1、01ESG Survey Report for Asset Owners(2023)ESG Survey Report for Asset Owners(2023)is based on a survey,jointly conducted by China Sustainable Investment Forum(China SIF),SynTao Green Finance and China Southern Asset Management,on asset owners practice of engagement and stewardship in China.More than

2、 50 Chinese and offshore asset owners have responded to the questionnaire,covering sovereign funds,pension funds,insurers,banks and their wealth management subsidiaries,family offices,and many other types of financial institutions,with more than US$2.9 trillion in assets under management(AUM).Stewar

3、dship,also known as active ownership,refers to the use of influence by institutional investors to fulfil their fiduciary duties and exercise active ownership to maximise the long-term value of the portfolio company as a whole,including the value of shared economic,social and environmentalassets.Enga

4、gement is one of the main tools used in stewardship and refers to the communication between investors and current or potential investees to enhance the ESG practices of the portfolio companies.For asset owners,stewardship is an important initiative to influence change in the real economy through gre

5、en finance,and also a fiduciary duty and responsibility to fulfil.By analysing asset owners awareness and practices of engagement and stewardship,implementing engagement and stewardship in China,and stewardship requirement for asset managers,this report provides a reference for the market to underst

6、and the attitudes and needs of asset owners for engagement and stewardship in China.We would like to express our gratitude for the valuable support extended by the following organisationsthroughout the questionnaire distribution process:EuroSIF,UK SIF,NorSIF,SWESIF,Climate Bonds Initiative(CBI),AIGC

7、C,China Water Risk,Friends of the Earth(HK),Rainforest Foundation Norway,and others.Furthermore,we extend our special thanks to the Principles for Responsible Investment(PRI)for their invaluable guidance and assistance in questionnaire design,distribution,and report writing.02ESG Survey Report for A

8、sset Owners(2023)1.Awareness and Practices of Engagement and Stewardship:More than 80%of respondents have started to engage with investee companies,and their policies related to stewardship take a variety of forms.More than 80%of respondents have dedicated stewardship staff,internal investment or ot

9、her teams to conduct engagement activities.70%of respondents ranked regulatory requirements as the top driver to incorporate ESG factors into engagement.Key Findings2.Implementing Engagement and Stewardship in China:Nearly 60%of respondents see engagement very important when investing in China,and m

10、ore than 60%of respondents conduct engagement when investing in listed stocks and fixed income.Offshore respondents are more active in engaging on ESG issues with investees in China,and are more proactive in taking various types of escalation measures when engagement is unsuccessful.At the same time

11、,offshore respondents face greater challenges in accessing Chinese companies and achieving desired outcomes from engagement efforts.Nearly 70%of respondents take annual reports and ESG rating as reference when engaging with investees.3.Stewardship Requirement for Asset Managers:Professional talents

12、with engagement expertise is one of the most valued engagement capabilities of an asset manager in China,and more than 50%of respondents always consider the asset managers knowledge and capability in engagement.80%of respondents think the asset classes and proportions covered by engagement activitie

13、s should be regularly reported by the asset managers.4.Stewardship is Most Valued by Pension Funds:Pension funds awareness and commitment to engagement and stewardship is more prominent among all types of the respondents,and they have relatively more comprehensive coverage of policies related to ste

14、wardship.Pension funds expect asset managers to report the most comprehensive information.And all the pension funds respondents require asset managers to engage with companies in the portfolio.03ESG Survey Report for Asset Owners(2023)Awareness and Practices of Engagement and Stewardship04More than

15、80%of respondents have started to engage with investee companies38.1%of the Chinese and 60%of the offshore respondents have engagement policy and are engaging with investees and policymakers with the aim to produce improvements in the sustainability profile of the system as a whole to maximise overa

16、ll long-term value for beneficiaries.Offshore respondents emphasized more on communication with policy makers.Overall,54.8%of the Chinese and 70%of the offshore respondents have engagement policy,and more than 80%of respondents have started to engage with investee companies.Asset owners practice of

17、engagement and stewardship in ChinaESG Survey Report for Asset Owners(2023)42.3%15.4%23.1%11.5%3.8%3.8%38.1%16.7%23.8%11.9%4.8%4.8%60.0%10.0%20.0%10.0%0.0%0.0%We have engagement policy and are engaging with investees andpolicymakers with the aim to produce improvements in thesustainability profile o

