On July 25, Shenzhen Securities Information Co., Ltd., a wholly-owned subsidiary of the Shenzhen Stock Exchange (SZSE), launched the CNI ESG Ratings Methodology. The entity also released a series of indices compiled based on the ratings methodology, which are aimed at meeting the diversified ESG investment needs of the market and guiding financial resources to gather in low-carbon fields.
The CNI ESG Ratings Methodology aims to provide an ESG evaluation tool suitable for the Chinese market. Under the three dimensions of environment, society and corporate governance, it sets up 15 themes, 32 fields and more than 200 indices, which fully reflect the practice and performance of sustainable development of listed companies and provide a solid foundation for the SZSE to further promote the development and innovation of ESG index and index products.
The index data cover all A-share companies. The index scores are based on objective rules and public information, and the evaluation results are updated quarterly.
With the continuous deepening of Chinese authorities’ “carbon peaking and carbon neutrality goals,” China’s ESG investment shows a rapid development trend. The ESG investment concept is becoming gradually rooted in corporate strategy, its ecosystem is becoming increasingly sound.
A spokesperson for the SZSE said that the exchange will continue to implement the new development concept in accordance with the deployment requirements of the China Securities Regulatory Commission, promote the improvement of sustainable financial rules system, and build a low-carbon sustainable investment and financing product allocation platform to serve the medium and long-term diversified allocation needs of funds. It will also give full play to the market organization functions of the exchange, expand the application of ESG evaluation results, and guide financial resources to gather in low-carbon fields. It aims to help promote high-quality economic development.