Mr. Erkki Liikanen
The IFRS Foundation Trustees
Dear Chair Liikanen,
On behalf of the Government of the People's Republic of China, I would like to extend our support to the establishment of the International Sustainability Standards Board (ISSB) by the International Financial Reporting Standards (IFRS) Foundation, and sincerely invite the IFRS Foundation to locate the ISSB headquarters in Beijing, China.
Currently the world is faced with common challenges of sustainable development, including climate change. Developing one single set of high quality, understandable, enforceable and globally accepted sustainability standards by the ISSB is of great significance to help provide investors with consistent and decision-useful high-quality information, and achieve targets in the jurisdictional public policies.
In recent years, the IFRS Foundation, under your leadership, has been actively promoting strategic transformation and expanding to the area of setting sustainability standards. We highly appreciate and fully support the efforts made by the IFRS Foundation in this regard. China has supported the proposed ISSB through multiple channels, such as the Monitoring Board, the Trustees, the other governance mechanisms and public feedback. In addition, we have extended our advice and suggestions to improve the governance of the IFRS Foundation and the ISSB. China is ready to work with you for successful establishment of the ISSB at an earlier date under the framework of transparency and robust governance.
The Chinese civilization has always valued harmony between man and nature. We are committed to the concept of innovative, coordinated, green, open and shared development, pursue the development path that is eco-friendly, green and low-carbon, and actively participate in the international cooperation on sustainable development. China endeavors to peak its carbon emission before 2030 and achieve carbon neutrality before 2060, contributing China’s part to global low-carbon development. To fulfill this commitment, China has accelerated its all-round green transformation in the economic and social development. The support of China, the world's second largest economy, the largest carbon emitter and renewable energy producer, to the sustainability standards of the ISSB is of great significance to help promote the standards globally. With tangible achievements in the field of sustainable development, China will make its contribution to widening the IFRS Foundation’s global footprint and recognition.
We expect the IFRS Foundation to locate the ISSB headquarters in Beijing, China, as we believe that this capital city has the following advantages that make it an ideal candidate:
. China has full-fledged infrastructure facilities, and always pursues peace and friendship. It has been rated as one of the "the world's top 10 economies with the largest improvement of the business environment" by the World Bank in recent two years.
. Beijing, China’s political and cultural center as well as the most important hub of international exchanges and scientific and technological innovation, ranks 6th in the latest Global Financial Centers Index report. It has outstanding advantages in mobilizing resources, attracting talents and capital, and promoting innovative research and development.
. Beijing has convenient transportation network, and offers direct flights to major countries and regions across the world.
. As the global metropolis, Beijing hosts the headquarters or representative offices of many multinationals, large enterprises, financial institutions and international organizations. For example, 114 companies of the world's top 500 have offices in Beijing. The Asian Infrastructure Investment Bank, the World Bank Beijing Office, the Asian Development Bank PRC Resident Mission and the Secretariat of ASEAN-China Center are also located in Beijing.
. Beijing will provide rent-free office space for a certain period of time. It will also provide facilitation in other areas such as access to education for minor children.
China has long been supporting the IFRS standards. The substantive convergence of the Chinese Accounting Standards for Business Enterprises with International Financial Reporting Standards has made effective contribution to expanding the global influence of the IFRS standards. The Chinese experts have participated in activities at the governance and technical levels of the IFRS Foundation in an all-round way. Moreover, China has become one of the largest contributors to the IFRS Foundation among all the jurisdictions. The Liaison Office of the Emerging Economies Group locates at the Ministry of Finance of China. Our contribution has been highly appreciated and acknowledged by all parties concerned. In the future, China will mobilize more financial resources from a broad range of enterprises, financial institutions, stock exchanges, and accounting bodies in line with the IFRS Foundation’s principle of transparency and accountability, while safeguarding its independence and professionalism.
I sincerely look forward to your and other trustees' consideration of China’s host city invitation, and deem it as an important opportunity to strengthen cooperation and exchanges between China and the IFRS Foundation, and jointly promote the establishment of the ISSB and standards setting for global sustainable development.
Ministry of Finance
The People's Republic of China