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Empower
 Businesses'
 Sustainable
 Development

VISION

Move beyond compliance
Unlock ESG's transformative power
with a uniquely Chinese approach

Lead the way in going beyond compliance, unlocking ESG's transformative power for a sustainable future that aligns with the unique value propositions of Chinese customers.
WHAT IS ESG?
The core of ESG is about developing business strategies that do not solely aim at profit maximization but create competitive advantages through sustainable products or services without compromising stakeholders' needs. It is not just about getting higher ratings or generating ESG reports.

Environment

Social Responsibility

Governance

1980s ESG Rating Began In the 1980s, ESG ratings by 3rd party agencies were used by U.S. investors to screen companies for capital investments.
2006 ESG Investment Principles In 2006, the United Nations Global Compact (UNGC) and the United Nations Environment Program (UNEP) Sustainable Finance Initiative jointly launched the "Principles for Responsible Investment" (PRI) integrating ESG at the New York Stock Exchange.
WHAT IS COMPLIANCE?

Move Beyond Compliance

01

Base Frameworks of Sustainability

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02

EU Taxonomy aims for sustainability reporting

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03

China Sustainability Regulatory Framework

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BASE FRAMEWORKS OF SUSTAINABILITY

The Triple Bottom Line Principle

The triple bottom line of sustainability (TBL model, Elkington, 1994) is the fundamental framework for understanding sustainable development. It considers and advocates balanced approach of environmental (planet), social (people), and economic aspects (profit).
PEOPLE
PLANET
PROFIT

People

-

Social

Planet

-

Environmental

Profit

-

Economic

BASE FRAMEWORKS OF SUSTAINABILITY

The UN's Sustainable Development Goals

1 NO
POVERTY
2 ZERO
HUNGER
3 GOOD HEALTH AND WELL-BEING
4 QUALITY EDUCATION
5 GENDER EQUALITY
6 CLEAN WATER AND SANITATION
7 AFFORDABLE AND CLEAN ENERGY
8 DECENT WORK & ECONOMIC GROWTH
9 INDUSTRY, INNOVATION, AND INFRASTRUCTURE
10 REDUCED INEQUALITIES
11 SUSTAINABLE CITIES AND COMMUNITIES
12 RESPONSIBLE CONSUMPTION AND PRODUCTION
13 CLIMATE
ACTION
14 LIFE BELOW WATER
15 LIFE ON
LAND
16 PEACE, JUSTICE AND STRONG INSTITUTIONS
17 PARTNERSHIPS FOR THE GOALS
2015 Signing of SDGs In 2015, 193 countries, including China, signed the 2030 United Nations Sustainable Development Goals (SDGs). Since then, the political establishment has moved the SDGs from non-mandatory to mandatory, with a clear call on the global business and private sectors to drive the SDGs to success. The 17 Sustainable Development Goals set out a clear framework for the sustainable development of countries and enterprises.
2016 China Adopts Sustainability Concept In 2016, the Ministry of Foreign Affairs of China announced that China, as the second largest economy, will pursue coordinated development in economic, political, cultural, social, ecological, and other fields guided by the concept of innovative, green, and low-carbon development.
BASE FRAMEWORKS OF SUSTAINABILITY

ESG & Triple Bottom Line - Comparison

ESG

Click to Toggle

TBL

ESG

TBL

Similarities:

Both ESG and TBL emphasize a balanced approach to a company's sustainable development.

Differences:

ESG is closely linked to third-party ratings and investment decisions, while TBL is a more academically accepted model for business sustainability.

E

S

G

E

Environment

Social

Governance

Economy

12 RESPONSIBLE CONSUMPTION AND PRODUCTION
13 CLIMATE
ACTION
14 LIFE BELOW WATER
15 LIFE ON
LAND
1 NO
POVERTY
2 ZERO
HUNGER
3 GOOD HEALTH AND WELL-BEING
4 QUALITY EDUCATION
5 GENDER EQUALITY
6 CLEAN WATER AND SANITATION
10 REDUCED INEQUALITIES
11 SUSTAINABLE CITIES AND COMMUNITIES
16 PEACE, JUSTICE AND STRONG INSTITUTIONS
7 AFFORDABLE AND CLEAN ENERGY
8 DECENT WORK & ECONOMIC GROWTH
9 INDUSTRY, INNOVATION, AND INFRASTRUCTURE
17 PARTNERSHIPS FOR THE GOALS
BASE FRAMEWORKS OF SUSTAINABILITY

The EU Taxonomy Aims to Standardize Sustainability Reporting

The EU Taxonomy standardize sustainability reporting and support the SFDR and CSRD.

