Clearing blue skies across China

The ramping up of Environmental, Social and Governance (ESG) efforts by Chinese companies is making a clear difference. For example, grey smog used to be a common feature in large Chinese cities like Beijing and Chengdu. Phasing out gasoline and diesel, and leading the global push for electric vehicles have resulted in visibly blue skies across China. The social side has also improved but we think more needs to be done in the area of corporate governance. That said, Chinese companies have made progress and are heading in the right direction, especially those more progressive companies and management teams which we focus on as shareholders.

Average annual PM2.5 air pollution levels in Beijing (Micrograms per cubic meter of air)

Source: US Department of State. PM2.5 refers to particles that are 2.5 micrometres or less in diameter, known as fine inhalable particles. The average human hair is about 70 micrometres in diameter.