Gary Gao - Co-chair of WLG's ESG Group

Published on Sep 1, 2022

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Gary Gao

Equity Partner at Zhong Lun Law Firm

Co-chair of WLG's ESG Group

1. Briefly tell us about your practice as it relates to ESG.

I have practiced in several areas, including ESG, compliance, and other areas of law. I have helped several leading companies in China develop internal ESG compliance programs and management mechanisms, publish ESG reports and submit them to regulators, and incorporate the ESG matrix into the investment process for companies and asset managers. I'm also collaborating with overseas legal professionals who work for multinational companies and helping Chinese companies improve their ESG performance and mitigate ESG-related risks during their overseas business activities.

2. What do you look forward to as the new ESG Group Co-Chair?

I look forward to this great opportunity to contribute to the WLG ESG group and the greater community of professionals who focus on or care about ESG matters. My goals and passions include the following:

  • improving legal professionals' awareness of ESG topics and ESG-related legal and compliance service opportunities;
  • promoting communication among legal professionals about ESG legislation, regulatory requirements, enforcement, and tendencies in different jurisdictions to help them better understand these matters and enhance their ability to provide services for their clients; and
  • delivering positive messages about ESG to the people around us, such as our colleagues, the members of our communities, and the clients who work with us. I want to encourage them to proactively choose ESG as a lifestyle and a principle in their management and the planning of their entities or business, which I believe will benefit the world.

3. What is new and interesting in the area of ESG as a client service?

For legal professionals, a common client service in the area of ESG is to assist clients in making "responsible investments." This is done by through due diligence and assessing the investment targets to ensure that they have a good ESG performance. Given the ESG preference of investors, the targets themselves are considering how to be more attractive via ESG performance. As a result, many companies are making efforts in their ESG disclosures to feed investors or the ESG rating agencies with ESG-related information and satisfy the regulatory requirements. Companies may need lawyers' help preparing their ESG disclosure during this process. Some listed companies or companies with ESG awareness may voluntarily choose to produce an annual ESG report with regulators and the stock exchanges encouraging them to do so. These ESG reports can usually be found on the investor relationship webpage of the companies' official websites. Companies listed in China may disclose such reports through a public company announcement through the stock exchange. Notably, legislators and regulators are considering the compulsory disclosure of ESG reports, and the Shanghai Stock Exchange requires the companies listed on the Sci-Tech Innovation Board, i.e., SSE STAR MARKET, to take the compulsory obligation of providing ESG reports. Legal service opportunities have been driven by the tendencies discussed above.

In the past, lawyers have assisted listed companies in preparing their disclosure in significant transactions or changes. Nowadays, however, lawyers can also advise on ESG matters.

4. What is something you're passionate about outside of law?

Outside of law, I often read history books and travel because I'm passionate about understanding cultural nuances and promoting understanding between different cultures. For example, I often read about the history of other countries, travel to various regions, and meet friends or work with people from different backgrounds. These activities further my undertaking of multiple cultures, societies, and people. They also help me work with diverse clients and legal professionals. I have benefitted from expanding my own global horizon and look to continue to improve my communication with and understanding of people from different cultural backgrounds. This is also why I look forward to serving as the ESG Group Co-Chair.

5. Have you had a recent WLG collaboration you can share with us?

I have been participating in several webinars hosted by WLG in the past couple of years. Also, I have been cooperating with WLG members in some traditional compliance matters, such as anti-bribery and new matters like data protection. Some associates in my law firm participated in the WLG | beyond borders events this year and were impressed by the well-designed training sessions and the WLG community. The scope of WLG collaborations is expanding.