Environmental, Social & Governance
THE IMPORTANCE OF
We are convinced that the thoughtful management of ESG issues is not simply about risk management, as we see it as an essential part of identifying “true sustainability” leading to long-term success in a rapidly changing world.
Taking ESG into consideration
For First Beijing, given our long-term mindset, sustainability is a central part of the firm’s ethos, culture, and DNA. We believe that ESG factors can significantly impact the value of companies. Hence, we take ESG into careful consideration during our investment process.
Since our investment approach involves building a direct relationship with company management, we can be better positioned than most other public market investors to access ESG-related information. We share best practices we observe from other companies in the sector (including their competitors) for management to consider.
As part of our monitoring process, analysts are expected to track the changes in investments’ ESG performance. Analysts will need to report those whose performance is below certain criteria and industry-average standards to portfolio managers, and discuss how to address specific issues.