Key Points of Investment

1. Highlights Tracking

1. International Highlights

KPMG: Most American CEOs expect that sustainable development investment will bring substantial returns in 3-5 years. A new survey released by professional services firm KPMG USA shows that the majority of US CEOs expect their companies' sustainability investments to pay off handsomely within three to five years, with business leaders ranking ESG as their top operational priority even in the face of inflation, supply chain challenges and AI-related opportunities.

95 percent of Apple's supply chain is committed to 100 percent renewable energy by 2030. Apple announced significant progress toward its goal of decarbonizing its value chain, including revealing that more than 320 suppliers-representing 95 percent of the company's direct manufacturing spending-have now committed to using 100 percent renewable energy in Apple's production by 2030, up from about 250 suppliers last year.

Singapore invests 35 million SGD to enhance sustainable financial skills in the financial sector. Singapore's central bank and financial regulator, the Monetary Authority of Singapore (MAS), today announced that it will allocate S $35 million ($26 million) over the next three years to support skills upgrading and retraining initiatives to develop sustainable finance experts in the financial services sector.

2. Domestic highlights

Volvo Cars and Ningde Times signed a strategic cooperation memorandum. On April 16, Volvo Cars and Ningde Times signed a memorandum of strategic cooperation aimed at deepening their cooperation in sustainable development.

China's first carbon emission reduction project in the field of electronic waste was issued and landed in Zhejiang, and the first 10,000 tons of carbon emission reduction transactions were completed. According to the China Material Recycling Association, after China's first carbon emission reduction project in the field of electronic waste was issued and landed in Zhejiang, the first batch of 10,000 tons of carbon emission reduction transactions have been invoiced recently. According to reports, the first batch of transactions of the project was completed by Zhejiang Shengtang Environmental Protection Technology Co., Ltd. and Lenovo Group.

2. ESG index tracking

from April 15 to April 26, the Shanghai 50 closed up 1.56 percent, the Shanghai 300 closed up 0.99 percent, and the China 1000 closed up 2.43 percent.

specifically, among the five representative ESG indexes we track, the ESG 100 closed up 0.40 percent from April 15 to April 26. 300ESG closed up 1.06 percent, 300ESG value closed down 0.42 percent, central enterprise ESG50 closed down 1.22 percent, and Guoxin central enterprise ESG growth 100 closed down 1.10 percent. Compared to the CSI 300, the excess returns are: ESG100 is -0.59%, 300ESG is -1.37%, 300ESG value is -0.82%, central enterprise ESG50 is -2.27%, and Guoxin central enterprise ESG growth 100 is -0.68%.

3. ESG regular product tracking

there are 50 new ESG bonds issued in this period, with an issuance scale of 35.786 billion yuan. compared with the previous period, the number and scale of issuance have increased significantly. Among them, there are 37 green bonds, 8 social bonds and 5 sustainable development linked bonds.

as of April 28, 2024, there were 527 existing ESG public fund products in the market, with a total net value of ESG products reaching 485.019 billion yuan. Among them, environmental protection products accounted for the largest proportion, reaching 42.30 per cent. No new ESG public funds were established in this period.

this period of newly established ESG bank wealth management products a total of 20, including 8 social responsibility theme and 12 pure ESG theme.

4. industry ESG rating

ESG rating data disclosure, the number of disclosures in 31 industries are: 514 machinery and equipment, 481 medicine and biology, 433 electronics, 381 basic chemical industry, 345 power equipment, 341 computers, 266 automobiles, 132 national defense and military industry, 109 food and beverage, 108 agriculture, forestry, animal husbandry and fishery, 108 textiles and clothing, 108 architectural decoration, 108 media, 107 transportation, 106 non-ferrous metals, 106 public utilities, 105 communications and light industry manufacturing 104, real estate 104, environmental protection 104, trade and retail 101, household appliances 84, non-bank finance 83, social services 74, building materials 73, petroleum and petrochemical 46, steel 45, banks 42, coal 38, beauty care 30, comprehensive 22.

In terms of ESG rating disclosure rates, the ESG rating data disclosure rates for the 31 industries were: public utilities 100, banks 100, coal 100, petroleum and petrochemical 100, pharmaceutical and biological 97%, non-bank finance 97%, national defense and military industry 96%, steel 96%, textile and apparel 96%, computer 96%, commerce and retail 95%, agriculture, forestry, animal husbandry and fishery 95%, power equipment 92%, comprehensive 92%, social services 91%, building materials 91%, basic chemical industry 91%, automobile 90%, real estate 90%, mechanical equipment 89%, electronics 89%, beauty care 88%, food and beverage 86%, household appliances 86%, media 82%, transportation 80%, communication 78%, environmental protection 77%, non-ferrous metals 76%, building decoration 64%, light industry manufacturing 63%.

ESG score, 31 industry ESG average score is: bank 6.56, beauty care 6.43, national defense and military industry 6.32, non-bank financial 6.28, steel 6.25, computer 6.1, light industry manufacturing 6.1, medical and biological 6.1, public utility 6.09, transportation 6.03, automobile 6.01, building materials 5.97, petroleum and petrochemical 5.95, environmental protection 5.94, basic chemical 5.93, non-ferrous metal 5.93, communication 5.87, food and beverage 5.87, power equipment 5.86, household appliances 5.85, electronic 5.81, machinery equipment 5.8, textile and apparel 5.72, architectural decoration 5.62, coal 5.6, commercial and retail 5.6, media 5.58, social service 5.57, real estate 5.54, agriculture, forestry, animal husbandry and fishery 5.54, comprehensive 5.47

As of April 28, 2024, in the-share market, there are three AAA-rated companies in the steel (Nangang 600282.SH), communications (China Mobile 600941.SH), and pharmaceutical biology (Haier Bio 688139.SH) industries.

5. risk tips

1. ESG-related information disclosure is imperfect

2. ESG-related policies are not implemented as expected

3. Historical market does not represent the future