On May 20, 2024, the Launch Ceremony for the Implementation of Shanghai Enterprise ESG Standards and the First North Bund Forum on Urban Sustainable Development were successfully held at White Magnolia Plaza in Hongkou District.

As a co-organizer of the event, Leverage was honored to participate in the North Bund Forum on Urban Sustainable Development. Mr. Qu Weifeng, CEO of Leverage, attended the forum onsite with a delegation of colleagues.

Opening Addresses by Senior Officials

This event commenced with addresses from three senior officials.

Mr. Guan Weiyong, President of the Shanghai Federation of Industrial Economy (SFE), emphasized the core role of industrial economics in urban development and outlined corporate responsibilities in advancing sustainable development. He highlighted the guiding function of ESG standards for enterprises and broader socio-economic and environmental progress. The Legal Professional Committee of SFE, having assembled multidisciplinary experts, announced the release of the "Guidelines for Compiling Corporate ESG Reports" and the "Evaluation Criteria for Corporate ESG Reports" after a year of development. Furthermore, three additional standards related to carbon neutrality and plastic recycling will be introduced to enhance corporate social responsibility and green development.

Mr. Wang Yiyang, Deputy Director of the Shanghai Municipal Administration for Market Regulation (SAMR), stated that Shanghai is committed to building an international business environment. The newly released ESG group standards will guide enterprises in establishing information disclosure systems, address the lack of standards, and be piloted by leading large state-owned enterprises to create industry influence and provide a reference for national standards.

Ms. Wang Lin, Secretary of the Party Committee and Director of the Hongkou District Bureau of Justice, emphasized that the rule of law is a crucial feature of Shanghai's modern urbanization and is essential for ensuring corporate fulfillment of social responsibilities, fair competition, and sustainable development. As the birthplace of Shanghai-style culture, Hongkou District will leverage its strengths in the rule of law to optimize the business environment and support the development of Shanghai's North Bund into a new urban benchmark.

Official Launch of Shanghai Enterprise ESG Standards

Mr. Guan Weiyong, President of SFE; Mr. Wang Yiyang, Deputy Director of SAMR; Ms. Zhao Xiaolei, Head of the UNIDO Investment and Technology Promotion Office; along with leaders from the Shanghai Municipal Commission of Economy and Informatization, the Shanghai Municipal Commission of Commerce, and the Shanghai State-owned Assets Supervision and Administration Commission, witnessed the launch of the "Guidelines for Compiling Corporate ESG (Environmental, Social, and Governance) Reports," marking the official implementation of the Shanghai Enterprise ESG Standards.

Appointment of Expert Group Representatives

To broadly incorporate stakeholders from production, operation, management, construction, consumption, monitoring, certification, and other related fields into the development of group standards by SFE, and to fully leverage their strengths in comprehensively enhancing the quality of these standards, SFE appointed authoritative experts in relevant fields. This initiative aims to provide robust intellectual support for the subsequent development, release, and implementation of standards. Mr. Qu, along with six other experts, was appointed as a sustainability project expert for SFE's think tank. President Guan Weiyong presented the letters of appointment to the ESG expert group representatives.

Keynote Speeches

During the keynote session, Ms. Zhang Juan, Deputy Director of the Shanghai Commission of Commerce Development Research Center, interpreted the "Three-Year Action Plan for Accelerating the Enhancement of Environmental, Social, and Governance (ESG) Capabilities of Foreign-Related Enterprises in Shanghai (2024-2026)." She compared Shanghai's work plan for foreign-related enterprises' ESG with that of Beijing, clarifying the future direction of ESG efforts for Shanghai's foreign-related enterprises.

Dr. Lü Jianzhong, GRI Board Member, Head of the SFE Sustainable Development Standards Expert Group, Senior Fellow of the Shanghai Modern International Urban Research Center, and Chief Urban ESG Architect, delivered a speech titled "Sustainable Development and Urban Construction." He elaborated on the UN Sustainable Development Goals for 2030 and the ten principles of the UNGC, proposing an integrated strategic matrix model designed to advance ESG practices across multiple dimensions. Dr. Lü emphasized that ESG is not merely a disclosure requirement but a key factor in enhancing organizational competitiveness and capabilities.

Ms. Zhao Xiaolei, Head of the UNIDO Investment and Technology Promotion Office, delivered a keynote speech on "Shaping the New Landscape of Future Industrial Development through Urban Sustainable Development." She introduced UNIDO's establishment background and primary functions, pointing out that industry can become a main engine for achieving the Sustainable Development Goals (SDGs) amid major trends facing sustainable cities. Industry is key to promoting growth, innovation, job creation, poverty and hunger reduction, building a more equal society, and addressing climate change. She stressed the importance of prioritizing the SDGs in industrial development.

