In March 2024, China Industrial Securities Global Fund, IB Wealth Management and Fudan Management Institute jointly hosted the third "Fudan Management Institute - Xingdong ESG Lecture Hall", and officially released the "2023 Carbon Neutrality Report of China Industrial Securities Global Fund" at the event. Since the release of the Carbon Neutrality White Paper in 2021, the company has disclosed carbon neutrality actions through the Carbon Neutrality Report for three consecutive years, practiced carbon neutrality operations as promised, and worked with partners in academia, industry, and public welfare to continue to advocate green actions and ESG investment.
Beauty is in the long run, and there is progress
A quick overview of China Industrial Securities Global's 2023 carbon neutrality action
Liu Yifeng, senior ESG researcher and investment manager of China Industrial Securities Global Fund
Representatives release the "2023 Carbon Neutrality Report"
"At COP28, there was a saying that everyone has a real role to play, and in the years to come, trusting our voices and resolve will be more important than ever. China Industrial Securities Global Fund will also continue to practice carbon neutrality, invest for good, go far, and contribute to the fight against climate change and the protection of nature. ”
The 2023 Carbon Neutrality Report of China Industrial Securities Global Fund discloses the company's latest carbon neutrality practices, and calculates the company's eight categories of carbon emissions in Scope 1, Scope 2 and part of Scope 3 in 2023. According to the report, the total greenhouse gas emissions from operating activities of China Industrial Securities Global Fund in 2023 were 4,038.54 tons of carbon dioxide equivalent, and the company purchased a sufficient amount of CCER generated by the Mishan Forest Farm (Liumao) Wind Farm Project in Heilongjiang Province through the national voluntary emission reduction and emission trading registration system to offset it, and voluntarily cancelled 4,039 tons, practicing audited carbon neutral operation for the third consecutive year.
China Industrial Securities Global Fund 2023 Carbon Neutrality Report
In 2023, in addition to green operations, the company will continue to practice the concept of carbon neutrality, and actively incorporate climate change response and biodiversity conservation into investment and public welfare practices:
● In terms of investment, in 2023, the company joined the China Climate Joint Participation Platform (CCEI) as a founding member institution, and was invited to attend the Asia-Pacific Roundtable of the United Nations Environment Programme Finance Initiative again to promote ESG investment and green transformation with the industry. In 2023, the company has also carried out a number of ESG research works such as carbon emission intensity management of the investment portfolio and investment impact assessment of the El Niño phenomenon, and will complete the carbon footprint calculation of the portfolio by the end of 2024, actively paying attention to climate change and biodiversity in investment.
● In terms of public welfare, in 2023, the company once again held the "Hand in Hand Environmental Public Welfare Sharing Meeting" at the environmental protection project site to continue to participate in ecological environment governance and green public welfare. Since 2017, the company has donated funds to carry out public welfare tree planting projects with public welfare partners such as Ant Forest, planting Populus euphratica in Kubuqi Desert and Alxa Desert in Inner Mongolia, and has planted more than 36,000 trees for sand prevention and control, covering an area of more than 2,500 mu, and is expected to achieve carbon emission reduction of nearly 8,000 tons in the whole life cycle.
Beauty is in the long run, and there is progress. Whether it is carbon neutrality, ESG investment or nature conservation, sustainable development is a common issue across multiple parties. Starting with the carbon neutrality action of the Industrial Securities Global Fund, the third lecture of the Fudan Institute of Management and Xingdong ESG Lecture Hall was also officially launched——
Invest in nature, from the side to the future
Review of the essence of Fudan Institute of Management and Xingdong ESG Lecture Hall
"We are in the era of the Anthropocene today. Since 1950, human science and technology have developed rapidly, and 9 of the world's 16 key climate indicators have been alarmed, and the rate of species extinction has reached 100 to 1,000 times that of geological time. It is our generation that is changing the planet, and only this generation has a chance to save it. ”
Ren Wenwei, Regional Director of WWF Shanghai, delivered a keynote speech
"The Way Enterprises Evolve in the Framework of One Earth: From CSR to ESG"
As a well-known international environmental protection organization and a researcher at Tongji University and other universities at home and abroad, Mr. Ren Wenwei brings the rich information behind the concept of "One Earth" to the audience from multiple perspectives such as ecology, economics, environmental protection, public welfare, finance and business. "In the past, human beings thought that there was no limit to resources, and we could be like shepherds on the grasslands, and there were resources everywhere. But then we found out that this was not the case, and we entered the era of spaceship economics, to develop our economy with limited resources. If we fly to the rings of Jupiter and look back at our earth, it is just a small stone in the universe, and this little stone has a boundary, and we only have this one stone. ”
"We must go beyond the local and change human consumption behavior, financial behavior, production behavior and governance mode from a global and systematic perspective...... It is our generation that is changing the planet, and only this generation has a chance to save it. Ren Wenwei said that since 1950, human science and technology have developed rapidly, and 9 of the world's 16 key climate indicators have been alarmed, and the rate of species extinction has reached 100 to 1,000 times that of geological time. He pointed out that environmental problems need to be solved by all walks of life. From CSR to ESG is a progressive process, starting from employee welfare, green office, and public welfare activities from a micro perspective, to the disclosure of ESG behavior information and value management, to further realize the management of the upstream and downstream value chain, and lead the industry for good.
