Table of Contents
1. Brand concept far-sighted
2. Global brand communication
3. Localized brand practice
In May 2022, the "China ESG Forum 2022" was held in Beijing, and the blue papers "ESG Evaluation Research of Listed Companies", "China ESG Development Report 2021", and "ESG Research Report of Chinese Listed Companies (2021)" were released successively. The industry believes that driven by the impact of the epidemic and the "dual carbon" goal, government authorities, investment institutions, think tanks, research institutions, etc., have promoted the deep integration of ESG concepts and corporate operations in terms of policy formulation, theoretical research, and practical development. Creating new opportunities for the ESG development of domestic listed companies has become a trend of starting a prairie fire.
Brand concept Far-sighted
ESG is an acronym for Environmental, Social, and Governance. Its core concept means that in the process of capital operation and management, enterprises should not only pursue economic benefits, but also consider environmental tolerance, The three dimensions of social responsibility and corporate governance promote the development of new concepts and new standards for assessment and evaluation. The ultimate goal is to promote the development of enterprises to achieve the unity of economic and social benefits, brand value and social responsibility.
The core concept of ESG has gradually evolved and matured along with human commercialization practices. Mercantilism, which arose in the West after the Renaissance, became popular all over the world, and the disorderly expansion of capital aroused competing imitations. In the end, it triggered a series of social and ethical crises such as environmental pollution, energy depletion, and profit-seeking, forcing human beings to begin to reflect on and explore new development concepts and models. Ethical capital operations driven by values appeared as early as the 16th century. In the 1960s, ethical investment evolved into early socially responsible investment by combining concepts such as social responsibility, ethical behavior, and environmental protection while earning income. By the 1990s, the concept of socially responsible investing was further developed and evolved into sustainable responsible investing. On this basis, the ESG development framework and evaluation criteria are gradually taking shape.
The ESG concept was first proposed by the UN Global Compact in 2004. In 2006, Kofi Annan, the seventh Secretary-General of the United Nations, invited a group of investors from the world's leading financial institutions to jointly formulate the Principles for Responsible Investment (Principles for Responsible Investment). Responsible Investment, PRI), established the United Nations Principles for Responsible Investment (UNPRI). And in April of the same year, the PRI principles were released on the New York Stock Exchange, providing a feasible guide for incorporating ESG into investment practice.
Whether it is a conceptual virtual brand or a solid physical brand. There is one and only one root cause of whether a company can grow from a small one, and that is the brand concept. Is it aimed at solving the problems of users or all mankind, or just pursuing the maximization of self-interest. This is not only a watershed for whether a brand can last forever, but also the soul and driving force for the sustainable development of an organization or a country. Today, BYD, which can become the absolute leading brand of new energy vehicles in the world, is precisely because of years of accumulation that the brand concept of "using technological innovation to satisfy people's yearning for a better life" has been deeply rooted in the hearts of the people. From the "Belt and Road", "Community of Shared Future for Mankind", "Shanghai Cooperation Summit", "Chinese-style modernization", "Poverty Alleviation", "Green waters and lush mountains are golden mountains and silver mountains" to the strategies of new energy and new infrastructure, etc. The layout and practical innovation all prove that "the public is eternal, the private is momentary" and the pursuit of great harmony is the eternal dream of mankind. From the
nuclear leaks of Cherlobyl and Fukushima far abroad, the emission gate of Volkswagen, the oil spill in the Gulf of Mexico Incident, Rio Tinto Group blowing up the caves in the protected area; the farce of the domestic nucleic acid testing company’s yin and yang indistinguishable farce and the listing of steamed buns stained with human blood, the longevity biological vaccine incident, “earth pit” sauerkraut, double-standard soy sauce and additives, Swiss A series of environmental and social crises caused by Lucky Coffee's financial fraud, sky-high salaries of listed companies, platform economy that competes with the people for profit, Fubao 996, corporate thunderstorms, etc., all show the lack of corporate moral blood and lack of responsibility. Even Warren Buffett's wise words that "no one can get rich by shorting their own country" have been left behind.
Through ESG development models and evaluation standards, we can regulate the disorderly expansion of capital and guide companies, especially listed companies, to develop healthily. It is the right time and the right time to dare to open up wasteland in the waves of stars and seas.
Global brand communication
Because of the universal value of the ESG development concept, once it was proposed, it was widely recognized by regulatory agencies and industry circles in various countries, and attracted great attention from international multilateral and bilateral organizations.
Whoever initiates and advocates new development models and concepts is very important. Since ancient times, China has had the ancient motto of "never estrange relatives, never seek respect". As the most influential international organization in the world, it is inevitable that ESG proposed by the United Nations will attract the attention of all countries.
Secondly, the ESG development concept and evaluation standards advocated when human development is facing difficulties are in line with the wisdom of the "Book of Changes", the first of the classics, which emphasizes the unity of time, place, and number. Trend and timing are the primary considerations for brand layout and operation, because it determines the life and death of the brand. If the timing is right, pigs can fly on the tuyere. And when an enterprise or organization is in decline, seeking survival rather than development is the top priority. Without the constraints of the status quo, no matter how great and glorious the concept and concept are, it is difficult to spread and implement it. Many domestic companies, especially the traditional manufacturing industry, ignore their own industry characteristics and development stages, lack of prioritization of work, and adopt the operation and management model of Internet or technology companies, just like a Boeing 747 pulling a BMW The X6 runs wildly, and it is only a matter of time before the car crashes and dies.
Since then, under the leadership and promotion of UNPRI, ESG has developed rapidly around the world in terms of ESG practice and ESG investment. ESG investment is to incorporate ESG-related factors into investment research practice. Based on traditional financial analysis, it examines the medium and long-term development potential of enterprises through the three dimensions of E, S, and G. In 2021, the global assets related to ESG investment will exceed US$121 trillion, an increase of more than 17% from US$103.4 trillion in 2020. As of June 30, 2022, a total of 5,021 institutions have joined the PRI, including 3,811 asset managers, 694 asset owners, and 516 service providers.
According to GSIA statistics, from 2018 to 2020, the largest ESG investment assets are in the United States and Europe, accounting for more than 80% of global sustainable investment assets. Asset growth was fastest in Canada, up 48%. Followed by the United States, an increase of 42%. Japan ranked third, with an increase of 34%, and the data in Europe was a decrease of 13%. As the subject of ESG investment practice, investment institutions pay more attention to social and corporate governance topics such as war risk, climate change and carbon emissions, labor fairness and treatment, effectiveness of the board of directors, company listing policy, and equity design.
ESG has formed a relatively complete theoretical and practical system from conception to evaluation standard refinement and innovative application, which cannot be separated from the organizational promotion of UNPRI. From birth to widespread application of any brand, it is inseparable from the continuous promotion of a powerful individual or organization, such as Jobs and Apple, Wang Chuanfu and BYD, DJI and Wang Tao, Huawei and Ren Zhengfei, Lei Jun and Xiaomi, etc. Their strategic vision and attitude account for at least 70% of the factors that determine whether a brand can achieve stability and long-term success. Just like Ma Yun’s famous saying, a third-rate idea with a first-rate executive team can produce second-rate execution results, and a first-rate idea with a second-rate executive team can only produce third-rate execution results. Similar to the same outlet track, in the same policy industry supporting area, the brands that started at the same time point, some fell to the ground, and some soared to the sky.