Source: ACCA

China’s efforts to green its economy are “quite comprehensive”, but more needs to be done by multinational companies, the accountancy profession and policy makers to green China’s economy further, says a new working paper from ACCA (the Association of Chartered Certified Accountants) and the Hong Kong based think-tank Civic Exchange.

Launched at ACCA’s Global Virtual Conference on 12 October in Hong Kong and Beijing, the wide-ranging paper looks at how an increased focus on environmental and social performance, at international and national levels, is affecting the private sector in mainland China and Hong Kong.

In seven chapters the paper Greening China’s Economy: Pushes and Pulls on Corporate China explores the many factors that businesses need to consider – from government policies aimed at reducing carbon emissions or pollution levels, demands from customers based outside of the country to improve labour conditions in factories, or calls from investors for greater disclosure on environmental, social and governance (ESG) topics.

Speaking at the Conference, Dr The Hon Christine Loh, Under Secretary for the Environment, Environmental Bureau, the HKSAR Government, says that the HKSAR government must articulate the social, public health and economic benefits of environmental issues. Moreover, "Experience in the UK shows that the government has to put in sustained efforts and truly engages the community to achieve a change in behaviour," says Dr Loh.

Ada Leung, Head of ACCA China, hosted the event in Beijing and adds, “China’s success in evolving a green economy is in everyone’s interest. It is also in the interest of the accountancy profession – not just in Hong Kong or mainland China only but globally – to play a central role in helping Chinese business adapt to the changing operational and legislative landscape.”

In a chapter authored by PwC, the paper also highlights how accounting professionals are able to help companies address the various risks and opportunities presented by this change.

"Accountants play an important role in sustainability, as we redefine the meaning of "assets", "profit and loss" as well as "going concern" in the context of the green economy," says Hannah Routh, PwC Hong Kong Sustainability and Climate Change Director.

Michael Cheng, Advisor, Listing Division, Hong Kong Exchanges and Clearing Limited outlined the exchange’s publishing of a consultation paper and consultation conclusions on ESG (Environment, Social and Governance) Reporting Guide, and Xu Yang of the Shanghai Stock Exchange Research Center expressed that the Shanghai Stock Exchange encourages listed companies to pursue green practices and to disclose corporate social responsibility reports on the macro level.

Johnny Kwan, Chairman, BASF Greater China Country Board reveals, “Being transparent in environmental initiatives is one of the best ways to engage stakeholders for the betterment of these areas”, while Philippe Lacamp, John Swire & Sons’ Head of Sustainable Development also says, “We don't need to wait for legislation to determine what our sustainability agenda should be; we often take a proactive approach.”

Other speakers at the Conference also include highly respected personalities in companies as diverse as CSR Asia, MTR Corporation Ltd, Novozymes (China) Investment Co Ltd and Sinopec in mainland China and Hong Kong.

Ada adds, “Insights shared that on a global level, sustainability will not be achieved without broader and deeper forms of accountability – and this is where the accountancy profession comes in. Accountability needs new forms of transparency and stakeholder engagement.”

To read the full report, please visit:

http://www.accaglobal.com/content/dam/acca/global/PDF-technical/sustainabilityreporting/tech-afb-papocc.pdf