Haitong Bank ("Bank") recognizes that the portfolio management activities must be pursued in a sustainable manner, in accordance with the Environmental, Social, and Governance (ESG) criteria, which is characterized by the consideration of environmental, social and governance factors, alongside financial factors, in the investment decision-making process.
To that end, and as provided on the Haitong Bank Code of Conduct, the Bank adopts internal policies in order to direct its activity and towards a more sustainable strategy.
The Asset Management department integrates sustainability risks as part of their investment decision making and risk monitoring to the extent that they represent potential or actual material risks and/or opportunities to maximize the long-term risk-adjusted returns, in accordance with criteria defined in its sustainability policy and investment policies. The adverse sustainability impacts may be numerous and vary depending on the specific risk, region and asset class.
In addition, the Bank endeavours to ensure the effective and sustainable engagement of its shareholders and stakeholders. The Bank's Engagement Regulation lays down the general principles on how the shareholders’/stakeholders engagement is integrated in the Bank's investment strategies, as well the various engagement activities that the Bank carries out on behalf of its clients.
Finally, the Bank is currently focused on aligning its business vision and strategies, in accordance with the Paris Agreement goals, going on a pathway towards a more sustainable, low-carbon, and resilient development trajectory.