| Country: China | Sector: Finance |
| Expert partners: ITP Energised, Steer Group |
Developing green finance regulation expertise
On 1 March 2020, Shenzhen issued the Regulations on Green Finance of the Shenzhen Special Economic Zone. These regulations stipulated that financial institutions need to disclose environmental impact information by 2022-2023.
China’s Shenzhen government sought industry-leading professional advice to help align their climate-related financial disclosures with international best practice. Learning from the UK was of special interest, as it was the first country in the world to make Task Force on Climate-Related Financial Disclosures (TCFD)-aligned disclosures fully mandatory across the economy.
The skill-share's aim was to help inform the development of a framework by March 2021. This was to ensure institutions registered in Shenzhen start the mandatory disclosure of environment-related information. The hope is for the framework to be rolled out to other cities across China, supporting both emissions reductions in the country and ambitions to be carbon neutral by 2050.
In preparation for developing this framework, decision-makers took part in a capacity-building training programme organised by the Shenzhen Green Finance Committee, which was supported by other regional financial institutions. Our UK experts ran webinars to enhance awareness and improve knowledge of TCFD and climate risk assessments and stress testing.
Key actions:
| Expert partners: ITP Energised, Steer Group |
Rachel Brisley, from Steer Davies & Gleave Ltd, presented on climate risk assessment and stress testing for the financial service sector in Shenzhen. Shenzhen’s changing climate, impacts for financial institutions and other businesses, global trends and best practices on stress testing and climate risk assessment methodology were among the key topics explored. Global case study examples helped illustrate climate risk assessment, such as change within the Inter-American Development Bank and JASPERS.
ESG specialist Joss Blamire, from ITP Energised, presented on TCFD, a framework to help companies report on exposure to climate-related risks and opportunities. He provided a high-level introduction to TCFD, best practice and a roadmap for disclosure reporting. He explained what the TCFD recommendations are and why they are adopted worldwide, using case studies to illustrate how firms use best practice to disclose environment-related financial information.
Green finance involves financial institutions directing activity towards entities which support environmental development
Shenzhen is China’s third most populous city and is the country’s financial hub
This skill-share brought together representatives of nearly 100 financial institutions from across Shenzhen
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