Translator：Wang Qiyu

On November 21, 2023, the "CarbonCity-Landing" ESG Strategic Cooperation signing ceremony and the Global Carbon Governance Symposium were successfully held at the equal meeting room of Shanghai Landing Law Offices!

Shanghai Landing Law Offices Partner and Head of ESG Business, Wang Libo, and Director of the Global Carbon Governance Forum, Tang Yanqi, Partner of Manbing Group, and Co-founder of CarbonCity, jointly signed the strategic cooperation agreement.

Witnesses at the signing ceremony included Professor Bao Cunkuan, PhD Supervisor at Fudan University, and Director of the Center for Urban Environmental Management; Peng Feng, Business Director of Shanghai Environmental Energy Exchange and Secretary-General of the Carbon Neutrality Action Alliance; Zhan Weiguang, Founding Partner and Managing Partner of Shanghai Landing Law Offices; Sun Bing, Executive Secretary-General of the Global Carbon Governance Forum, Chairman of Manbing Group, and Founder of CarbonCity.

The collaboration will involve close cooperation in ESG compliance governance, ESG investment and financing, ESG training and promotion, ESG reporting and verification, ESG crisis event handling, aiming to create a comprehensive ESG ecosystem that is industry-savvy, one-stop, professional, and globally accessible, collectively supporting high-quality and low-carbon development for enterprises.

01. Guest Speeches

[Image] Zhan Weiguang, Founding Partner and Managing Partner of Shanghai Landing Law Offices

Lawyer Zhan Weiguang delivered the opening speech, introducing Landing's achievements since its establishment in 2018. He highlighted Landing's standout performance among over 40,000 law firms nationwide and its assistance to central enterprises and listed companies in issuing green bonds. He expressed expectations for substantive collaboration with CarbonCity in the dual carbon field.

[Image] Sun Bing, Executive Secretary-General of the Global Carbon Governance Forum, Chairman of Manbing Group, and Founder of CarbonCity

Sun Bing mentioned the upcoming UN Climate Conference COP28, where countries will discuss the international issue of climate change. He emphasized the strategic significance of combining dual carbon goals with ESG, providing an annual report card for companies to showcase their commitment to low-carbon development. This combination is seen as both an annual performance report for companies and a catalyst for green financing and carbon asset creation.

02. Theme Reports

*Theme: "One-Stop ESG Service Alliance and Introduction to ESG Compliance Business"*

Wang Libo, Partner and Head of ESG Business at Shanghai Landing Law Offices, presented a theme report on the one-stop ESG service alliance and an introduction to ESG compliance business. She outlined Landing's ESG governance system, covering six demand scenarios: dual carbon management, ESG compliance governance, ESG investment and financing, ESG training and promotion, ESG reporting and verification, and ESG crisis event handling. Wang highlighted key events in the ESG and green sector in 2023 from a legal perspective.

*Key Events in the ESG and Green Sector in 2023*

1. Gradual standardization of ESG reporting for listed companies:

   - May 2022: China Securities Regulatory Commission includes ESG in investor relations communication.

   - End of 2023: ESG reporting fully covers central enterprise-controlled listed companies.

   - Sci-Tech Innovation 50 Index companies disclose separately.

   - A-share and Chinese-Hong Kong stock disclosure rate: 45.72%.

   - A-share: 2022 - 30.86%, 2023 - 35.41%.

   - Hong Kong stock: 99% disclosure.

2. Tighter integration of dual carbon policies and ESG regulations:

   - July 2023: Central meeting adjusts dual carbon policy to gradually shift from energy consumption control to carbon emission control, showing determination to decouple economic growth from carbon emissions.

   - August 2023: Supreme Court and Supreme Procuratorate jointly issue interpretation on handling criminal cases related to environmental pollution, indicating that intentional provision of false certificates by intermediaries responsible for environmental monitoring will be considered a crime.

   - October 2023: Ministry of Ecology and Environment includes seven key industries (petrochemical, chemical, construction materials, steel, non-ferrous, paper, civil aviation) with annual greenhouse gas emissions of 26,000 tons of CO2 equivalent or more in the annual greenhouse gas emission reporting and verification scope.

3. Development of the international supply chain compels suppliers' ESG compliance:

   - January 5, 2023: EU's Corporate Sustainability Reporting Directive (CSRD) takes effect, requiring Chinese suppliers under CSRD jurisdiction to follow the "double materiality principle" and bear the obligation of ESG due diligence.

   - January 1, 2023: Germany's Corporate Supply Chain Due Diligence Act takes effect, requiring ESG responsibility investigations for Chinese suppliers of companies such as Volkswagen, BMW, Siemens, Phoenix, Bosch, Adidas, Nestlé, and Daimler.

4. Financing favors the green and sustainable development sector:

   - China's green financial system has achieved significant results, forming a multi-level and diversified green financial market with green loans and green bonds as the main components. As of the end of the third quarter of 2023, China's green loan balance is 25.58 trillion yuan, a year-on-year increase of 36.8%, ranking first globally. The balance of the domestic green bond market is 1.98 trillion yuan, ranking second globally.

