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LEGAL MANUAL ON CHINESE ENVIRONMENTAL AND SOCIAL GUIDELINES FOR FOREIGN LOANS AND INVESTMENTS

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LEGAL MANUAL ON CHINESE ENVIRONMENTALAND SOCIAL GUIDELINES FOR FOREIGN

LOANS AND INVESTMENTS:

Paulina Garzón

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LEGAL MANUAL ON CHINESE ENVIRONMENTALAND SOCIAL GUIDELINES FOR FOREIGN

LOANS AND INVESTMENTS:

Paulina Garzón1

Centro de Derechos Económicos y Sociales

1 Master in Public Policy (John F. Kennedy School of Government, Harvard University) and Co-Founder of CDES.

A Guide for Local Communities


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Legal Manual on Chinese Environmental and Social Guidelines for Foreign Loans and Investments:A Guide for Local Communities

Second Edition, March 2015English language version, September 2015 Centro de Derechos Económicos y Sociales, CDESRumania E5-110 y HungríaQuito-Ecuador ISBN: 978-9978-334-07-2 Author: Paulina Garzón Cover photo: Paulina Garzón Design and Layout: SERGRAFIC

Partial or complete reproduction of this book, its information, or its transmission in any form - electronic, mechanical, photocopying or otherwise - is permitted with the simple indication of the source and author.

This publication presents the views of the author, and not necessarily the view of the Rainforest Foundation Norway or the Charles Stewart Mott Foundation


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Table of Contents:

List of Acronyms

Acknowledgements

Preface

Introduction

What is the Purpose of this Manual?

Part I: Key Questions

1. What do we mean when we talk about Chinese environmental and social guidelines for foreign investments?2. What are the major differences between the guidelines of Chinese banks and those of the

World Bank, the Inter-American Development Bank, and the International Finance Corporation?3. When were these Chinese guidelines established?4. What are these Chinese guidelines?5. What Chinese institutions promulgate guidelines, and what are their roles?6. Are there other rules to be followed by Chinese banks and companies?7. Why do Chinese banks and companies want to comply with the guidelines and improve their

environmental and social performance?8. How does Chinese money reach other countries?9. How does China prioritize its overseas investments? 10. What role do Chinese banks play abroad?11. What is the China Export-Import Bank’s background?12. What is the China Development Bank’s background?

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Tables:

Table 1: Some features of major Chinese government agencies in relation to overseas investmentsTable 2: Summary of the China Export-Import Bank’s Project CycleTable 3: Summary of the China Development Bank’s Project Cycle

Part II: Norms

Compilation of Chinese guidelines for companies and banks operating and investing outside of China

Table 4: Major Chinese guidelines for state companies operating outside of ChinaTable 5: Major Chinese guidelines for state banks that lend outside China

Summaries of each guideline

Table 6: Nine Principles on Encouraging and Standardizing Foreign InvestmentTable 7: Guidelines for Sustainable Forestry Practices of Chinese CompaniesTable 8: Guidelines on Corporate Social Responsibility (CSR) Compliance by State-owned Companies Directly under the Control of the Central GovernmentTable 9: Administrative Guidelines for Overseas Contracting ProjectsTable 10: Guidelines for Overseas Sustainable Forest Use and Management by Chinese CompaniesTable 11: Interim Measures for the Management of Overseas State-Owned Property Rights of Chinese State-Owned EnterprisesTable 12: Interim Measures for the Supervision and Administration of Chinese State-Owned Enterprises’ Overseas Assets

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Table 13: Guide on Social Responsibility for the Chinese International Project Contracting IndustryTable 14: Guidelines on Environmental Protection in Investment and External CooperationTable 15: Guiding Opinions on Credit Issuance for Energy Conservation and Emission ReductionsTable 16: Guidelines for Social Responsibility in Overseas Mining InvestmentTable 17: China Banking Association Corporate Social Responsibility Guidelines for Financial InstitutionsTable 18: Notification of the China Banking Regulatory Commission on the issuing of the Guidance on Commercial Banks’ Management of Reputational RisksTable 19: Green Credit DirectiveTable 20: Guidelines for Environmental and Social Assessments for Project Loans from the China Export-Import BankTable 21: China Export-Import Bank - Environmental Management FrameworkTable 22: China Export-Import Bank - Resettlement Policy Framework

Part III: Address Book

- CHINESE PUBLIC INSTITUTIONS- CHINESE BANKS- CHINESE NON-GOVERNMENTAL ORGANIZATIONS- CHINESE MEDIA- INTERNATIONAL NON-GOVERNMENTAL ORGANIZATIONS- NTERNATIONAL MEDIA

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List of Acronyms

ADB Asian Development BankCAF Development Bank of Latin AmericaCBRC China Banking Regulatory CommissionCDB China Development BankCEIB China Export-Import BankCSR Corporate Social ResponsibilityEA Environmental AssessmentEIA Environmental Impact AssessmentEMP Environmental Management PlanIACC International Association of Chinese ContractorsICBC Industrial and Commercial Bank of ChinaIDB Inter-American DevelopmentIFC International Finance CorporationMEP Ministry of Environmental Protection (China)N/D No dataNDRC National Development and Reform Commission (China)PBC People’s Bank of ChinaPRC People’s Republic of ChinaSASAC State-owned Assets Supervision and Administration Commission of the State Council (China)SCBs State-Owned Contractor Businesses (China)State EPA/SEPA State Environmental Protection Agency (China)SFA State Forestry Agency (China)WB World Bank


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Acknowledgements

My thanks to all those who, in one way or another, contributed to the completion of the “Legal Manual on Chinese Environmental and Social Guidelines for Foreign Loans and Investments: A Guide for Local Communities,” including: Katharine Lu (Friends of the Earth), Grace Mang and her colleagues in Beijing (Living Rivers Network), Bai Yunwen (Greenovationhub), Cristina Benavides (Centro de Derechos Económicos y Sociales), Amparo Garzón, Christian Donaldson (Bank Information Center), Vince McElhinny (Bank Information Center), Margarita Florez (Asociación Ambiente y Sociedad), Chris Jochnick (Oxfam America), Ruijie Peng (Masters degree student at the Teresa Lozano Long Institute of Latin American Studies at the University of Texas, Austin), Milagros Aguirre, Alberto Acosta, Mateo Bonilla (Masters Student in International Relations at the Latin American Faculty of Social Sciences, FLACSO), Cristina Villagomez, and Santiago López for the time and effort they put into sharing valuable documents and providing their comments and suggestions to improve the content of this Manual.

A special thanks to Amy Shannon, Nora Fernández, and the staff of the Centro de Derechos Económicos y Sociales for their support when the Manual was just a “good idea.”

This publication would not have been possible without the support of the Centro de Derechos Económicos by Sociales (CDES, Ecuador), Derecho Ambiente y Recursos Naturales (DAR, Peru), the Latin American Institute for Alternative Society and Rights (ILSA, Colombia), the Charles Stewart Mott Foundation (United States), and Rainforest Foundation Norway. I also want to thank the Brazilian Institute of Social and Economic Research (IBASE, Brazil) and the Program on International and Comparative Environmental Law at American University Washington College of Law (United States), especially Taís Ludwig and Erika Lennon, for providing the translations of the Manual into Portuguese and English, respectively.

Finally, this work is dedicated to the memory of my sister Myriam, and all the communities who struggle for a decent life for themselves and for the planet.

Paulina Garzón


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Preface (Spanish Version)It is a pleasure to present the “Legal Manual on Chinese Environmental and Social Guidelines for Foreign Loans and Investments: A Guide for Local Communities,” which stems from the collective work that both the Centro de Derechos Económicos y Sociales (CDES) in Ecuador and Derecho Ambiente y Recursos Naturales (DAR) in Peru have been promoting along with other allies, such as CEDLA in Bolivia, IBASE in Brazil, and Asociación Ambiente y Sociedad in Colombia.

This work was led by Paulina Garzón, who not only completed a rigorous analysis of the legal requirements and conditions of Chinese investments, but also mapped and analyzed many of these investments in Ecuador and the region.

This publication focuses on raising awareness about the environmental and social standards of the China Development Bank, the China Export-Import Bank, and state-owned Chinese companies. The traditional mission of these banks is based on the “state social agenda” and their loans have focused on infrastructure projects to generate development.

From 2005 to 2011, Chinese banks lent more money to Latin America than the World Bank and the IDB. The bulk of these loans were directed to Venezuela, Argentina, Brazil, Ecuador, and Peru. Chinese investment has become crucial for the global economy, as well as for primarily exporting countries like Ecuador, Peru, and others in the Andean region. The fact that Ecuador has signed pre-sale agreements for oil with China and that more than 50 percent of mineral exports are sent to China, is a symptom of this trend and of this dependence.

The importance of this work lies precisely in understanding and disseminating the requirements of these investments in terms of parameters of respect for rights and sustainability. It is not a simple complaint, but an academic and practical analysis demonstrating how Chinese environmental and social standards largely have failed to influence Chinese loans and projects in practice. Undoubtedly, as political and economic changes in the region continue to take place, new opportunities and challenges for improving equity and sustainability globally and in our region are forthcoming.

Finally, we cannot thank enough Paulina Garzón, author of this work and leader of the research, whose passion led to the publication at hand. Likewise, we must thank Traci Romine, Stian Bergeland, the Mott Foundation, and the Rainforest Foundation Norway for their support of this work and its publication. This is another example of the kind of the necessary partnerships we as civil society organizations can create to fulfill our common purpose: to support the construction of a more equitable and sustainable world.

Eduardo Pichilingue,Executive Director, CDES

César Gamboa,Executive Director, DAR


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IntroductionWhile in Latin America the relevance of traditional financiers, such as the World Bank (WB) and the International Monetary Fund (IMF), and regional financial institutions, such as the Inter-American Development Bank (IDB) and the Development Bank of Latin America (CAF), is decreasing, the influence of China is rapidly increasing. This change, under the scrutiny of “structural adjustment,” could be considered promising. In fact, several leaders have called Chinese investment a “win-win” strategy with no conditions, which has resulted in “South-South strategic alliances.” However, while China does not dictate budgetary allocations, China does often dictate how borrowing governments should use the loans from Chinese banks. For example, Chinese financing policy indicates that borrowers must hire Chinese companies, use Chinese equipment, and hire Chinese laborers.

The impacts of Chinese investment in Latin America also go far beyond the economic sphere; most notably, they have serious environmental and social implications given the nature of the sectors to which such investments are directed. Many projects present an immediate and serious threat to the rights and quality of life of thousands of people, principally to indigenous and rural populations who live in areas where projects for the construction of dams, mining, and oil operations are developed. The majority of these projects are aimed at the aggressive exploitation of primary natural resources. Such exploitation follows a typical model in which the foreign investor

is the dominant economic beneficiary and the natural capital of the borrowing countries is rapidly depleted.

Chinese investments have taken local communities and social organizations by surprise. Very little has been done to demand accountability from Chinese banks and companies due to a lack of knowledge about Chinese standards for operations and investments abroad, the architecture of Chinese institutions, and Chinese regulators.

To fill these gaps, research was conducted that resulted in the “Legal Manual on Chinese Environmental and Social Guidelines for Foreign Loans and Investments: A Guide for Local Communities.” Its aim is to provide communities and social organizations with a practical tool that can be integrated into their broader advocacy and planning strategies around Chinese state banks and companies.

The Manual is framed around twelve “Key Questions” for understanding the origin, relevance, and applicability of Chinese guidelines. Regarding the guidelines themselves, included is a summary of seventeen Chinese guidelines: ten that apply to Chinese state companies, and seven that apply to Chinese state banks. In addition, there is a table for each guideline that explains its contents and suggests some practical ideas for its use. It is worth noting that both translations from Chinese to Spanish and Spanish to English are not meant to be verbatim translations.


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This second edition of the Manual does not contain all guidelines that apply to Chinese investments and loans abroad. We have chosen the most relevant standards in order to introduce the Chinese regulatory system to an audience that has not had the opportunity to become familiar with it. The selected guidelines cover environmental protection, corporate social responsibility, and the cycle of loan approval for development projects, as well as mechanisms for ensuring access to information, consultation, and participation. However, as is known, the existence of guidelines does not guarantee implementation. Effective systems and institutions are required to monitor implementation and to sanction and demand compliance.

To help understand the Chinese “institutional architecture” for monitoring and accountability of Chinese investment abroad, the Manual includes a summary of major Chinese public institutions and their functions. Finally, the Manual provides an Address Book with contact information for relevant Chinese institutions, media, and NGOs; as well as international NGOs and media interested in Chinese investments in Latin America.

It is difficult to predict what the results of using these new tools will be, especially in the short term, as there has been very little demand for the application of the guidelines and consequently Chinese authorities have not yet been held accountable for complying with them. But, as experience has shown, respect for rights and the law only improves when those affected know them and demand their enforcement. On the other hand, the most effective advocacy strategies to protect peoples’ rights are not limited to the use of regulatory instruments, but are combined with educational and enforcement campaigns at local, national, and international levels. This Manual is intended to provide communities with the tools and information necessary to pursue such strategies.


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What is the Purpose of this Manual?

Chinese guidelines for overseas operations establish several steps and precautions that investors (Chinese banks) and operators (Chinese companies) should take into account. For these guidelines to be useful for local communities, it is necessary:

• To know them:

To support this objective, we have compiled the major Chinese guidelines, which can be found in Part 2 (p 31-69), as well as the project cycles of the China Export-Import Bank (CEIB) and the China Development Bank (CDB), which are found in Tables 2 and 3 (p. 29-30).

• To check compliance:

➢ Verify that the process of approving a loan from a Chinese bank to either a government or a Chinese company for the construction of a project has successfully met the different requirements; for example, preparing environmental studies and environmental impact assessments (EIAs), conducting “due diligence” (understood as prior and reasonable evaluations to measure and prevent risks of an operation); and holding consultations with local communities, among others.

➢ Verify that during the implementation of a loan, environmental management plans are implemented adequately; environmental and social indicators exist; the company evaluates, reports, and remedies

any environmental and social impacts; and special guidelines are implemented to address fragile areas, resettlement, community relations, labor rights, etc.

➢ Verify that during the closure and abandonment of the project, “ex-post” environmental evaluations are conducted.

➢ Systematize the information verified in documents such as monitoring reports; and disseminate it among Chinese regulators, banks, and companies, as well as interested Chinese and international media and organizations.

• To report breaches of guidelines and demand redress from the Chinese authorities: To support this objective, we have prepared a summary of the main Chinese agencies involved in foreign investment and their functions, which is available in Table 1 (p 26-28). A relevant contact list can be found in Part 3 (p. 73-75) with the different agencies’ contact information.

• To inform noncompliance with applicable guidelines: To support this objective, we have collected the contact information of major Chinese and international media and non-governmental organizations, and it is available in the Address Book, see Part 3 (p. 76-82).


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Part I:

Key Questions


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1. What do we mean when we talk about Chinese environmental and social guidelines for foreign investments?

By guidelines, we mean the set of norms and standards issued by Chinese government agencies that apply to banks and state-owned contractor businesses (SCBs) and, in some cases, to private Chinese companies operating abroad. Most of these guidelines or regulations have been promulgated under the titles “Guides,” “Guidelines,” and “Directives” and some have been developed under existing Chinese regulations. These guidelines are not binding; however, there are several that do offer specific procedures and requirements.

Although there is a widespread misconception that Chinese banks and SCBs do not have standards for performance abroad, international investment law experts say, “China, arguably more than any other country, has put a framework in place which sets out priorities and controls relating to foreign outward investment.”1 Although it is evident that the environmental standards of Chinese banks are not as strong as the current standards of multilateral banks such as the World Bank (WB), the Inter-American Development Bank (IDB), and the International Finance Corporation (IFC), it is also true that Chinese banks are starting from a substantially better regulatory baseline than the one the multilateral banks started with when making their first loans to the region.

2. What are the major differences between the guidelines of the Chinese banks and those of the World Bank, the Inter-American Development Bank, and the International Finance Corporation?

It is worth remembering that the WB took over 40 years to establish its first environmental guidelines, the IFC almost 30, and the IDB 20. Currently, these banks have a set of environmental and social standards known as Operational Policies,2 Performance Standards,3 or Safeguard Policies,4

depending on the institution. These regulations are more advanced than the Chinese environmental guidelines, and their mandatory nature is known at all levels of these banks. For the implementation and monitoring of these rules, multilateral development banks have precise management processes with specialized teams and budgets. In addition, they have Access-to-Information policies (AIPs) and relevant bodies (accountability and grievance mechanisms) where communities affected by a project may file complaints and claims. These independent accountability mechanisms (IAMs) have a legal obligation to respond to such complaints and grievances and have some power over the banks, including the ability to encourage, if not force, the suspension of harmful projects.

1 Nathalie Bernasconi-Osterwalder, Lise Johnson & Jianping Zhang (eds), “Chinese Outward Investment: An emerging policy framework” (IISD & IIER, 2013), available at http://www.iisd.org/pdf/2012/chinese_outward_investment.pdf.

