Shenzhen Stock Exchange Zheng Nanlei: Give play to the role of the board of directors, the company can do it well from top to bottom

The work of the exchange to promote ESG is multi -layered and has a system. First of all, we have relevant rules on the basic system, including information disclosure requirements and corporate governance rules.

Zheng Nanlei, deputy director of the Shenzhen Stock Exchange Research Institute (Financial Innovation Lab)

Moderator: Hello, Director Zheng, we carefully collected and prepared a few questions about how exchanges promoted ESG investment and management, and asked Director Zheng to share and answer us. First of all, can Director Zheng share the basic work of the Shenzhen Stock Exchange in the field of ESG.

Zheng Nanlei: According to the host's request, I report to you some of our efforts to promote the ESG work. The work of the exchange to promote ESG is multi -layered and has a system. First of all, we have relevant rules on the basic system, including information disclosure requirements and corporate governance rules. With the rules, we must gather a batch of listed companies and the issuers of financial products based on the rules. We must issue a number of relevant financial products such as stocks, bonds, etc., which is equivalent to larger the market size. It can further do other products such as index, derivatives, etc. Based on this series of strengths, we can carry out international cooperation, so we work for multi -level and systematic.

In the past years, the first is that we have continued to improve the requirements of the rules. In 2006, the Shenzhen Stock Exchange has released the "Guidelines for Social Responsibility for Listed Companies". Revised relevant self -discipline regulatory rules. We have continued to promote the improvement of the rules of corporate governance, increase its targeted and effectiveness of ESG, implement a sub -level environmental information disclosure system, urge key sewage enterprises to disclose environmental information, encourage listed companies to form a social responsibility plan and its social responsibility planning and its The work system will include the disclosure of ESG's performance into the assessment content of the information disclosure of the listed company. In 2021, all more than 2,300 companies have disclosed the performance of social responsibility in the annual report of more than 2,300 companies. Almost 1,600 companies have disclosed information such as pollution prevention, resource conservation, and ecological protection. ESG report.

In the second aspect, we actively support the direct financing of the green industry. At present, there are more than 270 listed companies in Shenzhen and Chongzhong's green industries. The cumulative equity financing exceeds 810 billion yuan, with a total market value of more than 6 trillion yuan, accounting for 20%of the total market value of Shenzhen listed companies. The industry covers new energy, new energy vehicles, energy conservation and environmental protection, and so on. The net profit in 2021 increased by 37%year -on -year, providing important support for the high -quality development of the national economy. In 2021, the "UN Proposal of Sustainable Exchange", the listed company of the Shenzhen Stock Exchange in the statistical ranking of major exchanges performed the best performance in the statistical ranking of major exchanges.

In the third aspect, we have continuously increased the supply of sustainable finance. In terms of green finance, the Shenzhen Stock Exchange has issued a total of 75 58.1 billion yuan of green corporate bonds, 21 29 billion yuan of green ABS, and the raised resources are mainly invested in the investment. Clean energy, biomass power generation, environmental governance and other fields. In terms of social influence, the Shenzhen Stock Exchange has issued a total of 88 84.3 billion yuan of epidemic defense bonds, 193.4 billion yuan of bonding bonds, and 47 poverty alleviation bonds and rural revitalization bonds of 47.27.2 billion yuan.

Fourth, we have vigorously created the Sustainable Development Index. In 2005, the Shenzhen Stock Exchange's wholly -owned subsidiary information company released the first batch of domestic corporate governance indexes. In 2008, it launched the first domestic environmental theme stock index. The first low -carbon theme stock index. Now we have launched green indexes such as ESG300, green finance, carbon technology 60, carbon neutral and 50, carbon neutralized green debt, etc., which promoted carbon neutral ETF, low -carbon ETF, ESG ETF and other products to land. Essence In the first quarter of 2022, our subsidiary information company established an independent ESG evaluation system and officially became a signing member of the United Nations responsible investment principle.

Fifth, we have been carrying out foreign exchanges. As we all know, the Shenzhen Stock Exchange is a member of the working organization of the United Nations Sustainable Exchange Initiative and the World Exchange Federation Sustainable Working Group. And we undertake the special consultant work of climate information disclosure, and provide suggestions and suggestions in terms of research, standard formulation, and other aspects, and contribute to the sustainable Chinese solution. We have a docking platform for technology -based small and medium -sized enterprises. Now we also carry out cross -border cooperation such as carbon neutralized roadshow, sustainable industry salon, etc., and support low -carbon sustainable enterprises and projects to docking at home and abroad at home and abroad High -quality financial and factor resources. At the Global Investor Conference of the Shenzhen Stock Exchange, we took sustainable investment as an important theme for three consecutive years, and comprehensively demonstrated the concept and effectiveness of the low -carbon sustainable development of Shenzhen City.

