Writer: Jenica OU
Verifier: George KIONGSON
Mt. Stonegate Shanghai Team successfully conducted an on-site workshop on July 25th, 2024 centered around the theme "Charting a Sustainable Path: Empowering Corporate ESG with Market Tools". This workshop highlighted the increasingly integral role of sustainability for enterprises in the context of "dual carbon" and evolving international regulations. The focus was on striking a balance across interconnected areas such as selecting renewable market tools, carbon asset management, and ESG information and disclosure and improvement. Industry experts from China Carbon Neutral Action Alliance (CCNAA/Shanghai Environment and Energy Exchange), CDP China, and E-Square were invited to share their expertise on the above topics.
Figure 1: Dr. Jules Chuang, Managing Director of Mt. Stonegate, delivered the opening speech
Yiling Zhang, Manager of Back-Office China at Mt. Stonegate, presented a comprehensive discussion covering China's renewable energy objectives, power generation structure, oversupply in the current renewable market, procurement strategies of green electricity by Chinese companies based on the RE100 annual report, development of the China Green Energy Certificate (GEC) and the impact of the GEC new regulation on the market. Additionally, potential risks that companies may encounter in both domestic and overseas markets were analyzed, along with suggestions on how to choose market tools.
Figure 2: Yiling Zhang. Manager Back-Office China, at Mt. Stonegate
Feng Peng, the Director of Shanghai Environment and Energy Exchange, and Secretary General of a CCNAA delivered a speech entitled "Carbon Solutions Under the Dual Carbon Policy". The speech highlighted the challenges and opportunities presented to enterprises by the policy guidelines and action plans issued under the dual carbon policy. Engaging in carbon reduction with the direction of controlling the amount and intensity of energy consumption can bring long-term economic benefits to enterprises. Enterprises should begin by establishing the motivation and goals for carbon reduction to achieve net zero. It is essential to invest human and financial resources to align with the strategic positioning and establish a management system covering multiple dimensions. Moreover, capable enterprises can evolve internal carbon reduction projects into carbon credit projects to acquire additional carbon assets.
Figure 3: Feng Peng, the Director of Shanghai Environment and Energy Exchange, and Secretary General of a CCNAA
E-Square Inc. has more than 10 years of extensive experience in guiding ESG ratings and has assisted about 100 companies in improving ESG scores. CEO Ken Oikawa and division director Dr. Hao Wang shared key practices for enhancing ESG scores. Ken Oikawa emphasized the importance of improving ESG information disclosure, stating that it would increase the company’s long-term value. Dr. Hao Wang used the FTSE ESG index as an example, explaining the rules, processes, and outcomes of the FTSE ESG rating system. He also analyzed domestic instances of FTSE ESG ratings.
Figure 4: Ken Oikawa. CEO at E-Square Inc.
As an ASP( Accredited Solution Provider) of CDP, we had the privilege of hosting Xuan Gui, head of Disclosure and ASP, greater China to share her insights. Xuan Gui pointed out that the era of mandatory environmental information disclosure has arrived. Both domestic and overseas institutes have required mandatory disclosure including ESRS, IFRS S2, the Hong Kong Stock Exchange, Shanghai, Shenzhen, and Beijing Stock Exchanges. The requirements are now extending to small and medium-sized enterprises and scope 3. According to CDP's statistics in 2023, scope 3 emissions are huge but also easily overlooked by most companies. Therefore, it is crucial to let the supply chain engage in solving environmental risks. Xuan Gui said CDP's 2024 disclosure framework has aligned with mainstream international standards. Additionally, special questionnaires will also be launched for small and medium-sized enterprises, focusing on climate and simplifying the format. These changes will greatly improve the efficiency and convenience of CDP disclosure.
Figure 5: Xuan Gui, head of Disclosure and ASP, at CDP
The fruitful workshop concluded with our original "Climate Explorer" board game. Attendees could put their theoretical knowledge into practice and engage in fun and interactive ways. This game not only helps players familiarize themselves with multiple terms and measures regarding carbon reduction but also aims to remind them that in a constantly changing market, challenges and opportunities coexist. Seizing opportunities and planning for the corporate energy transformation in advance is essential to obtaining long-term benefits.
Figure 6: Workshop Venue
The collaboration between Mt.Stonegate and the E-Square team, as well as the participation of our invited speakers and the active engagement of attendees, were all essential to the success of this symposium. We are looking forward to organizing more exciting events in the future to share expertise and insights. On the journey towards sustainability, Mt.Stonegate will lead to a better future.
Click the link below to read the Chinese version: https://mp.weixin.qq.com/s/Vi-QvxDLJvkXHuHQgqAzYQ
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