The concept of responsible investments has drawn wide attention worldwide. As key indicators for analyzing sustainability performance, evaluation of a company’s environmental, social and governance (ESG) performance has become a focus of global investors and successful enterprises. To investors, ESG risks have a fundamental impact on the stability of investment and long-term returns. The ninth China SIF has invited Ms Liu Meng, China Representative of UN Global Compact, and Mr Ole Buhl, Head of ESG of ATP Investment Department to share their perspectives about why they are focusing on companies’ ESG performance. Mr. Buhl is also the chairman of Dansif (Danish Social Investment Forum).

For responsible investors, investments are made on behalf of people who have values in line with the UN Global Compact regarding ethical issues. By integrating ESG analysis into investments, superior returns can also be made. By reporting and participating in international initiatives such as the UN Global Compact, companies can be more competitive, and can make broader positive contribution to the sustainability of the world. In addition, responsible investors tend to engage positively with companies to improve their ESG performance.

After sharing the experience of responsible investment in Europe, Mr Buhl has encouraged Chinese investors to be more responsible and to help companies improve through engagement. In the face of growing social and environmental pressures, Ms Liu has suggested that it is in the best interest of the companies to improve their ESG performance.