NINE Shenzhen enterprises made it onto a list of China’s most influential firms in terms of ESG development, according to the latest report by Fortune China.

Express delivery company SF Express, telecom equipment maker ZTE Corp., and capital investment platform Shenzhen Investment Holdings have been on the list for three consecutive years, ranking 7th, 29th, and 39th, respectively, among 70 enterprises on the list.

Some were newcomers, including electronics manufacturer Luxshare Precision Industry, lithium-ion battery maker Sunwoda Electronic, smartphone maker Honor, and financial conglomerate Ping An Insurance Group.

ESG is a practice in which environmental, social, and governance factors are used by investors to evaluate a company instead of focusing solely on financial performance.

“China has been steadily implementing the ESG practice. In a year when the macro economy faces serious challenges, ESG has become a course of action for companies to maintain their competitiveness,” said Fortune China.

The performance of Shenzhen firms reflects how low-carbon development is gaining momentum in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA).

According to a separate report by HSBC, in collaboration with the CECEP Environmental Consulting Group, 28 enterprises in the GBA either established new carbon emissions reduction targets or committed to new initiatives under the Science Based Targets initiative in the first three months of the year, up 33% from the last quarter of 2023.

“As a national innovation hub, the GBA has seen swift advancements in emerging sectors, including electric vehicles, renewable energy, and smart robotics,” said Daniel Chan, head of the Greater Bay Area at HSBC. “The momentum created by the new quality productive forces initiative is setting the GBA on a solid path to meet its ambitious ‘dual carbon’ targets.”

The dual carbon targets include peaking carbon emissions by 2030 and achieving carbon neutrality by 2060.

The new quality productive forces initiative refers to the strategy advocated for by the Chinese Government to enhance productivity through technological innovation.

Vehicle battery maker Contemporary Amperex Technology secured the top spot on the ESG impact list, followed by polysilicon maker Tongwei and lender Industrial Bank.

China has been promoting ESG development as part of its push to drive sustainable economic growth. Guidelines on listed companies’ sustainable development came into effect at the beginning of this month, requiring some public firms to make ESG-related disclosures no later than 2026.

(China Daily)