Highlights of Exploring the Future of ESG: 2025 Q2 Trends in China and Beyond

On the morning of 27 June, BritCham Shanghai’s ESG Committee hosted an insightful roundtable discussion, “Exploring the Future of ESG: 2025 Q2 Trends in China and Beyond”, at the Chamber Office.

The roundtable commenced with a warm welcome from the Executive Director of BritCham Shanghai, Stuart Dunn. The session brought together ESG professionals and industry leaders to dissect policy shifts, technological innovations, and operational challenges shaping the ESG landscape.

Key Takeaways

1. China’s ESG Policy: Gradual Expansion Amid Economic Realities

• Participants noted that whilst ESG is no longer a top policy priority in China, it remains embedded in long-term goals like the dual-carbon targets.
• The carbon emissions trading system is being expanded to include steel, cement and electrolytic aluminum sectors.
• Local initiatives, such as Suzhou Industrial Park’s green subsidies for net-zero transitions, highlight regional efforts to align with global ESG standards whilst supporting local businesses.

2. Technology & Energy Transition: Hydrogen vs. Electric

• Electric vehicles (EVs) dominate China’s passenger vehicle market, but hydrogen emerged as a debated alternative for heavy industries (e.g., mining, long-haul lorries), where EV adoption faces practical hurdles like charging time and energy density.
• Cost barriers and infrastructure gaps remain critical challenges for hydrogen scalability, though China’s cost-competitive advantage could accelerate commercialisation.

3. Corporate ESG Strategies: From Compliance to Value Creation

• Multinationals are increasingly linking ESG to profitability, particularly in supply chain efficiency and EU-China regulatory alignment.
• CSR evolution: Companies like Haleon shared case studies on integrating ESG into core business (e.g., eco-friendly packaging, health literacy programmes), whilst NGOs like Shanghai Sunrise emphasised the need for strategic, localised philanthropy to maximise impact.

Looking Ahead

The roundtable concluded with consensus: ESG remains a long-term imperative, demanding collaboration, innovation and measurable outcomes. BritCham Shanghai extends thanks to all participants and invites members to continue shaping ESG dialogues through its platforms in 2025.

Stay engaged as we drive these critical conversations forward.

Please click here to learn more about the Chamber’s ESG committee.