Research On The Legal Mechanism Of Environment And Social Security In Overseas Investment Of Chinese Financial Institutions

With the continuous development of China’s foreign investment,environmental and social issues in investment activities have become increasingly prominent.The research of the Chinese government and scholars is currently focused on the prevention and control of environmental and social risks at the national and enterprise levels,and is unaware of the important role of financial institutions in environmental and social security in investment activities.In practice,Chinese companies need to provide financial support behind their “going out” financial institutions.When financial institutions provide credit funds,if they can review the possible environmental and social impacts of overseas projects and refuse to provide credit business for high-risk and high-pollution enterprises,they can reduce the environmental and social risks of overseas investment from the source of funds and ensure Environmental and social benefits of the location of overseas investment projects.Throughout the international community,international standards such as the "Equator Principles" have become new international financial soft laws;the environmental and social security mechanisms of the World Bank,International Finance Corporation,and financial institutions of some developed countries have been established and successfully operated for some time;but China However,few financial institutions have adopted the "Equator Principles" and established a systematic and comprehensive environmental and social security mechanism.In view of this,this paper takes the overseas investment environment and social security legal mechanism of Chinese financial institutions as the research object,by analyzing the environmental and social issues in overseas investment,summarizing the deficiencies in the environmental and social security of Chinese financial institutions,and A comparative study of the environmental and social security mechanisms of financial institutions in developed countries and recommendations for the establishment of a sound legal mechanism for the overseas investment environment and social security of Chinese financial institutions.In addition to the introduction and conclusion,the full text is divided into five parts:The first part is about the necessity of establishing the overseas investment environment and social security mechanism of financial institutions.This part starts with the current environmental and social problems faced by overseas investment,and combines the academic analysis of investment activities and environmental and social security theory,as well as the analysis of the meaning of environmental and social security legal mechanisms in overseas investment of financial institutions,and points out that financial institutions invest overseas The activity has a special role and status,and discusses the necessity of establishing a financial institution’s overseas investment environment and social security mechanism.The second part is an analysis of the current status of the overseas investment environment and social security legal mechanisms of Chinese financial institutions.This part includes a systematic review of the overseas investment environment and social security of Chinese financial institutions and a summary of the practice of environmental and social security of major domestic financial institutions.It also points out the characteristics of the current legal mechanism of Chinese social institutions ’overseas investment environment and social security.First,the environment and society The requirements for safeguards are mostly prescribed in a top-down manner;second,the practice of environmental and social security pays more attention to risk management.The third part further analyzes the shortcomings of the Chinese financial institutions’ overseas investment environment and social security legal mechanism at the current stage,mainly including: the environmental and social security legal mechanism is not yet systematic,and the environmental and social risk assessment process lacks substantive content,inadequate information disclosure,and inadequate consultation and appeal mechanisms.The fourth part expounds the concept,development process and main contents of international environmental and social security standards such as the "Equator Principles" and "Performance Standards" in international investment activities,and summarizes the current adoption of such standards by Chinese financial institutions.At the same time,this part also carried out research and analysis of the international experience of financial institutions’ environmental and social security mechanisms,mainly including the review of the environmental and social security mechanisms of the World Bank,International Finance Corporation,Asian Infrastructure Investment Bank,and Citigroup of the United States.The relevant mechanisms of these financial institutions are compared with the situation of Chinese financial institutions,and their admissibility and limitations are analyzed.The fifth part,on the basis of the previous summary and analysis,puts forward suggestions on the establishment of a sound legal system for the overseas investment environment and social security of Chinese financial institutions.On the one hand,this part proposes to coordinate the relationship between the economic efficiency of current investment activities and environmental and social security;on the other hand,it is recommended that Chinese financial institutions actively adopt the "equatorial principle" and related international standards to enhance the discourse of international financial legislation of Chinese financial institutions Rights,and actively participate in international financial legislative activities through the path established by the standard.Finally,this part puts forward specific suggestions for Chinese financial institutions to establish overseas investment environment and social security legal mechanisms,mainly including: establishing a systematic legal mechanism framework,refining the identification and assessment methods and regulations of Chinese financial institutions ’impact on the environment and society Chinese financial institutions have due diligence and management supervision responsibilities for environmental and social security,improved information disclosure systems,and consultation and appeal systems with stakeholders.The conclusion is that when financial institutions provide support for overseas investment projects,they should pay attention to environmental and social security while taking into account economic efficiency.By drawing on the advanced experience of international financial organizations and financial institutions in developed countries,establishing and perfecting the overseas investment environment and social security legal mechanism of Chinese financial institutions in terms of adopting international standards,designing mechanism frameworks,and improving mechanism content can reduce the environment and Social risks,maintain China’s good investment image worldwide,and enhance the ability and level of Chinese financial institutions to participate in the governance of international financial rules.