Our ESG report "From Principles to Practices: ESG Practices of German Companies in China 2024" was officially released in May. This report represents the German Chamber’s pioneering effort to assess the current state of ESG practices among German companies operating in China.
Highlights
The report shows the company's best practices in 3 parts (Environment, Social, Governance):
Environment
Quantify greenhouse gas emissions and establish climate action targets
Reduce the proportion of fossil energy use
Promote the application of photovoltaic power generation
Introduce process technology innovation
Pay attention to product lifecycle management
Cultivate employee awareness of low-carbon behavior
Social
Strengthen the construction of ESG systems in the supply chain and actively respond to due diligence investigation laws in various countries
Deepen human resources development
Establish an employee assistance platform to care for employees’ physical and mental health
Advocate diversity and equality and create an inclusive culture
Undertake community public welfare and promote school-enterprise cooperation
Governance
Encouraging more stakeholders to participate in organizational decision-making
Emphasizing supplier and partner management
Comprehensively implementing a business ethics code
Disclosure quality and transparency
Outlook
Information Disclosure: Companies will adhere to unified ESG disclosure standards, moving towards the "double materiality" principle and the ISSB framework. Meanwhile, the demand for ESG report certification will rise, meeting investors' demands for transparency and authenticity.
Natural Capital: Enterprises will face stricter regulations on the protection of natural resources and must take effective measures to reduce harm to these resources. The development of the blue economy will also spur companies to take on greater responsibility in protecting marine biodiversity.
Risk Management: Corporate risk management will shift from a reactive to a proactive approach, utilizing digital tools for systematic risk control and strengthening cross-regional and cross-organizational cooperation to tackle complex environmental and social risks.
Artificial Intelligence: With the rapid advancement of AI technology, companies will confront new challenges in information security and ethical issues. These factors need to be integrated into all aspects of product and customer safety management.
Click the following links to download the report:
From Principles to Practices: ESG Practices of German Companies in China 2024
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