Sustainable Investment in China 2009

Over the past three decades, China has made remarkable strides in economic development, maintaining a GDP growth average of nine percent a year and lifting more than 400 million people out of poverty. China is determined to ensure the sustainability of its economic and social development as it enters the 21st century, which it envisions in terms of a "harmonious society."

To this end, sustainable investment has an important role to play, not only as a means of risk mitigation for the financial system, but also as a powerful lever for influencing corporate behavior and helping to improve environmental, social and governance (ESG) performance. Although the potential of sustainable investment as a positive force for broader economic performance appears relatively underdeveloped, there are encouraging cases showing that a small number of market pioneers and innovators are exploring ways to integrate ESG factors into investment. These investors are inventing homegrown methodologies which align with material issues at the country level.

This report, which focuses on the SI Market in China, has been commissioned by the International Finance Corporation (IFC) and prepared by BSR.