At present, the world is undergoing great changes that have not been seen in a century. The global economic center is gradually shifting to The Pacific Securities Co.Ltd(601099) both sides of the Strait. Many enterprises are not only facing the pressure of transformation and governance, but also facing the environmental risks brought by climate change. In this context, ESG investment has gradually become the consensus of the global capital market. This report aims to clarify the logic and advantages behind ESG investment, analyze the situation and problems faced by the world and China in the development of ESG investment, summarize the development trend presented therein, and predict the future trend of ESG Investment Development in the world and China.
ESG concept is highly consistent with China's national development strategy
Since 2020, China has successively announced several top-level development strategies, such as carbon neutralization, anti cushion and common prosperity. These development strategies are highly consistent with some indicators of the ESG system, especially in the two major issues of environment and social responsibility, highlighting the importance of ESG investment and the increasingly important development trend in China
Enterprises with high ESG scores tend to have stronger profitability than their peers
On the one hand, it stems from its efficient use of raw materials, energy and human resources; On the other hand, because the enterprise has better risk management and corporate governance capabilities, it is better at formulating long-term business plans and incentive plans for executives. By taking advantage of these competitive advantages, enterprises with high ESG score tend to have stronger profitability, so their dividend level is relatively high.
Pension institutions lead the development of global ESG investment market
Globally, institutional investors play a leading role in ESG investment, in which pension is the main participant. As the ESG investment philosophy is highly consistent with pension and the stable investment objectives of pension and its own unique attributes (such as public attribute, long-term attribute and risk aversion attribute), governments are actively promoting pension investment institutions to include ESG factors in their investment strategies
