many jurisdictions in the future. In addition, the TNFD framework is consistent with the goals of the Kunming-Montreal Global Biodiversity Framework, both of which call on governments to develop relevant documents on corporate disclosure of related risks, dependencies and impacts by 2030. On May 2024, International Earth Day, my country announced that it was preparing the "Implementation Plan for Major Biodiversity Conservation Projects". Other governments also clearly expressed their support for TNFD and considered adopting TNFD recommendations. Impact on corporate value: For enterprises, actively incorporating nature and biodiversity into the decision-making system can help them identify potential nature-related business opportunities, which may in turn increase brand value, expand business areas, attract new capital and increase revenue sources. If nature-related risks are not paid attention to in a timely manner, they may face the destructive impact of changes in natural resources on the supply chain and manufacturing business, which may lead to the risk of rising insurance premiums and capital costs, or be affected by the transition risks brought about by changes in regulatory policies.

  On February 8, 2024, the Shanghai Stock Exchange, Shenzhen Stock Exchange and Beijing Stock Exchange (hereinafter referred to as the "Three Major Exchanges") simultaneously issued the "Self-discipline/Continuous Supervision Guidelines for Listed Companies - Sustainable Development Report (Trial) (Draft for Comments)" (hereinafter referred to as the "Guidelines"), which were officially released on April 12, more than two months later and will be implemented from May 1, 2024. The release of the Guidelines has made clear regulations on the disclosure of sustainable information such as environmental, social and governance (ESG) by listed companies in my country, filling the gap in the ESG information disclosure standards at the regulatory level of listed companies in my country. At the same time, the Guidelines have made mandatory requirements for the disclosure of sustainable development reports by sample companies of important market indices such as the SSE 180, Science and Technology Innovation 50, Shenzhen 100, and ChiNext Index, as well as companies listed at home and abroad. Through the demonstration effect, it will drive the standardized development of sustainable information disclosure by listed companies and even the entire market. The standardization, consistency, comparability and authenticity of the disclosure of listed companies are the basic guarantees of ESG ratings. The release of the Guidelines will greatly improve the quality of China's ESG ratings.   1. China Chengxin International has incorporated ESG factors into its credit rating index system in 2022 The global capital market pays close attention to the impact of ESG ratings or ESG performance on corporate credit. Since 2017, the three major international rating agencies have gradually begun to integrate ESG factors into credit ratings. With the popularization of ESG concepts in China, the gradual improvement of relevant policies and regulatory systems, more and more institutional investors have incorporated ESG factors into asset allocation and risk management, and the correlation between ESG factors and corporate operations and risk levels has gradually increased. The necessity of incorporating ESG factors into the credit rating framework has become increasingly prominent.   From the perspective of credit rating, the impact of ESG factors on corporate credit risk has the following three characteristics: First, different companies in the same industry often face similar ESG risk exposures, while companies in different industries face different ESG risks. Second, the impact mechanism of ESG factors on corporate credit risk is very complex and may have long-term or short-term impacts on companies. Finally, the potential impact of ESG factors on credit levels is mostly negative, and in rare cases may have an improving effect on credit levels. Based on the above characteristics, China Chengxin International Credit Rating Co., Ltd. (hereinafter referred to as "China Chengxin International") has integrated and upgraded ESG factors with credit rating methodology in 2022 by absorbing and learning from international advanced experience and professional consensus, based on the overall situation of China's economic and social development, and combined with the characteristics of issuers in China's bond market. It has incorporated ESG factors directly or indirectly related to credit risk into the rating model, further improving the quality of credit ratings and the foresight and transparency of rating results. Some domestic credit rating agencies still only consider "green factors" or "corporate governance and management" as partial substitutes for ESG factors in the credit rating model, while China Chengxin International selects comprehensive ESG factors related to the credit risk of the issuer, and uses ESG factors as credit rating adjustment items, focusing on the impact of environmental, social and governance factors related to credit risk on the company's risk resistance. In 2023, in order to further improve the accuracy of ESG factor considerations, China Chengxin International will incorporate the ESG rating results of CCXGF Technology (Beijing) Co., Ltd. (hereinafter referred to as "CCXGF") into the ESG factor consideration system used in credit ratings. For entities with ESG ratings below BBB (inclusive), the impact on credit ratings must be evaluated.   