China Southern Asset Management Releases 2021 ESG Investment Report
China Southern Asset Management
7 min read
New York, NY, July 22, 2022 (GLOBE NEWSWIRE) -- Recently, China Southern Asset Management released the 2021 ESG Investment Report. The report shows that, as the pioneer of ESG investment in the China asset management industry, China Southern Asset Management is actively fulfilling its environmental, social and governance responsibilities in many aspects, pursuing the unity of economic and social benefits, and contributing to asset management for achieving high-quality and sustainable development.
Yang Xiaosong, general manager of China Southern Asset Management, pointed out in the report: "The new era is an era of high quality and sustainable development. The new goal of the new era puts forward newer and higher requirements for China's asset management industry to practice ESG investment. China Southern Asset Management has been serving customers for more than 24 years, and always regards creating value for customers and society as the source of all business. It is committed to improving its core competence through digital intelligent transformation and providing professional asset management solutions for the problems of the times. "
Adhere to ESG investment and fully implement ESG concept
Since joining PRI in 2018, China Southern Asset Management has promoted ESG integration and reshaped the cornerstone of value creation in all fields of investment. Taking ESG database as an example, in 2021, China Southern Asset Management completed ESG self-rating system and database covering 4,500+A-share listed companies and 6,364 issuers through external data collection and AI algorithm, involving 17 subjects, 39 sub-subjects and 115 sub-categories of evaluation indicators. In particular, with the advantages of ESG rating system, such as coverage, adaptability and innovation, in 2021, "China Southern Asset Management Management Management Fixed Income Incorporated into ESG Integration" was shortlisted in PRI "Responsible Investment Award" emerging market direction, and was recognized by the international authority.
In addition to building a reliable database, China Southern Asset Management has also built a relatively complete ESG management framework and process system, and built an ESG risk assessment system in an all-round way. ESG elements are included in the portfolio through the integration method, screening method and subject method to enhance the resilience of portfolio value creation.
In addition, China Southern Asset Management has also improved the ESG performance of its investment targets through the active holder strategy: in 2021, China Southern Asset Management has conducted ESG impact assessment in the voting of 2010 holders' meetings, and actively offered reference and suggestions to listed companies on specific ESG issues such as climate change. For example, after more than one year and several rounds of communication, driven by China Southern Asset Management, a leading enterprise in the coal field has established a relatively complete working mechanism and staffing for climate change management, and publicly disclosed the commitment and implementation path of the dual-carbon target. The company's "Transition Pathway Initiative" (TPI) climate change risk management rating was upgraded to one level in 2021.
Create sustainable value and serve high-quality development
Continuous value creation for customers is the foundation of the asset management industry. China Southern Asset Management has long adhered to the business philosophy of "customer demand-oriented, value creation as the core and product innovation as the engine" and explored sustainable value creation. By the end of 2021, the scale of public offering management of China Southern Asset Management had exceeded 1 trillion yuan, the number of service customers had exceeded 169 million, and the accumulated dividends had exceeded 150 billion yuan.
In terms of product innovation, in 2021, China Southern Asset Management developed and launched various innovative products, including China Southern CSI STAR&CHINEXT 50 ETF Feeder Fund, China Southern MSCI China A 50 Connect ETF Feeder Fund, China Southern CSI Negotiable Certificate of Deposit AAA Index 7-Day Holding Period Fund, China Southern Beijing Stock Exchange Select Two-Year Regular Open Hybrid Initiating Fund, etc., to meet the diversified investment needs of customers and serve the multi-level capital market construction.
In terms of talent training, China Southern Asset Management has actively formulated a diversified, high-level and all-round talent training mechanism around the business goal of "value-driven, intelligent selection of technology", and has built a multi-level talent echelon through campus recruitment, social recruitment and internal training, which has laid a talent advantage for the company's high-quality development.
As for the digital transformation, Euler system was released to create a Fintech ecological closed loop integrating investment research, operation, customer service and compliance risk control; As the first batch of MutualFund to get the pilot of fund investment consultants in China, "Sinan Investment Consultants" launched by China Southern Asset Management fully integrates professional asset allocation ability, risk management ability and customer service ability by means of Fintech. By the end of 2021, Sinan Investment Consultants accounted for 87% of profitable customers, 72% of customer retention rate, and 80% of return investment amount, which improved the chronic issue of "funds do earn money, but the fund investors don't earn money".
In terms of helping the national pension, in 2021, China Southern Asset Management will continue to rely on years of accumulated pension management experience, professional investment research team, and product system, rigorous risk control system and intelligent investment consultant technology to promote the construction of the national pension system in an all-round way. By the end of 2021, the scale of all kinds of pension assets managed by China Southern Asset Management has exceeded 350 billion yuan, which has won the trust and praise from the clients of Social Security Fund Council, enterprise annuity, occupational annuity and pension target fund.
In terms of customer service, China Southern Asset Management sincerely serves customers through multiple channels. In 2021, the website of China Southern Asset Management Investor Education Base was put into operation; "Southern Live Studio" has over 1,200 live broadcasts throughout the year, covering 120 million investors; In 2021, the customer service satisfaction rate was 99.69%, and the settlement rate of customer complaints was 100%.
Support the double carbon strategy and promote the green innovation industry
In 2021, China Southern Asset Management built its own carbon emission database and integrated it into ESG rating, focusing on exploring investment opportunities in the new energy direction and carbon emission reduction, and enhancing investment in the "double carbon" field. By the end of 2021, the cumulative total scale of green investment in products of China Southern Asset Management was about 232.13 billion yuan, an increase of 130.695 billion yuan or 129% compared with the beginning of the year, which helped the economic and social green transformation with practical actions.
China Southern Asset Management also accounts for the carbon emissions of the company's operations in accordance with international standards. Since 2020, it has achieved carbon neutrality in its own operations, becoming the first asset management company in China to achieve carbon neutrality.
Actively give back to the society, take the initiative to fulfill responsibilities and undertake missions
China Southern Asset Management attaches great importance to fulfilling its social responsibility, actively carries out various charitable and environmental protection work, and sets an industry benchmark with the responsibility image of caring enterprises. In 2021, China Southern Asset Management launched 6 public welfare projects, with an investment of more than 4.12 million yuan. Since the establishment of the company, China Southern Asset Management has donated 23,163,900 yuan directly and through its China Southern Asset Management Charity Foundation.
For example, in November, 2021, China Southern Asset Management donated 250,000 yuan for the aid program for poor students in Fenxi County, and funded 247 students; In July, 2021, many places in Henan Province suffered from severe storms and floods. To help Henan people fight the rainstorm, China Southern Asset Management donated RMB 3 million to Henan Charity Federation, which was earmarked for flood relief and post-disaster reconstruction in Henan Province.
In order to spread the concept of sustainable development more widely and build a sustainable development ecosystem, in addition to becoming a signatory of the PRI, China Southern Asset Management has successively become a signatory of Climate Action 100+, a signatory of the Sustainable Blue Economy Finance Initiative (UNEP FI), a signatory of the Global Environmental Information Research Center (CDP), a member of the Council of China ESG Leaders' Organization, a supporting organization of the Climate Change-related Financial Information Disclosure Working Group (TCFD), the first sponsor of Honey Lake Women Directors Initiative, etc.
China Southern Asset Management said that investment is an endless exploration of the future and a way to create the future actively. ESG investment is a difficult but correct thing. In the future, China Southern Asset Management will further implement the high-quality development in the industry and continue to promote its sustainable development through persistent efforts.
