Chen Kai, Chairman of Ernst & Young China: Four “continuities” to promote ESG development – DoNews

DoNews reported on September 18 that on September 13, Chen Kai, Chairman of Ernst & Young China and CEO of Greater China, was invited to participate in the 2023 ESG Global Leaders Conference and delivered a keynote speech titled “Four “Continuities” to Promote ESG Development”.

Pictured: Chen Kai, Chairman of EY China and CEO of Greater China

Chen Kai said that green waters and green mountains have become an important background for high-quality development in China. In the new era, enterprises need to start from a strategic level, take green as the direction of development, and use innovation as the driving force for development to improve performance and build a beautiful China. of corporate responsibility.

The full text of Chen Kai’s speech is as follows:

Four “continuities” to promote ESG development

Distinguished guests, global ESG leaders, ladies and gentlemen, hello everyone!

It is a great honor to attend the ESG Global Leaders Conference for the third consecutive year and gather with everyone to promote the development of ESG and build a sustainable future.

China has achieved impressive economic growth in the past few decades, and is now gradually turning to high-quality development, shifting from speed-oriented to quality-oriented. On the one hand, China is committed to becoming an innovation-driven country, increasing investment in research and development, promoting the application of technological innovation in economic development, and has made remarkable achievements in technological fields such as 5G technology, artificial intelligence, and electric vehicles.

At the same time, as a responsible major country, China has proposed the “double carbon” goal, vigorously promotes green development and ecological civilization construction, and adopted a number of policies and measures to promote the application of clean energy, reduce pollution and carbon dioxide, and strengthen ecological protection and restoration.

Today, the greenness of green mountains has become an important background for China’s current high-quality development. In the current era, enterprises need to proceed from the strategic level, take green as the direction of development, use innovation as the driving force for development, and continuously strive to improve performance and build a beautiful China.

Next, I would like to talk about four points, four “continuities”, and encourage all participants.

First, continue to strengthen ESG management and enhance the ability to respond to climate change.

Currently, climate change is still the most concerned issue in the ESG (environmental, social and governance) system. This summer, we have experienced extreme weather such as typhoons, heavy rains, and floods. These climate problems have greatly affected the normal operations of enterprises and value chains, and in turn affected the profitability of enterprises and the stability of the economy and society.

Many countries and regions have introduced regulations and policies targeting climate change, requiring companies to reduce carbon emissions and implement green production. More and more consumers and investors are also paying close attention to the climate performance of companies. Therefore, companies should strengthen ESG management, analyze climate-related risks and opportunities, and enhance the resilience of sustainable development.

Three years ago, Ernst & Young Greater China established the ESG Management Committee, which is responsible for formulating ESG strategic plans and goals, supervising and guiding the implementation of ESG work. We have released Ernst & Young ESG reports for two consecutive years, and will soon release the third one this year to continue Deepen Ernst & Young’s influence in the ESG field.

In terms of addressing climate change, in addition to achieving the global carbon neutrality goal in 2020, we have further proposed to reduce carbon emissions by 40% by 2025 and achieve net-zero emissions.

Second, continue to explore green transformation and discover new market opportunities

Green transformation creates a wide range of business development opportunities for enterprises, which not only helps achieve sustainable development goals, but also brings economic and social value to enterprises, helping enterprises to find new growth paths in the ever-changing business environment. Enterprises can launch environmentally friendly and sustainable products and services through R&D innovation to meet the growing demand for environmentally friendly consumption and develop new market shares.

At the same time, the adoption of a circular economy model can extend the life cycle of products and reduce waste generation. Companies can create new sources of revenue through recycling, reuse, and remanufacturing.

In the field of green finance and investment, financial institutional investors are paying more and more attention to green and sustainable investments, introducing financial water into green, low-carbon, rural revitalization and other industries, and continuing to develop green bonds, green funds, green insurance, and green trusts. and other ESG investment products. Through their own green transformation, enterprises can attract more investment and financing opportunities to expand production and gain competitive advantages.

Ernst & Young Greater China relies on professional service teams to support clients in focusing on long-term value, helping clients accelerate the transition to a low-carbon future, address climate risks, and achieve sustainable development.

Ernst & Young’s climate change and sustainable development service team and various business lines help clients gain insight into the risks and opportunities brought about by climate change and sustainability issues, and actively promote green finance, ESG management consulting, ESG investment consulting, and carbon neutral transformation consulting. Innovations in services and tools in the fields of sustainable development, etc., help customers achieve green and low-carbon transformation and promote future value growth.

In the past few years, EY has been continuously rated as one of the ESG leaders in reports issued by well-known third-party independent research institutions for its market-leading capabilities in climate change, ESG management consulting and other fields.

Third, continue to develop and innovate digital tools to improve corporate development efficiency.

Digital transformation has changed corporate operations and the competitive environment. By combining digital technology with ESG management, companies can better manage environmental and social risks, improve governance efficiency, and promote long-term value creation.