2 World Bank, Safeguard Policies (Operational Policies), http://go.worldbank.org/WTA1ODE7T0. The World Bank is in the middle of a significant revision of its safeguards, and, as of September 2015, is in the midst of phase 3 of a world-wide consultation process. The updated Safeguard Policies will likely be operational in 2016. 3 International Finance Corporation, Environmental and Social Performance Standards (2012), http://www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/ifc+sustainability/our+approach/risk+management/performance+standards/environmental+and+social+performance+standards+and+guidance+notes. 4 Inter-American Development Bank, Environmental Safeguards, http://www.iadb.org/en/topics/sustainability/environmental-safeguards,1517.html


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These mechanisms include the WB Inspection Panel,5

the IDB Independent Consultation and Investigation Mechanism (ICIM),6 and the IFC Compliance Advisor/Ombudsman (CAO).7

3. When were these Chinese guidelines established?

The first steps towards the development of assessment instruments and environmental planning in China occurred in the late 1970s when the State Council created the “Environmental Protection Law of the People’s Republic of China.” In 2003, the State Environmental Protection Agency (SEPA) enacted the “Environmental Impact Assessment Law of the People’s Republic of China.” Thereafter, an environmental impact assessment (EIA) became a key step in determining project feasibility. In January 2015 the new China Environmental Protection Act came into force. Under this law, for the first time in China, access to companies’ environmental information (environmental monitoring data, accident data, permits and licenses, penalties and fines, etc.) is considered a public right. The law also requires that EIAs are consulted on publicly, gives citizens the right to report environmental damage to protect their security, and imposes heavy penalties on public employees who do not respect the law proactively.

Currently, this new law only applies domestically, but it could induce significant changes outside of China. For example, there will be official public information on Chinese companies’ environmental records that could be useful for stakeholders outside China to learn more about the companies operating projects in their countries. Additionally, it might help to create a culture of transparency about Chinese companies, which would have positive effects both in China and in the areas outside of China where Chinese companies operate.

The most significant guidelines for overseas investments, though, did not appear until the mid-2000s, coinciding with the start of massive lending overseas. Several of these guidelines encourage Chinese banks and companies to use Chinese law and international practices in their investments and projects, especially those that offer higher standards than those of the host country and make clear the obligation to respect the host country ’s legal framework.

4. What are these Chinese guidelines?

There are many guidelines addressing direct and indirect environmental and social standards for Chinese investment abroad. The guidelines in this Manual were chosen because they present the most useful principles and tools for: (i) environmental protection; (ii) the defense of local communities’ rights to information and consultation; and (iii) the protection of workers’ rights.

5 World Bank Inspection Panel, www.inspectionpanel.org.6 IDB Independent Consultation and Investigation Mechanism, http://www.iadb.org/en/mici/home,1752.html.7 Compliance Advisor/Ombudsman, www.cao-ombudsman.org.


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5. What Chinese institutions promulgate guidelines, and what are their roles?

The Ministry of Commerce and the State Administration of Foreign Exchange Management have promulgated more than half of the guidelines governing foreign investments. In the environmental field, the most important guidelines come from: the State Council, the State Forestry Agency (SFA), the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), the Ministry of Commerce, and Ministry of Environmental Protection (MEP). Table 1 (p. 26-28) presents a summary of the “institutional architecture” of the agencies involved in the regulation and supervision of Chinese investments abroad and gives a good idea of “who does what.” There is some overlap in the roles and responsibilities of supervision and approval of investments between the different Chinese authorities governing foreign investment.

6. Are there other rules to be followed by Chinese banks and companies?

Beyond Chinese environmental and social guidelines, the following additional instruments should also be taken into account:

• The principle international treaties and other instruments recognized by China:

➢ Universal Declaration of Human Rights➢ Convention on Biological Diversity➢ International Covenant on Economic, Social and

Cultural Rights

➢ UN Declaration on the Rights of Indigenous Peoples➢ Convention on the Rights of the Child➢ Vienna Convention for the Protection of the Ozone

Layer➢ International Convention for the Protection of New

Varieties of Plants➢ Convention on the Conservation of Migratory Species

of Wild Animals ➢ Convention on International Trade in Endangered

Species of Wild Fauna and Flora ➢ Convention on Wetlands of International Importance

Especially as Waterfowl Habitat➢ International Convention for the Protection of Birds➢ Agreement Concerning Cooperation in the

Quarantine of Plants and Their Protection Against Pests and Diseases

➢ Sino-Australia Agreement on the Protection of Migratory Birds and Their Habitats

➢ International Tropical Timber Agreement➢ United Nations Framework Convention on Climate

Change➢ Rio Declaration on Environment and Development

• The Framework for Environmental Assessment and the World Bank Resettlement Policy. The CEIB reviewed its practices on environmental assessments and resettlement based on the World Bank and the Asian Development Bank (ADB) policies. Originally CEIB conducted this review in regards to a domestic project (III Project Financing Energy Efficiency), but then decided to use these new policies when financing overseas


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projects in other sectors, such as infrastructure projects. Additionally, Sinohydro Corporation (the Chinese contractor Coca Codo Sinclair in Ecuador) revealed that it has adopted the World Bank Environmental and Social Safeguard policies; however this has yet to be published.

• The Equator Principles. So far only the Industrial and Commercial Bank of China (ICBC) has adopted the Equator Principles. However, the Chinese Banking Association emphasizes their importance for the development and expansion of investments, noting that Chinese financial institutions should look to the Equator Principles and use them as a positive reference in their economic and financial development.

• The United Nations Global Compact. In 2007, the China Banking Regulatory Commission (CBRC) issued the official directive “Opinions on Strengthening Social Responsibility of Banks and Financial Institutions” requiring large banks like CDB and CEIB to adhere to the 10 principles of the UN Global Compact. The Compact calls on companies to embrace, support, and conduct their business based on a set of core principles on human rights, labor, environment, and anti-corruption. Similarly, SCBs are adopting the Global Reporting Initiative, which is related to the UN Global Compact, and the UN Principles for Responsible Investment, established in partnership with the United Nations Environment Programme (UNEP) Finance Initiative and the UN Global Compact.

• Chinese environmental guidelines for domestic application. The Chinese domestic regulatory framework has shown significant progress which is important to note because “Chinese financiers also apply their own standards when considering whether to approve a loan to support an overseas dam…. Several Chinese hydropower companies have committed to using Chinese domestic standards where host country laws and standards are weaker.”8 Many of these laws establish that “EIAs should be conducted in an open and transparent manner [and …] enshrine the precautionary principle. For example, an EIA must be rejected if the extent or severity of the negative environmental impacts resulting from the project cannot be predicted. [or ...] the available mitigation methods are insufficient.”9 Similarly, in the social context, Chinese law states that “hydropower project EIAs should not be accepted if public comments have not been adequately addressed. [. . . companies] must respond to public comments and adapt the project accordingly, or explain why public comments are unreasonable and are being rejected.”10 As for resettlement policies, Chinese law says that “ displaced people must be provided with a level of livelihood similar to or greater than that they had enjoyed prior to dam displacement; Resettlement plans must include economic development plans, not just cash payments for land and resources lost; ….

8 International Rivers, “The New Great Wall: A Guide to China’s Overseas Dam Industry,” 20 (2nd ed., Oct. 2012), available at http://www.internationalrivers.org/files/attached-files/ intlrivers_newgreatwalls_2012.pdf. 9 Id. at 25.10 Id. at 25.


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In addition, people displaced by dams between 1949 and 2006 receive a special social security payments ... for a 20-year period.”11

• International Organization for Standardization 14001 series (ISO 14001-2004 Environmental Management Systems). Several SCBs are certified under ISO series 14000, but these do not specify standards for environmental performance. If indicated, certified companies must have management systems to identify and control the environmental impacts of their activities, and must have a systematic approach to establish their environmental objectives and targets. The requirement to have a systematic approach could lead companies to create an environmental policy, implementation plans, and a culture of accountability.

• The Corporate Social Responsibility (CSR) standards and stock exchanges. Many Chinese businesses operating in Latin America are listed on the Hong Kong, Shanghai, and Shenzen stock exchanges. These exchanges often have guidelines related to CSR. The Shenzen and Shanghai exchanges, in particular, have guidelines on CSR, environmental standards, and best practices for ensuring access to information and public participation. In the Hong Kong exchange, however, the guidelines are less explicit and environmental and social doctrines are scattered throughout principles of good governance.

7. Why do Chinese banks and companies want to comply with the guidelines and improve their environmental and social performance?

• Environmental and social guidelines are not optional. Although many Chinese environmental and social guidelines for foreign investments are very broad, their principles, requirements, and mechanisms should be followed. As is often the case, the law is imperfect, and the public institutions responsible for monitoring are weak. However, compliance with norms is not optional, and institutions must be held accountable for cases of noncompliance. The implementation of laws improves as society adapts to them. Specifically, the Chinese law establishes “... that Chinese enterprises shall earnestly study and strictly comply with Chinese laws on [overseas foreign direct investments], and also earnestly study and strictly comply with the local laws of host countries, especially laws on environmental protection, labour, immigration, production safety, and bidding.”12

• China and its environmental commitment. China’s growth has put it in the public eye. China is seen, not only as the world’s “ATM,” but also as a leading investor in extractive industries and as the primary global exporter of cheap products. To continue its commercial and financial expansion, China has made many public commitments to improve its environmental performance. For example, in 2009 the SFA and the

11 Id. at 25.12 OxFam Hong Kong, “Understanding China’s Overseas Foreign Direct Investment: A Mapping of Chinese Laws and Stakeholders,” 64 (2012), available at http: //www.oxfam.org.hk/filemgr/2533/1367136257.pdf.


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Chinese Ministry of Commerce worked with the World Wildlife Fund (WWF), the Nature Conservancy, the International Union for Conservation of Nature (IUCN), and Forest Trends to produce a “Guide on Sustainable Overseas Forest Management and Utilization by Chinese Enterprises.” Then in 2010, the Ministry of Environmental Protection received support from the ADB for its project, “Strengthening the implementation of environmental laws and regulations.” Further, several Chinese public agencies, banks, and SCBs are currently participating in trainings related to environmental management standards associated with multilateral banks, UN agencies, environmental institutions, NGOs, and both Chinese and international universities and organizations.

• Environmental and social conflicts are an economic

risk factor for investors. Conflicts can slow or stop projects, can generate costly legal action, and can lead to environmental remediation actions and social compensation, such as the lawsuit against Chevron-Texaco in Ecuador. Many Chinese guidelines have strengthened systems for planning, monitoring, and reporting related to foreign investments with the primary aim of preventing and reducing investment risks, including environmental and social risks. In 2006, the President of the China Banking Regulatory Commission (CBRC), in a meeting with top executives of Chinese banks, cautioned against paying attention to credit risk, particularly with loans to companies known to be large emitters of pollutants and large consumers of energy and resources.

• Poor environmental reputation limits Chinese businesses’ access to credit from banks. Beginning in the early 2000s, the Chinese Ministry of Commerce established indices for evaluating SCBs’ overseas investments. These indices show that if Chinese companies fail to comply with the host country’s laws then their evaluation scores are decreased by 10 percent and they can be penalized by that country. Additionally, another 10 percent can be deducted if the company has trouble meeting environmental quality and safety standards, complying with labor standards, or has other conflicts. Along the same lines, in 2006, the SEPA in conjunction with the People’s Bank of China (PBC) issued an official notice to create a database on environmental corporate matters. Banks and regulatory agencies consult this database when considering loan applications from Chinese companies. Further, in 2007, the EMP, GCP, and the CBRC issued a policy to limit the spread of highly polluting companies that have high energy consumption.

8. How does Chinese money reach other countries?

China lends money to governments and invests in projects abroad through:

• Loans to foreign governments that are recorded aspublic debt.

• Commercial contracts between Chinese domesticcompanies and foreign governments for the anticipated sale of oil and/or minerals. Governments often receive


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the advanced payments, which are then recorded as debt in the national accounts.

• Loans fromChinese banks to Chinese companies todevelop projects, generally in the mining, oil, water, and infrastructure sectors.

• The merger or acquisition of banks or companies inforeign countries by Chinese banks and companies.

9. How does China prioritize its overseas investments?

In order to facilitate and guide Chinese investment in different countries, regions, and sectors, the Chinese Ministry of Commerce and Ministry of Foreign Affairs periodically publish an Investment Catalog covering more than 160 countries. This catalog highlights areas in which Chinese investment banks and Chinese companies should concentrate their operations. It also specifically establishes which Chinese state companies the Chinese government will support to carry out projects in each country. By using this catalog, the Chinese government ensures that international projects are in line with national priorities, such as meeting the need for specific raw materials or food and prevents competition among Chinese companies for projects abroad.

More recently, in April 2015, the Chinese government approved reforms for the CDB, CEIB, and Agricultural Development Bank of China (ADBC) designed to redirect and clarify the policy banks’ roles in order to help guide Chinese companies investing abroad and to avoid overlap. Under these new reforms, the CDB will “play an

active role in stabilizing China’s economic growth and structural adjustment” and “increase support to strategic areas and sectors [that are difficult];” the CEIB will focus on “supporting exports and implementing the government’s ‘going out’ strategy;” and the ADBC, which is China’s major agri-business lender, will focus on separating policy-oriented lending from other business and instead will focus on building up its control and decision systems in order to become a “sustainable” policy lender.13

10. What role do Chinese banks play abroad?

The CDB and CEIB are the two Chinese banks that have lent the most money to Latin American countries. The bulk of the loans have been for the development of oil and mining industries, as well as the construction of infrastructure. Additionally, these projects have generally been developed using Chinese technology and equipment and a significant number of Chinese workers. According to Chinese guidelines, overseas projects are expected to have 20 percent Chinese employees.

Both banks are considered “policy banks,” which means they must follow the state’s macroeconomic planning objectives including looking overseas (in particular to Latin America and Africa) for the natural resources that are scarce in China. Chinese banks lend money through the “ triangulation” of loans. This “ triangulation” can occur

13 Reuters, “China to reform policy banks amid global push, faltering exports” (Apr. 13, 2015), available at http://www.reuters.com/article/2015/04/13/china- policybanks-idUSL4N0XA1BY20150413.


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in two ways: (1) the Chinese bank lends money to a foreign government with an understanding that the foreign government will hire a SCB that will bring its own Chinese equipment, technology, and labor; or (2) the Chinese government lends money to a Chinese company and because the Chinese company has the advantage of having the capital for the project, it can easily obtain a foreign government contract.

11. What is the China Export-Import Bank’s background?

Founded in 1994, the CEIB has the dual purposes of financing the operations of Chinese companies abroad and promoting Chinese exports. The CEIB is accountable to the State Council and the CBRC, and is under partial control of the Ministry of Commerce and Ministry of Finance and Foreign Affairs. Its headquarters are in Beijing and it has three foreign offices: the Representative Office for Southern and Eastern Africa, the Paris Branch, and the St. Petersburg Representative Office. In 2012, it provided approximately US $ 193.25 billion abroad.

CEIB’s mission is “to facilitate the export and import of Chinese mechanical and electronic products, complete sets of equipment and new- and high-tech products, assist Chinese companies with comparative advantages in their offshore project contracting and outbound investment, and promote international economic cooperation and trade.” To fulfill its mission, the CEIB must develop an Annual Credit Export Plan in accordance with the State Council’s priorities, including the following, amongst others:

• Providecredits for theexportand import ofChineseproducts

• Loansforoverseasinvestments• ChineseGovernmentconcessionalloans• InternationalGuarantees• On-lending loans from foreign governments and

international financial institutions

Table 2 (p. 29) lays out CEIB’s environmental requirements in the loan application process.

12. What is the China Development Bank’s background?

Founded in 1994 under the authority of the State Council, the CDB is China’s biggest “policy bank.” From 2002 to 2012, CDB’s foreign loans grew by 36 times, and totaled US $ 248.2 billion by the end of 2012. Coinciding with this growth, since 2007, the CDB has produced an annual report on Corporate Social Responsibility. Additionally, it has “exported” over a thousand professionals worldwide, and has offices in 195 countries, including one in Rio de Janeiro, Brazil.

The CDB is the largest financier of infrastructure projects, especially dam construction, and natural resource extraction in the world. Its mandate is to provide funding for strategic projects in line with the objectives of the Five Year Plan defined by the National People’s Congress of China.

These investments include financing large projects in the areas of:


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• Electricity• RoadConstruction• Railways• OilandPetrochemical• Coalmines• Telecommunications• Agricultureandrelatedindustries• Publicinfrastructure

CDB provides credit by:

• Giving loans backed by oil owned by either foreigngovernments or foreign national companies.

• FinancingaChinesestatecompanytofacilitatetheirexpansion.

• Providing investments, through private funds, toChinese companies that are active abroad.

