Translator：Wang Qiyu

On the afternoon of August 28, 2023, the Academic Research Symposium and Compilation Launch for the "Property Enterprises ESG Compliance Guidelines" were held at the Shanghai International Arbitration Hall.

Guidance was provided by Deputy Director Zhou Hao of the Hongkou District Justice Bureau of Shanghai, Executive Deputy Director Fan Mingchao of the Shanghai Arbitration Commission, Secretary-General Wu Bin of the Shanghai Environmental Science Society of Jing'an District, Deputy Secretary-General Bu Yunjie, and Professor Meng Fei of the Shanghai Institute of Law at the Shanghai Political Science and Law Institute attended the meeting.

The event was hosted by Mr. Dai Xiaobo, President of the Shanghai Building Technology Research Association, Secretary-General Guo Jidong, Director Che Chunli of the Innovation Building Professional Committee of the Shanghai Building Technology Research Association, Deputy Director Zhang Yijun, and Deputy Secretary-General Ye Mei.

Mr. Xie Ning, the Green Ambassador for ESG Development, opened the conference as the master of ceremonies. He emphasized the significance of ESG as a vital standard for assessing sustainable development in the context of global climate change and environmental challenges. ESG not only aligns with China's dual-carbon strategy but is also gradually becoming a global consensus. The Shanghai Arbitration Commission expressed its support for this public service event and extended best wishes for the successful completion of the conference.

Deputy Director Zhou Hao of the Hongkou District Justice Bureau of Shanghai, representing the bureau, warmly congratulated the conference's convening. The property management industry plays a crucial role in ensuring the basic living quality of the people. ESG management principles and strategies can support property enterprises and promote the industry's green transformation. It is hoped that experts in attendance will compile the guidelines with a spirit of practicality and innovation, creating an ESG model with Shanghai characteristics.

Mr. Dai Xiaobo, President of the Shanghai Building Technology Research Association

In his speech, Mr. Zhang Yijun, Deputy Director of the Innovation Building Professional Committee of the Shanghai Building Technology Research Association and Senior Partner at Shanghai Landing Law Offices, emphasized the urgent need for transformation and upgrading in China's property industry. He discussed how collaboration among the government, enterprises, industry organizations, experts, and scholars is essential to drive ESG compliance, which is a responsibility to society, a response to national dual-carbon policies, and an actual action to contribute to urban development, economic growth, and the well-being of homeowners and society. He stressed that only by truly addressing environmental and social needs, and enhancing corporate governance, can we earn societal respect and public recognition while achieving sustainable development.

Mr. Zhang Yijun, Senior Partner at Shanghai Landing Law Offices

The second part of the agenda featured expert speakers invited to present on various topics. Ms. Zhou Yan, a partner at Gan Zhicheng Accounting Firm, delivered a keynote presentation titled "Overview of the Hong Kong Stock Exchange's ESG Reporting Rules." She explained the significant changes in the Hong Kong Stock Exchange's ESG rules, emphasizing the shift from voluntary "guidelines" to mandatory "code," with increased focus on the impact of corporate operations on climate change. Ms. Zhou Yan highlighted the importance of the content requirements for ESG reporting, including six major aspects, three quantitative indicators, and the significance of industry-specific classification, with a particular focus on core topics related to commercial property management.

Ms. Zhou Yan, Partner at Gan Zhicheng Accounting Firm

Ms. Tang Yanqi, Co-founder of CarbonCity Technology, delivered a keynote speech on "Carbon Asset Management and Value Realization for Property Enterprises." She discussed whether ESG represents a burden or an empowerment and explored carbon management from an ESG perspective, considering whether it is a cost or an asset. Ms. Tang analyzed three major transformations in enterprise value creation, describing carbon assets as new and environmental assets with five key attributes, including financial and scarcity characteristics. She emphasized the three essential elements for realizing carbon assets: data, technology, and transactions. In conclusion, she presented a vision for realizing the value of carbon assets for property enterprises, including the transition from energy consumers to energy operators and from office leasing to zero-carbon office service providers.

Ms. Tang Yanqi, Co-founder of CarbonCity Technology

The expert presentations concluded with an overall report by Ms. Wang Libo, a partner at Shanghai Landing Law Offices, titled "Compilation Methodology, Approaches, and Highlights of the ESG Compliance Guidelines." Ms. Wang first introduced the latest dual-carbon policies from the Central Comprehensive Deepening Reform Committee on July 11 and the legal provisions related to carbon disclosure in the Supreme People's Court and Supreme People's Procuratorate's "Interpretation on Several Issues Concerning the Application of Law in Handling Environmental Pollution Criminal Cases" issued on August 9. She highlighted that carbon emission rights represent the right to enterprise development, carbon emission data is the core of carbon trading, and carbon trading is the soul of carbon reduction. Commercial real estate is the best scenario for ESG compliance, especially as the real estate industry shifts from incremental development to stock operation. With consumer-oriented commercial real estate now officially included in China's infrastructure REITs, property enterprises will initiate ESG compliance governance. This will help achieve dual-carbon goals and enhance corporate value. Ms. Wang, as the representative of the lead editorial team, presented the compilation methodology, highlights, and plans for the guidelines. She also read the "Commitment Letter of the Editorial Team" on behalf of the other lead editorial units: Gan Zhicheng Accounting Firm, Zofude Consulting Group, and CarbonCity Technology (Shanghai) Co., Ltd.

Ms. Wang Libo, Partner at Shanghai Landing Law Offices

In the second half of the agenda, Mr. Guo Jidong, Secretary-General of the Shanghai Building Technology Research Association, announced the authorization ceremony. Professor Che Chunli, Director of the Innovation Building Professional Committee of the Shanghai Building Technology Research Association, authorized Shanghai Landing Law Offices, Gan Zhicheng Accounting Firm, Zofude Consulting Group Limited, and CarbonCity Technology (Shanghai) Co., Ltd. Mr. Zhan Weiguang, founding partner of Shanghai Landing Law Offices, representing each lead editorial unit, expressed gratitude.

Following the authorization, a panel discussion was moderated by Ms. Shen Jia, a partner at Zofude Consulting. Professor Meng Fei of the Shanghai University of Political Science and Law, Ms. Xiang Li, CEO of Shanghai Donghao Lansheng Information Technology Co., Ltd., Mr. Zhang Ge, Chairman of Shanghai Xinhuancarbon Technology (Group) Co., Ltd., and Ms. Lü Min from the Foreign Enterprise Young Talent Association engaged in a lively discussion on the topic of "How ESG Can Help Companies Enhance Business and Social Value." The panelists emphasized that while ESG reporting requires initial investment, it can ultimately bring brand value to companies, foster greater employee cohesion, and lead companies to greater success.

In closing, Mr. Dai Xiaobo, President of the Shanghai Building Technology Research Association, delivered the closing remarks. He expressed heartfelt thanks to all the leaders, experts, and business representatives for their support. He urged the lead editorial units to carefully study and draw from expert opinions, follow the planned goals and timetable for compilation, and promote the guidelines effectively. The goal is to create a high-quality, targeted guideline that will help property enterprises comprehensively enhance their ESG compliance, thereby achieving a win-win situation for both business and social value.

Mr. Dai Xiaobo, President of the Shanghai Building Technology Research Association