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China Southern Asset Management: ESG strategy may play a role in risk identification and prevention

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From July 9 to July 10, the 2022 Caixin Summer Summer was held. In the section “Exploring the Sustainable Development Driven by Market”, Li Haipeng, deputy general manager and chief investment officer (fixed income) of China Southern Asset Management, shared his opinions.

Host: China Southern Asset Management is an early ESG investment institution in China. Deputy General Manager Li Haipeng is also the deputy leader of ESG leading group of China Southern Asset Management. How does China Southern Asset Management, a mutual fund company, understand ESG’s investment, implement ESG from strategy implementation to internal evaluation, including KPI’s internal performance evaluation?

“Different from traditional financial data, ESG’s indicator system is based on environmental, social, governance and other factors, and focuses on the long-term value-creating ability of enterprises. Therefore, at present, the pricing factor of ESG is increasingly obvious, and everyone can see this from our investment. We believe that in the medium and long term, high-quality enterprises and high-quality investment targets with excellent ESG performance not only have better financial indicators, but also have stronger resilience and long-term growth potential. Take the field of fixed income as an example, originally we mainly used traditional credit analysis to screen high-quality targets. Now, we are also trying to apply the strategy of ESG to evaluate enterprises in more dimensions, which can play a role in risk identification and prevention to a certain extent. ” Li Haipeng said.

Li Haipeng introduced that China Southern Asset Management became a member of PRI in 2018 and was also one of the earlier companies involved in ESG investment in China. At that time, ESG’s data and information were extremely scarce, which was the initial difficulty. Therefore, we can only explore different ways to solve some problems encountered in the process of ESG localization. At present, Fintech is the…

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