Guotai Junan International Holdings Limited announced that the Group has incorporated ESG risk factors into its Newest Credit Risk Policy to control and manage the ESG risks at the business operation level more efficiently.
Latest Fintech Interview : Global Fintech Interview with Anndy Lian, Intergovernmental Blockchain Expert, Partner at Blockchain Technology
The GTJAI’s Newest Credit Risk Policy covers all its subsidiaries and affiliates in all types of businesses including, but not limited to, lending, underwriting of debt securities, derivatives trading, and other financing activities such as investment banking and wealth management business. The policy reflects ESG criteria formally in the client onboarding, due diligence and credit risk management process with reference to global ESG frameworks.
- Require ESG Due Diligence. As specifically required in the policy, all business teams are responsible for the Know-Your-Client (KYC) process by reviewing clients’ financial reports, ESG report, performing background check on shareholders, reviewing internal policies and controls.
- Specify Industry-related Risk. All business teams are required to conduct enhanced due diligence on higher ESG risk customers. If there is significant ESG risk on certain customer or industry, the Company should consider avoiding provide finance accordingly. Specifically, companies’ 85% revenue from Tar sand, Shale Oil & Gas, Arctic Oil & Gas, Liquefied Natural Gas (LNG), and Ultra-Deep-Water (UDW) Oil & Gas will be considered as high risk.
- Identify Other ESG Red Flags. All business teams are required to include ESG rating downgrade in assessing potential clients’ profiles and documentation.
Read More About Fintech Interview: Global Fintech Interview with Manish Bhai, Founder and CEO at UNO Digital Bank
Guotai Junan International (“GTJAI”, Stock Code: 1788.HK) is the market leader and first mover for internationalization of Chinese Securities Company as well as the first Chinese securities broker listed on the Main Board of The Hong Kong Stock Exchange through initial public offering. It has also been included in FTSE4Good Index by London Stock Exchange of the United Kingdom. Based in Hong Kong, GTJAI provides comprehensive, diversified and high-quality integrated financial services. Core business includes brokerage, corporate finance, asset management, loans and financing, financial products, which cover three dimensions including individual finance (wealth management), institutional finance (institutional investor services and corporate finance service) and investment management. GTJAI has been assigned “Baa2” and “BBB+” long term issuer rating from Moody and Standard & Poor respectively. The controlling shareholder, Guotai Junan Securities Company Limited , is the comprehensive financial provider with a long-term, sustainable and overall leading position in the Chinese securities industry.
Browse The Complete Interview About Fintech : Global Fintech Interview with Kevin Doerr, Chief Product Officer at DailyPay
[To share your insights with us, please write to sghosh@martechseries.com]
