CICC ESG Research｜Knowledge United for a Better Future
In recent years, the world has been in agreement that protecting the environment and investing in sustainable development are of the utmost importance. China participated in developing, in addition to promising to adhere to, the goal of carbon neutrality, and investing in ESG (Environmental, Social, and Governance) factors has become the norm. For a long time, CICC, as a financial service institution, has committed to serving our country as it works toward this overarching goal. In this process, CICC has committed itself to living the ESG lifestyle and empowering others to do the same.
Through consistent research into sustainable finance, CICC has gradually improved its theoretical foundation, and, at the same time, it has been working extensively with partners to explore and promote its long-term development.
I. Support ESG development from intellectuals and research
CICC Research and CICC Global Institute focus on major issues in the new development stage, support sustainable development from intellectuals and research, and contribute to the research of ESG investment at home and abroad.
Guidebook to Carbon Neutrality in China
Through both top-down and bottom-up approaches, CICC has viewed Carbon Neutrality from the perspectives of total emissions and structure, and has innovated in its use of the idea of a green premium in China. In addition, CICC has thoroughly investigated methods China can use in achieving carbon neutrality in 40 years and its effect on the economy.
This guidebook was initially released in March of 2021 and was published in paper in September of the same year. Ninety-one thousand copies have since been published, and it was voted the year’s most influential piece of literature on finance and economics, in addition to receiving other accolades.
CICC’s ESG Manual
Three macro research teams and over 20 sector research teams from CICC Research worked together to complete two volumes of the ESG Manual.
Volume 1 provides a comprehensive overview of the development of the ESG philosophy and its practice throughout the world. It also covers the implications of ESG and discusses the current boundaries of its influence, examining its “ecosphere” and “value chain”; Volume 2 introduces the ESG rating system set up by CICC Research.
Thematic Report: Opportunities and Challenges in ESG Investment
In this report, CICC speculates on the future of ESG investment in China and discusses the process of creating an ESG investment ecosystem to provide some more strength to research in China on ESG investment. CICC realizes this by examining the origins of ESG, its current status, its potential future, its interactions with business operations, its interactions with the value of companies, ways of rating it, changes in ESG strategies and ESG products and their regulation, ESG research on asset owners, research on the disclosure of information and its regulation in the Asia-Pacific region, the experiences of European AMCs with ESG investing, in addition to other aspects.
The “ESG Monthly” series
CICC tracks worldwide tendencies in ESG investing, ESG products and factor performance, developments in ESG ratings, and results of academic research on ESG in this monthly report. At the same time, CICC does analyses of popular topics related to ESG for each month to provide reference for investors and stakeholders to keep abreast with ESG’s developments.
The “Carbon Strategy Biweekly” series
This biweekly report tracks topics related to China’s goals on peak carbon emissions and carbon neutrality, such as domestic and international policy developments, industry and company trends, sustainable finance and ESG, and information on new technology and the climate, among others. This report is for investors who want to keep track of China’s carbon goals and relevant developments to find investment opportunities and identify risks.
Research on the Securities (Finance) Industry’s Role in Achieving Carbon Neutral and Carbon Peak Goals
In the context of green finance’s current status in China, this research learns from the experience of green finance in the European Union and in Japan and suggests that China’s Securities Law make explicit details regarding green finance and other systems in order to reinforce hard and soft laws on the subject. This is in addition to suggesting the law also improve the effectiveness of the Securities Association of China in guiding the industry and drawing up a path to achieving net-zero in the securities industry. In this way, the industry can truly work to serve and ultimately help achieve China’s Carbon Neutral and Carbon Peak goals.
This project was also voted as an Exceptional Project included in the Securities Association of China’s key research on “High-Quality Development of China’s Capital Market and Securities Industry in the New Order of Development.”
II. Advise building up the industry
CICC actively hosts and participates in forums and other activities worldwide on sustainable finance. Involved parties at such events work together to explore developments and popular topics on the subject and cooperate on making relevant government economic strategies a reality.
CICC jointly hosts the Carbon Neutrality and Green Finance Forum as part of the 2021 ZGC Forum
At the forum, the participants discussed topics related to green finance, such as global examples of green bonds and carbon neutrality and sustainable development bonds. Another major topic for discussion at the forum was green equity investment and the opportunities and challenges currently facing ESG investment overall, with a special focus on the outlook of finance helping to achieve carbon neutrality and concrete ways to achieve it.
CICC attends seminar “Financing Climate Actions: China Initiatives and International Cooperation” at COP 26
During the event, CICC CEO Huang Zhaohui indicated that finance can be a driving force for the development of real economies and for the transition to clean energy for many industries. International cooperation in green finance can also be especially significant for China in achieving their Carbon Neutrality and Carbon Peak goals.
CICC holds the Carbon Neutrality 2060 Forum
From carbon pricing to improving technologies to social governance, participants at this forum analyzed the situation in China and the rest of the world, focusing especially on carbon neutral policies and their effects, green finance, the future possibility of international cooperation in achieving carbon neutrality as well as other topics on the subject.
CICC holds the Fixed Income ESG Investment Forum
This forum assembled representatives of ESG investors, index companies, rating agencies, and research institutions from around the world, and, working to CICC’s strengths as an underwriter of ESG bonds and a market maker, all parties worked together to promote the sustainable development of fixed income ESG investment in China.
CICC organizes the 2021 Xiamen Carbon Neutrality Industry Investment and Financing Summit
At this summit, participants had thorough discussions centered on themes such as carbon neutrality and capital markets, industrial changes, investing and financing, as well as others. The focal points of discussion were the direction policy is heading in the context of carbon neutrality and the effect that will have on economic development, in addition to Xiamen’s opportunities in carbon neutrality, its potential challenges, and plans for the future.
CICC’s respective knowledge is united for a better future. Going forward, CICC will continue to take advantage of its strength in conducting research and in uniting strong minds together, and offer perspective to promote sustainable and healthy financial development.