In 2021, Chinese securities companies made a breakthrough in the field of ESG (environmental, social and corporate governance). According to the statistics of MSCI data by the reporter of the securities times, the ESG rating of Orient Securities Company Limited(600958) and Huatai Securities Co.Ltd(601688) entered the class a echelon for the first time in 2021, which is the highest rating of Chinese securities companies at present.
The reporter learned that a number of securities companies have made great efforts in ESG governance in 2021, such as setting up an ESG committee to systematically promote ESG management. Although some securities companies have made achievements in ESG rating, the overall rating of Chinese securities companies is still low. According to the analysis of insiders, it is mainly due to the late start of ESG management, insufficient information disclosure, insufficient attention to rating work, etc.
ESG rating of 4 securities companies increased
According to the official website of MSCI, ESG rating results are divided into AAA, AA, a, BBB, BB, B and CCC from high to low. According to the statistics of the securities times, the ESG annual rating of about 17 Chinese securities companies will be updated in 2021.
Among them, Orient Securities Company Limited(600958) rose in ESG rating in December, from BBB to a. China Industrial Securities Co.Ltd(601377) from BB to BBB. In addition, the ESG rating of China Securities Co.Ltd(601066) increased from BB to BBB in the fourth quarter of 2021. Huatai Securities Co.Ltd(601688) was upgraded from BBB to a in August.
The reporter of the securities times learned that the above-mentioned securities companies will take actions in ESG governance, expanding information disclosure and improving their low-carbon operation in 2021.
Orient Securities Company Limited(600958) indicates that since 2021, the company has established a professional committee and working group for sustainable development; The Orient Securities Company Limited(600958) · carbon neutralization index developed in cooperation with professional institutions was launched in Shanghai.
China Industrial Securities Co.Ltd(601377) in an interview with reporters, relevant people said that the company had established a “strategy and ESG committee” at the board level in 2021; Establish a leading group and working group for green securities finance. In addition, the environmental information disclosure report shall be issued.
China Securities Co.Ltd(601066) introduction: in 2021, the company analyzed the international mainstream ESG rating system and identified the company’s rating weaknesses and improvement direction; The company’s ESG Committee was formally established in November; Expand information disclosure channels; Prepare ESG report systematically.
Another brokerage obtained the ESG rating of MSCI for the first time. According to the official website of MSCI, Zhongtai Securities Co.Ltd(600918) and Boc International (China) Co.Ltd(601696) obtained ESG rating for the first time in 2021, both of which were grade B. Guolian Securities Co.Ltd(601456) was also rated BBB for the first time.
The ESG ratings of Guosen Securities Co.Ltd(002736) , Citic Securities Company Limited(600030) , Gf Securities Co.Ltd(000776) , First Capital Securities Co.Ltd(002797) , China Merchants Securities Co.Ltd(600999) , Galaxy Securities, China International Capital Corporation Limited(601995) , Haitong Securities Company Limited(600837) , Shenwan Hongyuan Group Co.Ltd(000166) are consistent with those in 2020. Among them, Shenwan Hongyuan Group Co.Ltd(000166) has a low ESG rating and has been rated as CCC for many consecutive years. The ESG rating of Founder Securities Co.Ltd(601901) was downgraded from BBB to BB.
late start and insufficient letter phi
The reporter noted that the overall rating of Chinese securities companies is not high. According to the rating in 2020, more than 70% of securities companies are rated below BB (inclusive).
China Securities Co.Ltd(601066) when interviewed by the securities times, relevant people analyzed that the main reasons for the low performance of China’s securities firm MSCI in ESG rating are: first, the attention to ESG rating needs to be improved, and the understanding of rating methods is insufficient; Second, the level of ESG information disclosure is insufficient, especially for issues such as responsible investment and the impact of Finance on the environment, only a few peers have fully disclosed relevant practices.
In addition, ESG insiders believe that compared with international peers, ESG management of Chinese securities companies started relatively late, and it still takes some time from layout ESG management to performance improvement and achievement presentation.
The person also mentioned that Chinese securities companies may have rating scores lower than the actual management level of enterprises because the letter phi is not sufficient or targeted enough.
Then, will there be limitations in international evaluation indicators? In this regard, the above ESG insiders told the securities times that there must be limitations. After all, in the process of their own business development, Chinese securities companies should first pay attention to China’s laws, regulations and industry requirements.
In this person’s view, some international indicators need a localization process, such as the issue of “employee diversification”. Enterprises outside China understand different concepts, but at present, it is impossible to classify the actions such as equal employment carried out by Chinese securities companies under this issue.
China Securities Co.Ltd(601066) people said that on the one hand, China’s securities industry should actively integrate into the international ESG rating system; On the one hand, we should integrate resources and work together to explore the ESG rating system suitable for China.
The person suggested that in terms of rating dimension, take the three dimensions of ESG as the core, combined with the identification of key business sectors, and select key ESG topics in the industry, such as brokerage business – customer rights and interests protection, privacy and information security, and investor education; Investment banking – financing environment impact, ESG product and service innovation; Asset management and wealth management business – responsible investment.
(Securities Times)
