Mei Ri Jing Ji Xin Wen·2025-07-27 13:45Core Viewpoint - A significant investment of approximately 1.2 trillion yuan in a super hydropower project has commenced, positively impacting the hydropower sector in China's A-share market [1] ESG Disclosure and Ratings - Among the 10 companies in the A-share hydropower industry, 7 have disclosed their 2024 ESG reports, resulting in a disclosure rate of 70% [1] - 90% of the companies in the hydropower sector are rated A (including A and A+), with only one company rated C [2] - Only 3 companies have disclosed Scope 1 and Scope 2 carbon emissions data, while none have reported Scope 3 emissions [2] Environmental and Social Dimensions - Protecting biodiversity is crucial for sustainable operations in hydropower companies, with measures like environmental impact assessments and ecological restoration being implemented [3] - Community relations and resettlement management are key social issues for hydropower companies, affecting their long-term reputation and sustainable development [3][4] - The "green" recognition of large hydropower projects must consider their full lifecycle carbon impacts and social effects to avoid creating new environmental and social liabilities [5] International Expansion and Challenges - Leading hydropower companies are achieving success in international markets, with projects in Peru and Myanmar enhancing their asset structures [5][6] - The global shift away from coal has created a strong demand for clean energy, making countries with quality water resources attractive for investment [6] - Offshore projects face complex risks, including compliance with local laws and potential impacts on local communities and ecosystems [6] Recommendations for ESG Improvement - Companies should focus on three main areas for ESG enhancement: environmental impact assessments related to biodiversity, strengthening supply chain ESG management, and improving corporate governance [6]