CMPort's MSCI ESG Rating Upgraded by Two Notches

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Release time:2023-10-16

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CMPort's MSCI ESG Rating Upgraded by Two Notches, Representing Remarkable Result in ESG Practices



    Recently, MSCI, an authoritative global ESG index institution, announced the latest Environmental, Social, and Governance (ESG) ratings on China Merchants Port Holdings Company Limited (“CMPort”, 00144.HK). The company received a “BB” rating, which represents a two-notch upgrade.  The upgraded rating reflects CMPort's proactive efforts and notable achievements in ESG practices, embodying its ESG philosophy.

 

    In recent years, faced with new global development landscapes, CMPort has elevated ESG initiatives to the company's strategic level. CMPort put forth the overarching goal of "building a world-class eco-friendly and smart comprehensive port service provider," integrating ESG concepts and practices into its daily operations and management.

 

    In terms of corporate governance, CMPort has established an ESG governance framework, built up ESG performance appraisal mechanisms. It has propagated and implemented ESG policies and formulated sustainable development strategies and vision, steadily enhancing sustainability through management practices.

 

    In addition to "corporate governance", ESG also include "environmental and social" aspects, where CMPort has spared no effort. To promote green development, the company has upgraded and transformed Mawan Smart Port, formulated ecological environment protection policies, and actively implemented carbon reduction projects that combine technology and green low-carbon concepts to reduce carbon emissions from traditional operations. In social responsibilities, CMPort has promoted port and shipping talent training practices, improved customer satisfaction survey systems, and carried on public welfare activities like donations and community assistance. Adhering to the principle of "shared consultation, contribution and benefits", it works with internal and external stakeholders to jointly promote social harmony and progress.

 

    CMPort's overseas ESG practices have yielded fruitful results. The company has actively promoted its "overseas development strategy", continuously expanding and optimizing its global port network. While making great strides in overseas port investments, CMPort also attaches great importance to ESG initiatives. Based on different national conditions, cultures and development stages, it always adheres to the "shared consultation, contribution and benefits" principle, actively integrating into local communities where its projects are located. CMPort has achieved abundant ESG accomplishments, earning high praise from local governments and people. For example, in Sri Lanka, CMPort initiated the "Vision Restoration" Project, providing free cataract surgeries for over 500 patients. It also actively promoted the Hope Village construction project, completing the infrastructure of the “Hambantota Hope Village - Kendawala Village project” in the first half of the year and inaugurating it in April. This created many local job opportunities while improving the living environment and standards of villagers, building a happy and harmonious new village.

 

    Moving forward, CMPort will continue to thoroughly implement new development concepts, bringing ESG work to concrete actions while adhering to open-minded sharing and win-win cooperation. It will further explore new ESG practices, join hands with stakeholders, promote sustainable social development, and contribute “China Merchants energy” into economic prosperity and high-quality development across all fronts.


Background Reading:

The MSCI ESG Ratings are currently one of the most widely recognized and regarded ESG rating systems in the market. They are also widely adopted by global portfolio managers as investment benchmarks. The MSCI ESG Ratings aim to measure corporations’ adaptability to long-term financially relevant ESG risks. Corporations receive ratings of different levels based on their ESG risk exposure and risk management capabilities. The higher the ESG rating, the more robust the corporation’s operations and governance practices.