AB: China''s State-Owned Enterprises Hold Keys to Carbon Neutral
NORTHAMPTON, MA | ACCESSWIRE | September 23, 2022 | AllianceBernstein ESG in Action China has pledged to reach carbon neutrality by 2060, and state-owned enterprises (SOEs) are responsible for half the country''s CO 2 emissions. Yet SOEs are also major players in China''s renewable and other low-carbon energy industries. It''s important for investors to understand the ecosystem in which SOEs operate to gain insight on the macro and microeconomic challenges that will determine whether China''s long-term carbon-neutrality plans are successful. The Issue SOEs account for half the country''s emissions and are an integral part of the carbon-neutrality equation. Market-based incentives for green reform such as carbon taxes may not work as effectively in the Chinese context. The Investment Case Understanding how SOEs fit into China''s green reform agenda can help investors identify companies that are driving change-and stand to benefit from efforts to combat climate change. Engagement Goals Discussions with management teams of SOEs and private companies in China help provide insight into ESG behavior.
AB: China''s State-Owned Enterprises Hold Keys to Carbon Neutral
NORTHAMPTON, MA | ACCESSWIRE | September 23, 2022 | AllianceBernstein ESG in Action China has pledged to reach carbon neutrality by 2060, and state-owned enterprises (SOEs) are responsible for half the country''s CO 2 emissions. Yet SOEs are also major players in China''s renewable and other low-carbon energy industries. It''s important for investors to understand the ecosystem in which SOEs operate to gain insight on the macro and microeconomic challenges that will determine whether China''s long-term carbon-neutrality plans are successful. The Issue SOEs account for half the country''s emissions and are an integral part of the carbon-neutrality equation. Market-based incentives for green reform such as carbon taxes may not work as effectively in the Chinese context. The Investment Case Understanding how SOEs fit into China''s green reform agenda can help investors identify companies that are driving change-and stand to benefit from efforts to combat climate change. Engagement Goals Discussions with management teams of SOEs and private companies in China help provide insight into ESG behavior.