Giving Compass' Take:

• SynTao highlights trends that will impact corporate social responsibility (CSR) in China in 2020. 

• How can funders support businesses transition to responsible and sustainable practices? 

• Read about a model for CSR.

Trend One: New Starting Point

The year of concluding the Three Critical Battles and preparing next 5-Year-Plan

2020 is a year of succession. This year is a key year to achieve the goal of building a moderately prosperous society in all respects and to fulfill the first hundred-year goal of the two-hundred-year goals of the great rejuvenation of the Chinese nation. 2020 is also the final sprint of the 13th Five-Year Plan and the Three Critical Battles.

2020 is the beginning of several tasks: 46 cities in the mainland will have new waste sorting programs; country requires an indicator system for construction of zero-waste cities; the Hong Kong Stock Exchange’s ESG reporting guide will be implemented in the fiscal year after July 1; domestic capital market is expected to begin to force A-share companies to disclose environmental information. Internationally, the Paris Agreement has also reached a critical point, where the contracting parties must set the 2030 emission reduction target by the end of this year.

Trend Two: New Image

Communicating Chinese stories by supporting UN SDGs

The United Nations Sustainable Development Goals (SDGs) has entered the fifth year, and the focus will shift from awareness-raising to implementation and experience sharing. Chinese government supports SDGs. Sino-US trade frictions will not weaken China’s standing but stimulate China to play a more active role through UN platform. China’s experience in poverty eradication and environmental governance is meaningful for developing countries.

The Belt-and-Road Initiative (BRI) is also a platform for telling Chinese stories. In 2020, BRI will continue growing with more projects being implemented. How can Chinese overseas investment integrate SDGs? How can Chinese companies improve their capabilities on issues such as supply chain responsibility management, community engagement, employee volunteers, and transparency? All these are linked to the global image of Chinese investment and will attract more attention from Chinese government and companies.

Trend Three: New Rural Areas

Building a sustainable model for eliminating relative poverty

After the goal of building a moderately prosperous society in 2020 has been achieved, China will eliminate absolute poverty under current standards, but relative poverty will continue to exist for a long time. President Xi has pointed out, “Now poverty alleviation measures for absolute poverty should be gradually adjusted to daily assistance measures for relative poverty and be integrated into the strategic framework for rural revitalization.”

2018-2022 Strategic Planning for Revitalization of Rural Areas provides a policy framework for work in the next three years. The overall requirements are industrial prosperity, ecological livability, rural customs and civilization, effective governance, and affluent life. China is stepping up to achieve a comprehensive rural revitalization including industrial revitalization, talent revitalization, cultural revitalization, ecological revitalization, and organizational revitalization.

Read the full article about CSR in China by SynTao at Singularity Financial Limited.