[2024-June-5]GIP-Société Générale Event :Climate Finance and ESG Investment: How Can the Financial Industry Better Support Sustainability
On June 5, 2024, the GIP Secretariat and Société Générale co-hosted a forum in Beijing titled “Climate Finance and ESG Investment: How Can the Financial Industry Better Support Sustainability.” Held on World Environment Day and marking the 60th anniversary of diplomatic relations between China and France, the event brought together experts from finance, business, government, and academia to explore how financial tools can drive sustainable economic development.
Opening Remarks
Lanny XIAO, Deputy CEO of Société Générale China, highlighted the bank’s stratgy in financially supporting green energy sector and Chinese enterprises. Dr. MA Jun, Co-Chair of the GIP Steering Committee, followed with an overview of four key developments in sustainable finance: the release of the China-EU Common Ground Taxonomy, the ISSB standards, progress in international and Chinese transition finance standards, and the establishment of the Capacity-building Alliance for Sustainable Investment (CASI).
Session 1: Macro Picture: Climate Change Economics
In her keynote speech, YAO Wei, Head of Research for Asia Pacific and Chief Economist for APAC at Société Générale, discussed the challenges of climate action and energy transition from an economic perspective. She emphasized that achieving climate goals requires both technological advancements and changes in behavior and economic models. Drawing comparisons, she noted that Europe leverages carbon pricing to reduce emissions, while China tends on scale up the green finance market by using policy measures. YAO suggested combining both approaches—state intervention and market mechanisms—to accelerate progress.
Session 2: Panel Discussion—Can Climate Finance Make a Real Impact?
Moderated by Ronald YOUNG, Head of Sustainable Finance, Global Banking and Advisory, Asia-Pacific, Société Générale, this panel featured Lanny XIAO and WU Kai, Vice President of Goldwind Science & Technology Co., Ltd. and Chairman of Goldwind International Holdings (HK) Limited. Discussions centered on the tangible impact of climate finance. Lanny highlighted Société Générale’s focus on eight key industries and its effort expanding professional teams that supports Chinese enterprises’ international expansion. WU detailed Goldwind’s efforts in green supply chains and global emission reduction projects, including a long-term green methanol supply contract with Maersk and other global green initiatives. He called for more robust banking support for green enterprises.
Dialogues
The forum’s second half featured three expert dialogues covering diverse topics:
1. Climate Finance and ESG Investment
Moderated by CHENG Lin, Head of the GIP Secretariat, with online participation from Sabino FORNIES MARTINEZ, Minister Counsellor of Economic & Financial Affairs Section, EU Delegation to China, and Laia BARBARA, Head of Climate Strategy at the World Economic Forum.
○ BARBARA stressed the importance of policy incentives in mobilizing private capital for climate investments.
○ FORNIES MARTINEZ shared insights on the EU’s climate finance policies and standards, including the CSRD’s double materiality analysis requirement, which goes beyond ISSB standards.
2. ESG’s Impact on Project Financing and Risk Management
ZHANG Lei, Head of Natural Resources and Infrastructure Finance for North Asia, and Tina LI, Co-Head of Global Markets for Mainland China at Société Générale, discussed ESG practices in project finance and risk management.
○ ZHANG explained how Société Générale supports project financing in China by using standardized and innovative financial instruments to mitigate project risks effectively.
○ LI explored foreign exchange and interest rate risk management in project finance and introduced the bank’s issuance of ESG-linked bonds to incentivize corporate ESG improvements. She provided detailed examples of KPI setting, performance targets, and related derivative transactions.
3. ESG Investing: Where to go?
Amy ZHANG, ESG Solutions and Product Strategist, Asia-Pacific, and Emily PENG, Head of Financial Institutions Group for Greater China, Société Générale, examined future ESG investment trends.
○ Both noted that while ESG investments have slowed recently due to regulatory and political factors, the long-term trajectory remains positive. They highlighted China’s rapid progress in ESG investment, which is developing its unique path despite a later start.
Closing Remarks
Adam VUARAN, Head of Sustainability for Asia-Pacific, Société Générale, concluded the forum by expressing confidence in the prospects of China’s green finance market and reiterated that sustainability is central to Société Générale’s strategy, with ongoing efforts to advance net-zero transitions.