Shengshi Investment Jiang Yan: Paying Attention To The Risks And Opportunities Of ESG From The Perspective Of Investment

At the meeting, Jiang Yan, chief sustainable development officer and partner of Shengshi investment, shared the team's cognition and experience on ESG.

Jiang Yan introduced that, as a master fund and government guided fund management institution, Shengshi investment has invested more than 300 funds. In recent years, it has always attached great importance to ESG investment. In addition to the previous Responsible Investment Committee and ESG working group, Shengshi investment has set up a special ESG management department this year, taking the lead in issuing the carbon neutral strategy statement in the industry, In addition, a special working group on climate change is responsible for cross sectoral coordination to promote carbon emission reduction. We hope to play a leading and leading role in the industry and promote more GP to practice ESG investment and green investment.

She said that in the process of communication with domestic GP in the past few years, the team found that many GP with ESG concept or completely formulated ESG system, strategy and goal are dual currency funds. Institutions that have raised funds from US dollar LP have adopted some ESG investment ideas proposed by US dollar LP. Some domestic GP have good practice in ESG investment and green investment.

Government guidance funds and state-owned assets platforms themselves shoulder social responsibilities, including promoting employment, tax growth, poverty alleviation and environmental protection. Many funds with sustainable development themes such as rural revitalization fund, soil pollution prevention fund, chemical industry structure adjustment fund and green fund have been established. It is believed that with the promotion of Rural Revitalization and "3060" strategies and objectives, more and more guidance funds and state-owned assets platforms will integrate the ESG concept into the whole framework, process system and performance evaluation of investment.

Jiang Yan said that Shengshi's investment layout covers various fields, such as new generation information technology, new materials, energy conservation and environmental protection, advanced manufacturing, health care and other fields. ESG investment is not to impose a burden on GP, hinder and restrict GP investment projects, but more from the perspective of compliance to reduce the ESG risk of the portfolio. At the same time, it plans to empower GP and projects through digital management tools, ESG capacity building and other means, reduce costs, improve ESG performance, and generate positive economic, environmental and social benefits, which is conducive to fund-raising, capital market exit and long-term sustainable development.

Different types of LP have different demands and consideration standards. Only when more and more RMB LP reach an agreement on the ESG investment concept and consideration dimension, can more GP practice ESG investment. Shengshi investment also hopes to discuss ESG issues and indicators with domestic LP and GP, and pay more attention to the risks and opportunities of ESG from the perspective of investment.

The realization of China's goal of "carbon peak and carbon neutralization" requires a large amount of long-term capital investment. At present, many state-owned and industrial capitals have established or considered setting up carbon neutral funds. I believe that equity investment institutions can play a greater role in promoting green industry and green technology progress.