Shanghai Landing Law Offices, CarbonCity Technology (Shanghai) Co., Ltd., Gan Zhicheng CPA Firm, and Zoford Consulting Group jointly form an ESG ecosystem, engaging in specialized activities to deepen green industries, actively participate in the construction of green standards, and provide guiding principles based on rich theoretical and practical experience. The ESG ecosystem held the "Property Company ESG Compliance Guide" launch ceremony and academic research seminar on August 28, 2023, and initiated an ESG governance special investigation at Jing'an Smart Square on October 25, 2023. Wang Libo also introduced Landing's ESG-related compliance business.

*Theme: "CarbonCity Partners with Enterprises and Individuals to Start a Zero-Carbon Journey"*

Tang Yanqi, Director of the Global Carbon Governance Forum, Partner of Manbing Group, and Co-founder of CarbonCity, presented the theme report "CarbonCity Partners with Enterprises and Individuals to Start a Zero-Carbon Journey." She introduced the history of Manbing Group and CarbonCity, emphasizing CarbonCity's strategic core position in response to the dual carbon policy in 2021, focusing on the deep integration of climate technology and digital technology.

Tang highlighted the changing logic of value creation from a shareholder-oriented perspective to one that considers non-economic performance, especially environmental issues. She emphasized that "carbon" is not just an environmental issue but also an economic issue crucial for industrial transformation and upgrading.

Addressing various challenges faced by enterprises in carbon neutrality transformation, CarbonCity provides services such as KCMRU's full-cycle carbon neutrality business, asset management services, building new business models, and intelligent carbon management. It creates a one-stop carbon management tailored to customer scenarios, delivering evidence for quantifying low-carbon strategies. With the support of carbon finance services, CarbonCity helps customers plan a secure space for survival in an uncertain future.

CarbonCity empowers customers at macro, meso, and micro levels, customizing key indicators under environmental E issues for different enterprises and industries, supporting high-quality and low-carbon development.

03. Guest Comments

[Image] Professor Bao Cunkuan, PhD Supervisor, and Director of the Center for Urban Environmental Management at Fudan University

Bao Cunkuan expressed his pleasure in witnessing the signing cooperation between CarbonCity and Landing, highly praising the commitment of both companies to ESG business and fulfilling social responsibilities. He emphasized that as China enters a high-quality development path with green and low-carbon as its foundation, it signifies a broader and more profound ecological protection. CarbonCity and Landing, starting from their respective businesses, are escorting the high-quality development of green and low-carbon. He suggested considering space, industry, and supply chain dimensions for corporate development from self-concern to influencing others.

[Image] Peng Feng, Business Director of Shanghai Environmental Energy Exchange and Secretary-General of the Carbon Neutrality Action Alliance

Peng Feng expressed great honor in attending and witnessing this "historic moment" and introduced the national and local carbon market business of the Shanghai Environmental Energy Exchange. Anticipating that the carbon trading market, after the restart of China Certified Emission Reductions (CCER), would better connect with financial and capital markets, allowing more enterprises, institutions, and even individuals to participate. He pointed out that achieving the goals of dual carbon in the future requires collaboration among various companies and participation of legal professionals, and the Shanghai Environmental Energy Exchange serves as a bridge between the government and enterprises, hoping for more future collaborations.

04. Global Carbon Governance and ESG Business Symposium

During the symposium, Zhou Yan, General Manager of Gan Zhicheng CPA Firm in China, Shen Jia, General Manager of Zoford Consulting Group in China, Guo Jidong, Secretary-General of the Shanghai Building Technology Research Association, Zhang Xiaopeng, Secretary-General of the Shanghai Weihai Chamber of Commerce, Ye Mei, Deputy Secretary-General of the Shanghai Building Technology Research Association, Jiao Xiao Xiao, Manchester Innovation Development Center, Zhao Yanjin, General Manager of Gan Zhicheng CPA Firm in China, Shen Jia, General Manager of Zoford Consulting Group in China, Zhen Yu, Operations Director and Project Executive of Enerjoy, attended the symposium and shared insights and discussions on ESG topics from areas such as finance and taxation, compliance risks, strategic consulting, and smart buildings. They all expressed that China needs to achieve dual development in the tightening international policy constraints, emphasizing green and low-carbon development while expecting ESG to bring more opportunities to the sluggish job market.

05. Signing Ceremony

Wang Libo, Partner and Head of ESG Business at Shanghai Landing Law Offices, and Tang Yanqi, Director of the Global Carbon Governance Forum, Partner of Manbing Group, and Co-founder of CarbonCity, represented both parties in signing the "CarbonCity-Landing" ESG Strategic Cooperation Agreement and took a commemorative photo.

[Image] Image of Signing Ceremony:

Wang Libo, Partner and Head of ESG Business at Shanghai Landing Law Offices (third from the right),

Tang Yanqi, Director of the Global Carbon Governance Forum, Partner of Manbing Group, and Co-founder of CarbonCity (third from the left),

Other attendees included Guo Jidong, Secretary-General of the Shanghai Building Technology Research Association; Zhang Xiaopeng, Secretary-General of the Shanghai Weihai Chamber of Commerce; Ye Mei, Deputy Secretary-General of the Shanghai Building Technology Research Association; Jiao Xiao Xiao, Manchester Innovation Development Center; Zhou Yan, General Manager of Gan Zhicheng CPA Firm in China; Shen Jia, General Manager of Zoford Consulting Group in China; Zhen Yu, Operations Director and Project Executive of Enerjoy; Sun Yun, Senior Partner of Shanghai Landing Law Offices; and Zhao Yuanzhen, Senior Partner of Landing's Beijing office and Head of Jinzhu Private Equity.