Many of the CDB loans are paid with oil. This is particularly common in Brazil, Venezuela, and Ecuador. The CDB has primarily funded large SCBs to help them acquire shares

in foreign companies, especially in the area of natural resource extraction. It has also provided loans to private companies such as Huawei, a private telecommunications company that dominates the market in Mexico and has offices in 12 other Latin American countries. Another way the CDB supports the expansion of SCBs abroad is by owning equity in them. For example, CDB is associated with China Petroleum Group, Sinopec Corporation, and China National Offshore Oil Corporation.

Table 3 (p. 30), presents the process that should be followed in a CDB loan application in reference to environmental requirements.


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Table 1:Some features of major Chinese government agencies in relation to overseas investments

State Council

It brings together the highest authorities of the Chinese Government.

National Developmentand Reform Commission (NDRC)

Ministry of Commerce

• Approves macroeconomic strategies and decisions on policies, laws, and the most important guidelines.

• Approves projects abroad that are above US$ 2 billion and relate to sensitive countries, regions, or sectors. Countries that do not have diplomatic relations with China, countries or regions where there are armed conflicts, and countries with natural resource extraction and large-scale infrastructure projects are all considered "sensitive."

• Leads and promotes the protection of Chinese workers outside of China

• Formulates and implements strategies for economic and social development

• Approves (together with the State Council and the Ministry of Commerce) overseas projects abroad that are projected to cost over US$ 2 billion and that deal with sensitive countries, regions, or sectors. Projects above US$ 1 billion only require NDRC’s approval. The projects submitted by SCBs and any other institution that will cost between US$ 300 million and US$ 1 billion must present their documents to the NDRC, but the projects do not require NDRC’s approval. For projects submitted by a SCB that are under the US$ 300 million baseline, documents must be submitted to the NDRC, but do not require approval. Projects submitted by any institution projected to cost less than $300 million must present documents to NDRC’s local offices, but do not require NDRC’s approval.

• Develops strategies, policies, and guidelines for SCBs.• Approves applications of SCBs to invest abroad and

requires SCBs to solicit the opinion of the Chinese

• Ministries• SASAC• National Development and Reform

Commission (NDRC)• SCBs and Chinese utilities that apply for

loans greater than US$ 2 billion

• Coordinates with the Ministry of Commerce and the State Council on matters related to overseas investments.

• SCBs and other financial institutions apply to it for loans greater than US$ 1 billion.

• SCBs• Economic Advisor of the Chinese

Embassy in the host countries.

Entity Functions Supervises and/or influences

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It is the most important entity in regards to the control of investment and international aid

Ministry of Foreign Affairs

Embassy, specifically the Economic Adviser, in the host country. For mining projects, the opinion of the domestic trade bodies must also be sought.

• Negotiates and ensures compliance with investment and trade treaties.

• Coordinates international aid and issues related to it.• Approves and oversees state companies, but not banks.• In coordination with the State Administration of Foreign

Exchange, coordinates and supervises the execution of an Annual Inspection Report of the SCBs. The score that each SCB receives based on this report (either1, 2, or 3) determines the support and preferential treatment it receives for: obtaining funding, foreign currency, customs permits, taxes, and labor turnover abroad.

• Identifies and produces, in coordination with NDRC, the list of industries and countries in which the Chinese government allows, encourages, limits, and prohibits SCB investment.

• Approves, in coordination with the NDRC, overseas dam construction projects of less than US$ 100 million through its regional offices.

• Approves, in coordination with the NDRC, projects of US$ 100 million or more through its headquarters office.

• Approves, in its regional offices, projects that are to be executed overseas by local SCBs when the amount is between US $10 and 100 million.

• Monitors, through their embassies in coordination with the Office of the Economic Adviser, who is employed by the Ministry of Commerce, the work of Chinese companies.

• As a central function, protects China's reputation abroad.• Facilitates, in coordination with other Chinese authorities, the

resolution of financial and trade disputes with foreign countries and companies through diplomacy and high-level meetings.

• Coordinates with the Ministry of Foreign Affairs.

• Coordinates with the NDRC in the approval of SCBs’ overseas development projects.

• Chinese embassies in host countries.• In coordination with the Ministry of

Commerce, requires the embassies to have a role in the monitoring of projects.

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Prepared by: Paulina GarzónSources:

- Natalie Bernasconi-Osterwalder, Lise Johnson & Zhang Jianping (eds.), “Chinese Outward Investment: An emerging policy framework” (IISD & IIER, 2013), available at http://www.iisd.org/pdf/2012/chinese_outward_investment.pdf.

- Wenbin Huang & Andreas Wilkes, “Analysis of China’s Overseas Investment Policies,” Working Paper 79 (Center For International Forestry Resources 2011).- International Rivers Network, “The New Great Wall: A Guide to China’s Overseas Dam Industry,” 20 (2nd ed., Oct. 2012), available at http://www.internationalrivers.org/files/

attached-files/intlrivers_newgreatwalls_2012.pdf.- Mayer Brown JSM Legal Update, “MOFCOM’s New Regulation for Overseas Investments by Chinese Enterprises Takes Effect” (May 15, 2009), http://www.mayerbrown.com/

publications/mofcoms-new-regulation-for-overseas-investment-by-chinese-enterprises-takes-effect-05-15-2009/. - Michelle Chan-Fishel, “Time to Go Green: Environmental Responsibility in the Chinese Banking Sector” (BankTrack & Friends of the Earth US, May 2007).

Ministry of Environmental Protection (MEP)

Has little influence compared to other public agencies

China Banking Regulatory Commission

It is the most authoritative body and has the most ability to interfere with the state banks

State-Owned Assets Supervision andAdministrationCommission of the State Council (SASAC)

• No role in approving investments abroad.• Responsible for the development of environmental

policies, laws, and guidelines.• Through the SEPA, the MEP has a leading role in the

implementation of EIAs domestically.• Has an Office for International Economic Cooperation,

which has established an accountability system for addressing grievances and complaints.

• Formulates and oversees the rules and guidelines governing banking institutions.

• Conducts site inspections and monitors banking institutions.

• Exerts coercive action when it finds established behaviors that break rules.

• Authorizes the establishment, change, and termination of businesses in the banking sector.

• Compiles and publishes statistics and reports about the operations and practices of state banks in accordance with the guidelines.

• Appoints the senior officials of SCBs.• Expedites guidelines for SCBs and guides their reform

and restructuring.• Has a role in the approval of SCBs’ investment projects.

• The SEPA significantly influences contractors through permits and environmental guidelines. (It’s not clear yet what SEPA’s influence over SCBs operating overseas is, but hopefully it will grow).

• State banks• Directories of state banks• Senior personnel of the state banks.

• SCBs• SCB executives and high level officials



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Before:Analysis of the Project

During:Implementation of the Project

After:Post-Project Review

• The EIA and SIA must be approved by the authorities of the host country.• The public should be consulted on projects with serious negative impacts.• The bank reviews the borrower's application documents and, if necessary, hires an independent

evaluator.• The bank negotiates with the project owner or lender to amend the proposed construction project,

based on the EIA and SIA.• The bank may require the inclusion of clauses that indicate environmental and social responsibilities in

order to monitor and restrict the behavior of the borrower.

• The bank must perform regular inspections of the project to ensure that it is being implemented properly and in accordance with the EIA and SIA.

• The bank should receive regular reports on projects under construction, including reports that take into account the environmental and social impacts of project development. They must also report on the status of implementation of measures to control and eliminate such impacts.

• If serious negative impacts of the project are not mitigated, then the bank may cancel the loan.

• The bank requires an EIA upon completion of the project.• The Bank requires environmental acceptance to be submitted and the documents should follow the

"Environmental Acceptance on the Completion of the Construction Project Management Measures." Documents must also comply with host country laws and regulations.

• According to the post-project review, the bank will review the measures taken before and during the implementation of similar projects. If necessary, the requirements and policies can be reviewed.

Stage Requirements

Table 2:Summary of the China Export-Import Bank’s Project Cycle


- “Environmental Policy of the China Export-Import Bank”- “Guidelines for Environmental and Social Assessment of Environmental and Social Impact Projects Loans China Export-Import Bank” (2007).


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Before:Project Analysis

After:Post-Project Review

• Customer must comply with all Chinese guidelines.• The CDB assesses the client based on the environmental record of the company applying for the

loan.• All projects require an EIA.• In the case of highly polluting projects and projects in energy-intensive industries such as coal mining,

oil, gas, electricity generation and transmission, etc., the EIA must be approved by environmental authorities.

• The EIA should be conducted by an independent evaluator.• The environmental standards required and the environmental costs must be included in the loan

agreements so that the borrowers commit to meet their environmental obligations.• The CDB can exercise its "veto" power and reject a project based solely on environmental concerns.• The CDB assigns two employees to perform "due diligence" for each loan application; one to

evaluate the loan and the other to evaluate the client.• The CDB has a department for evaluation of environmental and social risks, and also manages

environmental and social issues across business units.• Environmental costs should be included in the project’s operating costs.

• For environmental requirements of a loan to be considered fulfilled, the customer and its relevant environmental departments must provide proof that the project complies with the environmental protection requirements.

Stage Requirements

Table 3:Summary of the China Development Bank’s Project Cycle


- BankTrack & Friends of the Earth, “China Development Bank’s overseas investments: An assessment of environmental and social Policies and practices” (2012).


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Part II:

Norms 3 Compilation of Chinese guidelines for companies and state banks operating and investing outside of China

3Summaries of each guideline


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Compilation of Chinese guidelines for companies and state banks operating and investing outside of China

Nine Principles onEncouraging andStandardizing Foreign Investment

Guidelines for Sustainable Forestry for ChineseCompanies Overseas

Guidelines for State-Owned Enterprises directly under Central Government Control to Comply with Corporate Social Responsibility (CSR)

State Council

State Forestry Administration

State-Owned Assets Supervision and Administration Commission of the State Council

2007

2007

2007

• Stresses the importance of independent scientific studies and proper assessment of the investment and operations risks.

• Emphasizes strengthening monitoring and evaluation activities, and having project cost accounting systems.

• Stresses the importance of making Chinese companies more competitive, respecting fair and organized market competition, and promoting a positive image of these companies in borrowing countries.

• Presents detailed guidance on the planning, implementation, monitoring, and evaluation of timber and non-timber activities and their direct and indirect impacts. It specifically notes that forests of high conservation value must be "strictly" protected, and says that "conservation areas" for endangered flora and fauna should be created and should be outside the project area. When this is not possible, special conservation measures must be taken.

• Includes a list of international instruments companies must observe if the borrowing country is also a signatory.

• Provides for establishing a consultative mechanism for the local community.

• Emphasizes the adoption of measures to protect the rights of local communities when the forest is used.

• Emphasizes the creation of jobs and the need to protect workers’ rights

• Emphasizes the establishment of systems, processes, and indicators for assessing CSR implementation and the creation of a Department for Management (corporate office) to ensure CSR.

• Stresses that CSR should be taken into account at all levels and in overall corporate planning.

• Requires the establishment of an information disclosure system, as well as a mechanism for dialogue with the public and stakeholders. Suggestions received from the public must be published along with the

company’s responses.

Guideline Origin Year Key Concepts

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Table 4:Major Chinese guidelines for state companies operating outside of China


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Administrative Regulation for Overseas Contracting Projects

Guidelines for Overseas Sustainable Forest Use and Management by Chinese Companies

Interim Measures for the Administration of Overseas State-Owned Property Rights of Chinese State-Owned Enterprises

Interim Measures for the Supervision and Administration of Overseas State-Owned Assets of Chinese State-Owned Enterprises

State Council

State Forestry Administration and Ministry of Commerce

State-owned Assets Supervision and Administration Commission of the State Council

State-owned Assets Supervision and Administration Commission of the State Council

2008

2009

2011

2012

• Describes the process for SCBs to obtain the necessary certificate and qualification from Chinese authorities to be overseas contractors.

• Entities that have committed serious offenses during the past two years are not eligible for the certificate.

• Identifies the State Council as the responsible entity for the administration and supervision of the Chinese companies acting as contractors abroad.

• Presents a detailed list of conventions and agreements signed by China that are to be observed, and mentions that all nonbinding agreements on forests also should be taken into account.

• Emphasizes the importance of compliance with the host country’s laws, the need to correct any violations of the law immediately, and the requirement to record all violations of the law.

• Presents detailed guidelines for the management and use of forests, including processing and transportation of wood, personnel training, community relations, environmental protection, and biodiversity conservation.

• Requires that measures exist to circumvent or decelerate a project in forests deemed to be of high conservation value under host country regulations. Requires preparation of a forest use and management program, and submission of a compliance report to the local authority.

• Signals that a system for information disclosure and consultation be created.

• Notes that the parent companies and their subsidiaries must obtain approval from SASAC, and must develop feasibility studies and undertake due diligence to assess the investment’s financial condition.

• Mentions that subsidiaries have to regularly report to the parent companies and the parent companies should control the operation of its overseas subsidiaries or affiliates.

• SOEs must, among other things, establish management systems for investment abroad, report their annual investment plans to SASAC, prepare feasibility studies and conduct due diligence in relation to non-strategic projects, and receive SASAC authorization for investments outside their typical industries.


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Guide to SocialResponsibility for China’s International Contractors

Guidelines forEnvironmental Protectionin Investment andCooperation Overseas

Guidelines for Social Responsibility in Mining Investments Abroad

Chinese International Contractors Association

Ministry of Commerce and Ministry of Environmental Protection

China Chamber of Commerce of Metals, Minerals and Chemicals

2012

2013

2014

• Presents several specific mechanisms that should be created to ensure that environmental, social, and information delivery issues are addressed and measures for good practice are implemented according to established criteria.

• Highlights the protection of workers’ rights and anti-corruption measures.• Establishes that CSR should include supply chains and sub-contractors.

• Establishes that companies must perform EIAs that include plans to mitigate environmental and social impacts; management plans for hazardous waste; plans to address environmental accidents, and plans to incorporate the "ecological restoration" of project-affected areas.

• Stresses that companies should conduct due diligence investigations and should assess their environmental liabilities before acquiring other companies.

• Companies should establish communication with local communities, publish their environmental information, and seek advice from national environmental authorities.

• Emphasizes the establishment of systems, mechanisms, and indicators for identifying, implementing, and controlling the environmental and social impacts of a project.

• Notes that mining companies should respect the right to free, prior, and informed consent of local communities affected by new operations.

• Notes that no new operations should be undertaken in UNESCO protected sites, and they should be established as "no-go-areas"

• Emphasizes respect for human rights and workers' rights, and transparency in information delivery.

• Assigns the China Chamber of Commerce of Metals, Minerals and Chemicals the primary role in supervising Chinese mining companies in their implementation of this regulation.


- Natalie Bernasconi-Osterwalder, Lise Johnson & Zhang Jianping (eds.), “Chinese Outward Investment: An emerging policy framework” (IISD & IIER, 2013), available at http://www.iisd.org/pdf/2012/chinese_outward_investment.pdf.

- Wenbin Huang & Andreas Wilkes, “Analysis of China’s Overseas Investment Policies,” Working Paper 79 (CIFOR, 2011).- International Rivers Network, “The New Great Wall: A Guide to China’s Overseas Dam Industry,” (2nd ed., Oct. 2012), available at http://www.internationalrivers.org/files/

attached-files/intlrivers_newgreatwalls_2012.pdf. - Mayer Brown JSM Legal Update, “MOFCOM’s New Regulation for Overseas Investments by Chinese Enterprises Takes Effect,” http://www.mayerbrown.com/publications/

mofcoms-new-regulation-for-overseas-investment-by-chinese-enterprises-takes-effect-05-15-2009/. - Michelle Chan-Fishel, “Time to Go Green: Environmental Responsibility in the Chinese Banking Sector” (BankTrack & Friends of the Earth US, May 2007).


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Table 5:Major Chinese guidelines for state banks that lend outside China

Guidelines forEnvironmental and Social Impact Assessments of the CEIB’s loan projects

Environmental Assessment Framework(It is based on thepractices of the World Bank and the AsianDevelopment Bank)

Resettlement PolicyFramework

China Export-Import Bank



2007

2011

2011

• EIAs and SIAs must be made before the project is approved (during the evaluation of the loan application) and after the project (i.e. at the close of the project) at which time the EIA and SIA should take the initial evaluation into account.

• Borrowers should follow the host country’s laws and regulations.• Notes that companies or banks should consult with local people and

respect their rights to land and natural resources.• Indicates that the CEIB may require corrective action when the project

causes serious environmental and social impacts, and may even decide to terminate the continuation of credit.

• Establishes responsibilities and criteria for conducting Environmental Assessments (EAs), developing Environmental Management Plans (EMP), and ensuring proper information disclosure and consultation processes.

• Establishes that the CEIB may reject a potential borrower’s request for credit for environmental reasons, and can visit the project sites to verify compliance with environmental and social guidelines.

