ESG investing is an investment strategy and practice that incorporates environmental, social and governance considerations into investment decisions and active ownership. ESG investing has become a mainstream investment philosophy in recent years, and in 2019, ESG-mandated assets totaled USD 89 trillion globally. Investors are increasingly conscious of ESG-related issues such as corporate governance, company strategy, asset allocation, long-term remuneration, environmental risks and opportunities and human resources management.

ESG investing is only burgeoning in China, but the trend is surely taking off. Despite being the second largest economy in the world, China had only RMB 10 trillion (USD 1.42 trillion) responsibly-invested assets in 2019. Thanks to the vigorous promotion by Chinese regulators, continued guidance of industry associations such as the Asset Management Association of China (AMAC) and the ongoing publicity of international organizations such as the UNPRI and MSCI, a growing number of Chinese institutional investors have begun to focus on ESG and ESG investing. The COVID-19 pandemic of 2020 has further accelerated the adoption of the ESG playbook within the Chinese private equity market where many GPs, LPs and their portfolio companies have consciously taken on social responsibilities.

Building on its own ESG practice and extensive research on industry peers, Starquest Capital has recently published the ESG Investment Yearbook 2020: Deploying Capital Responsibly. This yearbook comprehensively analyzes the current state and emerging trends of private equity responsible investing in China and around the world, offering an assessment methodology and multiple case studies.

We warmly invite you to a series of thought-provoking discussions on ESG investing as practitioners in the Chinese private equity market to promote the transformation and long-term development of our community.

The full report can be found in our official website. For ESG-related queries or proposals for cooperation, please send an email to our ESG Committee at: 

esg@starquestcap.com