Fosun International’s FTSE Russell ESG Rating Upgraded Significantly
In recent years, as society has attached great importance to sustainable development, global investors have paid more attention to the performance of enterprises in terms of "Environmental, Social and Governance" (ESG). Many investment banks and rating agencies have added ESG standards to the credibility rating of corporates. The ESG performance of listed companies has become one of the important considerations for many investors in assessing whether listed companies are worth investing in.
Many international indexes and rating agencies, such as MSCI, Hang Seng Index Company, FTSE Russell, S&P Dow Jones Indices LLC, etc., have been rating the ESG performance of global listed companies. They also set up a specific ESG index to track the performance of stocks with better ESG performance.
On 19 July 2021, FTSE Russell announced Fosun International’s FTSE Russell ESG Rating has been significantly improved to 2.6 from 1.6 last year.
The FTSE Russell ESG rating, with total score of five, covering governance (anti-corruption, corporate governance, risk management), environment (climate change, environmental supply chain, pollution & resources, water security), and social (customer responsibility, health & safety, human rights and community, labour standards, social supply chain). The industry average score is 2.1, and the average score among Chinese companies is 1.4. Fosun International has achieved above industry average score of 2.6, which is also much higher than the average score among Chinese companies.
The upgrade of FTSE Russell ESG rating is primarily contributed to Fosun International’s emphasis on sustainable development. Fosun International has obtained improvements in various aspects by scoring two additional points or above, among which anti-corruption reached a full score of 5.
FTSE Russell ESG Rating is established by FTSE Russell, a globally well-known indexes and data provider. It aims at measuring company’s performance in environmental, social and governance (ESG). The data is used by investors to set up and evaluate their investment funds and other products.
Chart is referenced from the report published by FTSE, ‘0716 FTSE Company Summary’.