• Stresses that when resettlement is necessary, the new living conditions, including housing, quality of land, infrastructure, and services, should be the same, similar, or better than what the resettled people had before they were displaced.

• Indicates that transportation, resettlement, taxes, and other costs also must be paid.

• Determines that in order to qualify for the compensation payment due to displacement it is not necessary to have legal title to the land, but only a "right to use" it.

Guiding Opinion onEnergy ConservationCredit

Association ofChinese Banks:CSR Guidelines (FIs)

China Banking Regulatory Commission: Guidebook for Commercial Bank’s Management ofReputational Risk

Green Credit Directive (Initially designed for projects in China, but now also considered guidelines for investments abroad. Article 21 specifically refers to overseas operations)

China Banking Regulatory Commission (CBRC)

Association of Chinese Banks



2007

2009

2009

2012

• Promotes loans for low-energy and low environmental impact projects, and limits loans to polluting and high energy consumption industries and sectors.

• Identifies measures to be incorporated into the structures of banks to improve implementation and environmental monitoring of the credits.

• Emphasizes the Equator Principles as a model to follow in the development and expansion of banks.

• Banks should create specialized environmental units and provide environmental training to its clients. Reaffirms the importance of independent EIAs and having more environmental information than what the customer provides to assist in decision-making.

• Emphasizes the importance the CBRC gives to reputational risks, which tacitly includes risks related to environmental and social causes, in conducting its credit assessment.

• Calls for the creation of systems, departments, and evaluation mechanisms.• Calls for a prompt response to reputational risk events and clarifies responsibilities

and response procedures.

• Establishes banks’ responsibilities in terms of managing environmental and social risks, as well as their clients’ responsibilities and the requirements clients must meet.

• Emphasizes the establishment of identification, management, monitoring, and risk assessments throughout the project (including project conclusion). It also emphasizes that risk management is important in determining the customer's credit rating base.

• Notes that banks should conduct site visits to assess project risks and incorporate environmental clauses in loan agreements.

• Indicates that an eligible independent third party contractor can be hired to conduct environmental and social assessments and audits.

• Notes that it is possible to suspend disbursement of credit for the breach of environmental and social requirements.

Regulation Origin Year Key Aspects

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Guidelines forEnvironmental and Social Impact Assessments of the CEIB’s loan projects

Environmental Assessment Framework(It is based on thepractices of the World Bank and the AsianDevelopment Bank)

Resettlement PolicyFramework




2007

2011

2011

• EIAs and SIAs must be made before the project is approved (during the evaluation of the loan application) and after the project (i.e. at the close of the project) at which time the EIA and SIA should take the initial evaluation into account.

• Borrowers should follow the host country’s laws and regulations.• Notes that companies or banks should consult with local people and

respect their rights to land and natural resources.• Indicates that the CEIB may require corrective action when the project

causes serious environmental and social impacts, and may even decide to terminate the continuation of credit.

• Establishes responsibilities and criteria for conducting Environmental Assessments (EAs), developing Environmental Management Plans (EMP), and ensuring proper information disclosure and consultation processes.

• Establishes that the CEIB may reject a potential borrower’s request for credit for environmental reasons, and can visit the project sites to verify compliance with environmental and social guidelines.

• Stresses that when resettlement is necessary, the new living conditions, including housing, quality of land, infrastructure, and services, should be the same, similar, or better than what the resettled people had before they were displaced.

• Indicates that transportation, resettlement, taxes, and other costs also must be paid.

• Determines that in order to qualify for the compensation payment due to displacement it is not necessary to have legal title to the land, but only a "right to use" it.

Guiding Opinion onEnergy ConservationCredit

Association ofChinese Banks:CSR Guidelines (FIs)

China Banking Regulatory Commission: Guidebook for Commercial Bank’s Management ofReputational Risk

Green Credit Directive (Initially designed for projects in China, but now also considered guidelines for investments abroad. Article 21 specifically refers to overseas operations)

China Banking Regulatory Commission (CBRC)

Association of Chinese Banks



2007

2009

2009

2012

• Promotes loans for low-energy and low environmental impact projects, and limits loans to polluting and high energy consumption industries and sectors.

• Identifies measures to be incorporated into the structures of banks to improve implementation and environmental monitoring of the credits.

• Emphasizes the Equator Principles as a model to follow in the development and expansion of banks.

• Banks should create specialized environmental units and provide environmental training to its clients. Reaffirms the importance of independent EIAs and having more environmental information than what the customer provides to assist in decision-making.

• Emphasizes the importance the CBRC gives to reputational risks, which tacitly includes risks related to environmental and social causes, in conducting its credit assessment.

• Calls for the creation of systems, departments, and evaluation mechanisms.• Calls for a prompt response to reputational risk events and clarifies responsibilities

and response procedures.

• Establishes banks’ responsibilities in terms of managing environmental and social risks, as well as their clients’ responsibilities and the requirements clients must meet.

• Emphasizes the establishment of identification, management, monitoring, and risk assessments throughout the project (including project conclusion). It also emphasizes that risk management is important in determining the customer's credit rating base.

• Notes that banks should conduct site visits to assess project risks and incorporate environmental clauses in loan agreements.

• Indicates that an eligible independent third party contractor can be hired to conduct environmental and social assessments and audits.

• Notes that it is possible to suspend disbursement of credit for the breach of environmental and social requirements.

Regulation Origin Year Key Aspects


- Natalie Bernasconi-Osterwalder, Lise Johnson & Zhang Jianping, “Chinese Outward Investment: An emerging policy framework”(IISD & IIER, 2013), available at http://www.iisd.org/pdf/2012/chinese_outward_investment.pdf.

- Wenbin Huang & Andreas Wilkes, “Analysis of China’s Overseas Investment Policies,” Working Paper 79 (CIFOR, 2011).- International Rivers Network, “The New Great Wall: A Guide to China’s Overseas Dam Industry” (2nd Ed. Oct. 2012), available at http://www.internationalrivers.org/files/

attached-files/intlrivers_newgreatwalls_2012.pdf.- Mayer Brown JSM Legal Update, “MOFCOM’s New Regulation for Overseas Investments by Chinese Enterprises Takes Effect” (May 15, 2009), http://www.mayerbrown.com/

publications/mofcoms-new-regulation-for-overseas-investment-by-chinese-enterprises-Takes-effect-05-15-2009/.- Michelle Chan-Fishel, “Time to Go Green: Environmental Responsibility in the Chinese Banking Sector” (BankTrack & Friends of the Earth US, May 2007).


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Summaries of each guideline

Table 6:

“Nine Principles on Encouraging and Standardizing Foreign Investment”

Issued by: State Council, October 2007

Applies to: Chinese companies abroad

Objective: To promote monitoring and evaluation systems for Chinese investment and to promote Chinese companies abroad

Principles of economic cooperation

Decision-making and evaluation systems

• Insists on respect, equality, and mutual benefits for the parties involved.• Prevents disorderly competition and promotes a steady improvement in

overall competitiveness.• Increases funding to protect Chinese companies abroad.• Creates a better public image.

• Ensure the autonomy of scientific studies and careful decision-making to prevent investment risks and project operation risks.

• Create and strengthen robust systems for monitoring and evaluating state enterprises.

• Establish a safety assessment system, a system of project cost accounting, and a system for preserving and increasing the value of goods.

• Ensure transparency and respect for national laws in the granting of concessions, as well as in all mergers and acquisitions of national companies.

• Ensure that the company demonstrates that in developing the EMP, it has taken into account the EIAs and EAs.

• Use the monitoring and evaluation systems as forums to deliver information and request corrective action.

• Ensure that the company establishes internal measures to fully implement: workers’ rights (salary, benefits, healthy working conditions, etc.); that natural resources are not destroyed; and guidelines to ensure a healthy environment and respect for the local communities’ customs and cultures.

Key Themes Possible ApplicationHighlights

Prepared by: Paulina Garzón


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LegalInstruments

SpecialProtections

• The Declarations, Conventions, and International Agreements signed by China and the host country that are part of the Information Appendix of these Guidelines shall be observed.

• The habitats of species whose protection has been clearly prescribed by the host country’s laws and regulations and/or by international conventions should be strictly respected.

• The laws, statutes, departmental guidelines, and other documents made or issued by relevant government agencies should be observed. Such guidelines must be given to the contracting companies and both management and employees should know them.

• Forests of high conservation value must be strictly protected.• Special measures should be introduced to protect precious, rare, or

endangered species of flora and fauna, as well as their habitat, which should be “no-go areas” for projects "off the map" of the project activity area and instead should be considered "conservation areas." When it is not possible to clearly define conservation areas, companies should ensure that there is sufficient space for each species.

• The reforestation plans, inter alia, should include assessments of the risks and benefits of forestry activities, and should include measures for monitoring forest ecosystems.

• Forest workers shall be trained so they can perform their jobs appropriately. A special mechanism should be established to ensure compliance.

• Review and select the relevant tools from the Information Appendix and monitor their implementation in the project.

• Request proof that employees know the national laws and regulations.

• Verify the existence and implementation of measures to protect the forests and conservation areas.

• Use the risk and benefit assessments of the forestry and reforestation plans, the monitoring systems, and the environmental assessments as platforms to present communities’ proposals

• Verify and evaluate related job creation and other community benefits.

• Provide a definition to the company about what the community considers “sustainability.”

Key Themes Possible ApplicationsHighlights

• The exploitation of forest products should be done sustainably.• The operational and management costs of sustainable forestry must be

fully taken into account and should be economically viable.• The sale of seeds and seedlings should only be done in strict compliance

with local regulations.• The extraction of timber products [in both quantity and time] and

non-timber products should be less than the regeneration capacity.

• The environmental assessments should be adjusted based on the scope, intensity, and resources used in the forestry activities, and the operating methods should be adjusted based on the environmental assessment.

• Steps should be taken to protect the natural character of the forest, water resources, and soil quality. Companies should also take steps to strictly control the use of chemical agents, to safeguard forest systems, and to protect the forests’ values and services.

• Provide employment, job training, and other social service opportunities for residents in the forest area and surrounding communities.

• Safeguard the legal rights and interests of employees.• Prevent infringement of the legal rights of local residents to use and enjoy

the forests and other resources.• Take necessary measures to prevent forest activities (for example, logging)

that directly or indirectly threaten or undermine the resources or the usage rights of the original residents.

• Ensure that the measures to prevent/mitigate environmental impacts are publicly available and detailed (including baseline data, performance indicators, evaluation methodologies, etc.)

• Ensure that the measures taken to meet the goals of these Guidelines are publicly available and detailed in explaining the social programs, and how they promote and respect both workers’ rights and residents’ rights.

• Ensure that the consultations and mechanisms used reflect the principles of free, prior and informed consent.

• Establish a mechanism for consultation with the local community.

CONTINUES

Table 7:

“Guidelines for Sustainable Forestry Practices of Chinese Companies”

Issued by: State Forestry Administration, August 2007

Applies to: Chinese companies involved in logging and forestry activities abroad

Objective: To guide and evaluate the activities of Chinese companies in regards to forestry, non-timber products, and other services, as well as to

empower them to protect and develop global forest resources in an efficient and sustainable manner


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• Review and select the relevant tools from the Information Appendix and monitor their implementation in the project.

• Request proof that employees know the national laws and regulations.

• Verify the existence and implementation of measures to protect the forests and conservation areas.

• Use the risk and benefit assessments of the forestry and reforestation plans, the monitoring systems, and the environmental assessments as platforms to present communities’ proposals

• Verify and evaluate related job creation and other community benefits.

• Provide a definition to the company about what the community considers “sustainability.”

Environmental Impacts

Community Development











• Ensure that the measures to prevent/mitigate environmental impacts are publicly available and detailed (including baseline data, performance indicators, evaluation methodologies, etc.)

• Ensure that the measures taken to meet the goals of these Guidelines are publicly available and detailed in explaining the social programs, and how they promote and respect both workers’ rights and residents’ rights.

• Ensure that the consultations and mechanisms used reflect the principles of free, prior and informed consent.



CONTINUES


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Prepared by: Paulina GarzónNote: The Act contains two appendices, one informative and the other normative.

The Informative Appendix presents a list of the Declarations, Conventions, and international agreements relevant to the application of the law, namely:• ConventiononBiologicalDiversity• ViennaConventionfortheProtectionoftheOzoneLayer• InternationalConventionfortheProtectionofNewVarietiesofPlants• ConventionontheConservationofMigratorySpeciesofWildAnimals• ConventiononInternationalTradeinEndangeredSpeciesofWildFaunaandFlora• ConventiononWetlandsofInternationalImportanceEspeciallyasWaterfowlHabitat• InternationalConventionfortheProtectionofBirds• AgreementConcerningCooperationintheQuarantineofPlantsandTheirProtectionAgainstPestsandDisease• Sino-AustraliaAgreementontheProtectionofMigratoryBirdsandTheirHabitats• InternationalTropicalTimberAgreement• RioDeclarationonEnvironmentandDevelopment

The Regulatory Appendix distinguishes the degrees of rigor, namely:• Thepositivephrase:“Must”;negativephrase“strictlyprohibited”• Positivephrase“must/should”;negativephrase“shallnotbepermitted,”and• Positivephrase:“Should”;negativephrase“shouldnot”


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Principles

Specific measures to improve the implementation and evaluation of CSR

Accountability

• CSR is necessary to participate in international economic cooperation activities and to achieve sustainable development.

• CSR guidelines encourage companies to comply with laws, regulations, guidelines, and tax payments; serve the interests of investors and creditors; protect intellectual property rights; oppose improper competition; eradicate corruption in commercial activities; and seek a fair distribution of resources.

• Develop the company’s general planning with due consideration of social responsibility and sustainable development.

• Establish a Production Safety System, and improve their capabilities to deal with emergencies and their emergency response systems.

• Provide healthy and safe conditions for workers, respect workers’ rights, and implement an employee representation system.

• Improve corporate governance and advocate that decisions be taken democratically and in consideration of scientific facts.

• Improve investment in environmental protection and innovative technology to reduce emissions and increase recycling.

• Establish a department that handles CSR, and gradually build a statistical index and CSR compliance assessment system. Companies that already are leading the field should establish a CSR Performance System.

• Verify the existence of: (i) a Production Safety System; (ii) a CSR Department and a statistical index evaluation system; (iii) an Information Dissemination System; and (iv) an employee representation system.

• Check that information and feedback is published in a timely and complete manner.

• Share information about compliance with these guidelines with parent companies so that they can take it into account in their annual CSR reports.

• Request that contracting companies deliver annual CSR reports to the community and local stakeholders.


• Companies that already have CSR criteria should build an Information Disclosure System, and provide updates about CSR performance, plans, and the implementation of CSR measures. Companies that do not have experience in managing CSR should establish a mechanism for communication and regular dialogue about CSR issues in order to obtain feedback from stakeholders and provide immediate answers. All information and feedback should be published and subject to supervision by stakeholders and society.

• Publish annual CSR reports.

CONTINUES

Table 8:

“Guidelines on Corporate Social Responsibility (CSR) Compliance by State-owned Companies Directly under the

Control of the Central Government”Issued by: Supervisory Board and Management of State-Owned Enterprises of the State Council, December 2007

Applies to: Chinese state-owned companies

Objective: Encourage state-owned companies to promote sustainable development and implement the “new ideas of China” on economic development, social progress, and environmental protection


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• CSR is necessary to participate in international economic cooperation activities and to achieve sustainable development.

• CSR guidelines encourage companies to comply with laws, regulations, guidelines, and tax payments; serve the interests of investors and creditors; protect intellectual property rights; oppose improper competition; eradicate corruption in commercial activities; and seek a fair distribution of resources.

• Develop the company’s general planning with due consideration of social responsibility and sustainable development.

• Establish a Production Safety System, and improve their capabilities to deal with emergencies and their emergency response systems.

• Provide healthy and safe conditions for workers, respect workers’ rights, and implement an employee representation system.

• Improve corporate governance and advocate that decisions be taken democratically and in consideration of scientific facts.

• Improve investment in environmental protection and innovative technology to reduce emissions and increase recycling.

• Establish a department that handles CSR, and gradually build a statistical index and CSR compliance assessment system. Companies that already are leading the field should establish a CSR Performance System.

• Companies that already have CSR criteria should build an Information Disclosure System, and provide updates about CSR performance, plans, and the implementation of CSR measures. Companies that do not have experience in managing CSR should establish a mechanism for communication and regular dialogue about CSR issues in order to obtain feedback from stakeholders and provide immediate answers. All information and feedback should be published and subject to supervision by stakeholders and society.

• Publish annual CSR reports.

Themes Possible ApplicationsHighlights



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Table 9:

“Administrative Guidelines for Overseas Contracting Projects”

Issued by: State Council, July 2008

Applies to: All Chinese companies or any other trading unit for building projects abroad

Objective: To regularize the management of overseas contracting projects

Supervision

Support

Qualification

• Trade authorities of the State Council (nationally) are in charge of managing and supervising the activities of companies under its jurisdiction that are engaged in overseas contracting projects, and promoting the participation of Chinese companies in overseas contracting projects.