The EU framework can indirectly influence European and Chinese firms in China due to:
  • Pressure to align with global ESG standards.
  • The EU Corporate Sustainability Due Diligence Directive (CSDDD), approved on 24th May, 2024, requiring supply chain sustainability.
EU Taxonomy Regulation
Labelling
  • EU Green Bond Standard (EuGB)
  • EU Climate Benchmarks Regulation
  • EU Ecolabel
Provide the foundation for sustainable labelling systems
Sustainability disclosure regime
  • Sustainable Finance Disclosure Regulation (SFDR)
  • Corporate Sustainability Reporting Directive (CSRD)
    • Doubke Materiality Approach: it is obligatory for companies in the EU to report on the impact of corporate activities on the environment and people as well as how these impacts influence the financial position of the company. (GRI-double-materiality-final, p. 5 - 6)
  • The EU's revised MiFID II and IDD, effective as of August 2, 2022, impact how investment advisers and insurance firms in the EU integrate the sustainability preferences of their clients and policyholders.
  • The Markets in Financial Instruments Directive (MiFID II) and Insurance Distribution Directive (IDD)
Focus Corporate Culture on Sustainability and Resilience
Corporate Governance
  • Sustainable Corporate Governance Initiative (SCGI)
  • Focus corporate strategies on long-termism
    • Two elements: Due diligence and directors' duties
    • Commission proposal expected mid-February 2022
Disclose reliable, consistent and comparable ESG data to the market
Source: https://corpgov.law.harvard.edu/2022/04/04/eu-taxonomy-and-the-future-of-reporting/

Adapted with the newest development
BASE FRAMEWORKS OF SUSTAINABILITY

The China Sustainability Regulatory Framework

China's first Environmental, Social, and Governance (ESG) disclosure guideline has been issued by China's State Council-backed think tank, China Enterprise Reform and Development Society (CERDS), and several major Chinese firms, including Ping An Insurance Company. Called "The Guidance for Enterprise ESG Disclosure", it covers all industries and companies. Compliance with the Guidance is currently voluntary, but it serves as a starting point for Chinese companies to explore ESG standards developed in a local context. The Guidance adapts ESG standards to suit China's business landscape and unique social welfare system. It uses a flexible approach applied in other Asian jurisdictions such as Hong Kong and Singapore, which initially adopted a "comply or explain" approach before moving to more prescriptive or mandatory regimes. Broader, mandatory ESG reporting is likely on the horizon in China.
ESG'S TRANSFORMATIVE POWER

We Help You Transform - Our Transformation Packages

Low Company ESG / Sustainability Maturity High
Comply with laws, standards, regulations etc.
search 1. Compliance Review & Risk Verification
Manage greenhouse gas (GHG) emissions and Other environmental KPIs. Scope 1 + 2 Scope 3 recycle 2. End-to-End Carbon Mgmt. Platform
Define/adjust company strategy integrating ESG/Sustainability with clear targets.
stakeholders 3. Identify Key Stakeholders & Material Topics
Transform to deploy sustainable strategy with the right governance and culture.
gear 4. Set up the Right Governance & Culture
Create competitive advantages using sustainable products/solutions.
circut 5. Create Sustainable Competitiveness
CorpESG
M2

Deliverables:

  • GHG protocol, ISO14064/67 training.
  • Organizational Carbon Footprint (OCF): single entity Scope1-3 OCF report.
  • Product Carbon Footprint(PCF): Ecoinvent 3.9 Quant Studio, pilot single product OCF calculation, modelling.
  • Carbon reduction proposal and planning.
Lead Time (Working Days): 60
CorpESG (Man Days): onsite 2 + remote 10

Your Return

  • Save company ESG labor costs: average CNY 400,000-600,000 per year.
  • Save your time: Due to the lack of comprehensive ESG talents in the market.
  • Government subsidies.
CorpESG
M3

Deliverables: M2+

  • Key Stakeholders Material topics, review ESG-integrated company strategy & action plans.
  • Identify climate risks and opportunities, qualitative + quantitative scenario analysis.
  • Improve CDP/EV/SBTi/MSCI
Lead Time (Working Days): 250
CorpESG (Man Days): onsite 7 + remote 30
(onsite include 2 days company management level workshops)


Your Return

  • Green investment brought about by improved ESG ratings.
  • Government subsidies.
CorpESG
M5

Deliverables: M2+ M3+

  • Sorting out existing competitive advantages and sustainable core competitiveness.
  • Co-create corporate ESG governance mechanism and talent plan.
  • Review and adjust company's brand strategy.
  • Company ESG transformation management.
  • Company ESG cultural integration.
  • Team Diagnostic Assessments + action plans.
Lead Time (Working Days): 250
CorpESG (Man Days): onsite 19 + remote 30
(onsite include 8 days management level workshops)


Your Return

  • Build high-performing teams, improve mutual trust, effective communication and constructive interactions between teams.
  • Establish aligned goals and culture to help implement company ESG strategies.
  • Improve sustainable core competitiveness of products and services, increase brand value.
CHINESE APPROACH

What does Chinese Approach mean for your business?

Chinese Approach Visual
  • Geopolitical tension might impact your business
  • Different societal focuses
  • Consumers' values and behaviors are very different
We know both markets and cultures!
OUR TEAM

Who we are?