"Why do we get involved in something related to sustainability? It's not like most of the benefits are going to be on ourselves, we're doing it for more people in the world, for the better life of our children and grandchildren. How can we motivate consumers to behave sustainably and ESG? We can try it from three perspectives. ”
Xu Qian, associate professor of marketing, School of Management, Fudan University
Keynote Speech "Paying for ESG: Environment and Consumer Behavior"
Professor Xu Qian, a self-proclaimed "marketing psychologist" and good at behavioral science experiments, relied on her own and her team's scientific research work to share three first-hand research results related to "paying for ESG: environment and consumer behavior", and analyzed the psychology and mechanism behind people's daily sustainable consumption behavior from the triple value of "language", "memory" and "self" of ESG and sustainable behavior.
Taking the popular Ant Forest as an example, consumers can accumulate green energy through their daily low-carbon behaviors, and when they accumulate a certain value, they can not only plant a tree on their mobile phones, but also plant a real tree of their own in desertified areas. Mr. Xu's team designed a novel experiment in this regard, "When you have already planted a Saxon tree and accumulated a new wave of energy, will you choose to plant another Saxon, plant a Saxon in another place, or change to a new tree?" The experiment of Mr. Xu's team found that the proportion of people who chose to "let my love spread all over China" to plant trees in another place was significantly higher, and this reflects the "self-worth" that consumers may not have discovered in ESG and sustainable consumption. Finally, Director Xu Qian emphasized that when talking about carbon neutrality and ESG, the perspective is often focused on the production side, but if consumers do not pay for it, a true closed loop cannot be formed, and we cannot achieve complete sustainable development. "When ESG becomes a new consumer growth point, only by having a deep insight into the psychological depths of consumers can companies seize the opportunity. ”
"The investment value of ESG includes the value of the purpose, which is mainly to obtain social benefits, and the value of the instrument, which is mainly concerned with the return on investment. As an asset management company that manages wealth on behalf of customers, it should take a two-pronged approach to achieve dual value for customers. At the same time, the further enrichment of the connotation of the concept of ESG also determines the continuous growth of its investment value. ”
Zhou Shiying, investment manager of multi-asset investment department of IB Wealth Management, Ph.D
Keynote Speech "ESG Investment: Theory and Practice"
As a Ph.D. in Finance and Asset Allocation Investment Manager, Mr. Zhou Shiying from IB Wealth Management shared detailed ESG investment from multiple perspectives such as concept traceability, factor investment, corporate impact and practice trends. "ESG literally has a process from macro to micro, environment E is a relatively macro concept, for example, carbon emissions is a global issue, social aspects are closely related to the industry in which the company is located and the soil in which it lives, and corporate governance G is more of a relatively micro issue", Mr. Zhou Shiying pointed out, "Today, the concept of ESG has been very rich"; "When we invest in companies with high ESG scores, reducing financing costs can further boost corporate profitability, which may also be positively reflected in the stock market, and hopefully form a virtuous circle." ”
Facing the practice and future of ESG investment, Mr. Zhou Shiying said: "The ESG integration method is currently the most widely used method overseas, and the core is to establish a link between ESG factors and asset prices. He also believes that in the face of the challenges of data, standards and public perception, ESG investment still has a long way to go, and IB Wealth Management will continue to strive to make more attempts and innovations.
Yao Chenchen, ESG Director of JinkoSolar, moderated a roundtable discussion with Ren Wenwei, Regional Director of WWF Shanghai, Ye Yuzhang, General Manager of Innovation Business Department of IB Wealth Management, and Wang Zheyu, New Energy Analyst of China Industrial Securities Global Fund
In the roundtable dialogue session, four guests from enterprises, environmental protection and public welfare organizations, bank wealth management, and public funds launched a rich cross-border dialogue from biodiversity conservation and finance, ESG investment to new energy industry.
