2024 China SIF | Nan Li Collins (UN SSE Chair): ESG Leads Capital Markets Towards a Sustainable Future
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Update time : 2024-12-19 16:26:49
On December 3, 2024, the 12th China SIF Annual Conference was successfully held in Beijing. The conference was hosted by SynTao Green Finance, with co-hosts from the United Nations Environment Programme Finance Initiative (UNEP FI) and the United Nations Sustainable Stock Exchanges Initiative (UN SSE). Many experts from regulatory bodies, markets, academia and domestic and international organisations expressed their views and discussed the 20-year development of ESG investment and the opportunities and challenges of responsible investment in China. The event attracted over 300 in-person participants and drew approximately 550,000 online views. The Chair of the UN Sustainable Stock Exchange Initiative at the China Responsible Investment Forum and Senior Director of the Investment and Enterprise Division, UN Trade and Development (UNCTAD), Ms. Nan Li Collins dedicated an opening speech to China SIF. The theme of her speech is: 20 Years of ESG: Reflecting on the Past, Shaping the Future. The following is a transcription of her speech:
Ladies and gentlemen, distinguished guests, and esteemed colleagues,
It is both an honor and a privilege to join you today at the China Responsible Investment Forum as we reflect on the 20-year journey of Environmental, Social, and Governance (ESG) integration into the world of finance and investment. I extend my heartfelt gratitude to the organizers for bringing together this community of changemakers dedicated to building a more sustainable future.
Two decades ago, ESG was a fledgling concept—a vision of how capital markets could contribute to sustainable development. At the time, many viewed it as an aspirational idea, separate from the traditional objectives of financial performance. However, today, ESG is no longer a fringe movement. It is a cornerstone of responsible investing, a key driver of risk management, and a catalyst for value creation.
Over the years, we have seen ESG evolve from niche discussions to mainstream strategies. Companies that once considered ESG disclosures optional now see them as essential. Investors who previously focused solely on short-term profits increasingly recognize the importance of long-term sustainability. Globally, sustainability-linked assets under management have surpassed $50 trillion, demonstrating the market’s recognition that ESG is not just good for the planet—it’s good for business.
China, in particular, has played a vital role in this transformation. The country’s commitment to green finance, carbon neutrality by 2060, and integrating ESG principles into policy frameworks has set an example for emerging and developed economies alike. The leadership of institutions like the China Securities Regulatory Commission and the growth of green bonds and climate-focused initiatives have underscored the region’s commitment to sustainable development.
At the UN Sustainable Stock Exchange (SSE) Initiative, our mission is to harness the influence of stock exchanges to promote sustainable development. Exchanges have a unique role to play in this ecosystem. They are at the intersection of issuers, investors, and regulators, and they hold the power to amplify sustainability practices across industries.
Today, more than 130 stock exchanges, representing over 50,000 listed companies and $90 trillion in market capitalization, are part of the SSE network. Together, we have worked to advance ESG disclosure, improve corporate governance, and mobilize private sector investment for the Sustainable Development Goals (SDGs).
For instance, the Shanghai and Shenzhen stock exchanges have taken bold steps to incorporate ESG into their markets. Initiatives such as mandatory ESG disclosures and the development of ESG indices have not only enhanced transparency but also guided investors toward more sustainable portfolios.
While we celebrate the achievements of the past 20 years, we must also acknowledge the challenges ahead. Climate change, biodiversity loss, social inequality, and governance risks remain critical issues that require urgent attention.
As ESG enters its next chapter, we must focus on:
1. Harmonization of Standards: The lack of standardized ESG metrics remains a barrier to comparability and accountability. Collaborative efforts like the ISSB (International Sustainability Standards Board) must be accelerated to create a unified global framework.
2. Greenwashing Prevention: As ESG gains popularity, the risk of greenwashing grows. Ensuring that ESG claims are credible and backed by robust data is imperative.
3. Inclusive Growth: ESG strategies must prioritize equity and inclusivity, ensuring that marginalized communities benefit from sustainable development efforts.
4. Technology and Innovation: From AI-driven ESG analytics to blockchain for supply chain transparency, leveraging technology will be key to scaling ESG impact.
As we look ahead, I believe we stand at a critical inflection point. ESG is no longer a matter of “if” but “how.” The next 20 years will define the depth and breadth of ESG integration across the global economy.
To seize this moment, we must:
1. Strengthen Public-Private Partnerships: Governments, investors, and corporations must collaborate to align capital flows with sustainability goals.
