More Chinese funds to adopt ESG investment strategies: Report

More Chinese institutional investors are expected to consider environmental, social, and corporate governance (ESG) issues when making investment decisions this year, a new report has said.

A number of asset managers are expected to introduce ESG-themed mutual fund products in 2019, which will offer individual investors channels to participate in responsible investment and green finance, according to a report jointly released by SynTao Green Finance and China Social Investment Forum.

As China further opens its financial market, many Chinese firms have been improving their commitment in ESG to better meet the demands of global investors who use ESG as a screening criteria.

In its revised corporate governance code for listed companies released in September last year, the China Securities Regulatory Commission established an ESG information disclosure framework for listed companies.

Such reporting requirements are expected to prompt listed companies to upgrade their corporate social responsibility reports into ESG reports with significant improvements in material and quantitative content, according to the report.