I. what is ESG investment

ESG investment belongs to the field of green investment, also commonly known as "socially responsible investment". Social responsibility investment is an investment concept that has attracted much attention in recent years, which means that investors should consider corporate social responsibility performance and social impact in addition to investment return.

the English full name of p>ESG is Environment, Social and Governance, which means that in investment, we need to measure the sustainability of enterprises and the three core factors of environmental and social impact. The essence of ESG investment is to select truly high-quality and sustainable companies, rather than companies that rely on short-term resource consumption as their business model.

For investors, there are three main purposes of ESG investment:

(1) negative screening of investment targets through environmental, social and corporate governance indicators, so as to achieve the purpose of "mine clearance" and enhance the return rate of investment portfolio;

(2) Strengthen the social value of investment;

(3) Practice the value orientation of investors.

second, the investment benefits of ESG

first, ESG investment strategy has the opportunity to bring obvious excess returns: the total return of the index focusing on ESG (MSCI Emerging Markets ESG Net Return Index) has consistently outperformed the traditional standard index (MSCI Emerging Markets Net Return Index) since 29.

Secondly, avoid stepping on thunder: With the more effective information of A-share market, the difficulty and cost of finding _ _ will increase gradually, and avoiding stepping on thunder will play a more important role than screening high-quality companies. ESG, as an index to comprehensively evaluate the company's risk management and control ability, is naturally the best demining index.

thirdly, ESG information helps to tap the company from a non-financial perspective: corporate financial reports mainly focus on describing the company's operating conditions from a financial perspective, while ESG information can disclose more alternative information for investors for investment from a non-financial perspective. For example, the energy consumption level disclosed by manufacturing enterprises often reflects the advanced level of a company's production technology.

iii. policy background of ESG in China

when talking about ESG in China, the biggest policy background is "carbon neutrality" and "* * * with prosperity".

in fact, paying attention to reducing carbon emissions is also a kind of social responsibility. In order to realize "E" and "S", fundamental reforms such as enterprise management concepts and governance structures are needed, so the three dimensions in ESG complement each other. The Tenth Five-Year Plan has set the tone for the green transformation and development in the next five years, which is a clear guide to the theme of market investment and financing. With the improvement of laws and policies for green development, the investability of green themes will also be enhanced, and China's "E" related funds will be further developed.