On December 1st, the United Nations-supported Principles for Responsible Investment (PRI)announced the list of the 2022 PRI Award. As the only representative of Chinese-funded institutions, Southern Asset Management's "Facilitating Climate Transition - Application of carbon emissions database" project won two awards: "ESG incorporation initiative of the year" and "Emerging markets initiative of the year". This is also the first time that China Mutual Fund Company won the PRI Award.
It is understood that the United Nations-supported Principles for Responsible Investment (PRI) is one of the most authoritative ESG organizations in the world. There are over 5,000 signatories, including leading asset owners, asset management institutions, and service providers worldwide, with total assets under management of over 120 trillion USD (data source: PRI official website). PRI Awards are divided into five categories, including ESG incorporation initiative of the year, ESG research innovation of the year, Stewardship initiative of the year, Real-world impact of the year and Emerging markets initiative of the year. The global ESG expert jury selects the participating projects, and each category selects one award, totaling five awards.
With the blessing of China's "double-carbon" goal, the establishment of domestic ESG scientific investment system has ushered in a period of rapid development, and ESG investment are increasingly becoming hot topic in the Chinese investments field. As an important participant in the capital market, of the mutual fund has also actively participated in ESG investment. As one of the leading asset management institutions in China, Southern Asset Management has actively participated and engaged in ESG investment for many years. Southern Asset Management officially became a signatory of PRI as early as 2018, adhered to the six principles of PRI, and continuously promoted ESG R&D and investment. The project "Facilitating climate transition - Application of carbon emissions database" won two awards: 2022 PRI Awards-ESG incorporation initiative of the year and Emerging markets initiative of the year, which not only fully affirmed Southern Asset Management's practice of ESG investment, but also was an important symbol of China's ESG investment being recognized on the international stage.
In recent years, the Chinese capital market has paid more attention to ESG, and climate change has become one of the top issues in ESG field. In this context, Southern Asset Management attaches great importance to incorporating climate data into its equity portfolio to identify risks and opportunities related to climate change and has established a carbon emission database to dynamically manage its portfolio climate risk exposure.
Southern Asset Management Carbon Emission Database, as a dynamic adjustment tool, can effectively track the progress of carbon emission reduction of enterprises, and provide more comprehensive and practical information for the follow-up qualitative analysis and active research of investment research teams, so as to optimize investment strategies and gradually realize decarbonization and emission reduction of investment portfolios.
Southern Asset Management will further promote invested enterprises to improve climate information disclosure by participating in corporate governance, and help enterprises to effectively assess and respond to the risks brought by climate change. It will also continue to improve climate-related databases and enhance the resilience of investment portfolios to climate change.