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>
KellyXu

Kelly Xu 徐琦

Kelly has 20 years of experience with industrial MNEs in Germany and China. She has proven records of loss business turnaround, cultural transformation, successful joint venture establishment, business activities refocus, and de-risking. Since 2021, she has also become a part-time researcher of companies' sustainable development in China.
  • Working Experience: She started her career in finance and control in Germany. She continued in China, holding diverse leadership positions as China and APA Controlling Director, Commercial Plant Manager, Strategy VP, and regional CFO. Her expertise also covers tax, treasury, internal control, HR, IT, and supply chain management.
  • Industry Knowhow: She has worked for companies in diverse industries, including mobile and industrial hydraulics (pumps, motors, valves, hydraulic systems), automotive components, and consumer goods (outdoor scooters and kids' wear).
  • Coaching & Mentoring: A passionate believer and practitioner of coaching-style leadership, she has coached and mentored many leaders (German and Chinese) to build highly productive and positive teams. As a certified Team Coach, she coached different management levels, including shopfloor team leaders. She also facilitated complex international project Kickoffs and strategy workshops.
  • Culture & Languages: She has strong communication skills and is an expert in Sino-German culture. She is proficient in German, English, and Chinese.
FredaZhang

Freda Zhang 张丽娜

Freda has 20 years of senior management experience in multinational brands. She has successively served as President of East Asia for Intelligent IKEA's global product supply chain and as Commercial President of IKEA Retail China. She is one of the first batch of local leaders trained by IKEA in China.
  • She has led and participated in many global business strategic changes and organizational capability transformations of IKEA. During the transformation and upgrading of the global product supply chain, she has deeply led the ESG and green industry capability transformation of IKEA's East Asian supply chain enterprises, as well as the international industrial layout of supply chain enterprises, accompanying and empowering them. The growth, listing, and global expansion process of multiple industry chain companies.
  • During her tenure at IKEA Retail, she led the omnichannel retail transformation and market expansion of China's retail industry and the future strategic upgrade of the IKEA brand in the Chinese market.
  • She once served as a managing partner in Vanke Development and Operations Headquarters and participated in the construction of a lean system for the product supply chain of Vanke Real Estate Headquarters. She also provided expert consultancy for sustainable material technology investment projects of well-known private equity funds in the United States and Europe.
MichaelFeng

Michael Feng 冯雷

  • Michael Feng is a professional and superior trainer, facilitator and coach. He provided training and facilitation services to over 10,000 participants in over 300 companies, teams, NGOs and business schools, all within a period of 26 years.
  • Michael has been instrumental in the development and implementation of numerous high-level projects for multinational companies such as Nokia (leadership coaching), Elcotaq (performance management set up), HP (change management) and Maersk (building company culture), Reed Elsevier (strategy clarification and decoding) . Other clients of his include IBM, Nokia, Ericsson, Philips, Motorola, Maersk, Siemens, HP, Lucent, Coca‐Cola, TNT, Schneider, Reuters, Shell, Nortel, Oracle, OTIS. He also speaks on occasion on a variety of management topics in top Chinese universities.
  • Michael's experiential training is very popular and easily accepted by participants of his programs because of its inspirational, interactive and practical nature. Michael is a student of new and innovative learning methods, and strives to incorporate fresh, stimulating ideas into every program he designs and delivers. He has a wealth of knowledge in a range of training techniques and assessment tools including iePROfiler, MBTI, Belbin Team Theory and NLP.
  • Michael is an agile learner with a passionate and infectiously inspirational spirit. He graduated from Hertfordshire University in Britain. He is the first certified china CPF from IAF and wrote a book “Communication with gamification”.
RamanChen

Raman Chen 陈龙

  • Graduated from the Department of Materials Science of Fudan University, he has served the world's top 100 and the world's leading technology and service providers for 19+ years as the senior director of the Group's Asia Pacific Operations Center of Excellence, led 30+ + operational excellence experts and senior consultants, and the annual internal and external business revenue of the group is 30 million +.
  • With a solid background in manufacturing excellence and a multinational and cross-industry vision, he has many years of experience in leading different functions and different business units to promote strategy and implement end-to-end changes, especially in the field of digital intelligence and business model innovation.
  • Fudan University School of Management, Shanghai Jiaotong University Antai "Career Mentor Award", manufacturing excellence in operation coach.
CONTACT

Get In Touch

Want to contribute to German companies' sustainable growth in China?

Participate in my research project*!

Engage in a fruitful discussion about your company's sustainable development strategy in China and gain valuable insights into the challenges and cultural issues. As a participant, you will have free access to the comprehensive research data and results!

This opportunity is limited to only 30 German companies in China! Contact now: qi.xu@munich-business-school.de

Want to know how ESG can contribute to your company's sustainable growth?

We help business leaders navigate the complex ESG landscape and identify your business' material topics to meet sustainability disclosure requirements. Most importantly, we go beyond regulatory requirements and empower your business to seize strategic opportunities tailored to China's context and drive positive changes.

For details, please refer to "Chinese Approach".
Book a free consultation with us! Contact now: ESG@CorpESG.com
*Research Project: German Companies' Sustainable Development in China - a Maturity Model. Sheffield Hallam University and Munich Business School have approved and finance this research project. (Ethics Review ID: ER52950172).