ECPI offers second ESG China index
ECPI, a Milan-based provider of sustainability research, rating and indices, has launched a second index of the ESG China Series, developed in partnership with China Securities Index, a Chinese index provider, and Caitong Fund Management, a China-based asset management firm.
The new index, the CSI Caitong ECPI ESG China 100 index, is composed of the top ESG-rated companies of the CSI 300 Index. This new product follows the launch in 2010 of CSI ECPI China ESG 40, the first China ESG index.
ECPI has been investing in China since 2009, developing a specific ESG Rating methodology for the Chinese market and building a local team of analysts based in Shanghai.
Michele Calcaterra, chief executive of ECPI, said: “High ESG-rated companies show a strong sustainable business development model which will, in turn, allow them to access more financial resources than the poor ESG performers. As a result, the introduction of ESG concept will also encourage Chinese companies to raise their extra-financial performance to higher standards.”
Zhao Wenqi, deputy general manager, China Securities Index Co, said: “After 20 years development, Chinese listed companies have made great progress in their business. However, problems exist in several aspects such as the conflicts between the company and the shareholders, the society and the environment. These problems urge the listed companies to pay high attention to their impact on the environment and society.”
“The ESG100 index is designed to track the performance of the 100 most sustainable companies among CSI300 Index constituents,” he added. “Sustainable development is an important and long-term investment theme in China. Together with ECPI, Caitong and all the other partners, CSI will develop more sustainable thematic index products to better serve the needs of the market,” he said.
Chen Dongsheng, general manager, Caitong Fund Management, said: “Along with the restructuring of the economy, Chinese investors are increasingly paying attention to the sustainable development of listed companies. There are indexes focusing on single dimension like social responsibility or governance. But the CSI Caitong ECPI ESG China 100 index, which has been customized for Caitong, is the first product covering all the three aspects of ESG concepts, i.e. environment, social and governance.”