On November 26th, the Shanghai Green Finance Index (Index) was released at the 2022 Shanghai International Financial Center (SIFC) Development Forum. The forum was organized by SAIF and co-organized with CCTV Shanghai, the Shanghai Xuhui District People’s Government, and the Shanghai Finance Society.
The Index aims to reflect the overall performance of Green Finance in Shanghai. It creatively develops both the Shanghai Green Finance Current Performance Index and the Shanghai Green Finance Social Awareness Index based upon one assessment framework and two sets of methodologies. Both overall scores show that Shanghai is doing well with Green Finance.
Unlike existing Green Finance indices, the Index team summarized six factors that drive Green Finance, after considering different dimensions such as: academic theory, policies and regulations, practical operations, and analyzing other Green Finance indices. The six factors are: financial market construction, financial instruments, policy support and guarantee, industrial development and corporate activities, ecological environment and urban construction, and macroeconomics and infrastructure.
The team used the end of October 2022 as the cut-off date for the previous year’s data, and calculated the overall score of the Shanghai Green Finance Index in 2021. In accordance with industry best practices for a Green Finance Index, the scores are expressed as growth rates.
To indicate the development trend for Shanghai’s Green Finance, the team used the previous data to calculate the growth rates for 2018, 2019, and 2020.
The overall score of the Shanghai Green Finance Index in 2021 was 11.67%, compared to 3.92% in 2018, 5.61% in 2019, and 6.67% in 2020 — indicating sharp growth and promising prospects.