In the environmental sector, digital technologies can be used to monitor and optimize energy use, thereby increasing energy efficiency and reducing carbon emissions. Smart energy management systems, smart sensors and big data analysis can help companies monitor energy consumption in real time and provide optimization suggestions.

At the same time, digital transformation can assist companies in tracking and reporting their carbon footprint, allowing them to more accurately understand their environmental impact. In the social field, digital transformation can promote digital inclusion, making information and services more accessible to people with disabilities, poor people, etc., thus promoting social equality.

In the field of governance, digital technology can improve the transparency of information disclosure, help companies better share ESG information with stakeholders, and enhance corporate trust.

Ernst & Young attaches great importance to digital innovation solutions. In the past few years, it has built a series of digital application tools such as “3060 Carbon Management System”, “ESG Intelligent Management System”, “Green Transformation Maturity Evaluation Model” and “ESG Handheld Application Mini Program” , using one-click quantitative indicators and management tools to build a perceptual understanding of ESG for the public, improve the ESG management level of various enterprises and institutions, promote enterprises to improve their ESG management capabilities, and promote the comprehensive green transformation of the economy and society.

Fourth, continue to improve the level of information disclosure and build an ESG ecosystem with Chinese characteristics

Although ESG has received increasing attention and recognition around the world, there are still problems such as inconsistent standards and indicators, low data quality and lack of transparency, which require joint efforts by regulators, investors, professional institutions, etc.

On June 26, 2023, the International Sustainability Standards Board (ISSB) officially released two sustainability disclosure standards for international financial reporting. The promulgation of these two ISSB standards is an important milestone in the construction of global sustainable disclosure baseline standards. It is of great significance to improving the transparency, accountability and efficiency of global sustainable development information disclosure and promoting the sustainable development of the global economy, society and environment. extraordinary.

At the same time, China is also accelerating the construction of an ESG system with Chinese characteristics. In August 2023, the State-owned Assets Supervision and Administration Commission issued the “Research on the Preparation of Special ESG Reports for Listed Companies Controlled by Central Enterprises”, which unified the ESG reporting framework issued by listed companies controlled by central enterprises and further guided and standardized the ESG information disclosure standards of domestic enterprises.

In the face of domestic and international information disclosure requirements, Chinese companies should actively formulate action plans. When preparing ESG reports, they should continue to improve the quality of ESG information from the perspectives of governance, strategy, risk management, indicators and goals, and provide more efficient and accurate information to stakeholders. To communicate the company’s sustainable development progress.

At the same time, companies should be prepared to provide comparable and verifiable ESG data to cope with higher disclosure requirements for ESG information from regulators and investors, as well as upcoming ESG information assurance work requirements.

Ernst & Young has accumulated rich experience in assisting thousands of companies, especially listed companies, to formulate ESG strategic plans, manage ESG risks, innovate ESG investments, disclose ESG information and other fields, and also help investors see investments with good ESG performance more clearly. Provide professional support.

In the field of ESG, Ernst & Young continuously releases research reports and professional insights, actively provides suggestions for the formulation of policy standards, and jointly builds a more sustainable world. In 2023, Ernst & Young will hold the “Listed Company Sustainability Officer Summit Forum and Annual Best Awards Selection” for the second consecutive year to commend outstanding companies, outstanding individuals and outstanding projects that have made outstanding contributions in the ESG field.

We focus on cultivating a local talent pool for the future. Ernst & Young provides ESG-related on-the-job training and regularly invites industry experts to provide sharing sessions to enhance all employees’ understanding of ESG concepts and work skills.

At the same time, we have also cooperated with a number of universities and training institutes to provide ESG online and offline courses. Through the joint efforts of all Ernst & Young people, we have won the honor of being one of the “Top Ten Sustainability Services Organizations in the World”, ranking first in the world in terms of project execution, and being titled “Leader of ESG and Sustainability Consulting Firms” in many fields of sustainable development. , these honors inspire us to keep making further progress.

China’s high-quality development is a continuous process. In the process of continuous development, economy, science and technology, environmental protection, society and other fields require the concerted efforts of all sectors of society to work together in the same boat. Ernst & Young is fortunate to be an experiencer and witness of China’s development.

2023 coincides with the 55th anniversary of the establishment of Ernst & Young Greater China. Huazhang traces its origins and ingenuity goes far. Over the past 55 years, EY Greater China has continued to grow and develop, its ambition to support national development remains unswerving, and its original intention to devote itself to national development will never change.

We promote coordinated regional development, empower industrial upgrading, and serve the overall national interests, including assisting the development of the Guangdong-Hong Kong-Macao Greater Bay Area, implementing the “Belt and Road” initiative, promoting state-owned enterprise reform, financial innovation, and low-carbon economic transformation.

Looking forward to the future, we will continue to be rooted in the Greater China region, join forces with multiple parties, collaborate on innovation, tap “green” power, and build confidence in sustainable development.

Thanks!