18、f the system as a whole to maximise overalllong-term value for beneficairesWe have engagement policy and are engaging with investees with theaim to produce improvements in the sustainability profile of assetsheld over timeWe have started to engage with investee companies to fulfilregulatory/benefici

19、ary needsWe are aware of the concept.However,no engagement action hasbeen taken yet.Not aware of the concept,but we are planning to start researchingwithin the next three yearsNot aware of the concept,and we have no plans to conductengagement activities within the next three yearsAll respondentsChin

20、ese respondentsOffshore respondents05About half of the respondents have policies related to stewardship42.9%of the Chinese and 50%of the offshore respondents have standalone policy on stewardship.52.4%of the Chinese and 60%of the offshore respondents say stewardship is included as a part of their re

21、sponsible investment policy.Overall,offshore respondents are more likely to include stewardship as a part of their responsible investment policy,and are more concerned about having standalone policy for voting than Chinese respondents.ESG Survey Report for Asset Owners(2023)Policies related to stewa

22、rdship take a variety of forms44.2%53.8%36.5%19.2%21.2%42.9%52.4%42.9%19.0%19.0%50.0%60.0%10.0%20.0%30.0%We have standalone policy on stewardshipStewardship is included as a part of our responsible investmentpolicyStewardship is included in other policiesWe have a standalone policy for engagementWe

23、have a standalone policy for votingAll respondentsChinese respondentsOffshore respondents06More than 80%of respondents have dedicated stewardship staff,internal investment or other teams to conduct engagement activitiesOverall,more than 80%of respondents have dedicated stewardship staff,internal inv

24、estment or other teams to conduct engagement activities,while nearly 10%indicated that engagement is outsourced to service providers.Offshore respondents emphasize that internal investment teams are involved in engagement,perhaps because offshore respondents believe that frequent communication betwe

25、en investment teams and investees is much more direct,and the engagement activities conducted by them may be more efficient.ESG Survey Report for Asset Owners(2023)Personnel arrangements for engagement48.1%57.7%32.7%9.6%3.8%1.9%45.2%52.4%28.6%7.1%4.8%2.4%60.0%80.0%50.0%20.0%0.0%0.0%Engagement is han

26、dled internally by dedicated stewardshipstaffEngagement is handled internally by investment or otherteamsAsset managers are required to engage with companies in theportfolioEngagement is outsourced to service providersNot sureMy organisation does not conduct engagementAll respondentsChinese responde

27、ntsOffshore respondents0770%of respondents ranked regulatory requirements as the top driver to incorporate ESG factors into engagementThe three major driver for asset owners to incorporate ESG factors into engagement are:regulatory requirements,client/beneficiary demand,and mitigating ESG risks.71.2

28、%of respondents ranked regulatory requirements as the top driver to incorporate ESG factors into engagement.Offshore respondents pay more attention on client/beneficiary demand and mitigating ESG risks.The primary driver to incorporate ESG factors into engagementESG Survey Report for Asset Owners(20

29、23)46.2%71.2%44.2%25.0%25.0%42.9%71.4%40.5%26.2%23.8%60.0%70.0%60.0%20.0%30.0%Client/Beneficiary demandRegulatory requirementsMitigating ESG risksGenerating excess returnsEnhance organisational reputation/responding to public pressureAll respondentsChinese respondentsOffshore respondents08ESG Survey

30、 Report for Asset Owners(2023)Implementing Engagement and Stewardship in China09Nearly 60%of respondents see engagement very important when investing in China52.4%of the Chinese and 80%of the offshore respondents see engagement very important when investing in China.In comparison,offshore respondent

31、s value more on engagement when investing in Chinese companies.The respondents that see engagement very important when investing in ChinaThe significance of engagement when investing in ChinaESG Survey Report for Asset Owners(2023)57.7%28.8%11.5%1.9%0.0%Very importantOf some importanceFairly importa

32、ntNot very importantUnimportantAll respondents52.4%80.0%57.7%Chinese respondentsOffshore respondentsAll respondents10More than 80%of respondents adopt engagement/collaborative engagementWhen asked about the approaches they adopt when conducting stewardship in China,81%of the Chinese and 90%of the of

