Since its establishment, China Investment Corporation (CIC) has consistently positioned itself as a responsible investor. Based on peers’ approaches and its own practice, CIC has formulated the following Sustainable Investment Policy.

Philosophy

Sustainable investing takes into account environmental, social, & governance (ESG) factors to deliver both investment returns and sustainability performance.

Guided by the new development philosophy, CIC’s commitment to sustainable investment will contribute to the long-term development of the global economy, as well as to the prevention and mitigation of systemic risks.

Principles

As a responsible sovereign wealth fund, CIC has adopted the following principles in its investment process:

• Integrating ESG factors: to utilize sustainable investment considerations throughout the lifecycle of investments;
• Investing sustainably: to identify suitable ESG metrics based on international best practices, as well as developments in both China and recipient countries/regions;
• Promoting employee engagement: to raise employees’ awareness and understanding of ESG factors.

Implementation

To seek common prosperity and enhance value from the global perspective, CIC will implement sustainable investing through the following levers:

• Explore thematic investment opportunities. In the public market, we launched a thematic equity mandate, and invested in ESG indices and active managers. In the private market, we set the future direction for sustainable investment, and will continue to explore related opportunities with a focus on climate change.
• Incorporate ESG factors into investment process. We weave ESG factors into investment activities, from project screening and due diligence, through evaluation and contracting, and on to post-investment portfolio management and deal exit.
• Dynamically optimize the negative list. We review and update the negative list periodically as appropriate, guided by bottom-line thinking.
• Collaborate with various stakeholders. We communicate with peers and relevant organizations to promote sustainable investment in China, and leverage our strengths as a sovereign wealth fund to mobilize mainstream finance to support the transition towards a sustainable global economy.

For several years now, CIC has been developing its own distinctive, high-standard model for sustainable investment. To ensure thorough analysis at every stage, we’re integrating climate change considerations across our entire investment lifecycle — from asset allocation and risk management through project screening, due diligence, and decision-making, to post-investment management and project exits.

In terms of thesis selection, we stay closely attuned to sustainable themes while strategically targeting high-potential niche sectors. For externally managed mandates, we implemented customized ESG assessment frameworks across asset classes. To enhance our carbon management capabilities, we initiated a carbon data audit of underlying assets, launched carbon intensity analysis for public market portfolios, and evaluated carbon measurement feasibility for private market holdings. These efforts form the foundation for our portfolio-wide decarbonization roadmap.

In public markets, we increased allocations to sustainable equity strategies, optimized our portfolio structure, and re-upped with sustainability-focused managers. We also updated our proprietary ESG model, completed research on carbon futures, and established positions in our proprietary global allocation portfolio.

In private markets, we’ve also deepened our focus on sustainable opportunities. We have invested in green impact funds, climate change-focused funds, and forestry carbon sink projects. We’ve further honed our sustainable energy strategy, guiding investment teams to increase targeted allocations accordingly.