Preface
ESG (environmental, social and Governance) is an investment concept that focuses on corporate environment, social responsibility, environmental protection and sustainable development rather than just financial indicators, covering multiple dimensions such as ESG information disclosure, rating and investment. It aims to promote the company to integrate external factors such as social and environmental governance into the internal business management of the enterprise, reduce risks, give full play to the social responsibility of the enterprise and realize the greater value of the enterprise. The research and innovation Department of Huabao securities aims to track the ESG field for a long time, release the ESG high-frequency signal, create research results in the ESG field, explore the index quantification method of China’s ESG evaluation system, and help industrial enterprises and investors have a deeper and comprehensive understanding of the ESG evaluation system, ESG information disclosure and ESG investment.
Research viewpoint
ESG event focus: on March 29, the National Energy Administration issued a notice on printing and distributing the guiding opinions on energy work in 2022. The notice proposes to enhance the supply guarantee capacity. Adhere to the in-depth implementation of the objectives and requirements of carbon peaking and carbon neutralization, vigorously develop non fossil energy, strive to cultivate a new energy Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) model, continuously optimize the energy structure and be consistent with the concept of ESG. Adhere to the bottom line thinking and problem orientation, strengthen the capacity of energy storage and transportation, regulation and demand side response, and effectively ensure the stable supply of energy. We will intensify efforts to tackle key problems in energy technology and equipment and core components, actively promote the digital and intelligent upgrading of energy systems, and improve the modernization level of the energy industry chain. Enterprises should firmly grasp the ESG concept and evaluation criteria, adjust the development strategy and conform to the national guidelines and policies.
Sustainable investment and financing: in terms of ESG funds, by the end of March 2022, the cumulative returns of CSI 300esg benchmark index and CSI 500esg benchmark index since July 2017 were 2.46% and 7.47% higher than the parent index respectively. Compared with the end of February, the cumulative return gap has widened. In terms of green bonds, as of March 31, 2022, 288 carbon neutral bonds have been raised, with a total raising scale of RMB 310533 billion. The number, total scale and average scale of clean energy carbon neutral bonds are higher than other types of carbon neutral bonds.
ESG management analysis of key companies: China Molybdenum Co.Ltd(603993) since 2016, the independent ESG report in Chinese and English has been issued every year; In 2018, the company formulated the road map of sustainable development governance system and established the strategy and Sustainable Development Committee at the board level; In 2019, the company established the Sustainable Development Executive Committee at the executive level China Molybdenum Co.Ltd(603993) the excellent case shows that making good use of ESG report as a platform to fully display the company’s work achievements in environment, corporate social responsibility and sustainable development will be of great benefit to listed companies in attracting responsible investors and green investment and financing.
Risk tips: 1 The promotion of ESG policies outside China was less than expected; 2. The macroeconomic downturn exceeded expectations.
