Shanghai Finance Institute invests in GSG

By Georgia Wilson
Governance Solutions Group (GSG) announces that it has received minority investment from Shanghai Finance Institute (SFI...

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.

For more information on business topics in Asia Pacific, Australia and New Zealand, please take a look at the latest edition of Business Chief APAC.

Follow Business Chief on LinkedIn and Twitter.

Share

Featured Articles

The world’s biggest chipmaker bets big on renewable energy

Despite the struggle faced by chipmakers to reduce emissions, Taiwan Semiconductor Manufacturing is accelerating renewable energy adoption by 10 years

Uniqlo shakes up leadership amid global retail ambitions

Fast Retailing, the group behind Japan’s Uniqlo, overtakes Gap with soaring profits and is now eyeing accelerated global expansion with executive shakeup

What is the ESG strategy of Chinese automaker Geely Holding?

Chinese automotive giant Geely Holding released its 2022 sustainability report, so what is the car maker’s ESG strategy?

Top 10 best-performing CEOs in Singapore

Leadership & Strategy

Top 10 women behind India’s most successful tech startups

Leadership & Strategy

Top 10 best private members clubs in Singapore and Hong Kong

Leadership & Strategy