Letter of Commitment Signing Ceremony

During the enterprise representative remarks and the Letter of Commitment signing ceremony, Mr. Qu, as the lead representative, delivered a speech and jointly read the Letter of Commitment with other enterprise representatives. This expressed their shared commitment to participating in the sustainable development of Shanghai's industry and city, building a beautiful China, and creating a sustainable future.

The theme of this roundtable discussion was "Shanghai's Sustainable Development: Observations and Practical Explorations." Mr. Qu participated in this roundtable in his concurrent role as Co-Leader of the Shanghai Federation of Industrial Economy's Sustainable Development Standards Project Team. 

Below is a summary of his insights:

As both head of a certification body and leader of the standards project team, you have served many different types of enterprises and organizations and engaged deeply with various sector companies during the standard drafting process. Overall, how would you characterize the current developmental stage and level of Shanghai-based enterprises regarding ESG and sustainable business practices? What distinctive features define their current practices?

It is a great honor for us to co-organize this forum today. My sincere thanks to everyone for your presence.

Leverage is a Chinese international sustainable service provider, for which certification is one business segment. We offer comprehensive services—including research, training, auditing, assurance, and strategic consulting—in sustainability fields such as compliance, ESG, and dual-carbon goals to our clients.

As a Chinese institution, we are fortunate; both government policies and market demand are driving the development of sustainability initiatives such as compliance, ESG, and dual-carbon goals. From Shanghai's perspective, the types of enterprises we have served are highly diverse, including state-owned enterprises (SOEs), private enterprises, and foreign-invested enterprises, with workforce sizes ranging from 50 to 5,000 employees. The ESG needs of enterprises vary significantly depending on their ownership structure and scale: SOEs' demands primarily stem from regulatory requirements, while private and foreign enterprises are driven more by commercial commitments and partnership needs. The manifestations of these needs are also diverse, extending far beyond annual report disclosure to include training, auditing, ratings, management systems, assurance, communication, among others. Furthermore, an enterprise's development stage, strategic direction, and top management's commitment determine the focus and scope of its ESG work.

At the current stage, several trends are emerging:

1. The demand for assurance on ESG disclosure reports is gradually increasing;

2. The ESG management capabilities of Chinese "chain leader" enterprises continue to improve, progressively influencing their supply chains;

3. More outstanding enterprises are integrating sustainability into their core operations and product/service offerings;

4. There is a shift from task-oriented disclosure toward embedding it into organizational management systems, transforming into more systematic goal-setting and indicator-based reporting.

Looking ahead to the coming years, what advantages should Shanghai demonstrate as a leading sustainable development city, and what does that vision look like in your perspective?

Shanghai is a city in constant progress. The Three-Year Action Plan clearly reflects Shanghai's strong support for sustainable development. I am truly honored to participate in Shanghai's sustainability-related standard-setting work, helping more enterprises enhance their competitiveness and realize the value of corporate sustainable development. I also look forward to collaborating with more ecosystem partners in sustainability to contribute to building a beautiful Shanghai. By leveraging the sustainable city development framework, we can further enhance Shanghai's international influence and reputation.

Finally, under the chairmanship of Xiong Chenyao, Secretary-General of the Legal Professionals Committee of the Shanghai Federation of Industrial Economy (SFE) and Lead Coordinator of Shanghai Enterprise ESG Standards Development, a panel discussion was held with the following participants: Zhao Jiangzhen, Researcher at the Shanghai Enterprise Compliance Research Center; Ye Wenping, Director of the ESG Law and Policy Research Center at the Law School of Shanghai University of Finance and Economics; Chang Huijue, Deputy Director of the Planning and Development Committee of Shanghai Securities Company; and Yang Guiyuan, Chief Risk Officer of Shanghai Rural Commercial Bank. Together, they engaged in in-depth discussions on pathways to sustainable development.

Looking ahead to the future, the desirable vision of carbon neutrality by 2060 may not be distant—it begins with every present action we take. Each corporate carbon neutrality commitment, every net-zero target, and all emission reduction efforts made for green development will pave the road toward a better future. Leverage will utilize the professional expertise of our own team to provide support for enterprises in their sustainable transformation. We look forward to cooperating hand in hand with more partners to jointly promote the development of ESG in China.