THIS MATERIAL IS A MARKETING COMMUNICATION.
ESG Monthly (February 2023)
THIS MONTH’S HIGHLIGHT: China’s Ministry of Industry and Information Technology (MIIT) and seven other ministries issued a notice on launching a nationwide pilot program to promote the electrification of public vehicles from 2023 to 2025 (China Daily, February 2023). China aims to increase the share of electric vehicles in the public transport system to 80% in key areas, including bus and taxi services, by 2025. The country also set the target of adding the same number of public charging piles as the number of EVs newly added to the public transport sector (China Daily, February 2023). China, easily the biggest market for electric vehicles of all types, is the global leader in the adoption of e-buses. Approximately 59.1% of city buses and trolleybuses in Chinese cities were powered by pure electricity as of 2021. Over the past six years, China experienced a significant increase in the share of purely electric buses in its fleet, which was only 15.6% in 2016 (Statistica, February 2023). 
|
Commentary on ESG news and developments:
Globally…
- The Board of Directors of the European Investment Bank (EIB) has approved €5.5 billion of new financing to support new green energy, business, transport, health and education across Europe and around the world (European Investment Bank, February 2023).
- The World Bank priced a five-year US$ 50 million, principal protected Emission Reduction-Linked Bond that provides investors with a return linked to the issuance of Verified Carbon Units (VCUs) expected to be produced by a project in Vietnam (The World Bank, February 2023).
- The United Kingdom (UK) financial regulator, the Financial Conduct Authority (FCA), has informed asset managers that it will be testing the ESG and sustainable investing claims made in their communications with investors, as part of its efforts to reduce greenwashing risk (Financial Conduct Authority, February 2023).
- The European Central Bank (ECB) announced that it will focus a greater proportion of its corporate bond purchases towards issuers with stronger climate performance, supporting the decarbonization of the Eurosystem’s €344 billion corporate bond portfolio (Bloomberg, February 2023).
- The International Financial Reporting Standards Foundations’ (IFRS) new global sustainability and climate disclosure standards will be effective as of January 2024, according to an announcement by the IFRS’s International Sustainability Standards Board (ISSB) (Funds Europe, February 2023).
In Asia Pacific Markets…
- China’s Ministry of Industry and Information Technology (MIIT) and seven other ministries issued a notice on launching a nationwide pilot program to promote the electrification of public vehicles from 2023 to 2025 (China Daily, February 2023).
- Hong Kong plans its first digital green bond offering, said to target US$ 102 million proceeds. The tokenised notes would be a ‘pilot issuance’ to test regulatory framework and financial infrastructure, a top government official said last week (South China Morning Post, February 2023).
- Shenzhen Stock Exchange announced revised information disclosure rules for listed companies; amendments include strengthening ESG disclosure requirements for specific industries (Shenzhen Stock Exchange, February 2023).
- India will exclude renewable power companies from government contracts for between three and five years if they do not meet project completion deadlines, as the country looks to speed up green power projects (Reuters, February 2023).
- South Korea’s financial regulator strengthened its watch on bank corporate governance; the Financial Supervisory Service (FSS) said it would hold regular meetings with the board of major banks to help strengthen its oversight of the bank’s corporate governance (Yonhap News Agency, February 2023).
Disclaimer & Information for Investors
No distribution, solicitation or advice: This document is provided for information and illustrative purposes and is intended for your use only. It is not a solicitation, offer or recommendation to buy or sell any security or other financial instrument. The information contained in this document has been provided as a general market commentary only and does not constitute any form of regulated financial advice, legal, tax or other regulated service.
The views and information discussed or referred in this document are as of the date of publication. Certain of the statements contained in this document are statements of future expectations and other forward-looking statements. Views, opinions and estimates may change without notice and are based on a number of assumptions which may or may not eventuate or prove to be accurate. Actual results, performance or events may differ materially from those in such statements. In addition, the opinions expressed may differ from those of other Mirae Asset Global Investments’ investment professionals.
Investment involves risk: Past performance is not indicative of future performance. It cannot be guaranteed that the performance of the Fund will generate a return and there may be circumstances where no return is generated or the amount invested is lost. It may not be suitable for persons unfamiliar with the underlying securities or who are unwilling or unable to bear the risk of loss and ownership of such investment. Before making any investment decision, investors should read the Prospectus for details and the risk factors. Investors should ensure they fully understand the risks associated with the Fund and should also consider their own investment objective and risk tolerance level. Investors are advised to seek independent professional advice before making any investment.
Sources: Information and opinions presented in this document have been obtained or derived from sources which in the opinion of Mirae Asset Global Investments (“MAGI”) are reliable, but we make no representation as to their accuracy or completeness. We accept no liability for a loss arising from the use of this document.
Products, services and information may not be available in your jurisdiction and may be offered by affiliates, subsidiaries and/or distributors of MAGI as stipulated by local laws and regulations. Please consult with your professional adviser for further information on the availability of products and services within your jurisdiction. This document is issued by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Securities and Futures Commission.
Information for EU investors pursuant to Regulation (EU) 2019/1156: This document is a marketing communication and is intended for Professional Investors only. A Prospectus is available for the Mirae Asset Global Discovery Fund (the “Company”) a société d'investissement à capital variable (SICAV) domiciled in Luxembourg structured as an umbrella with a number of sub-funds. Key Investor Information Documents (“KIIDs”) are available for each share class of each of the sub-funds of the Company.
The Company’s Prospectus and the KIIDs can be obtained from www.am.miraeasset.eu/fund-literature . The Prospectus is available in English, French, German, and Danish, while the KIIDs are available in one of the official languages of each of the EU Member States into which each sub-fund has been notified for marketing under the Directive 2009/65/EC (the “UCITS Directive”). Please refer to the Prospectus and the KIID before making any final investment decisions.
A summary of investor rights is available in English from www.am.miraeasset.eu/investor-rights-summary.
The sub-funds of the Company are currently notified for marketing into a number of EU Member States under the UCITS Directive. FundRock Management Company can terminate such notifications for any share class and/or sub-fund of the Company at any time using the process contained in Article 93a of the UCITS Directive.
Hong Kong: This document is intended for Hong Kong investors. Before making any investment decision to invest in the Fund, Investors should read the Fund’s Prospectus and the information for Hong Kong investors (of applicable) of the Fund for details and the risk factors. The individual and Mirae Asset Global Investments (Hong Kong) Limited may hold the individual securities mentioned. This document is issued by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Securities and Futures Commission.
Copyright 2023. All rights reserved. No part of this document may be reproduced in any form, or referred to in any other publication, without express written permission of Mirae Asset Global Investments (Hong Kong) Limited.