[China-Global-Info] CLASII --Handbook on Chinese Environmental and Social Guidelines for Loans and Investments Abroad: A Guide for Local Communities
ENWLine
The China-Latin America Sustainable Investments Initiative (CLASII) is pleased to present the Third Edition of the "Handbook on Chinese Environmental and Social Guidelines for Loans and Investments Abroad: A Guide for Local Communities." This Handbook provides information on 19 Chinese environmental and social guidelines, practical advice on how to use them, and an address book with general contact information of relevant Chinese and international entities.
Although most of Chinese guidelines are general and non-binding, they show that China recognizes that its enterprises have a role in avoiding and minimizing the negative impacts of their investments outside of China. The Guidelines appeared in the mid-2000s, and their content has been improving over time. Some examples are: the Green Credit Directive (2012) that states that banking institutions must ensure that due diligence is “complete, thorough and detailed”; the Guidelines for Social Responsibility in Mining Investments Abroad (2014) states that mining companies must respect the free, prior and informed consent of local communities affected by new operations; the Environmental Risk Management for China’s Overseas Investments guideline (2017) notes that the quantitative analysis of environmental costs and benefits must be part of an investment decision-making process; and the Standardization of Banking Services Enterprises to Go Out and Strengthen the Guidance of Control and Risk Prevention (2017) that urges Chinese companies to establish a complaint response mechanism.
Further, when allocating responsibilities to Chinese entities and promoting social participation, the Chinese guidelines challenge at least 3 generalized presumptions that have undermined the chances for civil society organizations to demand better environmental and social performance from Chinese entities. These presumptions are: (i) that Chinese banks and companies do not have environmental and social standards to follow; (ii) that Chinese entities only engage with host country government agencies following the “non-interference principle” which constitutes a fundamental pillar of Chinese foreign policy; and (iii) the “deferential approach” which means that Chinese companies and banks focus exclusively on compliance with host-country laws without considering any additional commitment of their own.
Undoubtedly, having Chinese environmental and social guidelines has not meant yet that Chinese projects are better managed. Currently, the Chinese guidelines are only on paper. For this to change, social organizations must know them and request their full implementation. This Handbook is a tool to help advocates to reach these objectives.
CLASII thanks the generous support of the Charles Stewart Mott Foundation to carry out this project and of the Heinrich Boell Foundation for supporting the translation of the Handbook into English.
You can click here to access the Handbook online or download the attached PDF version.
Very
best,
Paulina
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Date: Tue, Dec 18, 2018 at 12:49 PM
Subject: [China-Global-Info] CLASII --Handbook on Chinese Environmental and Social Guidelines for Loans and Investments Abroad: A Guide for Local Communities