Throughout the world, ESG theme investment is gradually becoming an important investment strategy in the global financial market. Compared with the traditional financial reporting, ESG (environmental protection, social responsibility and corporate governance) focuses on the non-financial benefits of the company, and focuses more on the sustainable development and long-term value of the company.
Morgan Stanley Capital International (MSCI), an authoritative international index agency, released the latest annual environmental, social and governance (ESG) rating. With its excellent management performance in ESG, Guotai Junan International (01788) MSCI ESG rating was upgraded to "BBB", which is the leading level of securities companies in Hong Kong.
The high level of ESG rating reflects a more robust level of business management and corporate governance. MSCI pointed out that at this stage, Guotai Junan International is ahead of its global counterparts in terms of corporate governance and business ethics policy. The improvement of the company's responsible investment practice and the strengthening of business ethics governance measures are the main reasons for the upgrade.
Since 2020, Guotai Junan International has taken the lead in setting up an ESG committee among Chinese counterparts in Hong Kong to assist the board of directors in formulating, monitoring and supervising the implementation of related issues. MSCI mentioned that the company's audit committee is highly independent and helps to supervise the company's financial and risk control work.
In recent years, Guotai Junan International has established a comprehensive and effective risk management and internal control system to actively prevent and resolve financial risks. Risk management is the core competitiveness of financial institutions, and the company regards "honesty, integrity, belief and ownership" as the four elements of risk culture. establish "three lines of defense" composed of frontline business units, risk management, compliance and other monitoring departments and internal audit departments to infiltrate risk management culture and system into all lines of business.
MSCI believes that Guotai Junan International has made a comprehensive disclosure of anti-corruption and clean practice policies. The requirements of high-standard business ethics reflect Guotai Junan's "zero tolerance" attitude towards bribery and corruption, and provide a strong guarantee for the high-quality development of enterprises. In recent years, the company has actively implemented a series of anti-corruption and anti-bribery policies, such as the Compliance Manual, Clean practice regulations, Anti-bribery and Anti-Corruption Code, staff transaction and external Employment Policy and other related procedures and internal control. at the same time, business partners are required to abide by the Company's Anti-bribery and Anti-Corruption Code and sign the Anti-bribery undertaking as required.
Guotai Junan International has made remarkable achievements in implementing environmental responsibility and supporting the development of green financial services, highlighting financial corporate social responsibility. According to the 2021 ESG report, the company has put in place measures to prevent pollution, reduce waste recycling and save energy and natural resources. according to professional consultants, greenhouse gas emission density (per square foot office) decreased by about 22.2% year-on-year, and energy consumption density (per square foot office) decreased by about 14.3% year-on-year. In addition, the company plans to identify, deal with and mitigate the effects of climate change in a systematic manner over the next few years.
In addition, Guotai Junan International is on the rise in underwriting green and sustainable bonds, raising $10.9 billion in 2021. Despite the challenging market environment, the company's ESG-related structured products reached HK $2.1 billion by the end of 2021, unchanged from the end of 2020. In the future, the company will give priority to environmental investment and financing projects, promote the process of green and low-carbon development of enterprises, explore high-quality and sustainable development paths, and serve the high-quality development of economy.
In 2022, the disclosure rate of ESG reports of A-share listed companies exceeded 30% for the first time, and many listed companies promoted ESG governance to a strategic level. In the future, Guotai Junan International will continue to adhere to the concept of "financial improvement" and "finance for the people", continue to strengthen the implementation of the group's sustainable development strategy, increase investment in environmental protection (including the impact of climate change), corporate governance, employee care and social contribution, and promote the low-carbon development of customers and the whole society through diversified green financial services and products.