NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Monday, February 26, 2018

Too few of mainland China’s asset owners and investment managers have embraced the systematic integration of environmental, social and governance (ESG) factors into asset allocation decision making, according to the first China chief of Principles for Responsible Investment (PRI), a body set up to promote sustainable investing.

Insufficient understanding of the merit and importance of responsible investing and a general reluctance by companies to volunteer information on their investment practices could mean missed opportunities to improve risk management and enhance investment performance, said Beijing-based Luo Nan of the United Nations-supported non-profit organisation.

“The major decision makers I have met so far have shown a general conceptual appreciation of the merits of ESG information disclosure and using the information for investment decisions, but their grasp on how they should be executed is far from enough,” Luo told the South China Morning Post in an interview.

Photo courtesy of GotCredit.