Therefore, the above is the main work of the Shenzhen Stock Exchange in promoting ESG in recent years to make a report to everyone.

Moderator: Thanks to Director Zheng for sharing related work on the Shenzhen Stock Exchange. The second question is to ask Director Zheng to share with us what plans are there in the next step of the exchange in the field of low -carbon sustainable development.

Zheng Nanlei: In May of this year, our Shenzhen Stock Exchange formulated a special work plan "Shenzhen Stock Exchange Support Service Carbon and Carbon Carbon Special Work Plan". Groups, the establishment of a continuous financial system that conforms to the dual carbon target also has product sequences, and guide financial resources to gather in the low -carbon field and establish a brand of the Shenzhen Stock Exchange Sustainable Exchange. Related work is still five aspects. First, we must gather more high -quality companies that meet the concepts of low -carbon sustainable development. Gathering listed companies must be our key work. To this end, we must improve the entire cultivation service system, support and guide companies with core technologies with low carbon fields to start listing and financing in Shenzhen City, to improve the disclosure rules of social responsibility, encourage resource -based disclosure of double -carbon measures and effects. The tools of information disclosure in good double carbon information disclosure provides auxiliary services for companies with willing.

Second, in terms of financial products, we must build a low -carbon sustainable homogeneous product configuration platform. The key work is to improve the construction of the green bond rules system, study and develop bond products linked to low -carbon transformation benefits, and develop low development. Carbon stock index, green bond index, promote the development of carbon neutral and themes, and operating products in the field of carbon segmentation, but also support more infrastructure in the low -carbon field, issue REITS products, revitalize related assets, meet investors through various types Channel to do low -carbon -related asset allocation needs.

Third, in addition to our own work in listed companies and financial products, we feel that the very important job is to improve the financial ecology that serves low -carbon sustainable development. When we investigate, we find that funds are willing to do low -carbon investment. Many, but they generally feel that the operating cost is still a bit high. In order to solve the problem of operating costs of financial institutions, we must strive to build an ESG evaluation system. All parties promote the innovative research and development of low -carbon -related products, strengthen investment scale, etc. into commendation and assessment indicators of financial institutions, stimulate their endogenous driving force for low -carbon development, and explore the creation of low -carbon sustain finance for the Shenzhen Stock Exchange Information platform, strengthen special investor education, and actively cultivate ESG investors.

Fourth, continuously deepen cross -border cooperation in the field of sustainable finance, support the main body of the country to strengthen communication with international institutions, and actively participate in the formulation of international sciences' sustainable financial standards, and promote the construction of a global sustainable financial system.

Finally, our exchanges must strive to build sustainable exchanges, and actively use new technologies and new materials to achieve their own energy conservation and emission reduction, advocate low -carbon office and save energy. Social responsibility, promote the construction of low -carbon sustainable exchanges.

These five work reports to everyone.

Moderator: Thank you Director Zheng's wonderful sharing just now. I want to ask Director Zheng for the last question. Can we explain for us all the key points and difficulties in the current ESG investment field?

Zheng Nanlei: As far as I feel, ESG's information disclosure should be said to be a key point and difficulty issue. It can be seen that it is the premise and foundation for us to see various things. What is more concerned about. I have reported to everyone earlier. We have already designed this kind of content of ESG in terms of governance standards and regular report content of listed companies, and also clearly encouraged listed companies to disclose social responsibility reports. From the perspective of effects, the ESG information disclosure of A shares in recent years has also been continuously improved. For example, 90%of listed companies in 2021 have mentioned environmental or social issues in the annual report. The rate is more than 80%, which is basically the same as the disclosure of head companies in overseas countries. Judging from the content of the disclosure, the coverage of topics is also wide.

However, in general, because the special ESG information disclosure rules have not yet been introduced in the territory, the general listed company ESG information disclosure is generally in its infancy. For example, in terms of company governance, most of the company's disclosure of the three -meeting operation is the main operation. In -depth interpretation of how to ensure the internal governance mechanism of the environment and the implementation of social responsibilities, there are not many internal governance mechanisms. Another example is insufficient quantitative disclosure, which leads to us to measure the effectiveness of the progress of the company's ESG practice from the perspective of large samples. For example, carbon emissions are important quantitative information in ESG, but how do companies in various industries do? Use a unified accounting standard, accounting method, and accounting caliber to disclose the intensity and total of carbon emissions. At present, there is no very full consensus. This is also the confusion of many investment institutions in the process. It's really ESG or good ESG. Many investment institutions now find that they have to buy third -party data to increase their operating costs and operations, which is a key blocking point.

