ESG News| July

Selected Monthly ESG News

Carbon Finance

Dubai National Bank of the UAE Introduces Carbon Market Trading

On July 4, the Dubai National Bank of the United Arab Emirates commenced trading in carbon futures contracts. These contracts comply with the standards set by the European Union Emissions Trading System (ETS) and the UK Emissions Trading Scheme, ensuring a high level of transparency, credibility, and accountability.

Release of "National Low Carbon City Pilot Progress Evaluation Report"

On July 12, during the "National Low Carbon Day" event, the Ministry of Ecology and Environment published the "National Low Carbon City Pilot Progress Evaluation Report." Since 2010, China has launched 81 pilot projects for national low-carbon cities in three phases. The average score for these pilot cities is 79.2 points. However, there is room for improvement in the categories of "innovative initiatives"and"low-carbon institutional mechanism construction," which received average scores of 72.1% and 68.4%, respectively. This suggests that many pilot cities need to enhance their efforts in promoting low-carbon development and establish robust institutional mechanisms.

Growing Demand for "Dual-Carbon" Talents in China

As of July 25, it is estimated that China will require between 550,000 to 1 million "dual-carbon" talents during the "14th Five-Year Plan" period. This demand surge is attributed to the inclusion of various industries into the national carbon market since 2021. In response, the Ministry of Education issued a plan in 2022 to strengthen the cultivation of higher education for carbon peaking and carbon neutrality, incorporating green and low-carbon concepts into the education system. As a result, more professions in energy conservation, emission reduction, environmental consulting, and green finance will emerge, providing ample employment opportunities for skilled individuals.

Sustainable Investments

Ping An Asset Management Officially Joins the United Nations Principles for Responsible Investment (UNPRI)

On July 4, Ping An Asset Management Co., Ltd. officially announced its signing of the United Nations Principles for Responsible Investment (UNPRI) as an "investment manager," becoming a member of the UNPRI organization. As the first domestic asset owner to endorse the "Principles for Responsible Investment," Ping An Group of China has now integrated responsible investment into the core agenda of ESG sustainable development and established a systematic responsible investment framework.

Coca-Cola Launches Sustainable Development-focused Venture Capital Fund

On July 13, The Coca-Cola Company revealed its plans to establish a venture capital fund with a primary focus on sustainable development. The fund aims to support startups that offer solutions capable of reducing the carbon footprint of the Coca-Cola system, including both the company itself and its bottling partners. The fund will launch with an initial investment of $138 million, including $15 million from the company and its eight bottling partners.

United Airlines' Sustainable Flight Fund Reaches Nearly $200 Million

On July 25, United Airlines announced that its investment fund dedicated to sustainable aviation fuel (SAF) - the United Airlines Ventures Sustainable Flight Fund - has grown to nearly $200 million. Additionally, the fund has welcomed eight new corporate partners. The inaugural partners include Air Canada, Boeing, General Electric Aviation, JPMorgan Chase, and Honeywell, among others.

Green Finance

Starting from 2024, ISSB Will Oversee Climate-Related Disclosures Supervision Previously Held by TCFD

On July 10, following the release of the first set of ISSB standards (IFRS S1 and IFRS S2), the Financial Stability Board (FSB) has requested the IFRS Foundation to take over the regulatory oversight of companies' progress on climate-related financial disclosures from the Task Force on Climate-related Financial Disclosures (TCFD). IFRS S1 and IFRS S2 are now fully integrated into TCFD's recommendations.

EU Council Adopts the "New Battery Regulation"

On July 10, the EU Council adopted the "New Battery Regulation," which will come into effect on July 30. This regulation standardizes the entire lifecycle of batteries, from production to recycling, ensuring their safety and sustainability. The proposal includes 79 binding provisions covering all types of portable batteries, starter batteries, vehicle batteries, and industrial batteries.

Successful Holding of the 2023 China-US Climate Finance Bilateral Dialogue

On July 24, the 2023 China-US Climate Finance Bilateral Dialogue was successfully held, aiming to strengthen climate and energy cooperation between China and the United States. More than 50 experts from both countries engaged in in-depth discussions on common concerns and areas of potential collaboration, such as climate-related financial disclosures, trade and carbon markets, green development in third-party countries, and climate finance at the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change.