33、fshore respondents say they engage with current or potential investees/bond issuers;78.6%of the Chinese and 100%of the offshore respondents conduct collaborative engagement.Comparatively,offshore respondents are more active in adopting various types of approaches when conducting stewardship in China

34、.The approaches adopted for conducting stewardship in ChinaESG Survey Report for Asset Owners(2023)82.7%82.7%44.2%40.4%23.1%25.0%3.8%13.5%81.0%78.6%45.2%35.7%23.8%26.2%4.8%14.3%90.0%100.0%40.0%60.0%20.0%20.0%0.0%10.0%Engagement with current or potential investees/bond issuersCollaborative engagement

35、Engage with policymakersVoting at general meetingsSubmitting shareholder resolutions/proposalsPresence on the board of directors and board committees of theinvesteeLitigationPublic statements(e.g.,media articles)All respondentsChinese respondentsOffshore respondents11Offshore respondents are more pr

36、oactive in taking various types of escalation measures when engagement is unsuccessfulOn escalation measures used in the past three years for listed equity holdings when engagement is unsuccessful,either by asset owners or by external asset managers and service providers acting on their behalf,38.1%

37、of the Chinese and 60%of the offshore respondents have joined or broadened an existing collaborative engagement or created a new one.In general,offshore respondents are more proactive in taking various types of escalation measures when engagement is unsuccessful.Escalation measures used for listed e

38、quity holdings when engagement is unsuccessfulESG Survey Report for Asset Owners(2023)42.3%25.0%21.2%21.2%15.4%25.0%15.4%36.5%38.1%23.8%16.7%14.3%9.5%21.4%19.0%38.1%60.0%30.0%40.0%50.0%40.0%40.0%0.0%30.0%Joining or broadening an existing collaborativeengagement or creating a new oneFiling,co-filing,

39、and/or submitting a shareholder resolutionor proposalPublicly engaging the entity,e.g.signing an open letterVoting against the re-election of one or more boarddirectorsVoting against the chair of the board of directors,orequivalent,e.g.lead independent directorDivestingLitigation(In the past three y

40、ears)we did not use any of the aboveescalation measuresAll respondentsChinese respondentsOffshore respondents12More than 60%of respondents conduct engagement when investing in listed stocks and fixed IncomeWhen engaging different asset classes,63.5%of respondents conduct engagement in listed stocks;

41、69%of the Chinese and 40%of the offshore respondents conduct engagement in fixed income;44.2%of respondents conduct engagement in private equity.Overall,respondents are more frequently conducting engagement when investing in equity(including listed stocks and private equity)and fixed income.Practice

42、s of engagement when investing in different asset classesESG Survey Report for Asset Owners(2023)63.5%63.5%44.2%7.7%32.7%15.4%5.8%61.9%69.0%45.2%7.1%33.3%14.3%7.1%70.0%40.0%40.0%10.0%30.0%20.0%0.0%Listed StocksFixed IncomePrivate EquityHedge FundsInfrastructureReal EstateCommoditiesAll respondentsCh

43、inese respondentsOffshore respondents13Offshore respondents are more active in engaging on various ESG issues with investees in ChinaMore than 80%of the offshore respondents has engaged on Climate Change,Labour Rights,Supply Chain Management,and Governance Structure issues.Offshore respondents are m

44、ore active in engaging on various ESG issues with investees in China.Chinese respondents pay more attention to Governance Structure,Pollution Control,Energy-saving and Consumption Reduction,and Climate Change issues.Offshore respondents practices of engagement on ESG issuesChinese respondents practi

45、ces of engagement on ESG issuesESG Survey Report for Asset Owners(2023)90%80%80%80%70%70%70%70%70%60%60%Environmental-Climate Change Social-Labour RightsSocial-Supply Chain ManagementGovernance-Governance StructureEnvironmental Energy-saving and Consumption Reduction Social-Information SecurityGover

46、nance-Business EthicsGovernance-ComplianceGovernance ESG Information DisclosureEnvironmental Biodiversity Social-Community RelationsOffshore respondents64.3%61.9%61.9%50.0%47.6%45.2%45.2%40.5%33.3%31.0%31.0%Governance-Governance StructureEnvironmental-Pollution ControlEnvironmental Energy-saving and

