Responsible Investments (new)

Responsible Investments

Being the PRI signatory since 2015, Mirae Asset (Hong Kong) focuses on the environment, social, and governance factors. We believe investing in responsibly managed companies makes good business sense.

ESG as your Mission

We work actively with the companies in which we invest to improve their environmental and social footprints and to address governance issues. Practicing “human-centric capitalism” creates social value for the communities in which we invest. This practice also has the potential to enhance further and protect economic value for all shareholders.

Our Commitment to Action

We practice what we preach, incorporating environmental, social, and governance (ESG) principles at the boards in our organization. We disclose our ESG focuses to our investors, creating a proprietary ESG scoring system and offering companies a roadmap to enhance their scores and improve investors’ views of their ESG performance.

Rigorous and Stringent Screening

Our researchers seek appropriate disclosures and investigate issues before making recommendations. To capture comprehensive views, we conduct cross-checks with third-party ESG researches and information aggregators, avoiding potential bias. Risk Management Unit reviews ESG scorecards and those rankings, obtaining all-round views before investment teams making holistic decisions.

We believe ESG analysis can help identify those companies with the best long-term growth prospects. We tailor our ESG approach to our various strategies.

PRI Rating: Excellent Scores A*

We are proud of being recognized by PRI (Principles for Responsible Investment) for the A rating in 2019 on strategy and governance as well as listed equity – incorporation. 

In our equity strategies, sector analysts quantify the impact of ESG criteria on a company’s valuation. We focus on the most material issues that can affect the company’s value drivers, such as its sales growth and profit margins. Our researchers then analyze the impact of these elements on the company and adjust the company’s valuation based on this assessment. 

*as of 2019.

To construct our scorecards, our researchers measure the company’s performances across critical elements of all three ESG domains.

Ranging of dozens of parameters, our sector analysts have extensive knowledge of ESG themes and engage with portfolio companies regularly. We encourage companies and investors to disclose ESG factors that are material to a company’s performance and could improve future scores, creating a positive feedback loop in the market. The key parameters are:

Carbon Footprint

We strive to measure the carbon footprint of our entire companies, putting effort into enhancing carbon efficiency and commit to decarbonization and reduction of toxic materials.

Resource Scarcity  

We embrace and expand the corporate social responsibility efforts by setting up a focused circular economy strategy, shifting the consumption patterns, improving resource efficiency, and enhancing the use of renewable resources.

Controversial Policies  

We aim to screen the company’s involvement in the avoidance of controversies and risk exposure, ensuring sustainability efforts embedding in decision-making processes that help mitigate environmental and social impacts.

We narrow our investment universe to a focused list of highly competitive companies through an initial round of qualitative screening. We use our comprehensive ESG scorecard to review and analyze those companies.

Mirae Asset plays an active role in encouraging greater ESG commitments among portfolio companies we cover. 

Having our sector analysts play a key role in our scoring efforts allows us to identify broader issues common among industry players and target those issues with individual companies, whether in the consumer discretionary, materials, technology, or industrials and utilities sectors.

We engage with individual companies to present our concerns and encourage companies to be transparent about their efforts to address those concerns. Fostering transparency among the companies we cover helps them connect their efforts with improved business performance.

In addition to potentially improving investor returns, these efforts create an incentive for competing companies to follow suit or risk being left behind. As a result, our ESG strategy has the potential to improve conditions at the sector level.

INVESTMENT INSIGHTS