China Likely To Push Asset Owners To Embrace ESG

Beijing will likely require asset owners play a bigger role in ESG investing as part of broader sustainability plans when it announces its five-year plan later this year, according to KPMG.

The Chinese government is likely to require that its local asset owners introduce environmental social and governance (ESG) concepts in their investing processes in its coming five-year plan for the coming few years.

That is the prediction of investment consultancy and accounting and consultancy firm KPMG.

“In mainland China, we are foreseeing that the 14th five-year plan that is coming out later this year will have a significant element on sustainability and China transitioning to a lower carbon economy. And it will impact the sustainable finance market … from what we are seeing [it’s] more than likely that it’s going to happen,” Pat Woo, partner and business reporting and sustainability at KPMG China, told AsianInvestor.

China’s five-year plans consist of a series of top social and economic development initiatives for the next half-decade, which are set by its top Communist Party leadership. The next plan is set to be announced at the National People’s Congress (NPC). The political gathering is usually is held every March in Beijing, but it and the Chinese People’s Political Consultative Conference Conference will both likely be delayed because of the Wuhan coronavirus outbreak.

The potential for Beijing to actively demand its institutional investors consider ESG would… [read more]

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