China Universal Social Responsibility Report
| Date | Title |
|---|---|
| 2019-12-31 | China Universal Social Responsibility Report2019 |
| 2020-12-31 | China Universal Social Responsibility Report2020 |
| 2021-12-31 | China Universal Social Responsibility Report2021 |
Consideration of ESG factors is an integral part of China Universal's investment philosophy. We believe these factors are critical to long-term investment outcomes. To achieve the best long-term outcomes for our investors, we:
- Integrate our various responsibilities into our corporate mission and culture;
- Integrate ESG factors into our investment process including research, decision-making and implementation;
- Take the advantage of being a financial institution to help tackle environmental challenges including climate change;
- Make full use of our active ownership rights in order to promote responsible investment in the broader industry;
- Ensure that China Universal and its stakeholders jointly achieve the goal of sustainable development.
Responsible Investment Approach
In order to implement its Responsible Investment Policy, China Universal has adopted the following approaches to responsible investment, and applied them to listed equity, fixed income and fund of fund investments:
- ESG Integration
- Stewardship
- Thematic Investing
- Screening Method
The ESG integration method systematically incorporates ESG factors into investment analysis and decision-making. China Universal has formulated the evaluation criteria of responsible investment for different asset classes, and established a unified evaluation framework to ensure the consistency of ESG integration across different teams and industries.
We have developed a proprietary quantitative and qualitative evalua-tion system, CUAM ESG Rating system, which is fully embedded in the investment research and decision-making process.
Stewardship aims to bring practical effect to the sustainable development of the region and market, which specifically includes two parts: Voting and Engagement in the work.
- Priority of client's interests
- Professional independent judgment
- Not seeking control
- Handling conflicts of interest correctly
- 100% of the companies in portfolio
- On a consistent basis
- Teleconference and onsite visit
- Management conversation
- ESG promotion
The thematic investing method is to invest in companies offering solutions to sustainable development issues. These investment provide positive contribution according to United Nations' Sustainable Development Goals and will also let us achieve considerable returns within our risk tolerance.
At present, China Universal has developed several ESG funds. The active funds include:
China Universal ESG Sustainable Growth Fund
China Universal Carbon Neutralization Fund
China Universal Low Carbon Investment Fund
The passive products include:
China Universal CSI New Energy Vehicles Industry Index (LOF)
China Universal CSI New Energy Vehicle Industry ETF
China Universal CSI Photovoltaic Industry ETF
China Universal CSI Battery Thematic ETF Initiating Feeder Fund
China Universal CSI Photovoltaic Industry Index Enhanced Fund
China Universal CSI Battery Thematic ETF
China Universal CSI SEEE CARBON NEUTRAL ETF Initiating Feeder Fund
More>>The screening method uses a systematic approach to exclude companies that have material and long-term negative impacts on the environment or society, to minimize the investment risk and manage the reputation risk of China Universal and its stakeholders.
If evidence shows that a portfolio company has violated international standards or conventions, China Universal will:
first engage and vote through the stewardship method, and then consider whether it needs to be excluded based on its willingness to improve.
ESG Integration
The ESG integration method systematically incorporates ESG factors into investment analysis and decision-making. China Universal has formulated the evaluation criteria of responsible investment for different asset classes, and established a unified evaluation framework to ensure the consistency of ESG integration across different teams and industries.
We have developed a proprietary quantitative and qualitative evalua-tion system, CUAM ESG Rating system, which is fully embedded in the investment research and decision-making process.
Stewardship
Stewardship aims to bring practical effect to the sustainable development of the region and market, which specifically includes two parts: Voting and Engagement in the work.
- Priority of client's interests
- Professional independent judgment
- Not seeking control
- Handling conflicts of interest correctly
- 100% of the companies in portfolio
- On a consistent basis
- Teleconference and onsite visit
- Management conversation
- ESG promotion
Thematic Investing
The thematic investing method is to invest in companies offering solutions to sustainable development issues. These investment provide positive contribution according to United Nations' Sustainable Development Goals and will also let us achieve considerable returns within our risk tolerance.
At present, China Universal has developed several ESG funds. The active funds include:
China Universal ESG Sustainable Growth Fund
China Universal Carbon Neutralization Fund
China Universal Low Carbon Investment Fund
The passive products include:
China Universal CSI New Energy Vehicles Industry Index (LOF)
China Universal CSI New Energy Vehicle Industry ETF
China Universal CSI Photovoltaic Industry ETF
China Universal CSI Battery Thematic ETF Initiating Feeder Fund
China Universal CSI Photovoltaic Industry Index Enhanced Fund
China Universal CSI Battery Thematic ETF
China Universal CSI SEEE CARBON NEUTRAL ETF Initiating Feeder Fund
More>>Screening Method
The screening method uses a systematic approach to exclude companies that have material and long-term negative impacts on the environment or society, to minimize the investment risk and manage the reputation risk of China Universal and its stakeholders.
If evidence shows that a portfolio company has violated international standards or conventions, China Universal will:
first engage and vote through the stewardship method, and then consider whether it needs to be excluded based on its willingness to improve.
Memberships and Collaborations
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Became a signatory to the PRI in April, 2020.
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Joined Climate Action 100+in Oct, 2021.
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Joined the ACGA in 2008 as the first financial institution in Mainland China.
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Worked with both global and domestic ESG data provides on ESG data, carbon emisson modeal and rating methodology.
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Developed strategic cooperation with Shanghai Environment and Energy Exchange
