Integrating China’s “harmony between humanity and nature” philosophy with Russia’s “ecological traditionalism” enriches ESG with Eurasian wisdom, fostering culturally inclusive governance models, Peng Bo writes.
ESG (Environmental, Social, and Governance) has evolved into a critical system for assessing corporate value in the 21st century, expanding from narrow financial metrics to multidimensional sustainability goals. Environmentally, businesses must adopt carbon reduction and resource recycling measures in order to combat climate change. Socially, they are expected to prioritise employee welfare, supply chain accountability, and community development. In governance, transparency in decision-making, anti-corruption mechanisms, and stakeholder engagement are emphasised. At its core, ESG aligns corporate behaviour with global public interests, fostering a harmonious balance between economic growth, ecological preservation, and social equity.
The influence of ESG on global economic governance manifests in multiple dimensions. First, it redefines corporate competition. According to MSCI data, companies with an ESG rating of A or higher achieved a 17.5% higher cumulative stock price increase over three years compared to those rated B or lower (2023 data), indicating that ESG performance has become a key determinant of corporate valuation. Second, ESG is driving a paradigm shift in investment. With global ESG fund assets surpassing $40 trillion (2023), investors now integrate ESG factors into decision-making models, compelling companies to optimise governance structures. Finally, ESG reshapes international regulatory frameworks. Policies such as the EU’s Corporate Sustainability Reporting Directive (CSRD) and China’s Guidelines for ESG Information Disclosure of Listed Companies mark a transition from voluntary ESG practices to mandatory compliance. These trends underscore ESG’s emergence as a new logic for global economic governance, steering value chains toward inclusivity and sustainability.
China and Russia have exhibited distinct yet complementary trajectories in ESG development. Chinese enterprises have pursued ESG through a dual approach of policy-driven initiatives and market responsiveness. For instance, state-owned listed companies actively invested in clean energy under the “Dual Carbon” goals, achieving an average ESG score of 64.2 in 2022, significantly higher than the 51.7 score of private firms. In contrast, Russian enterprises face greater decarbonisation pressures due to their heavy reliance on energy-intensive industries, yet they maintain relatively robust employee welfare systems. Governance-wise, China’s state-owned enterprises (SOEs) have enhanced transparency through dedicated ESG committees, while Russia’s family-owned businesses grapple with structural governance challenges.
Technological complementarity offers fertile ground for collaboration. China leads in clean energy technologies such as photovoltaics and energy storage, whereas Russia has expertise in carbon capture, utilisation, and storage (CCUS). Joint efforts in low-carbon innovation could overcome technological bottlenecks. Market synergies also exist: China’s vast consumer base complements Russia’s abundant natural resources, enabling green supply chain collaborations to reduce carbon intensity. On the policy front, as members of the G20 and BRICS, China and Russia can amplify their voices in shaping international ESG standards, advocating for rules that reflect the interests of emerging economies.
In energy collaboration, the “Green Silk Road” initiative has laid a strong foundation. The China-Russia Eastern Route Natural Gas Pipeline project, for example, has adopted “green construction” standards, reducing ecological disturbance by 30% and establishing community compensation funds. Future efforts could explore hybrid energy models, such as wind-gas peak-shaving power stations in Siberia, to optimise energy structures while lowering emissions. Joint development of ESG big data platforms could further enhance efficiency. A notable case is Haier’s partnership with Russia’s Severstal, which uses blockchain technology to monitor carbon footprints across steel production, boosting supply chain transparency.
Social dimension cooperation is equally vital. Establishing a China-Russia ESG talent development programme, with master’s courses at institutions like Tsinghua University and Moscow State University, would cultivate expertise. Huawei’s “Digital Inclusion” training centre in Russia, which has provided 5,000 individuals with disabilities with digital skills, exemplifies initiatives promoting social equity. Public health collaboration could draw from China’s “Healthy China 2030” and Russia’s “National Health Programme,” fostering cross-border disease surveillance systems and joint vaccine R&D to enhance regional health security.
Governance alignment remains pivotal. Mutual recognition of China’s ESG Disclosure Guidelines and Russia’s Sustainability Reporting Standards would reduce compliance costs for businesses. Jointly issuing Cross-Border ESG Investment Guidelines could institutionalise cooperation. Expanding green bond issuance is another lever: in 2023, China and Russia collectively issued 80 billion in green bonds, accounting for 1,229 billion green bond-supported clean energy projects while elevating corporate reputations.
Despite vast potential, China-Russia ESG cooperation faces hurdles. First, cognitive gaps persist. Some Russian firms still perceive ESG as a “compliance cost” rather than a strategic priority. Second, technological barriers loom. China’s low-carbon exports are constrained by Western intellectual property restrictions, while Russia struggles with domestic technology commercialization. Third, geopolitical risks may disrupt project financing and execution.
To address these challenges, systemic strategies are essential. Policy coordination could involve signing a China-Russia ESG Cooperation Memorandum and establishing funds to support SMEs with green transitions. Technologically, joint laboratories focused on hydrogen storage and smart grids could spur breakthroughs. Engaging third-party entities like the United Nations Development Programme (UNDP) would enhance credibility and mitigate geopolitical risks.
China-Russia ESG collaboration holds profound implications. First, it fosters a multipolar governance system. By formulating ESG standards under the Belt and Road Initiative that reflect developing nations’ realities, the two countries challenge Western-dominated frameworks. Second, it innovates global public goods. Proposals such as a “Global ESG Digital Twin System” for real-time carbon tracking or a “BRICS ESG Bank” offering low-interest loans for sustainable projects could reshape resource allocation. Third, it bridges civilisational perspectives. Integrating China’s “harmony between humanity and nature” philosophy with Russia’s “ecological traditionalism” enriches ESG with Eurasian wisdom, fostering culturally inclusive governance models.
China-Russia ESG cooperation is not merely a pathway to enhancing bilateral competitiveness but a transformative practice for reshaping global economic governance. Moving forward, deeper collaboration in three areas is critical: standard-setting, such as defining “Emerging Market ESG Core Indicators” to recalibrate global rules; technology sharing, through a “Carbon Neutrality Technology Alliance” to accelerate low-carbon transfers; and cultural integration, blending ESG principles with Sino-Russian ecological philosophies to forge a unique governance paradigm. By advancing these efforts, China and Russia will contribute “Eurasian Wisdom” to global governance, steering humanity toward a more inclusive and sustainable future. This partnership transcends bilateral interests, offering fresh perspectives and momentum for worldwide sustainable development.
