As the concept of ESG (Social Responsibility and Environmental, Social and Governance) that advocates responsible investment and promotes sustainable development has gradually become a global consensus, it has also become one of the important investment indicators for investors.
Unlike traditional financial evaluations, ESG metrics provide a new perspective to assess the value and potential of a company. By focusing on ESG information, investors need to consider factors such as corporate environmental contribution, social value, and corporate health governance, in addition to traditional investment factors such as corporate profitability, financial status, and financial returns.
By this logic, investors are able to gain a deeper understanding of the actual operations of the company. On the one hand, it can reduce the asymmetry of information, help it avoid risks in time to a certain extent, and on the other hand, it can better assess the risks of investment and improve investment returns.
At the same time, more and more large institutional investors, such as JP Morgan and Barclays, are also actively studying the relationship between ESG ratings and investment. With the passage of time, ESG investment has gradually become a key reference index for large-scale and high-relationship funds such as sovereign investment funds and pension funds in various countries. These institutions understand that incorporating ESG factors into investment decisions is key to ensuring long-term stability and sustainable development.
As a result, as ESG investment has become a new investment paradigm, investors and major institutions have put forward stricter requirements for corporate social responsibility, and there may be some investment opportunities worth exploring and paying attention to.
Especially in the securities industry, the release of the "Ten Elements of Cultural Construction in the Securities Industry" will "adhere to sustainable development" as one of the ten elements, and clearly encourage securities companies to "build ESG governance structure and governance mechanism", more and more securities companies will integrate ESG concepts into corporate management and business practices, and encourage and guide resources and funds to enter industries in line with the concept of sustainable development.
From the 2023 ESG report of GF Securities, a leading brokerage, we may be able to get some enlightenment.
In the context of the "dual carbon" era, we will actively promote green finance
In line with market trends and policy requirements, many securities companies have begun to actively explore innovative ways to serve the realization of the country's "dual carbon" goals. For example, through the issuance of green bonds, the launch of green investment products, etc., to provide financing support for green industries; Promote the development of the carbon market by carrying out carbon trading, carbon emission trading and other businesses; Promote the development and improvement of the green finance market by participating in the formulation of green finance standards and providing green finance consulting services.
In this regard, GF Securities, as a "pacesetter", has published ESG reports for many years, firmly implemented the new development concept of "innovation, coordination, green, openness and sharing", focused on its main responsibilities and main businesses, and promoted the sustainable development of the company, the environment and society, and has already achieved many results.
According to GF Securities' latest 2023 ESG report, in 2023, the company provided debt financing services to 157 issuers, issuing a total of 416 bonds, with an issuance scale of RMB1,614.708 billion. Among them, the Company underwrote and issued 13 green bonds with an issuance scale of RMB166.6 billion, effectively guiding social funds to invest in green industries such as environmental governance, energy conservation, emission reduction, and low-carbon environmental protection, promoting the construction of ecological civilization and supporting the development of green industries. As a channel for direct financing, bond financing has played an active role in optimizing the structure of social financing and reducing the cost of social financing.
At the same time, GF Securities invested a total of 4.466 billion yuan in environmental protection-related corporate bonds during the year, involving new energy development, waste treatment, solid waste processing, environmental governance, clean energy, energy conservation and emission reduction, efficient energy storage and smart energy. The new investment in green bonds was 3.349 billion yuan, and the raised funds were specially used for green projects such as energy conservation and environmental protection, pollution prevention and control, resource conservation and recycling. Among them, 1.459 billion yuan of carbon neutrality bonds, as a sub-variety of green debt financing tools, raise funds for green projects with carbon emission reduction benefits, with excellent professionalism and flexible and efficient service capabilities, to deliver financial "living water" for the green and low-carbon economy, and actively practice the concept of ESG responsible investment.
In addition, GF Securities has also carried out extensive research and practice in the field of ESG, and its subsidiary, GF Fund, has steadily developed ESG strategies and solidly promoted the construction of ESG rating system and sustainable investment management system. It not only helps to improve the company's ESG performance, but also makes a positive contribution to promoting the healthy development of the green finance market.
It is worth noting that in September 2022, GF Securities was officially included in the Hang Seng Corporate Sustainability Index series as a constituent stock, which means that its performance in sustainable development has been recognized by authoritative institutions.
In general, ESG is not only a manifestation of social responsibility, but also a strategic business decision. GF Securities is ESG-oriented in its actual business development, and has taken multiple measures to connect its own development with the development of the environment and society, contributing to the high-quality development of the real economy.
Realize social value in multiple dimensions, in line with ESG investment philosophy
The innovative exploration of business is just one manifestation of GF Securities' practice of social responsibility.
At the same time, GF Securities has also made many phased achievements in the fields of rural revitalization, teaching assistance, medical assistance, and public welfare by continuously giving full play to its professional advantages, continuously improving people's livelihood and well-being, and further realizing social value.
