With MSCI disclosing the results of ESG rating of securities companies in 2022, the overall performance of ESG of domestic brokers surfaced.
Compared with the previous year, many brokers' environmental, social and governance practices have gained further international recognition. According to the statistics of China Reporter, the A-level lineup has been expanded, and four domestic securities firms have been awarded A-level, which is the highest rating obtained by China securities companies at present, among which Haitong Securities and CICC have been upgraded to A-level for the first time.
In addition, the MSCIESG ratings of five domestic brokers, including CITIC Securities and First Venture, have all improved.
However, the score of ESG in domestic securities industry is at a backward level. For example, in Privacy and Data Security, as many as 1 1 brokers were not recognized by MSCI rating, and only 1 brokers scored higher than the average level of their peers.
Some insiders pointed out that the information disclosure of ESG by domestic brokers needs to be optimized. For example, at present, the attention paid to carbon emissions and climate issues is still lower than overseas, and the disclosure of negative events is insufficient and the predictability is poor.
Seven ESG ratings were upgraded.
MSCI official website shows that up to now, 53 investment banks and brokerage firms around the world have been publicly rated by MSCIESG. ESG rating results are divided into "leading level" AAA and AA, "average level" A, BBB and BB, and "backward level" B and CCC from high to low.
MSCI mainly evaluates the performance of six substantive issues, including corporate governance, corporate behavior, responsible investment, privacy and data security, human capital development and the environmental impact of financial activities.
Among them, "enterprise behavior" evaluates the supervision and management of enterprises on business ethics issues; "Responsible investment" evaluates the integration of environmental, social and governance factors when a company manages its own assets or manages assets on behalf of others; "The Impact of Financial Activities on the Environment" evaluates the environmental risks of underwriting activities and the company's ability to seize green financial opportunities.
According to the statistics of China, the annual ESG ratings of 28 China securities companies were updated in 2022, of which 265,438+0 was updated in the fourth quarter. Specifically, the team of A-level brokers has expanded, and * * * 4 brokers have been rated as A-level ESG, while Haitong Securities and CICC have been rated as A for the first time; Huatai Securities and orient securities both maintained A-level.
The results of MSCIESG rating show that Haitong Securities has reached the leading level in the fields of "human capital development" and "corporate governance", which reflects the company's perfect talent management system and scientific and effective supervision and management system. On the other hand, CICC scored higher than the average level of peers on the two topics of "enterprise behavior" and "human capital development".
In addition to Haitong Securities and CICC, the international ratings of Morgan Stanley Capital of five other domestic securities companies have also been upgraded. Among them, CITIC Securities and First Venture were upgraded from BB level of 202 1 to BBB level.
According to the MSCI rating results, CITIC Securities is ahead of its peers in the issue of "human capital development". CITIC Securities said that the company has continuously strengthened the talent training system, optimized the quality structure of personnel and created an open development platform for employees. The first venture is higher than the average level of peers in such issues as responsible investment, privacy and data security, and environmental impact of financial activities.
In addition, Guoyuan Securities rose two levels to BB level. Soochow securities and Shen Wan Hongyuan were both upgraded from CCC to Grade B last year.
Some brokers' MSCIESG ratings declined. According to the statistics of China, the MSCIESG ratings of eight domestic securities firms have been downgraded. Among them, Zheshang Securities dropped two levels in a row, from BB level in the previous year to CCC level. Guosen Securities also dropped from Class B to Class CCC. Galaxy Securities was downgraded from BBB to BB. Changjiang securities, Western Securities, Huaxi Securities, Guolian Securities and Everbright Securities were all downgraded from BB to B.
The performance of the three major issues of many brokers lags behind the level of their peers.
The above ratings reflect that MSCIESG ratings of domestic brokers are generally at a low level.
From the perspective of * * *, according to the statistics of China reporters, most brokers lag behind their peers in three topics, namely 1 1, including large domestic brokers.
In terms of "privacy and data security", only 1 domestic brokers scored ahead of the industry level, that is, the first venture. Taking "responsible investment" as an example, only three domestic securities companies scored higher than the average level of their peers, namely Huatai Securities, First Venture and Guoyuan Securities.
Previously, industry insiders said in an interview with brokerage China that there are many reasons for the low rating of MSCIESG, such as the company's insufficient attention to ESG rating; ESG information disclosure is not sufficient, especially for responsible investment and financial impact on the environment, and only a few peers have fully disclosed relevant practices. So the rating score may be lower than the actual management level of the enterprise.
Citic Securities Research Institute made a comparative analysis of ESG information disclosure of three domestic securities firms with reference to international disclosure cases and domestic disclosure standards, and concluded that ESG information disclosure of domestic securities industry mainly embodies five characteristics:
1. The standardization of information disclosure of domestic head securities companies is generally high, which can basically meet the general disclosure requirements, but there is a general lack of third-party audit or appraisal.
2. The domestic securities industry still pays less attention to carbon emissions and climate issues than overseas.
3. For the social responsibility of the securities industry, domestic enterprises mostly combine it with the national development strategy to serve the real economy and reflect it in their actual business.
4. The forward-looking of domestic disclosure is relatively poor, and the disclosure focuses more on the description of history and present situation, and lacks the discussion of ESG management objectives. For example, UBS has set clear mid-term target values for a number of ESG indicators.
5. Lack of disclosure of key negative events.
Exploring the Construction of ESG Evaluation System in Local Securities Industry
Some insiders pointed out that on the one hand, the domestic securities industry should actively integrate into the international ESG rating system, on the other hand, it should integrate resources and make joint efforts to explore an ESG rating system suitable for China.
Recently, CITIC Securities Research Institute sorted out the ESG substantive issues and indicators unique to the financial industry by grasping the national conditions of China and referring to international standards. It is believed that three concepts should be followed: first, the local concept, ESG evaluation system should meet the needs of modern ESG in China, learn from international advanced experience, and not copy western standards; The second is the overall concept, which grasps the performance of ESG as a whole, does not stick to the performance of individual projects, and does not advocate enterprises to list and pile up positive business in ESG reports; Third, the concept of industry, focusing on ESG issues with industry characteristics, and deeply embedding various indicators with business to enhance the substantive content.
In the opinion of the analyst team, in addition to the "E-S-G" formula, the substantive problems of ESG in the financial industry should highlight two characteristics. First, respond to national strategic needs. The ESG evaluation system in the financial industry pays close attention to key issues such as green, inclusive, financial technology and financial risks, highlights the guiding significance of national strategy, and constructs a localized policy-oriented ESG practice guide. Second, deeply integrate your own business. The ESG evaluation system of financial industry must go deep into the business essence of financial enterprises and promote them to implement ESG ideas in their business.