China Southern Asset Management becomes the first Chinese asset management company to achieve carbon neutrality


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Shenzhen, China–(Newsfile Corp. – Jan. 24, 2022) – Recently, as one of the representative organizations of the ESG investment system, China Southern Asset Management fully offset its own carbon emissions by buying and canceling carbon offset indicators based on the effective implementation of operational measures for managing carbon emissions and conserving energy and reducing emissions. It became the first asset management company in China to achieve carbon neutrality.

It is understood that China Southern Asset Management has effectively implemented carbon emission management and green operation in its own carbon emission management through the building’s energy-saving and emission-reducing design. headquarters, renting an energy efficient data center and actively implementing energy saving and emission reduction measures within the company. In 2020, it purchased and canceled 176 tonnes of Voluntary Certified Carbon Emission Reductions (VCUs) for the direct emission of 175.1 tonnes of carbon dioxide equivalent generated by the use of fossil energy, and completely compensated for the direct emission. China Southern Asset Management purchased and sold 6,694 International Green Certificates (I-REC) for indirect carbon emissions generated from purchased electricity of 6,693.4 megawatt hours, which fully offset indirect emissions. So far, China Southern Asset Management has fully offset its own carbon emissions by purchasing and canceling carbon offset indicators based on the effective implementation of operational carbon emissions management and mitigation measures. saving energy and reducing emissions, thereby achieving carbon neutrality of the organization’s own operations. Activities.

At present, China’s economy has moved from a high-speed growth stage to a high-quality development stage, and “peak carbon dioxide emissions” and “carbon neutrality” are also become national strategies. In this process, the ESG investment philosophy that advocates green development and sustainable development is gradually being recognized by mainstream national investment institutions. China Southern Asset Management regards becoming “a trustworthy world-class asset management group” as its vision, and it is its bounden duty to practice social responsibility. In order to promote China’s long-term goal of “peak carbon dioxide emissions by 2030 and carbon neutrality by 2060”, China Southern Asset Management actively participates in actions to help realize the vision of carbon neutrality based on the following five aspects.

The first is to strengthen the management of carbon emissions. China Southern Asset Management has implemented an internal carbon management system and calculated the carbon emissions of the company’s operations in accordance with internationally accepted standards, and from this year it will achieve carbon neutrality of its own activities. of the organization’s operating activities (scope 1: direct emissions of all greenhouse gases; Scope 2: indirect emissions of greenhouse gases linked to the consumption of electricity, heat or purchased steam), becoming the first mutual fund to promise and implement carbon neutrality. In the future, with the improvement of the carbon management system, the objective of carbon neutrality will be extended to scope 3 (other indirect emissions generated in the company’s value chain that are not covered by scope 2, including upstream and downstream emissions, are not generated from emission sources owned or controlled by the company).

The second is to gradually form a long-term information disclosure mechanism. China Southern Asset Management, based on the regulatory requirements and the company’s actual situation, learns from the disclosure suggestions put forward by the Task Force on Climate-Related Financial Disclosure (TCFD) and refines the global disclosure indicators covering governance, strategy and risk management. At the same time, it promotes the disclosure of information related to the environment of the fund itself and the portfolio, and promotes sustainable and responsible investment in the long term.

The third is to establish a climate risk assessment mechanism. China Southern Asset Management adds the influence analysis of climatic factors into the R&D process, attaches importance to the use of quantitative and systematic methods to manage climatic risks, and integrates them into the daily investment process and commercial decision-making, further refines the relevant rules and means of internal risk control and achieves more effective management of the organization’s own climate risks.

The fourth is to build a system of multi-level ESG and climate finance and investment products. Following the principles of internationalization, specialization and differentiation, China Southern Asset Management extensively explores and practices the localization and integration of ESG. Based on this, China Southern Asset Management strengthens research on carbon reduction factors in ESG investment and actively develops related fund products, such as China Southern ESG Theme Equity Fund, China Southern CSI New Energy ETF, China Southern New Energy Industry Trend Hybrid Fund, South China Yangtze River Protection ETF, etc.

The fifth is to actively advocate the ESG concept and implement ESG-related work in all aspects. As a pioneer in the mutual fund industry, China Southern Asset Management has actively carried out various environmental protection and charitable activities, and has fully integrated basic ESG concepts and standards into the operation and management. investment management, and became a board member of PRI and China ESG Leaders. ‘ Organization.

In addition, as a signatory member of “Climate Action 100+”, China Southern Asset Management actively communicates with listed companies to ensure that the world’s 161 largest greenhouse gas emitting companies take necessary action against climate change, improve governance and enhance disclosure. climate-related. China Southern Asset Management has also taken concrete actions in terms of asset allocation. In recent years, it has greatly reduced investment in high-pollution and energy-intensive enterprises, and greatly increased the proportion of investment in renewable energy. China Southern Asset Management has also won the Golden Responsibility Award from Sina Finance, the Evergreen Award from Finance and Economy magazine, Asia Money, the China Green Finance Award and other awards for its outstanding ESG achievements.

South China Asset Management
If Chen
[email protected]

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