【ESG News】Global Trends Biweekly Newsletter Issue 35 (2025.6.2-2025.6.15)

Hong Kong China ESG trends

HKGFA Webinar – Unlocking Adaptation Finance & Building Climate Resilience Through Insurance

Key insights and takeaways：

– Urgent Need for Adaptation Investments: Rapidly rising sea levels necessitate immediate adaptation investments to mitigate significant losses from floods, fires, and storms, with 2024 seeing US$381 billion in net catastrophe losses, 57% uninsured.

– Economic Opportunities and Risks: Adaptation markets could yield up to US$4 trillion in revenues, but inaction may cost corporations over US$1 trillion annually, with Hong Kong developers showing gaps in physical risk recognition, risking financial write-downs.

– Innovative Insurance Solutions: Adaptation measures for buildings such as floodgates and water sensors have been proven to effectively reduce insurance premiums. Clear and transparent communication between real estate firms and insurers is essential, while risk reductions need to be quantified to translate into premium reductions.

– Call for Collective Action: Early action, government involvement, and collaboration across sectors are essential to address sea-level rise and climate risks, with insurers playing a key role in providing capital and incentivising quantifiable sustainability efforts.

Source: https://www.hkgreenfinance.org/hkgfa-webinar-unlocking-adaptation-finance-building-climate-resilience-through-insurance/ 

Lianhe Green Insights

The online seminar focused on climate adaptation investment and insurance, revealing the severe challenges and opportunities currently faced globally. The innovative insurance solutions proposed by the seminar offer new ideas for the industry. It calls for collective action, government participation, and cross-sectoral cooperation, and emphasizes the key role of insurance companies in addressing climate change.

Hong Kong Aims for Full Adoption of ISSB Standards

The Government welcomes the publication of jurisdictional profiles by the International Financial Reporting Standards Foundation (IFRS Foundation) today (June 12), which confirms Hong Kong as among the initial set of jurisdictions having set a target of fully adopting the International Financial Reporting Standards - Sustainability Disclosure Standards (ISSB Standards).  This demonstrates Hong Kong's commitment to enhancing the transparency of information on sustainable development in capital markets, enabling investors to make investment decisions and promoting global capital flows.

Source: https://www.ifrs.org/content/dam/ifrs/publications/sustainability-jurisdictions/pdf-profiles/hong-kong-sar-ifrs-profile.pdf

Lianhe Green Insights

As a leading international financial centre, Hong Kong has always been at the forefront of aligning with international standards and promoting best market practices. In December 2024, the Hong Kong Institute of Public Certified Accountants issued the Hong Kong Sustainability Disclosure Standards, which are fully aligned with the ISSB standards and will come into effect on 1 August 2025. The IFRS Foundation has confirmed that Hong Kong is one of the first jurisdictions to aim for full adoption of the ISSB standards, highlighting Hong Kong's commitment to aligning with international standards and best practices and recognizing its efforts and determination in supporting and promoting the common international language of sustainability reporting.

International ESG trends

Vietnam’s High-Emission Industries Gain Roadmap to Net Zero with New Transition Finance Guide

Hanoi 12/06/2025 10:00am: The Climate Bonds Initiative has released a new practical guide to help Vietnam’s most emissions-intensive industries develop science-based, Paris-aligned transition plans. Focusing on steel, cement, and basic chemicals—sectors that account for the majority of the country’s industrial emissions—the report offers a structured approach to credible climate transition, aligned with investor expectations and emerging regulatory frameworks.

Source: Climate Bonds | Vietnam’s High-Emission Industries Gain Roadmap to…

Lianhe Green Insights

This report provides a concrete roadmap for high-emission industries in Vietnam to achieve net-zero emissions, focusing on three key sectors: steel, cement, and basic chemicals, which account for over 70% of global industrial carbon emissions. Through case studies and the introduction of financing tools, the report not only offers a guide for Vietnamese companies to transform but also provides a reference for financial institutions to assess the alignment of companies' net-zero targets.

Mainland China ESG trends

The "2024 China Ecological Environment Status Report" Released.

The "2024 China Ecological Environment Status Bulletin" released by the Ministry of Ecology and Environment shows that in 2024, the national ecological environment quality continued to improve, and the environmental safety situation remained stable. Specifically, air quality in China remained stable with a positive trend, surface water quality continued to improve, seawater quality in the jurisdictional maritime areas was basically stable, soil environmental risks were effectively controlled, the overall natural ecological condition was stable, acoustic environment quality remained stable, and the safety situation of nuclear and radiation was generally stable. Efforts were also made to strengthen the management of solid waste and emerging pollutants.

In actively addressing climate change, the proportion of coal consumption in total energy consumption was 53.2%, a decrease of 1.6 percentage points compared to 2023. The proportion of clean energy consumption, including natural gas, hydropower, nuclear power, wind power, and solar power generation, in total energy consumption was 28.6%, an increase of 2.2 percentage points compared to 2023. By the end of 2024, the cumulative transaction volume of carbon emission allowances in the national carbon emission trading market reached 630 million tons, with a cumulative transaction value of 43.033 billion yuan.

Source: https://www.mee.gov.cn/ywgz/sthjjcgl/hjzljcypj/202506/t20250605_1120773.shtml 

Lianhe Green Insights

In 2024, the overall ecological environment quality of our country continued to improve. Environmental indicators in multiple fields remained stable with positive trends, and the environmental safety situation was stable. Meanwhile, the energy structure was accelerated in optimization, the proportion of clean energy significantly increased, and the scale of carbon market transactions steadily expanded, providing strong support for the achievement of the dual carbon goals.

National Climate Strategy Center Convenes Workshop on Compilation of Guidelines for Carbon Emission Calculation, Reporting and Verification in Key Industries of the National Carbon Emission Trading Market

On June 6, 2025, the National Climate Strategy Center convened a workshop on the compilation of guidelines for carbon emission calculation, reporting, and verification in key industries of the National Carbon Emission Trading Market in Beijing. The meeting focused on the development stages of key industries and their greenhouse gas emission trends, and discussed the overall approach and framework for the compilation of the guidelines. Moving forward, the National Climate Strategy Center will, in accordance with the requirements of the Ministry of Ecology and Environment, continue to advance the compilation and revision of the guidelines to provide support for the construction of the carbon emission trading market.

Source: http://www.ncsc.org.cn/xwdt/zxxw/202506/t20250609_1120967.shtml 

Lianhe Green Insights

The National Climate Strategy Center held a seminar on the compilation of guidelines for calculation and verification in key industries, aiming to lay a solid technical foundation for the construction of the national carbon market by standardizing industry calculation and verification standards. Subsequent revision work will further adapt to industry needs and enhance the data quality and management efficiency of the carbon market.