hero-img

Empower Businesses' Sustainable Development

VISION

Move beyond compliance
Unlock ESG's transformative power
with a uniquely Chinese approach

Lead the way in going beyond compliance, unlocking ESG’s transformative power for a sustainable future that aligns with the unique value propositions of Chinese customers.
WHAT IS ESG?
The core of ESG is about developing business strategies that do not solely aim at profit maximization but create competitive advantages through sustainable products or services without compromising stakeholders’ needs. It is not just about getting higher ratings or generating ESG reports.

Environment

Social Responsibility

Governance

1980s ESG Rating Began In the 1980s, ESG ratings by 3rd party agencies were used by U.S. investors to screen companies for capital investments.
2006 ESG Investment Principles In 2006, the United Nations Global Compact (UNGC) and the United Nations Environment Program (UNEP) Sustainable Finance Initiative jointly launched the "Principles for Responsible Investment" (PRI) integrating ESG at the New York Stock Exchange.
WHAT IS COMPLIANCE?

Move Beyond Compliance

01

Base Frameworks of Sustainability

Lorem ipsum dolor sit amet consectetur adipisicing elit. Ut fugiat inventore illo eaque ea molestias impedit delectus reiciendis aperiam quam atque, possimus rerum fugit voluptates veniam facilis mollitia iusto accusantium?

02

EU Taxonomy aims for sustainability reporting

Lorem ipsum dolor sit amet consectetur adipisicing elit. Ut fugiat inventore illo eaque ea molestias impedit delectus reiciendis aperiam quam atque, possimus rerum fugit voluptates veniam facilis mollitia iusto accusantium?

03

China Sustainability Regulatory Framework

Lorem ipsum dolor sit amet consectetur adipisicing elit. Ut fugiat inventore illo eaque ea molestias impedit delectus reiciendis aperiam quam atque, possimus rerum fugit voluptates veniam facilis mollitia iusto accusantium?
BASE FRAMEWORKS OF SUSTAINABILITY

The Triple Bottom Line Principle

The triple bottom line of sustainability (TBL model, Elkington, 1994) is the fundamental framework for understanding sustainable development. It considers and advocates balanced approach of environmental (planet), social (people), and economic aspects (profit).​
PEOPLE
PLANET
PROFIT

People

-

Social

Planet

-

Environmental

Profit

-

Economic

BASE FRAMEWORKS OF SUSTAINABILITY

The UN’s Sustainable Development Goals

1 NO
POVERTY
2 ZERO
HUNGER
3 GOOD HEALTH AND WELL-BEING
4 QUALITY EDUCATION
5 GENDER EQUALITY
6 CLEAN WATER AND SANITATION
7 AFFORDABLE AND CLEAN ENERGY
8 DECENT WORK & ECONOMIC GROWTH
9 INDUSTRY, INNOVATION, AND INFRASTRUCTURE
10 REDUCED INEQUALITIES
11 SUSTAINABLE CITIES AND COMMUNITIES
12 RESPONSIBLE CONSUMPTION AND PRODUCTION
13 CLIMATE
ACTION
14 LIFE BELOW WATER
15 LIFE ON
LAND
16 PEACE, JUSTICE AND STRONG INSTITUTIONS
17 PARTNERSHIPS FOR THE GOALS
2015 Signing of SDG Goals In 2015, 193 countries, including China, signed the 2030 United Nations Sustainable Development Goals (SDGs). Since then, the political establishment has moved the SDGs from non-mandatory to mandatory, with a clear call on the global business and private sectors to drive the SDGs to success. The 17 Sustainable Development Goals set out a clear framework for the sustainable development of countries and enterprises.​
2016 China Adopts Sustainability Concept In 2016, the Ministry of Foreign Affairs of China announced that China, as the second largest economy, will pursue coordinated development in economic, political, cultural, social, ecological, and other fields guided by the concept of innovative, green, and low-carbon development.
BASE FRAMEWORKS OF SUSTAINABILITY

ESG & Triple Bottom Line - Comparison

ESG

Click to Toggle

TBL

ESG

TBL

Similarities:

Both ESG and TBL emphasize a balanced approach to a company's sustainable development.​

Differences:

ESG is closely linked to third-party ratings and investment decisions, while TBL is a more academically accepted model for business sustainability. ​

E

S

G

E

Environment

Social

Governance

Economy

12 RESPONSIBLE CONSUMPTION AND PRODUCTION
13 CLIMATE
ACTION
14 LIFE BELOW WATER
15 LIFE ON
LAND
1 NO
POVERTY
2 ZERO
HUNGER
3 GOOD HEALTH AND WELL-BEING
4 QUALITY EDUCATION
5 GENDER EQUALITY
6 CLEAN WATER AND SANITATION
10 REDUCED INEQUALITIES
11 SUSTAINABLE CITIES AND COMMUNITIES
16 PEACE, JUSTICE AND STRONG INSTITUTIONS
7 AFFORDABLE AND CLEAN ENERGY
8 DECENT WORK & ECONOMIC GROWTH
9 INDUSTRY, INNOVATION, AND INFRASTRUCTURE
17 PARTNERSHIPS FOR THE GOALS
BASE FRAMEWORKS OF SUSTAINABILITY

The EU Taxonomy Aims to standardize Sustainability Reporting

The EU Taxonomy standardize sustainability reporting and support the SFDR and CSRD.​

The EU framework can indirectly influence German firms in China due to:​
  • Pressure to align with global ESG standards.​
  • Potential future regulations like the EU Corporate Sustainability Due Diligence Directive (CSDDD) requiring supply chain sustainability.
EU Taxonomy Regulation
Labelling
  • EU Green Bond Standard (EuGB)
  • EU Climate Benchmarks Regulation
  • EU Ecolabel
Provide the foundation for sustainable labelling systems
Sustainability disclosure regime
  • Sustainable Finance Disclosure Regulation (SFDR)
  • Corporate Sustainability Reporting Directive (CSRD)
    • Standards Under Development
    • Double Materiality Approach
  • Sustainability preferences (MiFID, IDD)
Disclose reliable, consistent and comparable ESG data to the market
Corporate Governance
  • Sustainable Corporate Governance Initiative (SCGI)
  • Focus corporate strategies on long-termism
    • Two elements: Due diligence and directors' duties
    • Commission proposal expected mid-February 2022
Disclose reliable, consistent and comparable ESG data to the market
CONTACT

Get In Touch

Want to contribute to German companies’ sustainable growth in China?

Participate in my research project*!

Engage in a fruitful discussion about your company’s sustainable development strategy in China and gain valuable insights into the challenges and cultural issues. As a participant, you will have free access to the comprehensive research data and results!

This opportunity is limited to only 30 German companies in China! Contact now: qi.xu@munich-business-school.de​

Want to know how ESG can contribute to your company’s sustainable growth?

We help business leaders navigate the complex ESG landscape and identify your business' material topics to meet sustainability disclosure requirements. Most importantly, we go beyond regulatory requirements and empower your business to seize strategic opportunities tailored to China's context and drive positive changes.

For details, please refer to "Chinese Approach".
Book a free consultation with us! Contact now: ESG@CorpESG.com​
*Research Project: German Companies' Sustainable Development in China - a Maturity Model. Approved by Sheffield Hallam University and Munich Business School have approved and finance this research project. (Ethics Review ID: ER52950172).