We see that the international sustainable development information disclosure standards have been gradually unified in recent years. In November 2021, the International Financial Report Guideline Foundation announced the establishment of international sustainable development standards and society. Continuously developing related financial information disclosure generally requires a draft of consultation with climate -related disclosure. We say that ESG's information disclosure is a guidelines that are highly regional and have their own special circumstances. In the future, the international financial report sustainable information disclosure criteria may become one of the global norms. In this case, how he adheres to our national conditions, adhere to the principle of promoting step by step, and establish China's own ESG information disclosure criteria and our discourse system. The various tasks are still committed to laying the foundation. The first step is to be committed to laying the foundation of information disclosure. On the basis of this, the development of various tasks can be considered, and it can be clearly seen and the effect can be seen. How to quickly establish or accelerate China's own ESG disclosure system and discourse system is a critical job now, and it is also a key difficult issue. A personal opinion for your reference.

Moderator: What do you have about ESG.

Zheng Nanlei: Thank you host. I agree with the wonderful views of Director Chen, Professor Zhang, and President Li. The fundamental importance of ESG is that there is only one earth. This is our common home. Therefore, the goal of fulfilling social responsibility should definitely be wrong in general, and everyone is responsible. Of course, because this is relatively large, there are some fluctuations in the process of promoting, and some setbacks are normal. During our work, we must adhere to the actual situation of our country and the general tone of work that is stable. This is right. But the key is to strengthen this goal and find a method that suits us. I think it is the basic principle of our work, not to have any doubts and shake on it.

There are many influencing factors about corporate performance, which causes us to do empirical research. Professor Zhang also said that if the disclosure is not done well, the data we make may also get a pseudo -return result. I feel that we care about corporate performance and should do it at the same time how to do the work of ESG, and at the same time tell the story of its story. We observed that in the process of listed companies, we found that companies that can tell the actual work and stories of ESG generally have a few key things.

The first is to clarify the responsibility of ESG leadership of the board of directors. ESG is not a matter of the company's department. We must play the role of the board of directors directly. In the ESG's evaluation, decision -making, and monitoring links, you must assume the leading responsibilities, and the next company can make ESG well. Where will ESG lead the responsibility of leadership? It will be very reflected in our evaluation and recognition of ESG risks and opportunities. As Director Chen just said, the risks and opportunities faced by companies in different industries and fields are different, so good ESG information disclosure does not mean that we must use various principles to guide the eSG information generously. The method does not necessarily have a good effect, but that the enterprise really finds its own risk and opportunity in the ESG tide. He must evaluate the correlation and importance of various ESG -related fields, and to put resources and energy for resources and energy Investment in appropriate core issues can you do the ESG work well.

At the same time as the enterprise does the ESG work well, in order to obtain the recognition of all walks of life, it is necessary to continuously improve the degree of quantification of key performance indicators. On the one hand, it has also set up the guidelines for its own actions for the enterprise. The ESG field is too wide. It seems that some stories seem to gain market sympathy. Only quantitative disclosure can the market see continuous performance curve, so that more financial resources and technical resources can be injected.

Finally, good ESG practice should pay more attention to external communication. On the one hand, we say that ESG's advancement must be advanced, and the issues of various industries across the country and various industries are promoted. It is very difficult for an enterprise to do its own ESG alone, so as Director Chen just said, openly saying, in the tide to his own position. At the same time He must actively respond to the concerns of the stakeholders' concerns about ESG issues, including the host's concerns about ESG and corporate performance issues. Enterprises must be serious and continue to communicate with professional consulting companies, universities, media and other exchanges. In this way, companies can establish an ESG execution and reporting system, including the attention of leadership, and promoted from top to bottom, including identifying the opportunity to truly belong to themselves, including truly finding indicators that are suitable for quantified, including suitable external communication. After this work, we believe that the positive correlation between ESG practice and corporate performance will gradually be formed, and it will appear, and it will be displayed in our research.

Thank you host.

The above dialogue comes from Zheng Nanlei, deputy director of the Shenzhen Stock Exchange Institute (Financial Innovation Lab) of the National Congress of the People's Congress (2022 Summer Annual Conference)

Source: People's Congress Chongyang

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