China’s ambition to reach peak carbon by 2030 and achieve carbon neutrality by 2060, along with other policy goals such as greater social equality, will drive greater demand for transparency around the sustainability of companies’ operations, supply chains and products. Indeed, these ambitions are already resulting in a faster than expected proliferation of ESG related policies, as well as changes to investment and business engagement that will have significant impact on companies across various business sectors.
These developments present opportunities for companies to build trust with local stakeholders, regulators and supply chain partners, to advance the quality of products through better supply chain management and to build stronger brands both in China and further afield by engaging positively with local communities. On the other hand, foreign companies operating in or sourcing from China will be increasingly exposed to ESG risks and will need to stay on top of the fast-paced changes in both regulatory requirements and market expectations.
PwC China attaches great importance to this opportunity to work with the Canada China Business Council to share ESG highlights, relevant policy developments and local practices. This document aims to help foreign companies better understand the market realities and implications and be better prepared to comply with evolving ESG standards while achieving their business goals in China.