Important events in the ESG field this week include: reports show that the situation in the Arctic intensifies Global warming; Xiaomi debunks rumors of "refusing to hire employees over 35 years old"; the former CFO of McDonald's China joins Bawang Chaji.

Caixin Media continues to pay attention to ESG and the relevant company dynamics, technology research and development, and investment and financing behind it. If you have cases related to Carbon Neutrality, please contact us at the following email: chinastarmarket@cls.cn.

[Hotspot Focus]

Is ESG investment cooling off? The issuance of Global sustainable related Bonds has decreased.

Global warming continues! This year will be the hottest year on record.

Qatar aims to double its LNG production target in a "responsible manner."

How to improve the low recycling rate in the Global textile industry? Six strategic scenarios provide possibilities.

The CEO of DEWA: Dubai is at the forefront of the energy revolution.

[Global Overview]

The report shows that the current state of the Arctic intensifies global warming.

According to the latest report released by the National Oceanic and Atmospheric Administration (NOAA) of the USA, the Arctic region is experiencing significant climate change, with warming rates two to four times higher than the global average. The year 2024 is recorded as the second hottest year in Arctic history, while the melting of permafrost transforms the region from a "carbon sink" to a "carbon source," releasing large amounts of methane and carbon dioxide, further exacerbating global warming.

The report points out that the Arctic ecosystem and natural environment are undergoing profound changes, with continuous reductions in snow cover and sea ice, increasing greening of the tundra, and a significant rise in the number and scale of wildfires. Scientists warn that these changes not only affect the Arctic region but also threaten global ecology and human society through rising sea levels and extreme weather.

Three quarters of the Earth's land is gradually becoming arid due to climate change.

The sixteenth session of the Conference of the Parties to the United Nations Convention to Combat Desertification (COP16) will be held from December 2 to 13 in Riyadh, Saudi Arabia. On the 9th, during the conference, the United Nations released a report stating that approximately three quarters of the world's land is gradually becoming arid due to climate change. The study found that in the 30 years prior to 2020, about 77.6% of the Earth's land became drier than before. Currently, except for Antarctica, arid land accounts for about 40% of the Earth's land area. Moreover, in just the period from 1990 to 2020, the area of arid land globally increased by 4.3 million square kilometers.

[Domestic Dynamics]

The Ministry of Ecology and Environment plans to further clarify the standards and conditions for enterprises applying for special funds for processing discarded electrical and electronic products.

On December 10, the Ministry of Ecology and Environment publicly solicited opinions on the "Notice on the Standards and Conditions for Enterprises to Apply for the Special Fund for the Treatment of Waste Electrical and Electronic Products (Draft for Comments)". It proposed that the application conditions be determined according to the following principles: First, fair competition. There will be no distinction between enterprises that receive subsidies from the original waste electrical equipment treatment fund and new entrants to the market, with uniform application conditions. Second, rewarding excellence and supporting the strong. To ensure that fiscal incentive policies lean towards large-scale quality enterprises while considering regional development disparities, minimum quantity requirements are set, with the requirement for processing enterprises in the western regions being 0.9 million units and the requirement in other regions being 1 million units. Third, a smooth transition. Since 2024 is a policy transition year, the processing quantity in 2024 will be the main factor for the allocation of special funds in 2025. Considering market capacity and the adjustment period of enterprise production and operation, a transition period will be allowed in the requirements for the quantity of applications for special funds in 2025, to set the quantity requirement at 0.5 million units annually.

This year, the consumption upgrade policy has driven the sales of related products to exceed 1 trillion yuan.

According to the Ministry of Commerce, since the beginning of this year, the consumption upgrade policy for consumer goods has driven relevant products sales to exceed 1 trillion yuan. As of December 13, at midnight, the old-for-new car policy has driven the sales volume of Passenger Vehicles to exceed 5.2 million units, of which scrapping and updating accounted for over 2.51 million units, and replacement updates accounted for over 2.72 million units; the old-for-new policy for home appliances has driven the sales of 8 major categories of products to exceed 49 million units; the "refreshing" of home decoration and kitchen and bathroom has driven sales of related products to exceed 51 million pieces; the old-for-new policy for electric bicycles has driven new car sales near 0.9 million units.

Shanghai's "trade-in for new" initiative has driven consumer spending exceeding 10 billion yuan.

According to statistics from the Shanghai Household Appliances Commercial Industry Association, as of December 11, the household appliance and home consumption subsidy activities in Shanghai have achieved significant results, with more than 3.57 million people participating in the old-for-new program for household appliances and home furnishings. The sales of the 8 major categories of household appliances covered by the national subsidies, including Air Conditioner, computers, and Refrigerators, have increased by 30%-40% year-on-year. During the policy implementation period, the total amount of subsidies issued reached 1.165 billion yuan, and various platforms collectively boosted the consumption of household appliance and home products to exceed 10 billion yuan.

This year, the number of applications for old-for-new automotive subsidies has exceeded 5 million.

