Search this website. You can use fund codes to locate specific funds

China’s long and winding road to net zero

China is thought to account for over a quarter of global greenhouse gas emissions, and Paris Agreement alignment will be vital if global heating is to be kept within safe planetary boundaries.

In the run up to the UN’s COP26 climate talks, China’s President Xi Jinping pledged that China would stop building new coal-fired power projects abroad – a significant commitment as China has been one of the biggest public financiers of new coal plants both overseas, and at home.

China is the world’s second largest economy, and is thought to be the largest greenhouse gas emitter. The Rhodium Group estimates that China was responsible for 27% of global greenhouse gas emissions in 2019, with coal-fired power generation still accounting for around 50% of its energy mix.

It is certainly ambitious for China to achieve net zero by 2050 but it is not an impossible task. To actually deliver on its commitment to the Paris Agreement, China’s power and heavy industry sectors must adopt a decarbonisation strategy immediately and limit the use of coal.

We are engaging with Chinese and Hong Kong companies on establishing targets and plans for reducing greenhouse gas emissions in line with the Paris Agreement. We have included a climate change voting policy in our Corporate Governance Principles for Mainland China and Hong Kong, and we communicate our expectations with companies identified as climate change mitigation laggards.

This article will appear in our Q3 2021 Public Engagement Report.

Related Insights

Cryptocurrency – the good, the bad and the ugly
Investors should engage with companies to understand the risks associated with cryptocurrencies.
Japan Tobacco case study
Japan Tobacco has demonstrated its commitment to eliminating child labour from its supply chain through various programmes and significantly improving its reporting on the issue, including a standalone human rights report.
POSCO case study
Following engagement on climate change, POSCO strengthened its governance and management framework of climate-related issues.
Associated British Foods case study
ABF has evaluated its approach to risk management and subsequently provided increased assurance to investors and increased its communication on the topic. case study published its first ESG report in April 2021 and its second sustainability report in June 2021. It also held its first shareholder meeting in June 2021 with appointment of its first female board director.
Net zero on the menu
Over-consumption of meat not only increases the risk of disease, it is also a major contributor to global heating, and continuing on our current path is unsustainable.

EOS Client Service and Business Development

Amy D’Eugenio,
Head of Client Service and Business Development, EOS