On the afternoon of April 18, the closed-door seminar "Practicing 'Carbon Neutrality': Equity Investment Opportunities and Challenges" sponsored by 21st Century Business Herald, Beijing Green Finance Association and 21st Century Innovation Capital Research Institute was held in Beijing.
Wang Dongliang, investment director of China Life Investment, said in his speech that the general trend of "carbon neutrality" has brought everyone a new perspective and methodology to observe various industries, but the determination of specific investment strategies and investment capacity building to the substantive judgment of investment projects, it is obviously not enough to have a cognitive perspective or methodology.
"The reasonable implementation path is to apply this new investment perspective or investment clue to the advantageous industry areas that they are good at in the way of 'cross-verification', and form an organic investment ecological interaction system to avoid the flashy bubble and create real investment value." Wang Dongliang said.
(On-site map Wang Dongliang, Investment Director of China Life Investment)
Wang Dongliang mainly focuses on investment in areas such as logistics supply chain and new infrastructure, and his sharing first revolves around "carbon neutrality" and how ESG can complete the leap from theory to practice.
He believes that when formulating an investment strategy, it is obviously not enough to just "wrap yourself" with a general trend or methodology. The carbon neutral perspective can encompass almost all of the popular investment industries, but this perspective or methodology must be truly integrated with "vertical application scenarios".
At the same time, equity investment will consider core elements such as market space, industry pattern, and development momentum when making project decisions. From the perspective of the valuation of the underlying enterprise, "carbon neutrality" can also be used as a new market space or growth driver and lever, fully integrating this motivation in the specific investment analysis of corporate value.
"Specifically, we still have to think substantively about the combination of this trend and the investment areas we are best at in order to achieve a truly executable investment strategy and investment path, which is a process of "clearing the way" by defining the investment scope and investment system. For example, Wang Dongliang said that in the past few years, he has mainly focused on the investment of logistics supply chain and new infrastructure, and various segments of the logistics supply chain are often important scenarios on the carbon neutral demand side, such as urban distribution of new energy commercial vehicles or long-distance unmanned driving; and in recent years, the IDC industry, which represents new infrastructure, as one of the largest energy consumption scenarios, will inevitably provide new investment dimensions and specific investment opportunities from the supply side of green electricity.
That is to say, the methodology or vision can only be used as an investment strategy with practical value to play a role as an investment strategy with practical value if it is confirmed through investment practice, and even cross-verified in different fields of investment, and even to build an ecological interaction system for the invested project.
In the current alternative investment market in China, there is no shortage of managers who have expanded their business areas from focusing on equity investment in the early years to diversified asset management including equity investment, real estate and infrastructure. Another major sharing of Wang Dongliang was to discuss the application of PE/VC multi-business practice experience in "carbon neutral" related asset investment.
"Is it that PE/VCs don't have a chance in the infrastructure? We don't think so. New energy will inevitably form a large number of new infrastructure systems on the supply side, such as various asset packages related to solar wind energy. One of our methods is to fully combine PE investment with infrastructure investment, and support the asset management platform or asset manager and related technical tools of new infrastructure from the form of active management and active incubation. For example, he said that in the past few years, the investment practice of many logistics real estate platforms and Internet data center platforms can be seamlessly applied to the investment system of new energy asset facilities. Some new infrastructure assets gradually form observable and traceable return risk characteristics, and enter the configurable vision of institutional investors, which is also a gradual process, which will inevitably produce a lot of high-quality opportunities for PE and infrastructure investment.
"I hope that we can work together to cultivate new assets and new opportunities under 'carbon neutrality'." In particular, on the basis of cross-validation, investment insights are formed and investment value and financial returns are created for investors. In Wang Dongliang's view, coupled with appropriate carbon trading financial leverage, a new market has just begun.
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