SOAS University of London

ESG Improvement for Chinese Overseas Investment

SOAS lead: Ulrich Volz

Partner institution: Green Finance & Development Center at FISF Fudan University

Funder: UK Partnering for Accelerated Climate Transitions (UK PACT)

Duration: 2021-22

Project Description

Evaluating, understanding, and managing environmental, social and governance (ESG) risks is an important success factor for overseas projects. With their dominant role in overseas project development, the Chinese infrastructure construction companies are increasingly conscious of these risks. The Chinese government through the Ministry of Commerce (MOFCOM) and the Ministry of Ecology and Environment (MEE) have provided two guidelines in July 2021 and January 2022 to encourage Chinese developers engaged overseas to improve their environmental management throughout the whole project lifecycle. In addition, the China International Contractors Association (CHINCA) together with partners has provided or supported the upgrading and development of ESG guidelines for overseas contractors with the goal to reduce risks, improve co-financing with international partners and to accelerate the policy goals of sustainable development of overseas markets.

Against this backdrop, the Green Finance & Development Center at FISF Fudan University and the Centre for Sustainable Finance at SOAS, University of London conducted a project on ‘ESG Improvement for Chinese Overseas Investment’ with support from the UK Government through the Partnering for Accelerated Climate Transitions (PACT) programme.

Study: Developing a Database for ESG Experts for Chinese Developers and Financers