47、 Consumption ReductionEnvironmental-Climate ChangeGovernance-ComplianceSocial-Product QualityGovernance ESG Information DisclosureSocial-Customer RelationsGovernance-Business EthicsSocial-Labour RightsSocial-Supply Chain ManagementChinese respondents14Nearly 70%of respondents take annual reports and

48、 ESG rating as reference when engaging with investeesWhen engaging with investees,75%of respondents take annual reports as reference;69.2%of respondents take ESG rating as reference;59.5%of the Chinese and 80%of the offshore respondents take ESG controversy as reference.Comparatively,offshore respon

49、dents are more likely to take ESG/CSR/Sustainability Reports,ESG ratings and ESG controversy,as well as proxy voting research reports from service providers as reference.The information taken as reference when engaging with investeesESG Survey Report for Asset Owners(2023)69.2%63.5%75.0%55.8%28.8%42

50、.3%66.7%59.5%76.2%47.6%23.8%42.9%80.0%80.0%70.0%90.0%50.0%40.0%ESG ratingESG controversyAnnual reportsESG/CSR/Sustainability ReportsProxy voting research reports from service providersResearch reports from brokersAll respondentsChinese respondentsOffshore respondents15Offshore respondents face great

51、er challenges when conducting stewardship in ChinaWhen asked about their difficulties in engaging Chinese companies,50%of respondents say they dont have sufficient capacity for engagement analysis;44.2%of respondents find it difficult in obtaining ESG information from investee companies;34.6%of resp

52、ondents find it difficult in understanding the concepts and approaches of engagement.Difficulties in engaging Chinese companiesESG Survey Report for Asset Owners(2023)34.6%50.0%15.4%19.2%21.2%26.9%5.8%44.2%23.1%5.8%11.5%38.1%54.8%11.9%21.4%11.9%23.8%2.4%42.9%19.0%4.8%9.5%20.0%30.0%30.0%10.0%60.0%40.

53、0%20.0%50.0%40.0%10.0%20.0%Lack of understanding of the concepts and approaches ofengagementInsufficient capacity for engagement analysisUnfamiliarity with relevant governance regulations inChinaThe governance regulations in China are not applicable tothe engagement processes of my organisationDiffi

54、culties in accessing Chinese companiesLack of responsiveness from investee companiesLanguage barriersDifficulties in obtaining ESG information from investeecompaniesChallenges in achieving desired outcomes fromengagement effortsLack of investment managers offering establishedengagement methodologies

55、Lack of professional service providers specialising inengagementAll respondentsChinese respondentsOffshore respondents16ESG Survey Report for Asset Owners(2023)Stewardship Requirement for Asset Managers17More than 50%of respondents always consider the asset managers knowledge and capability in engag

56、ement52.4%of the Chinese and 70%of the offshore respondents always consider the asset managers knowledge and capability in engagement when selecting an asset manager in China,with offshore respondents placing greater value on this ability.The respondents that always consider asset managers knowledge

57、 and capability in engagementThe level of consideration on asset managers knowledge and capability in engagementESG Survey Report for Asset Owners(2023)55.8%26.9%13.5%3.8%Always considersSometimes considersNot at the moment,but plans to consider itwithin the next three yearsNo,and neither in the nex

58、t three yearsAll respondents52.4%70.0%55.8%Chinese respondentsOffshore respondentsAll respondents18Respondents value asset managers professional talents with engagement expertise the mostWhen prioritisingthe capabilities of asset managers in China,55.8%of respondents value asset managers professiona

59、l talents with engagement expertise the most;46.2%of respondents see involvement of engagement in governance structure as the most important;44.2%of respondents value asset managers systematic engagement approaches and methodology the most.The most valued engagement capabilities of an asset manager

60、in ChinaESG Survey Report for Asset Owners(2023)46.2%55.8%44.2%36.5%44.2%45.2%57.1%42.9%40.5%40.5%50.0%50.0%50.0%20.0%60.0%Involvement of engagement in governance structureProfessional talents with engagement expertiseSystematic engagement approaches and methodologyRich experience of engagement prac

61、ticesCapability on ESG performance and risks analysisAll respondentsChinese respondentsOffshore respondents19More than half of respondents are satisfied with the performance of Chinese asset managers in stewardshipMore than half of respondents are satisfied with the performance of Chinese asset mana

