On September 20, 2022, the Macro-Finance Salon (No. 190) was held online. This event was co-hosted by the International Monetary Institute (IMI) and the Department of Monetary Finance, School of Finance, Renmin University of China (RUC). Several financial experts were invited to discuss green finance and ESG. Gao Haoyu, Associate Professor, School of Finance, RUC, delivered a keynote speech. Mei Dewen, President, Beijing Environment Exchange, Sun Mingchun, Chief Economist, Haitong International Securities Group Limited, Tang Yongjun, Professor, HKU Business School, Chief Editor of International Review of Finance and Tu Yonghong, Deputy Director of IMI, and Dean of Yangtze River Economic Zone Research Institute, RUC, participated in the seminar. The salon was presided over by Zhao Xijun, Co-Dean, Academy of China Capital Market, RUC.

Associate professor Gao Haoyu gave a speech on green finance and ESG investing. He pointed out that green finance is essential for economic growth to shift from high-speed to high-quality, as is mentioned in the 14th Five-Year Plan and Long-Range Objectives Through the Year 2035. Academic studies on corporate green finance mainly focuses on two questions: how the financial market prices the environmental risks of businesses and how environmental risks impact corporate investment and financing. In addition, green credit, green bonds and ecological legal guarantee are also topics of concern. Studies on ESG (Environmental, social, corporate governance) focus on the profitability of ESG investment strategies and how ESG enhances enterprise value.

In the future, green finance and ESG should be promoted in the following four ways. First, shift from the single-product pattern to multi-product collaboration. There should be diversified products such as green bonds, green funds, green insurance, and carbon emissions trading instead of fixing eyes on green credit. Second, move from policy support to market selection. Social capital should be encouraged and guided to take the initiative in green transformation; Supporting infrastructure related to carbon assets, carbon business and carbon finance should be improved; A market-led and policy-guided ESG driving mode for businesses should be put in place. Third, a mechanism of green assessment and risk management should be established. We should clarify the green financial responsibility of banks and insurance institutions; Upholding the principle of prioritizing stability while pursuing progress, we should strive to enhance the level of green financial management of businesses and financial institutions. Fourth, guarantees and norms of market infrastructure should be established. We should regulate the standards and evaluation systems of green disclosure and green auditing; We should promote rule of law in ecological sense by building a compensation system for ecological and environmental damage and making it a long-term mechanism.

    Later, the guests had a comprehensive discussion on the keynote speech and relevant questions. During the discussion, they expressed their views on major policies, corporate economy and the economic impact of green finance and ESG.