City of London Corporation debates ESG motion following the release of Hong Kong Watch’s latest report

Yesterday, members of the City of London Corporation debated and voted down a motion which called for the city to review its investment in Chinese companies accused of gross human rights violations and complicity in the enslavement and oppression of the Uyghurs in Xinjiang.

The motion introduced by Mark Wheatley, Common Councillor of Dowgate, and supported by twelve members of the City of London Corporation was inspired by new report from Hong Kong Watch which found a number of large UK pension funds are heavily invested in Chinese state banks, Chinese technology companies involved in Xinjiang, and Chinese oil and gas companies.

In his remarks in support of the motion, Mark Wheatley said:

"There is no trade-off between human rights and the environment. For what good is liberty if we ruin this Earth? But equally, what good is a blue and green planet if humanity is in shackles?"

Urging common councillors to reject the motion, Catherine McGuiness, the Chair of the City’s Policy Committee, said:

“This motion if passed could prejudice our ability to pursue that important work [of accessing Chinese markets], could weaken our voice as we seek to influence, and that would be without any balancing improvement in human rights.”

This motion, follows the comments made by Baroness Morrisey, the Chair designate of AJ Bell, at this week’s Conservative Party Conference in which she said that investment in China “cannot be reconciled with ESG principles, with socially responsible investing, with upholding democracy. We do this in other areas. There are tough anti-money laundering laws to stop the financing of terrorism and drug dealing, even if that might be very lucrative… but institutional investors, the signatories to the UN PRI, are today investing in countries that are known to be abusing human rights.”

Baroness Morrisey’s comments are reinforced by the recent intervention by the investor George Soros who warned that “pouring billions of dollars into China now is a tragic mistake”.

Commenting on the rejection of the ESG motion by the City of London Corporation, Johnny Patterson, Policy Director at Hong Kong Watch said:

“Ignorance over China’s appalling human rights record and the complicity of technology companies and state-owned enterprises is no longer an excuse.

Yesterday’s motion and our research has rightly outlined that it is inconsistent and unsustainable for the City of London Corporation to suggest that further investments in Chinese companies linked to gross human rights violations is in line with its commitment investing using ESG criteria.

The City of London Corporation claims to take its obligations under the UN Guiding Principles on Business and Human Rights seriously. It's time for it to start putting its money where its mouth is.”

The full debate can be found here: Court of Common Council - 07/10/21 - YouTube