Feature

The Rising Issue of‭ ‬‮!’‬Environmental‭, ‬Social and Governance‮!(‬‭ ‬and its enlightenment for Macao‮!&‬s development

Since 2006, the United Nations proposed the “Environment, Social and Governance” (ESG) topic as an investment compliance framework for global investors. Until recent years, places around the world have successively announced carbon neutrality targets, and the outbreak of COVID-19 has raised the society’s concern on sustainable investment, which led to the further rise of ESG issues. This article tries to understand the connotation and definition of ESG by international organizations such as the United Nations, World Bank, as well as the corporate ESG evaluation systems of various international rating agencies; explore the actual benefits that ESG brings to enterprises and the overall economy; and compare the development process and policies of ESG around the world, to try to look into the insights that ESG brings to Macao, especially in terms of attracting investment.

Among them, it is found that the global inflow of ESG-related investments has increased sharply under the pandemic, ESG has become an important consideration for investors in selecting enterprises or destinations to invest. ESG has also effectively helped enterprises to increase revenue and cut down expenditure and allow companies to be resilient in reacting to the pandemic. Also, innovative technology has become a driving force for ESG. Places around the world is accelerating the promotion of ESG development, mainly by requiring enterprises to disclose their ESG profiles, in which the EU is the pioneer, and the Mainland China and Hong Kong are also stepping up to implement relevant guidelines and regulations. And for Macao, some public utilities, large-sized and cross-regional enterprises have also developed voluntary initiative in disclosing their ESG profiles.

In view of this, local industries or enterprises can consider introducing ESG concepts and highlighting ESG performance as an advantage to attract investors; and by integrating the ESG concepts into business operations and decision-making to enhance resilience after the pandemic and overall competitiveness, in a bid to help to expand the market. At the same time, enterprises can consider to better introduce innovative and technological elements, and to strengthen the connection with science and technology enterprises, in order to help implement the ESG concepts, so as to promote the sustainable development of enterprises and the moderate diversification of the economy.

The global inflow of ESG-related investments has increased sharply under the pandemic

Local industries or enterprises can consider introducing ESG concepts and highlighting ESG performance as an advantage to attract investors