08.31 / 2021
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With the continuous improvement of society’s awareness of the "dual carbon Targets” (carbon peak and carbon neutrality), a large number of industries will be eliminated, and many new industries will be formed, reshaped, and born. How can entrepreneurs seize the huge opportunities brought by "dual carbon"? This article is based on the speech made by Ma Weihua, Chairman of the Board of Directors of China Global Philanthropy Institute (CGPI) and member of the UNDP SDG Impact Steering Committee, at the first CEIBS Green Finance Forum & FMBA Alumni Club inaugural meeting.
China has announced that it will try to make its carbon dioxide emissions peak before 2030 and will strive to achieve carbon neutrality before 2060, which is a major commitment for the world. China's realization of this goal is vital to the solution of global climate problems. Whether the development of green finance or the economics of "carbon neutrality" to turn into real green action requires entrepreneurs to play their roles.
How to reduce carbon
emissions? It is necessary to establish the concept of sustainable development
and realizing sustainable development is the biggest social responsibility of
current entrepreneurs. Corporate social responsibility has been very prominent
in the past few years, especially after the outbreak of the pandemic. Entrepreneurs
went into actions wholeheartedly to support the areas hit by the epidemic. And
when the pandemic broke out, entrepreneurs actively resumed production and made
indelible contributions to revitalizing China's economy.
What is corporate social
responsibility? Whether in the fight against the epidemic or in the process of
resuming production, entrepreneurs have fulfilled their corporate social
responsibilities. While creating profits and assuming legal responsibilities to
shareholders and employees, the corporate must also shoulder responsibilities
to various stakeholders, including consumers, society, and the environment.
The concept of
entrepreneurial social responsibility was put forward in the last century and has
been constantly evolving. In the theoretical circle, the entrepreneurial social
responsibility was initially disapproved. In the early 1980s, Milton Friedman
believed that it was enough for enterprises to make money, and that social
affairs should not be managed by companies, which was also the mainstream of American
value at the time. Ten years later, Kenneth Arrow rejected Milton Friedman’s
point of view. He believed that every enterprise in the process of production
and providing products and services to the society would definitely generate
negative spillover effects. For example, agribusinesses produce agricultural
products, but at the same time the chemical fertilizers and water they use will
cause negative spillover effects, so enterprises are accountable for that
effects. At the beginning of this century, Freeman put forward the stakeholder
theory, and the concept of corporate social responsibility has basically taken
shape. Companies are not only responsible for employees and shareholders, but
also for various stakeholders, including responsibility for the environment.
In recent years,
environmental, social and governance (ESG) investment has been included as an
important assessment indicator globally. Many exchanges now require that
companies cannot be listed if they do not meet ESG standards. China's Shanghai
and Shenzhen Stock Exchanges are also actively incorporating ESG factors into
the scope of supervision. The concept of corporate social responsibility was
introduced to China by multinational companies at the beginning of this
century. At present, more than 1,000 listed companies in China disclose ESG,
and we need to increase the level of ESG disclosure.
But objectively speaking, ESG
standards are not very ideal. Many companies cause problems when they are
pursuing benefits, and then perform social responsibilities and use money to
solve the problems afterwards. Impact investment is a higher-level concept on
the basis of ESG. When a company makes decisions, every time an investment
occurs, the company should pay attention to the consistency of economic effects
and social values, and minimize governance costs. In China, we call it social
value investment, which is also known as sustainable development investment. It
is represented by green finance, inclusive finance, social enterprises,
charitable trusts, etc., and they all called sustainable development finance.
The well-known economist
Drucker has many thought-provoking views on social welfare. He pointed out that
enterprises did not exist for their own purposes, but for a special social
purpose and for meeting a special need of the society. Yes, this special
purpose is social value—a purpose of making the world a better place, not just the company’s
own products and services.
China has announced that it
will try to make its carbon dioxide emissions peak before 2030 and will strive
to achieve carbon neutrality before 2060, which is a major commitment for the
world. But there are numerous challenges and difficulties on this road. To
achieve the goal of "dual carbon" means a disruptive energy
revolution, a major technological revolution, and the transformation of the
entire economy and society. The disruptive energy revolution is the
transformation from fossil energy to renewable energy. This challenge is great,
and the transition is very severe.
In terms of technological
breakthroughs, there is a saying in the scientific community that it is
impossible to obtain renewable energy, which is also stable and low-cost. This
is called the "impossible triangle." The main reason is no
breakthrough in technology. Recently, I inspected companies and found that
China was now gradually becoming the world leader in the fields of monocrystalline
silicon and polycrystalline silicon. Therefore, we should be full of confidence
in the field of renewable energy in the future.
The economic transformation
is not only a major industrial revolution, but also involves production methods
and lifestyles, and involves all aspects of society, enterprises, and
individuals. Everyone is closely related to it, and it is a major change in the
industrial revolution and production lifestyle that we are facing.
However, this is not only a
challenge, it will also bring huge development opportunities and multiple
effects to the society. With the continuous improvement of the society's
awareness of "dual carbon", a large number of industries may be
eliminated. But it will also form, reshape, and give birth to many new
industries. "Dual carbon" brings huge opportunities, depending on
whether entrepreneurs can seize it.
The challenge is serious, but
I think Chinese entrepreneurs can meet this challenge. As long as Chinese
enterprises promote entrepreneurship, the difficulties encountered on the road
to sustainable development can be overcome. China's capital market has shown a
trend towards finance for philanthropy and capital for philanthropy, which is
another confidence of mine.
Entrepreneur Ford said that
the difference between a good company and a great company lie in that a good
company can provide good products and services to the society, while a great
company not only provides good products and services, but also endeavors to
make the world a better place. I think this effort is a social responsibility which
will make the world better. We look forward to this wonderful world.