In April 2024, the People's Bank of China, the National Development and Reform Commission, the Ministry of Finance, the Financial Regulatory Bureau, the China Securities Regulatory Commission and other seven ministries and commissions issued the "Guiding Opinions on Further Strengthening Financial Support for Green and Low-Carbon Development", which pointed out that "credit rating agencies are encouraged to establish and improve a rating system for green financial products, and support credit rating agencies to incorporate environmental, social and governance (ESG) factors into credit rating methods and models". In the future, as relevant policies are gradually improved and ESG-related information disclosure in various industries becomes more comprehensive, the role and importance of ESG factors in credit rating methods and models will be further enhanced. China Chengxin International will further optimize the indicator system and evaluation methods of ESG factors in credit rating methods and models based on the risk characteristics of different industries, in order to more accurately reflect the impact of ESG factors on credit risk.   2. The release of the Guidelines will greatly improve the quality of ESG ratings of Chinese listed companies Professional third-party ESG ratings are of great reference value to investors and other stakeholders in the capital market. However, due to the development stage of ESG management of Chinese companies and the irregular and incomplete information disclosure, ESG rating results are currently difficult to apply. The release of the "Guidelines" first constrains the disclosure standards and norms.   The Guidelines follow the principle of "dual importance" and are consistent with the essence of ESG ratings. The Guidelines clearly identify issues in two aspects: those that have a significant impact on corporate value (financial importance) and those that have a significant impact on the economy, society and environment (impact importance). "Dual importance" is also a reflection of the inherent nature of ESG ratings. On the one hand, ESG ratings focus on the evaluation of non-financial indicators, and through the grasp of corporate governance, strategy, operations and other aspects, determine the risk transmission mechanism, and effectively identify the inherent ESG risks that affect the sustainable development of enterprises for stakeholders; on the other hand, ESG ratings also focus on the short- and medium-term benefits and impacts of corporate operating behaviors on the outside, and incorporate the environmental, social and economic values of enterprises into ESG rating factors. The consistency of the inherent concepts of ESG information disclosure and ESG ratings will help meet the needs of investors and other stakeholders.   The selection of topics in the Guidelines is in line with international consensus and takes into account local characteristics, meeting the essential needs of building an ESG rating system for China's national conditions. The Guidelines carry out sustainable development information disclosure around the four aspects of "governance, strategy, impact, risk and opportunity management, indicators and targets", which is consistent with the IFRS framework content released by the International Standards Organization ISSB; in terms of topic selection, the Guidelines clearly define "responding to climate change", "resource utilization and circular economy", "pollution prevention and ecosystem protection", "commercial bribery and unfair competition ", "employees" and other global consensus issues, especially in the aspect of "responding to climate change", which is also a specific implementation under the background of China's "carbon peak and carbon neutrality" goals.   In addition, the "Guidelines" also fully consider the effective combination of international sustainable development goals with my country's actual situation, such as green development, support for small and micro enterprises, and achieving common prosperity. It has set up topics with Chinese characteristics such as "rural revitalization", "science and technology ethics", and "payment by small and medium-sized enterprises". On the basis of complying with the major international sustainable development goals, it carries out localized construction in specific content.   The CCXGF team has carefully studied the indicator system of the "Guidelines", which includes about 288 detailed indicators from the information disclosure perspective. Among them, those that are in line with the China Chengxin ESG rating indicators (Level 3) are shown in the following table for reference by market stakeholders.   First level indicator Secondary indicators Level 3 indicators Combating climate change Adaptability of strategies, business models, etc. to climate change The impact of climate change on corporate strategy and business models How corporate strategies and business models can address climate change Significant uncertainties that companies consider when assessing their climate resilience Ability to adjust strategy and business model Transformation plans, measures and progress in addressing climate-related risks and opportunities Business adjustments to address climate-related risks and opportunities Mitigating climate change Adapting to climate change Transformation Plan Implementing transformation plans Greenhouse gas emissions Scope 1 emissions Scope 2 emissions Scope 3 emissions Carbon reduction Carbon emission reduction related information Carbon Emission Reduction National Voluntary Greenhouse Gas Emission Reduction Program Certified Emission Reductions (CCERs) (if any) Participation in other emission reduction mechanisms (if any) Carbon Emission Reduction Research and Development R&D details R&D investment amount R&D Progress Pollution prevention and ecosystem protection Pollutants Wastewater Information Pollutant treatment Pollutant prevention Pollutant prevention and control results Main pollutants Waste Waste emission