1. Chinese Firms and Adherence to Global Environmental, Social and Governance (ESG) Standards in Developing Countries: Is there Potential to Create Common Ground?
- Author:
- Mike Morris
- Publication Date:
- 01-2023
- Content Type:
- Working Paper
- Institution:
- German Institute of Development and Sustainability (IDOS)
- Abstract:
- This paper focuses on analysing how Chinese firms operate in Latin America, Asia and Africa in regard to ESG (environmental, social and governance) standards and sustainability issues. How do they respond to the increasing global value chain requirement to incorporate and maintain ESG standards? Is their space for an alignment between Western development cooperation ESG policies, frameworks, strategies and practices and Chinese political and economic stakeholders in the developing world? The paper uses a variety of case studies covering Chinese firms (disaggregated into SOEs (state-owned enterprises) and large, medium and small private sector firms) operating in various sectors in countries across the developing world. It uses a three dimensional framework to analyse different types of Chinese firms in terms of value chain operations covering many of the ESG standards they are required to meet: 1. Supply chain relations (i.e. approach to supporting upgrading of local suppliers); 2. Internal firm processes (i.e. approach to local labour, training and upskilling); 3. Social licence to operate (i.e. approach to meaningfully engaging with local communities taking account of their social and economic needs).
- Topic:
- Development, Environment, Governance, Business, and Supply Chains
- Political Geography:
- Africa, China, Asia, and Latin America