Environmental Risk Management Initiative for China’s Overseas Investment
Recommendations for Chinese financiers, developers, and contractors operating overseas.
Offers basic guidance to enhance environmental risk management and the adoption of more robust environmental protection principles overseas.
Financiers should:
- Refer to relevant international sustainability standards.
Financiers, Developers, and Contractors should:
- Refer to the “United Nations Principles for Responsible Investment” (UN PRI).
- Understand host countries' environmental laws and regulations.
- Adopt the best environmental standards in China, host countries, and/or internationally.
Financiers, Developers, and Contractors should:
- Disclose environmental, social, and governance (ESG) information annually to the Global Reporting Initiative (GRI).
- Actively engage with environmental protection organizations.
- Use lawyers, environmental consultants, civil society organizations (CSOs)/nongovernmental organizations (NGOs), and think tanks to understand host countries’ environmental laws and regulations.
Developers and Contractors should:
- Disclose environmental impact assessment (EIA) reports in English or the local language(s) prior to construction.
- Communicate with stakeholders when conducting EIAs.
- Adopt multiple means of conflict management, including mediation, for settling environment-related disputes.
Industry Associations should:
- Provide guidance on engaging the international community, CSOs/NGOs, and other stakeholders.
Financiers, Developers, and Contractors should:
- Conduct environmental and social due diligence and use risk analyses to manage adverse impacts.
- Consider ESG factors during investment decision-making.
- Understand site-specific environmental impacts.
Financiers should:
- Disclose an environmental impact summary before investing in each project.
Developers and Contractors should:
- Conduct EIAs in accordance with local laws and regulations, and international best practices.
Global
September 2017
Green Finance Committee (GFC) of China Society for Finance and Banking, Investment Association of China (IAC), China Banking Association (CBA), Asset Management Association of China (AMAC), Insurance Asset Management Association of China (IAMAC), China Tr