targets Specific measures taken to achieve waste management goals Total amount of hazardous waste (in tons) Hazardous waste density (e.g. per unit of revenue, per unit of production, per facility) Total amount of non-hazardous waste (in tons) Non-hazardous waste density (e.g. per unit of revenue, per unit of production, per facility) Hazardous waste treatment methods Disposal of hazardous waste Ecosystems and biodiversity Biological genetic resources Species and their habitats Impacts and dependencies of products throughout their life cycle on ecosystems and biodiversity Environmental Events Emergency Plan Major environmental incidents Major environmental incidents that have resulted in penalties from regulatory authorities or criminal prosecutions Resource Utilization and Circular Economy Circular Economy Specific measures for circular economy Specific progress and achievements of circular economy Energy Use Total direct energy consumption Total indirect energy consumption Total energy consumption Energy consumption intensity Renewable energy use Clean energy use Energy saving Water Resources Total water consumption Total water consumption intensity Water conservation Rural Revitalization and Social Contribution Rural Revitalization Specific circumstances of integrating support for rural revitalization and consolidation and expansion of poverty alleviation achievements into the company's strategy Specific measures to support rural revitalization Achievements in supporting rural revitalization Social welfare Basic information on contributions to the public and society Innovation drive, suppliers and customers Innovation Driven Strategies and goals for scientific and technological innovation Specific situation of scientific and technological innovation R&D progress and achievements supply chain management The Basics of Supply Chain Risk Management Ensure the security and stability of the supply chain Safety and quality management of products or services Product or service quality management system Quality management related certifications obtained by the company Major safety and quality accidents related to products or services (if any) After-sales service, product recall Customer Complaints Data Security and Customer Privacy Data Security Data security incidents (if any) Customer Privacy Customer privacy breach incidents (if any) staff Employee Recruitment and Treatment Policies on employee recruitment and treatment Implementation of policies on employee recruitment and treatment Status of employment and informal employment of employees Gender composition of current employees Labor Disputes Staff changes Compliance, openness and transparency of recruitment and hiring procedures Occupational Health and Safety Establishment and implementation of occupational health and safety management system Establishment and implementation of occupational health and safety management related training Work Injury Insurance Personnel coverage rate of production safety liability insurance Detailed information of the safety responsibility accident (if any) Employee career development and training Company job system settings Employee promotion mechanism, selection and career development mechanism Types of employee training Number of staff training sessions Staff training progress Annual training expenditure Sustainability Framework Governance Structure The establishment of sustainable development management and supervision institutions Institutional expertise and capabilities Establish information reporting mechanism Internal control system for goal setting and execution Measures and methods to integrate sustainability impacts, risks and opportunities into strategic and major transaction decisions strategy Identified sustainability-related risks and opportunities Significant impacts of the company's business activities on the economy, society and environment Measures and actions taken to mitigate significant impacts The impact of sustainability-related impacts, risks and opportunities on corporate strategy and decision-making Impact, Risk and Opportunity Management Methods for identifying sustainability-related impacts, risks and opportunities Monitoring of sustainability-related impacts, risks and opportunities Integrate sustainable development-related impacts, risks and opportunities into the company’s internal management processes Indicators and targets Sustainable Development Goals and Targets Status and progress in achieving Sustainable Development Goals and targets Preventing Commercial Bribery and Unfair Competition Anti-commercial bribery and anti-corruption Anti-commercial bribery and anti-corruption management system Assessing commercial bribery and corruption risks Anti-commercial bribery and anti-corruption training Commercial bribery and corruption incidents Anti-unfair competition Unfair competition behavior leading to litigation or major administrative penalties   The release of the Guidelines will enhance the comprehensiveness and integrity of ESG information disclosure by listed companies, and will also have important guiding significance for the ESG management of listed companies. For ESG ratings, standardized and comprehensive indicators will more accurately reflect the ESG governance level of Chinese listed companies, and also provide an important basis for judging the scientificity, quantifiability and comparability of ESG rating indicators and weight settings. China Chengxin will uphold its objective, neutral and impartial third-party status, and continue to optimize and promote the ESG rating indicator system for Chinese listed companies in accordance with the contents of the Guidelines, and provide effective support for listed companies to improve their own ESG governance level and meet the requirements of stakeholders.

