New China environmental, social and governance index launched

Italy’s ECPI teams up with local players

ECPI, the Italy-based provider of sustainability research, rating and indices, has launched its second Chinese environmental, social and governance (ESG) index.

The new CSI CAITONG ECPI ESG China 100 index has been developed with index firm China Securities Index (CSI) and domestic asset manager Caitong Fund Management.

CSI is a joint venture between the Shanghai and Shenzhen stock exchanges.

The new measure is composed of the top ESG-rated companies of the CSI 300 Index and follows the launch of the CSI ECPI CHINA ESG 40 index in 2010.

ECPI says it has been investing in China since 2009 to develop a specific ESG rating methodology for the Chinese market and building a local team of analysts based in Shanghai.
“High ESG-rated companies show a strong sustainablebusiness development model which will, in turn, allow them to access more financial resources than the poor ESG performers,” said ECPI Chief Executive Michele Calcaterra.

“Sustainable development is an important and long-term investment theme in China,” said Zhao Wenqi, Deputy General Manager at CSI.

“Together with ECPI, Caitong and all the other partners, CSI will develop more sustainable thematic index products to better serve the needs of the market”, he concluded.”

“Chinese investors are increasingly paying attention to the sustainable development of listed companies,” added Chen Dongsheng, General Manager of Caitong.

Last month ECPI removed the Royal Bank of Scotland (RBS) and HSBC from its Global Ethical Equity Index, following downgrades in their ESG ratings.