• Any Association or Chamber of Chinese State-owned Enterprises [in any jurisdiction under the control of the Central Government of China] shall provide information and training services to all its members.

• Chinese state-owned companies need to be certified to operate abroad. Requirements include: having internal rules and guidelines to ensure project quality and safety of the operation; having had neither significant problems related to project quality nor serious accidents in the last two years; having a good reputation; and not having breached a contract nor having performed any illegal operations in the past three years.

• The company must complete an application request including the information described above.

• Ask the company to publicly disclose its internal guidelines for environmental and social issues, including guidelines related to labor and information disclosure.

• Request the company’s environmental record.

• Report serious problems caused by SCBs to the Ministry of Trade (and other appropriate bodies in China).




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Principles

SpecificMeasures

• Respect the host country’s sovereignty and its laws, and use industry standards.

• Make positive efforts to promote the local economy and community development.

• Highly value ecosystems benefits and services.• Safeguard environmental safety and protect forests, land, and energy as

much as possible.

• Comply with binding agreements and protocols signed between China and the host country, and with all other relevant agreements and conventions.

• Comply with all Chinese legal provisions related to foreign investments and economic cooperation of Chinese enterprises.

• Fully understand the laws and regulations of the host country and raise employee awareness of these laws and regulations. Illegal acts must be corrected immediately and there must be a written record of it.

• Complete an application for a permit from the host country authorities to handle, process, and use forest resources. The application must include work areas, amounts and types of resources, scope of operation, etc.

• Provide means to slow down a project when it affects forests of high ecological value.

• Establish a Management and Forest Use Program, and submit a compliance report to local authorities.

• Establish measures and procedures to control fires and pests.

• Verify compliance with binding national instruments signed between China and the borrower country.

• Verify the existence of the written record when the company commits illegal acts (including related to environmental and social issues), and verify that it reaches its recipients, including Chinese state officials.

• Request a copy of the authorization given by the national authorities.

• Verify that "slowdown" measures are implemented in forest areas of high ecological value.

• Request that the Management and Forest Use Program is shared with the community and other stakeholders.


• Establish a consultation and disclosure system, and encourage local people to participate in major decisions about forest development. Actively consult with the local community when it comes to protecting an area for cultural, religious, economic, or ecological reasons.

• Take full account of all the unwanted effects of logging.• Develop special measures to conserve rare, threatened, or endangered

species of fauna and flora, and establish protected areas for them.• Take measures to avoid undermining the right of local people to use

legal resources.

• Request that the Information Disclosure and Consultation System is established and defined jointly with the community.

• Request information on measures taken to protect the rights of local populations.

CONTINUES

Table 10:

“Guidelines for Overseas Sustainable Forest Use and Management by Chinese Companies”

Issued by: State Forestry Administration and the Ministry of Commerce (The creation of these guidelines was supported by WWF, the Nature Conservancy, IUCN, and Forest Trends), March 2009

Applies to: Chinese companies engaged in logging, processing and use of wood, and other related forest activities

Objective: Guide Chinese companies to manage, use, and protect forests in a way that promotes sustainable development and to provide criteria for the industry to improve its management and basic self-regulatory capacity to manage and use overseas forest resources


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• Respect the host country’s sovereignty and its laws, and use industry standards.

• Make positive efforts to promote the local economy and community development.

• Highly value ecosystems benefits and services.• Safeguard environmental safety and protect forests, land, and energy as

much as possible.

• Comply with binding agreements and protocols signed between China and the host country, and with all other relevant agreements and conventions.

• Comply with all Chinese legal provisions related to foreign investments and economic cooperation of Chinese enterprises.

• Fully understand the laws and regulations of the host country and raise employee awareness of these laws and regulations. Illegal acts must be corrected immediately and there must be a written record of it.

• Complete an application for a permit from the host country authorities to handle, process, and use forest resources. The application must include work areas, amounts and types of resources, scope of operation, etc.

• Provide means to slow down a project when it affects forests of high ecological value.

• Establish a Management and Forest Use Program, and submit a compliance report to local authorities.

• Establish measures and procedures to control fires and pests.

• Verify compliance with binding national instruments signed between China and the borrower country.

• Verify the existence of the written record when the company commits illegal acts (including related to environmental and social issues), and verify that it reaches its recipients, including Chinese state officials.

• Request a copy of the authorization given by the national authorities.

• Verify that "slowdown" measures are implemented in forest areas of high ecological value.

• Request that the Management and Forest Use Program is shared with the community and other stakeholders.

• Establish a consultation and disclosure system, and encourage local people to participate in major decisions about forest development. Actively consult with the local community when it comes to protecting an area for cultural, religious, economic, or ecological reasons.

• Take full account of all the unwanted effects of logging.• Develop special measures to conserve rare, threatened, or endangered

species of fauna and flora, and establish protected areas for them.• Take measures to avoid undermining the right of local people to use

legal resources.

• Request that the Information Disclosure and Consultation System is established and defined jointly with the community.

• Request information on measures taken to protect the rights of local populations.



In addition to the international legal instruments mentioned in the Guidelines for Sustainable Forestry of Chinese Enterprises:1. All non-binding instruments on forests2. United Nations Framework Convention on Climate Change


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Table 11:

“Interim Measures for the Management of Overseas State-Owned Property Rights of Chinese State-Owned Enterprises”

Issued by: State-owned Assets Supervision and Administration Commission of the State Council (SASAC), July 2011

Applies to: Investments made by Chinese State-owned enterprises and their subsidiaries abroad

Objective: To strengthen the supervision of the overseas property rights of State-owned enterprises

Responsibilitiesof the parent companies to their subsidiaries operating abroad

Otheraccountability measures

• Create a system of management for overseas property rights of companies and report annually about these systems.

• Conduct annual inspections on the implementation of these guidelines by the subsidiaries abroad.

• Provide timely support to subsidiaries for the registration of their property rights. Parent companies must submit an annual report to SASAC on the status their subsidiary companies’ property rights.

• Verify the procedures related to the change in overseas property rights of state enterprises.

• If there is a need for an assessment between a parent company and its subsidiaries abroad, local professionals and international agencies with expertise and good reputations can be selected to evaluate or assess the underlying property rights. Evaluations must be included in the company’s record and should be written in Chinese.

• SASAC can perform unscheduled inspections to assess the management of overseas property rights of state-owned enterprises.

• Ask for clarification on the parent companies’ responsibilities related to the environmental and social impacts caused by the subsidiary’s project operations, as well as the environmental liabilities acquired when taking over or merging with a new company.

• Request information from SASAC if there are doubts related to the overseas property rights of Chinese enterprises.




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Table 12:

“Interim Measures for the Supervision and Administration of Chinese State-Owned Enterprises’ Overseas Assets”

Issued by: State-owned Assets Supervision and Administration Commission of the State Council (SASAC), March 2012

Applies to: Investments outside of China by state-owned companies and their subsidiaries

Objective: To protect and enhance the state-owned companies’ assets

Principles to be followed in overseasinvestments

Accountability

Contents of Annual Investment Plan reported to SASAC

Requirements for investment in non-strategic sectors

• Improve the competitiveness of Chinese state-owned companies.• The scale of investment should be commensurate to the assets of the

company, its borrowing capacity, its ability to raise funds, and its financial adaptation

• The companies that are investing outside of China are accountable to SASAC through evaluations of their investments and through regular audits.

• Must include the total amount of foreign investment, the financing sources, and the composition of the loan.

• Must include the project description including: background, content, ownership structure, location, financing, terms, and analysis of the risks and benefits of the investment.

• Must include the project management system, the parent companies’ decision-making bodies, and the subsidiaries’ investment projects.

• Application for approval should include the main documents reflecting the decision-making, a report on the investment sector, a feasibility statement, and a due diligence report.

• Evaluation and management of investment risks.

• Require the teams conducting due diligence on the project to meet with local communities and other stakeholders.

• Provide the evaluators and SASAC with information about the environmental and social risks of the project as identified by local communities.

• Suggest corrective measures to SASAC.


CONTINUES


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Obligations of state companies operating abroad

• Conduct feasibility studies for each project.• Conduct due diligence audits of the project.• Conduct a qualitative and quantitative analysis of the project risk

assessment, including the ongoing project risks, at the completion of the project.




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Basic Principles of SocialResponsibility

Management of Corporate Responsibility

• Comply with the host country’s regulations and with China's relevant laws, and follow internationally recognized best business practices.

• Discuss proposed activities with stakeholders, take their expectations into account, and incorporate their proposed reasonable requirements into the company’s activities.

• Publicly disclose decisions and activities that have significant impact on the community and the environment.

• Establish a governing body to develop a social responsibility strategy and oversee its implementation, as well as a coordinating board that, among other functions, evaluates the environmental and social performance of the company.

• The company must publish its social responsibility policy.

• Establish CSR management systems related to planning, implementation, and review of CSR, and information disclosure.

• Train staff in CSR.• Establish indicators for assessing environmental and social impacts and

develop mitigation plans.• Stakeholders should have access to information and the ability to monitor

management activities.• Establish a system of quality certification.• Establish a plan for immediate response to accidents and timely

disclosure of information to interested parties.

• Require contractors to follow international best business practices to guide the project.

• Verify the disclosure of relevant, complete, and timely information.

• Request information about the CSR governing body and establish channels of communication with it.

• Review the CSR policy and its consistency with other Chinese guidelines, and review the obligations of the sub-contractors.

• Request information on the indicators established to assess CSR and contribute to their continuous improvement.


• Companies must respect human rights and guarantee the legal rights of both Chinese and foreign workers.

• Establish a negotiation mechanism in accordance with national laws and practices, and support employee participation in the management of the project.

• Establish mechanisms for two-way communication so as to meet, and respond to, employee expectations and employee complaints.

• Ensure that projects benefit the local community and the environment throughout the project life cycle.

• Prevent and control bribery and other forms of corruption in procurement and sub-contracts.

• Integrate CSR concepts and practices in the supply chain and into sub-contractors’ work; and provide them with training opportunities in CSR.

• Whenever possible, give priority to purchasing local products and services.

• Improve the company’s transparency according to legal requirements and contractual arrangements, and thus create a transparent environment for the industry.

• Establish long-term anti-corruption systems and mechanisms to root out corruption and other unfair competition practices.

• Invite specialized institutions to create an environmental management system.

• Carry out EIAs before construction of the project. Assess the risks and impacts of project activities with respect to risk management and sustainable development and take preventive measures.

• Establish an environmental management department or position, identify goals and schemes for environmental protection, and check environmental performance regularly.

• Request information about the instruments, which should be available to the community and stakeholders, in order to monitor them.

• Request information on the quality certification system, and contribute to its constant improvement.

• Request information on measures that the company is taking to ensure respect for the rights of Chinese and foreign workers.

• Propose that the company and stakeholders jointly build a negotiation mechanism.

• Ask the company to report on the mechanism for two-way communication between the company and its employees.

• Ask the company to report on its plan for the entire project cycle in order to ensure community benefits.

• Ask the company to publicly reveal the steps it will take to prevent bribery and other forms of corruption.

• Propose specific mechanisms to allow the community to effectively participate in the EIA.

• Promote the use of renewable and clean energy by using resources, including energy, raw materials, land, and water more efficiently.

• Improve waste recycling and recovery.• Integrate climate change adaptation into decision-making. Take action

to reduce greenhouse gases and to reduce the impacts of climate change.

• Protect precious flora and fauna, and prevent the project from impacting biological diversity.

• Pay attention to the care of ecological systems such as wetlands, wildlife trails, protected areas, and farmlands. If the project causes ecological damage, actions to restore the area must be taken in a timely manner.

• Communicate information related to the project and respond to suggestions from all stakeholders.

• Develop community plans.• Provide maximum job opportunities for communities

• Develop and complete forms for self-evaluation.

• Ask the employer to publicly report on the efficient management of natural energy resources, clean technology, recycling, and waste management.

• Confirm that the company promptly responds to stakeholders’ suggestions.

CONTINUES

Table 13:

“Guide on Social Responsibility for the Chinese International Project Contracting Industry”

Issued by: China International Contractors Association, September 2012

Applies to: The Guide applies to all relevant activities of Chinese companies operating in overseas project contracting, as well as all relevant activity that takes place in China to support the contracting of overseas projects

Objective: To improve the environmental and social performance of Chinese companies abroad


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Rights

Responsibility

FairCompetition

Environmental Management
































CONTINUES


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Community Relations

Evaluation














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Principles

Specificmeasures

• Cooperate based on the principle of mutual benefit.• Protect the rights of workers, provide employment opportunities to local

residents, and respect the local communities’ culture, religion, and traditions.

• Understand and comply with the host country’s environmental laws and regulations.

• Obtain environmental permits from national authorities.• Establish guidelines to strengthen environmental management and

provide training to employees.

• A due diligence visit and assessment should be conducted before acquiring companies, and particular emphasis should be placed on examining the negative effects of past operations and other environmental liabilities.

• Develop a management plan for the hazardous waste that will be generated during production and operation.

• Design crisis management plans to use in case of accidents and establish reporting and communication systems to report to the local government, environmental agencies, the potentially affected people, and the parent company management.

• Buy insurance against environmental pollution to reasonably diversify risks of environmental accidents.

• Prioritize protecting areas where plant and wildlife resources may be affected by the operation’s activities.

• Conduct ecological restoration to counter the negative impact of the operation’s activities.

• Ask the company to disclose the measures taken to respect the rights of workers and local communities.

• Establish contacts with people who conduct due diligence visits.

• Request information on accident management plans and community communication plans.

• Request information on their pollution insurance and ensure that damage to the community is covered.

• Tell the companies which areas should be prioritized as areas for the protection of flora and fauna.

• Ask the company to disclose guidelines aimed at strengthening environmental management and its hazardous waste management plan.


• Prioritize the "green purchasing" of environmentally friendly products and get "environmental credits" for the products purchased.

• Companies must study and learn the principles, standards, and practices adopted by international organizations and multilateral financial institutions.

• Periodically publish its environmental information such as the company’s plans, implementation, and performance to comply with environmental and social laws and regulations.

• Establish communication links with local communities and organizations in relation to the companies’ environmental and social responsibilities so as to present a positive image of the companies.

• Seek advice from national and local environmental monitoring agencies.

• Ask the company to publicly disclose their “green” and “non-green” purchase reports.

• Monitor the "quality" of communication with local populations and suggest improvements.

• Follow up on the company’s periodic environmental publications.

CONTINUES

Table 14:

“Guidelines on Environmental Protection in Investment and External Cooperation”

Issued by: Ministry of Commerce, February 2013

Applies to: Chinese companies working on projects abroad

Objective: To support companies in fulfillment of their social responsibility to protect the environment, identify and prevent environmental risks in a timely manner, create a positive image of Chinese companies abroad, and support sustainable development in host countries.


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• Cooperate based on the principle of mutual benefit.• Protect the rights of workers, provide employment opportunities to local

residents, and respect the local communities’ culture, religion, and traditions.

• Understand and comply with the host country’s environmental laws and regulations.

• Obtain environmental permits from national authorities.• Establish guidelines to strengthen environmental management and

provide training to employees.

• A due diligence visit and assessment should be conducted before acquiring companies, and particular emphasis should be placed on examining the negative effects of past operations and other environmental liabilities.

• Develop a management plan for the hazardous waste that will be generated during production and operation.

• Design crisis management plans to use in case of accidents and establish reporting and communication systems to report to the local government, environmental agencies, the potentially affected people, and the parent company management.

• Buy insurance against environmental pollution to reasonably diversify risks of environmental accidents.

• Prioritize protecting areas where plant and wildlife resources may be affected by the operation’s activities.

• Conduct ecological restoration to counter the negative impact of the operation’s activities.

• Ask the company to disclose the measures taken to respect the rights of workers and local communities.

• Establish contacts with people who conduct due diligence visits.

• Request information on accident management plans and community communication plans.

• Request information on their pollution insurance and ensure that damage to the community is covered.

• Tell the companies which areas should be prioritized as areas for the protection of flora and fauna.

• Ask the company to disclose guidelines aimed at strengthening environmental management and its hazardous waste management plan.

Information and Accountability

• Prioritize the "green purchasing" of environmentally friendly products and get "environmental credits" for the products purchased.

• Companies must study and learn the principles, standards, and practices adopted by international organizations and multilateral financial institutions.

• Periodically publish its environmental information such as the company’s plans, implementation, and performance to comply with environmental and social laws and regulations.

• Establish communication links with local communities and organizations in relation to the companies’ environmental and social responsibilities so as to present a positive image of the companies.

• Seek advice from national and local environmental monitoring agencies.

• Ask the company to publicly disclose their “green” and “non-green” purchase reports.

• Monitor the "quality" of communication with local populations and suggest improvements.