  by the School of Business and Economics of the University of Hong Kong, the founder of the University of Hong Kong and SWT was successfully held at Two Exchange Square in Central, Hong Kong on March 14, 2024. China Credit Green Gold International attended the event as an invited unit. The forum aims to explore the development trends and innovative practices in the field of Web3.0 new infrastructure. Industry experts and scholars from all over the world gathered together to bring a colorful academic feast to the participants.   Pictured is Professor Joseph Chan of the School of Business and Economics at the University of Hong Kong   At the opening ceremony of the forum, Prof. Joseph Chan from the School of Business and Economics of the University of Hong Kong delivered an opening speech, emphasizing the importance of Web3.0 as a new global infrastructure and the key role of Web3.0 technology in the global layout. He hopes that the forum will promote deeper cooperation and exchanges among all parties and promote the development of Web3.0.     As one of the important speakers at the forum, Professor Mao Zhenhua, founder of China Chengxin Group, chief economist of China Chengxin International, and professor of the School of Business and Economics of the University of Hong Kong , expressed his views on the theme of "Hong Kong: Challenges and Choices under Major Changes" and conducted an in-depth analysis from the perspectives of currency development and Hong Kong's location advantages.   Figure 1 and Figure 2 show the roundtable discussion hosted by SWT partners Royce and Nicky.   As one of the organizers, two partners of SWT hosted two highly anticipated roundtable meetings. The meetings focused on "Web3.0 New Infrastructure and Industry Development Outlook" and " Compliance Innovation Exploration under the Global Layout of Web3.0 New Infrastructure ". These two themes reflect the organizers' attention to cutting-edge issues in the industry and their deep insight into future development. This roundtable meeting also provides participants with a unique platform to promote communication among professionals in the industry and inject new vitality into the innovation and development of the industry.     Wang Qian, President of CCXGFI, also participated in the roundtable session as an important guest of this forum. At the forum, Wang Qian shared the practical significance of Hong Kong's tokenized green bonds and whether the expansion of Web3.0 new infrastructure can provide new growth points for the development of green finance, providing useful reference for the compliance exploration of Web3.0 new infrastructure.   Through this Web3.0 Global New Infrastructure Forum, participants gained an in-depth understanding of the development trends and practical cases of Web3.0. The speakers delivered wonderful speeches on important topics, which brought in-depth thinking and inspiration to the participants. The roundtable session of the forum provided a platform for participants to communicate and discuss together, deepening the communication and cooperation between each other. It can be foreseen that the holding of this forum will further promote the development of Web3.0 new infrastructure.

