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THIS MATERIAL IS A MARKETING COMMUNICATION.

ESG Monthly (January 2022)

This month’s highlights:

Nuclear and gas included in EU Taxonomy; China’s steel carbon reduction targets delayed; Singapore revises carbon tax rates; Mirae Asset’s ESG Insights on eco-conscious young consumers.

Commentary on ESG news and developments:

Globally…

  • In the European Union (EU), the EU Commission officially included nuclear and gas power as part of the EU Taxonomy despite controversial opinions amongst European countries (Euractiv, February 2022).
  • In the EU, the EU securities regulator European Securities and Markets Authority (ESMA) launched a consultation to review the landscape and market characteristics of ESG rating providers operating in the EU (ESMA, January 2022).
  • In the World Economic Forum (WEF)’s 2022 Global Risks Report, climate action failure, extreme weather events, and biodiversity loss and ecosystem collapse came top three within the top 10 global risks ranked by severity for the next 10 years (WEF, January 2022).

In Asian Pacific markets…

  • In China, the Ministry of Industry and Information Technology (MIIT) and two other regulators pushed back the carbon peaking deadline for the steel industry from 2025 to 2030 (Caixin, February 2022).
  • In China, the Beijing Winter Olympics – which China had said would run solely on green electricity in effort to make the event carbon neutral – has accelerated the development of renewable energy infrastructure in the co-host city Zhangjiakou (Carbon Brief, February 2022).
  • In Singapore, the Singapore government announced plans to revise its carbon tax rates for 2024 and will announce revisions in its 2022 Budget in mid-February (Straits Times, January 2022).
  • In India, the Securities and Exchange Board of India (SEBI) released a public consultation paper on regulating ESG rating providers in order to address risks of greenwashing and to reduce ambiguity due to the lack of clear and consistent methodologies (SEBI, January 2022).

ESG Insights from Mirae Asset:

Understanding young consumers – sharing insights from a survey conducted by Credit Suisse on 10,000 consumers across 10 developed and emerging countries…

  • Generation Z and millennials currently account for 54% of the global population, and when it comes to their contribution to consumer spending, their share is expected to rise from 48% in 2020 to 68% by 2040.
  • A recent market survey found 80% of young consumers prioritise sustainable products in their purchases as much as possible.
  • In developing countries like China and India: more than 15% of respondents said that they buy sustainable products for all their purchases. Particularly for passenger cars, more than half of young consumer respondents in China say they already own electric or hybrid electric cars).
  • In developed countries like France, Germany and the USA: survey responses suggest young consumers seem generally less engaged with the topic of sustainability, showing relatively less willingness to pay for sustainable products or intent to change their personal lifestyles compared to those in developing countries.

Source: Credit Suisse Research, Mirae Asset analysis, January 2022

AUTHORED BY
Holly So, CFA
ESG Specialist

Date
March 09, 2022

Category
Article

Staying Ahead with Mirae Asset’s Latest Insights

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