ESG Index Construction and China's ESG System
DOI:
https://doi.org/10.54691/bcpbm.v38i.3685Keywords:
ESG; ESG Thematic Index; Green Finance; Sustainable Development.Abstract
The Environmental, Social, and Governance (ESG) system has gained popularity recently as concerns over issues like corporate responsibility, labor conditions, and climate change become more pressing. At the same time, investors from around the world have become increasingly interested in the ESG Thematic Index because it offers greater risk resilience and returns than traditional trading strategies. Building a Chinese financial ESG system is crucial to advancing the development of ESG in China since Chinese finance needs to create and enhance its own ESG system but there is still a lack of systematic study in this area. This article first defines the meaning of ESG-themed indices, then selects representative ESG-themed indices from the global market, analyzes the construction processes and methodologies of the indices, and finally makes pertinent recommendations to promote the growth of ESG-themed indices in China using inductive, comparative, and case study methods.
Downloads
References
Friede, G., M. Lewis, A. Bassen, T. Busch, ESG and Financial Performance: Aggregated Evidence from More than 2000 Empirical Studies, Journal of Sustainable Finance and Investment, 2015.
Atan, R., M. Alam, J. Said, and M. Zamri, The Impacts of Environmental, Social, and Governance Factors on Firm Performance: Panel Study of Malaysian Companies, Management of Environmental Quality: An International Journal, 2018, 29(2), 182-194.
Aupperle, K., A. Carroll, and J. Hatfield, An Empirical Examination of the Relationship between Corporate Social Responsibility and Profitability, Academy of Management Journal,1985, 28(2), 446-463.
Blank H., S. Sgambati, and Z. Truelson, Best Practices in ESG Investing. The Joumal of Investing, 2016, 25 (2), 103-112.
Brooks, C. and I. Oikonomou, The Effects of Environmental, Social and Governance Disclosures and Performance on Firm Value: A Review of the Literature in Accounting and Finance, The British Accounting Review, 2018, 50(1), 1-142.
Clark, G., F. Andreas, and V. Michael, From the Stockholder to the Stakeholder: How Sustainability Can Drive Financial Outperformance, Arabesque Asset Management and Oxford University, 2015.
Coleman, L., K. Maheswaran, and S. Pinder, Narratives in Managers Corporate Finance Decisions, Accounting & Finance, 2010, 50(3), 605-633.
Cucari N., S. Falco, and B. Orlando, Diversity of Board of Directors and Environmental Social Governance: Evidence from Italian Listed Companies, Corporate Social Responsibility and Environmental Management, 2018, 25(2), 250-266.
Fang Zhiyong, Green Credit Innovation Practices of Commercial Banks and Related Policy Recommendations, Financial Supervision and Regulation Research, Vol. 6, 2016, 57-72.
Huang Zhijie, Implementation and Innovation of Corporate Governance and Capital Market Legal System, Tsinghua University Press, 2013, 231-280.
Lu Zhengwei and Fang Qi, Financial Regulation and Green Financial Development: An Overview of Practice and Research, Financial Regulation Research, Vol. 11, 2018, 1-13.
Luo Sheng and Yin Aichao, A study on governance risks of financial institutions based on the systemic theory of corporate governance, Insurance Research, Vol. 12, No. 57, 2008.
Zhang Lin and Lian Yongke, Green Credit, Bank Heterogeneity and Bank Financial Performance, Financial Supervision Research, Vol. 2, 2019, No. 43-61.
Cheung Kong Securities. Emerging investment concepts in China: The rise of ESG [R/OL]. Cheung Kong Securities Research Report, 2018-06-21. https:/V/www.sohu.com/a/237046611_675170.
Jin Heisi. The experience of global ESG investment development and implications for China IV. Modern Management Science, 2018(9).
He Zhiquan. Environmental, social and governance (ESG) investment and disclosure in China. China Capital Finance and Accounting, 2015(34).
Chong Zhengwei, Tang Weiqi. ESG disclosure by listed companies. Assessment and application [R]. Industrial Research, 2017-04-04.
Downloads
Published
Issue
Section
How to Cite
