THIS MATERIAL IS A MARKETING COMMUNICATION.
ESG Monthly (August 2022)
This month’s highlights:
China released its plans for carbon-intensive industries to peak emissions by 2030; targeted industries include steel, building materials, petrochemicals, non-ferrous metals, consumer goods, equipment manufacturing and electronics sectors (SCMP, August 2022)
The plan includes:
- Industrial companies with annual revenue above 20 million RMB (USD 2.9 million) to reduce energy consumption by 13.5% by 2025 compared with 2020 levels.
- China’s national emissions trading scheme to expand coverage from currently only regulating the power sectors to also include industrial sectors.
- Steel sector to increase annual recycling capacity to 180 million tonnes of scrap iron and steel by 2025.
Source: European Commission Joint Research Centre, October 2021
Commentary on ESG news and developments:
Globally…
- The United States (US) Senate passed the Inflation Reduction Act (IRA), which includes a historic investment of $369 billion in energy security and climate change that is expected to support the reduction of US emissions by 40% by 2030 compared to 2005 levels (Bloomberg, August 2022).
- The European Union (EU) transposed two workforce directives (one relating to transparent and predictable working conditions and another relating to work-life balance), into national law under the European Pillar of Social Rights (EPSR).
- The United Kingdom (UK)'s Competition and Markets Authority (CMA) investigates fashion retailers ASOS, Boohoo and George at Asda on eco-friendly and sustainability claims made about their fashion products (CMA, August 2022).
In Asian Pacific markets…
- China released the Green Bond Principles which unifies domestic standards to those of international markets; issuers must allocate 100% of the proceeds to green projects based on the Green Bond Endorsed Projects Catalogue, Common Ground Taxonomy or the EU Taxonomy (China Dialogue, August 2022).
- China released its plans for carbon-intensive industries to peak emissions by 2030; targeted industries include steel, building materials, petrochemicals, non-ferrous metals, consumer goods, equipment manufacturing and electronics sectors (SCMP, August 2022).
- Hong Kong's Securities and Futures Commission (SFC) published its Agenda for Green and Sustainable Finance which sets out the regulator’s plans to continue supporting Hong Kong’s role as a regional green finance centre (SFC, August 2022).
- India revised its national carbon reduction targets – updating its Nationally Determined Contributions (NDCs) ahead of COP26 in November – committing to reduce the emissions intensity of its GDP by 45% by 2030 and to achieve 50% cumulative electric power installed capacity from non-fossil fuels by 2030 (Reuters, August 2022).
- Singapore released new guidelines on ESG funds disclosure requirements for fund managers to tackle greenwashing (Reuters, July 2022).
- South Korea introduced a new clean hydrogen rating scheme that determines whether hydrogen can be classified as “low carbon” based on the amount of carbon generated during production, to be implemented in 2024 (Korea Herald, July 2022).
Staying Ahead with Mirae Asset’s Latest Insights
Disclaimer & Information for Investors
No distribution, solicitation or advice: This document is provided for information and illustrative purposes and is intended for your use only. It is not a solicitation, offer or recommendation to buy or sell any security or other financial instrument. The information contained in this document has been provided as a general market commentary only and does not constitute any form of regulated financial advice, legal, tax or other regulated service.
The views and information discussed or referred in this document are as of the date of publication. Certain of the statements contained in this document are statements of future expectations and other forward-looking statements. Views, opinions and estimates may change without notice and are based on a number of assumptions which may or may not eventuate or prove to be accurate. Actual results, performance or events may differ materially from those in such statements. In addition, the opinions expressed may differ from those of other Mirae Asset Global Investments’ investment professionals.
Investment involves risk: Past performance is not indicative of future performance. It cannot be guaranteed that the performance of the Fund will generate a return and there may be circumstances where no return is generated or the amount invested is lost. It may not be suitable for persons unfamiliar with the underlying securities or who are unwilling or unable to bear the risk of loss and ownership of such investment. Before making any investment decision, investors should read the Prospectus for details and the risk factors. Investors should ensure they fully understand the risks associated with the Fund and should also consider their own investment objective and risk tolerance level. Investors are advised to seek independent professional advice before making any investment.
