In 2006, Goldman Sachs Group formally proposed ESG investment concept. Many investors and asset management companies introduce ESG into the framework of corporate research and investment decision-making; domestic fund companies, such as Southern Asset Management, E-fund and Harvest Fund, which have overseas business, also introduce ESG investment method; international rating agencies did not cover China's A-shares and could not provide ESG information and ratings for fund companies; based on CTI-ESG database, CTI Certification carries out the ESG performance rating of A-share listed companies in China.

◉    Services provided by us

ESG overall rating results

Rating results of E, S, and G items

ESG investment strategy

ESG indexation service

◉    ESG ratng—methodology

1. CTI-ESG rating characteristics

CTI-ESG rating covers 1000+ A-share and H-share listed companies. To standardize the ESG information of listed companies and evaluate the ESG performance quantitatively.

Characteristic I: ESG rating with Chinese characteristics

Both index selection and rating methods consider the characteristics and development stages of Chinese enterprises.

Characteristic II: Integrating international ESG development

Learn from the development of international ESG, integrate with the latest development trend, and guide the promotion and development of ESG of Listed Companies in China

2. Index selection standard

Three principles of index selection: importance, effectiveness and relevance, namely, the importance to the company's operation, the degree and quality of disclosure, and the relevance with the performance of the company's historical stock price

Index selection: combination of quantitative and qualitative, combination of positive and negative, combination of general and forward-looking guidance, and integration of indicators with Chinese characteristics and industry characteristics;

3. Evaluation method

Double evaluation: ESG disclosure evaluation and ESG performance evaluation

Evaluation system: 3 first level indicators, 10 second level indicators, 22 third level indicators and 220+ fourth level indicators

Rating framework: the overall performance evaluation is divided into annual performance evaluation and negative information evaluation. Based on the annual performance evaluation, adjust the overall performance evaluation according to the negative information evaluation results

4. Rating and index

Grading: CTI-EST rating score is 0-10. According to the rating score, it is divided into ten grades: AAA, AA, A, BBB, BB, B, CCC, CC, C and D.

CTI-EST index: according to the rating results, select some samples of listed companies in priority and prepare the CTI-ESG index