Profiting from Precaution: How China’s Policy Banks Can Enhance Social and Environmental Standards

Profiting from Precaution: How China’s Policy Banks Can Enhance Social and Environmental Standards
By Kevin Gallagher
The Paulson Institute, University of Chicago

Download PDF:
Profiting from Precaution

Download Chinese version:
Profiting from Precaution_Chinese

“Profiting from Precaution: How China’s Policy Banks Can Enhance Social and Environmental Standards” is the latest in a series of “Paulson Policy Memoranda,” published by The Paulson Institute, located at the University of Chicago.

Author Kevin P. Gallagher argues that China’s policy banks are ahead of the historical norm in that they have already established a series of environmental and social guidelines for their overseas operations. But, he notes, upgrading such guidelines would serve two goals simultaneously: (1) it would enable them to incorporate sustainability and environmental goals into their lending practices, and (2) it could be an important tool for China’s policy banks to continue to gain market access and mitigate risk as they seek to expand their overseas operations.

Established in 2011 by Henry M. Paulson, Jr., former U.S. Secretary of the Treasury and chairman and chief executive of Goldman Sachs, the Paulson Institute’s initial focus is the United States and China—the world’s largest economies, energy consumers, and carbon emitters. Institute programs foster engagement among government policymakers, corporate executives, and leading international experts on economics, business, energy, and the environment. The Institute is both a think and “do” tank that facilitates the sharing of real-world experiences and the implementation of practical solutions.