Actively responding to climate change and achieving the goals of "carbon peaking by 2030 and carbon neutrality by 2060" are the inherent requirements for China to achieve sustainable development, and it is also the mission of a responsible major country.
Facing the situation of carbon peaking and carbon neutrality, Southern Asset Management is the first in the public offering fund industry to launch a carbon neutrality action plan, which will help realize the vision of carbon neutrality in terms of company operations, information disclosure, risk control, product research and development, and promotion of ESG concepts.
Southern Asset Management will cooperate with Beijing SinoCarbon Innovation and Investment Co., Ltd. to calculate the carbon emissions of the company's operations, and to formulate plans to achieve carbon neutrality in its own operations (Scope 1, Scope 2).
In this regard, YANG Xiaosong, general manager of Southern Asset Management and leader of the ESG leadership group, said:
It is the vision of Southern Asset Management to become a "world-class asset management group worthy of trust", and it is the bounden duty of Southern Asset Management to fulfill social responsibilities.
Facing the challenges and opportunities brought about by the carbon peaking and carbon neutrality goals, Southern Asset Management will work with the industry to explore the climate risk assessment system and information disclosure system suitable for Chinese public funds, actively research and develop related ESG public offering fund products, and guide capital to lean towards low-carbon innovation.
Specifically, Southern Asset Management will help realize the vision of carbon neutrality through the following measures.
1. Strengthen carbon emission management to achieve carbon neutrality in the company's own operations
Establish an internal carbon emission management system, calculate the carbon emissions of the company's operations in accordance with internationally accepted standards, and achieve carbon neutrality in the organization's own operating activities from 2021 (Scope 1: direct emissions of all greenhouse gases; Scope 2: Indirect greenhouse gas emissions from purchased electricity, heat or steam consumption), to become the first public offering fund in China to commit to and implement carbon neutrality.
In the future, with the improvement of the carbon management system, the goal of carbon neutrality will be extended to scope 3 (Other indirect emissions not covered by Scope 2 arising in the company's value chain, including upstream and downstream emissions, that do not originate from sources owned or controlled by the company).
2. Continue to improve information disclosure capabilities and form a long-term mechanism for information disclosure
Southern Asset Management will learn from the disclosure recommendations put forward by the Task Force on Climate-related Financial Information Disclosure (TCFD), and further improve the corresponding disclosure framework based on regulatory requirements and the actual situation of the company, conduct in-depth research on disclosure methods suitable for fund companies, and refine all-round disclosure indicators covering governance, strategy, and risk management.
At the same time, promote the disclosure of environment-related information about the fund itself and its investment portfolio, and promote long-term sustainable and responsible investment.
3. Incorporate climate factors into risk control considerations
Southern Asset Management is fully aware of the risks brought by the goals of carbon peaking and carbon neutrality to the company's investment portfolio and has established a climate risk assessment mechanism, including an analysis of the impact of climate factors in the investment research process, emphasized the use of quantitative and systematic methods to manage climate risks, and incorporated them into the process of daily investment and business decision-making.
Southern Asset Management will also further refine the relevant regulations and means of internal risk control to achieve more effective management of the institution's own climate risks.
4. Strengthen research and innovation, and create a multi-level ESG and climate investment and financing product system
For a long time, Southern Asset Management has comprehensively explored and practiced localized integration of ESG in accordance with the principles of internationalization, specialization, and differentiation.
On this basis, Southern Asset Management will seize the opportunity brought by carbon neutrality, strengthen research on carbon emission reduction factors in ESG investment, and actively develop related fund products, for example, Southern ESG Theme Fund, Southern China Securities New Energy ETF, South China Securities Yangtze River Protection Theme ETF, etc.
5. Implement ESG-related work in all aspects, continuously promote the integration of ESG investment, actively advocate ESG concepts, and build industry influence
Actively promote the integration of ESG investment, extensively participate in PRI, Climate Action 100+ Initiative and other related organizations and activities, and promote more relevant parties to share and exchange experience in low-carbon transformation.
It is worth mentioning that, as a pioneer in the public offering fund industry, Southern Asset Management attaches great importance to the fulfillment of social responsibilities. It not only actively carries out various environmental protection and public welfare activities, but also fully integrates the core concepts and standards of ESG into operation and investment management, and became a council member of the United Nations Principles for Responsible Investment (PRI) and the China ESG Leaders Organization, signed the Climate Action 100+ initiative, launched ESG-themed stock funds, and actively promoted the implementation of ESG investments in China.
Southern Asset Management's efforts in the ESG field have also been recognized by the industry, and have successively won ESG awards such as the "Golden Responsibility Award" from Sina Finance, the "Evergreen Award" from Caijing magazine, and the "China Green Finance Award" from "Asia Money".