22 ASIAN LEGAL BUSINESS CHINA • 亚洲法律杂志-中国版 MAY 2024 In September 2020, the announcement of China’s “carbon peaking and carbon neutralization” objectives heralded the nation’s entry into the “ESG era.” By 2023, China had firmly entered the year of “ESG standards.” Influential bodies such as the Stateowned Assets Supervision and Administration Commission, the China Securities Regulatory Commission, and key stock exchanges have all introduced a series of ESG disclosure and management rules targeting various company types, making ESG compliance mandatory rather than voluntary. “Against this backdrop, different industries have begun to implement their own ESG policies,” notes Ren Yanling, managing partner at Tian Yuan Law Firm. Dante Jiang, a Shanghai-based partner at Guantao Law Firm with many years of experience advising on ESGrelated legal issues, observes, “ESG is a broad concept that has become a distinct area of practice in recent years, driven by a steady stream of relevant policies and regulations.” Guantao Law Firm, with its early involvement in the field and comprehensive ESG service offerings, caters to a diverse client base across various industries. Jiang, who specializes in green emission reduction trading services, typically works with clients concentrated in sectors such as energy, technology, and finance. As the implementation of industrywide ESG regulations advances and the demand for sophisticated ESG services grows, lawyers are recognizing a trend toward more industry-specific ESG legal services. “The reason for this shift is that ESG encompasses three main areas— environmental, social, and governance— which affect industries in unique ways. Clients are increasingly seeking tailored ESG reporting, compliance, and advisory services that align with the specific needs of their industries,” says Wan Xing, a partner at Commerce & Finance Law Offices. Wan provides insight into two sectors. The first is the biotechnology industry, in which he specializes. “Regarding environmental concerns, drug manufacturing is intimately connected to chemical use and carbon emissions. Leading global pharmaceutical companies have been focusing on low-carbon production, a topic that was highlighted during their executives’ visits to China this year. On the social front, bioethics is a significant issue for biotech firms.” Moreover, on April 12, the Shanghai, Shenzhen, and Beijing Stock Exchanges each issued their own sustainable development reporting guidelines, set to take effect on May 1. These documents address the growing emphasis on ESG reporting and are likely to place additional pressure on biotech and other industries. “The Hong Kong Stock Exchange introduced ESG reporting guidelines earlier, and domestic biotech companies aiming to list in Hong Kong are required to disclose ESG information during the application process. We’re assisting clients with meeting these obligations,” Wan adds. The consumer sector is another industry with a high demand for ESG compliance. Wan notes, “In terms of environmental impact, the greenhouse gas emissions from certain consumer sectors are significant. For instance, methane emissions in dairy production have become a global concern. Socially, consumer products face increased ESG In recent years, China has significantly strengthened its environmental, social, and governance (ESG) regulations. Consequently, ESG-related legal services have evolved into a distinct area of practice within law firms. Presently, ESG legal services are becoming more industry-specific, which elevates the requirements for lawyers to demonstrate innovative thinking and comprehensive judgment. 过去几年，中国环境、社会、治理领域（ESG）规则日益健全，ESG相关法律服务也日渐成长为单独的律所业务板块。 目前，ESG法律服务正出现“行业化”趋势，其对律师的创新能力、综合判断也提出了更高要求。 BY HU YANGXIAOXIAO 作者：胡阳潇潇 GREEN POTENTIAL 挖掘绿色潜力
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