Climate Change Data

Environmental Metrics

ESG Focus Areas

• Policy
• Environment
• Economic and social development
• Corporate governance
• Green and sustainable finance
• Climate action
• ESG disclosure

Environmental Achievements

• Significant improvement in the GBA’s sustainable debt market, with issuance of GSSS bonds increasing year-on-year by 71% in Q4 2022 and 96% in Q1 2023.
• Increase in the proportion of GBA consumer discretionary companies invited to disclose via CDP from 47% in 2020 to 75% in 2022.
• Increase in disclosure rate of GBA consumer discretionary companies to 38% in 2022 from 29% in 2020.
• Increase in the number of GBA consumer discretionary companies that set targets or made commitments via SBTi from one in 2020 to nine in 2022.
• Guangzhou produced more than 1 million NEVs in 2022 (77% of Guangdong Province’s and 14% of the country’s production).
• Shenzhen is the top NEV city in China, with the highest level of NEV sales and penetration rate.

Social Achievements

• GBA’s economy showed signs of recovery and demonstrated support for the sustainable recovery of the labour market, talent mobility, and other societal developments.
• Hong Kong’s seasonally adjusted unemployment rate fell to 3.3% in the three months ending February 2023.
• Reopening facilitated the mobility of talent within the GBA.
• Hong Kong regularised the “Greater Bay Area Youth Employment Scheme” in March 2023.
• Consumer discretionary sector is playing a significant role in driving sustainable development within the GBA by encouraging sustainable purchasing behaviour, and promoting sustainable products and business strategies.

Governance Achievements

• Shenzhen tightened the requirements on ESG information disclosure for financial institutions and listed companies.
• Shenzhen issued the Guidelines for Financial Institutions’ Environmental Information Disclosure in September 2022.
• Shenzhen Stock Exchange (SZSE) released the newly revised Guidelines of SZSE for Self-Discipline Regulation of Listed Companies in February 2023, setting out detailed requirements for ESG disclosure for specific industries.

Climate Goals & Targets

Environmental Challenges

• Phasing out of internal combustion engine (ICE) vehicles is a challenge to the automotive industry.
• Sustainable transformation to a green and low-carbon model is challenging for the textile and garment industry due to its long and complicated supply chain.
• Companies may emphasize positive ESG performance instead of reporting negative incidents.
• Drop in new UN Principles for Responsible Investment (PRI) signatories and new launches of ESG mutual funds in the GBA during 2022, compared with 2021.

Mitigation Strategies

• GBA and its cities have leveraged the comprehensive automotive supply chains to support the development of NEVs.
• Different approaches to sustainable finance, such as green and sustainable private equity, green asset-backed securities (ABS), have been adopted by automakers in the GBA.
• Textile and garment industry in the GBA has leveraged cutting-edge technologies and environmentally friendly production techniques to accelerate sustainable transformation and develop a circular economy.
• Guangdong Province aims to provide RMB4 trillion of new aggregate financing to the real economy in 2023, with RMB1 trillion supporting the rural economy and ecological development.

Supply Chain Management

Responsible Procurement

• GBA Green Supply Chain Financing Action Guide (Automotive Manufacturing Industry)

Climate-Related Risks & Opportunities

Transition Risks

• Phasing out of ICE vehicles

Opportunities

• Development of NEVs and ICVs

Reporting Standards

Frameworks Used: CDP, SBTi, UN Principles for Responsible Investment (PRI), Fashion Industry Charter for Climate Action, Roadmap to Zero Programme, Women’s Empowerment Principles

Sustainable Products & Innovation

• NEVs
• ICVs
• Recycled fibres from textile waste