On 24 February 2023, Shanghai WeCarbon Pugu Management Consulting Co., Ltd. (hereinafter "WeCarbon Pugu") was approved to join the Principles for Responsible Investment (The United Nations-supported Principles for Responsible Investment, UN PRI), becoming one of the service providers in China promoting the six Principles for Responsible Investment in investment and finance.
Figure 1: WeCarbon Pugu joins UN PRI
UN PRI is an international organisation that coordinates the development of ESG and responsible investment worldwide. It brings together investors, asset managers and service providers with long-standing commitment to responsible investment that actively apply its six principles, providing a platform for cooperation and exchange among them. It works to integrate environmental, social and governance (ESG) factors more deeply into investment decisions, post-investment management, risk control and business operations, and so to advance global sustainable development.
Figure 2: WeCarbon Pugu becomes a UN PRI signatory service provider (image from the UN PRI website)
There are currently 5,394 UN PRI signatories worldwide, with more than USD 121 trillion in assets under management. With China's sustainability policies, Chinese companies and institutions are paying growing attention to ESG, and UN PRI's influence in China keeps rising. As of 28 February 2023, 129 Chinese institutions had joined UN PRI in three categories: investment institutions, asset managers and service providers. The Chinese investment institutions and asset managers include fund investment arms of the big four state-owned banks and major Chinese mutual funds and private equity funds, which carry widely recognised influence and set an example in responsible investment. There are just 31 Chinese service providers, representing a high standard of service in sustainability, ESG and green finance in China.
Figure 3: Selected UN PRI signatories in China
Joining UN PRI recognises WeCarbon Pugu's professional, forward-looking and international expertise in sustainability and ESG. As an ESG-focused technology company, WeCarbon Pugu provides companies with advisory services on ESG financing, investment and transition strategy. Drawing on experience from China and abroad, it offers professional, forward-looking and practical services that help governments and businesses gain an early-mover advantage in China's ESG transition. Meanwhile, WeCarbon drives innovation through technology: its "WeCarbon Cloud" carbon neutrality management platform provides companies with end-to-end management of carbon data, carbon verification, carbon assets and trading, carbon finance, climate risk and ESG, built on its carbon data trust system (TCED), meeting companies' key needs to automate disclosure, centralise management, maximise value and minimise risk.
Going forward, guided by the six UN PRI principles, WeCarbon Pugu will combine new industry thinking with local practice and work with UN PRI and its more than 5,000 signatories worldwide, bringing together the strengths of all parties and experience from China and abroad. With comprehensive, high-quality and practical services, it will help companies unlock their latent value and resilience, contributing to a green, sustainable investment and finance ecosystem and to global sustainable development.
About the Principles for Responsible Investment (UN PRI) UN PRI is a highly influential responsible investment organisation. Initiated by former UN Secretary-General Kofi Annan and launched at the New York Stock Exchange in 2006, it is an international network of asset owners, asset managers and related service providers from around the world. It provides signatories with systematic, ongoing support in putting ESG investment into practice and promotes the sustainable development of the global financial system.
About the Six Principles for Responsible Investment UN PRI sets comprehensive and detailed requirements for the framework, processes and management mechanisms of responsible investment, summarised in its six Principles for Responsible Investment: (1) incorporate ESG issues into investment analysis and decision-making processes; (2) be active owners and incorporate ESG issues into ownership policies and practices; (3) seek appropriate disclosure on ESG issues by the entities invested in; (4) promote acceptance and implementation of the Principles within the investment industry; (5) work together to enhance effectiveness in implementing the Principles; and (6) report on activities and progress towards implementing the Principles. Building on these principles, the organisation provides more detailed guidance and requirements for investors and service providers of all kinds.