ESG Investing Frontiers Forum | ESG Investment and Business Innovation

The 22nd ESG Investing Frontiers

ESG Investment and Business Innovation

The 22nd ESG Investing Frontiers Forum, themed "ESG Investment and Business Innovation," was hosted by the China Alliance of Social Value Investment (referred to as "CASVI"). Ms. Li Wen, Head of Research Institute at China Alliance of Social Value Investment   , served as the moderator. The forum took place at Bays Work Accelerator and was simultaneously livestreamed on platforms such as Sina Finance, China Fund News, Panorama Network, Phoenix Net, and CASVI.

Opening Remarks:

Making ESG an Intrinsic Driving Force for High-Quality Corporate Development

ESG, initially proposed by the United Nations, is currently reshaping corporate values and ecosystems due to its wide applicability and quantifiable evaluation characteristics. China, with its nationwide efforts, emphasizes high-quality development, as highlighted in the 20th National Congress of the Communist Party of China: "High-quality development is the primary task of achieving Chinese-style modernization." Therefore, to achieve high-quality development, the new development concepts of innovation, coordination, greenness, openness, and shared benefits need to be integrated throughout the entire process of economic and social development. This approach allows for grasping, measuring, and promoting development.

The relentless efforts of the United Nations over the years have made ESG a responsibility for global enterprises. Currently, there are thousands of regulations worldwide advocating and requiring corporate social responsibility and ESG. Over 30 stock exchanges globally mandate ESG disclosure by companies, and regulatory authorities in China are increasingly formulating stricter ESG measures for listed companies. However, many companies still passively practice ESG. Companies should actively practice ESG, integrating both social benefits and economic interests, to make ESG an intrinsic driving force for high-quality development.

Today, more and more companies are pursuing social values and fulfilling social responsibilities in the process of high-quality development, making their contributions to the friendly development of the social environment. To practice ESG, companies should not rely solely on passive compliance with regulations and rules but spontaneously change their intrinsic values and consciously practice ESG. By doing so, ESG becomes an intrinsic driving force for high-quality corporate development, leading companies towards a more sustainable future. With more companies engaging in this endeavor, high-quality development becomes more than just rhetoric; it becomes a reality for the entire society.

Keynote Speech 1:

Enterprise Innovation and Social Value Investment

From an economic perspective, social value investment is a contribution to society and a return that society can obtain. Social value investment differs significantly from the commonly mentioned corporate social responsibility in that social responsibility can clearly separate investments from social value, whereas social value investment requires achieving both returns and value simultaneously.

Firstly, social value investment must be an investment that generates returns. Sustainable social value investment can only be achieved when companies do not incur losses. On the one hand, regardless of whether companies consider social value, social value itself will be formed due to the company's actions and can reciprocally reassess the company's value. This external pressure is unavoidable. On the other hand, people's evaluation of corporate value and social externalities will eventually become institutionalized and turn into rules. These rules will pose challenges to the company's development. One important case is carbon tariffs, such as the EU Carbon Border Adjustment Mechanism (CBAM) and the US Clean Competition Act (CCA), which have sparked discussions. Many WTO members have also accepted carbon tariffs, and in the foreseeable future, we can expect carbon tariffs to transition from "plans" to new "institutions." I call on companies from all sectors to pay attention to social value investment. On the one hand, they should actively practice ESG, and on the other hand, contribute to the development of relevant institutions. This is not only an advocacy for social value but also a requirement for corporate social responsibility.

Keynote Speech 2:

ESG Talent Development

What is the significance of ESG talent development? Firstly, it enables companies and employees to clarify their positioning. When developing their ESG reports, companies need to consider policy requirements, conduct extensive research, and consider internal and external relationships before disclosure and reporting. In terms of business operations, key performance indicators need to be measured according to ESG before formulating strategies, constructing business models, and makinginvestment decisions. Therefore, ESG talent development helps companies align their operations with sustainability goals and effectively communicate their ESG efforts to stakeholders.

Secondly, ESG talent development promotes innovation and creativity within organizations. ESG professionals are equipped with the knowledge and skills to identify emerging ESG risks and opportunities.

Thirdly, ESG talent development enhances risk management capabilities. ESG risks, such as climate change, supply chain disruptions, and reputational issues, can have a significant impact on business operations and financial performance.

Lastly, ESG talent development contributes to attracting and retaining top talent. By investing in ESG talent development, companies can position themselves as desirable employers for individuals who are passionate about making a positive impact. This not only helps attract top talent but also fosters employee engagement and loyalty, leading to higher productivity and overall organizational success.