Law Firm News

The Association Standard for “Environmental, Social and Governance (ESG) Management System Requirements” was officially released, with Ronly & Tenwen Lawyer PAN Ruowei as the main drafter

2023.12.29

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      The Association Standard for Environmental, Social and Governance (ESG) Management System Requirements (hereinafter referred to as The Standard) was officially issued by the CCPIT Commercial Sub-council on November 30, 2023. PAN Ruowei, a senior partner of the firm, participated in the standard construction as one of the main drafters.

      The Environmental, Social and Governance (ESG) rating system, also referred to as ESG Ratings, is developed by both commercial and non-profit organizations with the purpose of evaluating a company’s alignment with sustainable development goals in terms of its commitment, performance, business model, and structure. Initially utilized by investment firms for screening or assessing companies within their diverse funds and portfolios, these ratings can also be employed by job seekers, clients, and others when evaluating business relationships. Moreover, the rated companies themselves can gain a better understanding of their strengths, weaknesses, risks, and opportunities.

    The significance and demand for ESG management have become increasingly prominent worldwide, with governmental agencies and international organizations issuing regulations, standards, and requirements to address ESG and sustainable development. The Standard aligns with the United Nations 2030 Sustainable Development Goals and other relevant mandates, serving as a valuable resource for enterprises seeking to enhance their ESG management capabilities and performance.

    YAO Xin, Secretary-General of the CCPIT Commercial Sub-council and Chairman of ISO/TC 342, said that The Standard creatively elucidates the fundamental principles of ESG management, delineates a comprehensive framework of ESG system components, adopts the high-level structure of ISO management system standards, and furnishes practical tools and methodologies for ESG management endeavors. The Standard incorporates cutting-edge concepts and global best practices in ESG management, creating favorable conditions to promote ESG initiatives in China and enhance corporate ESG management capabilities. Rather than being superficial, ESG is attained through concrete actions. The issuance of The Standard encourages enterprises to integrate ESG into their business management processes to ensure substantial enhancements in ESG performance rather than merely going through formalities.

    PAN Ruowei, a senior partner of the firm, is one of the main drafters of The Standard, who proposed rigorous and pragmatic professional advice for formulating The Standard by leveraging his profound legal acumen and extensive expertise in corporate governance and management, enabling the ESG management system to effectively empower various industries.

    In the future, Ronly & Tenwen will be dedicated to constructing an enterprise compliance management system, formulating compliance policies and management processes for enterprises, establishing internal management organizations, mitigating compliance risks, enhancing the level of enterprise management, and providing solid support for the stable development of enterprises.