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Our investment process is structured to identify ESG risks and opportunities alongside traditional measures within our active investment strategies, including Chinese equities. The methods that we use include Exclusions, Best-In-Class, ESG Integration, and Engagement. We have applied ESG or sustainable consideration into all our investments. Moreover, among our four equities analysts, we have one analyst exclusively dedicated to ESG.
The methods that we use for responsible investment:
Step 1 - Exclusion
Eliminating sectors involved in non-ESG activities (oil, thermal coal, tobacco, liquor, gambling, adult entertainment, controversial weapons, civilian firearms, violent video games, and military equipment and services)
Step 2 - Best-In-Class
Selecting companies with better ESG rating or performance
Step 3 - ESG Integration
Considering the ESG factors that are highly material to the companies in the investment decision making process
Step 4 - Engagement
Communicating with the investee companies for any issues which may have significant impacts on the companies based on actual circumstances and facts
We have our internal ESG rating method. We use external ESG scoring resources as a foundation for our rating calculation. Besides, in order to have a clearer understanding and more comprehensive evaluation of our investee companies, we also employ a broad-based research approach to assess ESG information, as well as relevant sector, thematic, and macro sustainability considerations.
Our ESG due diligence is determined by factors, such as sector, activity, geographic location, and track record. We review ESG risks and opportunities alongside traditional investment risks in our investment process.