62、gers in stewardship,but offshore respondents have higher expectations for them.The performance of Chinese asset managers in stewardshipThe respondents that are satisfied with the performance of Chinese asset managers in stewardshipESG Survey Report for Asset Owners(2023)64.3%40.0%59.6%Chinese respon

63、dentsOffshore respondentsAll respondents5.8%53.8%30.8%3.8%5.8%Excellent,capable of providing professionalstewardship servicesGood,able to meet my organisations needsAverage,they have limited capacity to fulfil thetasks delegated by my organisationPoor,unable to fulfil the tasks delegated by myorgani

64、sationMy organisation does not have specificrequirements for the stewardship capability ofChinese investment managersAll respondents2080%of respondents think the asset classes and proportions covered by engagement activities should be regularly reportedWhen asked about what should be regularly repor

65、ted by the asset managers in China in terms of their engagement performance,80.8%of respondents think the asset classes and proportions covered by engagement activities should be regularly reported;71.2%of respondents think engagement policies should be regularly reported.In general,offshore respond

66、ents expect asset managers to report more information on engagement regularly.The content of engagement that asset owners expect asset managers to report on a regular basisESG Survey Report for Asset Owners(2023)80.8%71.2%59.6%42.3%40.4%46.2%46.2%26.9%83.3%69.0%54.8%42.9%35.7%42.9%42.9%26.2%70.0%80.

67、0%80.0%40.0%60.0%60.0%60.0%30.0%The asset classes and proportions covered byengagement activitiesEngagement policiesThe objectives of their engagement activitiesQuantitative measures of engagement activitiesEscalation actions taken when engagements are notsuccessfulThe main ESG issues covered in eng

68、agementsThe outcomes of engagementsPractices on collaborative engagementAll respondentsChinese respondentsOffshore respondents21ESG Survey Report for Asset Owners(2023)Stewardship is Most Valued by Pension Funds22Pension funds have relatively more comprehensive coverage of policies related to stewar

69、dshipPension funds have relatively more comprehensive coverage of policies related to stewardship.80%of the pension funds respondents say that stewardship is included as a part of their responsible investment policy.60%of the pension funds respondents have standalone policy on stewardship.60%have st

70、andalone policy for voting.Policies related to stewardship take a variety of formsESG Survey Report for Asset Owners(2023)44.2%53.8%36.5%19.2%21.2%60.0%80.0%20.0%40.0%60.0%We have standalone policy on stewardshipStewardship is included as a part of our responsible investmentpolicyStewardship is incl

71、uded in other policiesWe have a standalone policy for engagementWe have a standalone policy for votingAll respondentsPension funds respondents23All the pension funds respondents require asset managers to engage with companies in the portfolioPension funds focus and commitment to engagement and stewa

72、rdship is more prominent among all types of the responding asset owners.All the pension funds respondents require asset managers to engage with companies in the portfolio.Personnel arrangements for engagementESG Survey Report for Asset Owners(2023)48.1%57.7%32.7%9.6%3.8%1.9%60.0%80.0%100.0%0.0%0.0%0

73、.0%Engagement is handled internally by dedicated stewardship staffEngagement is handled internally by investment or other teamsAsset managers are required to engage with companies in theportfolioEngagement is outsourced to service providersNot sureMy organisation does not conduct engagementAll respo

74、ndentsPension funds respondents24The content of engagement that pension funds expect asset managers to report on a regular basis is more extensiveThe content of engagement that pension funds expect asset managers to report on a regular basis is more extensive.All the pension funds respondents requir

75、e regular reporting on the asset classes and proportions covered by engagement activities,engagement policies,escalation actions taken when engagements are not successful,and the main ESG issues covered in engagements.The content of engagement that asset owners expect asset managers to report on a r

76、egular basisESG Survey Report for Asset Owners(2023)80.8%71.2%59.6%42.3%40.4%46.2%46.2%26.9%100.0%100.0%80.0%80.0%100.0%100.0%80.0%60.0%The asset classes and proportions covered by engagementactivitiesEngagement policiesThe objectives of their engagement activitiesQuantitative measures of engagement

