Sustainable Investing at Harvest

At Harvest, data is at the core of ESG analytics and framework. We emphasize measurable ESG performance and external impact and we believe the concept of sustainable investment can have a far-reaching positive impact on the environment and society, and ultimately deliver long-term sustainable returns to investors. Therefore, we are fully committed to promote:

Our Commitments

SI01

Systematic integration process
Harvest’s ESG integration program combines both top-down and bottom-up approaches to incorporating macro, sector and security-level investment perspectives to form high-quality qualitative and quantitative ESG research insights and quantitative scoring. This program involves proprietary ESG scoring and research, regular ESG risk monitoring and alerts, all accessible through the ESG dashboard integrated in Harvest’s core investment platform. Various communication channels and investment escalation mechanisms have been established to make sure the investment team sufficiently acts upon material ESG issues.

 SI02

Harvest Proprietary ESG framework and scoring

SI03

High-quality ESG data is at the core of ESG integration and sustainable investing at Harvest. To achieve such goals, Harvest has developed its proprietary ESG scores covering the entire China market with monthly update frequency and published them on China's leading financial platform, Wind, and Bloomberg for better transparency.
Harvest’s proprietary ESG assessment is based on massive data collection and processing from thousands of credible local data sources leveraging AI technologies, mapping material ESG issues and metrics through rigorous modeling, and incorporating investment analysts’ qualitative views and firsthand information from their engagement with companies. It is aligned with globally accepted frameworks such as SASB and GRI, but with China specific metrics added and scoring criteria adjusted to reflect local conditions and materiality. Chinese companies are scored based on their ability to manage ESG risks and opportunities material to their long term bottom lines and sustainability. Factor effectiveness is ensured through rigorous testing, and results show that Harvest’s ESG scores are effective in differentiating ESG leaders and laggards in China and enhancing long term risk adjusted return in China.

 SI4

Engagement and collaboration
Our investment teams and ESG team work together to identify priority engagement themes and specific areas that warrant discussion with individual companies. We proactively arrange engagement sessions with our key holdings assessed as ESG laggards or triggered by material negative ESG incidents. We also take a top-down approach, and set out priority ESG engagement topics deemed to be material at the market level and formulate engagement program to address these topics in a medium to long term. Currently, we endeavor to exercise our active ownership regarding the following themes and topics which strongly reflect our engagement priorities:

 SI05

Harvest actively participates in multiple investor groups and collaboration activities, including:
•    Climate Action 100+ , Asian Corporate Governance Association (ACGA)
•    Carbon Disclosure Project (China)
•    Principles for Responsible Investment (PRI)
•    Task Force on Climate-Related Financial Disclosures (TCFD)
•    China Green Finance Committee

Management and Disclosure of Climate-Related Risks

2024 Carbon Footprint Disclosure