  On February 26, 2024, the first "Hong Kong Green Week" and "Hong Kong Green Technology Forum 2024" were officially launched at the Hong Kong Convention and Exhibition Center. The conference was co-organized by the Green Development Research Institute, Hong Kong Science and Technology Parks Corporation and the Guangdong-Hong Kong-Macao Greater Bay Area Green Finance Alliance. CCXGFI was the sponsor and exhibitor of the conference. Ms. Wang Qian, President of CCXGFI, was invited to attend the roundtable discussion and speak.     (From left) Secretary for Financial Services and the Treasury Paul Chan, Chairman of Hong Kong Science and Technology Parks Corporation Dr Richard Cha, Director of the Green Development Institute Dr Ma Jun, Financial Secretary Paul Chan, Secretary for Innovation, Technology and Industry Professor Sun Dong, Director-General of the Economic Department of the Liaison Office of the Central People's Government in the Hong Kong Special Administrative Region Xu Weigang and Secretary for Environment and Ecology Tse Chin-wan.   Secretary for Financial Services and the Treasury Paul Hui, Chairman of Hong Kong Science and Technology Parks Corporation Dr. Cha Ngai-chiu, Director of Green Development Institute Dr. Ma Jun, Financial Secretary Paul Chan, Secretary for Innovation, Technology and Industry Professor Sun Dong, Director of Economic Affairs Department of the Liaison Office of the Central People's Government in the Hong Kong Special Administrative Region Xu Weigang and Secretary for Environment and Ecology Tse Chin-wan attended the meeting and delivered speeches. During the meeting, six roundtable forums were held, with guests including policy bureau directors of the Hong Kong Special Administrative Region, representatives from the business, academic and venture capital sectors , and in-depth discussions on building a policy and ecological system to support the development of green technology in Hong Kong, green and low-carbon technologies in the construction industry, green and low-carbon technologies in the transportation sector, circular economy and green energy, green technology investment and incentive mechanisms, and the integration of industry, academia and research in green technology.     Ms. Wang Qian, President of CCXGFI, was invited to attend and speak at the roundtable discussion on green technology combining industry, academia and research. Wang Qian pointed out that China Chengxin Green Finance and green technology companies and projects form a community of interests. China Chengxin Green Finance provides labeling and certification services for green bonds issued by enterprises, and carries out ESG rating services, providing effective financial support for the green, low-carbon and transformation development of enterprises, helping the green economy, reducing carbon emissions and enhancing the brand reputation of enterprises.   Ms. Wang Qian analyzed how green finance can be effectively combined with green technology by analyzing typical cases of China Chengxin Green Finance in the bank's green finance system, ESG rating business, and green science and technology innovation bond assessment. Through the bank's green finance system, China Chengxin Green Finance helps customers reduce manual work time and the difficulty of material review; in the field of ESG rating and ESG database, China Chengxin Green Finance has established a large-scale ESG database to help investors make sustainable investment decisions. In terms of green bonds, China Chengxin Green Finance has undertaken many industry-first landmark projects, especially the dual-label projects combining science and technology innovation and green, which have brought a good demonstration effect to the market.   As China's leading green financial service provider, Wang Qian believes that financial and technology companies should develop products and services closely around the dual carbon goals and the needs of addressing climate change, delve into issues such as reducing emissions and carbon emissions, identifying climate risks, and conducting more accurate carbon verification, and closely embrace the demands of the real economy. Only in this way can they better help Hong Kong build an international green technology and financial center.   The Hong Kong Green Technology Forum 2024 has concluded successfully. As a leading force in the financial services industry, CCXGFI will give full play to its professional capabilities in green financial services and contribute more to promoting Hong Kong's accelerated construction as a "dual engine" center for green technology and green finance.

