We developed a risk control list of ESG factors, including environmental, social and corporate governance factors, to screen out some companies with significant ESG risks.
There are 28 questions in the list, for example,
1. Does the target company conform to the company's investment strategy?
2. Does the target company involve environmental requirements?
3. Has the target company obtained the qualification license related to the main business? (such as environmental management system certification, scientific research patents, etc.)
4. Does the target company have a large number of related transactions?
5. Does the target company have anti-corruption and anti-bribery policies?
We do due diligence on each issue to identify thoroughly the ESG risk in the target company.