Southern Asset Management Releases “2023 Asset Owners ESG Survey Report.”

Southern Asset Management Releases “2023 Asset Owners ESG Survey Report.”

October 27
18:41 2023

Newyork-The 8th World Investment Forum was successfully held by United Nations Conference on Trade and Development (UNCTAD) in Abu Dhabi from October 16th to 20th. The forum, themed “Investing in Sustainable Development,” aiming to develop strategies and solutions to address global investment and development challenges, were widely discussed in different sessions  within government leaders and ministerial representatives, stock exchanges executives, sovereign wealth fund managers and elites in different investment institutions and organizations. 

Southern Asset Management, as a strategic partner, jointly organized the Asia Sustainable Finance Roundtable with SynTao Green Finance and China Sif, and released the “2023 Asset Owners ESG Survey Report”, on the morning of October 20th. The theme of the roundtable was “Shareholder Engagement and Promoting Low-Carbon Transition”, multifaceted aspects of transition finance and investment trends were also shared during panel discussions.

The report analyzed three aspects: the concepts and practices of shareholder engagement and responsible management, the implementation of shareholder engagement and responsible management in China, and the requirements for fund managers to implement responsible management.

Key findings include:

  • 80% of the surveyed institutions already engaged in shareholder engagement and responsible management though they had diverse forms of responsible management policies;
  • 70% of the surveyed institutions considered regulatory requirements as one of the important factors driving investors to incorporate ESG in communication and engagement.
  • In terms of implementing shareholder engagement and responsible management in China, 60% of the surveyed institutions believe that communication and engagement are very important when investing in China. 70% of the surveyed institutions stated that they would refer to company annual reports and ESG ratings when conducting communication and engagement.
  • Regarding engagement topics, over 80% of the overseas institutions indicated that they have engaged in communication on issues such as climate change, labor rights, supply chain management, and governance structure. On the other hand, domestic institutions focused more on governance structure, pollution control, energy conservation, and climate change.
  • Regarding the requirements for fund managers to implement responsible management, over half of the surveyed institutions indicated that they always consider the fund manager’s ability to engage in communication and participation. Among them, possessing professional knowledge and skills in communication and engagement is one of the highly valued abilities for fund managers. 80% of the surveyed institutions suggested that fund managers should provide regular reports on the asset classes and proportions covered in their communication and engagement activities. Currently, over half of the surveyed institutions are satisfied with the responsible management capabilities of fund managers in China, and overseas institutions have higher expectations for the capabilities of fund managers.
  • Pension funds demonstrate a more prominent focus and commitment to shareholder engagement and responsible management, compared to other types of asset owners. They have relatively comprehensive coverage of responsible management policies and demand a broader range of communication and engagement reporting from fund managers. Additionally, all surveyed pension funds require fund managers to engage in communication and participation with companies in their investment portfolios.

Michelle Weiwei Xian, Senior Vice President of Sustainable Development at Southern Asset Management, delivered a keynote speech on the theme of “Engaging in Transformation.” at the Asia Sustainable Finance Roundtable. She stated, “In the context of energy transition, the shift from traditional to new energy sources needs to be based on a foundation of secure and reliable new energy, while minimizing negative impacts on economic development and social stability. Southern Asset Management does not view divestment from carbon-intensive companies as a simple investment decision, but rather, through the ESG indicators aggregated by Southern Asset Management’s proprietary ESG rating system, we help companies plan their transformation to adapt to the gradual decline in fossil fuel consumption.”

Southern Asset Management is one of the first fund management companies approved by the China Securities Regulatory Commission (CSRC), heralding the beginning of the “new fund era” in China.

Southern Asset Management adheres to a practice-first approach, integrating ESG principles into its long-term strategy and business development. They have independently developed an ESG rating system and database that combines Chinese characteristics with international standards. Through ESG investment strategies, they incorporate ESG factors into investment, research, and risk management. They have received numerous international and domestic ESG awards, including PRI and IFF, making them a benchmark company in ESG practices in the asset management industry.

Southern Asset Management will continue to fulfill its mission, consistently building comprehensive advantages in the asset management field, creating long-term and stable returns for clients, contributing to the high-quality development of the Chinese economy, and promoting sustainable development for human society.

Risk Disclaimer: The above views are for reference only and should not be considered as investment advice. Fund investments come with risks, and investors are advised to carefully read legal documents such as the “Fund Contract” and “Prospectus” before making any investment decisions. The relatively short operating history of funds in our country may not reflect all stages of stock market development. While the fund manager is committed to managing and utilizing fund assets with honesty, diligence, and responsibility, there is no guarantee of profits or minimum returns for the funds under their management. Past performance and net asset value of funds under the company do not indicate future performance. The performance of other funds managed by the fund manager does not guarantee the performance of any particular fund.

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Company Name: China Southern Asset Management
Contact Person: Si Chen
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Country: China