Shanghai Finance Institute invests in GSG
In a recent announcement made by Governance Solutions Group (GSG), the company has received minority investment from Shanghai FInance Institute (SFI).
The partnership between SFI GSG aims to further enhance sustainable investment exploration and progress in China. "We are honored to cooperate with SFI in a number of areas, including responsible investment research, ESG rating advisory and related policy development," states Dr. Wang Dequan (Davis), CEO of GSG.
Mr. Tu Guangshao, chairman of SFI, submitted a proposal dedicated to "Exploring the establishment of Chinese standards for 'responsible investment' to vigorously promote China's ESG investment practices".
In the proposal Guangshao suggests that regulators and industry associations should work together to:
- Improve the disclosure guidelines of ESG information
- Build an ESG evaluation system
- Urge institutional investors to include responsible investment in their investment evaluation system
"ESG investment and responsible investment can better achieve the combination of commercial benefits and social value, so that long-term performance is improved, risks are mitigated and long-term returns are more secure. ESG investment is of vital importance to support China's commercial, environmental and social progress,” commented Guangshao.
Increasing trends in China indicate that the integration of environmental, social and governance (ESG) factors into investment decisions and the exercise of active ownership is essential for long term sustainable returns.
GSG provides asset managers and owners with governance risk rating, ESG consulting, and data services, as well as differentiated service solutions for international clients and Chinese clients.
"With illustrious Chinese Asset Managers such as Bosera, GSG has advised on ESG integration, investment strategies and policies as well as research support to help Bosera better implement their strategy. We also support such firms to attract more global investors by ensuring optimum alignment with global responsible investment standards such as the PRI", states Mark Schroeder, GSG's International MD.
"For international institutional investors, GSG aims to provide in-depth local insight on corporate governance, business ethics and risk control practices on the Chinese listed companies." states, Dr. Wang. And, "we also provide on the ground assistance to international clients on their engagement and voting activities. For engagement, we're collaborating with the China Securities Investor Service Center (CSISC). CSISC is a legally sanctioned representative to minority shareholders, with the mission of making shareholder engagement more effective".
GSG has created a data-driven corporate governance scoring model for rating listed companies. The model is designed to help investors evaluate corporate governance structure, systems, practices and behaviors, along with mitigation of potential investment risks.
"GSG intends to be a positive force in the Chinese capital market by advising all levels of the investment community to further develop an environment of transparent and ethical corporate growth, encouraging a sustainable and responsible investment culture," states Dr. Wang.