Inclusion of ESG-factors in the management of credit institutions in China

The subject of the study is the introduction of ESG factors into the decision-making system of credit institutions of the People's Republic of China. Although previously published materials of the author [1] were used in the preparation of the study, this updated article focuses on the features of monetary institutions in the PRC and the effectiveness of measures taken by regulatory institutions to stimulate lending to projects aimed at improving the environment, social activities, first of all, liquidation poverty in the country, as well as to improve the governance system at various levels, which is what the term ESG implies: Environmental, Social, and Corporate Governance - a set of standards for companies that responsible investors use to implement investments.

The environmental criteria established by regulators for the activities of China's monetary institutions determine how the country's banking institutions should act as «green» investors. The social criteria for the functioning of Chinese banks set guidelines for the elimination of poverty in the country and responsibility to society. Corporate governance determines the moral and ethical standards for the management of various companies in the country, the conditions of internal control.