ERA - China A-share Environmental Risk Assessment
ERA-China A-share Environmental Risk Assessment—— Quantitative analysis on financially material environmental risk with objective geographical and industrial data.
Sustainable investment has experienced remarkable growth in the last decade. As the proportion of China A-Shares in key international emerging market benchmarks continues to multiply, so does the need for the accuracy of ESG data on China A-Shares. Most of the prevailing ESG evaluation methods underlying ESG data in the market show limited compatibility with Chinese firms as Chinese local factors are not sufficiently considered.A set of ESG data products are now being developed for Chinese listed companies, including the Environmental Risk Assessment("ERA"), the Social Risk Assessment("SRA"), and the Governance Risk Assessment("GRA"), which reflects the three aspects of ESG.
| ERA | SRA | GRA |
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Features |
Local methodology used is aligned with international standard.
Raw data comes from credible sources, including official sources, public sources, as well as authoritative databases, and is integrated with corporates’ reports.
The final ESG score presents a higher level of granularity than most mainstream ESG ratings based on letter grading system,enabling a better application of ESG data into financial products. | ||
Methodology |
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Application | Assess Environmental Risks The ERA scores can be used as a measurement of exposure to the environmental risk of a certain company. Enhance Stock Selection ERA can be factored into the valuation model where appropriate and enhance stock selection as a result | ||
Example of ERA Back Testing | ERA Industrial Leader Index Outperformed the CSI 300 Index (Period:2019/06/30 - 2019/09/27)
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