Mr. Ren Wenwei shared a wealth of "ecosystem value", taking the textile and fashion industry as an example, "There is a perennial herbal fiber that can be made into clothing fibers that grow quickly, and it is degradable and has little impact on the environment. Planting it can be used as a way to restore wetlands and saline lands, so there are many values behind biodiversity that need to be explored." He also said that WWF, as an international environmental protection organization, should not only do a good job in specific nature protection work, but also interact with the whole society and economy, cooperate with the government and other institutions, consumers, and financial institutions, use ESG to identify high-risk areas of investment, and guide the flow of assets in a direction that is beneficial to sustainable development.
Ye Yuzhang, General Manager of the Innovation Business Department of IB Wealth Management, shared the value of ESG investment with bond assets as an example: "The average default rate of ESG bonds is much lower than that of non-ESG bonds. The default rate of ESG bonds is about 0.1%, while the default rate of non-ESG or overall bonds is 0.5-0.6%. He also believes that under the guidance and support of policies, ESG investment in credit, bonds, equity investment and other fields are developing steadily, and a large number of long-term capital such as public welfare institutions and social security are focused on related fields, which is conducive to achieving long-term excess returns. "As an investment institution, we must first ensure the quality of ESG products, so that we can get more funds to promote it, so as to achieve a virtuous cycle of investment returns and social benefits. ”
Wang Zheyu from the Research Department of China Industrial Securities Global Fund added the dual perspectives of the new energy industry and ESG investment. Wang Zheyu believes that the mainland's strong photovoltaic manufacturing capacity has promoted the decline of photovoltaic LCOE, and at the same time, the decline in LCOE has also promoted the further development of photovoltaic manufacturing. However, it should be noted that the upstream manufacturing industry is a high-energy-consuming industry, and its development will have an impact on the environment, and at the same time, the large-scale laying of photovoltaic and wind power will also bring about a decrease in electricity costs, but whether the original land ecology will be damaged in this process, these issues need to be considered. Looking to the future, in the long run, we should also see the advantages of ESG investment in long-term value and risk control. Managers on the enterprise side and asset managers can believe in ESG and practice ESG from the perspectives of environmental protection and social value creation.
Want to read the full story?
Go to the video account of China Industrial Securities Global Fund to watch the live broadcast
复旦管院·兴动ESG大讲堂
The Fudan Institute of Management and the Xingdong ESG Lecture Hall is a series of ESG public welfare activities jointly initiated by China Industrial Securities Global Fund, IB Wealth Management, and the School of Management of Fudan University, and supported by Industrial Securities Charity Foundation.
China Industrial Securities Global Fund is one of the earliest asset management institutions to practice responsible investment in China, issuing the first public fund with a socially responsible investment concept and the first green investment concept in China, and since 2020, it has been a signatory to the PRI United Nations Responsible Investment Organization and a supporting institution of the TCFD Climate-related Financial Disclosure Working Group, fully practicing ESG investment. IB Wealth Management is the first wholly-owned wealth management subsidiary of Equator Bank Industrial Bank in China, and is one of the first batch of ESG-themed bank wealth management products in China, and the scale and number of ESG wealth management products have ranked among the top in the industry. The School of Management of Fudan University is a leading business school in Asia and the world's most advanced business school, with a strong focus on ESG cutting-edge theories and Chinese investment practices, and in the 2023 Global Top 100 MBA Programs list released by the Financial Times (FT), Fudan MBA ranked first in Asia in the sub-category of "ESG and Zero Emission Teaching".
Risk Warning: China Industrial Securities Global Fund promises to manage and use the fund property in good faith, diligence and responsibility, but does not guarantee that the fund will be profitable, nor does it guarantee the minimum return, investors should carefully read the fund contract, prospectus and other fund legal documents, understand the risk and return characteristics of the fund, and according to their own investment objectives, investment period, investment experience, Determine whether the fund is compatible with the investor's risk tolerance, independently judge the investment value of the fund, make investment decisions independently, and bear investment risks by yourself. The mainland fund has been in operation for a relatively short period of time and does not reflect all stages of the development of the stock market. The performance of other funds managed by the fund manager or the performance of other funds previously managed by the fund manager does not constitute a guarantee of the performance of the fund. Funds should be invested with caution and should be chosen carefully. The views represent only individuals, do not represent the position of the company, are for reference only, not as investment advice, and the views are time-sensitive.