THIS MATERIAL IS A MARKETING COMMUNICATION.
Introduction of Environmental, Social, and Governance
I am Holly So, ESG Specialist at Mirae Asset. Prior to joining Mirae Asset I worked at a professional services firm in the Climate & Sustainability team where I provided advisory services to listed companies and financial institutions alike on their ESG strategies as well as ESG reporting. Some key projects include formulating strategies in line with the United Nations Sustainable Development Goals (SDGs), carbon footprinting, as well as conducting climate risks analysis and disclosure.
At Mirae Asset, my main responsibility as ESG Specialist is to drive the integration of ESG factors in our investment process. This includes looking after how ESG analysis is conducted as part of fundamental analysis to inform stocks recommendation, as well as working with analysts to actively engage with investee companies on their ESG activities.
Against that backdrop, I’d like to take us through the basics of what is ESG, why it’s important and what investors are doing around ESG.
ESG stands for Environmental, Social and Governance. Considering ESG, alongside financial factors, in investment decision-making means to consider the impact a company has on the environment and the society as well as how the environment and the society is impacting the company. Environmental factors include greenhouse gas emissions, air pollution, toxic waste, as well as risks and opportunities that arise from climate change. Social factors include employee relations and diversity, occupational health and safety, and labour conditions in the supply chain. Lastly governance factors include board effectiveness and board diversity, executive pay, and business ethics such as anti-bribery and anti-corruption.
Why is ESG important? A typical answer to this is twofold – to capture ESG opportunities and to manage ESG risks. To us, it is more than that. We look beyond financial returns and use ESG factors to monitor the sustainable impacts of our investments. ESG is important because it helps us understand how we can allocate capital responsibly and towards sustainable outcomes.
When it comes to ESG investing, investors adopt a range of ESG strategies. ESG integration and positive screening are now more popular than negative screening or otherwise known as exclusions. There is also increasingly more adoption of active ownership and thematic investing in recent years.
Thank you for taking the time to watch this video. Please feel free to look through the ESG section of our website or reach out to me if you have any questions or comments on Mirae Asset’s ESG activities. In our next video, I will speak with our Chief Investment Officer Mr Rahul Chadha on Mirae Asset’s commitments to ESG.
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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.
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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.
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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.
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