On August 13, 2024, CCX Green Finance International was invited to attend the "2024 Bay Area ESG Blueprint: Creating a New Chapter of Green Prosperity" seminar at the University of Hong Kong. The seminar was co-organized by the Hong Kong University Jockey Club Global Corporate Sustainability Institute and Financial Reading. Executives and experts in the field of sustainable development from academia, media, construction, shipping, finance and other industries were invited to attend the seminar and conduct in-depth exchanges and discussions on topics such as ESG development and green finance. The seminar was hosted by Ms. Lu Ling, assistant editor-in-chief of Caijing magazine. Professor He Guojun of the Hong Kong University Jockey Club Global Corporate Sustainability Institute made an opening speech. Yang Junhao, CEO of CCX Green Finance International, made a keynote speech and focused on core issues such as ESG information disclosure, green bonds, and climate risks.     Yang Junhao pointed out that as China's leading green financial service provider, CCX Green Finance International fully participates in the business development of green and sustainable finance, ESG ratings and data, climate risk disclosure and management, and actively contributes to the development of Hong Kong's green and sustainable financial market. At the same time, CCX Green Finance International, relying on the advantages of its parent company CCX Ratings, actively expands the ESG rating sector, strives to make the Chinese voice of ESG rating, demonstrates the Chinese solution of ESG rating, actively improves the ESG disclosure and performance of Chinese companies, and helps Chinese companies participate in the global competition of ESG.     During the thematic discussion session, experts from fields such as construction and shipping shared the ESG practice results in their respective fields, sorted out the opportunities and challenges facing ESG management and disclosure at this stage, and analyzed how to integrate ESG management into daily operations to promote corporate performance growth. They also particularly welcome and expect Chinese institutions like China Chengxin to lead the development of ESG ratings and disclosures, and continuously improve the competitiveness and voice of Chinese companies in the global ESG field.     In the future, CCXGFI will continue to strengthen its interaction and cooperation with academia and the media, promote the implementation of all-round results in the field of sustainable development, help more Chinese companies improve their ESG disclosure and management capabilities, continuously enhance the influence of ESG ratings, and continue to support the construction of Hong Kong as an international green finance center.  

On January 29, 2024, Dr. Yuan Haixia, Executive Director of China Chengxin International Research Institute, held a closed-door sharing session in Hong Kong at the China Chengxin Hong Kong Headquarters. The meeting conducted in-depth analysis and discussion on China's local debt risks. Dr. Yuan Haixia, Executive Director of China Chengxin International Research Institute, Shao Jinhong, President of CCXAP, Wang Qian, President of China Chengxin Green Gold International, and more than 20 guests from institutions such as Bank of China (Hong Kong), CCB Asia, and China Merchants Financial Holdings attended the meeting.     In his speech, Wang Qian, President of CCX Green Finance International, said that CCX Green Finance International, as the first Chinese rating agency to obtain the external review qualification of the Hong Kong Monetary Authority's Green and Sustainable Finance Funding Program, uses Hong Kong as a bridgehead to actively assist Chinese companies in overseas financing, promote business expansion to the Belt and Road countries , and help build a strong financial country. While thanking all the guests for their support, Wang Qian also said that CCX will continue to organize more exciting lectures.   Dr. Yuan Haixia, Executive Director of China Chengxin International Research Institute, put forward her views on the two issues of local debt risk and sustainable development of local debt in a simple and easy-to-understand manner in her keynote speech. When talking about local debt risk, Dr. Yuan Haixia believes that, in general, the current risk of local debt is generally controllable, but local governments are indeed under great pressure to pay interest. The risk of local debt is controllable, but the pressure is rising. It is necessary to focus on structural, regional and hidden debt risks. On the issue of local sustainable development, Dr. Yuan Haixia emphasized that the core logic of the formation of local debt is inseparable from the three factors of central-local relations, performance assessment, and land capitalization. Among them, real estate and land finance are important factors supporting debt sustainability. The sustainable development of local debt should focus on handling the five relationships between short-term goals and long-term development, central and local, economic growth and optimal debt scale, fiscal sustainability, debt development and long-term management mechanism, and government and market, and accelerate the construction of a long-term mechanism.   During the free discussion session, the guests actively interacted on issues such as bond issuance, urban investment, real estate and land finance, overseas bonds, financial risks, and future business models, and shared their experiences and views.   This closed-door sharing session focused on local debt risks and sustainable development. Facing the challenges of local debt problems and sustainable development, stakeholders need to take more proactive measures to promote the management of local debt risks, enhance investor confidence, and create a healthier and more stable investment environment. CCX Green Finance International hopes to contribute more to global green and sustainable development together with the guests through this event.