Shenzhen, China, June 01, 2022 (GLOBE NEWSWIRE) — Recently, Southern Asset Management’s case study: Commitment to bonds in the Chinese context was collected by the PRI Stewardship Case Study Library.
As one of the leading asset management institutions in China, Southern Asset Management has always adhered to the “ESG investment philosophy” as a guide, committed to the continuous creation of value by clients and investors , taking into account the sustainable development of society, actively promoted the implementation of ESG investment philosophy in a comprehensive, three-dimensional and high-level manner with practical actions, and integrated it into the inspection system of investment decision-making from three aspects: environment (E), society (S) and corporate governance (G), exploring the direction of capital. The inclusion of Case Study on Fixed Income Securities Participating in Corporate Governance in China in the PRI case study is an important affirmation of Southern Asset Management’s full participation in corporate governance in the area of ESG investing.
In this “case study”, Southern Asset Management explained in depth the reasons for “responsible management”: “Responsible management is an effective strategy for improving the long-term competitiveness of investment objects and strengthening the performance of investment portfolios, and that’s also part of the fiduciary’s responsibility. The most serious risk faced by investors in fixed income securities is liquidity risk. Therefore, continuous monitoring, on-site investigation and understanding of business fundamentals, including issues related to climate change and biodiversity, are effective ways to reduce portfolio risk. Responsible stewardship is imperative.
At the specific implementation level, Southern Asset Management includes ESG issues in the participation activities of listed companies and bond issuers, in order to improve the ESG awareness of investors, optimize their ESG performance and create a better investment ecosystem. Southern Asset Management’s responsible management strategy also encourages exchanges and cooperation with regulatory agencies to promote the sustainable development of the industry where the investment target is located.
Southern Asset Management focuses on issues such as the environment and climate change. After China announced its commitment to carbon neutrality, Southern Asset Management established an internal carbon emissions database to track the carbon footprint of the portfolio, and continued to promote the participation of portfolio companies with strong emissions to support these companies towards carbon neutrality. Southern Asset Management’s Carbon Emissions Database has completed full coverage of all investment objectives in its portfolio using external data collection, Fintech algorithm and AI, and has selected the 100 companies with the highest carbon emissions from the database as target companies for conscientious management.
In addition, Southern Asset Management also monitors and assesses the relevant progress made by portfolio companies by assessing their climate-related risks, climate risk governance, climate risk response strategies and climate-related disclosures through tables. exclusive edge.
The case study also details the case of Southern Asset Management’s strong involvement in the corporate governance of a bond issuer. Southern Asset Management helps the company improve animal health, reduce pollution and build business resilience.
Finally, Southern Asset Management also highlighted the main challenges currently facing ESG investments in China, including the lack of a unified ESG disclosure framework, difficulties in information gathering, credibility and asymmetry. information, etc. Although China’s participation in private companies is relatively fluid, it still faces the challenge of information credibility. Therefore, Southern Asset Management calls on regulators to publish ESG disclosure standards as soon as possible.
Company name: China Southern Asset Management
Contact person: Si Chen
Email: [email protected]