In the News: Green Finance Guidance; Courts Will Utilize Blockchain Technology; and Anti-Corruption Supervision of Intermediaries

Credit: EKKAPON/Adobe Stock

Green Finance Guidance for Banks and Insurance Companies 

On June 2, the China Banking and Insurance Regulatory Commission (CBIRC) released the Guidelines on Green Finance for the Banking and Insurance Industries (银行业保险业绿色金融指引).

The guidelines require banks and insurance companies to promote and invest in green finance and a low-carbon economy. This involves active investments in green technologies as well as implementing internal policies to limit carbon emissions. Further, banks and insurance companies are to strengthen their incorporation of environmental, social and governance (ESG) criteria into management processes, improve information disclosure regimes, and promote stakeholder participation. The guidelines specifically warn against implementing one-size-fits-all or campaign-style carbon reduction policies (运动式减碳). Instead, banks and insurance companies should strategically design and apply bespoke policies that achieve the end goal of portfolio carbon neutrality while protecting financial stability, energy security, industrial chain security, and supply chain security.