
On November 16-17, 2023, The First Annual Sino-international Law Forum was held in Shanghai. This forum invited general counsels and compliance officers from Chinese enterprises, top lawyers from Chinese law firms, and senior foreign lawyers from independent law firms in over 50 countries to attend. Mr. Qu Weifeng, CEO of Leverage, attended the forum and was invited by the organizers to participate in the roundtable discussion on "Successfully Navigating Global ESG Minefields" during the second day's "International Legal Exchange and Cooperation Forum for Chinese Foreign-Related Lawyers."



In the current geopolitical climate, Chinese enterprises face escalating risks in overseas operations. The volatility of international situations and market environments shifts transaction and trust risks onto general counsels and compliance officers, making their challenges increasingly complex. So far, the international business of Chinese enterprises has not fully aligned with international legal services, resulting in a lack of access to high-quality overseas legal support and resources. This gap hinders general counsels and compliance officers in effectively addressing related challenges.

This forum was tailored to address the international business issues faced by Chinese enterprises, featuring targeted expert invitations. It provided senior general counsels and compliance officers with a finely structured agenda, high-quality knowledge sharing, and insights on international trends and real-world geopolitical analysis. The focus was not only on legal compliance but also on the strategic management needs of enterprises, aiding both Chinese and leading international companies in effective risk management.


The first day featured the "China International Legal Compliance Forum," a closed-door meeting aimed at senior legal and compliance officers, specially invited Esteemed Harvard Law Professor Scott Westfahl, along with top legal counsels from both China and abroad, delivered keynote speeches. The In-depth discussions were facilitated through a series of small salons and international standard training sessions. The first day's focus of the closed-door meeting was on high-level legal expertise, risk management, and compliance experiences, all aimed at addressing complex corporate issues and contributing to strategic decision-making.


The theme of this roundtable discussion is "Successfully Navigating Global ESG Minefields." Topics include the interpretation of Shanghai's new ESG standards, how Chinese companies can better meet global ESG qualifications, the development pathway for ESG in China, the business value of sustainable development, and the crucial roles of internal and external legal teams, etc.

This time, Mr. Qu was also serves as the Chairman of the Leverage Sustainable Development Committee and Co-Leader of the Shanghai Industrial Economic Association's Sustainable Development Standards Group, will introduce the Shanghai standards in place of Secretary-General Jiang from the Shanghai Industrial Economic Association.
The host mentioned a total of four questions, and the three guests who participated in the sharing respectively answered them based on their own practice. Here is Mr. Qu's share:

Guest Introduction
We are an international provider of sustainable business service technologies, focusing on compliance, ESG, and carbon neutrality. We offer services such as training, audits, certification, verification, and consulting to help our clients seamlessly and responsibly integrate into the global supply chain with confidence.
Today, I am here to introduce the Shanghai standards on behalf of Secretary General Jiang. Additionally, I serve as the co-leader of the Sustainable Development Standards Group of the Shanghai Industrial Economic Federation, focusing on the development, dissemination, and application of sustainability-related standards in Shanghai and China.

ESG practices and challenges in China, Japan and Europe, such as how to effectively control and enforce company ESG policies on the international supply chain?
As a technology company that has been providing supply chain services to domestic and international brands and retailers for many years, we help these brands mitigate product and operational risks associated with the supply chain. These risks include product defects, recalls, labor issues, health concerns, environmental challenges, and anti-fraud risks, all while protecting and enhancing their brand image. We also promote sustainable improvements and best practices, including initiatives related to ESG (Environmental, Social, and Governance).
After years of observation and practice, we are pleased to see that many Chinese enterprises exemplify good practices, including Goldwind Technology, Lenovo, and Yili.
Chinese companies often struggle to effectively communicate and share their stories; however, this does not mean we lack the ability to do so well.
Of course, challenges exist, such as the Uyghur Act, the Forced Labor Act, the EU's Green New Deal, the Battery Act, and the CBAM (EU Carbon Border Adjustment Mechanism), which frequently restrict and disrupt our normal business operations.

How does ESG create business value and how can ESG policies be effectively enforced to avoid significant damage claims and negative impacts on the company's finances?
Through the three dimensions of ESG thinking, and indexed tools can help enterprises to make decisions and form practices. We should view the business value practice of enterprises from the following aspects.
Risk Avoidance: Evaluating operations and supply chains through the ESG lens allows companies to identify and mitigate potential risks, ensuring sustainable business continuity.
Identifying Business Opportunities: An ESG perspective encourages companies to innovate, leading to the discovery of low-carbon and valuable business opportunities that align with consumer demands.
Enhancing Brand Influence: Strong ESG practices and management can yield favorable ratings and reputation among stakeholders, ultimately bolstering the brand's credibility and influence in the market.

As a professional, what is ESG practice in your opinion?
Today is the topic of compliance and law. My suggestion is to have a correct understanding of ESG. ESG is a universal concept word, which is 1+N; Not just reporting, not just rating, there are many application scenarios.
At the same time, it is suggested to correctly understand the risk, and do not let the risk limit our innovation and development; It is necessary to remember that it is impossible to eliminate risk 100%, and to control risk within a controllable and acceptable range is safety.
At this point, the general compliance and legal counsel of the enterprise need to pay more attention, and giving positive advice to the management rather than "saying no when seeing the risk" will be more valuable to the company and individuals.
From a practical point of view, as a practitioner, you must first do yourself well: make decisions with ESG thinking and methods, and spread influence and action through relevant stakeholders. Bearing in mind that sustainable development is the purpose of ESG practice, we should organically integrate our own operations, business activities, services and products with sustainable development.
If you want to know more information, please contact us:
■ Shanghai :
Leverage Limited (Shanghai) Co., Ltd.
Address: Room 402, No 2. Building, No .1328, Hengnan Rd, Shanghai, China
Phone: + 86 21 64067720
Email: cs@leveragelimited.com
■ Hongkong :
Leverage Global Limited
Address: Room 1318-19, Hollywood Plaza, 610 Nathan Road, Mongkok, Kowloon, Hong Kong
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