A new report by the Corporate Environmental Governance Programme at the University of Hong Kong suggests massive environmental risks associated with investment in China. Such risks, caused by rapid economic growth, the (sometimes...
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A new report by the Corporate Environmental Governance Programme at the University of Hong Kong suggests massive environmental risks associated with investment in China. Such risks, caused by rapid economic growth, the (sometimes illegal) overuse of natural resources, climate change and rapid domestic consumption, are not being disclosed by business. Thus, it is claimed, shareholders are not being given full information about the risk associated with their investments. A survey of initial public offerings (IPO) and annual reports revealed a distinct lack of disclosure about potential environmental risks facing companies. Moreover, even if risks were disclosed at IPO (as required by law) they were often not subsequently considered at annual reporting. The report considers what would be a likely scenario if, as expected in the future, China introduces retrospective legislation similar to the US Superfund, or EU style takeback requirements for packaging and products. The impact on many investments will be to cut bottom lines dramatically. The full report can be seen here
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