• Follow up on the company’s periodic environmental publications.


Prepared by Paulina Garzón


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Table 15:

Guiding Opinions on Credit Issuance for Energy Conservation and Emission Reductions

Issued by: China Banking Regulatory Commission, November 2007

Applies to: Agencies that regulate banks, state-owned commercial and policy banks, commercial banks with joint shareholding, financial companies, and cooperatives, among others.

Objectives: Limit the financing of highly polluting and energy-intensive projects


Requirements to meet the national policy to reduce energy consumption

Policies for granting credit

• Banks should take a project’s energy consumption and pollution into consideration when deciding whether to issue a credit to the project.

• Banks should closely monitor credits by evaluating the project’s compliance with environmental standards, energy savings goals, strengthening communication with environmental authorities, and collecting and publishing data on energy consumption and remediation actions for pollution emissions, among others.

• Banks should consider it their social responsibility to know how to measure impacts related to the environment and energy consumption of certain projects.

• Financial institutions should familiarize themselves with appropriate mechanisms for working with projects involving high energy consumption and environmental impacts, and should properly train staff on these issues.

• If the projects pertain to restricted sectors or industries or ones that will be eliminated in the future, financial institutions should restrict or reject credits for such projects.

• Sanction industries that do not improve their levels of energy conservation and do not reduce pollution levels by restricting credits. Reward and help industries that are improving, and consider increasing financial support to them.

• Ask the bank to draft an assessment prior to credit approval.

• Ensure that the bank carries out supervision of the credit issued and that all information relevant to local communities is made public.

• Take advantage of on-site bank visits and auditor visits to provide information relevant to them on the protection of communities and their territories, and ensure that these are taken into account.

• Require companies that build and operate projects to prove they have a full knowledge of national legislation that protects the environment and the rights of communities.

• Request information from banks about the economic measures it will take to ensure that there are sufficient funds to prevent and mitigate environmental and social impacts.



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Table 16:

“Guidelines for Social Responsibility in Overseas Mining Investment”

Issued by: Chinese Chamber of Commerce of Metals, Minerals and Chemicals. The formulation of these guidelines was supported by the Sino- German Bilateral Project on Corporate Social Responsibility and Multinational Project Markets Network for Sustainability 2014

Applies to: Exploration, extraction, processing and investment cooperation projects, and any activity that has a license, permit, concession, or a similar legal agreement in the extractive industries sectors that has been legally obtained in whole or in part by a Chinese company.

Objective: To provide detailed guidance for Chinese companies operating in the mining sector and to establish control mechanisms and implementation systems and tools to meet the requirements set forth in these guidelines

Specific Themes • Set goals and policies to comply with these guidelines and create a department or mechanism to implement and control them that includes monitoring systems and environmental and social indicators. Also to comply with these guidelines, companies should train employees and strengthen transparency by publicly delivering relevant (unbiased) information in a timely manner.

• To ensure adequate control, companies should develop an independent audit system, internal control systems, due diligence procedures, risk management systems, and protection mechanisms for whistleblowers; and should report all payments that have been made to government agencies in each country of operation, including both payments in kind and payments in infrastructure. In addition, companies must train employees on national and company guidelines.

• Identify, prevent, mitigate, and correct negative impacts on human rights and observe the UN Guiding Principles on Business and Human Rights. Allow a third party audit of transactions. Establish special control measures in areas affected by armed conflict.

• Protect the free, prior, and informed consent rights of local communities, including indigenous peoples’ communities, in new projects (and on changes in existing projects).

• Ask the company about the specific instruments that have been established to implement these Guidelines.

• Check for the establishment of grievance mechanisms and whistleblower protection.

• Require disclosure of payments made to government institutions.

• Check that the company has respected the right to free, prior and informed consent for new operations.

• Request the company to establish "no-go-areas" when necessary, and verify the absence of new mining activities in UNESCO protected sites.

• Request copies of reports submitted to the legal authorities and the Chinese parent companies.


• Protect the rights of employees by establishing a mechanism for collective bargaining and a grievance mechanism. Respect the right to freedom of association. Establish a set of occupational safety and health guidelines and a committee to assess working conditions, and investigate and document health and safety incidents.

• Proactively report on the environmental impacts of the project to local authorities, parent companies in China, and the public.

• Protect biodiversity throughout the life of the project, in the supply chain, and in infrastructure works related to the project.

• Consider establishing "no-go-areas," and not conducting projects in UNESCO sites or other legally protected areas. In the case of mines already established in these areas, companies must ensure that they are not a threat to the integrity of the area.

• Establish a grievance mechanism that is legitimate, accessible, predictable, equitable, transparent, and consistent with recognized rights by ensuring that the right to access other legal mechanisms is not affected. People using the mechanism may request and be granted anonymity for their protection.

The Chinese Chamber of Commerce of Metals, Minerals and Chemicals must:

• Disseminate the Guidelines to the public and promote international exchanges • Train companies to strengthen their capacity to implement the Guidelines • Evaluate companies on their compliance with the Guidelines and best practices referred to in the Guidelines (the Guidelines refer to 23 international standards such as the Extractive Industries Transparency Initiative, the UN Global Compact, the ILO, Standards of the International Council of Mining and Metals, etc.) and report the findings regularly.

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• Set goals and policies to comply with these guidelines and create a department or mechanism to implement and control them that includes monitoring systems and environmental and social indicators. Also to comply with these guidelines, companies should train employees and strengthen transparency by publicly delivering relevant (unbiased) information in a timely manner.

• To ensure adequate control, companies should develop an independent audit system, internal control systems, due diligence procedures, risk management systems, and protection mechanisms for whistleblowers; and should report all payments that have been made to government agencies in each country of operation, including both payments in kind and payments in infrastructure. In addition, companies must train employees on national and company guidelines.

• Identify, prevent, mitigate, and correct negative impacts on human rights and observe the UN Guiding Principles on Business and Human Rights. Allow a third party audit of transactions. Establish special control measures in areas affected by armed conflict.

• Protect the free, prior, and informed consent rights of local communities, including indigenous peoples’ communities, in new projects (and on changes in existing projects).

• Ask the company about the specific instruments that have been established to implement these Guidelines.

• Check for the establishment of grievance mechanisms and whistleblower protection.

• Require disclosure of payments made to government institutions.

• Check that the company has respected the right to free, prior and informed consent for new operations.

• Request the company to establish "no-go-areas" when necessary, and verify the absence of new mining activities in UNESCO protected sites.

• Request copies of reports submitted to the legal authorities and the Chinese parent companies.


Implementation

• Protect the rights of employees by establishing a mechanism for collective bargaining and a grievance mechanism. Respect the right to freedom of association. Establish a set of occupational safety and health guidelines and a committee to assess working conditions, and investigate and document health and safety incidents.

• Proactively report on the environmental impacts of the project to local authorities, parent companies in China, and the public.

• Protect biodiversity throughout the life of the project, in the supply chain, and in infrastructure works related to the project.

• Consider establishing "no-go-areas," and not conducting projects in UNESCO sites or other legally protected areas. In the case of mines already established in these areas, companies must ensure that they are not a threat to the integrity of the area.

• Establish a grievance mechanism that is legitimate, accessible, predictable, equitable, transparent, and consistent with recognized rights by ensuring that the right to access other legal mechanisms is not affected. People using the mechanism may request and be granted anonymity for their protection.

The Chinese Chamber of Commerce of Metals, Minerals and Chemicals must:

• Disseminate the Guidelines to the public and promote international exchanges • Train companies to strengthen their capacity to implement the Guidelines • Evaluate companies on their compliance with the Guidelines and best practices referred to in the Guidelines (the Guidelines refer to 23 international standards such as the Extractive Industries Transparency Initiative, the UN Global Compact, the ILO, Standards of the International Council of Mining and Metals, etc.) and report the findings regularly.



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Table 17:

“China Banking Association Corporate Social Responsibility Guidelines for Financial Institutions”

Issued by: China Banking Association, July 2009

Applies to: Chinese Financial Institutions

Objective: To improve the environmental and social performance of Chinese financial institutions

International Guidelines

Implementation

• Apply the Equator Principles, as a reference, to Chinese economic and financial development. The Industrial and Commercial Bank of China (ICBC) is the only Chinese bank that has adopted the Equator Principles.

• Take into account other international treaties and practices and guidelines followed internationally as best practice.

• Develop business strategies, policies, and procedures to optimize the location of resources to support sustainable development.

• Establish environmental protection agencies or departments (with the necessary staff).

• Develop plans for the conservation and protection of resources, and then train employees.

• Support clients making efforts to preserve natural resources and to protect the environment through loans and other financial tools; provide guidance and increase awareness of social responsibility; provide environmentally-focused customer training including procedures for assessing the environmental impact of specific operations; and prepare customers for access to green credit.

• Advocate for decisions to be made based on scientific studies and not exclusively on the EIA and customer-generated information.

• Check the progress the CDB is making to incorporate the Equator Principles in projects, e.g. establishing grievance mechanisms and creating a system to categorize projects based on their environmental and social impacts.

• Request information and suggest international instruments that Chinese banks should take into account.

• Request information about Chinese banks’ CSR and environmental protection departments (location, managers, business plan, etc.) and establish channels of communication with them.

• Send information to Chinese banks before they make their loan decisions.




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Table 18:

“Notification of the China Banking Regulatory Commission on the issuing of the Guidance on Commercial Banks’

Management of Reputational Risks”Issued by: China Banking Regulatory Commission (CBRC), August 2009

Applies to: State-owned commercial banks; joint-venture banks, and wholly foreign-owned banks established in China. Banks should implement their reputational risk management policies according to the Guidance.

Objective: To guide Chinese banks to develop a tool for effective management of reputational risks to protect their financial stability and market confidence.

Obligations of the Bank’s Board of Directors

Systems,departments, and reputational risk mechanisms should include, among other things, at least:

• The Bank’s Board of Directors must ensure that reputational risk policies exist and that there is a department responsible for the management of reputational risks that has necessary resources; that the Bank nurtures a reputational risk management culture across all Bank departments, which all have distinct roles; and that the Bank trains employees in this area.

• Capacity to conduct regular research and analysis on reputational risk.• Classification and quantification of reputational risks.• Management of complaints, and monitoring and evaluation of reputational risk.• Specialized management processes for the delivery of information and for

monitoring the means of communication.• Management of information disclosure to provide accurate and timely

information to the public, take initiative to actively listen to the views of the public, and provide support for ordinary news reports.

• Establishment of a system of rewards and punishments for the internal management of reputational risk.

• Performance of subsequent evaluations of reputational risk management, and evaluations of the effectiveness of measures taken in response to events impacting the Bank’s reputation.

• Request information about the CDB’s, CEIB’s, and other banks’ reputational risk management policies and activities, and the personnel in the Reputational Risk Management Department and their activities and responsibilities with respect to overseas projects.

• Provide information about the development of a project to the agency responsible for conducting the reputational risk analysis.

• Verify the existence of a specialized management process for the delivery of timely and complete information.


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Relevant measures in case ofemergency

Responsibilities

• Implement a contingency plan to address serious reputational risks.• Appoint a special task force and authorities to be in charge and ensure

they have clear responsibilities.• Provide information to the public in a timely, appropriate, open,

transparent, and effectively managed manner.• Report to the CBRC within 12 hours of the incident and to other relevant

departments in a timely manner.• Promptly send reports on risk elimination and assessment to the CBRC

headquarters as well as to local offices.

• The CBRC and its local offices will be responsible for overseeing commercial banks’ reputational risk management and may demand that these banks make corrections in a timely manner if they come across problems during monitoring activities.


Note: “Reputational risks” refer to negative comments from interested parties regarding the operations of commercial banks or arising from external events. Events are regarded as serious risks where reputational risks cause major losses, market volatility, activation of systemic risks, or when they influence the economic and social stability of the project.


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Levels of responsibility for the definition, implementation and evaluation of the Green Credit Directive

Procedures and instruments to be developed by banks

• The CBRC is responsible for regulating and supervising the banking institutions’ green credit business, as well as managing environmental and social risks.

• Banks should establish appropriate systems, promote "green offices," and improve their management, which must establish environmental and social risk evaluation and monitoring systems.

• The Bank’s Board of Directors must provide a green credit development strategy as well as approve the green credit report that senior management presents to it annually. Senior management should develop mechanisms and procedures for the implementation of green credit with a reward and punishment compliance system and an official or department endowed with the necessary resources to implement green credit activities. When needed, an inter-departmental committee can be created to help coordinate the activities.

• A list of clients facing major environmental and social risks should be prepared; and the bank should request that these clients develop response plans for major risks and a stakeholder communication plan.

• Request that Chinese banks that finance overseas projects to disclose their green credit policy and report on departments and activities planned to implement such policies.

• Provide relevant information to the CBRC, the CDB, and the CEIB to assist with the preparation of lists of companies that have environmental and social problems in their operations.

• Request information on evaluation criteria for environmental and social risk management and compliance verification for a given project.

• Request that due diligence missions meet with local communities and other interested stakeholders.


• Banks shall develop evaluation criteria for environmental and social risk assessment, procedures to easily classify clients’ environmental and social risks, and then should consider the results as an important basis for the credit rating, access, management, and project closure. Additionally, measures must be developed related to loan investigation, inspection and review, loan assessment, and economic capital allocation.

• Banking institutions should strengthen due diligence in credit granting; and such measures to do so must ensure the due diligence is complete, thorough, and detailed.

• The client must prepare a compliance verification checklist for the environmental and social requirements of the loan.

• Noncompliance related to environmental and social performance could be grounds for denial of credit or suspension of disbursements.

• For clients who face greater environmental and social risks, the loan contract should include clauses that require clients to submit environmental and social reports, declare that they will strengthen their environmental and social risk management systems, and that they will accept lender supervision. Banks should include clauses outlining the remedies they can use in the event the borrower fails to comply with measures to address environmental and social risk.

• For loans that have been approved, all stages of the project (including design, development, construction, completion, operation, and closure) should be subject to an environmental impact assessment.

• The bank’s management should be strengthened prior to granting the loan. It should closely monitor the impact of national policies on the client’s operations, engage in dynamic analysis, and make timely adjustments to the reservation provisions and amortization of losses

• Suggest to Chinese banks that environmental and social clauses should be included in the contract for specific projects.

• Establish channels of communication with the authorities and personnel in banking institutions who are responsible for the assessment and monitoring of environmental and social issues.

• Banks must inform the competent authorities when events with higher environmental and social impacts occur or may potentially occur.

• Bank supervisors, at all levels, should strengthen monitoring efforts and improve the monitoring system through offsite and onsite project indicators.

• Banks must make assessments on green credit at least once every two years and submit self-assessments to the competent authorities.

• The green credit strategies and policies should be publicly available and must be disclosed during activities involving significant environmental and social risks.

• The banks must disclose relevant information in accordance with the host country’s laws and regulations and be subject to stakeholder supervision. When necessary, an independent, eligible third party can be hired to evaluate or audit the activities of the banking institution in the performance of its environmental and social responsibilities.

CONTINUES

Table 19:

“Green Credit Directive”

Issued by: China Banking Regulatory Commission (CBRC), February 2012

Applies to: Trade policy banks and state-owned banks, commercial banks in which the state owns shares, financial asset management companies, and other local financial institutions.

Objective: To encourage banking institutions, through green credit, to adjust their credit structure to avoid environmental and social risks in project financing.


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• Request that Chinese banks that finance overseas projects to disclose their green credit policy and report on departments and activities planned to implement such policies.

• Provide relevant information to the CBRC, the CDB, and the CEIB to assist with the preparation of lists of companies that have environmental and social problems in their operations.

• Request information on evaluation criteria for environmental and social risk management and compliance verification for a given project.

• Request that due diligence missions meet with local communities and other interested stakeholders.









• Suggest to Chinese banks that environmental and social clauses should be included in the contract for specific projects.

• Establish channels of communication with the authorities and personnel in banking institutions who are responsible for the assessment and monitoring of environmental and social issues.






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Delivery of Information









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EIA

Standards

Rights

Participation

Enforceability

• The EIA should be completed in the review process prior to the commencement of the project, in order to monitor the environmental impacts after the loan (ex-ante) and after the completion (ex-post) of the project.

• The borrower or the project owners must present the EIA and all approval documentation issued by the relevant national authorities to the bank. Then, the CEIB reviews the loan application documents and can hire independent experts when necessary. After this, and based on the environmental and social assessments, the CEIB begins negotiations with the borrowers or project owners.

• When completing the project, the project owner must submit the environmental approval documents to the Bank in accordance with national regulations.

• The CEIB uses the host country’s environmental policies as its basis for evaluation, and when they are not sufficient, the CEIB uses either Chinese or international guidelines.

• Respect the communities’ land rights and their rights to resources, and properly handle problems related to resettlement.

• Consult the communities and other stakeholders when there are likely serious environmental or social impacts.

• CEIB can decide to require the inclusion of environmental and social responsibilities in the loan contract in order to better monitor environmental and social compliance.

