For the second year in a row, China Asset Management Company (ChinaAMC) has won the environmental, social and governance (ESG) investment initiative of the year award.

Initiatives developed by ChinaAMC include its in-house automated proxy voting system based on its voting principles, which began operating last year. It believes this streamlined process has enabled it to become more active in promoting ESG best practices among Chinese listed companies.

ChinaAMC has developed a six-step ESG integration process based on the Principles for Responsible Investment's (PRI) suggestions for ESG practices. These steps are; setting sustainable investment objectives, fundamental ESG analysis, ESG portfolio management, ESG risk management, active engagement with listed companies, and regular reporting.

"We believe that ESG is not simply a standalone theme or a tag of the products. Rather, it is an underlying set of value and investment philosophy," said Li Yimei, CEO of ChinaAMC. "To excel in ESG investing, a company has to identify with the value from within, and embed it in corporate governance, investment process, and risk management."

The firm's ESG team also developed an in-house ESG analytical framework, which it believes is more suitable for Chinese listed companies than the existing external resources. The sector-specific model considers China's different development status compared with developed markets, such as with regard to localised indicators in the healthcare industry. The model enables portfolio managers to differentiate Chinese companies by their ESG performance.

"ChinaAMC is demonstrating leadership across ESG within the Chinese market in several ways and acting to raise the bar for ESG practice," commented on Environmental Finance Awards judge. "Developing a robust ESG integration process and firm-level ESG Committee are important steps forward."

ChinaAMC was the first Chinese financial institution to commit to the Climate Action 100+ (CA100+) initiative, the Taskforce for Climate-related Financial Disclosure (TCFD), and the Farm Animal Investment Risk and Return (FAIRR) initiative.