Southern Asset Management joins Climate Action 100+ to care for climate and spur ESG investing

Southern Asset Management has recently signed up to an initiative called Climate Action 100+, marking another solid step toward the promotion of green, sustainable economy in China with ESG investing. Climate Action 100+ is an investor initiative to ensure the world’s 161 largest corporate greenhouse gas emitters take necessary action on climate change, improve governance and strengthen climate-related financial disclosures. So far, more than 420 global investors representing more than US$38 trillion in assets under management (AUM) have become signatories of the Climate Action 100+ initiative.

Mr. Shi Bo, Deputy General Manager & Chief Investment Officer (Equity) of Southern Asset Management, said, the climate-change risk will not only have important effects upon a company’s long-term development prospects but also possibly disturb the stability of global financial system. Therefore, climate change is a macro-factor requiring close attention of investors. According to the Statement on the State of the Global Climate in 2019, climate change, as well as extreme weather and climate events are disrupting the development of human society and economy, people’s health, displacement of populations, food security and terrestrial and marine ecosystems, among others. Physical and transformation risks arising from climate change will affect investment portfolio in a direct or indirect way. For the sake of long-term returns to holders and sustainable development of the society, we need to take early action and encourage all parties to attach more importance to the hazards of climate change.

As one of the earliest large asset managers which acted upon the ESG investing philosophy in China, Southern Asset Management has committed itself to actively exploring the localization of environmental, social and governance (ESG). It has already put in place a sound ESG management structure and process system, an assessment system and database of ESG issues-related risks, as well as a supportive risk management mechanism, allowing it to get long-term, sustainable investment returns through a more comprehensive analysis of investment targets’ potential risks. Besides, Southern Asset Management also places a high premium on the implementation of activist shareholder strategies under ESG. After becoming a part of Climate Action 100+, Southern Asset Management will deepen exchanges on reduction of carbon emissions and pursuit of sustainable development with all stakeholders and join them in increasing the recognition of carbon emissions, climate change and high-quality sustainable development by the corporate sector and the society and making endeavors to achieve the Paris Agreement.

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Company Name: China Southern Asset Management
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Country: China