Stockholm (NordSIP) – For many investors, China is the ultimate frontier of sustainable investment. With 1.4 billion citizens, improving governance standards, a massive but improving carbon footprint and a growing economy, the country provides opportunities across the ESG spectrum.
Now, index provider Qontigo announced an exclusive partnership with the International Institute of Green Finance (IIGF), which produces ESG ratings for Chinese companies across both fixed income and equities. Under the agreement, Qontigo will be able to integrate the data in its STOXX indices and to use it in its Axioma portfolio construction and risk management software.
“We are delighted to add IIGF data to our open architecture, sustainable investment ecosystem,” said Rick Chau, Head of Asia Pacific, Qontigo. “Having a partner embedded in the local Chinese market gives us – and in turn, our clients – a deeper, more nuanced view of the companies they evaluate. Further, it’s important to recognize the role that China plays in the global ESG supply chain: the insights gained from IIGF will help clients better understand risk and performance of large corporates throughout the world.”
The IIGF ESG database covers all 8,956 A-Shares listed companies and Chinese Bond issuers. Its four main areas of focus are “Climate Finance”, “Green Finance”, “Energy Finance” and “Health Finance” which it claims to map onto core Sustainable Development Goals (SDGs). The analysis is based on IIGF’s Green Evaluation System and ESG Evaluation System. These proprietary approaches comprise both qualitative and quantitative ESG indicators.
“There are clear synergies between our two firms resulting in a natural partnership,” said Yichen Shi, Deputy Dean of IIGF. “Our rigorous and robust analysis combined with our deep knowledge of China, makes us well positioned to provide quality ESG insight for our clients. Qontigo is equally focused on bringing best-of-breed, innovative products to help their clients meet the growing demand of sustainable investing and reporting in Asia.”