• Actively participate in the EIA before the loan is approved. For this, the project owner must work with the CEIB and identify the team behind the project so it can be disclosed to the public.

• Ensure that the project’s development plans respect the rights of local communities and comply with the established resettlement policies (the CEIB has welcomed the World Bank’s resettlement policy).

• Suggest to the CEIB the environmental and social measures that should be included in the contract.

• Inform the CEIB and the CBRC why a project should not be undertaken for environmental and social reasons.

• Identify CEIB staff who will be responsible for overseeing the project.


• Monitor the operation and construction of the project based on the results of the environmental and social assessment.

• The borrower or project owner must report to the CEIB about all the environmental and social impacts of the project, as well as the status of the implementation of measures to mitigate and eliminate such impacts.

• Inspect the post-loan project management, including the environmental and social aspects.

• The CEIB has the right to stop disbursement of a loan and require the repayment of advances when the project owner fails to take appropriate measures to eliminate serious environmental and social impacts.

CONTINUES

Table 20:

“Guidelines for Environmental and Social Assessments for Project Loans from the China Export-Import Bank”

Issued by: China Export-Import Bank, August 2007

Applies to: The CEIB’s processing of loans

Objective: To support the implementation of national strategies for responsible development; to promote economic, social, and environmental development; and to effectively control credit risks.


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• The EIA should be completed in the review process prior to the commencement of the project, in order to monitor the environmental impacts after the loan (ex-ante) and after the completion (ex-post) of the project.

• The borrower or the project owners must present the EIA and all approval documentation issued by the relevant national authorities to the bank. Then, the CEIB reviews the loan application documents and can hire independent experts when necessary. After this, and based on the environmental and social assessments, the CEIB begins negotiations with the borrowers or project owners.

• When completing the project, the project owner must submit the environmental approval documents to the Bank in accordance with national regulations.

• The CEIB uses the host country’s environmental policies as its basis for evaluation, and when they are not sufficient, the CEIB uses either Chinese or international guidelines.

• Respect the communities’ land rights and their rights to resources, and properly handle problems related to resettlement.

• Consult the communities and other stakeholders when there are likely serious environmental or social impacts.

• CEIB can decide to require the inclusion of environmental and social responsibilities in the loan contract in order to better monitor environmental and social compliance.


Supervision • Monitor the operation and construction of the project based on the results of the environmental and social assessment.

• The borrower or project owner must report to the CEIB about all the environmental and social impacts of the project, as well as the status of the implementation of measures to mitigate and eliminate such impacts.

• Inspect the post-loan project management, including the environmental and social aspects.

• The CEIB has the right to stop disbursement of a loan and require the repayment of advances when the project owner fails to take appropriate measures to eliminate serious environmental and social impacts.

• Establish communication channels with the authorities and staff responsible for the assessment and monitoring of environmental and social issues.



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Preparation and construction of the project

• The borrower is responsible for preparing the EA, conducting public consultation, and providing information to the public. The borrower must demonstrate to the CEIB that the project complies with Chinese pollution guidelines and the Chinese EA requirements. The CEIB is responsible for project review, including reviewing feasibility studies, the public consultation record, and details of public information in the EA.

• Companies responsible for project operation must submit: an operating license and any other authorization documents from the host government, copies of environmental permits, and a copy of the letter of approval of the EIA. The CEIB can deny loan approval based on the existence of significant environmental liabilities on the company’s record.

• The CEIB may categorize a project as A, B, or C depending on the potential environmental and social impacts. For Category A and B projects, conducting an EIA and a Table EIA (a Chinese environmental instrument) will be required. In these instances, the company must submit an Environmental Management Plan (EMP) as well. In some instances, a Category B project may have less comprehensive environmental requirements. There are no EIA requirements for Category C projects (no likely environmental and social impacts).

• The EMPs should consider mitigation measures by applying the more stringent standard between the World Bank and Chinese guidelines. The draft EMP should be publicly disclosed.

In addition to the tools described in relation to the "Guidelines for Environmental and Social Assessment for Project Loans from the China Export-Import Bank:"

• Conduct a self-assessment of the environmental and social impacts of the project to establish whether the CEIB assessment is adequate and the categorization of the project is appropriate.

• Request analysis of the "no project" option.

• Request that national standards are used if they are deemed to be better than the CEIB, the World Bank, and the Chinese standards.

• Ask the CEIB for information about all project visits and coordinate meetings with them.


• All projects that require an EIA should include public consultations and all documents and procedures used must be reported to the CEIB. The consultation must follow the World Bank’s public consultation criteria. The CEIB may request that a new public consultation take place if it believes that the first was not done according to the established criteria.

• Category B projects requiring only a Table EIA need not conduct consultations. However, if the project is subject to World Bank standards, and those say the public needs to be consulted, then the company must have a public consultation.

• After conducting the consultation on the EMP, the company must report the details of the consultation to the CEIB to consider as part of the loan approval process.

• The loan agreement must include a condition requiring the borrower to implement the EMP.

• During the bidding process, it is the borrower’s responsibility to ensure that all the EMP’s requirements have been included in the bid documents. The CEIB has the right to review the documents.

• During the implementation phase, the borrower is responsible for implementing all operations under the EMP. The CEIB has the right to make inspection visits to verify compliance.

• The CEIB is responsible for supervising the borrower.• The borrower must report on its environmental performance as part of its

regular reporting activities, including whether there have been significant environmental impacts and, if so, the measures that were taken.

CONTINUES

Table 21:

“China Export-Import Bank - Environmental Management Framework”

Issued by: China Export-Import Bank, January 2011

Applies to: These guidelines originally were established for energy efficiency projects in China. Currently, this Environmental Management Framework is also being used for projects abroad and in other sectors, such as infrastructure.

Objective: To guide the CEIB as to the criteria to be considered for the Environmental Assessments (EA) of projects to be financed.


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• The borrower is responsible for preparing the EA, conducting public consultation, and providing information to the public. The borrower must demonstrate to the CEIB that the project complies with Chinese pollution guidelines and the Chinese EA requirements. The CEIB is responsible for project review, including reviewing feasibility studies, the public consultation record, and details of public information in the EA.

• Companies responsible for project operation must submit: an operating license and any other authorization documents from the host government, copies of environmental permits, and a copy of the letter of approval of the EIA. The CEIB can deny loan approval based on the existence of significant environmental liabilities on the company’s record.

• The CEIB may categorize a project as A, B, or C depending on the potential environmental and social impacts. For Category A and B projects, conducting an EIA and a Table EIA (a Chinese environmental instrument) will be required. In these instances, the company must submit an Environmental Management Plan (EMP) as well. In some instances, a Category B project may have less comprehensive environmental requirements. There are no EIA requirements for Category C projects (no likely environmental and social impacts).

• The EMPs should consider mitigation measures by applying the more stringent standard between the World Bank and Chinese guidelines. The draft EMP should be publicly disclosed.

Implementation of the Project

• All projects that require an EIA should include public consultations and all documents and procedures used must be reported to the CEIB. The consultation must follow the World Bank’s public consultation criteria. The CEIB may request that a new public consultation take place if it believes that the first was not done according to the established criteria.

• Category B projects requiring only a Table EIA need not conduct consultations. However, if the project is subject to World Bank standards, and those say the public needs to be consulted, then the company must have a public consultation.

• After conducting the consultation on the EMP, the company must report the details of the consultation to the CEIB to consider as part of the loan approval process.

• The loan agreement must include a condition requiring the borrower to implement the EMP.

• During the bidding process, it is the borrower’s responsibility to ensure that all the EMP’s requirements have been included in the bid documents. The CEIB has the right to review the documents.

• During the implementation phase, the borrower is responsible for implementing all operations under the EMP. The CEIB has the right to make inspection visits to verify compliance.

• The CEIB is responsible for supervising the borrower.• The borrower must report on its environmental performance as part of its

regular reporting activities, including whether there have been significant environmental impacts and, if so, the measures that were taken.

Themes Possible ApplicationsHighlights


Note: The EA is an environmental assessment for the initial filing of the project. When the CEIB accepts it, the borrowing company or lender must submit a complete EIA as well as an EMP.


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Table 22:

“China Export-Import Bank - Resettlement Policy Framework”

Established by: China Export-Import Bank, January 2011

Applies to: Originally, these guidelines were established for energy efficiency projects in China. Currently, this Resettlement Policy Framework is also used for projects abroad and in other sectors, such as infrastructure.

Objective: To guide the CEIB on the criteria to be taken into account when it finances projects that require the purchase of land and the resettlement of the population. The CEIB makes reference to the World Bank Operational Policy 4.12.*

Objectives

Principles

• Every effort will be made to avoid resettlement of the population. When resettlement is unavoidable, the CEIB and project owner must ensure that displaced people are given sufficient opportunities to improve, or at least restore, their incomes and living conditions to what they were prior to resettlement.

• Compensation costs are defined as follows: for cropland, land value is calculated by taking into account the characteristics of the land, plus the cost of ensuring the new land is at a level similar to the expropriated land, plus the transaction cost, and plus the transfer of taxes; for land in urban areas, it is the same procedure, but the public infrastructure and facilities of the expropriated lands are taken into account as well; for houses and other structures, they must consider the costs of building a new structure to ensure that it is the same, similar, or better than the expropriated house or structure, and that takes into account the repairs needed including the cost of transporting building materials, labor, and other expenses; and the loss of walls, wells, tombs, etc. should also be compensated.

• It is not necessary to have title to the land to be considered a displaced person, but one must have the "right to use" the land or other assets associated with displacement.

• Seek advice to make an assessment of losses from displacement and resettlement and establish what is negotiable and what is not, so as to be prepared for negotiations with the company.

• Request clear information about the project with real timelines and details of the benefits the local people will receive.

• Ensure that a monitoring system and necessary indicators are established. Likewise, it is essential that the grievance mechanism is neutral and has the necessary power over the company to institute changes.


• They should make every effort to replace arable land with arable land.• The measures and compensation must be taken prior to displacement.

Displaced persons should be compensated for the costs of moving, and receive temporary benefits until they can resume their normal activities.

• Community services should be maintained or improved after resettlement.

• The resettlement process should be monitored and grievance mechanisms should be established for displaced people to make complaints and access information.

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• Every effort will be made to avoid resettlement of the population. When resettlement is unavoidable, the CEIB and project owner must ensure that displaced people are given sufficient opportunities to improve, or at least restore, their incomes and living conditions to what they were prior to resettlement.

• Compensation costs are defined as follows: for cropland, land value is calculated by taking into account the characteristics of the land, plus the cost of ensuring the new land is at a level similar to the expropriated land, plus the transaction cost, and plus the transfer of taxes; for land in urban areas, it is the same procedure, but the public infrastructure and facilities of the expropriated lands are taken into account as well; for houses and other structures, they must consider the costs of building a new structure to ensure that it is the same, similar, or better than the expropriated house or structure, and that takes into account the repairs needed including the cost of transporting building materials, labor, and other expenses; and the loss of walls, wells, tombs, etc. should also be compensated.

• It is not necessary to have title to the land to be considered a displaced person, but one must have the "right to use" the land or other assets associated with displacement.


• They should make every effort to replace arable land with arable land.• The measures and compensation must be taken prior to displacement.

Displaced persons should be compensated for the costs of moving, and receive temporary benefits until they can resume their normal activities.

• Community services should be maintained or improved after resettlement.

• The resettlement process should be monitored and grievance mechanisms should be established for displaced people to make complaints and access information.


*Note: The World Bank is currently updating its Environmental and Social Policy Framework and environmental and social safeguards, including its resettlement policy (OP 4.12).


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Part III:

Address Book


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CHINESE PUBLIC INSTITUTIONS

State-owned Assets Supervision andAdministrationCommission of the State Council (SASAC)www.sasac.gov.cn

International Association of Chinese Contractors

www.chinca.org

China BankingRegulatory Commission

www.cbrc.gov.cn

National Development and Reform Commission

en.ndrc.gov.cn

Address:No. 26, Xidajie, Xuanwumen, Xicheng District, Beijing, 100053 Tel: 86-10-63192000 Email: [email protected]

Address:No. 2 Dongzhimen, Dongcheng District, Beijing China, 100007 Email: [email protected]

Address:Jia No.15 Financial Street, Xicheng District, Beijing China, 100140 Tel: 86-10-66270113

Address:38 S. Yuetan Street, Beijing China, 100824Email: [email protected]

Jiang Jiemin President

Diao ChunhePresident

Sahng Fulin President

Xu Shaoshi President

On the website, there is a link that lists the companies

N/D

Supervision Department Rules and Regulations

InternationalDepartment

Instance todenounceirregularities

Department ofInternationalCooperation

Department of Environmental Protection and Resource Conservation

Department of Foreign Capital and Investments Abroad

http://en.sasac.gov.cn/

N/D

Tel: 86-10-66279638

Tel: 86-10-66278917

www.cbrc.gov.cn/showWhist.do

Tel: 86-10-68502964 Fax: 86-10-68502117en.ndrc.gov.cn/mfdic/

N/D

N/D

Institution Contact ContactInformation

ContactInformation

RelevantDepartments

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Ministry of ForeignAffairs

www.fmpr.gov.cn

Address:2 Chaoyangmen Outer St., Chaoyang, Beijing, ChinaTel: 86-10-65962700

Wang YiMinister

Every Chinese embassy abroad has an economic advisor who oversees matters relating to Chinese investments and performance of Chinese enterprises in the country

The name and email address of the Economic Adviser is generally available on the website of the Chinese embassy in each country. It is also available on the website of the Ministry of Commerce of China under the Commercial Office subsection, located at: http://english.mofcom.gov.cn/

Institution Contact ContactInformation

ContactInformation

RelevantDepartments

State Council

english.gov.cn

Ministry of Water Resources

www.mwr.gov.cn/english/

Ministry of Commerce

spanish.mofcom.gov.cn/

Tel: 86-10-88050813Fax: 86-10-63070900 [email protected]

Tel: 86-10-63202114Email: [email protected]

Address:No.2 Dong Chang'an Avenue, Beijing China, 100731 Tel: 86-10-51651200-625Fax: 86-10-65677512

Li KenqiangPrime Minister

Mr. Chen LeiMinister

Gao Hucheng Minister

Office of International Business

Department of International Cooperation, Science and Technology

Department ofInternational Economic Cooperation and Investments Abroad

He HaifengDirectorTel: 86-10-68327530

N/D

Li JianzaoCharge of Supervision Department

Tel: 86-10-65197173Fax: 86-10-65197992Website:english.mofcom.gov.cn/departments/hzs2/


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CHINESE BANKS


english.eximbank.gov.cn/

China Development Bank

http://www.cdb.com.cn/english/

Industrial and CommercialBank of China

http://www.icbc.com.cn/ICBC/sy/

Li Ruogu President

Chen Yuan Executive Manager

Zhou QingyuComplaint Bureau Chief

Xu QiyingHead of the Office of Risk Assessment

Hu HuaibangPresident of the Project Unit for LatinAmerica

Jiang JianqingChairman of the Board

Yi HuimanPresident

Address:No. 30, Fuxinmennei Street XiCheng District, Beijing P.R. China 100031 Tel: 86-10-8357 9988 Fax: 86-10-6606 0636

Address:No. 18 Fuxingmennei Street, Xicheng District, Beijing,China, 100031Tel: 86-10-6830 6789 Fax: 86-10-6830 6699

Address:No. 55 FuXingMenNei Street, XiCheng District, Beijing P.R. China 100140 Tel: 86-10-6641-0055 Fax: 86-10-6641-1089

Bank Contact Contact Information


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CHINESE NON-GOVERNMENTAL ORGANIZATIONS

Friends of Nature

www.fon.org.cn

Greenovation Hub

www.ghub.org

Green Watershed

www.greenwatershed.org

China Association for NGO Cooperation

www.cango.org

Address:4th Floor, Building 5, Qingnianhu Xili, Dongcheng District, Beijing 100010 Tel: 86-10-65120827-815

Address:Room 118, Yanyue Office Building, No. 100, Yanyue Hutong, Dongcheng District (Beijing) Tel y Fax : 86-10-84477291 Email: [email protected]

Address:8-1-401, Dianchilinquan Zhiyuan District, Guangfu Road Western Extend Line, Kunming,China, 650034Tel: 86-871-4182395Fax: 86-871-4182396E-mail: [email protected]@yahoo.com.cn

Address:C-601 East Building, Yonghe Plaza, 28# Andingmen Dongdajie, Beijing 100007, P.R. China Tel: 86-10-64097888-608

It is the oldest environmental NGO in China. It promotes environmental awareness for the protection of endangered species and promotes citizen participation in the fight against climate change.

Seeks the participation of civil society in the formulation of proposals to address environmental crises. Works on issues related to oceans, climate change, and sustainable financing.

Seeks to increase the role of citizens in watershed management.