GF Securities' 2023 ESG report pointed out that in terms of rural revitalization, first of all, GF Securities has coordinated the "one company and one county" pairing assistance plan, and carried out industrial assistance, consumption assistance, and public welfare assistance in six former national-level poverty-stricken counties, including Wuzhishan, Baisha, Lingao, Antu, Longjing, and Nankang, Jilin, and Nankang, Jilin, to build rural school playgrounds, set up "GF Inspirational Classes" and other student assistance projects, subsidize the construction of agricultural planting industrial parks, and carry out financial training and agricultural technology training, covering more than 2 beneficiaries. 000 people.
Secondly, GF Securities has deepened its assistance work in Zhen'an Town, Yunfu City, Guangdong Province, aiming to consolidate the achievements of poverty alleviation, improve the development level of local industries, improve public infrastructure, improve the quality of public services, and continuously improve the happiness and sense of gain of the local people.
In addition, GF Securities actively participated in the "High-quality Development Project of 100 Counties, Thousands of Towns and Thousands of Villages" in Guangdong Province, set up a special work leading group, and sent cadres to Guangning County, Zhaoqing to take temporary posts to participate in vertical assistance. The company also participated in the "6.30" rural revitalization activity in Guangdong Province and donated 5 million yuan to support the development of rural revitalization in Guangdong Province.
It is worth mentioning that during the reporting period, due to its social responsibility and contribution in the field of rural revitalization, the company won more than 10 awards, such as the "Guangdong Poverty Alleviation and Poverty Alleviation Kapok Cup Gold Cup", the best practice case of rural revitalization of listed companies and the advanced unit of rural revitalization.
Source: GF Securities 2023 ESG Report
In terms of enthusiasm for public welfare, GF Securities Social Welfare Foundation, led by GF Securities, has carried out a series of public welfare projects with the main line of helping students and promoting education and poverty alleviation. According to GF Securities' 2023 ESG report, as of the end of 2023, GF Securities' social welfare foundation has spent more than 280 million yuan on public welfare, fully reflecting the importance that GF Securities attaches to public welfare.
Taking the "United Nations Sustainable Development Goals Demonstration Village" as an example, the FAO official Weibo pointed out that the GF Securities Social Welfare Foundation funded US$1 million in 2019 to launch the demonstration village project in cooperation with the Ministry of Agriculture and Rural Affairs of China, the Food and Agriculture Organization of the United Nations, and the China Agricultural Science and Education Foundation, focusing on the "eradication of poverty and hunger" and "responsible consumption and production" in the United Nations Sustainable Development Goals, which was successfully completed in August 2023.
Source: GF Securities 2023 ESG Report
Through the model of "Internet + agriculture + finance", 16 villages in Longshan County, Hunan Province, Laifeng County, Hubei Province, Meigu County, Sichuan Province, and Baishali Autonomous County, Hainan Province, which were former state-level poverty alleviation counties, have promoted the transformation of traditional agriculture to ecological agriculture and modern agriculture through measures such as carrying out farmer field school training and integrating e-commerce platforms to sell agricultural products, and provide farmers with all-round assistance.
The Food and Agriculture Organization of the United Nations (FAO) spoke highly of the project, which was considered innovative and exemplary as the first project fully funded by the private sector in China. At the same time, the project was selected as one of the "Top 50 Poverty Alleviation Cases of Social Organizations" by the Poverty Alleviation Office of the State Council of the People's Republic of China in 2019, which directly demonstrates the affirmation of the government and all sectors of society for GF Securities' public welfare actions.
Over the course of three years, the project has participated in and witnessed China's poverty alleviation journey, which has not only greatly improved the skills and knowledge of local farmers, but also promoted the development of the local economy and the sale of local products, providing better living conditions and more employment opportunities for local farmers.
According to GF Securities' 2023 ESG report, the project invited external experts from the Ministry of Agriculture and Rural Affairs, the Chinese Academy of Agricultural Sciences, the Chinese Academy of Tropical Agricultural Sciences, and local experts such as the chairman of cooperatives and leaders to conduct training, developed more than 30 course modules including green production, e-commerce sales, and smart agriculture, and trained a total of 300 rural grassroots counselors, benefiting 3,000 villagers.
Through the establishment of GF Charity Foundation and the development of diversified public welfare projects, GF Securities has practiced social responsibility with practical actions, which is not only a manifestation of corporate social responsibility, but also a positive contribution to the progress and development of society, which perfectly fits the characteristics required by the ESG investment concept mentioned at the beginning.
epilogue
As one of the first comprehensive securities firms in China, GF Securities has continued to create social value and has been at the forefront of the industry in terms of social responsibility in the course of more than 30 years of development.
In other words, GF Securities actively fulfills its social responsibilities, pays attention to social welfare undertakings, and gives back to the society with practical actions while making positive contributions to social and economic development through its own business development and innovation.
In the past year, GF Securities has interpreted the win-win situation of its own commercial value and social responsibility value with practical actions, and once again let the outside world see its corporate responsibility. As ESG has become the "gold standard" for investment, GF Securities will be recognized by more investors and obtain higher valuations and better development opportunities in the capital market by actively fulfilling its social responsibilities and achieving positive results.