The Hong Kong regulator will begin by carrying out a survey to find out how asset managers integrate ESG factors into their investment process, according to Ashley Alder, the SFC’s CEO.

The Hong Kong regulator will begin by carrying out a survey to find out how asset managers integrate ESG factors into their investment process, according to Ashley Alder, the SFC’s CEO.
Claiming to incorporate ESG factors in investment processes is fashionable, but is hard to implement and even more difficult to evaluate the impact, according to a risk management software provider.
A number of asset managers have been increasing their ESG capabilities, but are these hires senior enough to help drive investment decisions?
Managers from Schroders, Franklin Templeton and Hermes warn that backward-looking sustainable ratings don’t reward genuine sustainability commitments.
Robeco argues that the increasing internationalisation of China’s stock markets will force Chinese companies to take ESG seriously.
The firm believes that the sustainable investing portfolio has resonated well with female investors.
ESG ratings typically do not account for management efforts to improve, and companies with poor scores may be worth a closer look.
Assets in ESG ETF products globally have almost doubled since 2016, but not one of the products is authorised for sale in Greater China.
The bank also plans to increase ESG investments, according to senior executives.
Misperceptions and a general lack of understanding of ESG products are the reasons for scant interest, according to a survey conducted by the Hong Kong Investment Funds Association (HKIFA).
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