In an era of multifaceted structural challenges for human development, employing systemic thinking to address the intertwined problems of the environment, economy, and society is becoming a critical proposition for global governance. The "triple planetary crisis" of climate change, biodiversity loss, and pollution urgently demands solutions, while demographic aging and the wave of artificial intelligence (AI) are reshaping the operational logic of future societies. Facing these complex, border-crossing issues, establishing effective international cooperation frameworks and market incentive mechanisms is more important than ever before.
Against this backdrop, a dialogue was held with Tamas Hajba, the OECD's Representative in China, to explore systemic solutions from an international organization's perspective. He elaborated on how innovative financing mechanisms can mobilize private capital to tackle the environmental crisis, analyzed the pathway for businesses to transition from diversified ESG practices to systemic "Responsible Business Conduct" (RBC), and outlined prospects for China-EU cooperation in key areas like environmental governance and tax reform. He also prospectively analyzed the challenges and opportunities presented by an aging society and the AI era, emphasizing the importance of evidence-based policy-making and international knowledge sharing.
Hajba stressed that the world faces a "triple planetary crisis" comprising climate change, biodiversity loss, and pollution. He noted that while the global focus has long been concentrated on climate change and the low-carbon transition, the importance of biodiversity conservation for governments and businesses is increasingly prominent following summits under the Montreal Protocol framework. Simultaneously, pollution is directly eroding the quality of daily life. Citing China's past experience with severe air pollution and subsequent significant improvements as an example, Hajba pointed out that many countries still face severe challenges in this area. Therefore, he argued that these three crises must be addressed through systematic and integrated approaches.
Discussing the implementation pathways for international plans like the Paris Agreement, Hajba identified financing as a key obstacle. He stated that without sufficient and precisely targeted financial support, climate goals would be difficult to achieve. Currently, climate finance relies primarily on public funds, but the slow post-pandemic recovery of the global economy, coupled with debt pressures and fiscal constraints, limits government investment capacity. Hajba specifically highlighted that OECD's ongoing monitoring of climate finance progress reveals that by 2030, the scale of climate finance needed for emerging markets and developing economies must quadruple from current levels. This makes mobilizing private capital particularly urgent. However, according to an OECD report, private sector financing currently accounts for only about one-fifth of total climate investment, indicating substantial room for growth.
To address this, Hajba proposed three pathways: first, exploring the use of blended finance models; second, leveraging the leading role of public policy banks and development financial institutions, such as the China Development Bank; and third, utilizing the synergistic power of multilateral development banks like the World Bank, the Asian Development Bank, and the Asian Infrastructure Investment Bank. He emphasized that these financial institutions must deeply integrate objectives related to tackling climate change, protecting biodiversity, and managing pollution into their corporate governance and decision-making systems, ensuring their business activities genuinely respond to the governance needs of the "triple planetary crisis."
Hajba pointed out that businesses bear responsibility for addressing the triple planetary crisis, and government expectations are reflected in principles and metrics like ESG. However, he also highlighted challenges in the current ESG landscape: a lack of unified ESG standards globally creates confusion for companies in compliance; imbalances exist among different ESG frameworks, such as an overemphasis on corporate governance while weakening substantive assessments of environmental or labor rights impacts; and current evaluations often focus on internal corporate "inputs" rather than actual performance outcomes.
Therefore, Hajba emphasized the OECD-advocated "Responsible Business Conduct" (RBC). He explained that this is based on the OECD Guidelines for Multinational Enterprises, which were initially developed in the 1970s and updated in 2023. These guidelines reflect government expectations, requiring companies to identify and manage potential negative risks and impacts of their operations, including throughout their supply chains, on the environment, society, human rights, labor rights, and anti-corruption, among other areas. The OECD provides a general "Due Diligence Guidance for Responsible Business Conduct" applicable across industries, as well as specific guidance for key sectors like agriculture, minerals, and textiles & apparel, offering companies detailed instructions based on a risk-oriented six-step due diligence process.
Hajba stressed that this RBC standard has been incorporated into many national laws related to sustainable supply chains. For example, the EU's Corporate Sustainability Due Diligence Directive draws on OECD's RBC standards. He noted that companies adhering to this standard are better positioned to meet regulatory and audit requirements. Furthermore, this standard integrates United Nations principles, fully incorporating requirements related to climate change, biodiversity, and pollution. It calls on companies not only to identify risks but also to take responsible action and support the achievement of international climate and biodiversity goals.
Hajba also mentioned a major OECD initiative—the "Inclusive Forum on Carbon Mitigation Approaches." He described it as a platform designed for all countries, regardless of size or development level, to participate equally, learn from each other, and share policy and practical experience. He emphasized that the forum's focus is not on ranking or imposing rules, but on mapping global policies, identifying effective practices, thereby helping countries achieve their Paris Agreement goals. Hajba noted that China is very active in the technical work of the forum and leads in the application and commercialization of clean technologies. The OECD looks forward to deepening cooperation with China in this area.
Hajba reaffirmed the importance of tackling climate change from both macro-policy and practical business perspectives. He concluded that global goals must be translated into a language businesses understand, accompanied by concrete support. While large enterprises may have the resources to establish dedicated departments, small and medium-sized enterprises especially need such practical guidance and support.
Hajba believes that adhering to responsible business conduct principles signifies far more than just assurance, guarantee, or incentive for ethical practices; it fundamentally represents a solemn commitment—to proactively pay attention to the potential negative impacts of business operations on the environment, society, and other critical areas.