It has consultative status with the United Nations Economic and Social Council. It also has extensive national coverage and has relationships with over 100 international organizations. Its mission is to promote the development of civil society in

Zhang Hehe

[email protected]

Visit website

Visit website

Wang Yi Xiang

[email protected]

Organization FocusContact Contact Information

China Youth ClimateAction Network

www.cycan.org

Global Environmental Institute

www.geichina.org

Address:Suite 1221, Unit 4, Building 4, Dahezhuangyuan, No.3 Suzhou Street, Haidian District, Beijing 100080Tel: 86-10-82569261

Address:Suite 1-401, Building No. 5 New World VillaDongcheng District Beijing 100062, ChinaTel: 86-10-6708-3192Fax: 86-10-6708-3193E-mail: [email protected].

China and provide a platform for the exchange of experience and information for Chinese NGOs.

It is the first Chinese youth organization in the field of climate change. Supports citizen participation and government action to address climate change and energy issues.

Promotes environmental protection for sustainable development. It has a strong emphasis on international cooperation on energy and the environment, and is regarded as a leader on environmental issues in China.

ZHAN Yufeng

[email protected]

Zhu Rong Program Officer for Investment, Trade and [email protected]

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Friends of Nature

www.fon.org.cn

Greenovation Hub

www.ghub.org

Green Watershed

www.greenwatershed.org

China Association for NGO Cooperation

www.cango.org

Address:4th Floor, Building 5, Qingnianhu Xili, Dongcheng District, Beijing 100010 Tel: 86-10-65120827-815

Address:Room 118, Yanyue Office Building, No. 100, Yanyue Hutong, Dongcheng District (Beijing) Tel y Fax : 86-10-84477291 Email: [email protected]

Address:8-1-401, Dianchilinquan Zhiyuan District, Guangfu Road Western Extend Line, Kunming,China, 650034Tel: 86-871-4182395Fax: 86-871-4182396E-mail: [email protected]@yahoo.com.cn

Address:C-601 East Building, Yonghe Plaza, 28# Andingmen Dongdajie, Beijing 100007, P.R. China Tel: 86-10-64097888-608

It is the oldest environmental NGO in China. It promotes environmental awareness for the protection of endangered species and promotes citizen participation in the fight against climate change.

Seeks the participation of civil society in the formulation of proposals to address environmental crises. Works on issues related to oceans, climate change, and sustainable financing.

Seeks to increase the role of citizens in watershed management.

It has consultative status with the United Nations Economic and Social Council. It also has extensive national coverage and has relationships with over 100 international organizations. Its mission is to promote the development of civil society in

Zhang Hehe

[email protected]

Visit website

Visit website

Wang Yi Xiang

[email protected]


China Youth ClimateAction Network

www.cycan.org

Global Environmental Institute

www.geichina.org

Address:Suite 1221, Unit 4, Building 4, Dahezhuangyuan, No.3 Suzhou Street, Haidian District, Beijing 100080Tel: 86-10-82569261

Address:Suite 1-401, Building No. 5 New World VillaDongcheng District Beijing 100062, ChinaTel: 86-10-6708-3192Fax: 86-10-6708-3193E-mail: [email protected].

China and provide a platform for the exchange of experience and information for Chinese NGOs.

It is the first Chinese youth organization in the field of climate change. Supports citizen participation and government action to address climate change and energy issues.

Promotes environmental protection for sustainable development. It has a strong emphasis on international cooperation on energy and the environment, and is regarded as a leader on environmental issues in China.

ZHAN Yufeng

[email protected]

Zhu Rong Program Officer for Investment, Trade and [email protected]


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CHINESE MEDIA

China Dialogue

www.chinadialogue.net

China Global Times

www.globaltimes.cn/HOME.aspx

Caijing Business Magazine

http://english.caijing.com.cn/

Caixin

www.english.caixin.com

Xinhua

www.xinhua.org

South China Morning Post

www.scmp.com

Address:Rm.2-123, Core Plaza, No.1 Shanyuan St., Haidian District Beijing, China 100080Email: [email protected]

Address:7/F Topnew Tower, 15 Guanghua Road, Beijing, 100026, P. R. ChinaEmail: [email protected]: 86-10-5293 7633

Address:19th Floor, Prime Tower, 22 Chaoyangmenwai Street, Beijing 100020, P. R. ChinaEmail: [email protected] Tel: 86-10-6588-5047

Address:15/16 Floor, Tower A, Winterless Center, No.1 Xidawanglu, Chaoyang District, Beijing 100026 ChinaEmail: [email protected]

Address:Jia 97 #, Xuan Wu Men Xi Da Jie, DistrictXicheng, Beijing, China, 100031Email: [email protected]@xinhuanet.com

Address:G/F - 3/F, 1 Leighton Road, Causeway Bay, Hong KongTel: (852) 2565-2222fax: (852) 2811-1048Email: [email protected]

Promotes a common understanding and direct dialogue in order to find solutions to global environmental challenges. It has offices in London and Beijing.

It is the largest English-language newspaper in China.

It is the most widely read finance magazine in Chinese government, business, and academic circles.

It is an online publication. Caixin Media promotes independent journalism and has a global perspective.

It is a newspaper of the Chinese government, and has a Spanish-language version.

It is the most influential English-language newspaper in Hong Kong.

Isabel [email protected]: @chinadialogue

Visit website

Visit website

Visit website

Visit website

Toh Hn [email protected]

Chinese Media Source FocusContact Contact InformationPeople’s Daily Online

http://en.people.cn/www.spanish.peopledaily.com.cn

World Story and China Wire

www.worldstory.org

Address:No.2 Jintai Xilu, Chaoyang District, Beijing100733, PR ChinaEmail: [email protected]@people.cnTel: 86-10-65363691Fax: 86-10-65363688

Email: [email protected]

It is a newspaper of the Chinese government and has a Spanish-language version.

It collects and disseminates news and research to help better understand China, and other countries in the region.

Visit website

Visit website

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China Dialogue

www.chinadialogue.net

China Global Times

www.globaltimes.cn/HOME.aspx

Caijing Business Magazine

http://english.caijing.com.cn/

Caixin

www.english.caixin.com

Xinhua

www.xinhua.org

South China Morning Post

www.scmp.com

Address:Rm.2-123, Core Plaza, No.1 Shanyuan St., Haidian District Beijing, China 100080Email: [email protected]

Address:7/F Topnew Tower, 15 Guanghua Road, Beijing, 100026, P. R. ChinaEmail: [email protected]: 86-10-5293 7633

Address:19th Floor, Prime Tower, 22 Chaoyangmenwai Street, Beijing 100020, P. R. ChinaEmail: [email protected] Tel: 86-10-6588-5047

Address:15/16 Floor, Tower A, Winterless Center, No.1 Xidawanglu, Chaoyang District, Beijing 100026 ChinaEmail: [email protected]

Address:Jia 97 #, Xuan Wu Men Xi Da Jie, DistrictXicheng, Beijing, China, 100031Email: [email protected]@xinhuanet.com

Address:G/F - 3/F, 1 Leighton Road, Causeway Bay, Hong KongTel: (852) 2565-2222fax: (852) 2811-1048Email: [email protected]

Promotes a common understanding and direct dialogue in order to find solutions to global environmental challenges. It has offices in London and Beijing.

It is the largest English-language newspaper in China.

It is the most widely read finance magazine in Chinese government, business, and academic circles.

It is an online publication. Caixin Media promotes independent journalism and has a global perspective.

It is a newspaper of the Chinese government, and has a Spanish-language version.

It is the most influential English-language newspaper in Hong Kong.

Isabel [email protected]: @chinadialogue

Visit website

Visit website

Visit website

Visit website

Toh Hn [email protected]

Chinese Media Source FocusContact Contact Information

People’s Daily Online

http://en.people.cn/www.spanish.peopledaily.com.cn

World Story and China Wire

www.worldstory.org

Address:No.2 Jintai Xilu, Chaoyang District, Beijing100733, PR ChinaEmail: [email protected]@people.cnTel: 86-10-65363691Fax: 86-10-65363688

Email: [email protected]

It is a newspaper of the Chinese government and has a Spanish-language version.

It collects and disseminates news and research to help better understand China, and other countries in the region.

Visit website

Visit website


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INTERNATIONAL NON-GOVERNMENTAL ORGANIZATIONS

Friends of the Earth, US

www.foe.org

Greenpeace

www.greenpeace.org

Banktrack

www.banktrack.org

The International Rivers Network

www.irn.org

Address:2150 Allston Way, Suite 240Berkeley, CA 94704 USATel: +1 (510) 900-3148

Address:Ottho Heldringstraat May 1066 AZ AmsterdamThe NetherlandsTel: +31 20 718 20 00Fax: +31 20 718 20 02Email: [email protected]

Address:Vismarkt 156511 VJ NijmegenNetherlandsTel: +31 24 3249220Email: [email protected]

Address:847 Berkeley Way Berkeley, CA 94703USATel: +1 (510) 848-1155Fax: +1 (510) 848-1008

Seeks to influence politicians through quality analysis and public advocacy campaigns, and the media generally. Also makes recommendations based on what should be sustainable development.

Promotes a social debate on environmental issues. Conducts research, engages in lobbying and diplomatic tactics, and conducts high impact nonviolent direct actions.

It is a global civil society network that investigates and monitors the financing of private and public banks.

Its focus is the defense of rivers and communities around the world.

Katherine LuChinese Sustainable Funding [email protected]

Visit website:

www.greenpeace.org

Johan [email protected]

Monti AguirreDirector for Latin [email protected]

Grace MangProgram Director for [email protected]

Organization FocusContact Contact Information Global Witness

www.globalwitness.org

Oxfam Hong Kong

www.oxfam.org.hk/en/default.aspx

World ResourcesInstitute

www.wri.org

Amazon Watch

www.amazonwatch.org

Inclusive Development International (IDI)

www.inclusivedevelopment.net

Street Address:6th Floor, Buchanan House30 HolbornLondon, EC1N 2HSUKTel: 86-136 7132 9213Tel: 86-158 1041 3986

Address:17/F, China United Centre, 28 Marble Road, North Point, Hong KongEmail: [email protected]: (852) 2520 2525Fax: (852) 2527 6307

Address:Chaowai SOHO Unit 0902 Tower A Yi No. 6 Chaowai Dajie Beijing Chaoyang District100020, ChinaTel: 86-10-5900 2566Fax: 86-10-5900 2577

Address:2201 Broadway, Suite 508, Oakland, CA 94612Tel: +1 (510)-281-9020Fax: +1 (510)-281-9021

Address: N/D

Investigates and promotes campaigns to prevent conflicts over natural resources, as well as corruption and human rights and environmental abuses.

Promotes sustainable development and lobbying over global warming, food justice, and corporate responsibility.

It focuses on issues of environmental and socio-economic development. It works globally with governments, administrations, and civil society.

Focuses on the protection of indigenous rights and the environment in the Amazon region and coordinates advocacy campaigns with indigenous groups and organizations in the region.

Focuses on making the international economic system more just and inclusive. Supports and builds the capacity of local organizations and affected communities to defend their land and human rights in the face of harmful investment, trade and development. Through research, casework and policy advocacy, IDI works to strengthen the human rights regulation and accountability of corporations, financial institutions and development agencies.

Beijing:Lizzie [email protected]

London:Brendan O’Donnell

Visit website

Visit website

Adam Zuckerman [email protected]

Mark Grimsditch,Mekong Regional Coordinator

[email protected]

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Friends of the Earth, US

www.foe.org

Greenpeace

www.greenpeace.org

Banktrack

www.banktrack.org

The International Rivers Network

www.irn.org

Address:2150 Allston Way, Suite 240Berkeley, CA 94704 USATel: +1 (510) 900-3148

Address:Ottho Heldringstraat May 1066 AZ AmsterdamThe NetherlandsTel: +31 20 718 20 00Fax: +31 20 718 20 02Email: [email protected]

Address:Vismarkt 156511 VJ NijmegenNetherlandsTel: +31 24 3249220Email: [email protected]

Address:847 Berkeley Way Berkeley, CA 94703USATel: +1 (510) 848-1155Fax: +1 (510) 848-1008

Seeks to influence politicians through quality analysis and public advocacy campaigns, and the media generally. Also makes recommendations based on what should be sustainable development.

Promotes a social debate on environmental issues. Conducts research, engages in lobbying and diplomatic tactics, and conducts high impact nonviolent direct actions.

It is a global civil society network that investigates and monitors the financing of private and public banks.

Its focus is the defense of rivers and communities around the world.

Katherine LuChinese Sustainable Funding [email protected]

Visit website:

www.greenpeace.org

Johan [email protected]

Monti AguirreDirector for Latin [email protected]

Grace MangProgram Director for [email protected]


Global Witness

www.globalwitness.org

Oxfam Hong Kong

www.oxfam.org.hk/en/default.aspx

World ResourcesInstitute

www.wri.org

Amazon Watch

www.amazonwatch.org

Inclusive Development International (IDI)

www.inclusivedevelopment.net

Street Address:6th Floor, Buchanan House30 HolbornLondon, EC1N 2HSUKTel: 86-136 7132 9213Tel: 86-158 1041 3986

Address:17/F, China United Centre, 28 Marble Road, North Point, Hong KongEmail: [email protected]: (852) 2520 2525Fax: (852) 2527 6307

Address:Chaowai SOHO Unit 0902 Tower A Yi No. 6 Chaowai Dajie Beijing Chaoyang District100020, ChinaTel: 86-10-5900 2566Fax: 86-10-5900 2577

Address:2201 Broadway, Suite 508, Oakland, CA 94612Tel: +1 (510)-281-9020Fax: +1 (510)-281-9021

Address: N/D

Investigates and promotes campaigns to prevent conflicts over natural resources, as well as corruption and human rights and environmental abuses.

Promotes sustainable development and lobbying over global warming, food justice, and corporate responsibility.

It focuses on issues of environmental and socio-economic development. It works globally with governments, administrations, and civil society.

Focuses on the protection of indigenous rights and the environment in the Amazon region and coordinates advocacy campaigns with indigenous groups and organizations in the region.

Focuses on making the international economic system more just and inclusive. Supports and builds the capacity of local organizations and affected communities to defend their land and human rights in the face of harmful investment, trade and development. Through research, casework and policy advocacy, IDI works to strengthen the human rights regulation and accountability of corporations, financial institutions and development agencies.

Beijing:Lizzie [email protected]

London:Brendan O’Donnell

Visit website

Visit website

Adam Zuckerman [email protected]

Mark Grimsditch,Mekong Regional Coordinator

[email protected]


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INTERNATIONAL MEDIA

Bloomberg Americas

http://topics.bloomberg.com/latin-america/

Wall Street Journal

www.online.wsj.com

Washington Post

www.washingtonpost.com

Inter Press Servise (IPS)

www.ipslatam.net/

The Guardian

www.theguardian.com/uk

The Economist

www.economistgroup.com/contact/index.html

Reuters www.reuters.com

Address:20031 Valley Boulevard Tehachapi, CA 93561, USATel: 1 (661) 822-1030Fax: 1 (661) 821-6019Email: [email protected]: +1 (212) 318-2000

Address:1211 Avenue of the Americas, New York, NY 10036 Email: [email protected]: 1-800-JOURNAL (1-800-568-7625)

Address:1150 1 5th Street NW, Washington DC Email: [email protected] Tel: 1+202.334.7400

Address:J. C. Gomez 1445 / P1 11000 Montevideo, Uruguay Email: [email protected] Tel: +598 2 916 4397 Fax: +598 2 916 3598

Address:Kings Place, 90 York Way London N1 9GU Email: [email protected] Tel: +4420 3 353 2000

Address:750 Third Avenue Fifth floor New York NY 10017 USA Email: [email protected] Tel: +1 (212) 554 0600

Address:3 Times Square New York, NY 10036 USAEmail: http://reuters-en.custhelp.com/app/ask/p/19,47Tel: +1 646.223.4000

Michael [email protected]

James [email protected]

John [email protected]

Antonoantea [email protected]

Tania [email protected]

Gady [email protected]

David [email protected]

International Media Source Contact Contact Information


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Chinese investments have taken by surprise local communities and organizations, whose strategies for the defense of their territories has been limited to using national legal frameworks and pressure campaigns. Very little has been done to demand accountability from investors and Chinese companies due to lack of knowledge about Chinese guidelines for operations abroad and the architecture of Chinese institutions.

The "Legal Manual on Chinese Environmental and Social Guidelines for Foreign Loans and Investments: A Guide for Local Communities" is an effort to help fill this gap and provide communities and organizations with a practical tool to protect their land and rights, integrating Chinese overseas environmental and social guidelines into their broad advocacy and planning strategies.

LEGAL MANUAL ON CHINESE ENVIRONMENTAL AND SOCIAL … · legal manual on chinese environmental and...

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Transcript of LEGAL MANUAL ON CHINESE ENVIRONMENTAL AND SOCIAL … · legal manual on chinese environmental and...