IMF, Chinese State Banks Discuss Sustainable Development at Global ESG Leaders Conference

(Yicai) Oct. 18 -- Sustainable development and environmental protection were discussed at the fourth Global ESG Leaders Conference, which wrapped up in Shanghai today.?

Countries must speed up economic reforms to attract domestic and overseas investment in environmental protection, said Kristalina Georgieva, managing director of the International Monetary Fund. Such reforms include eradicating red tape, improving the depth and functioning of domestic capital markets, and putting in place more predictable policies, she said.?

Georgieva suggested saving money by phasing out fossil fuel subsidies, and using carbon pricing to level up the playing field for green technologies, as well as offering incentives for businesses and households to make low carbon and energy efficient choices.

Re-thinking and re-positioning of global environmental, social and governance development is needed, according to Liu Jun, president of Industrial and Commercial Bank of China.

Liu called for attention to key development factors so as to reach agreements on economic and trade conflicts, as well as refinements of the ESG value verification mechanism. The role of artificial intelligence in scientific and technological innovation in ESG should also be highlighted, Liu said.

Corporate governance is the cornerstone of ESG management, said Wang Zhiheng, president of Agricultural Bank of China. ABC has integrated ESG ideas into modern commercial banking governance and management, Wang said.

Sustainable development involves using finance to increase the welfare of people and society, Zhang Yi, president of China Construction Bank, pointed out. CCB has been enhancing the convenience and accessibility of its financial services, he said, as well as pushing for scientific and technological innovation. As of June 30, CCB's outstanding loans to science and tech firms stood at CNY1.8 trillion (USD253.3 billion).

Commercial banks should work on green finance and support sustainable development to align with global ESG development trends, according to Zhang Baojiang, president of Bank of Communications. He suggested expanding financial bodies' involvement in refining carbon market functions. Also, local governments should set up firms' carbon accounts to make carbon accounting easier, Zhang noted.

Postal Savings Bank of China has been making efforts to provide its clients with real-time online greenhouse gas emission accounting services, said President Liu Jianjun. So far, the bank has conducted carbon accounting for almost 10,000 clients, and is pushing for low-carbon transition among small and mid-sized businesses, he said.

For the banking industry as a whole, green development and social responsibility investment will become key points in future development planning, said Ryan Song Yuesheng, chief executive and vice chairman at Hang Seng Bank China. The key areas include green energy, clean transport, industrial energy conservancy, clean production, sustainable agriculture, and waste disposal, Song said.?

The 2024 Global ESG Leaders Conference, held under the theme of ‘Uniting for Global Prosperity,’ was hosted by state-owned conglomerate Citic Group and media giant Sina.