In his view, this commitment aligns with the growing expectations of global business partners and governments. He pointed out that companies themselves are increasingly inclined to partner with those who follow such principles. For instance, when a company conducts due diligence within its own supply chain or undergoes assessment by a partner, compliance with relevant standards makes the process smoother. Hajba suggested that this ultimately provides crucial support for business success.
Furthermore, Hajba emphasized a practical value: the principles and standards of responsible business conduct are now integrated into numerous legal and regulatory systems worldwide. He stated that this integration particularly aids companies in compliance, especially during international operations. If a company is already familiar with or adheres to these standards, navigating diverse regulatory requirements becomes significantly easier, thereby reducing obstacles and barriers to global operations.
Hajba stressed that despite facing various difficulties, including geopolitical challenges, international cooperation is now more vital than ever. Maintaining communication and continuing collaborative work remain indispensable. He pointed out that the OECD and China have collaborated for three decades, with China being one of its key partners.
Hajba explained that this cooperation spans multiple policy areas and is characterized by mutual benefit. On one hand, China contributes rich experience, knowledge, and data to the OECD's databases, supporting the organization's policy analysis, research, and standard-setting work. On the other hand, the OECD's knowledge base, data, and policy recommendations have assisted and supported China's reform process over many years. Hajba described the OECD as a "one-stop platform" that integrates policies and best practices from its member countries and other global economies.
In Hajba's view, the scope for collaboration is broad, covering environmental governance, taxation, macroeconomics, responsible business conduct, corporate governance, education, agriculture, chemical management, development cooperation, science and technology policy, and many other areas.
When asked how and in which specific areas China could further deepen cooperation with the world, including OECD countries, Hajba emphasized that the focus should be on addressing the most pressing global challenges. He believes the aforementioned "triple planetary crisis" is the most urgent issue. He noted that these challenges affect all countries and cannot be solved by any single nation alone. Therefore, evidence-based cooperation is crucial, requiring the collection of comparable data and open policy dialogue as support. He clarified that this is not about prescribing policies or ranking countries, but about maintaining communication, mutual learning, and acknowledging different national contexts and development paths.
Another key area Hajba identified is international taxation. He stated that taxation is a major revenue source for all countries, but the digital economy complicates tax systems, as multinational companies may shift profits to low-tax jurisdictions. The OECD has been leading international efforts in this area, particularly through the Base Erosion and Profit Shifting project, which aims to ensure a fairer distribution of taxing rights. Hajba noted that China has been an indispensable part of this multilateral cooperation, both as a staunch supporter and an active participant. Given China's robust tax system, ongoing reforms, and extensive international economic engagement, continued cooperation in this area is important not only for China but for all countries seeking a balanced and equitable international tax framework.
When discussing major trends that will shape the world's future, Hajba pointed to several key directions, such as population aging and AI. He believes these developments require extensive and rigorous analysis—focusing both on the challenges they bring and the opportunities they present.
He explained that aging will alter labor and skill demands at both national and corporate levels. Simultaneously, however, it opens up new possibilities in areas like the silver economy, the health industry, the care sector, and age-related services.
Regarding AI, Hajba described it as a rapidly evolving field requiring continuous attention, evaluation, and analysis. Similar to aging, AI presents enormous opportunities—such as enhancing productivity and advancing healthcare—but also comes with significant risks and challenges. One major challenge lies in the sheer speed of AI technological change, which makes it difficult for policymakers and society to keep pace. Hajba contrasted this with earlier digitalization phases, like the spread of mobile communication technology, which progressed gradually over decades, whereas AI's development rhythm is much faster.
He also pointed out that concerns about AI's trustworthiness are serious, including potential operational and reputational risks. To address these, Hajba outlined relevant OECD work: establishing a policy observatory to track AI policies in member countries and periodically updating the OECD AI Principles. Another key activity involves collecting data on AI incidents through a dedicated reporting mechanism, thereby identifying emerging risks and adopting more anticipatory governance strategies.
In Hajba's view, analysis of both aging and AI must be based on solid evidence, data, and best practices. Precisely for this reason, he emphasized the importance of international cooperation—including with China—to pool broader empirical evidence, develop policy recommendations, and help establish common standards.
He further elaborated that businesses require a supportive policy environment, including education policies, incentives, and job-creation mechanisms, to tackle the dual challenges posed by aging and AI and to seize related opportunities. Without such policies, it would be difficult for firms to adapt. For example, as AI transforms the labor market, companies will increasingly need employees with digital and AI-related skills. Yet Hajba mentioned that in 2023, only about 8% to 9% of firms with more than ten employees were actively using AI, indicating that penetration remains low but is growing rapidly. Therefore, policies promoting relevant education and training are crucial.
Returning to the topic of aging, Hajba pointed out that while the silver economy offers opportunities in long-term care and elder services, a key question is where the workforce will come from. Training people for these roles—not only through higher education but also via vocational education and training—is vital. The OECD is working on how to assess and improve vocational education systems to better meet such needs.
Hajba concluded by underscoring the importance of knowledge sharing. Governments, local authorities, and industry associations have a responsibility to communicate effectively with businesses—informing them of existing policies, incentives, and potential opportunities, such as the benefits of hiring older experts. In this way, they can help firms navigate steadily through the complex landscape shaped by these two powerful megatrends.