Sources: Information and opinions presented in this document have been obtained or derived from sources which in the opinion of Mirae Asset Global Investments (“MAGI”) are reliable, but we make no representation as to their accuracy or completeness. We accept no liability for a loss arising from the use of this document.
Products, services and information may not be available in your jurisdiction and may be offered by affiliates, subsidiaries and/or distributors of MAGI as stipulated by local laws and regulations. Please consult with your professional adviser for further information on the availability of products and services within your jurisdiction. This document is issued by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Securities and Futures Commission.
Information for EU investors pursuant to Regulation (EU) 2019/1156: This document is a marketing communication and is intended for Professional Investors only. A Prospectus is available for the Mirae Asset Global Discovery Fund (the “Company”) a société d'investissement à capital variable (SICAV) domiciled in Luxembourg structured as an umbrella with a number of sub-funds. Key Investor Information Documents (“KIIDs”) are available for each share class of each of the sub-funds of the Company.
The Company’s Prospectus and the KIIDs can be obtained from www.am.miraeasset.eu/fund-literature . The Prospectus is available in English, French, German, and Danish, while the KIIDs are available in one of the official languages of each of the EU Member States into which each sub-fund has been notified for marketing under the Directive 2009/65/EC (the “UCITS Directive”). Please refer to the Prospectus and the KIID before making any final investment decisions.
A summary of investor rights is available in English from www.am.miraeasset.eu/investor-rights-summary/.
The sub-funds of the Company are currently notified for marketing into a number of EU Member States under the UCITS Directive. FundRock Management Company can terminate such notifications for any share class and/or sub-fund of the Company at any time using the process contained in Article 93a of the UCITS Directive.
Hong Kong: It is intended is for Hong Kong investors. Before making any investment decision to invest in the Fund, Investors should read the Fund’s Prospectus and the information for Hong Kong investors (of applicable) of the Fund for details and the risk factors. The individual and Mirae Asset Global Investments (Hong Kong) Limited may hold the individual securities mentioned. This document is issued by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Securities and Futures Commission.
Singapore: It is not intended for general public distribution. The investment is designed for Institutional investors and/or Accredited Investors as defined under the Securities and Futures Act of Singapore. This document is issued by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Monetary Authority of Singapore. Please consult with your professional adviser for further information on the availability of products and services within your jurisdiction.
Australia: The information contained in this document is provided by Mirae Asset Global Investments (HK) Limited (“MAGIHK”), which is exempted from the requirement to hold an Australian financial services license under the Corporations Act 2001 (Cth) (Corporations Act) pursuant to ASIC Class Order 03/1103 (Class Order) in respect of the financial services it provides to wholesale clients (as defined in the Corporations Act) in Australia. MAGIHK is regulated by the Securities and Futures Commission of Hong Kong under Hong Kong laws, which differ from Australian laws. Pursuant to the Class Order, this document and any information regarding MAGIHK and its products is strictly provided to and intended for Australian wholesale clients only. The contents of this document is prepared by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Australian Investments & Securities Commission.
Swiss investors: This document is intended for Professional Investors only. This is an advertising document. The Swiss Representative is 1741 Fund Solutions AG, Burggraben 16, CH-9000 St. Gallen. The Swiss Paying Agent is Tellco AG, Bahnhofstrasse 4, CH-6431 Schwyz. The Prospectus and the Supplements of the Funds, the KIIDs, the Memorandum and Articles of Association as well as the annual and interim reports of the Company are available free of charge from the Swiss Representative.
UK investors: This document is intended for Professional Investors only. The Company is a Luxembourg registered UCITS, recognised in the UK under section 264 of the Financial Services and Markets Act 2000. Compensation from the UK Financial Services Compensation Scheme will not be available in respect of the Fund. The taxation position affecting UK investors is outlined in the Prospectus. This document has been approved for issue in the United Kingdom by Mirae Asset Global Investments (UK) Ltd, a company incorporated in England & Wales with registered number 06044802, and having its registered office at 4th Floor, 4-6 Royal Exchange Buildings, London EC3V 3NL, United Kingdom. Mirae Asset Global Investments (UK) Ltd. is authorised and regulated by the Financial Conduct Authority with firm reference number 467535.
Copyright 2023. All rights reserved. No part of this document may be reproduced in any form, or referred to in any other publication, without express written permission of Mirae Asset Global Investments (Hong Kong) Limited.