The City of London Corporation hosted the ESG Leaders Forum (ELF) Kick-off Workshop on 30 November 2020 to announce the upcoming initiative between the UK and China’s investment management sector.

ELF is a practitioner-led initiative to further embed ESG integration into the UK and Chinese investment community and to promote the best practice that can be replicated in both markets. Facilitated by joint leadership between City of London Corporation and Beijing Institute of Financial Services (BIFS), ELF will allow ESG practitioners to participate in targeted workstreams aimed at increasing uptake of ESG practices in UK and China.

ELF seeks to support investors who are not yet able to commit to net zero, but who can still meaningfully minimise their ESG risks and proactively allocate capital to capture returns from the transition. ELF will work closely with regulators and industry practitioners to mainstream action:

1. Value Creation of Active Engagement
2. Scaling ESG Solutions for Asset Owners Across Asset Classes in Public and Private Markets
3. Amplifying Learnings and Best Practices through Capacity Building Roadshow

Ms. Rongrong HUO, Executive Director, Ninety One (UK) and Dr. Hong LIANG, Partner, Hillhouse Capital Management (China) are the co-chairs of ELF. ELF is supported by the UK PACT funding.

In the workshop, the panelists discussed the link between ESG and sustainable investment. The COVID-19 pandemic has impacted the financial system and the global growth outlook. Participants agreed that a sustainable recovery is essential to build back better.

The workshop also explored how asset owners and managers can jointly contribute to the transition to a low-carbon economy, and highlighted that collaboration between investors and policy makers is crucial. The discussion also covered the importance of disclosure standards, measurement of portfolio alignment with net-zero targets, the importance of regulatory engagement in the process, and the need to understand the uniqueness of different markets like the UK and China.

The workstreams for ELF will formally start in 2021 and the activities will be implemented throughout the year.

If you are interested to take part in the workstreams, please feel free to get in touch with City of London Corporation (Asia@cityoflondon.gov.uk)  for more information.

The recording of the workshop can be viewed below: