Sustainable Investment Awards 2023

ESG Investment Initiative of the year, Asia: China Asset Management

In the past year, China Asset Management (CAM) has launched two sustainability-related mutual funds: the Low Carbon Economy One Year Holding Period Hybrid Fund and the CSI Green Power ETF.

In November, the Hong Kong arm of the investor launched its first ESG exchange traded fund (ETF), with the ChinaAMC HSI ESG ETF. Listed on the Hong Kong Stock Exchange, the fund aims to lower the ESG risk of the HSI ESG Enhanced Index. By investing in companies with "progressive corporate behaviour and long-term viability", it aims to deliver more positive outcomes for investors, CAM said.

These launches are part of an aim to integrate ESG throughout its business.

CAM claims to be one of the first Chinese asset managers to establish a firm-level ESG committee and integrate ESG into its investment process. 

This has involved creating an in-house ESG analytical framework as well as sector-specific models, with specific key performance indicators. This approach is more appropriate for Chinese listed companies, it said, given China's different development status compared with other global markets.

The asset manager has also taken an active engagement role with 50 companies listed in mainland China, which led to "positive changes" in their ESG disclosures and strategies. It also engages with companies through the global investor initiative, the Climate Action 100+, where it also sits on the Asia advisory group.