77、 activitiesEscalation actions taken when engagements are not successfulThe main ESG issues covered in engagementsThe outcomes of engagementsPractices on collaborative engagementAll respondentsPension funds respondents25ESG Survey Report for Asset Owners(2023)China Sustainable Investment Forum(China

78、SIF),established in Beijing as a non-profit organisation in 2012,is dedicated to promoting responsible investment and providing an internationalisedplatform for exchanging and sharing ideas on issues concerning sustainable development,with focus on facilitating Environmental,Social and Governance(ES

79、G)integration,advocating green finance,and contributing to a responsible capital market in China as well as its sustainability.As a member of the Global SIFs Network,China SIF organises Annual Conferences,Summer Summits,SIF Weeks and a series of featured seminars and webinars annually,convening poli

80、cymakers as well as domestic and foreign experts to share their views,research,and good practice.Professionals and practitioners from research institutes,financial institutions,listed companies,government agencies,and media representatives have joined our discussion and endeavour to explore multiple

81、 ways to promote and practice responsible investment and green finance.China SIF keeps launching a series of landmark research reports,such as China Sustainable Investment Review,supporting the Dissertation Competition on ESG and Sustainable Finance and developing the ESG Online Classes series of ed

82、ucational videos together with partners and industry experts to promote ESG investment concepts and practices.Over the years,China SIF has become one of the most influential responsible investment forums in the region.Please visit https:/en.chinasif.org/for more information.SynTao Green Finance(STGF

83、)is one of the first Chinese organisationsto provide green finance and responsible investment services,starting ESG data collection and research as early as 2009.STGF ESG rating,data and research on ESG key issues are widely employed to support investment decisions,risk management,policy making,and

84、sustainable finance product innovation.STGF STR ESG Data Platform and STGF ESG Risk Radar System cover all A-share market and Hong Kong stocks in the stock connect schemes,amounting to over 5,000 listed companies.In 2020,STGF launched STGF PANDA Climate Data Platform,providing carbon emission data o

85、f Chinese entities based on GHG protocol.STGF ESG ratings(SynTaoGF-ESG)has been available on Bloomberg Intelligence,making it the first Chinese ESG rating agency to have its data displayed on Bloomberg.SynTao Green Finance is the first Chinese service provider signatory to PRI,a member of the first

86、Advisory Council of Green Bond Principles and Social Bond Principles of International Capital Market Association(ICMA),the founding member of Green Finance Committee of China Society for Finance and Banking,the first China-based Climate Bonds Standard(CBS)approved verifier,and a registered green bon

87、d evaluation and certification agency under China Green Bond Standard Committee.On March 6th,1998,China Southern Asset Management Co.,Ltd.(hereinafter referred to as Southern Asset Management)was officially established as one of the first domestic asset management companies approved and regulated by

88、 the China Securities Regulatory Commission(hereinafter referred to as CSRC).Southern Asset Management has stood the tests of time throughout periodic shifts between bull and bear market in Chinese capital market.By showing stable and sustainable performances and providing improved and professional

89、services,Southern Asset Management managed to continuously build the trust and recognition of a wide range of investors,including mutual fund investors,the National Council for Social Security Fund,corporate annuity clients and high-net-worth clients.Southern Asset Management has grown into one of t

90、he industry leaders that boasts diverse range of products,comprehensive type of business activities,exceptional investment performance and a large scale of assets under management.As one of the first asset managers in China to join UN PRI and practice ESG investment philosophy,Southern Asset Managem

91、ent has clearly integrated the ESG investment philosophy into the long-term strategy of the company in all respects and deeply integrated it into business development,making the philosophy an important factor driving the company forward.The company continues to deeply cultivate in ESG field,adhere t

92、o the investment philosophy of Invest for the long term,for value,and for responsibility,and integrate sustainable investment into the company culture and investment process.29ESG Survey Report for Asset Owners(2023)The copyright of this document belongs to SynTao Green Finance Co.,Ltd.,with all rig

93、hts reserved.SynTao Green Finance Co.,Ltd.does not act as a legal,tax,accounting,or investment advisor.The content of this document does not contain or constitute any offer or solicitation to sell or buy.SynTao Green Finance Co.,Ltd.will not use document information sharing to arrange any investment or introduce any investors.DisclaimerCONTACT USTel:+8610 5907 1079Email:Web: