Sustainable Investment Policy
As a responsible investor, the Silk Road Fund adheres to the philosophy of “openness, inclusiveness and mutual benefit”, and supports the high-quality development of the Belt and Road Cooperation through sustainable investment. Our Sustainable Investment Policy consists of five major parts:
1. Mission and Vision
Silk Road Fund (SRF) is a medium to long-term development and investment fund dedicated to promoting high-quality development of the Belt and Road Initiative (BRI). Adhering to the philosophy of openness, inclusiveness and mutual benefit, we endorse the widely accepted market principles, international practice and professional standards. SRF promotes the building of the Green Silk Road and the Clean Silk Road through sustainable investment, thereby helping to realize the United Nations vision on sustainable development.
2. Commitment and Actions
As a signatory to the Green Investment Principles (GIP) for the Belt and Road, SRF is committed to strengthening our overall capability, expanding investments that are economically, environmentally and socially sustainable, and encouraging our investee companies to fulfill their social responsibility. In so doing, we take reference from the best international green finance practice and sustainable finance standards. The actions we shall take include:
3. Roles and Responsibilities
The Sustainable Investment Committee (SIC) under our Board of Directors is responsible for overseeing the establishment and operation of our sustainable investment management system. The SIC coordinates with the Investment Committee (IC) to push forward the incorporation of sustainability considerations into the investment decision-making process, particularly taking into account the impact of any material ESG factor on an investment.
A cross-functional Sustainability Working Group (SWG) led by the Risk Management Department shall be established under the SIC to coordinate efforts by relevant front, middle and back desk departments, and responsible for the internal core capacity building. The SWG reports regularly to the SIC.
Supervised by the SIC, the SWG members shall collaborate seamlessly to ensure that all relevant staff take on their due investment sustainability responsibilities, and that external experts and advisors are consulted where necessary.
4. Performance and Incentives
SRF will develop a sustainable investment performance assessment methodology that reflects our mission and is aligned with the United Nations Sustainable Development Goals, international sustainable finance standards, green finance taxonomies and best international practices. The methodology is subject to necessary adjustment according to the latest developments relating to international sustainability investment.
SRF will specify its performance indicators, and set up an effective incentive mechanism, in order to guide and encourage our staff to proactively improve their sustainable investment outcomes.
5. Scope and Limitations
SRF’s ability to influence the sustainability performance of the investee companies varies depending on the specific asset class, investment structure and contractual governance rights in question. We will actively engage with the various stakeholders of our investment, especially strategic investors, co-investors and investee companies, and strive to build consensus on concrete actions.
This Policy will be reviewed by the SIC regularly, and is subject to change as needed.
Full text