2. Empower Local and Regional Leadership: Forums like this one in China are essential to ensuring that ESG strategies are contextually relevant and impactful.
3. Educate and Engage: Building a culture of ESG awareness, from boardrooms to classrooms, is essential for creating long-lasting change.
In closing, let us recognize that the story of ESG is not just about finance—it is about humanity’s collective journey toward a more just, equitable, and resilient world. As we mark 20 years of progress, let us also recommit ourselves to the work that lies ahead.
China has shown remarkable leadership in this journey, and I have no doubt that this forum will inspire new ideas, partnerships, and innovations that will drive the ESG movement forward. Together, let us continue to transform the capital markets into a force for good.
Thank you.
We would like to thank our strategic partners Moody's, AXA SPDB Investment Managers, and partners Sungent Urban Development, Huatai Securities for their support of the 12th China SIF Annual Conference. The supporting organisations: include Bank of Jiangsu; SynTao Consulting; Beijing Enterprise Confederation; CDP China; Global Environmental Institute (GEI); Climate Bonds Initiative (CBI); FAIRR Initiative; Asia Investor Group on Climate Change (AIGCC). The media partners include Sina Finance; The Economic Observer; Caijing Magazine; Stockstar; China Fund News; Jiemian News; Weekly on Stocks; WallStreetCN; Caixin Global; NetEase Finance; Huxiu; qeubee LIVE; Wind 3C Conference; iFinD. China SIF received support from Shanghai Cailian Press; China Climate Engagement Initiative (CCEI); Sustainable Banking and Finance Network (SBFN); Beijing Credit Association; Institute of Finance and Sustainability (IFS); Principles for Responsible Investment (PRI); Aegon Industrial Fund; Yuze Charity; Gems of Wisdom Consulting; BNP Paribas ABC Wealth; CCM CSR Promotion Centre; School of Management and Economics, Chinese University of Hong Kong, Shenzhen; CUEB China ESG Institute; Shenzhen Finance Institute, etc. We extend our heartfelt thanks for their support.
The 12th China SIF Annual Conference serves as the flagship event of the 2024 China SIF Week. Additionally, China SIF Week comprises 9 side events, encompassing a wide range of topics. as The 6th Media Training Workshop on ESG & Green Finance: Capital Market Trends under Green and Low-Carbon Transition, Academic Workshop on ESG, Sustainable Stock Exchange Roundtable (SSER), Seminar on Climate Mitigation Journey and Transition for Financial Institutions, Unlocking Potential Climate Investment: Transition Opportunities in the Energy and Agriculture Sectors, Seminar on ESG Vitality and Impact Investment and Financing: Sustainable Disclosure for Better Business Impact Investment and Financing Development, CCEI Just Transition Seminar Session 3: Just Transition Consideration for Different Sectors and Geographies, China Climate Engagement Initiative (CCEI) Enterprise Visit, and more. Furthermore, China SIF Week also organised working meetings for domestic and international organizations such as CCEI, AIGCC.
Please feel free to follow the China SIF WeChat official account (ChinaSIF), as well as the official account of the organizer, SynTao Green Finance (syntaogf).
For inquiries regarding cooperation intentions with China SIF or requests for information, please contact the organizer at: [email protected].
About China SIF
China Sustainable Investment Forum (China SIF), established in Beijing as a non-profit organisation in 2012, is dedicated to promoting responsible investment and providing an internationalised platform for exchanging and sharing ideas on issues concerning sustainable development, with focus on facilitating Environmental, Social and Governance (ESG) integration, advocating green finance, and contributing to a responsible capital market in China as well as its sustainability.
As a member of the Global SIFs Network, China SIF organises Annual Conferences, Summer Summit, SIF Weeks and a series of featured seminars and webinars annually, convening policymakers as well as domestic and foreign experts to share their views, research, and good practice. Professionals and practitioners from research institutes, financial institutions, listed companies, government agencies, and media representatives have joined our discussion and endeavour to explore multiple ways to promote and practice responsible investment and green finance.
China SIF keeps launching a series of landmark research reports, such as China Sustainable Investment Review, supporting the Dissertation Competition on ESG and Sustainable Finance and developing the "ESG Online Classes" series of educational videos together with partners and industry experts to promote ESG investment concepts and practices. Over the years, China SIF has become one of the most influential responsible investment forums in the region.
Please visit https://en.chinasif.org/ for more information.