According to reporters from the Ministry of Commerce, the replacement of old autos with new ones is being actively and orderly promoted, with policy effects accelerating. Data from the Ministry of Commerce shows that as of December 9, the total number of autos replaced nationwide has exceeded 5 million, including over 2.44 million scrapping updates and over 2.59 million replacement updates. In November, domestic passenger vehicle retail sales reached 2.423 million units, an increase of 16.5% year-on-year, with growth accelerating by 5.2 percentage points compared to October. From January to November, passenger vehicle retail sales totaled 20.257 million units, a year-on-year increase of 4.7%. In November, retail sales of domestic new energy passenger vehicles reached 1.268 million units, a year-on-year increase of 50.5%, accounting for 52.3% of the total domestic passenger vehicle retail sales. From January to November, retail sales of domestic new energy passenger vehicles totaled 9.594 million units, an increase of 41.2% year-on-year. In November, 1.032 million scrapped autos were recovered nationwide, a year-on-year increase of 141.6%. From January to November, nationwide recovery of scrapped autos reached 6.878 million units, an increase of 64.6%.

Promote the vigorous development of digital consumption, green consumption, and healthy consumption.

Yang Wei, Deputy Director of the Consumption Promotion Department of the Ministry of Commerce, said during the "China Economic Round Table" large-scale multimedia interview program that in the next step, the Ministry of Commerce will promote the implementation of the old-for-new policy for consumer goods in detail, allowing more consumers to gain real financial benefits; hold various activities that integrate business travel, culture, sports, and health; actively promote the first economy, vigorously develop digital consumption, green consumption, and healthy consumption; take multiple measures to improve consumption conditions, deepen the cultivation and construction of international consumer center cities in urban areas, promote the renovation of pedestrian streets and commercial facilities, and upgrade business formats to enhance urban consumption capacity; in rural areas, deepen the three-year action plan for county commercial construction, and implement the high-quality development project of rural e-commerce to make consumer purchasing more convenient for rural residents.

[Industry Trends]

Xiaomi debunks rumors of "refusing to hire employees over 35 years old".

Recently, a netizen posted a video on social media claiming that a certain domestic mobile phone brand in Hong Kong refused to hire employees over 35 years old, which sparked heated discussions. In response, on December 11, Xiaomi's public relations department general manager Wang Hua issued a statement to debunk the rumor, stating that the company does not have such a hiring restriction. Wang said, "I heard that some people are sharing this video to slander Xiaomi, and last month I specifically asked the HR director to confirm three facts. First: The video mentions that only short-term contracts are offered, we offer all long-term contracts. Second: The video mentioned age restrictions, we have no such restrictions. Third: The person in the video is likely a headhunter, we do not use headhunters for positions in Hong Kong."

Starbucks China establishes the position of CGO (Chief Growth Officer) for the first time.

Recently, Starbucks China established the position of CGO (Chief Growth Officer) for the first time and hired Yang Zhen, who has extensive experience in digital marketing, as the head of user development from Extreme Motor.

In response, Starbucks officially stated that China is Starbucks' largest international market and an important engine for the company's future growth. The establishment of the CGO position will continue to strengthen Starbucks' coffee leadership, accelerate coffee-centric product innovation, and better renew the Starbucks experience for customers at various touchpoints through integrated marketing strategies, driving the sustainable development of the Starbucks brand in China.

The former CFO of McDonald's China joins Bawang Chaji.

According to media reports, Huang Hongfei, the former CFO of McDonald's China, will join the mainland tea drink shop Bawang Chaji, indicating that the listing process of Bawang Chaji is expected to accelerate. On October 14 of this year, Huang Hongfei left McDonald's China, and after a brief rest, he will join Bawang Chaji. Reports also indicate that the founder of Bawang Chaji, Zhang Junjie, is undergoing a round of 'executive team upgrades' to enhance the operational model, supply chain, digital system, and other aspects of Bawang Chaji's future stores.

Chen Xiangdong establishes the Beijing Gaotu Public Welfare Fund.

On December 10, the Beijing Gaotu Public Welfare Fund was officially established. During the event, the Beijing Gaotu Public Welfare Fund signed a strategic cooperation agreement with the Beijing Normal University Education Foundation, and both parties will fully leverage their respective advantages to carry out close cooperation in areas such as rural teacher training and educational resource sharing, aiding the public welfare cause of education to reach new heights.

It is understood that the Beijing Gaotu Public Welfare Fund was initiated and funded by Chen Xiangdong, the founder, chairman, and CEO of Gaotu Education Technology Group (hereinafter referred to as 'Gaotu'). The registered capital of the fund is 8 million yuan, all coming from Chen Xiangdong's personal donations.

The creative director of a brand under the Kering Group joined Chanel after leaving.

On the evening of December 12, local time, the French luxury giant Kering Group announced the departure of Matthieu Blazy, the creative director of its brand Bottega Veneta. At the same time, Chanel announced the appointment of Matthieu Blazy as the new creative director, who will be responsible for all haute couture, ready-to-wear, and accessory lines for Chanel.

[ESG report evaluation]

In 2024, the disclosure rate of ESG reports for listed companies reached 42%.

This year, under the guidance of the China Securities Regulatory Commission, the A-share Shanghai and Shenzhen North Exchanges issued guidelines for listed companies' ESG reports, which took effect on May 1, marking the arrival of a strong disclosure era for ESG in A-shares. It was reported that over 2,200 ESG reports have been disclosed this year, with a disclosure rate of 42%. We predict it will reach 60% next year, 80% the year after, and in 2 to 3 years, there will be comprehensive coverage of ESG reports.