Invesco and Tsinghua University Form Research Partnership on China's Double Targets for Carbon Reduction
Beijing, Shanghai, 8 November 2021 – Invesco, a leading independent global asset management firm, today announced a research partnership with Tsinghua University PBC School of Finance to analyse the influence of China's carbon reduction targets on the country’s major industries and corporations.
Under the partnership, quantitative investing professionals from Invesco Great Wall, Invesco’s onshore Chinese funds management joint venture, will work with Tsinghua academic leaders to conduct research on listed companies in China. Their focus will be to examine how businesses in traditionally carbon-intensive sectors such as coal mining, power and steel production are transforming under China's double targets for carbon reduction, including application of systematic carbon measurement methodologies. The research will also analyse and quantify the economic benefits derived from these environmental policies.
Andrew Lo, Senior Managing Director and Head of Asia Pacific at Invesco said: “We have already seen a concrete plan toward the ambitious goal of carbon reduction in China’s 14th Five Year Plan, and we see this research as a meaningful contribution to understanding the impact and benefits of ESG investing in China. This research partnership with Tsinghua University is part of our efforts in helping global investors better understand opportunities in the China market, which will further contribute to China’s ESG development and potentially accelerate carbon reduction efforts.”
To achieve the country’s “double targets” of achieving carbon neutrality by 2060 and peak carbon emissions by 2030, Chinese regulators have announced a set of interim policies including a carbon emissions trading scheme designed to drive down the emissions. The scheme currently covers more than 2,200 power firms and other industries such as the steel and aluminum production sectors are expected to be included in future carbon trading.
Dr. Jiandong Ju, Unigroup Chair Professor of Finance and Head of Research Center for Green Finance Development, at PBC School of Finance Tsinghua University said: “The right policies to institutionalize China’s ESG investment framework are rapidly taking shape. It is conceivable that the double targets for carbon reduction could accelerate the adoption of ESG investing principles. We believe this partnership and the ultimate findings will bring tremendous value to society, in China and across the globe.”
Invesco is committed to adopting and implementing responsible investment principles in a manner consistent with its fiduciary responsibilities and is committed to corporate sustainability efforts through responsible stewardship of the environment and local communities. Invesco manages over US$53bn in ESG assets as of June 30, 2021 and is a signatory to the Net Zero Asset Managers Initiative. In China, Invesco Great Wall is accelerating its capabilities in ESG analysis for the domestic market, leveraging its strength in quantitative and factor investing.
Ken Kang, CEO of Invesco Great Wall, said: “It is one of our visions to accelerate our ESG efforts catering to the Chinese market. By integrating the global best practices at Invesco, our investment teams are developing quantitative and qualitative methods for ESG investments in the China A shares market. We look forward to working with such a renowned institution as Tsinghua University to create and advocate for new ideas around sustainable investing in China.”
About Invesco
Invesco Ltd. is a global independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. Our distinctive investment teams deliver a comprehensive range of active, passive and alternative investment capabilities. With offices in more than 20 countries, Invesco managed $1.5 trillion in assets on behalf of clients worldwide as of September 30, 2021. For more information, visit www.invesco.com.
